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. 97-37

July 7, 1997

TO THE HEADS OF ALL STATE AGENCIES

ATTENTION: Chief Fiscal Officers or Business Managers
SUBJECT: Statewide Cost Allocation Plans for the Fiscal Year 1996-97

Attached is the approved 1996-97 Statewide Cost Allocation Plan, dated May 28, 1997.

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 Financial Analysis Division - Cost Unit
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 1996-97 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 Budget and Financial Analysis 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. 96-32 for the 1996-97 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 17.76%
Alternate Retirement Plan 7.95%
Teachers Retirement Plan 19.90%
Hazardous Duty 25.65%
Judges/Compensation Commissioners 54.39%
Unemployment Compensation 0.13%
Group Life Insurance 0.13%
Social Security 7.17%
Medical Insurance 7.60%

If there are any questions, please call our Budget and Financial Analysis Division at (860) 702-3364.

NANCY WYMAN
STATE COMPTROLLER

Exhibit A
STATE OF CONNECTICUT 1996-97 CONSOLIDATED STATEWIDE COST ALLOCATION PLAN
SUMMARY OF COSTS WITH BUDGET FACTOR APPLIED RECOVERED ON GRANTS
NEGOTIATED OR RENEWED DURING FISCAL YEAR 1996-97.
1996-97
SUMMARY TOTALS BY
SUPER AGENCIES
AUDITORS
OF PUBLIC
ACCOUNTS
OFFICE OF
THE STATE
TREASURER
OFFICE OF
THE STATE
COMPTROLLER
OFFICE 
OF
POLICY 
AND
MANAGEMENT
DAS-
BUREAU
OF
PERSONNEL
DAS-
BUREAU
OF COLLECTION
SERVICES
DAS-
BUREAU
OF 
BUSINESS
SERVICES
DEPART-
MENT
OF
PUBLIC WORKS
AGRICULTURE(49,868)3,365 51,040 4,187 26,540 0 25,077 256,378
BUSINESS REGULATIONS(119,618)14,976 192,670 171,765 187,419 0 74,359 (282,187)
DEPARTMENT OF CHILDREN AND FAMILIES174,239 70,714 646,376 328,349 1,523,684 1,033,552 133,431 89,881
CONSUMER PROTECTIONS(70,457)8,063 112,367 24,112 85,783 0 31,733 1,000,083
CORRECTIONS(341,999)163,973 1,135,899 (157,513)4,624,400 0 865,222 1,245,494
ECONOMIC DEVELOPMENT(89,058)1,337 82,919 36,523 66,140 0 59,323 (36,450)
STATE BOARD OF EDUCATION135,808 150,171 1,155,043 359,260 708,315 474,445 355,222 1,732,833
EVIRONMENTAL PROTECTION(136,439)40,469 415,514 4,045 492,679 0 297,193 3,927,363
DEPARTMENT OF PUBLIC HEALTH (130,349)(10,151)171,390 20,550 382,961 0 254,943 3,007,265
HIGHER EDUCATION69,415 413,334 3,686,930 (303,467)1,107,555 0 (91,767)661,928
HOUSING(143,249)6,827 136,401 (7,053)58,167 0 6,923 439,291
DEPARTMENT OF SOCIAL SERVICES507,780 33,659 415,639 846,594 1,031,371 3,838,775 118,799 2,802,325
JUDICIAL(360,961)239,712 1,407,255 62,531 388,461 0 9,831 1,186,022
LABOR(176,986)70,500 559,715 380 473,591 0 13,447 425,110
MENTAL HEALTH(144,856)75,353 1,348,038 120,553 2,441,650 3,558,336 516,989 716,128
MENTAL RETARDATION(469,618)120,465 1,150,196 117,319 3,150,329 2,069,954 176,525 167,893
MOTOR VEHICLES(30,618)6,638 148,245 (1,946)372,525 0 310,989 (797,258)
PUBLIC SAFETY(99,262)67,610 595,149 181,707 1,193,300 0 277,490 884,712
REVENUE SERVICES(118,155)33,276 379,799 84,772 279,384 0 279,628 5,417,880
TRANSPORTATION425,380 (71,007)(262,904)(160,051)1,995,228 0 (242,061)(42,716)
ALL OTHERS(271,077)155,972 758,181 522,173 861,488 0 305,863 2,265,962
TOTALS(1,439,948)1,595,257 14,285,862 2,254,791 21,450,970 10,975,063 3,779,157 25,067,937
1996-97
SUMMARY TOTALS BY
SUPER AGENCIES
TECHNICAL
SERVICES
INTERNAL
SERVICE FUND
GENERAL
SERVICES
INTERNAL
SERVICE FUND
OFFICE OF
THE ATTORNEY
GENERAL
PAYMENTS TO
TOWNS IN LIEU
OF TAXES
INSURANCE
PURCHASING
BOARD
CORRECTION
INDUSTRIES
INTERNAL
SERVICE FUND
TUITION
REIMBURSEMENT
TOTAL
AGRICULTURE651 7,778 36,519 191,857 16,495 0 (7,045)562,975
BUSINESS REGULATIONS33,920 12,951 374,354 4,077 (477)(2,127)3,315 665,395
DEPARTMENT OF CHILDREN AND FAMILIES191,685 43,818 1,407,710 51,808 (4,956)(3,159)9,442 5,696,574
CONSUMER PROTECTIONS9,931 14,713 683,540 17,127 1,953 (146)(2,707)1,916,095
CORRECTIONS149,184 (171,264)494,799 7,135,861 5,537 (396,710)93,631 14,846,515
ECONOMIC DEVELOPMENT4,333 1,009 148,472 0 6,494 (8,956)(54)272,030
STATE BOARD OF EDUCATION81,755 16,994 (179,803)1,458,524 (62,542)(2,646)(68,515)6,314,865
EVIRONMENTAL PROTECTION21,610 87,755 732,864 (92,964)424,587 (1,838)264 6,213,103
DEPARTMENT OF PUBLIC HEALTH 48,921 54,407 27,177 496,899 (8,825)(2,592)10,806 4,323,402
HIGHER EDUCATION9,721 3,474 875,581 9,221,313 307,092 (8,397)111,360 16,064,072
HOUSING838 4,725 (15,839)10,749 (4,957)0 (13,794)479,029
DEPARTMENT OF SOCIAL SERVICES668,741 20,146 2,013,451 866 (5,098)(363)(46,378)12,246,306
JUDICIAL78,519 24,226 799,528 1,960,986 63,149 (586)10,877 5,869,551
LABOR12,091 16,234 461,127 56,254 1,503 (1,046)(3,586)1,908,333
MENTAL HEALTH178,405 170,148 719,285 1,952,618 (16,455)(2,790)259,904 11,893,306
MENTAL RETARDATION2,823 23,083 80,004 834,350 (9,471)(2,779)131,648 7,542,723
MOTOR VEHICLES87,145 10,499 (52,288)65,607 (9,112)(213,729)8,327 (94,978)
PUBLIC SAFETY121,900 26,306 196,102 1,936,368 2,241,281 (3,520)40,222 7,659,366
REVENUE SERVICES162,619 6,167 404,517 27,064 (9,095)(51)(203)6,947,603
TRANSPORTATION8,335 25,511 1,291,003 1,732,512 1,424,232 (12,269)10,160 6,121,352
ALL OTHERS63,281 81,064 375,592 355,155 178,672 (7,642)41,344 5,686,028
TOTALS1,936,406 479,742 10,873,696 27,417,030 4,540,008 (671,344)589,021 123,133,646

Exhibit B
1996-97 FRINGE BENEFITS
The following rates were published under Memorandum NO. 96-32 for the 1996-97 fiscal year.
Expenditure
Object
DescriptionFringe Benefit
Rate
01-010
and all other codes
not listed below
Full Time 32.79%
01-020 Temporary 25.06%
01-030 Contractual 7.30%
01-040 Student Labor 0.00%
01-050 Fees 0.00%
01-090 Accumulated Sick Leave at Normal Retirement 7.17%
01-130 Patient or Inmate Workers 0.00%
01-150 Graduate Assistants - UCONN 7.60%
01-180 Overtime - Temporary Employee 25.06%
01-220 Accumulated Sick Leave at Death or Disability Retirement 0.00%
01-240 Allowances/Reportable Payments Alternate Retirement Plan Without Social Security 15.81%
01-250 Allowances/Reportable Payments Alternate Retirement Plan With Social Security 22.98%
01-260 Allowances/Reportable Payments Teachers Retirement Without Social Security 27.76%
01-270 Allowances/Reportable Payments Teachers Retirement With Medicare Social Security 27.76%
01-310 thru 01-380 Teachers Retirement System Without Medicare Social Security 27.76%
01-390 Teachers Retirement Plan - Accumulated Sick Leave at Retirement 0.00%
01-410 thru 01-480 Teachers Retirement Plan With Medicare Social Security 27.76%
01-490 Teachers Retirement Plan - Accumulated Sick Leave at Retirement 0.00%
01-510 thru 01-580 Alternate Retirement Plan Without Social Security 15.81%
01-590 Alternate Retirement Plan - No SS Accumulated Sick Leave at Retirement 0.00%
01-610 thru 01-680 Alternate Retirement Plan With Social Security 22.98%
01-690 Alternate Retirement Plan - Accumulated Sick Leave at Retirement 7.17%
01-710 thru 01-780 Alternate Retirement Plan With Medicare Social Security 15.81%
01-790 Alternate Retirement Plan - Accumulated Sick Leave at Retirement 0.00%
01-800 thru 01-850 Lecturers (CSU) 7.30%
01-860 Federal College Work-Study (CSU) 0.00%
01-870 Federal College Work-Study Match (CSU) 0.00%
01-880 Summer Workers (CSU) 25.06%
01-890 Cooperative Ed Students (CSU) 7.30%
01-900 Student/Graduate Interns (CSU) 0.00%
01-920 Interest Penalty - Payroll Awards 0.00%
01-930 Durational Employees - No Benefits - UCONN 25.06%
01-950 Buy Back Option - UCONN 0.00%
01-960 Foreign Nationals with F-1 or J-1 Visa 7.60%
01-970 Graduate Assistants (CSU) 0.00%
Hazardous Duty With Social Security 40.68%
Hazardous Duty Without Social Security 33.51%
Judges & Compensation Commissioners 69.42%

COST ALLOCATION AGREEMENT
STATE AND LOCAL GOVERNMENTS

STATE/LOCALITY: DATE: May 28, 1997
State of Connecticut
Office of the Comptroller FILING REF: the preceding
55 Elm Street Agreement was dated 4/18/96
Hartford, Connecticut 06106


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 6/30/97 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. Fringe Benefits (See Addendum)
  2. Workers' Compensation
  3. Telephone
  4. DAS/ISF - Central Print Shop
  5. DAS/ISF - Central Warehouse
  6. DAS/ISF - Fleet Operations
  7. DAS/ISF - Data Processing
  8. Correctional Industries Revolving Fund
  9. 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 J. Bamundo
_______________________________________
(Name)
State Comptroller
____________________
(Title)
Director, Division of Cost Allocation
_______________________________________
(Title)
June 12,1997
____________________
(Date)
May 28,1997
_______________________________________
(Date)
HHS Representative M. Stack_____________
Telephone: 212-264-2069____________________

Page 1 of 1
ADDENDUM TO RATE AGREEMENT
May 28, 1997
_______________________
Agreement Reference Date
ORGANIZATION: State of Connecticut
Office of the State Comptroller
ADDRESS: Hartford, Connecticut 06106
TYPE FROM TO RATE ** LOCATION APPLICABLE TO
Fixed 7/1/96 6/30/97 * 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 Component FYE 6/30/97
SERS Regular Employees 17.76%
SERS Hazardous Duty Employees 25.65%
Alternate Retirement Plan (ARP) 7.95%
Teachers Retirement 19.90%
Unemployment Compensation .13%
Group Life Insurance .13%
Social Security 7.17%
Medical Insurance 7.60%
**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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