STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 2003-32
July 21, 2003
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Fiscal Officers or Business Managers|
|Subject:||Statewide Cost Allocation Plans for the Fiscal Year 2002-2003|
Attached is the approved 2002-2003 Statewide Cost Allocation Plan, dated June 18, 2003.
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 "super-agencies" 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 2002-2003 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 Memorandum No. 2002-25 for the 2002-2003 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.
|SERS - Regular Employees||21.40%|
|Alternate Retirement Plan||9.04%|
|Teachers Retirement Plan||14.50%|
|SERS - Hazardous Duty||22.31%|
|Group Life Insurance||0.26%|
|FICA - Social Security||5.64%|
|FICA - Medicare||1.37%|
Workers' Compensation Costs. Actual cost of claims paid per agency during the 2001-2002 fiscal year should be included in any Indirect Cost Proposal or Cost Allocation Plan using costs included in the 2002-2003 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. For all other agencies, refer to the attached Exhibit C for the amount of Worker's Compensation costs paid on their behalf in 2002-2003 fiscal year to be included 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.
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