Overall coordination of the state’s implementation of CMIA was assigned to the Division of the Budget (DOB), which partners with the Office of the State Comptroller (OSC) on virtually all aspects of implementation.

OSC is responsible for most aspects of the state's federal grant and payment management processes, which are the primary focus of CMIA. DOB contracts with a certified public accounting firm to assist state agencies with CMIA implementation on an as-needed basis, and provides for payment or receipt of CMIA interest liabilities by the state.

Cognizant (“lead”) state agencies responsible for administration of covered programs have designated CMIA contacts, usually located in the budget or finance office, who are regarded as the state’s subject matter experts for purposes of their agency’s CMIA program(s). Such individuals are expected to:

• Bring any potential CMIA issues associated with their agency’s covered programs to the attention of OSC and DOB CMIA staff as quickly as possible;
• Help analyze the CMIA implications of such issues; and
• Help frame the state’s response, possibly including participation in negotiations with Treasury Department or other federal agency CMIA staff.

Most of New York State’s CMIA interest liabilities are attributable to factors outside the control of individual state agencies. However, on rare occasion inefficient cash management practices by one or more state agencies may unnecessarily inflate the state’s CMIA interest liability. Therefore, at any time OSC and DOB may elect to jointly analyze state interest liabilities for any or all covered federal programs, for purposes of identifying opportunities to improve state cash management practices and reduce such liabilities. In those instances, CMIA contacts for the affected lead state agencies will be expected to work closely with OSC and DOB in addressing any agency cash management weaknesses identified.

State interest liabilities will be paid to the Federal Government from General Fund appropriations provided for such purpose. Federal interest liabilities are credited to the State Special Revenue - Other “Federal Liability Account,” under the Division of the Budget’s CMIA Program.

Guide to Financial Operations

REV. 03/19/2012