 December 2000 - Indirect Cost Steering Committee requested that
GCA develop a Composite Fringe Benefits Rates Proposal for submission to DHHS in conjunction with F&A Cost Rates Proposal
 F&A Cost Rates Proposal submitted March 2001
 Composite Fringe Benefits Proposal submitted November 2001
 DHHS approved Composite Fringe Benefits Rates Agreement dated 2/28/02 establishing fixed rates with carry-forward provisions for two-year period, 7/1/02 to 6/30/04
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 OMB Circular A-21 Section J.8.f allows universities to charge fringe benefits to university activities via:
 Direct assignment to employees (current MUSC procedure) or,
 An allocation method with fixed rates applied through composite fringe benefits rates established by selective employee categories (new MUSC procedure)
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 To provide consistent accumulation and allocation of fringe benefits expenses to all functional activities as required by Cost Accounting
Standards 501 and 502
 To improve the budgeting process for all University funds
 To simplify the accounting for fringe benefits expenses
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=
• Social Security/Medicare
• Retirement Contributions
• Deferred Compensation
• Health Insurance
• Dental Insurance
• Workers’ Comp
• Unemployment Insurance
•
Retirement Incentive *
•
Termination Pay *
•
Tuition Assistance *
•
Sabbatical Leave *
+
• Employee Assistance Program
• Employee Health Services
( *
Miscellaneous Fringe Benefits which are currently treated as “Salaries”)
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Employee Benefits
Category
Employment
Type
Staff
Post-Docs / Temporaries
Faculty, 9-Month Faculty,
Unclassified Non-Faculty,
Classified,
Temp Grant-All Benefits
Post-Docs, Temp Faculty,
& Temp Non-Faculty
Approved Rates
Click here for current approved rates
Students / Temporaries with No Benefits
Temp Grant-No Benefits,
-Ins. Only, -Leave Only,
Student
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 Scope
 Apply to Sponsored Projects Only during FY 2003
 Consider application to all fund sources in future years
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 New Procedures for FY 2003
 Miscellaneous Fringe Benefits (Termination Pay, Tuition
Assistance, Sabbatical Leave, Retirement Incentive) may not be charged directly to Sponsored Projects since these are included in the composite rates
 Fringe benefit expenses will be calculated using negotiated composite rates & will be charged to Fringe Benefits Expense account (50189) => these amounts will be billed to sponsors
 Over- or under-recovery of fringe expenses will be accounted for by function at the Financial Statements level (new account
50190) and not by individual project
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I. PAYROLL LEDGER
(Actual)
1. Employee is paid Salary &
Fringe Benefits under normal
MUSC payroll procedures
2. MUSC employer portion of
Actual Fringe Benefits is recorded in Detailed Payroll
Ledger
II. GENERAL LEDGER
(Composite Rates)
1. Project is charged in General
Ledger for Composite Fringe
Benefits equal to (Salaries X
Applicable Composite Rate)
2. Sponsor is billed for
Composite Fringes + All Other
Expenses (within budgetary constraints)
III. FINANCIAL
STATEMENTS
1. Difference between Composite
Fringes and Actual Fringes is calculated by Function
2. If difference is positive =>
MUSC has over-recovered vs. actual expense
3. If difference is negative
=> MUSC has underrecovered vs. actual expense
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 It is anticipated that two percent (2%) of Sponsored Project
Salaries Expenses will be recovered from the sponsors and can be set aside in order to assist the colleges in funding Miscellaneous
Fringe Benefits Expenses
 Recovered amounts will be allocated on a quarterly basis
 GCA will analyze fringe benefits expenses and recovery on a monthly basis & recommend adjustments as necessary
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 Over- or under-recovery of expenses will be carried forward & included as an adjustment to the next fringe rates proposal
 Next proposal will be based on FY 2003 expenditures & must be submitted by 12/31/03
 Possible application of composite rates to other fund sources in future years
 Policies and limits to be established for Sabbatical Leave, Tuition
Assistance, and Retirement Incentive so that university does not over-commit fringe benefits expenses
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