New York City Board of Education

Review of 1994 Fringe Benefit Rates

This review conducted on behalf of OSC's Bureau of State Aid determined whether the fringe benefit rates used by BE to prepare its claims to the Federal and State governments for reimbursable programs were correct. Listed below is a comparison between the claimed and audited fringe benefit rates for each of the payroll categories: Payroll Categories Per Claim Per Audit Difference Annual Pedagogic 30.26% 28.14% -2.12% Hourly and Per Diem 10.28% 10.08% -0.20% Non-Pedagogic 30.79% 32.28% 1.49% Significant changes were made to two fringe benefits rates: Annual Pedagogic (teachers) and Non-Pedagogic (administrators and paraprofessionals) categories. The former was reduced due to change in the method used to determine the pensions costs from a fixed percentage based on the pension cost for the current year and the prior year's payroll costs to actual pension costs. The Non-Pedagogic rate increased due to combination of an error in BE's calculation and the same change in the method for calculating pension costs. A-9-96