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Year-end Funding Reconciliation

Information on the year-end reconciliation and claiming process. View "close-out" rules that apply to OASAS services providers.

Year-end Funding Reconciliation
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Revised Year-End Reconciliation Process for Funded Services to Address the Impact of the COVID-19 Pandemic on Provider Operations:

OASAS will reconcile State Aid in aggregate over the two fiscal periods from July 1, 2019 through June 30, 2021 or January 1, 2020 through December 31, 2021. This combined close-out is intended to facilitate stable operations for providers and assist in addressing anticipated significant variations in revenue and expenses due to and during the COVID-19 pandemic.

The two-year closeout will be based on the reconciliation of the completed DMH-2 claims for each fiscal period, July 1, 2019-June 30, 2020 and July 1, 2020-June 30, 2021 or January 1, 2020-December 31, 2020 and January 1, 2021-December 31, 2021, and aggregating the total deficit for the two-year period in relation to the approved State aid for the two years. All unspent State Aid identified as a result of the closeout will be recouped in accordance with the OASAS’ established reconciliation and recovery process.

OASAS certified and funded providers are still required to submit their annual Consolidated Fiscal Report (CFR) on the specified due dates. Please refer to recently updated CFR guidance on how to report the Paycheck Protection Program (PPP) revenue.

Contact [email protected] with any questions.

 


Any revisions to the DMH-2 claims document must be submitted to OASAS via the CFR software no later than one year following the close of the reporting period and must be accompanied by the signed CFR-i certification page and, if applicable, the CFR-iii certification page. This deadline may be extended with sufficient justification and at the sole discretion of OASAS.

 
The following "close-out" rules continue to apply:

 

Claimed Agency Administration will be limited to 20 percent of a total agency’s claimed Personal Services, Fringe Benefits, and Other Than Personal Services (OTPS) costs.

  • Providers must comply with the Agency Administration limit on all budget and claiming documents. Providers must also comply with Executive Order (EO) #38 requirements for all covered reporting periods.
  • Providers must consistently claim Agency Administration to all programs using the ratio value methodology.
  • Claimed Agency Administration in excess of 20 percent will be non-funded.

State aid shifts between funded programs of a provider within a single county or contract will not be limited. 

​​​​This does not apply to:

  • Programs funded from other State agency appropriations, such as Permanent Supported Housing - High-Frequency Medicaid Consumers (3480) programs;
  • Primary prevention (5520) programs funded with the Federal Substance Abuse Prevention and Treatment block grant effective with the 2019 and 2019-20 fiscal periods.
  • Time-limited specific project funding, such as Legislative Initiatives (4778); and;
  • Funding for project initiatives not directly supporting treatment, prevention, or recovery program activities.
  • Programs may not be closed through the claims reconciliation process, thereby releasing State aid for use in other programs, without prior approval from OASAS.

State aid will not shift automatically between providers in a county during the close-out process

Gross expense increases with offsetting revenue will not be limited.

  • OASAS is under no obligation to fund increases to expenses that do not have adequate off-setting revenues or State aid.
  • Claimed State aid in excess of the total budgeted State aid will be non-funded.

 

OASAS reserves the right to disallow the enhanced flexibility to shift funds between programs to support any deficits due to a particular program’s under-performance.

 

Consolidated Budget Reporting Manual