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New York State Accounting System User Procedures Manual

Volume Name
Volume XI Date
Section Name
Accounting for Federal Grants - Statutory Operating Transfers

Transfer Authorizations

     Pursuant to 4 (1) of the State Finance Law, no money shall be paid from any fund under the management of the state, or any agency or officer thereof except in pursuance of an appropriation by law. Section 4 (5) also provides that financial resources may be transferred from one fund to another with specific statutory authorization for such transfer. These transfer authorizations may be contained in appropriation acts or within bills that are enacted with the budget to implement various provisions of the appropriation acts. These bills are commonly referred to as "Omnibus Article VII language bills" and provide the authorizations necessary to transfer federal grant funds to reimburse other State funds for costs associated with the administration of federal grant funds. These costs include, but are not limited to: personal services, department operations and employee fringe benefits.

Transfers to Other Funds

     In order to preserve federal grant reporting requirements, statutory transfers from federal funds will be recorded in the federal grant fund as an Operating Transfer (transfer object code 38000). Furthermore, since the CAS reports all grant award spending (including transfers) by grant award and CFDA number, special accounting records will be created to accommodate the legislatively authorized transfers. These accounting records are referred to as "Source 9" accounts which denotes that the transfer authorization is provided in language bills as opposed to appropriation acts which carry a Source 1 designation.

Journal Transfers (AC22) are used to record Operating Transfers. Debit object 38000 in the federal fund and credit object 37FFF in the receiving fund. (FFF represents the fund code from which the transfer is being made; e.g., a transfer from Fund 265 would be recorded in the receiving fund as 37265.)

Request for Transfer Accounts

     Once it is determined that a statutory transfer account authorization is provided and needed, agencies must submit a written request to the Division of the Budget to approve the creation of the accounting records needed to transfer federal grant funds to another State fund. If approved, DOB will forward the request to the OSC- General Ledger Accounting Section so special accounting records can be created. The following information must be provided in the request to ensure timely and accurate establishment of the accounting records:

Chapter, section, year and law authorizing the transfer;

Federal fund/subfund number and program name from which the transfer will be made;

State fund/account number into which the transfer will be made;

Federal grant award (DFAFS) number;

CFDA number; and

Total transfer amount authorized in statute.

Confirmation of Transfer Accounting Records

     Once the special accounting records are created to record an Operating Transfer from federal grant funds, the OSC-General Ledger Section will provide the cognizant State agency with written confirmation and unique cost center account codes to be used to record such transfers.

     Questions concerning the establishment of transfer authorizations should be directed to the OSC, Bureau of Accounting Operations, General Ledger Section at 474-7398 or by e-mail: