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.
NOTE: 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:
general_ledger@osc.state.ny.us.
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