Update on FY23 fringe rates

December 2022 Update

We are still waiting for our FY23 fringe benefit rates to be approved by DHHS-CAS. Until the FY23 fringe benefit rates are approved, we will continue to charge our FY22 rates for FY23 payroll. A fringe benefit encumbrance will be booked by the cost accounting team.

An accrual journal entry for the encumbered benefits may be necessary prior to the submission of final invoices and final financial reports. Your grant accountant will determine whether an accrual journal entry on the fringe benefit encumbrance is necessary. Guidance on the process to complete a fringe benefit accrual journal entry on sponsored projects was distributed to the research administration email list on November 14.

If you have questions, please contact the grant accountant assigned to your award or the cost accounting manager.

August 2022 Update

Each December, we submit our proposal for our annual fringe benefit rates to DHHS-CAS for federal approval, with an anticipation of having them approved prior to the new fiscal year. Occasionally, this approval is not received in time, as is the case this year.

How will this impact you? We will continue to use our FY22 rates for FY23 payroll, but also book an encumbrance for the difference between FY22 rates and the FY23 proposed rates. Once we have approval for our rates, we will reverse the to-date fiscal year allocations, repost the fringe rate allocation at the FY23 approved rates, and reverse the encumbrance journal entry.

No action is needed at the departmental level.