Cost Principles Table, Category A: Personnel Costs, HRS Chapter 103F

Compensation for personal services currently paid or accrued
• Salaries and
Allowable to the extent that the range is reasonable for the services renderedRequired Documentation:
Schedule detailing total annual salary for each position, computation of each position’s FTE and service site.
Reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, directly to the contract(s). The reports must reflect an after-the-fact determination of the total actual activity of each employee and signed by the individual employee, or by a responsible supervisory official having firsthand knowledge of the activities performed by the employee, that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports. (Note: The State is requests that adequate records supporting the allocation of salaries be maintained and not necessarily detailed timesheets, e.g., accounting for each quarter hour for each employee.)
Personnel policies and procedures governing vacation leave, sick leave, and overtime pay.
• Overtime
• Salary Increases
Allowable with prior approval
Same as above
• Vacation Leave
• Sick Leave
Unallowable payment for leave in lieu of leave not takenUnallowable
• Bonuses
• Severance Pay
• Excessive
• Accrued leave payout
for terminating
Payroll Taxes and Assessments
All Federal and State requirements
• Employer’s portion of FICA, workers compensation, unemployment insurance and temporary disability insurance.AllowableRequired Documentation:
Schedule detailing applicable percentages of statutory ceilings for each payroll tax, insurance and other costs.
• Fines and penalties due to late filing and/or paymentUnallowableUnallowable
Fringe Benefits:
Employers’ portion of health care and retirement benefits
• Health care insuranceAllowable
Required Documentation:
Each benefit should be clearly detailed in the personnel policies and procedures.
• Retirement plansAllowable with prior approvalRequired Documentation:
Each benefit should be clearly detailed in the personnel policies and procedures.
• All costs considered as perquisites (e.g.,
non-wage compensations provided to employees in addition to their normal wages or salaries)