Fringe Benefits and Indirect Costs will be assessed and paid from special and administrative funds of the State.
Fringe Benefits costs refer to those disbursements incurred by the State for the benefit of its employees and includes the costs to the State, as an employer, for Retirement plans, Social Security, Health Insurance, Dental Insurance, Worker's Compensation, Survivor's Benefits, Unemployment Insurance and the State's contribution to the Employee Benefit Funds pursuant to agreements with the various bargaining units.
Indirect costs are agency or central service agency costs that cannot be directly associated with the administration of a particular program and therefore cannot be charged as a direct program expense. Indirect costs include, but are not limited to, physical overhead, space occupancy, utilities, information technology and central service agency (e.g. OSC, OGS, Civil Service, Budget, General Services, etc.) costs.
Statutory authority for assessing, collecting and making payments from funds of the State are included in various statutes of the State. Generally these provide that whenever the compensation of an employee is paid from a special or administrative fund provided for by law, fringe benefits and a proportionate share of administrative costs associated with the administration of benefits, which would otherwise be chargeable to the State's General Fund, shall, with approval of the Budget Director, be paid from such special or administrative fund. Employee fringe benefit and indirect costs of the General Fund are paid from general state charge appropriations provided annually and are not subject to the special assessment procedures described herein.
|Comptroller Assess and Collect||Section 8-b||State Finance Law|
|Retirement||Section 16(c)||Retirement and Social Security Law|
|Social Security||Section 138-a||Retirement and Social Security Law|
|Health Insurance||Section 168-1 and 2||Civil Service Law|
|Worker’s Compensation||Section 88-a||Workmen’s Compensation Law|
|Survivor’s Benefits||Section 154-8||Civil Service Law|
|Unemployment Insurance||Section 580||Labor Law|
|Employee Benefit Funds||Section 6(f)||State Finance Law|
At the beginning of each fiscal year, fringe benefit and indirect cost rates are provided to the Comptroller by the Director of the Budget. The federal government may also request the negotiation of a separate rate for distinctive programs. For example, a special rate can be developed for a state-administered program paid for with federal funds or for an organizational unit which is entirely supported with federal funds. Thus, State agencies may have separate rates for federally sponsored activities as well as for any special program for which a unique rate is requested by the federal government. For federal fund assessments, the rate provided is determined by agreement with federal awarding agencies and, as noted above, may be agency, fund or program specific. OSC’s Bureau of State Accounting Operations (BSAO) Revenue section will apply the rates provided by the Budget Director to personal service disbursements made from special or administrative funds to determine the fringe benefit and indirect cost assessment. Current fiscal year rates:
|State Fiscal Year 2017-18 Rates
|Fringe Benefit Components||Federal Funds||Non-Federal Funds||FEMA Overtime|
|Employee Benefit Funds||.94||.99||-|
|Total Fringe Benefit Rate||59.97%||61.48%||24.73%|
|Indirect Cost Rate||Contact DOB Examination Unit||2.64%||
For prior year rates, click here.
Fringe Benefit and Indirect Cost assessments are based upon personal service disbursements paid from appropriated funds, except the General Fund and any other fund specifically exempted by the Division of the Budget. The assessment is derived by multiplying the percentage rates by the total personal service disbursements made during the quarter.
In the month following the end of each quarter, OSC BSAO will establish the Run Control for the FBIC Quarterly Billing process with the initial dates for the invoices and vouchers. A FBIC Cash Ledger process will be run by OSC and SFS to accumulate all payroll disbursements into the billing module for use in calculating the FBIC amounts to be billed. The Single Action Invoice process is run to complete the FBIC billing process and finalize the FBIC bills/invoices.
Agency AP users have been granted access to the Accounts Receivable and General Ledger modules under the SFS Financials menu to allow them to run the NYAR0260 (FBIC Invoice) and the NYGL0442 (FBIC Ledger) reports for their agency. The NYAR0260 displays all of the FBIC invoice detail by fund of a specific GLBU (customer) during a specific time period. The NYGL0442 displays the invoice IDs, billed amounts, paid amounts, any credit/re-bill adjustments and the outstanding amount due by fund for each GLBU (customer) through a specified time period. Each report is located within the Report sub menu of the respective module. Any discrepancies with activity appearing on the report can be reported to the OSC BSAO Revenue Accounting Section by emailing RevenueAccounting@osc.state.ny.us
Once the FBIC process is complete, an operational advisory will be issued notifying the Business Units that the billing reports can be retrieved in SFS.
To run the NYAR0260, navigate to Accounts Receivable > Report > FBIC Invoice. If a run control already exists, navigate to Find an Existing Value. If no run control exists, navigate to Add a New Value, create a Run Control and Save. With the implementation of obligation date on June 1, 2014, a separate invoice date was made available in SFS. Prior to June 1, 2014 the quarter end date was used for invoice date.
When running the report enter the following in the run control,
‘From Date’ –the invoice date of the bill for bills created after June 1, 2014 OR the last day of the quarter for bills created prior to June 1, 2014.
‘To Date’ – Same date as the ‘From Date’.
‘Business Unit’ – Agency GLBU
The NYAR0260 can be viewed in Report Manager once the report run status is “Success”.
For a list of all quarter invoice dates, click here.
In addition, the invoice date can also be found on the FBIC voucher located in Accounts Payable.
To run the NYGL0442, navigate to General Ledger > General Reports > FBIC Analysis Report. If a run control already exists, navigate to Find an Existing Value. If no run control exists, navigate to Add a New Value, create a Run Control and Save.
When running the report,
The NYGL0442 can be viewed in Report Manager once the report run status is “Success”.
All Fringe Benefit and Indirect Cost payments are made through the Accounts Payable module using regular vouchers. The billing process within the Accounts Receivable module will create a regular voucher for Fringe Benefit and a regular voucher for Indirect Costs, if applicable. These regular vouchers must be used as they contain the necessary information to properly post FBIC (e.g. invoice number, amount, dates, etc).
Each voucher uses an invoice number beginning with ‘FB’. To pay the voucher, you must use the same FB invoice number and amount listed on the interagency bill. Failure to do so will result in an “error” message which will prevent the voucher from being budget checked and submitted for payment.
The vendor ID on the regular voucher is specific to the Interagency Billing process and is automatically populated when the regular voucher is created as part of the Fringe Benefit and Indirect Cost billing within Accounts Receivable. Do not change the vendor ID, as it is used to match the invoice with the payment to ensure the receivable amount is correctly accounted for and that no payment is produced. If the vendor ID is changed, the receivable account will not get credited, you will not see the payment reflected in the NYGL0442 report, and the vendor ID that is entered will receive a payment to which they may not be entitled.
Select chartfields are automatically populated by the system when the voucher is created. These vouchers are created to ensure that payables and receivables are in balance in SFS. If a voucher is posted with these chartfield strings, the voucher will fail. Agencies must change the chartfield strings on the voucher to appropriate chartfield values before submitting the voucher for payment. Typically these chartfield values would be found on the invoice obtained from the NYAR0260. The populated fund and account codes must be changed prior to voucher approval. The distribution lines on the voucher must use the following SFS expenditure account codes on the proper voucher:
Once the voucher is approved and paid, the SFS will create and post the necessary revenue transactions to the proper Fringe Benefit Escrow Funds using account code 32203 – Fringe/Indirect Cost Assess.
FBIC Quarterly billings generated an invoice and a voucher with an Accounting and Invoice date equal to the last day of the billed quarter. FBIC pre-bill invoices and vouchers were generated with an Accounting and Invoice date equal to the date the bill was originally created.
After conversion, all existing FBIC vouchers created during the FBIC Quarterly billings will have the Obligation, Accounting and Invoice dates set to the last day of the quarter that was billed (June 30, September 30, December 31 or March 31). For existing pre-bills, the Obligation, Accounting and Invoice dates on the vouchers will all be set to the date the bill was originally created.
Obligation date - the last day of the quarter that was billed (June 30, September 30, December 31, or March 31).
Accounting date - the day the FBIC Cash Ledger Process is run by OSC and SFS. This process accumulates all payroll disbursements into the billing module.
NOTE: See the Guide to Financial Operations, Chapter XIV, Section 2 – Obligation, Accounting and Budget Dates for guidance on proper determination of the Accounting date.
Invoice date - the day the Single Action Invoice process is run. This process completes and finalizes the FBIC bills/invoices.
FBIC pre-bills are created with the Obligation, Accounting, and Invoice dates with the date the bills are invoiced.
All state agencies are required to pay the full amount shown on the invoice. The Fringe Benefit and Indirect Costs shown on the quarterly FBIC Invoices (NYAR0260) are calculated using the rates provided in the table above. Payments at less than the full rate require specific legislation, regulation or an approved waiver from the Division of the Budget. OSC BSAO cannot issue waivers.
If an agency is unable to pay the full billed amount, a request for a credit/re-bill may be made by sending an email to RevenueAccounting@osc.state.ny.us with the following information:
If a credit/re-bill is approved, agencies are required to submit the original FB voucher as well as the credit voucher at the same time for approval and posting. Any of the re-bills can be submitted as they are completed by the agency. To avoid possible budget exceptions it is advised that the original voucher and credit vouchers be submitted and posted before submitting a re-bill voucher.
In some cases, federal grants allow greater Indirect Cost recoveries than billed on the NYAR0260. When this occurs, agencies must prepare a GL Journal Entry. For that portion of the indirect cost payment that exceeds the assessed amount, agencies should charge the federal project using the indirect cost account code (58801) and use the following chartfield string on the revenue side:
BU – NYS01
Department – Agency’s Department Code
Fund - 10501
Account - 32208 (Reimbursements – All Other)
Statewide Product Code - 300085 (Indirect Cost Recovery).
If an agency needs to make a payment before the quarterly invoices are prepared they must contact OSC BSAO by sending an email to RevenueAccounting@osc.state.ny.us. A manual invoice, calculated based on the accumulated payroll disbursements that have been posted to date for the current quarter, will be created in SFS for the agency to submit for payment. The invoice that is created after quarter end will then be credited by the amount that was paid prior to the quarterly billing.
Access SFSSecure to find job aids containing more information on this topic.
NOTE: For Fringe Benefit and Indirect Cost payment purposes, OSC (as a billing agency) is considered a Phase 1 agency.
Guide to Financial Operations