|Attention:||Chief Administrative Officers, Chief Fiscal Officers and Business Managers|
|Subject:||Fiscal Year 2016-2017 Workers' Compensation Costs|
All state agencies receiving Federal or other grants, any 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. An indirect cost rate shall enable the state to recover both agency and statewide indirect costs as permitted by Federal regulations.
II. AGENCY RESPONSIBILITY
Workers' Compensation Costs. Any Indirect Cost Proposal or Cost Allocation Plan prepared by an agency that includes the 2016-2017 Statewide Cost Allocation Plan cost allocated to the agency should also include the actual cost of workers' compensation claims paid on behalf of the agency during the 2016-2017 fiscal year. Please see the attached schedule for workers' compensation expenditures by state agency.
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.
If you have any questions regarding this memorandum please call the Budget
and Financial Analysis Division's Cost Reporting Unit at (860) 702-3352.
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