The Seal of the Office of the State Comptroller

MEMORANDUM NO. 99-47

November 22, 1999

TO THE HEADS OF ALL STATE AGENCIES

Attention: Chief Fiscal Officers or Business Managers
Subject: Statewide Cost Allocation Plans for the Fiscal Year 1998-1999

Attached is the approved 1998-99 Statewide Cost Allocation Plan, dated November 9, 1999.

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.

Fringe Benefit Cost Recovery Rates. The approved 1998-99 fringe benefit recovery rates for covered payroll are listed in 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 rates listed in Exhibit B were originally published under Comptroller's Memorandum Number 98-29 for the 1998-99 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.

Component Rate
SERS  Contributions 19.38%
Alternate Retirement Plan 8.83%
Teachers Retirement Plan 16.38%
Hazardous Duty 19.97%
Judges/Compensation Commissioners 44.56%
Unemployment Compensation 0.16%
Group Life Insurance 0.13%
FICA - Social Security 5.31%
FICA - Medicare 1.27%
Medical Insurance 9.30%

Workers' Compensation Costs. Actual cost of claims paid per agency during the 1998-99 fiscal year should be included in any Indirect Cost Proposal or Cost Allocation Plan using costs included in the 1998-99 Statewide Cost Allocation Plan.

Agencies with a specific Worker's Compensation appropriation should use the total expenditures of that appropriation in their Indirect Cost Proposal or Cost Allocation Plan. All other agencies please refer to Exhibit C attached to this memorandum for the amount of Worker's Compensation costs paid on their behalf for inclusion in their Indirect Cost Proposal or Cost Allocation Plan.

If you have any questions regarding this memorandum please call the Cost Reporting Unit, Budget and Financial Analysis Division at 860-702-3364, or, send e-mail to: robert.kinnin@po.state.ct.us


NANCY WYMAN
STATE COMPTROLLER

 

NW:RWK

Page 1 of 1
ADDENDUM TO RATE AGREEMENT
November 9, 1999
Agreement Reference Date
ORGANIZATION: State of Connecticut
Office of the State Comptroller
ADDRESS: Hartford, Connecticut 06106
TYPE FROM TO RATE ** LOCATION APPLICABLE TO
Fixed 7/1/98 6/30/99 * 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 Fiscal Year Ending 6/30/99
SERS Regular Employees 19.38%
SERS Hazardous Duty Employees 19.97%
Alternate Retirement Plan (ARP) 8.83%
Teachers Retirement 16.38%
Unemployment Compensation .16%
Group Life Insurance .13%
FICA - Social Security 5.31%
FICA - Medicare 1.27%
Medical Insurance 9.30%
**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.

COST ALLOCATION AGREEMENT
STATE AND LOCAL GOVERNMENTS
STATE/LOCALITY: DATE: November 9, 1999
State of Connecticut
Office of the Comptroller FILING REF: the preceding
55 Elm Street Agreement was dated 6/11/98
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 6/30/99 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 Printing and Electronic Publishing
  5. DAS/ISF - Fleet Operations
  6. DAS/ISF - Data Processing
  7. Correctional Industries Revolving Fund
  8. 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)
November 22, 1999
(Date)
November 9, 1999
(Date)
HHS Representative M. Stack
Telephone: 212-264-2069

Exhibit A

STATE OF CONNECTICUT 1998-99 CONSOLIDATED STATEWIDE COST ALLOCATION PLAN
SUMMARY OF COSTS WITH BUDGET FACTOR APPLIED RECOVERED ON GRANTS
NEGOTIATED OR RENEWED DURING FISCAL YEAR 1998-99.

Exhibit B

The 1998-99 FRINGE BENEFIT RATES rates were originally published under Memoranda Number 98-29 for the 1998-99 fiscal year.

 

Exhibit C Worker's Compensation Expenditures
General Government Agency Amount Spent in FY 1998-99
UCONN Health Center 1,693,219
Connecticut State Universities 1,179,551
Department of Education 1,164,858
University of Connecticut 1,162,453
Judicial Department 1,101,570
Department of Social Services 945,595
Department of Public Health 929,282
County Sheriffs 821,932
Department of Motor Vehicles 563,891
Regional Community-Technical Colleges 378,439
Department of Administrative Services 346,979
Department of Environmental Protection 344,882
Department of Veterans Affairs 337,822
Labor Department 165,382
Elected Officials 157,721
Worker's Compensation Commission 138,659
Department of Revenue Services 123,185
Connecticut Lottery Corporation 122,095
Military Department 115,452
Department of Consumer Protection 113,366
Board of Education and Services for the Blind 105,959
Division of Criminal Justice 104,259
Division of Special Revenue 101,443
Commission on Human Rights and Opportunities 90,746
Various Commissions 79,280
Public Defender Services Commission 58,279
Office of Policy and Management 58,212
Department of Public Works 54,395
State Library 53,130
Legislative Management 51,826
Connecticut Housing Finance Authority 45,900
Department of Agriculture 45,544
Department of Insurance 44,701
Connecticut Agriculture Experiment Station 41,090
Office of the Medical Examiner 32,650
Uncas on the Thames Hospital 29,930
Department of Economic and Community Development 35,836
Commission on Fire Prevention and Control 26,654
Office of Advocacy for Persons with Disabilities 14,982
Board of Firearm Permit Examiners 14,624
Department of Public Utility Control 10,516
Auditors of Public Accounts 9,152
Department of Banking 385
Office of Health Care Access 63
Board of Parole (2,990)

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