SUBJECT:	FY 2002/03 Fringe Benefit Rates
DATE:	June 13, 2002

The Department of Health and Human Services (DHHS) has now formally approved our federal fringe benefit rates for FY 2002/03. The negotiated rates for FY 2002/03 and the projections through FY 2004/05 are summarized below. These fringe benefit rates should be used for budgeting and long range planning purposes, as well as when preparing grant applications that cross fiscal years.

	Monthly Staff	House Staff	Hourly Staff	Students
FY 02/03 Budget-Non Federal	23.4%	19.7%	22.2%	7.7%
FY 02/03 Budget-Federal	21.6%	19.7%	21.2%	7.7%
FY 03/04 Projected-Non Federal	23.6%	21.4%	23.5%	7.7%
FY 03/04 Projected-Federal	21.8%	21.4%	22.5%	7.7%
FY 04/05 Projected-Non Federal	24.1%	21.4%	24.2%	7.7%
FY 04/05 Projected-Federal	22.4%	21.4%	23.3%	7.7%

Two sets of fringe benefit rates are specified for each fiscal year. The "Federal" rates will be used for federal grants and contracts and for Durham Regional Hospital and Raleigh Community Hospital. The "Non-Federal" rates will be used for all other entities including non-federal grants, contracts, departments, etc. The differentiation in fringe benefit rates reflects the elimination of Federal participation in the reimbursement of the tuition grant fringe benefit program for federally funded grants and contracts and for Durham Regional Hospital and Raleigh Community Hospital.