This policy outlines the fringe benefits rates to be used when preparing budgets for sponsored project proposals.
Fringe benefit rates cover expenses such as Worker's Compensation, Unemployment Compensation, Health Plans, Retirement Plan, Social Security, Medicare, and Separation Leave for University employees.
Each year, using methods set out in approved Cost Accounting Standards, Financial Accounting and Management Accounting and Analysis (MAA) use estimated costs to calculate the rates for charging fringe benefits to budgets for the next fiscal year. New rates are then proposed to the Department of Health and Human Services, Division of Cost Allocation, for approval. These rates are known as the preliminary fringe benefit rates. The approved rates are effective July 1 of each year.
Department staff who prepare sponsored project proposals to outside sponsors, and faculty and staff paid under the sponsored project budgets.
Fringe benefit rates associated with an employee's effort and salary on a sponsored project are to be included in proposed sponsored project budgets, consistent with OMB Circular A-21 and specific sponsor policies. All sponsored project proposal budgets should include funding for employee benefits at rates commensurate with the salary object code of the individuals participating on the project, as set out in the fringe benefit rate table.
Publication of the preliminary fringe benefit rates is for use in multi-year proposal budgets. It is recommended that preliminary rates be used to calculate anticipated fringe benefit costs in the fiscal year(s) beyond the current fiscal year for which the University has approved rates.
Actual fringe benefit rates charged to a sponsored project will reflect the current approved rates for that fiscal year.
Review sponsored project budget for consistency with local policies and this GIM.
Prepare sponsored project budget consistent with OMB Circular A-21 and this policy with respect to University employee costs.
|Cost Principles for Educational Institutions||OMB Circular A-21|
|Payroll Load Rates||Financial Accounting Payroll Load Rate Explanation|
|Sponsored Projects and applicability of fringe benefit rates||OSPemail@example.com||206-543-4043|
|Preliminary rates and negotiation of rates||Management Accounting and Analysis (MAA)|
Policy Owner: Office of Sponsored Programs