New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle U - Division of Criminal Justice Services › Chapter IV - General › Part 6157 - Limits On Administrative Expenses And Executive Compensation › Section 6157.3 - Limits on administrative expenses

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Limits on allowable administrative
				  expenses. No less than 75 percent of the covered operating expenses of a
				  covered provider paid for with State funds or State-authorized payments shall
				  be program services expenses rather than administrative expenses. This
				  percentage shall increase by five percent each year until it shall be no less
				  than 85 percent in 2015 and for each year thereafter. In determining whether an
				  expense is a program service expense or an administrative expense, a covered
				  provider may allocate a portion of the expense to each type if such allocation
				  is supported by the nature of the expense. Such allocation may include
				  allocation of portions of an employee's time and compensation to administrative
				  or program services. Commencing on July 1, 2013, the limits on allowable
				  administrative expenses pursuant to this Part shall be effective and applicable
				  to each covered provider on the first day of each provider's respective covered
				  reporting period.
(b)
				  Subcontractors and agents of covered providers. The restriction on allowable
				  administrative expenses in subdivision (a) of this section and the reporting
				  requirements in section
				  6157.6  of this Part
				  shall apply to subcontractors and agents of covered providers if and to the
				  extent that such a subcontractor or agent has received State funds or
				  State-authorized payments from the covered provider to provide program or
				  administrative services during the reporting period and would otherwise meet
				  the definition of a covered provider but for the fact that it has received
				  State funds or State-authorized payments from the covered provider rather than
				  directly from a governmental agency. A covered provider shall incorporate into
				  its agreement with such a subcontractor or agent the terms of these regulations
				  by reference to require and facilitate compliance. Upon request, covered
				  providers shall promptly report to the funding or authorizing agency the
				  identity of such subcontractors and agents, along with any other information
				  requested by that agency or by the commissioner or his or her designee. A
				  covered provider shall not be held responsible for a subcontractor's or agent's
				  failure to comply with these regulations.
(c) Covered providers receiving state funds
				  or state-authorized payments from county or local government or from entity
				  contracting on its behalf. The commissioner or his or her designee, rather than
				  the county or local unit of government or an entity contracting on behalf of
				  such government, shall be responsible for obtaining the necessary reporting
				  from and compliance by such covered providers, and shall issue guidance to
				  affected county and local governments to set forth the procedures by which the
				  commissioner or his or her designee shall do so.
(d) Covered providers with multiple sources
				  of state funds or state-authorized payments. If a covered provider receives
				  State funds or State-authorized payments from multiple sources, the provider's
				  compliance with the restriction on allowable administrative expenses in
				  subdivision (a) of this section shall be determined based upon the total amount
				  program services expenses and administrative expenses paid for by such funding
				  received from all of such sources. As set forth in section
				  6157.6  of this Part,
				  the covered provider shall report all of such State funds and State-authorized
				  payments, and the expenses paid for by such funding, in the form and at the
				  time specified by the commissioner or his or her designee.
(e) Other limits on administrative expenses.
				  If the contract, grant, or other agreement is subject to more stringent limits
				  on administrative expenses, whether through law or contract, such limits shall
				  control and shall not be affected by the less stringent limits imposed by these
				  regulations. However, the definition and interpretation of terms in this Part
				  shall not be affected or limited by the definition or interpretation of terms
				  in other regulations or agreements.