In some instances, payments are made to vendors, including sub-recipients, before the vendors have disbursed their own funds. The funds received from the State are often deposited into an interest-bearing account maintained by the vendor. If the vendor does not disburse the funds, the agency should require the funds be returned to the State. In such instances the agency should calculate the amount of interest earned by the vendor. If the calculated amount is greater than $25, agencies should require that amount be paid to the State.
Once the interest payment is received, it should be deposited to the NYS General Checking account one of the following two ways:
| Intent | Process |
|---|---|
| Decrease payment made to vendor | Process an Adjustment Voucher. See Section VII.3 AP Adjustment Vouchers / Refund of Appropriations. |
| Deposit as revenue to the Federal Fund | Process as a Direct Journal Payment in SFS. See Section VII.2 Miscellaneous Receipts / Accounts Receivable Receipts. |
Following DTF-Treasury’s receipt of the refund, OSC BSAO will review the voucher, and if appropriate, post the transaction. The agency must then create and submit a Single Payment Voucher for returning the funds to the federal government. See Section 8.C - Payments to the U.S. Treasury or Section 8.D Electronic Refund Payments to the U.S Treasury of this Chapter.
Under no circumstances should the single payment voucher be submitted until the AR deposit has been posted in the SFS via one of the deposit methods mentioned above.
Guide to Financial Operations
REV. 02/16/2023