Q1. What does “Direct Funded” Agency mean?

A1 . All funds, payments, disbursements and financial reporting are managed directly by the Agency. Once the Agency budget is registered with the City Controller's Office, the Agency receives an advance payment check from the City (DYCD) . The Agency uses the advance to pay expenses and reports them directly to DYCD; DYCD processes and reimburses the Agency directly for the reported expenses

Q2 . What does: “Non-Direct Funded” Agency mean?

A2. The Agency funds, payments, disbursements and financial reporting are managed by YMS.  

The Agency DYCD budget and any advance payment and reimbursement of expenses are forwarded to YMS by DYCD .  

DYCD funded Agencies submit to YMS their invoices and/or payroll timesheets for processing.

YMS will process and pay the vendor invoice and/or employee timesheet directly, and in accordance to the approved Agency budget.

An Agency Monthly Expense Report (PERS) is prepared by YMS at the end of each month and sent to DYCD on a timely basis. Upon the approval of the reported expenses, DYCD will reimburse YMS directly in behalf of the funded Agency for the reported expenses.

All financial documentation and records of payments are kept at YMS Office.

YMS will provide the funded Agency with a Fiscal Procedure Manual as well as guidance and support.

All payroll tax issues (except for multi-funded Agencies) will be handled directly by YMS with the appropriate tax authorities. The Agency may also seek consultation with regard to funds allocation and/or procedural requirements.

YMS will make available to DYCD and the DYCD funded Agency the following reports: Budget Balance, Detail General Ledger, Revenue, Trial Balance, Summary of Expenses Paid on the Agency's Behalf, Record of Paid Bills, Payroll Reports, Employer Tax Payment Reports and Information, Cancelled Checks, etc.

All other FAQs listed below pertain to Non-Direct Funded Agency only .

Q3 What are the procedures allowing access to funds allocated in the budget?

A3. DYCD provides YMS with a copy of the Agency budgets and a Registration List of contracts listed under YMS management. An introductory letter is then sent by YMS to the Agency along with an Agency Signature Authorization form to be completed by the Agency authorized personnel. Only the individuals' signatures named on that form will be recognized as approval to process invoices and employee's timesheets and/or any other supporting documentation.

Upon registration of the Agency contract, DYCD notifies the Agency.

Q4.What to submit to YMS for direct payments of Agency liabilities:

A4. For payments to be processed, DYCD policy requires that the Agency supply original documentation, which has been approved by an Agency authorized personnel.

TO PROCESS PAYROLL:

•  time-sheets – by the positions listed on the budget

•  Form W-4

•  New Hire Notification Form

•  Personal Action Form

TO PAY CONSULTANT/CONTRACTOR/SUBCONTRACTOR:

•  Contract Agreement

•  Timesheets or an invoice for the services performed

TO PAY STIPENDS:

•  Stipend Vouchers

TO PAY THE RENT:

•  Copy of the current lease. Based on the lease, a set rent amount would be paid the first day of the month up to the budget limit.

TO PAY ANY OTHER EXPENSE (purchases, utilities, insurance etc.)

•  Original invoices/bills issued to the name of your program that is dated within the program activity period. The period usually matches the Fiscal Year, beginning on July 1 and ending on June 30 the next year

•  Please note, that Equipment purchases have bidding requirements that have to be fulfilled (see Fiscal Manual – page 11 and 12).

Q5. Can the Agency receive any advance for small expenses?

A5 . Yes. There is a maximum of $200.00 that can be advanced to the Agency as a Petty Cash Fund (see Downloads for a Request Form). Please note, that DYCD policy limits a single purchase from the Petty Cash Fund of not more then $100.00 and to no more than 100 post stamps.

Once the Agency brings receipts covered under the budget, YMS will replenish the Petty Cash Fund. At the end of the Fiscal Year, the Petty Cash Fund has to be liquidated – either by valid receipts that we would apply against the advance, or by a refund from the Agency.

Q6. How can the Agency receive a reimbursement for the expenses already paid? (Direct Reimbursement)

A6. The fundamental idea behind YMS's managing DYCD grants was to disburse the funds on the agencies' behalf and to gather all the original documents that support these disbursements. It allows the independent auditors to review all expenses at one time and in one place. It also limits the Agency's responsibility for applying the expenses to the appropriate budget categories.

However, due to late budget approval or to late contract registration with the City Controller's Office, some programs operate using funds from another source and therefore are requesting a reimbursement when the DYCD contract is finally registered.

To process a reimbursement to the Agency YMS requires the same original documents that would be needed to make a direct payment to your vendors.

Additionally, a proof of payment is required for each expense, usually a copy of a cancelled check from Agency to the vendor. If payment was done by Credit Card, we would need a Credit Card Statement so that we may pay the Credit Card Company directly. If the Credit Card was already paid, a copy of the cancelled check attached to the Statement will allow us to reimburse the Agency back.

The use of Debit Card requires a Bank Statement showing the appropriate charges.

Sometimes an Agency employee pays for the expenses using his/her credit or debit card. In such case YMS might reimburse that person, if the Agency did not do it yet. Please note that expenses paid by the Executive Director need an approval from the chair-person or a board member.

Please note, that cash payments should be limited to small amounts not exceeding $100.00 per purchase. Any higher cash payment requires a cashier's receipt or vendor's authorized receipt for such payment.

Q7. How would the Agency know what funds are still available in the budget?

A7 . Agencies should call YMS for a Budget Status Report, which is updated after each batch of checks is created. There are other Fiscal reports available at any time upon request.

Q8. Who is responsible for PERS (Monthly Expense Report) submission to DYCD? What about programmatic reports?

A8. YMS provides DYCD with PERS after each month. However, all of the programmatic reports should be forwarded directly to the DYCD Program Department.

Q9. Who is responsible for payment of withholding taxes and filing the quarterly tax returns with the IRS and NY State Department of Taxation?

A9. There are two categories of the taxpayers:

The only concern of the Agency should be to have sufficient funds in the budget to cover all the taxes. YMS would help Agency calculate the funds needed up to the end of the Fiscal Year.

The Agency is solely responsible for filing consolidated tax returns and for timely tax payments. YMS pays the DYCD portion of taxes after each payroll and on a quarterly basis prepares partial tax returns that are forwarded to the Agency.

The Agency must combine the partial returns with all other payroll paid and file only one federal and one state tax return .

YMS processes quarterly payments of the Unemployment Insurance Contribution and forwards it to the Agency along with the partial tax returns. If the funds in the budget are insufficient for SUI payment, YMS will generate a check up to the budget limit only. The remaining balance is the Agency's responsibility.

Q10 . Who audits “non-direct” funded Agencies?

A10 . All of the grants that were processed through YMS are audited by independent auditors designated by DYCD, and there is no need for the Agency to contract other auditors for such a grant.

If you didn't find an answer for your question here, please refer to the Fiscal Manual. If you need any assistance and/or explanation, please contact us .