New York Codes, Rules and Regulations › Title 14 - DEPARTMENT OF MENTAL HYGIENE › Chapter XXI - OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES › Part 812 - Limits On Administrative Expenses And Executive Compensation › Section 812.4 - 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
				812.7  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 office or its 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 a
				county or local government or from an entity contracting on its behalf. The
				office or its designee, rather than the county or local unit of 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 office or its
				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
				812.7  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 office or its 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.