STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

MEMORANDUM NO. 2003-06

February 10, 2003

TO THE HEADS OF ALL STATE AGENCIES

I. BACKGROUND

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. 

II. AGENCY RESPONSIBILITY

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 2001-2002 Statewide Cost Allocation Plan. 

The schedule of "Expenditures With Settlements for FY 01-02", was not available when the original memorandum was published. The schedule is now available and is attached to this memorandum. 

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, a schedule of the amount of Worker's Compensation costs paid on their behalf in 2001-2002 to be included in their Indirect Cost Proposal or Cost Allocation Plan is attached.

III. QUESTIONS

Questions concerning this memorandum should be directed to the Cost Reporting Unit of the Budget and Financial Analysis Division at 860-702-3364. 

NANCY WYMAN
STATE COMPTROLLER 

NW:BG

Attachment

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