9 CRR-NY 298.5NY-CRR
9 CRR-NY 298.5
9 CRR-NY 298.5
298.5 Financing and service charges.
(1) An annual internal service fund appropriation is made by the State Legislature to the Office of General Services to provide funding for the SASP.
(2) All program expenditures and disbursements of the SASP are made by the Office of Financial Administration as approved by OGS in accordance with FMR 102-37.55, 102-37.275 through 102-37.285, 102-37.495, 102-37.500, 102-37.505 and Education Law section 3712.
(3) All revenue generated by the SASP through the assessment and collection of service charges is deposited into this fund to annually offset all direct and reasonable indirect program expenditures of the SASP. Service charge receipts from donees are accepted only in the form of organizational checks or official State vouchers, and are deposited and credited by the Office of Financial Administration.
(4) In the event that funds from service charges are received in excess of the total of all program expenditures, these funds may be put in a reserve account for up to three previous years of operational expenses. Any subsequent service charges to donees will be reduced to the extent necessary to offset any excess income. If this three year amount is exceeded, we will lower the five percent service charge that is now in place to two percent until such a time that the reserve account is back to the three year limit.
(b) Service charges.
(1) Service charges assessed by the SASP shall be fair and equitable in relation to all costs, both direct and indirect, incidental to each transfer and the service performed, and subsequently necessary to be performed by the SASP. Service charges assessed by the SASP, however, shall be adequate to assure full recovery of all costs annually incurred in the administration and operation of the SASP program. Service charges in general are assessed as per the following guidelines:
(i) item screened in usable condition with a realistic acquisition cost will be assessed with an approximate five percent service charge;
(ii) items screened in usable condition with an unrealistic acquisition cost will be assessed with an approximate five percent service charge based on comparable acquisition costs researched from the intranet. This could result in either a higher or lower service charge;
(iii) items screened in new condition may be assessed a higher percent service charge - this higher percent shall not exceed 10 percent;
(iv) items screened in poor condition, yet usable or repairable by a donee may be assessed a lower percentage service charge;
(v) items screened in poor condition, yet requested by a donee for cannibalization purposes will be assessed a lower service charge not to exceed two percent;
(vi) items screened and requested which will require extensive transportation and handling costs by the donee may receive a lower service charge based on the normal five percent;
(vii) items screened and requested by schools or hospitals for educational purposes may be exempt or assessed a lower service charge; and
(viii) items screened and requested by entities that service homeless provider programs will, at maximum, be assessed only nominal fees.
(2) Total SASP costs to administer and operate the program include, but are not limited to, the following basic cost areas:
(i) personnel costs, consisting of salaries, wages, fringe benefits, and prorated OGS Human Resource Department related costs;
(ii) transportation costs, including purchase, operations and maintenance of cars and trucks;
(iii) telephone communications;
(iv) administrative and accounting costs;
(v) printing and media distribution, including postage;
(vi) supplies and equipment, including computers, paper, tags, forms, etc.;
(vii) vehicular insurance; and
(viii) travel expenses and per diem.
(3) The source of funding for the operations of the Bureau of Federal Property Assistance program is the service charge assessed to items of property that are distributed through the program. Therefore, the financing of the program is entirely dependent upon service charges which are paid by donee receiving the property. These charges are designed to cover expenditures of operating the unit. Recipients are responsible for arranging the pickup of items they are awarded and pay for all transportation, packing, crating, and handling related costs. Furthermore, these revenues may be used for but are not limited to the purchase of necessary equipment and supplies, maintaining a three year financial reserve and rehabilitation, repairing or replacing parts of Federal property. The program overhead includes but is not limited to general operating expenses of the program such as screening cost, personnel, utilities/communications, fuel, compliance costs, accounting/billing, insurance, printing, data processing and depreciation. These service charges are assessed on a fair and equitable basis to recover the program's monthly operating expenditures from the monthly property receipts unless the program is maintaining excessive operating reserves. If excessive operating reserves are developed, service charges will be adjusted to meet the financial precepts as stated.
(4) Since Public Law 94-519 allows for different levels of service to be provided to the recipients of Federal property, the method of determining service charges varies depending on the level of service actually being provided to the recipient of the property. These general types of service levels are currently provided to the donee:
(i) property specifically screened by the donee's representatives and directly shipped to its location; and
(ii) property directly shipped to the donee's location but not screened by the donee's representatives.
(5) When the property is screened specifically by donees, the cost would be for the document(s) processing charge at the time of donation transfer, plus any other direct costs to the SASP associated with the property during its period of compliance. These direct costs include but are not limited to transportation expense for the transfer, additional processing charges for item overages and field compliance inspections. The compliance inspections cost includes prorated program costs, transportation costs and other travel expenses incurred during the compliance review(s).
(6) In the determination of the normal service charges, all of the direct charges associated with the obtaining of the property are assessed to each shipment of property. Upon final inspection of the property, these costs plus a representative portion of the programs indirect costs are prorated among the individual items in the shipment. The basis of this proration is the current condition, value, fragility, quantity, anticipated future storage needs and the compliance costs.
Historically, the indirect costs have a 3:1 ratio to direct costs.
(7) The above methods of financing the SASP activities and determining service charges are consistent with the financial precepts of the SASP program which are:
(i) each source of revenue is self-supporting and receives an equitable share of the total program overhead;
(ii) financial reserves shall not exceed the three previous years of operating expenses;
(iii) operating expenses shall not exceed 15 percent of the acquisition cost of the property received on an annual basis; and
(iv) the total service charge receipts for any given calendar year will not exceed 15 percent of the original government acquisition cost of the property donated.
(c) Federal property inventory system.
(1) Accountable items are those items of property with an original government acquisition cost or fair market value of $5,000 or more and any passenger vehicles. For all accountable items of property, comprehensive transactional records are maintained.
(2) As an operating unit of the Office of General Services, the SASP is required to use generally acceptable accounting practices. An appropriation account is assigned to the program and is the official record of its financial activities. Expense transactions are processed using the internal control system enacted by OGS. Purchases require preapproval by OGS' purchasing unit prior to SASP purchase. Payments are processed by OGS' claims unit, following processes compliant with guidance established by the New York State Comptroller's Office and the State Finance Law.
(3) Exceptions. Special or extraordinary costs may be added to the appropriate service charge as follows:
(i) Rehabilitation property. Direct costs for rehabilitating property.
(ii) Overseas property. Additional direct costs for returning the property (from overseas bases).
(iii) Long-haul property. Charges for major items with unusual delivery costs. Any such costs which are anticipated will be discussed with the donee prior to shipment.
(iv) Special handling. For dismantling, packing, crating, shipping, delivery and other extraordinary handling charges.
(v) Screening. Extraordinary costs incurred in screening property.
(4) Minimum service charges are assessed in cases where the State agency provides minimum services, and no other direct costs are involved. They reflect the basic costs of document processing and the administrative and overhead costs of the State agency, prorated by the number of documents processed.
9 CRR-NY 298.5
Current through May 31, 2021
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