July 17, 2013
ABS anticipates that the FY14 fringe benefit rates will not have final approval from the Department of Health & Human Services (DHHS) by the end of July when the first fringe benefit allocation runs in PeopleSoft. Although the fringe benefit rate proposal was submitted to DHHS on time in December 2012, the federal budget cuts have resulted in a backlog of work at DHHS which has delayed their review of our rate proposal. We anticipate that we will have approved rates by the end of the federal fiscal year, September 30, 2013. Once approved, the rates will be effective retroactive to July 1, 2013.
Historically, the proposed rates are approved with little to no adjustment by DHHS. However, the new rates will not be put into PeopleSoft for use in the allocation entries until they are finalized. Beginning with the July 2013 allocation entries, the FY13 rates will continue to be used for charging fringe benefits. In order to more accurately reflect the available balance on each SpeedType, ABS will book a manual encumbrance entry to reflect the difference between the FY13 rates and the FY14 proposed rates (see rates below). Once the rates are finalized, ABS will remove the manual encumbrances, make a year-to-date adjustment to the actual fringe benefit expense, and update the allocation entries with the approved rates.
While there is no action required on your part, if you have questions or concerns about this process, please contact Diane.Przygocki@colorado.edu. Feel free to distribute this information to others in your unit as appropriate.
Do not use these rates for sponsored project budgets until approved by DHHS. Please check with the Office of Contracts and Grants for rates to use.
|Employee Type||FY13||FY14 Proposed|
|Prof Exempt & Research Faculty FT/Classified permanent||30.9%||32.5%|
|Prof Exempt & Research Faculty PT/Classified temporary||10.6%||12.5%|