Skip to Main Content

Office of Mental Health

New York State Consolidated Budget and Claiming Manual Subject: Appendix K LGU Administration Allocation and Percentage Splits Section: 35
For the Periods:
January 1, 2009 to December 31, 2009
July 1, 2009 to June 30, 2010
Issued: September 9, 2009

View Adobe Acrobat Version | Download Adobe Acrobat Reader

Local Governmental Unit Administration (LGU) is considered a unique cost center over and above the cost to the agency as a service provider; therefore, a separate cost center should be maintained for LGU administration detailing personal services and other than personal services costs. LGU administration costs are required to be reported as a shared program (program code 0890) on the core CFR schedules (CFR-1 through CFR-6) and DMH-1. The journal entries should be made during the provider's normal accounting cycle. The following is a summary list of activities from Section 41. 13 of the Mental Hygiene Law (MHL) which are associated with the responsibility of the LGU. Refer to the MHL for a complete description of each activity.

Review services and local facilities for the mentally disabled of the area which it serves and their relationship to local need; determine needs of the mentally disabled of such area; and encourage programs of prevention, diagnosis, care, treatment, social and vocational rehabilitation, special education and training, consultation, and public education on mental disabilities.

Develop a program of local services for the area which it serves, establish long-range goals of the local government in its programs for the mentally disabled, and develop intermediate range plans and forecasts, listing priorities and estimated costs.

Direct and administer the development of a local comprehensive plan for all services for mentally disabled residents of the area, which shall be submitted to the department and used in part to formulate a statewide comprehensive plan for services.

Seek to assure that under the goals and plans required, all population groups are adequately covered, sufficient services are available for all the mentally disabled within its purview, that there is coordination and cooperation among local providers of services, that the local program is integrated and coordinated with the programs of the department, and that there is continuity of care among all providers of services.

Submit annually to the department for its approval and subsequent State Aid, a report of long-range goals and specific intermediate range plans as modified since the preceding report, along with a local services plan or unified services plan for the next fiscal year.

Have the power, with the approval of local government, to enter into contracts for the provision of services and the construction of facilities including contracts executed pursuant to subdivision (e) of section 41. 19 of this article and the power, when necessary, to approve construction projects.

Establish procedures for execution of local government, to enter into contracts for the provision of services and the construction of facilities including regulations to guide the provision of services by all organizations and individuals within its program.

Make policy for and exercise general supervisory authority over or administer local services and facilities provided or supervised by it whether directly or through agreements, including responsibility for the proper performance of the services provided by other facilities of local government and by voluntary and private facilities which have been incorporated into its comprehensive program. Serve as a center for the promotion of community and public understanding of mental disabilities and of the services necessary for their care and treatment.

Seek the cooperation and cooperate with other public health and social services agencies, public and private, in advancing the program of local or unified services.

Further programs for special education and training, including career incentive and manpower and development.

Have the power to conduct or contract for such research as may be useful for the discharge of its administrative duties and for the promotion of scientific knowledge of the mental disabilities.

Have the powers necessary and proper for the effective performance of its functions and duties.

Require the development of a written treatment plan as provided in rules and regulations of the commissioner.

The local governmental unit for the county of Westchester shall establish a volunteer ombudsman pilot program within its territorial jurisdiction.

The preceding list should enable a service provider to determine between agency administration functions (e. g., executive director) and LGU functions.

A separate cost center should be set up for LGU administration on the LGU's general ledger. If this is not feasible, the following procedures must occur:

Personal Services

First, determine all personnel who spent 100% of their time on LGU administration.

For personnel who spent less than 100% of their time on LGU, a time study must be performed to properly allocate their time (refer to the guidelines for an acceptable time study in Appendix L).

Fringe Benefits

Applicable fringe benefits to employees who are working in LGU administration should be detailed as follows:

Example:

i. Fringe Benefits $150,000
ii. Total Personal Services 1,500,000
iii. Fringe Benefit Percentage (line i  line ii) .10
iv. Joe Smith's Salary 50,000
v. Fringe Benefits Applicable to Joe Smith (line iii x line iv) 5,000
vi. Percentage of Time Related to LGU 10%
vii. Personal Service Cost Related to LGU (line iv x line vi) 5,000
viii. Fringe Benefits Applicable to LGU (line v x line vi) 500

Other Than Personal Services

First, determine if the cost related to LGU administration can be identified separately. The cost would include:

Professional Fees - Auditing and Accounting, Payroll Processing, Corporate Legal & Management Consulting, Investment Counseling, Public Relations and Advertising.

Employment Recruiting - Help Wanted Advertising, Employment Agency Fees, Costs of Temporary Office Help.

Supplies - General Supplies, Postage and Shipping Charges, EDP Software and Supplies, Cleaning and Maintenance Supplies.

Travel - Airfare, Train, Program Vehicle Operating Expenses (Insurance Registration, Fuel, Repairs), Conferences/Convention Costs for Program Staff.

Equipment - Depreciation, Interest, Lease Expenses for Fixed Major Moveable and Minor Equipment, Repair and Maintenance Expenses of Equipment.

Property - Repairs and Maintenance, Insurance, Taxes, Utilities, Rental/Lease, Depreciation Building Improvement, Leasehold Expenses and Improvements, Mortgage Interest (do not include principal amounts).

Other - Other expenses related to the administration of the program not reported above. These should be reported by item of expense.

Service providers may be requested to submit the County Wide Cost Allocation Plan. This plan is prepared and certified by an independent, licensed or certified public accountant. This plan must include a listing of the type of service, amount and allocation base.

If LGU other than personal service costs are included with agency administration because the employee is only working a portion of their time on LGU administration, the following approach is required:

Determine the total amount of LGU personal service and fringe benefit costs; then divide that amount by the sum of your agency administration and LGU personal service and fringe benefits cost to determine the percent of LGU personal service and fringe benefits related to LGU administration. This percentage would be multiplied times other than personal service cost (e. g., OTPS, equipment and property cost) related to agency administration to determine total other than personal service cost related to LGU administration.

Example:

1. Total LGU personal service and fringe benefits $120,000
2. Total agency administration and LGU personal services and fringe benefits (includes LGU) 450,000
3. Percentage of LGU personal service and fringe benefit cost to total agency administration and LGU (line 1  line 2) .2667
4. Total agency administration and LGU OTPS costs 525,000
5. Portion of OTPS cost related to LGU administration (line 3 x line 4) 140,018
6. Total agency administration and LGU equipment cost 25,000
7. Portion of equipment cost related to LGU administration (line 3 x line 6) 6,668
8. Total agency administration and LGU property cost 120,000
9. Portion of property cost related to LGU administration (line 3 x line 8) 32,004
10. Total cost related to LGU Administration cost (lines 1, 5, 7 and 9) $298,690

Please refer to Volume XI, Section 6. 04 (Special Payments Municipal Overhead Costs) of the New York State Accounting System User Procedures for more clarification on the reimbursement of LGU administration costs. (A copy of Section 6. 04 can be found on page 35. 9.)

Following is a listing of the allocated percentages between the DMH agencies for all counties for the LGU administration expenses and revenues. These should be used when preparing your budgets and claims.

Department of Mental Hygiene
County Administration Percentage Splits as Calculated In 1988

Counties   OASAS Percentage OMH Percentage OMRDD Percentage Total 620/REG as % of Total
Albany Total 37.49 36.09 26.42 100.00
620     100.00 4.33
OT620 39.19 37.72 23.09 95.67
Allegany Total 29.30 24.08 46.62 100.00
620       0
OT620       100.00
Broome Total 26.77 28.37 44.86 100.00
620       0
OT620       100.00
Cattaraugus Total 8.74 16.61 74.65 100.00
620       0
OT620       100.00
Cayuga Total .89 14.50 84.61 100.00
620       0
OT620       100.00
Chautauqua Total 51.90 48.10 0 100.00
620       0
OT620       100.00
Chemung Total 17.53 32.79 49.68 100.00
620     100.00 9. 4
OT620 19.33 36.18 44.49 90.66
Chenango Total 7.88 21.57 70.55 100.00
620       0
OT620       100.00
Clinton Total 7.32 41.95 50.73 100.00
620     100.00 9.90
OT620 8.12 46.56 45.32 90.10
Columbia Total 6.00 20.00 74.00 100.00
620   0 100.00 37.00
OT620 9.52 31.75 58.73 63.00
Cortland Total 21.13 29.36 49.51 100.00
620       0
OT620       100.00
Delaware Total 13.14 14.07 72.79 100.00
620     *100.00 25. 70
OT620 17.68 18.94 63.38 74.30
Dutchess Total 17.40 40.00 42.60 100.00
620   0 100.00 18.75
OT620 21.41 49.22 29.37 81.25
Erie Total 30.55 51.64 17.81 100.00
620     *100.00 8.66
OT620 33.44 56.54 10.02 91.34
Essex Total 20.44 20.82 58.74 100.00
620       0
OT620       100.00
Franklin Total 9.55 11.50 78.95 100.00
620       0
OT620       100.00
Fulton Total 34.06 57.40 8.54 100.00
620       0
OT620       100.00
Genesee Total 19.19 33.82 46.99 100.00
620       0
OT620       100.00
Greene Total 6.12 31.76 62.12 100.00
620     100.00 1.83
OT620 6.24 32.35 61.41 98.17
Hamilton Total 34.68 38.16 27.16 100.00
620       0
OT620       100.00
Herkimer Total 39.02 57.76 3. 2 100.00
620       0
OT620       100.00
Jefferson Total 22.70 72.21 5.09 100.00
620       0
OT620       100.00
Lewis Total 9.33 27.06 63.61 100.00
620       0
OT620       100.00
Livingston Total 100.00 0 0 100.00
620 0 0 0 0
OT620 100.00 0 0 100.00
Madison Total 14.80 21.66 63.54 100.00
620       0
OT620       100.00
Monroe Total 0 73.34 26.66 100.00
620 0 0 100.00 2.58
OT620 0 75.28 24.72 97.42
Montgomery Total 41.61 58.39 0 100.00
620       0
OT620       100.00
Nassau Total 0 92.90 7.10 100.00
620       0
OT620       100.00
Niagara Total 22.12 56.09 21.79 100.00
620       0
OT620       100.00
Oneida Total 23.82 25.91 50.27 100.00
620       0
OT620       100.00
Onondaga Total 24.44 36.59 38.97 100.00
620     100.00 11.46
OT620 27.61 41.32 31.07 88.54
Ontario Total 9.85 32.45 57.70 100.00
620       0
OT620       100.00
Orange Total 14.99 46.41 38.60 100.00
620     100.00 12.50
OT620 16.87 52.21 30.92 87.50
Orleans Total 13.95 14.02 72.03 100.00
620       0
OT620       100.00
Oswego Total 4.05 44.10 51.85 100.00
620       0
OT620       100.00
Otsego Total 12.72 16.01 71.27 100.00
620       0
OT620       100.00
Putnam Total 16.37 57.71 25.92 100.00
620       0
OT620       100.00
Rensselaer Total 10.25 55.23 34.52 100.00
620       0
OT620       100.00
Rockland Total 13.56 56.62 29.82 100.00
620     100.00 9.30
OT620 14.95 62.43 22.62 90.70
St. Lawrence Total 58.55 27.08 14.37 100.00
620       0
OT620       100.00
Saratoga Total 20.67 30.64 48.69 100.00
620       0
OT620       100.00
Schenectady Total 19.20 17.90 62.90 100.00
620       0
OT620       100.00
Schoharie Total 18.92 15.89 65.19 100.00
620       0
OT620       100.00
Schuyler Total 22.81 25.10 52.09 100.00
620       0
OT620       100.00
Seneca Total 19.93 38.14 41.93 100.00
620       0
OT620       100.00
Steuben Total 39.84 20.37 39.79 100.00
620       0
OT620       100.00
Suffolk Total ** 68.71 31.29 100.00
620     100.00 .72
OT620   69.20 30.80 99.28
Sullivan Total 20.03 32.60 47.37 100.00
620     100.00 4.95
OT620 21.07 34.30 44.63 95.05
Tioga Total 9.21 42.34 48.45 100.00
620       0
OT620       100.00
Tompkins Total 10.49 26.81 62.70 100.00
620       0
OT620       100.00
Ulster Total 12.63 42.84 44.53 100.00
620     100.00 20.80
OT620 15.94 54.09 29.97 79.20
Warren Total 7.50 52.90 39.60 100.00
620       0
OT620       100.00
Washington Total 8.40 58.10 33.50 100.00
620       0
OT620       100.00
Wayne Total 28.74 12.34 58.92 100.00
620       0
OT620       100.00
Westchester Total 11.34 69.53 19.13 100.00
620     100.00 1.94
OT620 11.57 70.90 17.53 98.06
Wyoming Total 36.53 63.47 0 100.00
620       0
OT620       100.00
Yates Total 0 33.83 66.17 100.00
620       0
OT620       100.00

* Methodology exception for Chapter 620, actual expenditures for Chapter 620.

**Currently, separate OASAS administration may be changing back to Health Services.

The following is from the New York State Office of the State Comptroller and can be found in Volume XI, Section 6. 04 (Special Payments Municipal Overhead Costs) of the New York State Accounting System User Procedures Manual.

The Federal Office of Management and Budget's Circular 74-4 (originally issued as Circular A-87, 1968) issued in December 1976, established standards for reimbursing state and local governments for overhead costs incurred in administering Federally funded programs. The principle set forth in the circular is that the Federal government should reimburse state and local governments for the total costs of administering Federal programs, except where restricted or prohibited by law,

In the case of local governments, the circular applies only to overhead cost reimbursements to the locality by the Federal government, It does not apply to State-financed programs and does not obligate the State to change any of its policies regarding reimbursements to localities for State-aided programs, For example, such local administrative costs as legal services, personnel, budgeting, accounting, chief executives office, etc, are not automatically eligible for State aid,

Local administrative costs may be eligible for State aid reimbursement subject to the following conditions which have been agreed to by OSC and the State Division of the Budget. The conditions are:

  1. Payment for these costs cannot be made unless they were contemplated in the program costs set forth in the State's Executive Budget and approved by the State Legislature,
  2. The extent to which the State may want to participate in a particular-program will depend upon the availability of funds in the light of other priorities. Therefore, the addition of central staff overhead may result in a decision to lower the percentage contribution by the State.

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