The purpose of this Section is to set forth requirements for establishing repayment agreements resulting from Deferred Payment Arrangements (DPAs).
The Division of the Budget has established policies and procedures for all state agencies regarding the establishment of DPAs. See the New York State Division of the Budget (DOB) Budget Policy and Reporting Manual Item K-0036.
A DPA is a written agreement between a debtor and a state agency, an agent of the state agency, or the State Attorney General's Office. The agreement establishes a payment schedule in order to satisfy a debt. A DPA represents an arrangement made by a State agency so that a debtor experiencing financial difficulty may fully resolve its liability through installment payments. A DPA tends to have associated administrative costs and should therefore be used only when needed.
A State agency should enter into a DPA with a debtor when this arrangement provides the most efficient and effective method of collecting a past-due debt.
An agency should follow the process outlined in the DOB Budget Policy and Reporting Manual Item K-0036 to determine if a repayment agreement should be used, and if so, must then determine if the repayment agreement must be submitted to the Office of the State Comptroller (OSC) for approval pursuant to Section 112 of the State Finance Law. See XI.2.A Thresholds for additional information on the threshold for revenue contracts.
The DPA should outline the deferred payment arrangement and include provisions that address failure to pay.
If OSC prior approval is required, the agency must submit the repayment agreement to OSC with a cover letter explaining the nature of the debt and how the final repayment arrangement was determined. The NYS Contract number assigned to the repayment agreement by the agency must begin with an “F” prefix. See XI.2.B Contract Numbering for additional information.
Process and Transaction Preparation:
DPA transactions are created in the Customer Contracts Module and require a New York State Customer ID. See XI.7 Revenue and Repayment Agreements for additional information.
DPA transactions cannot be bulkloaded into the Customer Contracts Module. Both Online and Bulkload agencies must create a contract transaction directly in the Customer Contracts Module of the SFS using the appropriate Audit Type. For additional instruction on this topic, visit the job aids published to SFS Coach. SFS Coach is accessible from the SFS home page after logging in with your SFS user ID and password. For transactions subject to OSC approval, users submit the agreement and required documents to OSC through the Electronic Documents Submission System (EDSS).
Guide to Financial Operations
REV. 09/27/2024