Q1 .What are the basics for CBOs working with YMS?

A1. The CBO’s funds, payments, disbursements and financial reporting are managed by YMS.  
The CBO’s DYCD budget and any advance payment and reimbursement of expenses are forwarded to YMS by DYCD .  

DYCD funded CBOs 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 with the approved CBO’s budget.

A CBO 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 based on the funds allocated in the CBO budget.

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

YMS will provide the funded CBO with a Fiscal Agent  Manual  as well as guidance and support. . The CBO may also seek consultation with regard to funds allocation and/or procedural requirements.
All payroll tax issues related to payroll processed by YMS will be handled directly by YMS in contact with the appropriate tax authorities.

Q2. What are the procedures allowing CBO access to the funds allocated in the budget?

A2. DYCD provides YMS with a copy of the CBO’s budgets and a Registration List of contracts assigned  to YMS Management. An introductory letter is then sent by YMS to the CBOs along with a  Signature Authorization form to be completed by the CBO authorized personnel. Only the signatures of the individuals’ named on that form will be recognized as an approval to process invoices and employee's timesheets and/or any other supporting documentation.

Upon registration of the CBO’s contract, DYCD notifies the CBO.

Q3.What to submit to YMS for direct payments of CBO’s liabilities:

A3. For payments to be processed, DYCD policy requires that the CBO supply original documentation, which has been approved by a CBO authorized personnel.

TO PROCESS PAYROLL:
Please refer to Fiscal Agent Manual for detail information.

TO PAY CONSULTANT/VENDOR/SUBCONTRACTOR/CONDUIT:
•  Contract Agreement for Vendor/ Subcontractor/Conduit
•  Timesheets or an invoice for the services performed by Consultant/Vendor/Subcontractor
    Conduit’s invoices approved by CBO that is DYCD grantee

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. If there is no lease agreement, a letter from the landlord needs to name the tenant, rent period and monthly charge.

TO PAY ANY OTHER EXPENSE (purchases, utilities, insurance etc.)
•  Original invoices/bills issued to the name of the CBO and dated within the program activity period. That period usually matches the Fiscal Year, beginning on July 1 and ending on June 30 the next year.
•  Please note that total purchases of goods and services for the amount exceeding $ 5,000. require 5 telephone bids from different merchants. That is also true for the several purchases from the same merchant within the consecutive 30 days.

Q4. Can the CBOs receive any advance for small expenses?

A4 . Yes. There is a maximum of $500.00 that can be advanced to the CBO as a Petty Cash Fund. Please note, that DYCD policy limits a single purchase from the Petty Cash Fund to not more than $100.00 and to no more than 100 post stamps.
Once the CBO 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 CBO.

Q5. How can the CBOs receive a reimbursement for the expenses already paid? (Direct Reimbursement)

A5. The fundamental idea behind YMS managing DYCD grants was to disburse the funds on the CBO’s 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 CBOs responsibility for applying the expenses to the appropriate budget categories.

However, due to late budgets’ approval or to the late contracts’ registration with the City Comptroller'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 CBO YMS requires the same original documents that would be needed to make a direct payment to your vendors. We may, however, accept the copies of the original invoices/receipts that were paid by CBO.

Additionally, a proof of payment is required for each expense, usually a copy of a cancelled check from the CBO 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 CBO.

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

Sometimes a CBO employee pays for the expenses using his/her credit or debit card. In such case YMS might reimburse that person, if the CBO did not make payment. 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 a vendor's authorized receipt for such payment.

Q6. How would the CBO know what funds are still available in the budget?

A6 . CBOs 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.

Q7. Who is responsible for PERS (Monthly Expense Report) submission to DYCD? What about programmatic reports?

A7. YMS provides DYCD with PERS after each month. However, all of the programmatic reports should be forwarded directly to the DYCD Program Department.

Q8. Who is responsible for payment of withholding taxes and filing the quarterly tax returns with the IRS and NY State Department of Taxation?

A8. There are two categories of the taxpayers:
  • Single – Funded CBOs - Such Agencies have no other payroll but that which is processed by YMS. That doesn't mean that the CBO has no other sources of funding; it strictly means that the only salaries paid to CBO employees are those processed by YMS.

The CBO doesn't have to prepare Forms NYS – 45, MTA-305 and 941; YMS files these with IRS and NY State on a quarterly basis. All the taxes withheld are paid in full after each payroll. The Unemployment Insurance Contribution and MTA Tax are paid quarterly.
The only concern of the CBOs should be to have the sufficient funds in the budget to cover all the taxes. YMS would help CBOs calculate the funds needed up to the end of the Fiscal Year.

  • Multi – Funded CBOs - Such Agencies pay their employees through YMS and through other sources.

In this case, the CBO 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 CBOs.

The CBOs 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 CBOs 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 CBO's responsibility.

Q9 . Who audits the CBOs?

A9 . All of the grants that were processed through YMS are audited by independent auditors designated by DYCD, and there is no need for the CBO to contract another auditor.

If you didn't find an answer for your question here, please refer to the Fiscal Agent Manual. If you need any assistance and/or explanation, please contact Cesar Davis, Operations Manager at 212-374-1385 x 102. .

BACK TO TOP