FY26 fringe benefit rate approval delay
DHHS Cost Allocation Services (CAS) approval of the FY26 fringe benefit rate proposal is still outstanding.ÌýÌý
If approval is not provided by the close of FY26 Period 1 (August 4, 2025), here is what will happen:Ìý
- Any FY26 proposed rate that is lower than FY25 approved rate will be effective July 1, 2025. (Since the rate is lower, we do not require CAS approval to make this change.)Ìý
- Any FY26 proposed rate that is higher than FY25 approved rate will remain at the FY25 approved rate (provisional). Once we receive CAS approval for the new rates, a catch-up expense adjustment will be processed to reflect a July 1 effective date.Ìý
Please consider the impact this has on your ST balances and funding. CCO will communicate updates and approval with campus. If you have questions, please contact Russ Jeans, CCO Director of Accounting (russell.jeans@colorado.edu).Ìý
RFS will continue to work with departments on award closeouts during this period. Final invoices and draws will be based on the rates in the system. When the new rate agreement is received, an assessment can then be performed to determine the impact on charges and if any amount due can be recovered from the sponsor. If you have questions, please contact your grant accountant.
If the FY26 rates are not approved in time for July close, a FT Faculty position would remain at the FY25 provisional rate of 31.0% in July 2025. If the rates are approved in August 2025, in August the July 2025 rate would then be adjusted to 33.1% and August 2025 would be processed at 33.1%, effectively catching up the cumulative FY26 fringe benefit expense to the FY26 rates.
| Fringe Benefit Pool | FY25 Approved | FY26 Proposed |
|---|---|---|
| Part-time Professional Exempt & Research Faculty & Temporary Staff | 14.6% | 14.2% |
| Hourly | 1.8% | 1.6% |
| Athletic Director and Coaches | 16.5% | 13.3% |
| Regular Faculty | 31.0% | 33.1% |
| FT Professional Exempt & Research Faculty & Perm Classified All, except LASP | 40.0% | 40.8% |
| Student Faculty | 11.4% | 12.2% |
| Police Officers (1) | 35.7% | 40.8% |
| LASP FT Prof Exempt & Research Faculty & Perm Classified | 38.9% | 39.9% |
(1) In FY26 Police Officers will roll into the FT Prof Exempt FB pool | ||