State of Connecticut Office of the State Comptroller Attachment to MEMORANDUM NO. 2003-32 COST ALLOCATION AGREEMENT

State of Connecticut

ATTACHMENT TO MEMORANDUM 2003-32

COST ALLOCATION AGREEMENT
STATE AND LOCAL GOVERNMENTS

STATE/LOCALITY: DATE: July 18, 2003
State of Connecticut
Office of the Comptroller FILING REF: the preceding
55 Elm Street Agreement was dated 6/04/02
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 6/30/03  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)		 Robert I. Aaronson
(Name)
State Comptroller
(Title)		 Director, Division of Cost Allocation
(Title)
July 15, 2002
(Date)		 June 18, 2003
(Date)
HHS Representative L. Martillotti
Telephone: 212-264-2069

 

ADDENDUM TO RATE AGREEMENT
June 18, 2003
Agreement Reference Date
ORGANIZATION: State of Connecticut
Office of the State Comptroller
ADDRESS: Hartford, Connecticut 06106
TYPE FROM TO RATE ** LOCATION APPLICABLE TO
Fixed 7/1/02 6/30/03 * 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 6/30/03
SERS Regular Employees 21.40%
SERS Hazardous Duty Employees 22.31%
Alternate Retirement Plan (ARP) 9.04%
Teachers Retirement 14.50%
Unemployment Compensation .09%
Group Life Insurance .26%
FICA - Social Security 5.64%
FICA - Medicare 1.37%
Medical Insurance 11.45%
**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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