The purpose of this bulletin is to:

• Remind all state departments and agencies that payment of the quarterly fringe benefit and indirect cost assessments is required within 30 days of receipt.  Payments at less than the full rate require specific legislation, regulation or an approved waiver from the Division of the Budget.  
• Provide State agencies with the State Fiscal Year 2011-2012 Fringe Benefit and Indirect Cost Assessment rates and outlines the procedures for payment of these costs.
  
  

The transition from the current Central Accounting System (CAS) to the Statewide Financial System (SFS) is currently scheduled to begin October 3, 2011.  On this date all unpaid fringe benefit and indirect cost (FBIC) balances will be converted to SFS using the 3-digit fund codes currently reflected in quarterly assessment reports (CTL610).  Since SFS will account for these receivables at a more precise 5-digit fund level, transition issues are likely to occur that could delay the conversion of these receivable balances and future payments – especially if prior quarterly assessments remain unreconciled and unpaid. 

For each billable fund, the CTL610 report contains the total personal service payments made during the quarter by agency, fund, account, program, appropriation internal number, expenditure cost center and personal service object of expense.  A second report of prior and current quarter Fringe Benefit/Indirect Cost Assessment Ledger (LED080) is also produced and distributed to state agencies.  The LED080 presents, in ledger format, the amount(s) billed, waivers approved by Division of Budget, agency payments, and any unpaid balance carried forward from previous quarters.  The current quarter assessment from the CTL610 is carried forward to the LED080. 

To avoid problems with conversion, it is expected that ALL agencies will promptly review, reconcile and pay their FBIC assessments within 30 days of receipt.  If the unpaid balance shown on the LED080 DOES NOT agree with agency-maintained records and cannot be reconciled by agency personnel, then this must be promptly reported to Bureau of State Accounting Operations (BSAO) - Revenue Accounting Section at 518-474-8991.   BSAO will make every attempt to resolve differences but ultimate responsibility for reconciliation of unpaid balances rests with the agency since payments at less than the full rate require specific legislation, regulation or an approved waiver from the Division of the Budget.  OSC does not have the authority to forgive or issue waivers for unpaid balances.

Federal Funds

The Division of the Budget has also provided OSC with agency-specific federal indirect cost rates that will be used to produce the quarterly Fringe Benefit/Indirect Cost Invoice (CTL610) report.  The indirect cost rates can be obtained by contacting your agency budget examiner.

Journal Vouchers, using batch type FBP, may be entered and released at agency terminals provided they are mailed, with an error-free copy of the batch control list (BCL), within 48 hours after they are entered to:

Office of the State Comptroller
Bureau of State Accounting Operation
Revenue Accounting Section
110 State Street – 9th Floor
Albany, NY 12236

Charge lines on the JV should be coded as follows:

• Expenditure objects must be:
  -58800 for Fringe Benefits
  -59400 for Indirect Costs
•   Revenue Credits must contain the coding outlined in the table below.

Definitions, legal authority, detail billing and payment procedures are outlined in Section 6.0200 of the NYS Accounting System User Procedure Manual- Controls and Special Procedures (Volume XI) published on OSC’s website (www.osc.state.ny.us) under “Resources for State Agency Representatives”.

Please contact –

• Courtney Landers
  (518)408-3794  clanders@osc.state.ny.us
• Krista Leslie
  (518)474-8991  kleslie@osc.state.ny.us