FY24 FOR PASSPORT USERS

2 LAFAYETTE, 19TH FLOOR,

EW YORK, NY 10007

ERIC ADAMS

MAYOR

KEITH HOWARD

COMMISSIONER

NEVITA BAILEY

ASSOCIATE COMMISSIONER &

HIEF FINANCIAL OFFICER

BUREAU OF BUDGET AND FINANCE

FY24

FISCAL MANUAL

FOR PASSPORT USERS

USERS: All Human Service contracts including Adult

Literacy Discretionary and ONS Discretionary. All other

Discretionary contract types are excluded.

PASSPort Assistance

MOCS SERVICE DESK

https://mocssupport.atlassian.net/servicedesk/customer/portal/8

DYCD Help Desk

BudgetandFinanc[email protected]ov

LAST REVISED: 04.23.2024

TABLE OF CONTENTS

TABLE OF CONTENTS ................................................................................................................................................. 2

INDEX .............................................................................................................................................................................. 3

INTRODUCTION AND OVERVIEW............................................................................................................................. 5

Bureau of Budget and Finance (BBF) Overview ......................................................................................................... 6

SECTION ONE: THE BUDGET ..................................................................................................................................... 8

Budget Overview .......................................................................................................................................................... 9

General Information ..................................................................................................................................................... 9

Completing The DYCD Budget ................................................................................................................................. 13

PASSPort ITEM CATEGORIES ............................................................................................................................... 13

SECTION TWO: PURCHASE ORDER CHANGE REQUESTS (POCR) BUDGET MODIFICATIONS .................. 27

Purchase Order Change Request and Procedures Overview ...................................................................................... 28

SECTION THREE: INTERNAL CONTROLS & GENERAL...................................................................................... 29

ACCOUNTING PROCEDURES ................................................................................................................................... 29

Internal Controls & General Accounting Procedures Overview ................................................................................ 30

SECTION FOUR: PURCHASING PROCEDURES ..................................................................................................... 36

General Procurement Policies .................................................................................................................................... 37

SECTION FIVE: CREDIT/DEBIT CARDS POLICIES AND PROCEDURES ........................................................... 40

Credit/Debit Cards Policies and Procedures Overview ............................................................................................... 41

SECTION SIX: PETTY CASH POLICY ....................................................................................................................... 43

Petty Cash Fund Use Establishment ............................................................................................................................ 44

SECTION SEVEN: GENERATED INCOME ............................................................................................................... 46

Overview of Generated Income .................................................................................................................................. 47

SECTION EIGHT: PASSPORT ADVANCES, INVOICES & PAYMENTS ................................................................. 48

PASSPort – Invoices and Payments ........................................................................................................................... 49

SECTION NINE: YEAR-END CLOSEOUT ................................................................................................................. 54

Year-End Closeout Overview ..................................................................................................................................... 55

SECTION TEN: CENTRAL INSURANCE PROGRAM............................................................................................... 58

Central Insurance Program (CIP) ................................................................................................................................ 59

for Participating Providers .......................................................................................................................................... 59

SECTION ELEVEN: REPORTING & AUDIT REQUIREMENTS ............................................................................. 61

Audit ........................................................................................................................................................................... 62

INDEX

Appendix of Forms

The forms below are available on the DYCD Website.

All applicable forms must be uploaded into PASSPort including:

Budget forms can be found in the Budget Review, Insurance Compliance and Contracting Systems

(BRICCS) Unit section:

https://www1.nyc.gov/site/dycd/involved/funding-and-support/cbo-budget-review-risk-

management.page

1. FY 2024 Budget Form

2. FY 2024 Budget Reminders

3. FY 2024 Budget Reminders Non-Discretionary Contracts

4. FY 2024 Budget Modification Forms

5. FY 2024 Consultant Agreement Form

6. Consultant Agreement Modification Form

7. Subcontract Agreement Modification Form

8. Subcontract Agreement

9. Subcontract Agreement for Fiscal Conduit

10. Space Rental Cost Allocation Form

11. Insurance Sample Package

12. Broker Certification

13. DYCD (ONS) Equipment Vehicle Approval Form

14. Personnel Services Allocation Form

Back-up documentation for Invoice submission can be found on the Agency Payment Unit (APU):

https://www1.nyc.gov/site/dycd/involved/funding-and-support/cbo-contract-agency-finance-

department-payment-unit.page

1. Salaries and Wages Justification Details

2. DYCD Provider Attestation Form for Vaccine Related Expenses

3. WIOA Salaries and Wages Justification Details

4. Equipment Purchase Inventory Report

5. CSBG Invoice-Attachment Template

6. Fiscal Agent - Indirect Cost Rate Attestation Statement Form

Additional forms

 EFT Enrollment Form (Direct Deposit)

 Petty Cash Voucher (Sample)

Frequently Used Acronyms:

ACCO

Agency Chief Contracting Officer

AIR

Audit & Internal Review

APU

Agency Payment Unit

BBF

Bureau of Budget and Finance

BRICCS

Budget Review, Insurance Compliance & Contracting System

CBO

Community Based Organization

CCMS

Comprehensive Contract Management System

CDBG

Community Development Block Grant

CDU

Contract Development Unit

CIP

Central Insurance Program

COMPASS

Comprehensive After School System

CSBG

Community Service Block Grant

DYCD

Department of Youth and Community Development

EFT

Electronic Fund Transfer / Direct Deposit

EIN#

Employee Identification Number

FCCR

Financial Contract Change Request

FFR

Fiscal Field Review

FICA

Federal Insurance Contributions Act

FMS

Financial Management System

FTE

Full Time Equivalent

FUTA

Federal Unemployment Tax

HHS

Health and Human Services Accelerator

ICR

Indirect Cost Rate

ISY/Learn & Earn

In School Youth/Learn & Earn

MCTMT

Metropolitan Commuter Transportation Mobility Tax

NYCHA

New York City Housing Authority

OCA

Office of Contract Agency Audits

OMB

Office of Management & Budget

ONS

Office of Neighborhood Safety

OSY/Train & Earn

Out-of-School Youth/Train & Earn

OTPS

Other Than Personnel Services

PACE

Procurement Automations Contracts & Evaluations

PASSPort

Procurement and Sourcing Solutions Portal

PERS

Program Expense Report Summary

PIP

Payee Information Portal

Personnel Services

Purchase Order

POCR

Purchase Order Change Request

RFP

Request for Proposal

SUI

State Unemployment Insurance

WIOA

Workforce Innovation Opportunity Act

INTRODUCTION AND OVERVIEW

The Bureau of Budget and Finance (BBF) is responsible for monitoring the fiscal compliance of

DYCD’s human services contracts. Depending on the funding stream, there are different regulations

that govern the administration and expenditure of program funds. To provide guidance to our Providers,

DYCD has developed the following fiscal manuals based on program and funding sources:

 PASSPort

 HHS Accelerator Financials (HHS)

 Comprehensive Contract Management System (CCMS) / Program Expense Summary Report

(PERS)

 Workforce Innovation Opportunity Act (WIOA)

 Fiscal Agent (YMS Management Associates, Inc.)

All manuals are available on DYCD’s website under the section for CBO Financial Services.

Effective April 01, 2024, the requirements outlined in this Fiscal Manual apply to all Human

Service contracts including Adult Literacy Discretionary and ONS Discretionary. Other Discretionary

contract types are excluded.

Cost Policies and Procedures Manual

The City of New York Health and Human Services Cost Policies and Procedures Manual (“Cost

Manual”) governs the treatment and claiming of costs for health and human service contracts. If

there is a conflict between the terms of DYCD’s Fiscal Manuals and the Cost Manual, the Cost

Manual shall take precedence.

The Cost Manual was established to set guidance on indirect cost rate development and cost policies.

The Cost Manual is updated continuously. Providers must check the Nonprofit Resiliency

Committee website for the most updated version.

https://www.nyc.gov/site/nonprofits/funded-providers/nonprofit-resilience-committee-resources.page

Exceptions:

Discretionary Contracts

The maximum Indirect Cost rate allowed by DYCD for Discretionary contracts is 10%.

City Council Discretionary contracts are exempt from the Cost Manual and from the ICR

funding initiative.

Fiscal Agent Contracts

Providers under the Fiscal Agent with an Indirect Cost Rate must submit an attestation form

for reimbursement. Forms are available from the Fiscal Agent upon request and on the

DYCD website, Agency Payment Unit, Required Documents for HHS section.

BUREAU OF BUDGET AND FINANCE (BBF) OVERVIEW

BBF has three units that interact with Providers. Below is a description of each unit and its functions.

1. Budget Review, Insurance Compliance and Contracting Systems (BRICCS)

Budget Review is responsible for ensuring that budgets and budget modifications are in compliance

with City of New York and DYCD rules and regulations regarding budgetary requirements and

fiscal accountability. Budget Review is also responsible for providing final approval of all budgets

and budget modifications submitted by DYCD Providers.

Budgets and Budget Modifications must be submitted via PASSPort and will be routed to the

assigned Budget Analyst. Once approved by the Budget Analyst, budgets and budget

modifications are routed to Budget Review Supervisor for final approval.

Insurance Compliance coordinates New York City’s Central Insurance Program (CIP) for Providers

that do not have their own general liability insurance. CIP includes specific insurance (General

Liability, Worker’s Compensation and Disability Insurance and Paid Family Leave Coverage) that

pertains to DYCD funded activities. Note: If a Provider chooses to participate in CIP but has

Worker’s Compensation and Disability coverage through another carrier, then the Provider will

have to submit those certificates to DYCD, and CIP will only provide General Liability coverage.

This unit is also responsible for collecting and maintaining the general liability insurance certificate

of each Provider not participating in CIP, to ensure compliance with contract requirements and

New York City Law Department’s insurance requirements.

2. Agency Payment Unit (APU)

The Agency Payment Unit (APU) is responsible for receiving PASSPort invoices, analyzing data,

issuing payments, and providing guidance on policy decisions for contracts paid through PASSPort.

A Fiscal Analyst is assigned to each contract and is responsible for the fiscal management of the

contract. The Fiscal Analyst will serve as the Provider’s contact person for policy and payment

inquiries. All inquiries must be emailed to the Help Desk at BudgetandFinance[email protected].

Once a contract is registered with the NYC Comptroller’s office and there is an approved detailed

budget, an initial advance will be automatically initiated and processed by DYCD. Providers whose

contracts will not receive automatic advances will receive further instructions via email.

3. Contract Development Unit (CDU)

The DYCD Centralized Contracting Unit (CDU) offers specialized contract support and

guidance to providers funded under all DYCD Initiatives. CDU works directly with PACE (our

Procurement Department) and DYCD funded providers on the development of their contracts

from initiation to submission, by moving them through the City’s PASSPort Portal system to

ensure timely registration. CDU’s role in the contract management process starts once the contract

is initiated in PASSPort. CDU Contract Associates will review documents for accuracy and

completion and track the contract until it is registered. Contract Associates are also available to

assist with troubleshooting problems that may arise with PASSPort.

SECTION ONE: THE BUDGET

BUDGET OVERVIEW

After a contract is registered in PASSPort, Providers must prepare and submit a budget based on the

proposed services, funding availability and contract term.

Below are the main budget item categories used by DYCD in PASSPort:

Completed budgets are submitted via PASSPort and first routed to the assigned DYCD Budget

Compliance Associate. The budget will be reviewed by fiscal staff within DYCD who will either

approve the Budget or return it to the Provider for revision.. The final budget approved by DYCD

will be included and made a part of the Provider’s contract.

GENERAL INFORMATION

Below is information to keep in mind as a DYCD budget is completed in PASSPort.

The first header in PASSPort is the Fiscal Year Budget Information which is pre-populated with the

FY Start Date, FY End Date and the FY Budgeted Amount applicable to the contract.

Operating Period

The term of the contract (start date to end date) may overlap with more than one Fiscal Year. The

City’s Fiscal Year runs from July 1

to June 30

PASSPort

Providers will submit their budgets through PASSPort . If a contract spans multiple years, the next

year’s budget template becomes available for submission within the final quarter of the current fiscal

year.

Insurance

Providers that choose not to buy into the CIP Insurance Program must provide DYCD with a

Certificate of General Liability Insurance, as well as any renewal certificates required during the

contract term. Providers are required to have General Liability Insurance in the sum of not less than

one million dollars ($1,000,000) per occurrence to protect Providers themselves and the City of New

York and its officials and employees against claims, losses, damages, etc. Required certificates not

presented in a timely manner may result in a delay in contract registration or may result in

suspension of a contract. The policy must include theft insurance to guard against loss of equipment

because of a break-in or robbery. Each Provider must be covered for loss due to burglaries,

vandalism, fire, or floods that affect equipment or furniture that is leased or purchased with DYCD

funds. If such equipment is lost or stolen, the Provider must obtain a police report detailing the

nature of the incident as well as submit a claim to the insurance carrier. In addition, the Provider

must submit an official report to DYCD. The Provider must replace lost or stolen DYCD equipment

with funds obtained from settlement of the claim. The Insurance Compliance Unit must receive

written notification within fifteen (15) days if the policy is cancelled during the contract term.

Insurance Requirements as of FY2024

The New York City Comptroller’s Office now requires that the Certificates of General

Liability Insurance have the National Association of Insurance Commissioner (NAIC #)

included on the right of the page, next to the insurer A box.

The City Law Department requires DYCD to ensure that all the Certificates of General Liability

for our contracted Providers contain the following statement in the box labeled “Description of

Operations/Locations/Vehicles”:

“The City of New York, including its officials and employees, is included as Additional

Insured.”

Furthermore, Programs located in Department of Education (DOE), or New York City

Housing Authority (NYCHA) facilities must carry insurance that covers and names the City

of New York and DOE or NYCHA, as the case may be, as Additional Insured. The

Certificate for such a program must contain the following statement in the box labeled

“Description of Operations/Locations/Vehicles”:

“The City of New York, and the Department of Education of the City School District of the

City of New York [or New York City Housing Authority], including their officials and

employees, are included as an Additional Insured.”

Additionally, each certificate of insurance must be accompanied by a copy of the

endorsement that is used for the Provider’s policy. If the endorsement contains a box titled

“Location(s) Of Covered Operations,” then it must list the location where services are being

provided.

If services are provided in multiple locations, under “Location(s) Of Covered Operations,” the

Provider must include the following language: “All locations of operations that are listed

in the contract(s)” in lieu of having to list each location where services are provided.

Samples of the Certificates of Insurance and endorsements are available on the DYCD

website.

Providers must make available a Certificate of Insurance, together with a notarized Broker’s

Certificate, and the Additional Insured Endorsement, to DYCD. Providers must also submit

any renewal certificates required during the contract term. Required certificates not presented

in a timely manner may result in suspension of the contract. DYCD retains the right to enroll

a non-compliant Provider in CIP and to withhold 4.5% of the contract to cover the cost of

CIP participation.

Additionally, Providers must also provide proof of Workers’ Compensation, Disability

Insurance and Professional Liability (if applicable), as well as any renewal certificates

required during the contract term. Please note that the ACORD forms are not acceptable

proof of Worker’s Compensation and Disability Insurance. Acceptable forms include but

are not limited to: C-105.2, U-26.3, SI-12, GSI-105.2, DB-120.1, DB-155 and CE-200.

Providers can email these proofs of insurance documents directly to

[email protected] for review.

Automobile Liability Insurance

a. If vehicles are used in the provision of services under this Agreement, then the

Contractor shall maintain Business Automobile Liability insurance in the amount of

at least One Million Dollars ($1,000,000) for each accident combined single limit

for liability arising out of ownership, maintenance, or use of any owned, non-

owned, or hired vehicles to be used in connection with this Agreement. Coverage

shall be at least as broad as the most recently issued ISO Form CA0001.

b. If vehicles are used for transporting hazardous materials, then the Business

Automobile Liability Insurance shall be endorsed to provide pollution liability

broadened coverage for covered vehicles (endorsement CA 99 48) as well as proof of

MCS-90.”

Please submit copies of the policy to [email protected].

All other mandatory insurance policies must be made available for inspection by DYCD staff, CPA

Auditors, and/or other authorized agents.

Employers

Employer’s FICA and MTA Tax are budgeted at 8.25% of total salaries. The maximum of wages

taxed for the Social Security portion of FICA can be found at www.ssa.gov. Please note that these

rates and dollar amounts are determined by the Federal government and are subject to change.

The Metropolitan Commuter Transportation Mobility Tax (MCTMT) is imposed on employers

and/or self- employed individuals who are required to withhold New York State income tax from

wages and whose payroll expense for covered employees in the Metropolitan Commuter

Transportation District (MCTD) exceeds $312,500 in any calendar quarter. The MCTD consists of

the five boroughs of New York City.

MTA Tax Rate Effective 07/01/2023: 0.60% (0.0060)

If a lower rate applies to your organization, then kindly provide documentation upon budget

submission.

A full list of rates based on payroll expenses can be found at the following link:

https://www.tax.ny.gov/bus/mctmt/emp.htm

State Unemployment Insurance (SUI)

SUI is budgeted at the Provider’s insurance rate for up to and including the “wage base,” which is --

the amount of an employee’s wages used to calculate an employer’s Unemployment Insurance

contributions. The table below lists the wage bases for 2017-2026.

Please note: Terminated staff as well as new staff hired within the same calendar year must be

covered by SUI.

January 2017

$10,900

January 2024

$12,500

January 2018

$11,100

January 2025

$12,800

January 2019

$11,400

January 2026

$13,000

January 2020

$11,600

January 2021

$11,800

January 2022

$12,000

January 2023

$12,300

After 2026, the wage base will be adjusted on the first day of January each year to 16 percent of the

state's average annual wage.

Medical Benefits, Life Insurance, Pension, Workers Compensation, and Disability costs are to be

calculated based upon the Provider’s policies.

COMPLETING THE DYCD BUDGET

Organizations can create and modify budgets of their active contracts in PASSPort, using Purchase

Orders and Purchase Order Change Request (POCRs.)

The user creating and modifying budgets must have the Vendor Admin or Vendor Financial L2

roles in PASSPort.

Below are the Item Categories applicable to DYCD contracts available in the detailed budget in

PASSPort and a description of each category.

PASSPORT ITEM CATEGORIES

Accounting Costs

Expenses for financial record-keeping, reporting, and analysis. This includes hiring Accountants and

Bookkeepers, accounting software subscriptions, and related expenditures.

Allowance

Health and Human Service contracts increased the contract authority by 25%; however, the full

amount reflected in the allowance are not funds Providers immediately have access to. As additional

funding is awarded to an existing contract and the contingency amendment is registered, DYCD will

process a financial contract change request (FCCR) to the contract in PASSPort to reflect the

additional funds. This will appear in PASSPort as a Change Order Budget. When submitting a

Change Order Budget, please include the PDF emailed to your organization. Budgets will not be

approved without the PDF included in the PASSPort budget submission.

Audit Expense

Expenses for financial review services, including fees for external auditors, internal audit teams,

consulting, and related expenses

Consultants

A consultant hired on a health and human service contract is often a subject matter expert and does

not perform or directly deliver a part of the prime contractor’s programmatic contractual obligations.

This means anyone assisting the Provider and not dealing directly with participants (ex: a STEM

curriculum developer). Consultants cannot be salaried employees of the Provider. For each

consultant listed, a signed Consultant Agreement must be uploaded to the Documents tab in the

budget. Consultants retained by a Provider must enter into a written agreement detailing the specific

tasks to be performed. Consultant Agreements and invoices must be maintained by the Provider for

at least six (6) years. Consultant invoices must include the following details: rate, hours, type of

services, date of service, consultant signature, and approval by the Provider’s Executive Director or

his/her designee.

Hourly Employees

For DYCD contracts, an Hourly Employee is defined as someone who is scheduled to work less than

35 hours per week and/or is paid on an hourly basis and retains a part-time employment status with

the Provider. An hourly employee is allowed to work more than 35 hours per week during a specific

season (e.g., summer) but must maintain an overall part-time status.

New York City Minimum Wage is $16/hr.

Indirect Rate

Indirect Rate (Indirect Costs)

Effective July 1, 2019, The City of New York Health and Human Services Cost Policies and

Procedures Manual (“Cost Manual”) governs the treatment and claiming of costs for health and

human service contracts. If there is a conflict between the terms of DYCD’s Fiscal Manuals and

the Cost Manual, the Cost Manual shall take precedence. The Cost Manual was established to set

guidance on indirect cost rate development and cost policies. The Cost Manual can be found at

the link below:

For additional information on Indirect Costs, refer to the Nonprofit Resiliency Committee

Indirect Implementation.

https://www1.nyc.gov/site/nonprofits/funded-providers/indirect-implementation.page

Discretionary Contracts

The maximum Indirect Cost rate allowed by DYCD for Discretionary contracts is 10% of the

cleared amount. City Council Discretionary contracts are exempt from the Cost Manual and from

the ICR funding initiative.

Fiscal Agent Contracts

Providers under the Fiscal Agent with an Indirect Cost Rate must submit an attestation form for

reimbursement.

Legal Costs

Legal costs cover expenses for legal services vital to ensuring compliance, risk management, and

protection of organizational interests. Funds cannot be used for litigation expenses, legal settlements,

or legal judgements.

Operations and Support

Consumable supplies that do not last or are not permanent in nature. This category includes

office and maintenance supplies such as pens, stationery, chalk, erasers, towels, cleaning

supplies and books. This category also includes expenses for background checks of the

Provider’s employees and Facility Safety inspections. The cost of waste and recycling removal

services may also be included in this category. Costs for facilities and building maintenance may

also be included in this category. Other costs that fall within this category are cost of materials

associated with recruitment such as flyers, newspaper, and online advertisements for

Participants; costs of General Liability, Property, and Other Insurance charged to a DYCD

contract; costs of vehicle insurance associated with the DYCD contract. Providers must charge

expenses for business-owned vehicles such as car maintenance, gasoline, and tolls to this

category. Provider-owned vehicles used for DYCD purposes must be co-insured with the City

of New York as named beneficiary. Tickets for traffic violations may not be paid with funds

from DYCD contracts; Standard banking fees associated with the DYCD contract. and may not

be paid with funds from DYCD contracts.

Office of Neighborhood Safety

Due to the nature of the services provided under Office of Neighborhood Safety (ONS) contracts,

certain emergency participant expenses are allowable which are otherwise not allowable for other

DYCD contracts. These emergency participant expenses are expected to be infrequent and only

required in the most critical circumstances to prevent loss of life and or an imminent threat of

violence.

Operations and Support: Client Stipends

Unless the RFP or other contract documents specifically require use of stipends as part of the

program design, the DYCD funded Program must as part of the budget approval process explain, in

writing, how the type and amount of stipend were selected and how the stipend advance the

program. To ensure fair access to and fair distribution of stipends, DYCD funded programs seeking

to use a stipend must also provide written notification to participants and volunteers regarding the

stipend policy, at the outset of program participation. The notice must explain how the stipend will

work. In addition, a copy of the notice must be provided to DYCD, along with the written

explanation of the proposed stipend program being submitted as part of the budget approval process.

Programs will not be able to use program funds to pay volunteers (including mentors) for their time

volunteering. Instead, Programs may thank volunteers by offering to defray the cost of them

travelling by public transportation to the program location, by providing a subsidized meal or snack,

or by recognizing volunteers with a certificate. All use of program funds for payment of stipends are

subject to review by DYCD program staff and are also subject to audit by DYCD or DYCD’s

oversight agencies. Adequate records of expenses for stipends must be maintained, and those will

include invoices for any items purchased and receipts signed by the specific individuals receiving

any item.

In addition, appropriate safeguards must be followed. For example, items with a cash value, such as

gift cards, must be maintained in a safe or other secure location. In all cases, proper procedures must

be followed to make sure that only the intended recipients of the stipend or incentive actually receive

them and then that the stipends are paid/distributed in accordance with the terms of the plan

approved by DYCD.

Please note that for programs funded with federal funds, additional limitations do apply, including prohibition

of the use of federal funds for entertainment costs, compliance with the federal cost’s principles in 2 CFR Part

200, and programmatic guidelines and requirements that may be provided by certain programs.

Operations and Support: Client Transportation

All participant-related travel expenses, e.g., bus trips and local travel, are to be budgeted under this

category. Bus companies used for transporting participants must be insured.

Operations and Support: Equipment

Equipment purchases are supplies that are durable or permanent in nature, such as furniture, printers,

fax machines, televisions, cameras, and computers. All equipment purchased with DYCD funds

must be listed on the budget. All equipment and/or furniture purchased with DYCD funds is the

property of the New York City Department of Youth and Community Development and must be

tagged “Property of DYCD.” At the end of the contract, all non-depreciated equipment that still has

a useful life and was purchased with DYCD funds must be returned if requested by DYCD. DYCD

will consider requests for continued use or other recommended disposition of such equipment, upon

termination or nonrenewal of a contract. Contact the assigned Contract Manager regarding continued

use or other disposition of equipment.

An Equipment Purchase Inventory report will be required at the time of invoice submission.

For equipment $500 or more the following must be provided:

*This also applies to CDBG funded contracts for equipment valued at $250 or more.

1. Equipment Amount

2. Invoice Amount

3. Item description

4. Serial number

5. Model number

6. Manufacturer

7. Date Purchase

8. Delivery Date

For equipment under $500 or for CDBG funded contracts for equipment valued under $250 the

following must be provided:

1. Equipment Amount

2. Invoice Amount

3. Item description

4. Manufacturer

5. Date Purchase

6. Delivery Date

WIOA Equipment Requirements

Equipment valued at $5,000 or more may not be budgeted or purchased without prior approval

from DYCD, which is also subject to obtaining approval from the New York State Department of

Labor (NYS DOL). Accordingly, Providers will not be reimbursed the cost of any Equipment

purchased without such prior approvals.

The Equipment category also includes costs associated with equipment rental, lease, licensing

fees, computer software, repair and maintenance of office/programmatic equipment used in the

performance of the Provider’s operation. All items must be listed in the budget. Maintenance

service contracts and payments for equipment repair and maintenance may also be reflected in

this category. (Equipment or furniture leased with an option to buy may also become the property

of DYCD at the end of the contract.)

Office of Neighborhood Safety

Due to the nature of the services provided under Office of Neighborhood Safety (ONS) contracts,

Vehicle Purchases are allowable which are otherwise not allowable for other DYCD contracts. A

signed Equipment Vehicle Approval form is required prior to purchase. The completed form must be

submitted to DYCD Program Operations for approval. The form is available on the DYCD website,

Budget Review & Risk Management page.

Operations and Support: Incentive Payment/Bonus

Unless the RFP or other contract documents specifically require use of incentives as part of the program

design, the DYCD funded Program must as part of the budget approval process explain, in writing, how the

type and amount of incentive were selected and how the incentive advance the program. To ensure fair

access to and fair distribution of incentives, DYCD funded programs seeking to use an incentive must also

provide written notification to participants and volunteers regarding the incentive policy, at the outset of

program participation. The notice must explain how the incentive will work. In addition, a copy of the

notice must be provided to DYCD, along with the written explanation of the proposed stipend/incentive

program being submitted as part of the budget approval process.

Programs will not be able to use program funds to pay volunteers (including mentors) for their time

volunteering. Instead, Programs may thank volunteers by offering to defray the cost of them travelling by

public transportation to the program location, by providing a subsidized meal or snack, or by recognizing

volunteers with a certificate. All use of program funds for payment of stipends and incentives are subject to

review by DYCD program staff and are also subject to audit by DYCD or DYCD’s oversight agencies.

Adequate records of expenses for stipends and incentives must be maintained, and those will include

invoices for any items purchased and receipts signed by the specific individuals receiving any item.

In addition, appropriate safeguards must be followed. For example, items with a cash value, such as gift

cards, must be maintained in a safe or other secure location. In all cases, proper procedures must be

followed to make sure that only the intended recipients of the incentive actually receive and that the

incentives are paid/distributed in accordance with the terms of the plan approved by DYCD. Please note

that for programs funded with federal funds, additional limitations do apply, including prohibition of the

use of federal funds for entertainment costs, compliance with the federal cost’s principles in 2 CFR Part

200, and programmatic guidelines and requirements that may be provided by certain programs

Other

Any allocation that cannot be placed in other defined categories. A detailed explanation must be provided.

OTPS Contracted Services: Sub-Contractors

A Subcontractor hired on a health and human service contract is hired to perform or directly deliver a part

of the prime contractor’s programmatic contractual obligations. This means that anyone dealing directly

with participants, whether an individual or an entity, (ex: a STEM teacher that teaches a robotics class).

Subcontractors are to be listed in the Subcontractor section of the Contracted Services tab of the Budget.

For each Subcontractor listed, a signed Subcontractor Agreement must be uploaded to the Documents tab

in the budget.

Subcontractor Approval Process

If a Provider proposes to engage a Subcontractor on a human service contract,

DYCD requires:

1. The Subcontractor to be listed in the City’s Payee Information Portal (PIP) nyc.gov/pip and

2. The Provider must identify the Subcontractor through the budget and invoice process. The Provider

shall attach the Subcontract agreement to the fiscal year budget.

For any Subcontractor of more than $20,000*, DYCD also requires:

1. The Subcontractor to be prequalified in PASSPort, and

2. For subcontract agreements $20K and over, the CBO must submit the agreement to the

Program Team for transmittal to the Procurement Unit.

3. The CBO must upload the Subcontract Agreement with a copy of the letter of

confirmation from DYCD’s PACE unit to the fiscal year budget.

Subcontractors are approved for work on a human service contract when:

1. DYCD’s PACE Unit approves the subcontractor in PIP.

2. The Provider has received a letter of confirmation from DYCD’s PACE unit

The Provider should not engage a subcontractor until DYCD has approved that subcontractor.

The prime vendor is responsible for listing all payments to subcontractors in PIP.

*For determining the value of a subcontract, all subcontracts with the same

subcontractor shall be aggregated.

PASSPort requirement also applies to Subcontractors receiving more than $100,000 in City

dollars.

DYCD offers a standard Subcontract Agreement template for human service contracts that

Providers may use but are not required to use.

For Subcontract agreements pending approval, please allocate funds to the Unallocated Funds category.

Once the Subcontractor agreement is approved, the provider must complete a POCR to reallocate funds

to the OTPS Contracted Services: Subcontractors category.

Personnel Services: Fringe Benefits

The maximum rate allowed for fringe benefits is 35% of total salaries. The rate includes all benefits under

the Fringe Benefits category. Fringe Benefits may include FICA, MTA Tax, Unemployment Insurance,

Workers Compensation, Disability, Life Insurance, Pension, and Medical Benefits.

Effective fiscal year 2024, the minimum Fringe Benefit rate of 8.25% for FICA and MTA tax is required

for all contracts. If a Provider utilizes the service of the Fiscal Agent, then the minimum allocation for

fringe is 13.25%. This represents 7.65% for FICA, 0.6% for MTA Tax plus a 5% estimated

Unemployment Insurance rate.

Professional Services

Expenses associated with specialized expertise and support essential for the operation which includes but is

not limited to training and professional development programs, outsourced administrative support.

Additionally, it may encompass expenses for licensing, accreditation, and regulatory compliance services.

Costs for Vendors, Consultant and Sub-contractor must NOT be allocated to this line.

Allocations for AmeriCorps or City Year must be allocated to this category.

Rent

Space costs include expenses associated with paying for space necessary for the operation of a

program. Space Cost is separated into two subcategories that will require additional fields:

Public School

Opening fees and room rentals paid to the Department of Education for school rental costs.

Providers must complete a Space Cost Allocation Plan and provide the DOE permit.

Space Cost/Other

All rent, mortgage and other expenses associated with the use of a facility.

Along with the budget, Providers are required to upload into the Documents tab the following:

1. A copy of their mortgage, lease, or month-to-month rental agreement.

2. A copy of their floor plan (annotated with dimensions of all space leased/mortgaged/rented

and the dimensions of just the space used by the program funded by the contract).

3. A completed Space Cost Allocation Form.

The FY2024 Space Cost Allocation form is available on DYCD’s website, under Budget Forms,

Fiscal Year 2024. Note that the form was revised in FY 2023 and the revised version must be

submitted with all budgets that include space costs.

The updated Space Cost Allocation form includes:

1. An expanded section to document the calculation used to determine the space cost dollar amount

allocated to the contract budget.

2. A second page, titled Space Cost Allocation Attestation. The Attestation captures information about

the landlord/lessor of the property. The Attestation must be completed (completion includes

checking at least one of the six boxes on the form and being signed and dated by the Executive

Director).

No renovation or construction projects may be paid for with funds from DYCD contracts unless

otherwise specified in the contract. Some repairs may be allowed, subject to prior written approval

by DYCD. Rent or mortgage expense greater than the amount stated in the mortgage, lease, or

month-to-month rental agreement is not allowed.

Salaried Employees

For DYCD contracts, a Salaried Employee is defined as a full-time employee who works 35 hours or

more per week, is paid on a salary or hourly basis and retains a full-time position with the Provider. A

full-time employee shall not be claimed as a part-time employee because their hours are cost-allocated

between contracts. For example, if the employee is full-time and is scheduled to work 20% of their time

on a DYCD contract, they are still considered a full-time employee per DYCD claiming purposes.

Limitation on Salary for Federally Funded Contracts (CSBG, CDGB and WIOA)

The limitation on salary compensation which can be charged to federally funded contracts is based on

Federal Executive Pay Level II under US Public Law 109-234 enacted in 2006. The annual rate for

Federal Executive Pay Level II is $212,100 (Effective January 2023). Individuals who have a

percentage of their total salary cost allocated are limited to their cost allocated percentage applied to the

Executive Pay Level II rate. For example, someone who earns $200,000 that spends 50% of their time

on is eligible to have up to $98,650, not $100,000.

The pay level may change annually; refer to this website for updates:

https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2023/executive-senior-level

Salaries & Wages chart can be obtained below:

https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2023/EX.pdf

Cost Allocation

An employee paid with DYCD funds must perform work related to the DYCD contract.

Administrative staff performing work under DYCD contracts must be cost-allocated under Personnel

Services or budgeted under the Indirect Costs rate category. Providers may have employees work

under multiple program budgets. Actual hours of service are the preferred statistical basis upon

which to allocate salaries and fringe benefits for shared staff who work on multiple programs.

Providers must maintain appropriate documentation reflecting the hours used in this allocation.

Acceptable documentation may include payroll records or time studies. The total of all amounts

budgeted to one staff person (including programs not funded by DYCD) cannot exceed 100%.

Time sheets for all full-time and part-time employees must be dated and signed by the employee and the

employee’s supervisor and are subject to review by DYCD and its designees.

The Executive Director’s time sheet must be signed by a member of the Board of Directors. The

required director’s signature may NOT be replaced by the signature of another member of management

(e.g., comptroller or accountant).

Transportation

Transportation costs refer to costs incurred for local travel by the employees to conduct official business

related to the DYCD contract. Travel may be by public transportation, by a Provider’s vehicle, or personal

automobiles used for Provider business. Costs for the use of a personal automobile will be reimbursed at

the maximum rate provided on the IRS website IRS Standard Mileage Rate. A mileage log must be

maintained for both personal and business-owned vehicles used to conduct business related to the funded

program. Tickets for traffic violations may not be paid for with funds from DYCD contracts. Additionally,

costs for employees to commute to and from work may not be paid with funds from DYCD contracts.

Office of Neighborhood Safety (ONS)

Office of Neighborhood Safety (ONS) contracts are exempt from this requirement.

Due to the nature of services provided under the Office of Neighborhood Safety (ONS), certain

emergency expenses in local transportation for uber and cabs are allowable, which are otherwise

not allowable for other DYCD contracts. These emergency staff expenses are expected to be

infrequent and only required in the most critical circumstances to prevent loss of life and or an

imminent threat of violence.

Out of Town travel (outside of the five boroughs) costs may be allowed for expenses that are relevant

to the program, such as training, professional development, and conferences.

Expenses include transportation, accommodations, and meals. Pre-Approval is required.

Unallocated Funds

Providers must identify the category and allocation being budgeted under Unallocated Funds.

The only categories allowed under Unallocated Funds are:

1. Central Insurance Program (CIP)

Providers have the option of buying into New York City’s CIP. The package offered under this program

includes General Liability Insurance, Workers Compensation, and Disability Insurance and Family Leave

Coverage. The insurance does not cover property loss and theft insurance. The cost of the CIP Insurance

Package is 4.5% of the contract’s total budget and must be allocated in the Unallocated Funds tab. CIP

cannot be purchased for a portion of the contract term. Entering the Central Insurance Program covers the

Provider for the full contract year.

2. Subcontractor Agreements (Pending Approval)

Allocations for subcontractors that have not yet been identified or for those whose agreements are

pending approval, must go into the Unallocated Funds tab. Once the Subcontractor has been

identified, or the agreement, if applicable, has been approved, the Provider must modify these

funds into the Subcontractor line on the Contracted Services tab. All applicable subcontract (s)

must be approved prior to the start of subcontractor services.

3. Fiscal Agent Services and associated Fiscal Agent Fees)

DYCD has contracted with a firm to provide fiscal agent services to DYCD funded Providers.

Providers have the option of purchasing the services of the Fiscal Agent who will:

 Establish financial records.

 Maintain and report on available Provider budget balance.

 Verify invoices.

 Provide payroll services and personnel reporting.

 Ensure the timely filing and payment of employment-related taxes.

 Ensure that Accounts Payable and Ledger system and activities are in accordance with

generally accepted accounting practices and procedures.

 File Federal Tax Form 941 and 941B.

 Prepare W2s, W3s, and 1099s.

Fiscal Agent Fees

Fees for using the services of the Fiscal Agent must be allocated in the Unallocated Funds tab in

accordance with the scale indicated below. Separate fees must be allocated for each individual site

for master contracts with multiple sites. Effective 07/01/18 the Fiscal agent fee has changed, see

below.

DOLLAR VALUE FISCAL AGENT SERVICE FEES

$2,500 - $25,000 $420

$25,001 and Over 3% of each sub budget

Note: There is no Fiscal Agent fee required for Providers with standalone Discretionary contracts,

valued under $25,000. A Provider that chooses to be placed under, or is mandated to use, the services

of the Fiscal Agent, must have all its non WIOA DYCD contracts administered by the Fiscal Agent.

The Fiscal Agent fees are centrally administered costs and are not reimbursable. Those agencies

mandated for Fiscal Agent services will receive written notification from DYCD.

4. Rent (pending duly executed lease agreement)

5. Consultant (pending duly executed agreement)

6. Incentive Plans (WIOA - pending approval)

7. Vehicle Purchase Request (pending approval)

These items are covered and paid for by DYCD. The costs are non-reimbursable, and Providers will not

have access to these funds.

Once agreements are approved and duly executed, Providers may process a POCR/budget modification

and allocate these costs to the appropriate budget item category.

Utilities

This category includes costs such as Telephone; Electric; Water/Sewer; Oil-Heating; Gas-Heating; Security

Systems; Internet Connectivity; Mobile Phones; Bundled Communication.

Vendors

A vendor hired on a health and human service contract provides non-programmatic services or goods.

Examples of services provided by vendors are cleaning and security. Vendor Agreements must be

maintained on file with the Provider for a minimum of six (6) years. Providers must follow the purchasing

procedures outlined in the Fiscal Manual for the procurement of services from vendors (Section 4)

PROVIDERS: COMPLETING

THE

DYCD

BUDGET

A Provider’s base contract or amendment will be registered with a simplified budget. Once it is

registered, the Provider will be required to submit a Purchase Order Chage Request (POCR) to

reallocate funds to specific budget item categories applicable to their contract.

Once the POCR is initiated, the first step is to void the original budget used for registration.

Step 1: Void Budget Lines

To edit or void an existing line, click the pencil icon on the left of the budget line. This will open

an Add Budget Line window.

In the Add Budget Line window, remove information from the following text fields in the

Budget Line Information section:



Sub-budget



Sub Item Category



Additional Information

For required fields under the Budget Line Information section:



Click on the Item Category drop-down field and select Other.



Click on the Budget Line Item text field and enter "Void Line".

For fields under the Budget Financials Section:



Click on the Quantity text field and enter 0.

Click the Save and Close button to close the Add Budget Line window.

Step 2: Add Budget Lines

To add new budget lines individually, click the Add Budget Line button. An Add Budget

Line window will pop up.

Fill out the required information in the Budget Line Information section:

i. Migrated budgets of site-based contracts will reflect the sites in

PASSPort on every budgeted line. When creating POCRs to these

budgets, remove the site names from the sub-budget title.

ii. For example: The sub-budget name will change from Contract number

- budget code/object code/u of a - site to Contract number - budget

code/object code/u of a

• 12345 - 9562/6950/312 - P.S. 30 to 12345 –

9562/6950/312

iii. For a non-site-based contract, the sub budget column should

reflect: 12345 - 9562/6950/312

b. For Tax Levy contracts, the Sub-Budget field must be in the following format:

Contract number - budget code/object code/u of a

i. Example for contract 12345 funded by budget code 9562, object code

6950, u of a 312

ii. The sub budget column should reflect: 12345 - 9562/6950/312

c. Federally funded contracts must include the ALN# in the following format:

Contract number/budget code/object code/u of a - ALN#[Number]

i. Example for contract 12345 funded by budget code 9562, object code

650, u of a 312, funded by WIOA ISY 1015 with ALN# 93.75

ii. The sub budget column would reflect: 12345 - 9562/6950/312 - ALN#93.75

2. If applicable, complete “Personnel Services Allocation Form” providing appropriate title codes,

number of positions, and where applicable the annual salary and/or hourly rate.

a. Providers should consolidate Personnel Services line items based on title code

while preserving a clear differentiation between salary structures. Hourly

positions should not be consolidated with salaried positions and not combined

across sub-budgets. For example: Two hourly-paid Accountants can be

consolidated on one line and two salaried Accountants can be consolidated on one

line, but the hourly paid and salaried paid Accountants cannot be consolidated on

one line. If one of the salaried accountants is being allocated to budget code 9825,

and the other to 3625, they must not be combined.

b. Additional Information text box must be used to reflect # of positions for

personnel services.

 Click the Item Category drop-down field and select a category that describes your

deliverable.

 Click the Budget Line Item text field and enter a description for your deliverable.

o Ultrasonic Cleaning System – 22 gal.

o Personnel Service Salaried or Hourly

 Click the Good/Service drop-down field and select ‘Service’. Only the

“service” category is applicable to DYCD contracts. This field is

mandatory, and your budget cannot be approved if it is not selected.

Step 3: Upload Backup Documentation

DYCD requires submission of backup documentation if a Provider has funding allocation in the

categories listed below. If not applicable, proceed to step 4.

In the Overview Tab, scroll down to Vendor Files, click the “Click or Drag to add files” to upload

required documents.

Budget Allocation Required Attachment

Rent Space Cost Allocation Form

Learn and Earn Learn and Earn Work Experience Tracker

Train and Earn Train and Earn Work Experience Tracker

Personnel Service Personnel Services Allocation Form

Consultants Consultant Agreement

Subcontractor Subcontractor Agreement

Vehicle Purchase Vehicle Purchase Approval Form

Fill out the required information in the Budget Financials Section:



Click the Quantity text field and enter the budget amount.



Click the Unit Price text field and enter 1. Setting Unit Price to 1 is required since the

unit price is not editable after submission.



Quantity should reflect the dollar amount being allocated to the contract for that line

item.

Click the Save and Close button near the top of the Add Budget Line window.

If necessary, add more budget lines to ensure the Total Budgeted Amount matches the FY

Budgeted Amount.



Click the Add Budget Line button and repeat the process for additional

deliverables until the budget is balanced.



For more detailed budgets, see Using Upload Budget below.

Using Download/Upload Budget Feature

On the Budget page, find the Detailed FY Budget section.

Click the Download Budget button. An Excel template will be downloaded that can be used

to process several budget lines at once. The columns for required information will be in red.

Follow steps listed above for guidance on the budget structure requirements.

Providers will receive emails from DYCD which will provide a breakdown of contract

funding. It’s important that the total of each budget code in the contract funding letter

matches the total allocated in the budget in PASSPort.

After completing the budget, proceed to uploading the budget using the Upload Budget

button. In order for the upload to work correctly, do not change the name of the file.

The budget file being uploaded must have the same name as the downloaded budget. The

information will then be listed as budget lines in the Detailed FY Budget section.

Once satisfied with the budget changes, click the Submit for Approval button near the top

of the page to begin the review and approval process by DYCD.

SECTION TWO: PURCHASE ORDER

CHANGE REQUESTS (POCR) BUDGET

MODIFICATIONS

PURCHASE ORDER CHANGE REQUEST AND

PROCEDURES OVERVIEW

A Purchase Order Change Request (POCR) does not increase or decrease a contract award amount; it

serves to reallocate money between line items of an already approved budget. Changes to the

approved and registered purchase order (budget) may be submitted only as they relate directly to the

accomplishment of services required in the contract. Once a POCR is initiated in PASSPort,

Providers will not be allowed to submit invoices and will not be able to be paid until the change

order request is approved. The “Request for Modification” form is no longer required for POCR

submission.

Questions regarding the purchase order change request process must be directed to your DYCD

Program Manager or Budget Compliance Associate.

SECTION THREE: INTERNAL

CONTROLS & GENERAL

ACCOUNTING PROCEDURES

INTERNAL CONTROLS & GENERAL ACCOUNTING

PROCEDURES OVERVIEW

The Provider’s executive and management staff are responsible for establishing and maintaining an

internal control structure. Internal controls will vary from one Provider to the next, depending on

such factors as their size, nature of operations and objectives. However, the need for internal

controls remains the same; a Provider should find the most efficient and effective way of

implementing its needed internal control procedures.

The following are examples of internal control activities:

 Segregation of Duties: Duties and responsibilities must be divided among different staff

members to reduce the risk of error or fraud. In large Providers, there are often different

staff members responsible for procurement and for payment.

 Proper Execution of Transactions and Events: Transactions and significant events must

be authorized only by persons acting within the scope of their authority.

 Documentation of Transactions: All transactions need to be clearly documented, and all

documents must be readily available for inspection.

 Secure Physical and Financial Assets: A Provider must safeguard its assets, including

cash and equipment. Periodic inventory checks will help prevent loss or unauthorized

use of the Provider’s assets.

Retention of Accounting Records

In accordance with City contract requirements, Providers must retain all contract related financial

records, including auditors’ reports, for six (6) years after the final invoice of the contract is paid.

Providers are subject to audit/or investigation for such an additional period.

Bookkeeping Practices and Procedures

Providers must maintain separate accounting records for funds received through each contract with

DYCD. Separate accounting records means that Providers must create separate general ledgers and

trial balances, or use sub-accounts, to separate funds received through each contract with DYCD.

Contracts with DYCD must be tracked in separate accounting records from each other and must be

tracked in separate accounting records from all other Provider funding sources.

Accounting records must be established and maintained in accordance with Generally Accepted

Accounting Principles. It is essential that the Provider maintains accurate, complete, and permanent

books and records, available for inspection by a DYCD staff member or designee.

DYCD staff and its representatives will conduct both announced and unannounced site visits to

Providers during the contract term to ensure that the books and records are being appropriately

maintained.

Timesheets

Timesheets must be completed for all full and part-time employees. Each timesheet must be signed

and dated by the employee and the employee’s supervisor. The Executive Director’s timesheet must

be reviewed and approved by a member of the Board of Directors. Electronic timesheets may be

maintained if they are certified as accurate by the signature of the Executive Director or a senior

level management designee.

Cost Allocation

Cost allocation is the distribution of one cost across multiple funded contracts. A cost allocation

methodology identifies the type of expenses that are being claimed and establishes a basis for

allocating costs to business units or cost centers based on an appropriate allotment of such cost.

Requirement

Each Provider must develop a written cost allocation plan. The plan must include an

explanation of its methodology detailing the basis used in allocating cost to its various

DYCD programs. Time distribution records must reflect an after-the-fact determination of

the actual activity of each employee. Cost allocation is established on the premise that

Providers maintain an adequate accounting system and accounting records to document costs

and support claims. Allocation methods and distribution of cost must be based on a generally

accepted accounting practice prescribed by Federal Uniform Guidance/OMB Super Circular

regulatory guidance and in accordance with Generally Accepted Accounting Practice. Refer

to Office of Management and Budget for guidance: 2 CFR Chapters I, and Chapter II, Parts

200, 215, 220, 225, and 230 Uniform Administrative Requirements, Cost Principles, and

Audit Requirements for Federal Awards and promptly made available to DYCD or its

contracted CPA firms.

Approach

When allocating cost to a particular contract the following must be considered:

 Allowable direct costs that apply to only one program must be charged directly to that

program or contract and cannot be cost allocated.

 Allowable direct costs that can be identified across multiple programs must be pro-

rated using a base most appropriate to the particular cost being pro-rated.

 Allowable indirect costs (cost that benefit all programs and cannot be identified to a

specific program) are allocated to programs, grants, etc., using a base that results in an

equitable distribution.

 A Provider is not allowed to charge more than 100% of a cost across programs.

Documentation

Regardless of the cost allocation method used, expenses claimed must be supported by

documentation of cost distribution showing the benefit each program received. Please note

that approval of a DYCD budget does NOT constitute approval of a Provider’s cost

allocation plan and method used.

A reasonable cost allocation plan must be presented to show the basis used to allocate the

amounts incurred in each of the funded programs. The basis applied cannot be based on the

budgeted amount; rather it must be based on the benefit derived by each program from that

particular expense (e.g., time, space, usage, etc.).

Audit

All expenses submitted for reimbursement are subject to an audit to assess whether the

expenses are allowable and reasonable based on the cost allocation method used.

Unreasonable cost allocations will result in disallowed costs. See Section Eleven for

additional details on audit requirements.

Compliance with the Requirements of the Non-profit Revitalization Act of 2013

as amended

DYCD expects all funded Providers to be in compliance with the new requirements of the New York

Not-for-Profit Corporation Law, as mandated by the Non-Profit Revitalization Act (the Act) signed

into law in New York in 2013 and subsequent amendments passed in 2016. Compliance with the

requirements of the Nonprofit Revitalization Act is subject to verification by DYCD or its contracted

audit firms.

There are many publicly available resources to help Providers understand the new governance

requirements of New York law (which go beyond the points highlighted here). DYCD can suggest

possible resources, if necessary. For further information please visit the New York Attorney

General's Charities of Bureau website: http://www.charitiesnys.com.

Conflict of Interest

In particular (and without limitation), DYCD expects all funded not-for-profit Providers to

maintain and follow a conflict-of-interest policy as required by the act S 715-A Conflict of

Interest Policy,

Whistleblower Compliance Requirements

Providers with 20 or more employees and with prior year annual revenue in excess of

$1,000,000, are required to have a whistleblower policy in accordance with the Non-Profit

Revitalization Act S-715-B Whistleblower Policy.

Audit Requirement

Providers are required to be in compliance with the requirement to file an independent

certified public accountant's audit/review report to the Charities Bureau and submission to

DYCD. See Section Eleven for further detail on audit requirements.

Employees Personnel Files

Employee personnel files must include all pertinent documents used in the hiring process. The hiring

documents must include at the minimum, the following documents:

 Employment Application

 I-9 Employment Eligibility Verification

 Authorized working papers for individual under 18

 Job Description

 W-4 form

 Resume

 Copy of Educational Degree, Diplomas or Certificate

 Background Check

 Fingerprint Clearance (For employees with direct contact with youth or as required in the contract)

 Personnel Action Form

Resigned Employees

Employee vacation and sick time accumulated during the course of employment are allowed to be

paid to that employee under the DYCD contract upon separation from employment, when such

separation occurs during the contract operating period and the Provider has a policy allowing for

payment for such time. If the employee’s time is cost allocated, it must be charged accordingly.

Vendor Invoices

All invoices maintained as documentation to support a claim must be in their original form and

must display the Provider’s name as the recipient of the goods/services. All invoices must be

maintained and made available for review, in accordance with Generally Accepted Accounting

Principles and the record-keeping requirements of the contract. This includes online purchases such

as from Amazon, etc.

In the event that an allowable purchase is made by a staff member, itemized receipts and proof of

payment are required for staff reimbursement.

Bank Accounts

Providers are not required to maintain separate bank accounts for each contract award. Electronic

Funds Transfers (EFT) of the contract award can now be made to a single Provider bank account.

EFT/Direct Deposit

 Enroll in the EFT/Direct Deposit program online via the Payee Information Portal (PIP) at

nyc.gov/PIP. PIP is now available for vendors to set up a single bank account for all vendor

payments made from the New York City Financial Management System (FMS). Both

existing and new city vendors can sign up for EFT/Direct Deposit through PIP.

 Existing EFT enabled vendors with a PIP User ID and password can update their bank

account information in PIP.

 New vendors doing business with the City of New York can create a new PIP account and

vendor code, and then add their bank account information for EFT/Direct Deposit

immediately.

 Providers are required to transfer all DYCD funds from the EFT account to the appropriate

payroll and general accounts. Bank reconciliation of all accounts must be prepared

monthly, reviewed by upper management, and kept on file for examination by DYCD or its

designees.

Signatories

DYCD requires that a Provider have at least two signatures on each check. Every Provider is

expected to comply with this policy unless it has received prior written authorization from DYCD

stating otherwise.

Cash Flow

The cash flow process is initiated following registration of the contract with the New York City

Comptroller’s Office. DYCD is unable to release funds until the contract is registered. An initial

advance equivalent to three months of the Provider’s approved budget will be processed PASSPort

upon contract registration. If the contract term is less than six (6) months, then the initial advance

cannot exceed 50% of the approved budget. Funds will be electronically transferred to the accounts

of Providers enrolled in the EFT Program.

Disbursements

Disbursements, except those from petty cash funds and payments with the Provider’s corporate

credit or debit card, must be made by check.

DYCD will allow Providers to use electronic payments; however, the control functions listed as

bullets under the Disbursements section must still be followed, even when paying electronically.

Additionally, all disbursements, whether made by check, positive pay, or an e-pay system, should be

approved by someone other than the person who physically makes the payment. The approver

should confirm that the payment is supported by an appropriate check request, invoice and/or

purchase order, that the same invoice is not paid more than once, and that the stated amount of goods

or services were truly received by the organization.

Providers should adhere to the following control functions when handling DYCD disbursements:

 The function of approving vouchers, preparing checks, and recording disbursements must

be handled by different employees.

 Employees handling disbursements must not have duties related to cash receipts or the

reconciliation of bank accounts.

 Vouchers payable must be established for each payment and recorded promptly.

 Payment must be made only after the original voucher and all copies of pertinent papers have

been approved.

 Invoices should be cancelled or stamped “Paid” to prevent duplication of payment.

 Confirmation receipts for online purchases must be printed out and retained by Providers.

 A periodic review of vouchers must be made by an authorized person to determine that all

processing steps are being followed properly.

If a Provider is unable to comply with the control functions described above, comparable reasonable

procedures must be developed to allow for proper accountability and segregation of duties in

handling disbursements. A written description of these comparable procedures must be sent to your

DYCD Program Manager.

Unclaimed Funds

Unclaimed funds are funds that become available in the Provider’s bank account due to returned

checks or checks that were never cashed by the intended recipient. Undistributed funds remain the

property of DYCD and must be reimbursed to DYCD at the end of the fiscal year. The following

steps must be taken to account for DYCD unclaimed funds:

 Providers are required to exhaust all efforts to contact the intended recipient, in a timely

manner, within ninety (90) days from the check date.

 After the 90-day period, the Provider is required to place a stop payment on those checks and

return the funds to DYCD within ten (10) days.

 Providers are required to retain all evidence of the steps used to contact the intended

recipients.

 Providers are not allowed, at any time, to submit DYCD unclaimed funds to the New York

State Office of Unclaimed Funds.

SECTION FOUR: PURCHASING

PROCEDURES

GENERAL PROCUREMENT POLICIES

Any procurement of goods and/or services is to be conducted in the Provider’s name. The Provider

is responsible for ordering, receiving, inspecting, and accepting merchandise. The name of the

Department of Youth and Community Development, its officials, employees, or the City of New

York must not be used, under any circumstances, for the purpose of ordering and/or securing goods

and services from a vendor. Invoices, bills, receipts, etc., must be issued in the name and address of

the Provider. All expenditures must comply with applicable laws and contract regulations and are

subject to audit.

Purchasing Requirements/Competitive Bidding

The procurement of goods shall be governed by the competitive bidding requirements described

below. The purpose of competitive bidding requirements is to establish a procedure that will secure

the best possible price for goods and services while allowing for appropriate competition. The

procurement process must be open and competitive (that is, no vendor qualified to provide the goods

or services may be restricted from bidding and there must be fair competition among those bidders).

These procedures also apply to the rental or leasing of equipment. A procurement shall not be

artificially divided to meet the requirements of this section. The monetary thresholds identified

below refer to payments made, or obligations undertaken in the course of a one (1) year period with

respect to any one (1) person or entity.

For purchases with a value of $5,000 or less:

 No competitive bids are required provided the price is determined to be reasonable

and prudent.

 Documentation of the purchase must be maintained by the Provider. This

documentation must include:

o The name of the vendor

o Item purchased

o Date

o Amount paid

For purchases from $5,001 - $25,000:

 The Contractor shall conduct sufficient market research and/or competition to

support its determination that the price of such purchased goods, supplies,

services, or equipment is reasonable.

 Documentation of the market research and the purchase must be maintained by

the Provider. This documentation must include the name of the entities contacted,

the vendor, the item purchased, the date, and amount paid.

For purchases $25,001 or greater:

 A minimum of three (3) written bids must be obtained for the purchase of goods,

supplies, or services of similar items where the cost can reasonably be expected to

be $25,001 or greater. The bids must contain:

o A description of the item requested.

o Time, date, place, and form of requested responses.

o Name of the employee responsible for securing bids. The bids must be

maintained by the Provider.

Federal Funding Only

As of June 2018, the Federal threshold for purchases increased from $3,500 to $10,000.

For purchases with a value of $10,000 or less:

 A purchase may be awarded without soliciting competitive quotations if the

provider considers the price to be reasonable.

For purchases $10,001 or greater:

 A minimum of three (3) written bids must be obtained from three qualified

sources.

 The bids must contain:

o A description of the item requested

o Time, date, place, and form of requested responses

o Name of the employee responsible for securing bids. The bids must be

maintained by the Provider.

If there is any inconsistency with the information contained in this manual governing federal

funds with the Federal Uniform Guidance/OMB Super Circular, then the Super Circular

controls.

Sole Source Procurement

Purchases exceeding $5,000 of non-federal funds where a Provider is purchasing items that are

considered sole source in nature, do not require bids. Sole source procurements are exceptions to

normal purchasing procedures and are permitted only when there is one, and only one, potential

bidder or offer for an item or service.

Examples of circumstances that could justify sole source procurements are:

 Newspaper advertisements

 Health and Liability Insurances, Workers Compensation

 Tickets to sporting events or theme parks

 One-time performances by artists for participants

 Utilities (gas, electricity, telephone)

Note: The selection of Consultants and Subcontractors is not subject to a formal bidding process

but must demonstrate a prudent and reasonable degree of care.

Proof of Delivery Date

DYCD may require proof of delivery date for goods purchased between June 20

and June 30

Inventory

Providers must maintain an inventory of all furniture and equipment purchased with DYCD funds.

An inventory control decal must be placed on the equipment indicating that it is the property of New

York City.

A physical inventory is required every year, and inventory records must include the date of the last

physical inventory review.

Relinquishment or Disposal of Furniture and Equipment

All furniture and equipment purchased with DYCD funds remain the property of the City of New

York and must be returned at the end of the contract. Providers must contact their DYCD Program

Manager to arrange for the disposition of equipment.

If it is determined that the equipment bought with DYCD funds is fully depreciated and has no

further useful value, please notify DYCD in writing, through the Helpdesk

[email protected]. For Audit referral include provider name, ID number

(DYCD Contract Number), fiscal year, list of the equipment, serial number(s), model number(s) and

purchase date. Providers will receive written notification with specific instructions regarding the

disposal of equipment.

Inventory lists must include the method and reasons for disposition and the value of disposed

equipment. In cases of loss or theft, property lists must include all pertinent information to support

the claim. If appropriate, copies of police reports must be attached.

SECTION FIVE: CREDIT/DEBIT CARDS

POLICIES AND PROCEDURES

CREDIT/DEBIT CARDS POLICIES AND PROCEDURES

OVERVIEW

Policies and Procedures for Use Credit/Debit Cards

Providers are required to have written policies and procedures to establish an internal control

structure for credit/debit card use. These policies and procedures must include the following

guidelines:

1. A Provider’s Board of Directors must first determine whether to approve use of credit or

debit cards; once the Provider’s Board has approved the use of credit/debit cards, the Board

must adopt a comprehensive credit/debit card policy.

2. Credit cards must be established in the name of the Provider and used solely for carrying on

the operations of the Provider.

3. Prohibitions on the use of cards to split orders or otherwise circumvent bidding thresholds.

4. Instructions on employee responsibility and written acknowledgements signed by all

authorized users; specifying that the safeguard of, and charges appearing on each card, are

the responsibility of the cardholder and prohibiting purchases that are personal in nature.

Establish custody of the cards when not in use.

5. Procedures for card issuance and cancellation, lost or stolen cards, and employee termination.

6. Set spending and transaction limits for each cardholder both per transaction and monthly.

Require preapproval for purchases over those limits.

7. Requires proper documentation for all transactions. Establishes a means to recoup any

unauthorized expenditures.

8. Clear guidelines on the appropriate uses of credit cards, including approved and unapproved

vendor categories.

9. Guidelines for making purchases by telephone, fax, or internet.

10. Record-keeping requirements, including review and approval processes.

11. Limits the use of staff and/or volunteer personal credit cards for Provider-related purchases

to emergency situations (with emergencies to be defined) where standard procurement

methods are unfeasible. Such expenditures, moreover, must be consistent with the Provider’s

purchasing policies and procedures.

12. Limits cash withdrawals/advances to emergency situations (with emergencies to be defined),

and requires such withdrawals to be governed by the following rules:

a. Amount may not exceed $200 per ATM withdrawal.

b. The Provider’s Executive Director or a designee must authorize cash withdrawals. If

the Provider’s Executive Director is the individual making such cash withdrawals,

then the Provider’s Executive Director must receive authorization from the Provider

Board Chairperson.

c. When a payment is made with cash from an ATM withdrawal, a receipt from the

transaction is filed and maintained in an ATM transaction and cash box (this must be

a box kept separate and apart from the petty cash box).

d. Any cash withdrawn from a credit/debit account that is not utilized in a purchase

must be deposited in the ATM transaction and cash box or re-deposited in the agency

credit/debit account.

e. Each expense emanating from an ATM withdrawal must be properly recorded in the

Provider’s books of account.

f. The Provider is not allowed to comingle DYCD funds from cash balances related to

ATM withdrawals with Non-DYCD funding streams. Separate general ledger

accounts must be established to account for DYCD cash balances related to ATM

withdrawals.

13. Procedures for transferring paper records to electronic record storage, if applicable.

14. Segregation of duties for payment, accounting, and reconciliation. Periodic audits for

card activity and retention of sales receipts and documentation of purchases.

15. The CFO or Comptroller must ensure that a proper review of claims is performed prior to the

payment of each credit card statement. This includes requiring that itemized receipts or other

similar documents signed by the individual making the purchase adequately support all

charges on the statements. In the case of debit card usage, bank statements must be regularly

and timely reviewed and checked against supporting documentation.

SECTION SIX: PETTY CASH POLICY

PETTY CASH FUND USE ESTABLISHMENT

Office of Neighborhood Safety (ONS) contracts are exempt from this Policy. Petty Cash policies

applicable to Office of Neighborhood Safety (ONS) contracts are described in the next section

below.

To facilitate the payment of certain minimal charges that cannot be handled by check, Providers may

establish a Petty Cash Fund of up to $1,500. It is important to remember that items purchased with

Petty Cash Funds are subject to the same regulations and accounting practices as expenses paid by

check.

Petty Cash Fund Use

A Petty Cash Fund shall be governed by the following rules:

1. A Petty Cash Expense may not exceed $250 dollars per total purchase.

2. The Provider’s Executive Director or a designee must authorize petty cash expenses in writing.

3. When a cash payment is made from the Petty Cash Fund, a Petty Cash Voucher (see sample on

the DYCD’s website) together with receipt is placed in the petty cash box.

4. The total of cash remaining in the box plus the total amount of vouchers therein must equal the

petty cash fund amount.

5. Each voucher must be supported with a receipt or invoice which shows:

 The vendor name.

 Date of purchase.

 Item purchased.

 Price per item.

 Total price for the quantity received.

 Who made the purchase.

The custodian may require the purchaser to sign or initial original receipts. Upon receipt of

completed information, the petty cash expenditures will be reimbursed by the fund custodian.

6. Each expense from the petty cash voucher must be journalized in the Provider’s general ledger to

the appropriate expense account with an offsetting entry to the petty cash account.

7. Periodically, when the amount of cash remaining in the box requires replenishment, a check is

drawn for the amount of all vouchers in the box. Cash from the check is placed in the petty cash

box to replenish the Petty Cash Fund to its full amount. The reimbursement check amount is to

be credited to the applicable operating cash account with an offsetting debit to the petty cash

general ledger account. A separate Petty Cash Voucher Form must be used for the

replenishment of the Petty Cash Fund.

8. A monthly reconciliation of Petty Cash funds with the petty cash general ledger account must be

carried out.

9. The Provider is not allowed to commingle DYCD funds used for petty cash. A separate general

ledger account must be established to account for DYCD petty cash.

Examples of reimbursable expenses for which use of pretty cash may be appropriate:

 Local travel by public transportation

 Programmatic supplies

 Postage (The purchase of one hundred stamps will be allowed through petty cash.)

Examples of non-reimbursable expenses are:

 Personal expenses

 Alcoholic beverages for a staff party

Suggested Petty Cash Control Procedures

o In the event the fund custodian has a scheduled absence, a temporary custodian

can be assigned by the Executive Director or a designee. The funds must be

counted in the presence of the authorized custodian before the leave period begins

and again once the custodian returns.

o Unannounced cash counts should be performed quarterly by someone other than

the Custodian. The individual should be selected by the Executive Director or a

designee, preferably not the same person each quarter. The cash counts should be

recorded on an official Cash Count Form. This cash count should always be done

in the presence of the Custodian and when completed should be signed by the

performer as well as the custodian. Any over/shorts must be reported to the

Controller for proper recording and to correct the cash position.

o Where possible, keep the locked petty cash box in a limited-access locked

drawer, safe, or file cabinet. Funds must be secured each time the custodian

leaves the office. The keys to the box and file cabinet, safe, or drawer should be

kept in the possession of the custodian, not left on desks or in the office

overnight.

Office of Neighborhood Safety (ONS) Petty Cash Policy

Due to the nature of the services provided under Office of Neighborhood Safety (ONS)

contracts, certain emergency participant expenses are allowable which are otherwise not

allowable for other DYCD contracts. These emergency participant expenses are expected to

be infrequent and only required in the most critical circumstances to prevent loss of life and

or an imminent threat of violence.

SECTION SEVEN: GENERATED INCOME

OVERVIEW OF GENERATED INCOME

Income derived by a Provider as a result of resources paid for by the Department of Youth and

Community Development is considered Generated Income. Providers engaged in such income

generating activities must maintain a monthly report of those activities. These reports must be made

available to DYCD for review upon request.

Providers with income generating activities must adhere to the following bookkeeping standards:

1. A separate bank account must be established.

2. All bank documents, such as deposit slips, reconciliations, statements, canceled checks

must be properly maintained on file.

3. Signature cards must be properly maintained on file.

4. A separate cash receipts journal must be established to record cash receipts generated.

5. A separate cash disbursement journal must be maintained to record cash expenditures (the cash

disbursement journal must be established in a form that reflects the nature of the expense).

6. Supporting documentation for each disbursement recorded in the cash disbursement

journal must be properly maintained on file.

7. If appropriate, a general ledger must be maintained to summarize monthly transactions.

8. A monthly trial balance must be taken; and

9. All financial and accounting records relating to income-generating activities must be available

for examination and audit by DYCD or its designees upon request.

Grants that a Provider receives from other government sources or foundations are not considered

generated income.

SECTION EIGHT: PASSPORT

ADVANCES, INVOICES & PAYMENTS

PASSPORT – INVOICES AND PAYMENTS

Cash Flow

The Cash Flow process is initiated following registration of the contract with the New York City

Comptroller’s Office. DYCD is not permitted to release funds or reimburse a Provider for any

expenses incurred for the provision of services until a contract or amendment is registered and an

active detailed budget.

Initial Advances

Once the contract is registered and there is detailed Budget, DYCD will initiate and process an

initial advance of 25%. A separate initial advance will be issued for each budget code, if there are

multiple budget codes listed on your sub-budgets.

Recovery

Initial Advances will be recovered starting with your January Invoices. DYCD will recover 1/6

the advance from January through June Invoices on a standard 12-month budget operating period.

The recovery process can be adjusted based on higher spending levels or shorter budget operating

periods. The Advance recovery will appear in PASSPort Invoice under Advances. A Provider will

only receive a payment during this period if the invoice amount exceeds the recovery amount. Once

all invoices have been submitted, any unrecovered advances will be owed to DYCD.

Loans issued through the Fund for the City of New York will be paid by DYCD through the

Advance Request process in PASSPort. This payment is automatically made once your contract is

registered. The deduction of outstanding loan amounts from the PASSPort invoice will appear

under Recover. This advance and any other will be deducted in full from your upcoming Invoices.

Invoices

The PASSPort Invoice document will be the method of reimbursement for monthly contracted

expenses. Providers can manage budgets and invoices, electronically through PASSPort. PASSPort

Invoices must be submitted once the contract is registered and there is an approved detailed budget

in PASSPort.

Back up Documentation Required

DYCD requires that you submit back up documentation with the submission of your PASSPort

Invoices. You will be required to submit the documents below which will need to be uploaded to

your PASSPort Invoice at the time of submission. CSBG contracts have an additional requirement

see below.

Required Documents When Submitting Invoices

Back-up documentation for Invoice submission can be found here:

https://www1.nyc.gov/site/dycd/involved/funding-and-support/cbo-contract-agency-finance-department-payment-

unit.page

1. Salaries and Wages Justification Details

The form will require details for Salaried, Hourly and Seasonal employees (Seasonal

Employee details are only required for FY16 and FY17). This form is not to be used for

WIOA contracts, see below.

2. WIOA Salaries and Wages Justification Details

Effective 07/01/2020 this form will be required for WIOA contracts. It includes additional

information to capture the work experience percentage and work experience claim amounts.

3. CSBG PASSPort Invoice-Attachment

Effective 07/01/2020 this form will be required for CSBG contracts in the following

programs areas with the corresponding budget codes listed on the Sub Budgets. It will only

be required with the submission of the October, November, and December PASSPort

Invoices.

Program Areas

Corresponding CSBG Budget Codes

NDA

9811/6780/005

Fatherhood

9812/6780/005

Adolescent Literacy

9813/6780/005

Services for Immigrant Families

9814/6780/005

Literacy NYCALI

9920/6780/005

4. Equipment Purchase Inventory Report

The equipment category includes other costs in addition to Equipment Purchase. Please put a

note in the comment field of the Invoice if you are allocating expenses other than Equipment

Purchase. A Purchase Inventory Report is only required for Equipment Purchase.

For equipment $500 or more, the following must be provided:

1. Equipment Amount

2. Invoice Amount

3. Item description

4. Serial number

5. Model number

6. Manufacturer

7. Date Purchase

8. Delivery Date

For equipment under $500, the following must be provided:

1. Equipment Amount

2. Invoice Amount

3. Item description

4. Manufacturer

5. Date Purchase

6. Delivery Date

Note:

The Salaries and Wages Justification Details and Equipment Purchase Inventory Reports Forms are

available on the DYCD website under Forms Index.

General Instructions

The PASSPort Invoices must be prepared on a cash basis. Expenses must be reported for the

month in which the check was issued or, in the case of credit or debit cards, the month in which

the payment was made. For example, a PASSPort Invoice submitted for the month of October

must reflect payments issued in October.

There are circumstances where checks are allowed outside the PASSPort Invoice submission

period. During the year end close out, a Provider may have a payroll service period or an

invoice service period that crosses Fiscal Years. The prorated portion of that check must be

charged to the appropriate Fiscal Year (or budget operating period if the budget ends prior to

June 30, 2020). An example of this would be a payroll issued 07/10/20 with a payroll service

period of 06/22/20 through 07/03/20. Only June 22nd through June 30th may be reflected on

the June-Final Invoice. The remainder of the payroll would be reflected on the July PASSPort

Invoice.

Submission Timeline- PASSPort Invoices

Below is the timeline (based on the value of your budget) for the submission of PASSPort once the

contract is registered and there is a detailed budget approved.

Annual Contract Budgets of $50,000 or greater

A monthly PASSPort Invoice is required for contracts with annual budgets of $50,000 or

greater. Providers must submit their invoices electronically in PASSPort by the 15th day of

the following month. Example: July Invoices are due by August 15

and are considered

late if submitted after the last day of the month.

Annual Contract Budgets $10,001 - $50,000

Contracts in this range have the option of submitting invoices monthly or quarterly in PASSPort.

Quarterly reports are due as follows:

July-September Submission Date Oct. 15

, no later than Oct. 31

October-December Submission Date Jan. 15

, no later than Jan. 31

January-March Submission Date Apr. 15

, no later than Apr. 30

April-June Submission Date Jul. 15

, no later than Jul. 31

Final Invoice Submission Date Due Aug. 31

Annual Contract Budgets of $10,000 or less

A Provider with a contract of $10,000 or less has the option of submitting invoices monthly,

quarterly or one for the full amount in PASSPort.

Non-Reimbursable Expenses

Expenditures for items neither budgeted nor allowable under DYCD Federal, State and City

guidelines will not be reimbursed. This list of non-reimbursable expenses below is not

comprehensive, and Providers must seek guidance on whether an expense not listed is

reimbursable.

The following list of expenses are not allowed by DYCD:

1. Expenses outside of the budget operating period are not allowed. This includes payment of back tax obligations.

2. Funds cannot be used for litigation expenses, legal settlements, or legal judgements.

3. Expenditures for items neither budgeted nor allowable under DYCD Federal, State and City guidelines for

Providers.

4. Purchase of land and buildings.

5. Real estate taxes are not an allowable expense for DYCD funded contracts unless otherwise approved.

6. Taxes from which municipalities are exempt (Sales Tax, NYS Franchise Tax, Federal Unemployment Tax

[FUTA]).

7. Capital improvements, which are defined to mean the erection of substantial structures which are capital in

nature, or the valuable additions to or valuable modifications of real estate. This includes expenditures for hard

surfacing, cement installations, substantial repairs to a building, basic heating, lighting or sanitary equipment and

installation, permanent outdoor lighting systems, fencing (except for partial fencing justified as a safety device),

swimming and wading pools, and tennis courts.

8. Personal membership fees in any social, country, dining and lobbying clubs, or professional associations.

9. League franchise fees in the name of an individual.

10. Interest and penalty costs.

11. Overdraft fees are not allowable expenses.

12. Activities for which a provider has already charged a fee to participants.

13. Activities that are normally considered a part of the regular school day.

14. Activities of a commercial nature.

15. Expenditures for pre-paid payroll or consulting services. The date on the check (pay date) must be on or after

the period of service.

16. Expenditure for fund raising activities.

17. Expenditures for stipends when used to replace existing staff and/or for the primary purpose of saving money by

using low-cost labor, and to avoid paying fringe benefits, or to replace other funding. Special exceptions may be

made in advance with approval from DYCD and the Office of Children and Family Services, when no other

sources are available, and stipends are critical for the implementation of the program model.

18. Prizes other than inexpensive awards such as trophies, medals, or ribbons.

19. Medical liability insurance and fire insurance on capital structures.

20. Security Deposits.

21. Bonuses - (Except WIOA).

22. Severance payment.

23. Tips and Gratuity.

24. Alcoholic Beverages

25. Bad Debt.

26. Renovation or construction projects costs are not reimbursable costs unless otherwise specified in the contract.

27. Violations and fines are not an allowable cost to be paid with funds from DYCD contracts.

28. If federal funds are used, then Entertainment Costs are not reimbursable.

29. Staff personal expenses.

30. Costs that are unallowable under other sections of the Cost Manual must not be allowable solely on the basis that

they constitute compensation, such as compensation for indirect personnel performing advertising functions.

31. Costs for workers used to replace existing staff and/or for the primary purpose of saving money by using low-Cost

labor, to avoid paying fringe benefits, or to replace other funding. An example of a direct, allowable Compensation

Cost – Personnel Services is the salary of an attorney providing legal services to clients under a Contract.

For questions regarding whether an expense is reimbursable, please email the [email protected].

Payee Information Portal of the City of NY

The Payee Information Portal (PIP) provides assistance for payees or vendors who do business with the

City of New York.

Registered vendors can:

 Check payment status.

 Update business information.

 View agreements and invoices from City agencies.

 Enroll for commodity codes to receive solicitations from the City.

 Update and report subcontracts and payments made to subcontractors.

 Download applications forms.

Sub-Contractor Reporting Requirement

If a Provider proposes to engage a Subcontractor on a human service contract, then DYCD requires

the Subcontractor to be listed in the City’s Payee Information Portal (PIP).

Please visit the PIP website at www.nyc.gov/pip for additional information on this requirement and on how

to utilize the PIP system.

Electronic Funds Transfer – EFT (Direct Deposit)

Local Law 43 of 2007 requires any vendor providing the City with services valued at more than

$25,000 to enroll in the Vendor Payment Direct Deposit program. DYCD encourages all vendors that do

business with the City to enroll in the Direct Deposit program.

Benefits of Direct Deposit (“EFT”) Payments

 Electronic payment is safer and more secure. Paper checks can be lost in the mail, stolen, or

delivered to the wrong address.

 Receive payments faster. EFT payments are deposited directly into the vendor’s bank

account.

 Electronic payment records are available online. Use the City's Payee Information Portal (PIP)

for current vendor payment records.

 Enroll in the EFT/Direct Deposit program online via the Payee Information Portal (PIP) at

nyc.gov/PIP. PIP is now available for vendors to set up a single bank account for all vendor

payments made from the New York City Financial Management System (FMS). Both existing and

new city vendors can sign up for EFT/Direct Deposit through PIP.

 Existing EFT enabled vendors with a PIP User ID and password can update their bank

account information in PIP.

 New vendors doing business with the City of New York can create a new PIP account and

vendor code, and then add their bank account information for EFT/Direct Deposit immediately.

 Providers are required to transfer all DYCD funds from the EFT account to the appropriate payroll and

general accounts. Bank reconciliation of all accounts must be prepared monthly, reviewed by upper

management, and kept on file for examination by DYCD or its

designees.

SECTION NINE: YEAR-END CLOSEOUT

YEAR-END CLOSEOUT OVERVIEW

Contract Term

The Provider must perform all contract services and receive all goods and vendor services by the last

day of the budgeted operating period. Employer’s FICA and New York State Unemployment

Insurance (SUI) expenses applicable to salary expenditures incurred and paid through the last day of

the contract period must be included. Any expenditure made for goods and services that are received

after the last day of the contract/budget period will NOT be accepted as an authorized expenditure.

In addition, current year DYCD contract funds cannot be used to pay expenses incurred in a prior

contract period (e.g., for payment of back tax debts.) There are no exceptions to this rule.

Deadline for Submission of Final Invoice in PASSPort

The deadline for submission of final invoice in PASSPort is no later than sixty

(60) days after the end date of the budget operating period. Budgets ending June 30

have a

deadline of August 31

Provider Refunds Due

Any balance of funds issued by DYCD and not accounted for by an approved expenditure submitted

through a PASSPort Invoice, is a refund due to DYCD. Providers must issue a check payable to the

NYC Department of Youth and Community Development. The check is to be sent to:

DYCD/APU, Attention: Mr. Erick Nieves 123 William St. 18

Fl. New York NY 10038

Annual Close Out Notification and Financial Recap Form

DYCD officially starts the Year End Close Out process for budgets ending June 30

in September,

since the deadline for Final Invoice submission in PASSPort is August 31

. Once all PASSPort

invoices have been processed, Providers must close out their records. Providers will no longer

receive a close out letter since all information is available online.

A notification letter will inform the Provider of any amount owed to DYCD. A check for the refund

due amount must be issued to DYCD within ten (10) days of receipt of the letter. If the refund due

amount is not received by that date, then the Provider’s contracts will automatically be placed on

Check Hold for all future payments from DYCD.

Contracts and amendments not registered will receive an extension from the close out deadline.

Submit your PASSPort Invoices once you have been notified of registration. Contracts will be

closed out within sixty (60) days of registration.

Reconcile Checks

Verify that all checks were received prior to the Year End close out and notify DYCD of lost checks

by e-mailing the Help Desk at [email protected]. A stop payment will be

requested to the Department of Finance and a new check will be issued.

Providers must verify and reconcile all program expenses related to the contract

fiscal year with Invoices submitted through PASSPort.

Refund Due - Non-Responsive Notification

If a refund check or Final PASSPort invoice is not submitted in response to the Close Out

notification, then the Provider will be referred to DYCD’s Office of Legal Affairs for collection.

Nonpayment may also result in the Provider being referred for a Caution Rating in the Performance

Evaluation (VENDEX). This rating may have a negative impact upon the Provider’s ability to

secure future funding with DYCD or other City agencies. Providers having a poor Performance

Evaluation rating (VENDEX) may also be mandated to use the services of DYCD’s Fiscal Agent.

Recoupment Procedures

DYCD reserves the right to offset the amount of funds due DYCD against another contract.

Close Out Procedures for Terminated Providers or Withdrawn Providers

Upon receipt of a termination notice and effective date of termination, the Provider shall comply with

all applicable DYCD close out procedures, which include, but are not limited to the following:

 Submit PASSPort invoices for expenditures prior to termination date.

 Return any balance of funds not accounted for by an approved expenditure.

 Comply with guidelines outlined in Section Four of this manual pertaining to

Relinquishment of Equipment.

 If assigned a DYCD vehicle, then a Provider will immediately surrender the

vehicle to DYCD pursuant to Paragraph 12(C) of the Van License agreement.

Contract Performance Evaluation

DYCD will conduct on-going assessments of Providers’ fiscal and programmatic performance. This

assessment will be reported on the City of New York’s Performance Evaluation System. The

Financial portion of each rating is based upon a Provider’s ability to submit timely and accurate

monthly PASSPort Invoices, the Provider’s ability to maintain financial books and records in

accordance with generally accepted accounting procedures, and the Provider’s capacity to maintain

an internal control structure with reasonable assurances that its assets are safeguarded against loss or

misuse.

Providers found to be deficient in the conduct of their financial duties may receive poor Performance

Evaluation ratings and be mandated to use the services of the Fiscal Agent.

WIOA Year-End Close Out Requirements

A financial report is required ninety (90) days after the expiration of a funding period or the

termination of a contract as per Title 20 Code of Federal Regulations (CFR) WIOA final rule section

667.300(d).

The Closeout process determines whether all applicable administrative actions and all required work

of an award have been completed by the Provider. A timely closeout of the contract is required to be

performed after the award has expired.

DYCD requires that Providers submit closeout packages and related documents by the due date,

which is ninety (90) days after the expiration of a funding period or the termination of an award,

whichever comes first. A Closeout Letter with the related Closeout Package is sent to the Provider’s

Executive Director for completion and submission approximately one month before the due date.

The completed Closeout Package with the Provider’s related audit report and final PASSPort

Invoice must be submitted to the attention of the Director of Revenue Audit for review and

approval.

SECTION TEN: CENTRAL INSURANCE

PROGRAM

CENTRAL INSURANCE PROGRAM (CIP)

FOR PARTICIPATING PROVIDERS

The Central Insurance Program (CIP) serves the insurance needs of not-for-profit contractors who do

business with human services agencies in the City.

CIP provides comprehensive General Liability Insurance, Workers' compensation, Disability

Insurance and Paid Family Leave Coverage benefits to Providers that opt to buy in. The Central

Insurance Program is operated by the Mayor’s Office. Note: if a Provider chooses to participate in

CIP and has Worker’s Compensation and Disability, the Provider must submit those certificates to

DYCD and CIP will only provide General Liability coverage.

DYCD will deduct 4.5% of a contract’s total budget to cover the cost of the insurance. This 4.5% is

non-reimbursable. This cost must be reflected in the Unallocated Funds category.

General Liability Insurance

General Liability Insurance is automatically assigned to Providers that opt to participate in the CIP.

The General Liability policy provides coverage limited to one million dollars ($1,000,000) per

occurrence for incidents that occur in connection with program activities described in the Provider’s

contract with DYCD. The General Liability policy also provides coverage for the costs of defending

claims or suits resulting from bodily injury.

The policy also provides coverage for verifiable medical expenditures for authorized participants

injured in the program. All injuries, however slight, to any program participant, volunteer, visitor, or

others must be reported on a DYCD Incident Report Form. The Incident Report Form must be on file

with DYCD before submission of related medical bills.

Original medical and dental bills must be submitted with a second copy of the Incident Report Form.

Workers’ Compensation and Disability Insurance

Workers’ Compensation covers injuries suffered by employees while on the job. This coverage only

pertains to employees listed on the DYCD budget.

Disability benefits to employees listed on the DYCD budget are provided in case of a non-work-

related illness or injury causing disability.

The Provider must submit the Employer’s Report of Injury (C-2F Form) and/or the Form for

Disability to the CIP Program.

Staff Changes made in contracts with CIP

When new staff is hired, the Provider must submit an Individual Enrollment Form to CIP, Jaqueline

Williams at [email protected]. When an employee is terminated or resigns, the Provider

must submit a Termination Roster. The completion of this roster will ensure that the name(s) of

former employees are removed from the Central Insurance Program. In both instances, the forms are

to be returned to the Citywide Central Insurance Program at 253 Broadway, 10

Floor, New York,

NY 10007.

Exclusions

CIP insurance does not include coverage for allegations of child or sexual abuse. The Provider must

immediately notify DYCD of any incident or allegation of abuse of a program participant by any of

the Contract’s administrators or staff, including both paid staff and volunteers. Written notification

is to be submitted on DYCD’s Incident Report Form.

The term “abuse” refers to any physical, sexual, emotional, or verbal abuse, or any other

maltreatment of a program participant. Compliance with this reporting requirement does not satisfy

any other legally mandated reporting of abuse, such as notifying the law enforcement officials or

notifying the NYS Central Register of Child Abuse and Maltreatment.

The CIP coverage terminates at the end of each fiscal year.

Forms and additional information related to CIP may be obtained from the Central Insurance

Program.

Mayor’s Office of Operations

Central Insurance Program

253 Broadway – 10

Floor

New York, New York 10007

Tel: (212) 788-3216

SECTION ELEVEN: REPORTING &

AUDIT REQUIREMENTS

AUDIT

Office of Contract Agency Audits (OCA)

The Office of Contract Agency Audits (OCA) is responsible for conducting Audits and Fiscal

Field Reviews (FFRs) of funded programs and evaluating audits and reviews of funded programs

performed by DYCD’s contracted independent Certified Public Accounting Firms (CPA Firms).

OCA also issues Strategic Action Plans and Corrective Action Plans, often in conjunction with

DYCD program staff, and provides technical assistance to Providers.

Audits and FFRs conducted by OCA and DYCD’s contracted CPA Firms have several sources of

criteria that are audited. This manual is one such source of audit/FFR criteria. A list of all audit

criteria is available in Section 11 of this manual.

Failure to adhere to the requirements included in this manual may result in disallowed costs,

which would be recouped by DYCD, and may negatively impact a Provider’s PASSPort

rating.

Reporting and Audit Requirements

Sources of Audit and Fiscal Field Review Criteria

Audits and Fiscal Field Reviews (FFRs) conducted by OCA and DYCD’s contracted CPA Firms

have several sources of criteria that are audited. This manual is one such source of audit/FFR

criteria.

Additional Audit/FFR criteria sources include:

 Provider’s contracts with DYCD (including all Appendices).

 The City of New York Standard Audit Guide.

 The City of New York Health and Human Services Cost Policies and Procedure Manual.

 The Standards for Internal Control in the Federal Government, issued by the Comptroller

General of the United States (also known as the Green Book).

 All applicable City, State, and Federal laws.

 For contracts that include Federal funding: 2 CFR Part 200 – Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards (Federal

Uniform Guidance/OMB Super Circular).

 For contracts that include WIOA funding: New York State Department of Labor

requirements also apply.

Failure to adhere to the requirements included in this manual and the other sources of audit

criteria listed in the paragraphs above may result in disallowed costs, which would be

recouped by DYCD, and may negatively impact a Provider’s PASSPort rating.

DYCD funded Providers are subject to the following requirements:

Contracts with DYCD Funding Greater Than $75,000

Providers with aggregate DYCD funding greater than $75,000 will be audited by a CPA firm

under contract to DYCD. The Auditor will perform random verification checks of the

expenditures claimed o PASSPort. The audit is performed after the City fiscal year is completed

and relates only to DYCD contracts. The Provider will be notified of the findings and questioned

costs. Unresolved questioned cost(s) may have to be reimbursed to DYCD.

Contracts with DYCD Funding Between $25,000 and $75,000

Providers with aggregate DYCD funding between $25,000 and $75,000 are subject to fiscal field

reviews (“FFR”). An FFR evaluates a Provider’s system of internal accounting and

administrative controls. The objective of the FFR is to ensure that Providers adhere to the

procedures and requirements cited in this Fiscal Manual and Provider’s DYCD contract. The

FFR may result in both administrative and fiscal findings. FFRs are performed either by DYCD

Audit staff or CPA firms under contract to DYCD.

Standard Audit Guide

Effective July 1, 2017 The City of New York Standard Audit Guide is the primary source for

guidance on audit planning, execution, reporting and follow-up procedures for Auditors, Auditees,

and Agencies. If there is a conflict between the terms of DYCD’s Fiscal Manuals and the Standard

Audit Guide, then the Standard Audit Guide shall take precedence.

The full policy can be found at the link below:

https://www1.nyc.gov/assets/nonprofits/downloads/pdf/Standard%20Audit%20Process%20Guide_2

019.04.11.pdf

New York State Requirements

In accordance with New York State law, Providers may be required to register with the Charities

Bureau of the New York State Attorney General’s Office. In addition, providers that solicit funding

from the public are required to file NYS Attorney General’s Office financial forms that vary

depending on the Provider’s gross revenues.

The following chart summarizes the requirements of the Nonprofit Revitalization Act of 2013, as

amended:

Effective Dates

Level of Gross Revenues

CPA Audit or CPA Review

July 1, 2017,

through

June 30, 2021

Less than $250,000

No CPA Audit or CPA Review required, but must file an

unaudited financial report on form provided by the

Attorney General.

At least $250,000 but not more than

$750,000

Prepare and file an annual GAAP-compliant financial

report, accompanied by an annual financial statement that

includes an independent CPA’s review report.

$750,000 or more

Prepare and file an annual GAAP-compliant financial

report on forms prescribed by the Attorney General,

accompanied by an annual financial statement that

includes an independent CPA’s review report containing

a signed opinion that the financial statements are

presented fairly in all material respects and in conformity

with GAAP.

July 1, 2021, and

forward

The $250,000 threshold remains

constant

No CPA Audit or CPA Review required, but must file an

unaudited financial report on form provided by the

Attorney General.

At least $250,000 but not more than

$1,000,000

Prepare and file an annual GAAP-compliant financial

report, accompanied by an annual financial statement that

includes an independent CPA’s review report.

$1,000,000 or more

Prepare and file an annual GAAP-compliant financial

report on forms prescribed by the Attorney General,

accompanied by an annual financial statement that

includes an independent CPA’s review report containing

a signed opinion that the financial statements are

presented fairly in all material respects and in conformity

with GAAP.

Regardless of the size or type of a not-for-profit Provider, an annual audit can help to improve

operations and provide proper accountability for public and private resources.

Federal Requirements

Providers that expend $750,000 or more in federal awards per fiscal year, must have a single audit

conducted for that year in accordance with the provisions of Title 2 CFR Subpart F, §200.501 of the

OMB Uniform Administrative Requirements (Federal Uniform Guidance/OMB Super Circular).

Providers subject to the provision stated above may only allocate a portion of the Single Audit

Report cost to their federally funded contracts.

In addition, for federal reporting purposes, most Not-for-Profit Providers may be required to file an

information return (e.g., IRS Form 990).