Part 822 Comprehensive Outpatient Services Request to Not Apply Surplus Revenues

Effective Immediately

Eligibility:

• Providers may request to not apply surplus revenues in funded, certified Part 822 Comprehensive Outpatient programs (program code 2950) for up to two consecutive fiscal years beginning with the year of certification.
• Revenues must be used for Part 822 Comprehensive Outpatient program purposes in the program(PRU) reporting the surplus revenues.
• Requests to not apply surplus revenues submitted by other program types will not be considered as part of this process.

Procedures:

Providers must submit a written request to “not apply” surplus revenues to their RO Program Manager (with a copy to the Local Governmental Unit, if applicable). Please see below table and notes describing due dates for provider submissions to the RO to allow sufficient time for review and recommendation prior to the final submission to the OASAS Bureau of Budget Management (BBM).

• All dates listed refer to the date immediately after the fiscal period for which the request applies.
• Requests received by BBM after the Request due date will only be eligible for approval up to 50% of the surplus revenue.
• Requests received by OASAS BBM after the Final Date for Acceptance will be denied.
• Complete, revised CFRs reflecting any approved adjustments to revenue must be received by OASAS by the date listed or they will not be processed and funds will be recovered as appropriate.

The request must specify the following:

The amount and source of the projected surplus.

• A rationale why the money is needed and specific details of how it will be spent to the betterment of the Part 822 Comprehensive Outpatient program.
• The total amount requested to not apply cannot exceed 10% of total program gross costs as identified in the current budget of record.
• Common uses might include:
  • Hiring of staff including any related recruitment costs.
  • Equipment
  • Supplies
  • Building renovations/maintenance. Building renovations are limited to a Part 822 Comprehensive Outpatient site and will be reviewed by the RO and other bureaus, as applicable. Approval may impact future minor maintenance eligibility.
  • IT expenditures in the areas of equipment, software programs and required annual licenses, other related fees or needed system upgrades.
• The provider must acknowledge that on-going costs. e.g., new staff or annual fees, will be included in the annual budget for the program and financed through revenues in future years and that no additional State aid will be requested.
• The respective OASAS RO will review the request for reasonableness and follow-up for any necessary information.
• The RO will forward the request with any backup documentation and make a recommendation regarding the request to Division of Fiscal Administration, Bureau of Budget Management (BBM) Mailbox ([email protected]).
• The RO and other appropriate OASAS Divisions will review the complete request consistent with this policy along with all other appropriate programmatic and fiscal policies.
• The RO will notify the provider (with a cc: to the Local Governmental Unit if applicable) in writing of the Commissioner’s determination with a copy to the Bureau of Budget Management and the Payments Unit.

Additional Information:

• Providers that received approval to “Not Apply” revenues will make a revenue adjustment on the DMH-2, line 39 Other Non-GAAP Adjustments and identify the entry as “OASAS Not Applied Revenues”. The amount entered must match the amount approved in writing by the RO. Any amount in excess of the approved amount will be used to offset State Aid.
  • If prior approval has not been obtained, all surplus revenues will be used to offset the State Aid. Claims will be adjusted to apply the revenue if prior approval was not obtained.
• Approval to “Not Apply” revenue will be made on a case-by-case basis and is solely at the discretion of OASAS.
• OASAS cannot approve requests to not apply revenue that would cause a negative net revenue, and thus result in retention of unspent State Aid. Unspent State Aid will be recovered through the usual reconciliation process.
• Programs will still be subject to all reporting and performance monitoring.
• OASAS reserves the right to revise or discontinue this procedure without notice.

For further information on appropriate uses of any surplus revenues, email [email protected] and [email protected].

Questions related to reporting the revenue adjustment on the DMH-2 should be sent to [email protected].