Budget Certificate Requirements
To ensure timely and complete processing
of Division of the Budget-approved certificates to segregate
appropriations, it is necessary that agencies provide essential
information to facilitate compliance with federal CMIA and
Single Audit reporting requirements. For budget certificates
to be approved for processing in the Central Accounting
System, the following information MUST be provided.
All first-time budget
certificates establishing federal funds appropriations
must be accompanied by the Federal Grant Award Notice
received from the federal awarding agency. Certificates
that segregate beyond these initial levels must be supported
by attached grant award amendments. Reductions in awards
must also be reflected on certificates if necessary.
Segregation levels/disbursements cannot exceed available
grant award authority.
All federal funds budget certificates
must contain the following:
Federal Grant Number (DFAFS
number), or authorization code, usually 12 digits;
Five-digit CFDA number (refer
to Section 5.0300 of this Manual).
Commingling of grant awards
cannot be permitted since there must be a one-to-one
relationship between State appropriation records
and federal grant awards. This is necessary since:
- not all awards expire at the same time,
- commingling awards (within appropriation records) prevents the Office of the State Comptroller (OSC) from lapsing and purging individual
segregations for closed awards within an appropriation, and
- OSC is better able to assist State agencies in the maintenance of federal grant
The first 4 digits and the
last 2 digits (program identifier) of the program code
will be used to account for federal grant funds that
are appropriated as a single program ("A parent" appropriation)
in State appropriation acts. OSC recognizes the need
to account for State appropriations for each grant
award but agencies must also be cognizant of the need
to consistently assign program codes that sum to program
amounts contained in appropriation acts. Therefore,
appropriations of the appropriated agency and any appropriation
record created as a result of statutory transfers or
suballocations of appropriations to another State agency
will be assigned a program code identifier that is the
same as the "A parent" appropriation.
Budget Certificate Processing Delays and Rejections
Failure to provide a valid Federal
Grant Award number and CFDA number on budget certificates
will result in a delay or rejection of the certificate(s)
since OSC cannot create a segregation record without this
information. Since federal financing systems and reports
are based on grant award numbers, it is MANDATORY
that this information be provided on Budget Certificates
in order for OSC to completely and accurately report grant
activity or request federal funds needed to finance State
payments from appropriated federal funds.
Suballocations or Transfers to Other State Agencies
The cognizant State agency is
defined as the agency which applied for and received
federal aid. It is this agency that is responsible for ensuring
full compliance with federal rules and regulations
governing federal grant funds. Suballocations or transfers of appropriations
to other State agencies will never relieve the cognizant
agency of their responsibility for ensuring compliance especially as it relates
to over-disbursement of award authorization balances.
To properly account for suballocations
of appropriations from one State agency to another:
- Suballocations or transfers of appropriations must
be authorized by statute;
- The appropriation program codes for suballocations
must be the same code used by the cognizant
- Agencies receiving suballocations must obtain the fund,
subfund, CFDA number and grant award number from the
cognizant agency and include this information on all
budget certificates related to such suballocation.
Federal Award Changes
Within 30 days of receipt,
State agencies are required to notify the Division of
the Budget- Examination Unit and OSC-Bureau of Accounting
Operations, Appropriation Section of any changes to
the funding of federal programs. Such changes include,
but are not limited to, increase or decrease in federal
funding, disallowances or any change in a program's
scope or objective. Each notification is to be accompanied
by reference to the grant award number and notice from
the federal awarding agency. Any change that will cause
disbursements to exceed award authorizations must be
IMMEDIATELY addressed by the cognizant state agency.
Provided appropriations remain
in force, expired awards will remain in the State's accounting
records until federal notice is received that the award
is closed. After an award has expired no further drawdowns
are permissible but final accounting adjustments or drawdown
adjustments are allowed.
State agencies are required
to reconcile State accounting records to federal award
records (e.g., PMS-272 report) before the Final Report
of Grant Expenditures is prepared and filed with the federal
When the Final Report of Grant
Expenditures is filed with the federal awarding agency
and has been accepted, the award is closed (see Section
5.0110). Upon receipt of notice that the grant award
is closed by the Federal government, OSC will take steps
to lapse and purge all appropriation records containing
the closed award number, if possible.
Fringe Benefits and Indirect Costs
fringe benefit and indirect costs are permissible charges
to federal grants.
Annually, the Division of the
Budget (DOB) provides the OSC with fringe benefit and
indirect cost rates to be applied to personal service
expenses paid from federal fund appropriations. OSC will
issue an Accounting Bulletin providing the fringe benefit
and indirect cost rates provided by DOB.
The rates must be used by State
agencies for budgeting and charging grant programs.
Quarterly, OSC will issue a Fringe
Benefit/Indirect Cost Assessment (CTL610), to
State agencies with programs appropriated outside the
General Fund. Quarterly personal service
expenses are multiplied by the applicable fringe benefit
and indirect cost rates to arrive at an assessed amount.
Such assessments are to be reviewed by State agencies
and paid within 30 days of receipt.
Financing Federal Grants
In many instances, the State
requests federal funds, through integrated grant and payment
management systems (IGPMS), based on grant award number.
To facilitate the timely request of federal funds, special
accounting reports have been designed and are provided
to OSC personnel to report prior day's disbursements sorted
by fund, subfund and award numbers. Inaccurate or incomplete
award numbers contained in State segregation records prevent
OSC from requesting federal funds needed to finance State-administered
Where prior arrangements have
been made, OSC will act as agent for the cognizant state
agency to obtain reimbursement of state disbursements
eligible to be financed with federal grant funds.
Under some circumstances the cognizant State agency
maintains the responsibility for requesting Federal reimbursement
for program spending. In those instances, the State agency
must ensure that the temporary loan authority has been
granted which allows the use of State funds for Federal
program spending with the exception that the Federal
reimbursement will be requested in a timely manner.
State requests for reimbursement
will be processed daily using federal financial management
systems developed and provided by the Federal government.
Since most federal programs
are funded, or will soon be funded, by drawdown requests
processed through integrated grant management and financing
systems, it is essential that State agencies understand
the impact that agency-generated expenditures (including
payroll charges)have on reported grant disbursements.
State programs that are financed partially by State and
Federal funds must be split charged' at the time
voucher or payroll payments are made. It is never an acceptable
practice for such payments to be charged 100% to federal
funds since these transactions will automatically generate
a request for federal funds from the U.S. Treasury.
Once these federal funds are
received and credited to the State's accounting records,
any subsequent journal voucher adjustment that reduces
grant award disbursements will increase the federal funds
cash balance resulting in a State CMIA interest liability
retroactive from the date of original payment to the date
the funds are spent or returned to the U.S. Treasury.
OSC procedures require that
segregation balances NEVER exceed the grant award authorization.
Payroll charges that exceed grant award segregation
balances cannot be financed by drawdown through federal
payment systems. Therefore, due diligence must be exercised
by State agencies when assigning employee pools to federal
fund cost centers to ensure that overdrawn personal
service segregations do not occur. Failure to abide
by this directive may result in OSC action to align
Central Accounting System federal segregations and/or
disbursements with award authorizations.
Except for the Unemployment Insurance
Benefit Fund (481), all appropriated federal grants will
be accounted for within the Special Revenue Fund-Federal
or Federal Capital Projects group of accounts. Within
each fund, separate subfunds will be assigned by the OSC's
Bureau of Accounting Operations, General Ledger Section
to facilitate drawdowns from the U.S. Treasury to finance
disbursements from appropriated federal programs and perform
compliance audits related to the cash management of federal
|| Fund Title
||Federal USDA Food and
Nutrition Services Fund
||Federal Health and
Human Services Fund
||Federal Education Grants
||Federal HHS Block Grant
||Federal Operating Grants
||Federal Capital Projects
||SUNY Federal Direct Lending
Occupational Training Fund
||Federal Job Training Partnership
The life of most federal grant awards is limited and
terminates on September 30th of the fifth federal fiscal year after the period
of availability. For example, a federal grant award with a one-year grant period
of October 1, 1993 - September 30, 1994; expired on September 30, 1999 (five
years from September 30, 1994).
By March 31st each year,
OSC strongly recommends that State agencies make every
effort to disburse and/or adjust all unspent award
authorization and segregation balances for all awards
scheduled to be terminated. This will allow sufficient
time for final reports and closing documents to be
reviewed and approved by the Federal government before
the awards are closed on September 30th.
Except for awards for which a specific federal law extends
the availability for expenditure of obligated balances, any undisbursed balances
of federal grant awards are withdrawn by the federal awarding agency and the
award is considered expired.
In some instances the life
of a federal award may be more or less than M-Year
limits,and is set at the discretion of the awarding
Agencies should check with
their federal program liaison to confirm the award
period to ensure that federal funding authorizations
are not withdrawn prematurely.
OSC Confirmation and Reporting
Annually, during the first calendar quarter, the OSC's
Bureau of Accounting Operations will confirm with State agencies the accuracy
of the CFDA numbers assigned to segregation records within the Central Accounting
System. Agencies are required to report any discrepancies or changes to OSC's
Bureau of Accounting Operations within 30 days of the confirmation request.
Monthly appropriation/segregation-based CAS reports
contain information relating to the status of State appropriations. These reports
also include the grant award number and CFDA number assigned to each federal
fund segregation record. On receipt, agencies must review these reports for completeness
and accuracy and report errors or omissions to OSC's Bureau of Accounting Operations
immediately upon discovery.
OSC will provide State agencies
with monthly or quarterly reports of state spending
from federal award authorizations.
The Federal government will provide OSC with grant award
authorization balances which will be matched to the State's appropriated balances
for each grant award, as identified by federal grant award (DFAFS) number. State
agencies will be notified of any instance(s) where State appropriated balances
exceed the federal grant award authorization balance. State agencies are responsible
for providing information to OSC to support the level of appropriation otherwise
reducing segregations of such appropriations to the award authorization level
will be necessary.
As more and more federal
grant authorization records are provided to OSC electronically,
it will be OSC's policy to immediately unallocate any
segregation balance, as appropriate, that exceeds the
award level to ensure that State spending cannot exceed
that which the Federal government has agreed to finance.
When such action becomes necessary, the cognizant State
agency will be notified and requested to follow-up
with the federal award agency on reason(s) why the
award authorization was reduced. If the award authorization
is restored in the Federal Integrated Grant and Payment
Management System, then the appropriation will be re-allocated
Retention of Records
State agency retention and access to records must be
in full compliance with all applicable federal laws, rules and regulations (e.g.,
for Department of Health and Human Services, see 45CFR 92.42). Agencies should
refer to the General Retention and Disposition Schedule for New York State Government
Records as published by the New York State Archives and Records for guidance
on minimum retention periods for other fiscal records, purchasing/claims and
payments, revenue and collections, accounting reports and bank transactions.
Records retention and disposition schedules for State government agencies are
published in the State Education Department's website at :
In addition to any federal requirements, OSC suggests
the records retained include:
1. A copy of the grant application.
2. The grant award document.
3. All grantee requests for funds.
4. Copies of grant expenditure and disbursement records.
5. All notice of grant adjustments.
6. Copies of all correspondence related to fiscal matters.
7. Documentation of final acceptance by grantor and closure.
8. Any other information that may be deemed relevant in an audit.
Central Accounting System Reports
Frequent reports will be provided to State agencies
to assist in the monitoring of the status of federal grant awards. In addition,
reports will be made available to agencies as a result of the matching of federal
award authorizations to State appropriated balances by federal grant award numbers.
Following is a list of reports provided to State agencies or used by OSC to manage
State appropriations and federal grants:
- Expenditure based
||Cost Center Status by Segregation
||Federal Report of Disbursements by
Agency and DHHS Grant Award
||Federal Block Grants - Disbursements
|| Federal Report of Disbursements
by DHHS Grant Award (OSC use)
||Federal Report of Disbursements by
Education Grant Award
||Federal DHHS and Education Quarterly
Report of Disbursements by Fund/Subfund and Grant
||Federal Disbursements by Federal
Index (CFDA) Number