Through various initiatives and legislative action, State agencies and departments may be reorganized, consolidated, or expanded; or responsibility for specific projects or programs may be reassigned to other agencies/departments. Such structural changes or reassignments may necessitate reassignment of responsibility for all or some contracts of one Business Unit / Department ID to another Business Unit / Department ID.

The contracting agency must notify the vendor when reassigning a contract to another agency or department. Where a reassigned contract was subject to prior approval by the Office of the State Comptroller (OSC), the reassignment requires OSC approval. A copy of the notification to the vendor must be included in the procurement record submitted to OSC when processing the reassignment, as detailed below.

Process and Document Preparation:

Agencies must concurrently transmit two transactions for agency reassignment of a contract:

1. An amendment transaction against the original agreement that:
   1. modifies the Expire Date in SFS to be the day prior to the effective date of the reassignment; and
   2. reduces the Contract Amount in SFS to equal the total amount of payments made and to be made to the vendor by the original contracting agency. To reduce the Contract Amount in SFS, the State agency must reduce both the funds reservation and contract lines on the original contract.
2. A new contract under the Business Unit/Department ID assuming responsibility for the contract.
   1. The NYS Contract # of the original agreement should be assigned to the new transaction to the extent possible. If it is not possible to use the same NYS Contract #, a NYS Contract # that can be associated to the original contract should be assigned, and/or the agency should establish business processes to record the relationship between the contract transactions.
   2. The contract Begin Date in SFS will be the effective date of the reassignment and the Expire Date will be the end date of the original agreement.
   3. The Contract Amount of the new contract will be the Contract Amount of the original contract minus the Contract Amount of the amended original contract. Agencies must reserve funds for the new contract as detailed in Section 2.C - Contract Funds Reservation of this Chapter.

A Single Transaction Summary (STS) or AC 340-S for each transaction, along with the notification to the vendor of the contract reassignment, must be submitted to OSC for approval if OSC approved the original transaction. For contracts that were not subject to OSC approval (e.g., “T” contracts), agencies follow steps 1 and 2 above and process the contract transactions in SFS using an Audit Type that does not route them for OSC approval. For additional instruction on this topic, visit job aid Audit Types published to SFS Coach. SFS Coach is accessible from the SFS home page after logging in with your SFS user ID and password.

Guide to Financial Operations

REV. 07/03/2015