COMPTROLLER'S SEAL STATE OF CONNECTICUT
STATE OF CONNECTICUT
NANCY WYMAN
COMPTROLLER
OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MARK OJAKIAN
DEPUTY COMPTROLLER

MEMORANDUM NO. 96-26

May 15, 1996

TO THE HEADS OF ALL STATE AGENCIES

Attention:Chief Fiscal Officers or Business Managers
Subject:Statewide Cost Allocation Plans for the Fiscal Years 1995-96

Attached is the approved 1995-96 Statewide Cost Allocation Plan, dated April 18, 1996.

Section I: Costs Distributed through State/Local-Wide Cost Allocation

This section contains the fixed approved central service costs by grantee agencies as listed in Exhibit A. The costs are to be incorporated into agency indirect cost proposals prepared using the appropriate fiscal year costs and other cost statements based upon the same fiscal year costs.

All state agencies receiving Federal or any other grants, or private funds, etc., must compute an indirect cost rate for each fiscal year of their Federal or other programs. The proposal is to be submitted for approval to the agency's cognizant Federal department or agency within six months after the close of each fiscal year. Generally, Federal cognizance of a particular state agency is assigned to that Federal department with the largest dollar involvement. This rate shall enable the state to recover both agency and statewide indirect costs as permitted by Federal regulations.

The central service costs are distributed to various "superagencies" and an "all others" category. REQUESTS FOR A BREAKDOWN OF COSTS ALLOCABLE TO A PARTICULAR AGENCY CONTAINED WITHIN THOSE LARGER ORGANIZATIONAL STRUCTURES SHOULD BE ADDRESSED TO:

Office of the State Comptroller
Budget and Fiscal Analysis Division
55 Elm Street
Hartford, Connecticut 06106-1775

Section II: Costs Distributed through Billing Mechanisms

The categories listed herein are approved to have their costs billed to the programs directly as the services or goods provided for herein are used by the programs.

The approved 1995-96 fringe benefit recovery rates for covered payroll are listed on Exhibit B. Covered payroll is all personal services for positions paid from Federal grants, Grants other than Federal, and other than General Fund accounts.

These rates are strictly defined by the particular character and object code to which the personal services expenditure is charged. The multiple rates should eliminate the need for any variances to compensate for employees who receive less than the full fringe benefit package. Only those programs that limit the amount of fringe benefit cost recovery by statute or regulation, or originate from budgeted General Fund appropriations, will be granted a variance. No variances can be granted for the sole reason that a State agency failed to provide for the inclusion of fringe benefits in their grant budget requests. Requests for variances to the fringe benefit rate must be submitted in writing by each agency to the Accounting Systems Division in accordance with procedures set forth in the Indirect Cost and Fringe Benefit Recovery Procedures Manual.

For information purposes, listed below are the breakdowns of the statewide fringe benefit rates by fringe benefit component.

The following rates were published under Memorandum No. 95-44 for the 1995-96 fiscal year.

Rates have been established for employees covered by the Hazardous Duty Retirement Plan and the Judges/Compensation Commissioners Retirement Plan. Continue to use existing expenditure object coding for payroll purposes.

A variance is now required when paying employees covered by the Hazardous Duty Retirement Plan or the Judges/Compensation Commissioner Retirement Plan with Federal or any fund other than the General Fund.

ComponentRate
SERS Contributions 21.51%
SERS Administration0.48%
Alternate Retirement Plan8.68%
Teachers Retirement Plan17.12%
Hazardous Duty16.25%
Judges/Compensation Commissioners 28.60%
Unemployment Compensation0.21%
Group Life Insurance0.15%
Social Security7.64%
Medical Insurance10.02%

If there are any questions, please call our Budget and Fiscal Analysis Division at 566-8384.

NANCY WYMAN
STATE COMPTROLLER

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Exhibit A


STATE OF CONNECTICUT
1995-96 CONSOLIDATED STATEWIDE COST ALLOCATION PLAN
SUMMARY OF COSTS WITH BUDGET FACTOR APPLIED RECOVERED ON GRANTS
NEGOTIATED OR RENEWED DURING FISCAL YEAR 1995-96

1995-1996
SUMMARY TOTALS
BY SUPER AGENCIES

AUDITORS
OF PUBLIC
ACCOUNTS
OFFICE OF
THE STATE
TREASURER
OFFICE OF
THE STATE
COMPTROLLER
AGRICULTURE(55,505)3,97631,556
BUSINESS REGULATIONS(47,315)23,250189,973
CHILDREN & FAMILIES(84,756)103,246759,519
CONSUMER PROTECTION(45,679)12,01465,508
CORRECTIONS(207,059)267,3361,314,687
ECONOMIC DEVELOPMENT(1,549) 10,099 88,040
STATE BOARD OF EDUC.(176,496)223,846990,859
ENVIRONMENTAL PROT.(4,665)65,747342,672
PUB HEALTH & ADD. SRV(216,583)38,885286,098
HIGHER EDUCATION(531,829)835,375 4,226,884
HOUSING150,102 11,246 71,018
SOCIAL SERVICES292,49895,704526,054
JUDICIAL(392,084)382,8071,389,687
LABOR257,168117,175 573,502
MENTAL HEALTH(128,035)141,952 785,129
MENTAL RETARDATION(96,448) 232,4161,178,415
MOTOR VEHICLES(15,528)21,932172,990
PUBLIC SAFETY(180,147) 109,462494,770
REVENUE SERVICES8,06124,825(63,331)
TRANSPORTATION(31,161) 40,345 330,094
ALL OTHERS(96,232)172,544637,567
TOTALS(1,603,242)2,934,18514,391,693


OPM
MANAGEMENT
DAS
BUREAU OF
PERSONNEL
DAS-BUREAU
OF COLLECT.
SERVICES
AGRICULTURE12,64319,3880
BUSINESS REGULATIONS240,011199,925 0
CHILDREN & FAMILIES105,480 1,094,517773,288
CONSUMER PROTECTION(4,880) 81,9270
CORRECTIONS(67,463) 3,418,4420
ECONOMIC DEVELOPMENT26,52967,7390
STATE BOARD OF EDUC.16,392833,144620,757
ENVIRONMENTAL PROT.(43,331)469,0770
PUB HEALTH & ADD. SRV(365,334)574,852(703,030)
HIGHER EDUCATION(709,881)(3,018,676) 0
HOUSING(27,877) 67,8360
SOCIAL SERVICES6,273946,148494,634
JUDICIAL(5,450)(163,602) 0
LABOR105,784562,0280
MENTAL HEALTH(174,639)2,301,814641,288
MENTAL RETARDATION(236,495)2,833,469944,061
MOTOR VEHICLES(30,788)353,1720
PUBLIC SAFETY243,379946,6980
REVENUE SERVICES12,630324,8490
TRANSPORTATION(280,035)1,888,1840
ALL OTHERS135,444754,8300
TOTALS(1,041,608)14,555,7622,770,997

DAS
BUREAU OF
BUSINESS
SERVICES
DAS
BUREAU OF
PUBLIC
WORKS
DATA
PROCESSING
INTERNAL
SERVICE FUND
AGRICULTURE16,475 218,76229
BUSINESS REGULATIONS70,303(451,857)152
CHILDREN & FAMILIES54,41016,9651,559
CONSUMER PROTECTION33,433843,631153
CORRECTIONS275,5122,140,3801,860
ECONOMIC DEVELOPMENT61,303(30,280)48
STATE BOARD OF EDUC.115,0361,425,4721,393
ENVIRONMENTAL PROT.120,902 1,684,872302
PUB HEALTH & ADD. SRV 77,4981,666,102886
HIGHER EDUCATION249,50832,423112
HOUSING17,600213,42930
SOCIAL SERVICES13,6154,412,28713,814
JUDICIAL147,559616,6251,321
LABOR(818)67,922130
MENTAL HEALTH31,534358,1271,581
MENTAL RETARDATION529,166286,3698
MOTOR VEHICLES189,333(763,771) 890
PUBLIC SAFETY52,298927,5831,113
REVENUE SERVICES77,1402,892,3354,109
TRANSPORTATION658,439 (41,473)114
ALL OTHERS92,4681,989,676560
TOTALS2,882,71418,505,58030,165


PURCHASING
INTERNAL
SERVICE FUND

OFFICE OF
THE ATTORNEY
GENERAL
PAYMENTS
TO TOWNS
IN LIEU
OF TAXES
AGRICULTURE1,93134,347139,808
BUSINESS REGULATIONS3,092326,0572,942
CHILDREN & FAMILIES(22,351) 1,119,259 125,971
CONSUMER PROTECTION(1,735) 737,74212,359
CORRECTIONS294,580500,5977,184,597
ECONOMIC DEVELOPMENT(2,064) 48,0970
STATE BOARD OF EDUC.46,338224,5481,409,234
ENVIRONMENTAL PROT.33,460597,796(2,363,999)
PUB HEALTH & ADD. SRV61,683386,639(30,632)
HIGHER EDUCATION(7,295)271,9076,248,574
HOUSING7,61429,49810,400
SOCIAL SERVICES(14,176)2,027,832313
JUDICIAL (4,331)434,5501,290,457
LABOR(12,325)419,707(10,696)
MENTAL HEALTH546,634237,4621,239,456
MENTAL RETARDATION(34,420)91,577516,702
MOTOR VEHICLES(21,462)64,35928,700
PUBLIC SAFETY21,055227,1101,502,997
REVENUE SERVICES(13,039)710,11616,721
TRANSPORTATION(52,341)(289,414)120,933
ALL OTHERS126,158317,27718,023
TOTALS957,0068,517,06317,462,859

INSURANCE
PURCHASING
BOARD
INDUSTRIES
INTERNAL
SERVICE FUND
TUITION
RE-
IMBURSEMENT
AGRICULTURE642(40)11,650
BUSINESS REGULATIONS5,360 (2,899)31,420
CHILDREN & FAMILIES48,729 (10,502)212,292
CONSUMER PROTECTION52(1,445)2,778
CORRECTIONS392,158(447,811)112,399
ECONOMIC DEVELOPMENT13,724(15,072)3,866
STATE BOARD OF EDUC.538,514(4,947) 107,662
ENVIRONMENTAL PROT.(105,514)(1,916)73,442
PUB HEALTH & ADD. SRV28,225(6,172)70,989
HIGHER EDUCATION2,121,025(22,858)223,738
HOUSING(1,068)(11)23,961
SOCIAL SERVICES9,221(5450)112,024
JUDICIAL310,405(915)14,694
LABOR36,606(2,459)36,550
MENTAL HEALTH316,710(6,822)195,329
MENTAL RETARDATION127,132(1,012)161,716
MOTOR VEHICLES37,790(276,597) 18,209
PUBLIC SAFETY440,972(3,318) 104,303
REVENUE SERVICES4,724(637) 39,710
TRANSPORTATION264,069(17,731) 120,086
ALL OTHERS536,539(4,344) 69,305
TOTALS5,126,014(832,959)1,746,125

TOTAL
AGRICULTURE435,663
BUSINESS REGULATIONS590,414
CHILDREN & FAMILIES4,297,626
CONSUMER PROTECTION1,735,859
CORRECTIONS15,180,217
ECONOMIC DEVELOPMENT270,480
STATE BOARD OF EDUC.6,371,751
ENVIRONMENTAL PROT.868,848
PUB HEALTH & ADD. SRV1,870,108
HIGHER EDUCATION9,919,006
HOUSING573,777
SOCIAL SERVICES8,930,789
JUDICIAL4,021,723
LABOR2,150,273
MENTAL HEALTH6,487,521
MENTAL RETARDATION6,532,656
MOTOR VEHICLES(220,772)
PUBLIC SAFETY4,888,275
REVENUE SERVICES4,038,215
TRANSPORTATION2,710,110
ALL OTHERS4,749,815
TOTALS 86,402,353

*******************************************************************

Exhibit B

1995-96 FRINGE BENEFITS

The following rates were published under Memorandum NO. 95-44 for the 1995-96 fiscal year.

Expenditure
Object

Description
Fringe Benefit
Rate

01-010
and all other codes
not listed below
Full Time40.01%
01-020Temporary 29.84%
01-030 Contractual 7.85%
01-040Student Labor0.00%
01-050Fees0.00%
01-090
Accumulated Sick Leave at Normal
Retirement
7.64%
01-130Patient or Inmate Workers0.00%
01-150Graduate Assistants - UCONN10.02%
01-180Overtime - Temporary Employee29.84%
01-220 Accumulated Sick Leave at Death
or Disability
0.00%
01-240
Allowances/Reportable Payments
Alternate Retirement Plan
Without Social Security
19.06%
01-250
Allowances/Reportable Payments
Alternate Retirement Plan
With Social Security
26.70%
01-260
Allowances/Reportable Payments
Teachers Retirement Without
Social Security
27.50%
01-270
Allowances/Reportable Payments
Teachers Retirement With
Social Security
27.50%
01-310 thru 01-380
Teachers Retirement System
Without Medicare Social Security
27.50%
01-390
Teachers Retirement Plan -
Accumulated Sick Leave at Retirement
0.00%
01-410 thru 01-480
Teachers Retirement Plan With
Medicare Social Security
27.50%
01-490
Teachers Retirement Plan -
Accumulated Sick Leave at Retirement
0.00%
01-510 thru 01-580
Alternate Retirement Plan Without
Social Security
19.06%
01-590
Alternate Retirement Plan -
Accumulated Sick Leave at Retirement
0.00%
01-610 thru 01-680
Alternate Retirement Plan With
Social Security
26.70%
01-690
Alternate Retirement Plan -
Accumulated Sick Leave at Retirement
7.64%
01-710 thru 01-780
Alternate Retirement Plan With
Medicare Social Security
19.06%
01-790
Alternate Retirement Plan -
Accumulated Sick Leave at Retirement
0.00%
01-800 thru 01-850Lecturers (CSU) 7.85%
01-860Federal College Work-Study (CSU)0.00%
01-870Fed. College Work-Study Match(CSU)0.00%
01-880Summer Workers (CSU)29.84%
01-890Lecturers (CSU)7.85%
01-900Student/Graduate Interns (CSU)0.00%
01-920Interest Penalty - Payroll Awards0.00%
01-930
Durational Employees-No Benefits
(UCONN)
29.84%
01-950Buy Back Option0.00%
01-960Foreign Nationals with F-1 or
J-1 Visa
10.02%
01-970Graduate Assistants (CSU) 0.00%
Hazardous Duty With
Social Security
34.27%
Hazardous Duty With No
Social Security
26.63%
Judges & Compensation
Commissioners
46.62%

*******************************************************************

COST ALLOCATION AGREEMENT
STATE AND LOCAL GOVERNMENTS

STATE/LOCALITY:
State of Connecticut
Office of the Comptroller
55 Elm Street
Hartford, Connecticut 06106
>DATE: APRIL 18, 1996

FILING REF: the preceding
Agreement was dated 4/10/95


SECTION I: ALLOCATED COSTS

The central service costs listed in Exhibit A, attached, are approved on a Fixed basis and may be included as part of the costs of the State/local departments and agencies indicated during the fiscal year ended 6/30/96 for further allocation to Federal grants, contracts and other agreement performed at those departments and agencies.


SECTION II: BILLED COSTS

In addition to Section I, which provides for services furnished but not billed, the services listed below are furnished and billed to State/local department and agencies.

  1. Publications
  2. Fringe Benefits (See Addendum)
  3. Workers' Compensation
  4. Telephone
  5. DAS/ISF - Central Print Shop
  6. DAS/ISF - Central Warehouse
  7. DAS/ISF Central Laundry
  8. DAS/ISF - Fleet Operations
  9. DAS/ISF - Data Processing
  10. Correctional Industries Revolving Fund
  11. Bank Charges


SECTION III: CONDITIONS

The amounts approved in Section I and the billings for the services listed in Section II are subject to the following conditions:

  1. LIMITATIONS: (1) Charges resulting from this agreement are subject to any statutory or administrative limitation and apply to a given grant, contract or other agreement only to the extent that funds are available. (2) Such charges represent costs incurred by the State/locality which are legal obligations of the State/locality and are allowable under OMB Circular A-87. (3) The same costs that are treated as indirect costs are not claimed as direct costs. (4) Similar types of costs are accorded consistent accounting treatment. (5) The information provided by the State/locality which was used to establish this Agreement is not later found to be materially incomplete or inaccurate.

  2. ACCOUNTING CHANGES:This Agreement is based on the accounting system purported by the State/locality to be in effect during the Agreement period. Changes to the method of accounting for costs which affect the amount of reimbursement resulting from the use of this Agreement require prior approval of the authorized representative of the Cognizant Agency. Such changes include, but are not limited to, changes in the charging of a particular type of cost from an allocated cost to a billed cost. Failure to obtain approval may result in cost disallowance.

  3. FIXED AMOUNTS: If fixed amounts are approved in Section I of this Agreement, they are based on an estimate of the costs for the period covered by the Agreement. When the actual costs for this period are determined, adjustments will be made to the amounts of a future year to compensate for the difference between the costs used to establish the fixed amounts and the actual costs.

  4. BILLED COSTS: Charges for the services listed in Section II will be billed in accordance with rates established by the State/locality. These rates will be based on the estimated costs of providing the services. Adjustments for variances between billed costs and the actual allowable costs of providing the services, as defined by OMB Circular A-87, will be made in accordance with procedures agreed to between the State/locality and the Cognizant Agency.

  5. USE BY OTHER FEDERAL AGENCIES: This Agreement was executed in accordance with the authority in OMB Circular A-87, and should be applied to grants, contracts and other agreements covered by that Circular, subject to any limitations in Paragraph A above. The State/locality may provide copies of the Agreement to other Federal Agencies to give them early notification of the Agreement.

  6. SPECIAL REMARKS:

    See Addendum

BY THE STATE/LOCALITY:
BY THE COGNIZANT AGENCY ON BEHALF OF
THE FEDERAL GOVERNMENT:
State of Connecticut

____________________
State/Locality
Department of Health and Human Services
_______________________________________
Agency

____________________
(Signature)

____________________
(Signature)
Nancy Wyman
____________________
(Name)
Vincent . Bamundo
____________________
(Name)
State Comptroller
____________________
(Title)
Director, Division of Cost Allocation
____________________
(Title)
May 8, 1996
____________________
(Date)
April 18, 1996
____________________
(Date)
HHS Representative M. Stack
Telephone: 212-264-2069

**************************************************************

ADDENDUM TO RATE AGREEMENT

April 18, 1996
____________________
Agreement Reference Date

ORGANIZATION:
State of Connecticut
Office of the State Comptroller
ADDRESS:Hartford, Connecticut 06106

TYPEFROMTORATE **LOCATION APPLICABLE TO
Fixed7/1/956/30/96 * All All Programs

*In lieu of an overall fringe benefit rate, individual rate components are negotiated as shown below. These rate components are used to compute composite rates which are applicable to specific employee groups.

Rate ComponentFYE 6/30/96
Retirement-Contributions21.51%
Retirement-Administration.48%
Retirement-ARP8.68%
Teachers Retirement17.12%
Hazardous Duty16.25%
Unemployment Compensation.21%
Group Life Insurance.15%
Social Security7.64%
Medical Insurance10.02%

**Base: Salaries and wages of covered employees (See comments below, Notes 1 & 2).

Treatment of Fringe Benefits: Fringe benefits applicable to direct salaries and wages are treated as direct costs.

NOTE 1
Fringe Benefit Rate: Separate fringe benefit rates are determined for each salary and wage character/object code in the accounting system using a combination of the above fringe benefit rate components. These rates are maintained on file by the State of Connecticut.

NOTE 2
Treatment of Paid Absences: Vacation, holiday, sick leave pay and other absences are included in salaries and wages and are claimed on grants, contracts and other agreement as a part of the normal costs for salaries and wages. Separate claims for the costs of these paid absences are not made.

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