New York Codes, Rules and Regulations › Title 1 - DEPARTMENT OF AGRICULTURE AND MARKETS › Chapter X - Grant Programs › Part 400 - Limits On Administrative Expenses And Executive Compensation › Section 400.2 - 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
				400.5  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 department, 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 county or local government or from entity
				contracting on its behalf. The department or its 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
				department 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
				400.5  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 department 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.