Office of Alcoholism and Substance Abuse Services (OASAS)

Office of Mental Health (OMH)

Office of Mental Retardation and Developmental Disabilities (OMRDD)

State Education Department (SED)

 

Note: Service providers which operate programs certified by OASAS, OMH and/or OMRDD are required to complete a CFR.

 

Core: This section includes Schedules CFR-i through CFR-6. These schedules are required by each New York State agency. (Exception: CFR-iii is not required by SED.)

 

Claiming: This section includes Schedules DMH-1 through DMH-3. These schedules are used to report expenses and revenues for service providers receiving Aid to Localities funding. Aid to Localities funding may be received through a direct contract with a DMH State Agency (OASAS, OMH or OMRDD) and/or a local contract with a county Local Governmental Unit (LGU).

 

Supplemental: This section includes schedules that are specific to each New York State agency. (Refer to the Supplemental Schedule sections of this manual (Sections 25.0 through 33.0) to determine which schedules your agency is required to complete and submit.)

 

The CFR Manual can be accessed via the Internet by visiting the New York State Education Department’s homepage at Uniform Resource Locator (URL) address "http://www.nysed.gov" and selecting "Program Office Listing" and then selecting "Rate Setting Unit" or by connecting directly to the Rate Setting Unit’s homepage URL address "http://www.oms.nysed.gov/rsu/home.html ". The following information is available at this time:

CFR Manuals, CFR Forms and 30-Day Extension Request Forms

Approved CFR Software Vendors

Information on CFR training sessions

 

Consolidated Fiscal Report Document Submission Matrix

Please refer to .PDF version of manual to see Submission Matrix

New York State Office of Alcoholism and Substance Abuse Services

Note: In addition to their Internet submission, service providers funded through a direct contract with OASAS are expected to submit paper copies of CFR-i, CFR-iii, DMH-2, DMH-2A, DMH-3 and a final State Aid Voucher (AC-1171) to the OASAS Bureau of Financial Administration and Support Services.

 

New York State Office of Mental Health

New York State Office of Mental Retardation and Developmental Disabilities

Note: If Aid to Localities funding is contracted through the Local Government Unit (LGU), submit one copy to that (those) LGU(s).

 

If funded and/or certified by OMRDD, submit one copy to the OMRDD Developmental Disabilities Service Office (DDSO) or New York City Regional Office in addition to the above requirements.

 

New York State Education Department

If Aid to Localities funding is contracted through the NYC Department of Health and Mental Hygiene (DOHMH), submit a paper copy of the CFR to the NYC DOHMH.

 

Internet Submissions: To transmit your agency’s CFR via the Internet, please access this OMH website: http://www.omh.state.ny.us/omhweb/finance/main.htm and follow the appropriate links. The data from your agency’s CFR submission will be saved to a central repository maintained by the OMH and forwarded to each applicable funding State Agency. For example, if your agency is funded by OMRDD and SED, you would submit your CFR by accessing the OMH website and following the appropriate steps. After a successful submission, your agency’s CFR data will be transmitted to OMRDD and SED. Generally, the information will be forwarded to each funding State agency on a daily basis.

A service provider receiving funding only from the State Education Department (and not from OMH, OMRDD or OASAS) pursuant to Article 81 or 89 of the Education Law will use the reporting period of July 1 through June 30.

 

A service provider receiving Aid to Localities funding should consult with their County Local Governmental Unit (LGU) or their funding NYS Agency to determine the proper reporting period.

 

A service provider receiving Aid to Localities funding from a county whose reporting period is not the same as the service provider's reporting period as determined by their corporate headquarters geographic location, will use the reporting period as determined by the organization's corporate headquarters geographic location. However, an abbreviated CFR (see Section 2.0) must also be submitted covering the reporting period used by the funding county. Please contact the funding DMH State Agency(ies) on which type of CFR must be submitted.

 

For example: A service provider that has its corporate headquarters in Manhattan must submit their CFR on the July 1 through June 30 reporting period. If the service provider receives Aid to Localities funding from Westchester County, they must also submit an abbreviated CFR on the January 1 through December 31 reporting period for the programs funded by Westchester County.

 

A service provider receiving funding for Member Items (Special Legislative Grants) must complete an Abbreviated or Mini-Abbreviated CFR corresponding to the reporting period stated in the contract. Also, if the service provider provides other services that require a Full, Abbreviated, Article 28 Abbreviated, OASAS-Only Abbreviated or Mini-Abbreviated CFR, the Special Legislative Grant's expenses and revenues must be reported in a separate column and included in that Full, Abbreviated, Article 28 Abbreviated, OASAS-Only Abbreviated or Mini-Abbreviated CFR.

 

All OASAS service providers which receive a cost based Medicaid rate or foster care rate from OASAS shall file on the calendar year basis.

 

Note: Claiming schedules DMH-2 and DMH-3 may be completed on any method of accounting but must be consistent with the service provider’s approved budget and must be consistent from year to year. Service providers electing to change their method of accounting must notify each applicable DMH funding agency.

 

Note: Service providers must have approval from the funding state agency in order to change their method of accounting from the prior year's method.

 

Accrual Method of Accounting - The accrual method of accounting records revenues when earned or when levies are made and records expenditures at the time they result in liabilities for benefits received, notwithstanding that the receipt of the revenue or the payment of the expenditure will take place, in whole or in part, during another accounting period.

 

Modified Accrual Method of Accounting - A modified accrual method of accounting treats revenues and expenditures as follows:

 

Revenues are recorded when received except for the following.

 

1. Those revenues which are susceptible to accrual. Revenues are susceptible to accrual if they are measurable and "available" to finance the operations of the current year. "Available" means collectible within the current accounting period or soon enough "thereafter" to be used to pay liabilities of the current period. Generally, "thereafter" should not exceed 60 days.

 

2. Those revenues of a material amount that have not been received at the normal time of receipt. Revenues of a material amount ordinarily recorded on a cash method will be accrued if receipt is delayed beyond the normal time of receipt.

 

Expenditures are recorded when incurred. Compensation due to employees and related fringe benefits at the end of the year will be accrued. Liabilities for retirement costs of public retirement systems will be recorded as an expenditure when due to that retirement system.

 

Note: The modified accrual method of accounting has been prescribed for county governmental units in the State of New York by the Office of the State Comptroller.

 

Cash Method of Accounting - The cash method of accounting records revenues when received and records expenditures when paid. Although this method of accounting is recognized for use by DMH service providers receiving Aid to Localities funding, caution is advised in its use because it may cause a distorted view of the fiscal activity of an agency and does not provide comparable fiscal reports from period to period.

CFR-1 Program/Site Data

CFR-4 Personal Services - Exception: Agency Administration (See CFR–4 instructions in Section 16.0)

CFR-4A Contracted Direct Care and Clinical Personal Services

 

Program types are specified by law, regulation, policy or programmatic approval. Program types may be determined by a service provided to a particular population, where the service or group of services is provided, the method of delivery or the function performed. Valid program types specific to each State agency are defined in Appendices E through H of this manual. For SED providers, all programs are reported by program type.

 

Note to OMH service providers: Programs should only be reported discretely if they are operated as individual programs and are not part of a larger program. Additionally, a program reported discretely on the approved CBR must also be reported discretely on all other fiscal documents submitted to OMH and the Health Department. For example, providers may not report a case management program’s expenses and revenues as a discrete program on one document, but include those expenses and revenues as part of a clinic treatment program on a different document.

 

A program/site (site) is a specific geographic location defined by the name, address, and certified capacity as designated by its operating certificate or license, or in the case of a Medicaid funded program, also by the Medicaid Provider Agreement. Generally, each program/site must be defined in approved CFR software before expenses, revenues or statistics can be entered. Service providers should refer to page 13.2 of CFR-1 instructions to determine the appropriate program/site identification number for each program/site.

 

* See exceptions to program/site reporting listed on the following pages.

 

** See exceptions to program type reporting in the instructions for each schedule.

 

Note: Service providers who operate a transportation department must report the associated transportation costs as a separate program/site using program code 0670 (Transportation).

 

For all contracted services, whether the contract is between a service provider and a county (Aid to Localities) or between a service provider and OASAS (direct contract) each budgeted column is to be reported as a program/site.

 

Supportive Living community residence programs with multiple sites should be combined into one column.

 

Outpatient additional locations that do not have separate Program Reporting Unit (PRU) numbers should be combined with the main site.

 

OMH Exceptions to Program/Site Reporting (on CFR-1, CFR-4, CFR-4A, OMH-1, OMH-2 & OMH-3)

OMH Satellites

A satellite is defined as a physical extension of a program and does not have its own separate operating certificate. Do not report these satellite programs on a site specific basis. The expenses, revenues, and units of service will be included in the certified program.

 

OMH Start-up

OMH programs having a start-up component (as approved on their budget) will treat the start-up as a separate program and report revenue and expenses in the column adjacent to the program column that received the start-up funds. For OMH start-ups, enter "A0" as the program code index. Example: 6070 A0. If there are two or more start-ups for a particular program type, enter "A1" for the first occurrence, "A2" for the second occurrence, etc.

 

CBR vs. CFR reporting

OMH programs should only be reported discretely if they are operated as individual programs and are not part of a larger program. Additionally, a program reported discretely on the approved Consolidated Budget Report (CBR) must also be reported discretely on all other fiscal documents submitted to OMH and the Health Department. For example, service providers may not report a case management program’s expenses and revenues as a discrete program on one document, but include those same expenses and revenues as part of a clinic treatment program on a different document.

 

OMH program/sites that are split by funding source (i.e., reinvestment versus non-reinvestment funding) on the CBR may be split by funding source ONLY on the claiming schedules (DMH-2 and DMH-3) NOT on the cost reporting schedules (CFR-1 through CFR-6).

 

The columns reported on the claiming schedules must match the columns reported on the budget. This may result in single columns on the core schedules being split into multiple occurrences on the claim. Please refer to software instructions on the creation of additional sites on schedules DMH-2 and DMH-3 to accommodate these multiple occurrences.

 

OMH Exceptions to Program Type Reporting on Schedules DMH-1, DMH-2, DMH-3

Permanent Housing (program code 1070);

Family Based Treatment (program code 2040);

Transient Housing (program code 2070);

Supported/Single Room Occupancy (program code 5070);

Treatment/Congregate (program code 6070);

Support/Congregate (program code 6080);

Community Residence, Children & Youth (program code 7050), and.

Community Residence/Single Room Occupancy (program code 8050).

 

All programs are reported by program type.

 

Infant/toddler (0-2) programs funded through the Department of Health must be reported as SED programs throughout the CFR. All infant/toddler programs should be aggregated and reported in one column using program code 9300. Refer to appendix H for a program description. Calendar year filers must separate this program into 2 six-month segments.

 

For service providers operating approved 2.5 hours per day special classes in integrated settings, data related to preschool students with disabilities and preschool students without disabilities should be reported as a single column (2 six month columns for calendar year filers) using program code 9165 (program code range is 9165 - 9169). For service providers operating approved special classes in integrated settings for more than 2.5 hours per day, data related to preschool students with disabilities and preschool students without disabilities should be reported as a single column (2 six month columns for calendar year filers) using program code 9160 (program code range is 9160 - 9163). If there is one integrated program approved for both 2.5 hours and greater than 2.5 hours per day, the service provider must separate the data on the CFR between the two time periods as program codes 9165 and 9160. For all integrated programs, non-disabled revenues must be reported as either "Participant Fee" revenue on Schedule CFR-1, Section C, line 69, or, if Universal Pre-K revenue, on CFR-1, Section C, line 94. Non-disabled student FTEs should be reported on line 100 or line 101 of Schedule SED-1, as applicable.

 

Day Care expenses in excess of the integrated program should be reported in a separate column (program code 9164). Calendar year filers must separate this program into two six-month segments.

 

Expenses and revenues and FTE enrollment for approved 1:1 teacher aides (preschool and school age) must be reported as a separate column (program code 9230). Calendar year filers must separate this program into 2 six-month segments.

 

Please note: Salary and fringes of the 1:1 aide(s) and ratio value allocation of agency administrative costs are the only expenditures required to be reported in this program code. An allocation of "Other Than Personal Services (OTPS)" is not required for this program.

 

Expenses relating to projects funded or anticipated to be funded through bonds issued through the New York State Dormitory Authority as authorized by Chapter 698 of the Laws of 1991, Chapter 737 of the Laws of 1988, or Chapter 407 of the Laws of 1989 must be reported as a separate column (program code 9250). Calendar year filers must separate this program into 2 six-month segments.

 

For service providers operating approved 2.5 hours per day special class segregated preschool programs, data should be reported as a single column (2 six month columns for calendar year filers) using program code 9115 (program code range is 9115 - 9119). For service providers operating approved special class segregated preschool programs in excess of 2.5 hours per day, data should be reported as a single column (2 six month columns for calendar year filers) using program code 9100 (program code range is 9100 - 9109). If there is one special class segregated preschool program approved for both 2.5 hours and greater than 2.5 hours per day, the service provider must separate the data on the CFR between the two time periods as program codes 9115 and 9100. If a service provider operates a 2.5 hour morning session and a 2.5 hour afternoon session, with one program approval, the expenses, revenues and FTE enrollment must be reported in a single column. Calendar year filers must separate this program into 2 six-month segments.

 

For service providers operating programs funded through the Agency for Child Development (ACD), the revenues, expenses and related statistical data must be reported as a separate column (program code 9164). Calendar year filers must separate this program into 2 six-month segments. ACD revenues must be reported on CFR-1, line 94, "Other". Since day care and special education services are separate programs with distinct funding streams, expenses must be directly charged to either SED or ACD. All costs that cannot be directly charged to either funding source must be allocated with justification for the allocations. Expenditures for staff who are funded through SED and ACD should be based on actual hours of service. Enrollment for SED and ACD programs must be separately reported on schedule SED-1. SED enrollment must be in accordance with Section 175.6 of the Regulations of the Commissioner of Education. ACD enrollment should equal the day care contract capacity. New York State regulations specify that full-time day care service is a minimum of six hours per day. Preschool students with a disability who are enrolled in special class programs or special class in integrated settings programs are not considered to be receiving day care services during the hours of the special education program. These children, if ACD - eligible, may receive day care services before and/or after the special education classes. The general education students in an integrated setting are considered to be receiving ACD services during the instructional day.

 

SED providers operating both VESID programs and SED rate-based programs (school age and/or preschool) must report all VESID programs under other programs, column 7, of the CFR-2. The operating costs for these programs must also be reported under other programs on the CFR-3 line 48. This relates to VESID programs previously reported under program codes 9680 and 9695.

 

Providers funded by both DMH and SED and which operate VESID programs (and NO school age and/or preschool programs), must report all VESID programs under other programs, column 7, of the CFR-2. The operating costs for these programs must also be reported under other programs on the CFR-3, line 48. This relates to VESID programs previously reported under program code 9695. Please note that the CFR is NOT required to be filed with SED, but is required by DMH. Please do not submit this CFR to SED.

 

Legislation has been signed into Law that permits Article 28 clinics that have a less-than-arm’s length relationship with an approved preschool (Section 4410 of Education Law) provider to bill Medicaid for preschool services. The actual full cost of the IEP related services incurred by the clinic must be reported on the New York State Consolidated Fiscal Report (CFR) in the related preschool cost center in which the student is placed. The associated Medicaid revenue must be reported in the same manner.

 

Universal Pre-K: The following pertains to Early Childhood programs for eligible 4 year olds provided at school and non-school sites pursuant to Chapter 436 of the Laws of 1997. If your agency operates Universal Pre-K in conjunction with a special class in an integrated setting program (program 9160 or 9165), report the revenues and expenses for Universal Pre-K in the same column(s) as 9160 and 9165. Revenues for Universal Pre-K should be reported as "Other Revenues" (CFR-1, line 94) and identified as such. Report non-disabled enrollment for Universal Pre-K on line 101 of Schedule SED-1. If the Universal Pre-K program is not operated in conjunction with a special class in an integrated setting program, report the expenses and revenues for this program in Column 7, "Other Programs", of Schedule CFR-2.

 

Federal funds to supplement the education of individuals with disabilities were previously disbursed through the New York State Education Department via a grant process. These funds and related expenditures were previously reported in discrete cost columns within the program code range 9800-9810 (Federal Grants).

 

Effective with the July 1, 2000 to June 30, 2001 reporting period, revenues are awarded from local education agencies (LEAs) pursuant to Sections 611 and 619 of the Individuals with Disabilities Education Act (IDEA). These revenues and related expenses must be reported on the full accrual basis of accounting. The expenses should be direct charged or allocated to the program(s) receiving the benefit. Revenues must be reported in the same manner as the related expenses. The revenue should be specifically identified on CFR-1, line 94 ("Other Revenue").

 

Approved school-age programs that have received funding from the Excessive Teacher Turnover Prevention Program should report these revenues on CFR-1 line 80 as "State Grants" in the discrete program cost column that includes the salary of the targeted teacher positions.

 

For manually prepared mini-abbreviated and abbreviated CFR submissions (OMRDD service providers only):

 

Please note: OASAS and OMH expect that all CFR Types (Full, Abbreviated, Article 28 Abbreviated and Mini-Abbreviated) will be completed using approved software and submitted via the Internet. OMRDD and SED require software usage for all full CFR filers.

The CFR submission must use the CFR forms that are applicable to the cost reporting period.

 

The CFR may be typed or hand written in ink. If the document is determined to be illegible, it will be returned to the provider as an unacceptable submission.

 

All rows and columns must foot and crossfoot.

 

Do not use dollar signs.

 

Round all cents to the nearest whole dollar (e.g. 47.49 = 47, 47.50 = 48). Exception: The Gross and Net Cost per Unit of Service on the DMH-3 which must be rounded to two decimal places.

 

Round Staff FTE's to three (3) decimal places (e.g. 4.5344 = 4.534, 4.5335 = 4.534).

 

Label program/sites in consistent column order within State agency on all applicable schedules. Program/sites must be assigned the same column number throughout all schedules and all pages within each schedule. Additional program/sites must be assigned the next sequential column number on additional pages when necessary.

 

Please note that figures on many CFR schedules are carried forward to other CFR schedules; changes to one schedule may affect the figures on other schedules (i.e., OMH units of service reported on OMH-1 are carried forward to Schedules CFR-1 and DMH-1).

 

All required schedules per the matrices in Section 2.0 must be submitted. If the schedule is not applicable, please note this on the schedule.

 

Number the pages of the CFR consecutively.

 

The recommended order of completion of the core CFR schedules is as follows:

 

You can get to the OMH webpage using: www.omh.state.ny.us or go directly to the OMH Finance homepage using: www.omh.state.ny.us/omhweb/finance/main.htm

 

You can get to the SED homepage using: http://www.nysed.gov (click on Program Office Listing, then on Rate Setting) or go directly to the Rate Setting Unit’s homepage using: http://www.oms.nysed.gov/rsu/home.html.

 

Question: When submitting a year end claim for net deficit funded programs, can total expenses include depreciation?

 

Answer: Yes, if the provider is claiming on the full accrual basis of accounting. If a service provider has used a different method of accounting in previous years and has expensed the full purchase amount of a depreciable asset (asset with a unit cost of $1,000 or more and a useful life of 2 years or more), the provider cannot claim the depreciation on this asset. Refer to Appendix O.

 

Question: When submitting a year end claim for net deficit funded programs, is the ratio value method of allocating agency administrative expenses required?

 

Answer: Yes, the ratio value method of allocating agency administration must be used when distributing these costs among State agencies on the core CFR schedules (CFR-1 through CFR-6) and Schedule DMH-1. Once these costs are at the State agency level, the following rules apply to Schedule DMH-2:

 

OMRDD: The ratio value method must be used to allocate agency administration to each OMRDD program.

 

OASAS and OMH: Agency administrative expenses may be allocated among programs consistent with the methodology in the service provider’s approved budgets; however, ratio value is the preferred method to be used.

 

Question: If my agency receives a final payment for a prior year in this year, where is this reported on the DMH schedules?

 

Answer: This payment should be reported on the DMH-2, line 28, Net Deficit Funding, and line 38, Net Deficit Funding.

 

Question: Where are expenses and revenues related to fundraising reported on the CFR?

 

Answer: For CFR reporting purposes, expenses related to fundraising are reported on Schedule CFR-2 in column 7, "Other Programs". Expenses related to fundraising must not be reported as an agency administration expense on Schedule CFR-3 (lines 1 through 42). Agency administration will be allocated to all programs including "Other Programs" via the Ratio Value Method allocation method.

 

Revenues related to fundraising are reported on Schedule CFR-2, in column 7, "Other Programs" on lines 10 through 12

 

For CFR reporting purposes, fundraising expenses must not be netted against revenues received through fundraising. Refer to Sections 8.0 and 15.0.

 

Question: Where are expenses and revenues related to special events reported on the CFR?

 

Answer: Expenses and revenues relating to special events are reported in column 7, "Other Programs", of Schedule CFR-2. If the expenses of special events are netted against revenue on your agency’s financial statements, the expenses (costs of direct benefit to donors) should be netted in the revenue section in column 7 of CFR-2. For example, the cost of theatre tickets provided for a special event can be netted against the amount charged for attendance at a special event. Consequently, the costs of direct benefit to donors will not be included in the operating expenses (line 48 of CFR-3) used to allocate agency administration.

 

Questions regarding the accounting standards for reporting special events should be directed to your agency’s certified public accountant.

 

Question: Where are unrealized gains reported on the CFR?

 

Answer: Unrealized gains and losses on investments should be reported on schedule CFR-2, column 7 as revenues (unrealized gains) or contra-revenues (unrealized losses).

 

Question: How are agency administration expenses for non-DMH and non-SED programs reported on the CFR?

 

Answer: All agency administration expenses, including those for non-DMH and non-SED programs, must be reported on Schedule CFR-3, lines 1 through 42. Total agency administration costs are then allocated to all programs, including the non-DMH and non-SED programs reported in Column 7 of Schedule CFR-2, using the ratio value method of allocating agency administration. Refer to Appendix I.

 

Question: What are possible reconciling items between the total expenses and/or revenues reported on the CFR and the service provider’s financial statements, assuming that they are both completed for the same reporting period?

 

Answer: Possible reconciling items include but are not limited to:

 

(1) Expenses and revenues for fundraising that are netted on the service provider’s financial statements but cannot be netted on the CFR. Refer to Section 8.0.

 

(2) Depreciation expenses related to an asset funded specifically by State or Federal monies (exclusive of funds received via rates, fees or net deficit funding) will be included on the service provider’s financial statements but should not be included on the CFR. Refer to Appendix O.

 

Question: What is the difference between a non-funded cost and a non-allowable cost?

 

Answer: Non-funded cost is a DMH term which refers to expenses which were included on a service provider’s budget but were not approved for funding. Although a non-funded expense may consist of reasonable, necessary costs related to the provision of services (allowable costs), they are not reimbursable for claiming purposes. Non-allowable costs are expenses that by regulation or State agency policy are not reimbursable. A listing of examples of DMH non-allowable costs can be found in Appendix X of the CFR manual. SED providers should refer to the SED Reimbursable Cost Manual for specific items which are non-allowable for SED programs. If any non-allowable costs have been included as an expense on the CFR, they should also be included on the line for adjustments/non-allowable costs on the respective CFR schedule (line 66 of Schedule CFR-1, line 8 of Schedule CFR-2, line 41 of Schedule CFR-3, line 13 of Schedule DMH-1 and line 12 of Schedule DMH-2).

 

Question: What is the definition of a Closely Allied Entity as referenced in the CFR-5?

 

Answer: The term Closely Allied Entity includes corporations, partnerships, unincorporated associations or other bodies that have been formed or are organized to provide financial assistance and aid for the benefit of the service provider or to receive financial assistance and aid from the service provider. Financial assistance and aid include engaging in fund raising activities, administering funds, holding title to real property, having an interest in or donating personal property of any nature, and engaging in any other activities for the benefit of the service provider or the closely allied entity.

 

By "Financial Assistance and Aid" we are referring to donations or transactions (other than competitive transactions at fair market value made in the ordinary course of business) that benefit the receiver (either the service provider or CAE or both) whether in the form of cash, in-kind services, property, equipment or other assets. The following is an example of in-kind services: a service provider provides administrative oversight (payroll, bookkeeping, etc.) to a closely allied entity.

 

Question: Where should bad debt expense be reported on the CFR?

 

Answer: Depending on the program in which it was incurred, bad debt expense should be reported as an expense, either on schedule CFR-1, line 40; schedule CFR-2, line 4, column 7; or schedule CFR-3, line 17. It must also be adjusted out of reported costs on either Schedule CFR-1, line 66; Schedule CFR-2, line 8, column 7; or Schedule CFR-3, line 41.

 

Question: How should start-up expenses be reported on the CFR?

 

Answer: Start-up expenses are no longer required to be amortized on the CFR. Service providers are advised to follow AICPA (American Institute of Certified Public Accounts) Statement of Position (SOP) 98-5 (Reporting on Costs of Start-up Activities) unless instructed differently by the State Agency that is funding the start-up expenses.

 

Providers should be aware that SOP 98-5 limits costs which should be considered as Start Up expenses and these costs may differ from those which are funded as a start up by NYS. Specifically excluded are costs which are eligible to be capitalized as part of inventory or as long-lived assets. Also excluded are the costs of fundraising, the costs of raising capital and organizational costs. If in doubt regarding the treatment of a specific expense, your accounting professional should be contacted.

 

Question: How does the reporting on the core schedules for cost reporting purposes (schedules CFR-1 through DMH-1) differ from the reporting on the claim schedules (schedules DMH-2 and DMH-3)?

 

Answer: The core schedules require the use of the full accrual method of accounting and the Ratio Value method of allocating agency administration expenses. In contrast, the claiming schedules may use the modified accrual or cash methods of accounting which allow for the expensing of equipment. Additionally, on the claiming schedules for OMH and OASAS programs, agency administration may be allocated among their programs using a method other than the Ratio Value allocation method. The alternate method of allocating agency administration for OMH and OASAS must be consistent with the approved budget and consistent from year to year. Please refer to page 22.1 of the CFR manual.

Not-for-Profit: A group, institution, or corporation formed for the purpose of providing goods and services under a policy where no individual (e.g., trustee) will share in any profits or losses of the organization. Profit is not the primary goal of not-for-profit entities. All income and earnings will be used exclusively for the purpose of the corporation and no part shall inure to the benefit or profit of any private individual, firm or corporation.