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:
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.
|Alternate Retirement Plan||8.83%|
|Teachers Retirement Plan||16.38%|
|Group Life Insurance||0.13%|
|FICA - Social Security||5.31%|
|FICA - Medicare||1.27%|
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: email@example.com
|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|
|*||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%|
|Group Life Insurance||.13%|
|FICA - Social Security||5.31%|
|FICA - Medicare||1.27%|
|**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.
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.
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/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.
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:
|BY THE STATE/LOCALITY:||BY THE COGNIZANT AGENCY ON BEHALF OF
THE FEDERAL GOVERNMENT:
|State of Connecticut
|Department of Health and Human Services
|Vincent J. Bamundo
|Director, Division of Cost Allocation
|November 22, 1999
|November 9, 1999
|HHS Representative M. Stack|
STATE OF CONNECTICUT 1998-99 CONSOLIDATED STATEWIDE COST ALLOCATION
SUMMARY OF COSTS WITH BUDGET FACTOR APPLIED RECOVERED ON GRANTS
NEGOTIATED OR RENEWED DURING FISCAL YEAR 1998-99.
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|
|Department of Social Services||945,595|
|Department of Public Health||929,282|
|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|
|Worker's Compensation Commission||138,659|
|Department of Revenue Services||123,185|
|Connecticut Lottery Corporation||122,095|
|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|
|Public Defender Services Commission||58,279|
|Office of Policy and Management||58,212|
|Department of Public Works||54,395|
|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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