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Office of Mental Health

New York State Consolidated Budget and Claiming Manual Subject: DMH-2 (Budget) Aid to Localities/Direct Contract Summary Section: 13
For the Periods:
January 1, 2009 to December 31, 2009
July 1, 2009 to June 30, 2010
Issued: September 9, 2009

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The DMH-2 (Budget) schedule of the Consolidated Budget Report (CBR) is used to list budgeted expenses, revenues, net operating costs and deficit funding amounts by program type and/or program site and/or contract number for programs funded and/or certified by one (1) or more of the DMH State Agencies. Please refer to Section 8 of the Consolidated Fiscal Reporting and Claiming Manual (CFR Manual) for more detailed information on program types and program sites.

The following guidelines should be followed in completing this schedule:

  1. A separate DMH-2 (Budget) schedule must be prepared for each DMH State Agency from which the service provider receives Aid to Localities (State Aid) funding. Aid to Localities funding may be provided directly through a contract with a DMH State Agency or indirectly through a contract with the Local Governmental Unit (LGU).
  2. A separate DMH-2 (Budget) schedule must be prepared for each county in which the service provider operates programs and receives Aid to Localities (State Aid) funding. Aid to Localities funding may be provided directly through a contract with a DMH State Agency or indirectly through a contract with the Local Governmental Unit (LGU).
  3. The programs reported on the DMH-2 (Budget) schedule must be arrayed in the same order as they appear on schedules CBR-4, DMH-2A and DMH-3.
  4. Total service provider agency administration expenses must be allocated among the funding DMH State Agencies using the ratio value methodology. Each funding DMH State Agency's share of agency administration is allocated among that DMH State Agency's funded and/or certified programs as follows:

    OASAS: The total OASAS share of agency administration may be allocated among OASAS programs using ratio value or an approved alternative methodology. The allocation methodology used must remain constant from year-to-year and cannot be changed without prior OASAS and, if applicable, LGU approval.

    OMH: The total OMH share of agency administration may be allocated among OMH programs using ratio value or an approved alternative methodology. The allocation methodology used must remain constant from year-to-year and cannot be changed without prior OMH and, if applicable, LGU approval.

    OMRDD: The total OMRDD share of agency administration must be allocated among OMRDD programs using the ratio value methodology.

  5. Equipment purchases for the reporting period are budgeted as follows:

    OASAS: All equipment must be expensed in the year of purchase. OASAS does not allow service providers to budget or claim asset depreciation for State Aid reimbursement.

    OMH: Equipment purchases for the reporting period may be expensed or capitalized (depreciated) over the life of the asset.

    OMRDD: Equipment purchases for the reporting period may be expensed or capitalized (depreciated) over the life of the asset.

    Note: If equipment is expensed in the year of purchase, the service provider must use cash or modified accrual accounting on the DMH-2 (Budget), DMH-2A (Budget) and DMH-3 (Budget) schedules.

Heading Instructions

For the Period *

Enter the beginning and ending dates of the budget period covered by this document.

State Agency *

Indicate the DMH State Agency(ies) that fund(s) and/or certify(ies) the reported programs.

Agency Name *

Enter the name of the organization (service provider) operating the reported program(s).

Agency Code *

Enter the five (5) digit code assigned to the organization operating the reported program(s).

Date Prepared *

Enter the date the DMH-2 (Budget) schedule was prepared.

County Name and Code *

Enter the name and associated code of the county where the budgeted services will be provided and/or funded through a local contract or, a direct contract with a DMH State Agency. Please see Appendix C of this manual and the Consolidated Fiscal Reporting and Claiming Manual (CFR Manual) for a list of New York State counties and their associated county codes.

OMH Note: Service providers located in the five (5) boroughs of the City of New York (Bronx, Kings, New York, Queens and Richmond) should use the county name “New York” and the county code “31” for all reported programs.

* Complete this at the top of each page of the DMH-2 (Budget).

Prepared by *

Enter name of person that prepared the DMH-2 (Budget) schedule and can answer questions about the information it contains.

Telephone *

Enter the preparer's telephone number.

Column Number

For each program reported, assign a column number. Label programs in consistent column order within each funding DMH State Agency's schedules. Programs must be assigned the same column number throughout all schedules of the CBR. Additional programs must be assigned the next sequential column number on additional pages when necessary.

Note: Approved Consolidated Fiscal Reporting System (CFRS) software automatically assigns and organizes column numbers.

* Complete this at the top of each page of the DMH-2 (Budget).

Line Instructions

  1. Accounting Method

    For each reported program, enter the method of accounting used i.e., accrual, modified accrual or cash. Please refer to Section 3.0 of this manual for more information on accounting methods.

  2. State Contract Number/LGU Contract Number

    For each reported program, enter the contract number as follows:

    State Contract Number: For direct contracts with a funding DMH State Agency, enter the State Contract Number.

    LGU Contract Number: For local county contracts, enter the LGU Contract Number if applicable. A contract number must be entered. If there is no county contract number assigned to the program enter the applicable county name or county abbreviation (up to 7 characters).

    OASAS Note: The contract number used for each reported program on the DMH-2 (Budget) schedule must match the contract number used for all funding source codes (except funding source code 090) for that program on the DMH-3 (Budget) schedule

    OMH Note: The contract number used in each column (Unique program code + program code index) of the DMH-3 (Budget) schedule should consist of a single State direct contract number or an appropriate combination of local contract numbers. Direct and local contract numbers cannot be used in a single column on the DMH-3 (Budget) schedule.

    OMRDD Note: There may be both direct contract numbers and local contract numbers in the same column (program code) of the DMH-3 (Budget) schedule. Each funding source code may have a unique contract number. At least one (1) contract number and associated type of contract (State or local) must match the contract number and type of contract in the same column (program code) of the DMH-2 (Budget) schedule.

  3. Program Type

    For each reported program, enter the type of program operated using the program names in Appendices E, F and G of this manual and the CFR Manual.

  4. Program Code & Program Code Index

    For each reported program, enter the applicable DMH State Agency program code and program code index. Please see Appendices E, F and G of this manual and the CFR Manual for complete listings of valid program codes. Program code indexes are assigned as follows:

    OASAS:

    1. Use the same array of program codes and indexes as were used during the prior reporting period unless programs have been combined, added or removed from OASAS funding for this reporting period. If programs have been added or removed from OASAS funding, consult with the OASAS Field Office for the appropriate array of program codes and indexes to be used.

    OMH:

    1. Use the same array of program codes and indexes as were used during the prior reporting period unless programs have been added or removed from OMH funding for this reporting period. If programs have been added or removed from OMH funding, consult with the OMH Field Office for the appropriate array of program codes and indexes to be used.
    2. For OMH Community Residences, each supervised site, each MI/MR site and each Children and Youth site is considered a program and must be reported in a separate column.
    3. For OMH start up program and PDG program codes and indexes, see Appendix F of this manual and the CFR Manual.

    OMRDD:

    1. OMRDD programs reported on a program type basis (expenses and revenues aggregated and reported in one (1) column) and programs codes 0053, 0054, 0090, 0091, 0200, 0202, 1090, 1091, 2090, 2091, 3090, 4090, 5090, 5091, 6090 and 6091 use index code “00”. For all other OMRDD programs use “01” for the first occurrence of each program type, “02” for the second occurrence, “03” for the third occurrence, etc (e.g. Family Support).

    Expenses

  5. Personal Services

    For each reported program, enter the anticipated total personal services expenses for the reporting period from the CBR-4 schedule. Do not include agency administration personal services on this line.

    Note:Personal services expenses must be reasonable and necessary for providing services.

  6. Vacation Leave Accruals

    For each reported program, enter the anticipated vacation leave accruals corresponding to the personal services listed on Line 5. Do not include agency administration leave accruals on this line.

    OASAS Note: OASAS does not allow service providers to budget for or claim vacation leave accruals for Aid to Localities (State Aid) reimbursement.

  7. Fringe Benefits

    For each reported program, enter the anticipated fringe benefits expenses corresponding to the personal services listed on Line 5. Include FICA, hospitalization, retirement benefits, group life insurance, etc. Do not include agency administration fringe benefits on this line.

    Note: Fringe benefits expenses are allowable expenses to the extent that they are reasonable and available to all employees.

  8. Other Than Personal Services (OTPS)

    For each reported program, enter the anticipated OTPS expenses for the reporting period. Include food, repairs and maintenance, utilities, telephone and minor expensed equipment (equipment costing less than $1,000 or having a useful life of less than two years).

  9. Equipment Provider Paid

    For each reported program, enter the anticipated equipment related expenses for the reporting period. Include vehicle and equipment lease costs. Do not include agency administration equipment costs on this line.

    Note: Do not include any equipment budgeted as minor expensed equipment in OTPS (line 8) or Agency Administration.

    OASAS Note: OASAS does not allow service providers to budget for or claim equipment depreciation expenses for Aid to Localities (State Aid) reimbursement. All equipment must be expensed in the year of purchase.

  10. Property-Provider Paid

    For each reported program, enter the anticipated property related expenses for the reporting period. Include property lease costs and/or depreciation, real estate taxes (if allowable), property and casualty insurance, etc., if applicable. Do not include agency administration property costs on this line.

    OASAS Note: OASAS does not allow service providers to budget for or claim property related depreciation expenses for Aid to Localities (State Aid) reimbursement.

    OMH Note:OMH Community Residence and Family Based Treatment providers should refer to the OMH Aid to Localities Spending Plan Guidelines.

  11. Agency Administration

    For each reported program, enter the anticipated agency administration expenses for the reporting period. Except as noted below, all county operated programs and all not-for-profit service provider programs must be allocated agency administration expenses.

    Note: County operated service providers must allocate agency administration expenses to programs other than LGU administration (program code 0890). LGU administration is considered a unique cost center separate and distinct from agency administration expenses incurred by other county operated programs. Agency administration expenses for the management and oversight of all county operated programs other than program code 0890 cannot be included in the expenses reported under program code 0890. Please see Appendix I and Appendix K of this manual and the CFR Manual for more detailed information on agency administration and LGU administration.

    Agency administration is allocated to the DMH State Agencies and their programs using a two (2) step process:

    Step 1:

    Allocate the organization's (service provider's) agency administration expenses between each of the funding DMH State A total agencies and all other funding sources using the ratio value allocation methodology.

    The following programs are exempt from agency administration and are not included in the Step 1 ratio value calculation:

    • LGU Administration (0890),
    • Program Development Grants (OMRDD), and

    Step 2:

    For OASAS: Allocate the total OASAS share of agency administration to each OASAS program using the existing OASAS approved allocation methodology. Please note that OASAS prefers and recommends the use of the ratio value allocation methodology.

    For OMH: Allocate the total OMH share of agency administration to each OMH program using the existing OMH approved allocation methodology.

    Within the OMH DMH-2 (Budget) schedules, the following programs are exempt from agency administration and are not included in the Step 2 ratio value calculation:

    • LGU Administration – OMH Reinvestment and MGP (0860).
    • Monitoring and Evaluation, CSS (0870),
    • FEMA Crisis Counseling Assistance and Training (1690)
    • Client Service Dollars – Non ICM/SCM/ACT (2820)
    • Conference of Mental Hygiene Directors (2860)
    • ICM/SCM/BCM Emergency and Non-Emergency Service Dollars (2830)
    • Start-up programs with an ”A” as the program code index.
    • Assertive Community Treatment (ACT) Team – Service Dollars (8810)

    For OMRDD: Allocate the total OMRDD share of agency administration to each OMRDD program using the ratio value allocation methodology. Within the OMRDD DMH-(Budget) schedules, the following programs are exempt from agency administration and are not included in the Step 2 ratio value calculation:

    • VOICF/DD , Sheltered Workshop not operated by service provider (2091)
    • VOICF/DD , School District Contracts not operated by service provider (3091)
    • VOICF/DD , Day Training not operated by service provider (5091)
    • VOICF/DD , Day Services Contract (7090)
  12. Adjustments/Non-Allowable Costs

    For each reported program, enter the anticipated adjustment to expenses and/or non-allowable costs. Refer to Appendix X of this manual and the CFR Manual for further details.

  13. Total Adjusted Expenses

    For each reported program, enter the sum of lines 5 through 11 minus line 12.

    Revenues

  14. Participant Fees (less SSI & SSA)

    For each reported program, enter the anticipated fee payments expected directly from program participants for the reporting period. The amount entered here will be the amount in excess of anticipated SSI and SSA payments made on behalf of program participants.

  15. SSI & SSA

    For each reported program, enter the anticipated amount of Supplemental Security Income and the Social Security Income expected from program participants for the reporting period.

  16. Home Relief

    For each reported program, enter the anticipated amount of Home Relief revenue for the reporting period such as Congregate Care.

  17. 17. Medicaid Regular

    For each reported program, enter the anticipated amount of Medicaid revenue expected for the reporting period.

    Medicaid Managed Care: Revenues received directly from a Medicaid Managed Care organization should not be reported here. It should be reported on line 19, Other Third Parties.

    Disproportionate Share (DSH): OASAS and OMH service providers receiving Disproportionate Share (DSH) revenue should budget DSH revenues on line 29, Other Revenue.

    OMH Note: Include the anticipated Community Support Program (CSP) Medicaid revenue expected during the local fiscal year. For budgeting purposes, include the CSP revenue in the column of the appropriate CSP program; for claiming purposes, include the CSP revenue in the column of the licensed outpatient program (clinic, CDT, or day treatment program) generating the CSP revenue. See Appendix DD of this manual and the CFR Manual for more information on COPS and CSP Medicaid revenue.

  18. Medicare

    For each reported program, enter the anticipated Medicare revenue expected for the reporting period.

  19. Other Third Parties

    For each reported program, enter the anticipated revenue expected from managed care organizations and third party payers (such as Blue Cross, commercial pay, Champus, etc.) for the reporting period.

  20. OMRDD Residential Room and Board/NYS OPTS

    Make no entry. Not applicable for OMRDD CBRs.

  21. Transportation, Medicaid

    For each reported program, enter the anticipated Medicaid transportation revenue expected for the reporting period.

  22. Transportation, Other

    For each reported program, enter the anticipated transportation revenue expected for the reporting period that is not included on line 21.

  23. Sales: Contract Total

    For each reported program, enter the anticipated industrial sales contract revenue expected for the reporting period.

    OASAS Note: Report anticipated Employee Assistance Program (EAP) revenues on this line.

  24. Federal Grants (Attach detail)

    For each reported program, enter the anticipated Federal grant revenues expected for the reporting period. Only include those grants received directly from an administering Federal Government agency that are specifically part of a program funded by one of the DMH State Agencies.

    Do not include Federal grant revenue received as pass through State Aid from any New York State Agency (i.e. the Substance Abuse Prevention and Treatment Block Grant).

  25. State Grants (Attach detail)

    For each reported program, enter the anticipated New York State (NYS) Agency grant revenues expected for the reporting period. Do not include any revenues expected from one of the three (3) DMH State Agencies (OASAS, OMH and/or OMRDD) or the NYS Education Department (SED).

    All of the following criteria must be met for the anticipated revenues reported on this line:

    • The revenues must be received directly from a non CFR NYS Agency; and
    • The revenues must be a component of the program funded by the applicable DMH State Agency.

    Note: The expenses associated with the revenues reported on this line must also be included in lines 5 through 10 of this schedule.

  26. LTSE Income Total (OMH and OMRDD Only)

    OASAS: Make no entry.

    OMH: For each reported program, enter the anticipated Long Term Sheltered Employment revenue. The amount entered must be equal to the amount that will be included in the service providers fully executed contract.

    OMRDD: For each reported program, enter the anticipated Long Term Sheltered Employment revenue. The amount entered must be equal to the amount that will be included in the service providers fully executed contract.

  27. Food Stamps (OASAS Only)

    OASAS: For each reported program, enter the anticipated food stamp revenue.

    OMH: Make no entry.

    OMRDD: Make no entry.

  28. 28. Net Deficit Funding (State & LGU Funding Only)

    For CBRs only, make no entry on this line.

  29. 29. Other Revenue

    For each reported program, enter all other anticipated revenues not reported on lines 14 through 28 above.

    OASAS: Detail must be provided for any individual revenue item in excess of $1,000. The following types of revenue are some, but not all, of the types of revenue reported on this line for OASAS programs:

    • Disproportionate Share (DSH)
    • Closely Allied Entities
    • Voluntary Contributions
    • TANF
    • Prior Year Revenue.

    OMH: Detail must be provided for all revenue items regardless of the dollar amount. The following types of revenue are some, but not all, of the types of revenue reported on this line for OMH programs:

    • Non-Medicaid CRs Prior Years
    • ICM Prior Years
    • SCM Prior Years
    • BCM Prior Years
    • ACT Prior Years
    • Accrued Disproportionate Share (DSH) Revenue
    • Federal Salary Sharing (See Appendix V of this Manual and the CFR Manual for more information about OMH Federal Salary Sharing.)
    • CSP Reserve Prior Years (See Appendix DD of this Manual and the CFR Manual for more information about CSP.)
    • COPS Prior Years
    • Non-COPS Prior Years.

    OMRDD: Detail must be provided for any individual revenue item in excess of $1,000.

  30. Total Gross Revenues

    For each reported program, enter the sum of lines 14 through 29.

    GAAP Adjustments To Revenue

  31. Participant Allowance

    For each reported program, enter the anticipated total amount of the program participants' personal allowances, income disregards, and work related exemptions.

  32. Uncollectible Accounts Receivable

    Make no entry. Uncollectible Accounts Receivable is not an allowable adjustment to revenue for State Aid budgeting and claiming.

  33. Other (Attach detail if greater than $1,000)

    For each reported program, enter all other anticipated revenues not reported on lines 31 and 32 above.

    OASAS: Detail must be provided for any individual revenue item in excess of $1,000.

    OMH: Detail must be provided for all revenue items regardless of the dollar amount

    OMRDD: Detail must be provided for any individual revenue item in excess of $1,000.

  34. Total GAAP Adjustments

    For each reported program, enter the sum of lines 31 through 33.

  35. Net GAAP Revenues

    For each reported program, enter the result of line 30 minus line 34.

    Non-GAAP Adjustments To Revenue

  36. Exempt Contract Income

    For each applicable program, enter the anticipated exempt contract income for the reporting period. Exempt contract income is calculated by subtracting participant wages and raw materials from total contract sales. Worksheets supporting the calculation of exempt contract income must be maintained by the service provider.

    Calculation: Contract sales minus Participant Wages minus Raw Materials = Exempt Contract Income

    Note: If non-consumer employees work on industrial contracts, the portion of the contract income attributable to these employees, their wages and the raw materials they use cannot be included in the exempt contract income calculation. Additionally, any of the resources above that are not attributable to industrial contracts (such as janitorial services for your agency) cannot be used in the exempt contract income calculation.

  37. Exempt LTSE Income

    For each applicable program, enter the anticipated exempt Long Term Sheltered Employment (LTSE) income for the reporting period. Exempt LTSE income is calculated by multiplying total LTSE income on line 26 by 40% (.40).

    Calculation: Total LTSE Income x .40 = Exempt LTSE Income

  38. Net Deficit Funding

    For CBRs only, make no entry on this line.

  39. Other (Attach detail if greater than $1,000)

    For each reported program, enter all other anticipated revenues not reported on lines 14 through 28 above.

    OASAS: Detail must be provided for any individual revenue item in excess of $1,000. The following types of revenue are some, but not all, of the types of revenue reported on this line for OASAS programs:

    • Not Applied Revenue

    OMH: Detail must be provided for all revenue items regardless of the dollar amount. The following types of revenue are some, but not all, of the types of revenue reported on this line for OMH programs:

    • OMH Share Medicaid CR
    • Provider Share Medicaid
    • CSP Reserve
    • COPS Reserve
    • ICM Current Year Exempt
    • SCM Current Year Exempt
    • BCM Current Year Exempt
    • ACT Current Year Exempt
    • Non-COPS Reserve

    OMRDD: Detail must be provided for any individual revenue item in excess of $1,000.

  40. Total Non-GAAP Adjustments

    For each reported program, enter the sum of Lines 36 through 39.

  41. Subtotal Adj. to Revenue

    For each reported program, enter the sum Lines 34 and 40.

  42. Total Net Revenues

    For each reported program, enter the result of Line 30 minus 41.

  43. Net Operating Cost

    For each reported program, enter the result of Line 13 minus 42

    Deficit Funding

    Deficit funding consists of those funding sources (i.e. State, Local Government, Voluntary Contributions, Non-funded) used to offset the net operating costs. Since the overall budget/claim of an agency must balance, the net operating costs on line 43 must equal the total deficit funding on line 49.

  44. State

    For each reported program, enter the anticipated amount of State funds to be applied against the net operating cost on line 43. These State funds will partially or fully finance the net operating cost of the service provider. This includes any Federal pass through funds received from the funding DMH State Agency.

    Note: Please see “Percent of Net Costs” information at the end of this section.

  45. Local Government

    For each reported program, enter the anticipated amount of local government (public) funds that will be used to finance the required match of State funds on line 44. Local government funds are funds raised by the county through a tax levy or some other means. Do not include the State or service provider share of the net deficit to be funded on this line.

    OASAS: Only Local Government tax dollars which are considered maintenance of effort (MOE) should be reported on Line 45. All other local contributions (i.e., non-MOE, city, town, school district) should be shown under Revenue on Line 29 – Other.

  46. Service Provider Share (Voluntary Contributions)

    OASAS: Make no entry. All voluntary contributions must be reported on line 29, Other Revenue, pursuant to Article 26 of NYS Mental Hygiene Law.

    OMH: For each reported program, enter the amount of voluntary contributions, if any, used to finance the required match of State funds. This amount may be stipulated in a local county contract or a direct contract with a funding DMH State Agency.

    OMRDD: For each reported program, enter the amount of voluntary contributions, if any, used to finance the required match of State funds. This amount may be stipulated in a local county contract or a direct contract with a funding DMH State Agency.

  47. Total Approved Deficit Funding

    For each reported program, enter the total of lines 44 through 46. This amount represents the anticipated portion of program expenses less total revenue that will be approved for State Aid reimbursement by the funding DMH State Agencies.

  48. Non-Funded

    For each reported program, enter the anticipated amount of program expenses that will not be approved for State Aid reimbursement. This amount represents the difference between line 43 and line 47. Fiscal support for the expenses entered on line 48 is the sole responsibility of the service provider.

  49. Total Net Deficit

    For each reported program, enter the sum of lines 44 through 47.

    Note: Line 49 must equal line 43.

    Percent (%) Of Net Costs

    The amounts entered on line 44 of the DMH-2 are calculated by applying the percentages applicable for each funding source code used on the DMH-3 and then totaling all the results. Funding Source code information can be found in Appendix N of this manual and the CFR Manual.

    Unified Services counties should use the applicable Unified Services Rate indicated below or the reimbursement rate for the funding source code if it is higher than the Unified Services Rate.

    Unified Services Rates

    County Disability Percentage
    Rensselaer OASAS, OMH and OMRDD 86.85%
    Rockland OASAS, OMH and OMRDD 69.50%
    Warren OASAS, OMH and OMRDD 87.10%
    Washington OASAS, OMH and OMRDD 96.99%
    Westchester OASAS, OMH and OMRDD 69.32%

    Note: In some cases, the surplus generated by a program(s) may be used to offset a deficit(s) generated by another program(s) funded by the same DMH Agency. Service providers should refer to the definition for In–contract/Out–of–contract in the glossary and Appendix Z for a policy statement and procedure.

Comments or questions about the information on this page can be directed to the Community Budget & Financial Management (CBFM) Group.