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Office of Mental Health

New York State Consolidated Budget and Claiming Manual Subject: DMH Processing of State Aid Fiscal Reports Section: 20
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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This section of the manual describes the general overall processing of State Aid claim submissions by the DMH State Agencies.

Establishing Control Records

The first step in the DMH State Agencies processing of any State Aid claim is the establishment of control records. OASAS, OMH and OMRDD establish specific control records consistent with the level of control each State Agency requires.

For county operated service providers and not-for profit service providers funded through local contracts these controls are based on the information contained in the State Aid Approval Letters provided to Local Governmental Units (LGUs). Each funding DMH State Agency issues its own State Aid Approval Letter to an LGU for a given fiscal reporting period. The information contained in each DMH State Agency's Approval Letter differs in the amount of detail provided but all of them contain the approved funding level available for all service providers in the county, and the source of those funds. For more information on how State Aid Approval Letters are developed contact the appropriate DMH State Agency.

For service providers funded through a direct contract with a DMH State Agency the controls are included in the terms of the contract and the approved contract budget. As with the State Aid Approval Letters, each DMH State Agency's contract terms and contract budgets are formatted somewhat differently. For more information on how State contracts with service providers are developed contact the appropriate DMH State Agency.

Each of the DMH State Agencies reserves the right to add additional controls to LGUs, county operated service providers, local contract funded and direct contract funded not-for-profit service providers as circumstances warrant.

State Aid Claims Received by the DMH State Agencies

Each DMH State agency logs State Aid claims onto a claim submission status log. This log may be maintained in an electronic format or it may be maintained manually in a journal or ledger.

Regardless of the format, the claim submission status log includes the date the claim was received, the identity of the LGU or direct contractor submitting the claim and the claim period covered. When advance payments are due for processing, this submission status log is one of the reference sources used to determine if an advance will be provided.

Screening of State Aid Claims

Upon their receipt, State Aid Claims are screened for completeness in accordance with the State Aid Claims Preparation and Submission section of this manual. In addition, State Aid claims are also screened for other supporting documentation, if required.

For LGU claim submissions the funding DMH State Agencies will follow up with any LGU whose claim package does not include all of the required schedules and/or documentation for the service providers funded through that LGU. For direct contract claim submissions the funding DMH State Agencies will follow up directly with the service provider.

The DMH State Agencies may screen LGU and direct contract claims electronically or manually. Any required follow-up with an LGU or service provider may also be handled electronically or manually.

Review of State Aid Claims

OASAS, OMH and OMRDD will review all required LGU and direct contract service provider claims for the following:

Within the budgetary control parameters established by each funding DMH State Agency, individual program columns may be analyzed for over-expenditures in budgeted expense categories. If a particular budget category is exceeded beyond these parameters, the excess expenses may be disallowed and non-funded if there is no evidence that a budget modification is in place or in process.

Each DMH State Agency will bring any adjustment and/or corrections resulting from the above review to the attention of the appropriate LGU or direct contract service provider. It is the responsibility of the LGU to ensure that county operated and local contract funded not-for-profit service providers are made aware of any and all changes made to their claims by the DMH State Agencies or the LGU.

Reconciliation of State Aid Claims to Advances

All DMH State Agencies: Final approved State Aid, as adjusted, will be reconciled against the advance payments provided to the LGU or direct contract service providers. The amount to be reconciled will include current year advances as well as unused advance balances from prior fiscal years. In addition, adjustments to payments made to LGUs and direct contract service providers shall also take into account any disallowances resulting from fiscal audits conducted by the Office of the State Comptroller, Federal Government, LGU and/or OASAS, OMH and OMRDD audit staffs.

Any questions regarding adjustments, corrections and payment reconciliations should be directed to the appropriate DMH State agency claims staff indicated in Section 1 of this manual.

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