XI. Procurement and Contract Management

Guide to Financial Operations

XI.7.B Repayment Agreements

XI. Procurement and Contract Management
Guide to Financial Operations

Repayment agreements are agreements between the State and a municipality, public authority, or other third party. Generally, repayment agreements provide for the repayment of amounts expended from appropriations as advances by the state, and the terms of the repayment agreements are detailed in the appropriation language for the state funds being advanced. Pursuant to Section 40-a of the State Finance Law, “no part of any appropriation made as an advance shall be available for expenditure until a written repayment agreement is entered into…” and advances must be repaid to the State. Repayment agreements can also be established for the repayment of past-due debt. (See Section 7.C - Deferred Payment Arrangements of this Chapter, for additional information.)

In many cases, the repayment agreement provides for both the advance/payment of funds by the State and the terms of the repayment to the State. In these cases, although there is only one contractual agreement, the agency must create two SFS transactions: one for the expenditure/advance and one for the repayment to the state.

Process and Document Preparation:

The agency submits the original contract, along with as many signature pages as it requires. (See Section 2.E - Submission of Agency Contracts and Amendments of this Chapter, for additional information.) State Attorney General approval of the agreement is required.

Repayment agreement New York State Contract IDs must begin with an “F” prefix and are created in the Customer Contracts Module. An advance/payment agreement associated with a Repayment agreement is created as a Procurement Contract in the Purchasing Module. This payment agreement should be assigned the same New York State Contract ID as the repayment agreement, but with a “C” prefix instead of an “F” prefix. For example, C654321 would represent the advance/payment agreement corresponding to repayment agreement F654321.

The Division of Homeland Security and Emergency Services (DHSES) has a small group of contracts related to emergencies (e.g. fire trucks) that are handled in a slightly different manner. Contact OSC Real Property Negotiated Contracts (RPN) Team for additional information.

Once an agency has determined whether a repayment agreement is subject to prior approval by OSC (see Section 2.A - Thresholds of this Chapter, for more information), the agency selects the appropriate Audit Type. The SFS uses the Audit Type to determine whether the transaction will be routed to OSC for prior approval, and if so, to which audit team in the OSC Bureau of Contracts (BOC) it will be directed.

Process and Document Preparation Specific to the SFS:

Repayment agreements are created in the Customer Contracts Module and require a New York State Customer ID. (See Section 7 – Revenue and Repayment Agreements of this Chapter, for additional information.)

Repayment Agreement transactions cannot be bulkloaded into the Customer Contracts Module. All agencies, both Online and Bulkload, must create Repayment Agreement contract transactions directly in the Customer Contracts Module of the SFS using an “F” prefix and 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. The associated payment agreement is created in the Procurement Module with a “C” prefix. For transactions subject to OSC approval, users generate a Single Transaction Summary (STS) for each transaction and submit both STS forms with the agreement (contract) and required documents to OSC.

Guide to Financial Operations

REV. 02/12/2020