To notify agencies of revisions to the following Sections of the New York State Accounting System User Procedures Manual regarding new accounting requirements for refunds received from federal grants after the Final Grant Award Status Report has been filed with the Federal Program Agency:

• Refund of Appropriation: Volume IV, Section 5.0100
• Accounting for Federal Grants – Refunds, Credits and Returns: Volume XI, Section 5.0500

Throughout the life of a grant award, Grant Award Status Reports are required by all, or virtually all, Federal Program Agencies. Once the program objectives have been met or the term of the award has expired, the grantee State Agency must prepare a Final Grant Award Status Report (Final Report) to be filed with the Federal Program Agency. The Final Report MUST contain award expenditures and disbursements that are reconciled and are in agreement with records maintained in the State's Central Accounting System. Once the Final Report is transmitted to the Federal Government, no further expenditures, refunds or credits to the related State appropriation records are permitted. This ensures that the State's grant award records remain in alignment with the federal grant management system and ultimately the payment management systems at the time the award is closed.

It is required that any refunds received on a grant after the Final Report is filed with the Federal Program Agency, be deposited with a Report of Monies Received (AC909) and be accompanied with a Special Charge Voucher (AC916) to effect a refund to the US Treasury. These procedures are available in Volume XI Section 5.0500.

Since terms and conditions can vary for each individual grant awarded to NYS relating to refunds received after the expired grant date, it is necessary to expand the Refund of Appropriation Expenditure Procedures for Federal funds.

In some instances, when the Final Grant Award Status Report has been filed and the award is closed, the Federal awarding agency permits recovered funds to be credited to an open year award and used for approved program purposes. Refunds will be processed as an appropriation credit to an ‘active' federal fund State appropriation provided for identical program purposes when the State agency:

• Provides a copy of the federal authorization that permits recovered funds (attributable to a closed award) to be applied as a refund credit to current year grant award authorizations and used for program purposes, and
• Ensures that the State appropriation language permits refunds, credits or audit disallowances to be credited, OR
• Provides a special certification in the basis for the requested refund as follows:

“The requested grant award refund represented by this document is permissible under Federal and State rules, regulations and/or statutes governing the receipt and disposition of federal grant funds.”

 

Federal Grant Refund Procedures:
Please contact the Bureau of Accounting Operations, General Ledger Accounting Section – Federal Grant Payment Management Unit at (518) 486-1241 for assistance.

Refunds of Appropriation Expense (AC1286)
Please contact the Bureau of Accounting Operations, Revenue Accounting /Processing Section at (518) 474-4018 for assistance.