Back to Top
Government Costing

Fringe Benefit - Urbana Champaign

UIUC and UIS Fringe Benefit rates are calculated annually by various university offices: Office of Government Costing, University Accounting & Financial Reporting (UAFR), Risk Management, and other units.

The UIUC Office of Government Costing is responsible for fringe benefit rates proposals as follows:

  • Employee Health Life & Dental rate reconciliation and support
  • Graduate Assistant Health, Dental & Vision rate calculation, reconciliation, and support
  • Termination Vacation & Sick Leave rate calculation, reconciliation, and support (UIUC, UIS, and UA Allocation for all three campuses)
  • Worker's Compensation rate reconciliation and support
  • Support for Retirement (SURS), OASDI, and Over Seas Worker's Compensation rates
  • Preparation, submission, audit support, and negotiation of UIUC and UIS Fringe Benefit Proposal Packages (UIUC)
  • University Communications
  • Maintaining healthy working relationships with contacts including University Administration, Departments/Units, and Federal partners.

A fringe benefit proposal package is submitted to our federal cognizant agency, the Office of Naval Research (ONR) for negotiation and approval. In addition, ONR contracts with the Defense Contract Audit Agency (DCAA) to perform audits of the rate proposals.

Fringe benefit rates change at the beginning of each fiscal year and the rates are fixed with carry-forward. In addition, the rates must be submitted as provisional until DCAA completes the audit and final approval is obtained from ONR after which time final rates are granted. Some of the rate calculations must be performed as late as July in order to be based on an entire fiscal year's expenditures, as a result, proposal submission generally occurs in August. The DCAA audit of the proposal and ONR final approval takes many months and final approval can be as late as June of the next year, therefore accuracy is critical.

The value of fringe benefit rates is significant with annual recoveries from sponsored projects of approximately $41.5 million for UIUC in FY16.

Last Updated: December 7, 2017

Give us feedback about this page Submit Feedback