The distribution of the STIP investment earnings (STIP interest) to participating funds is governed by §98-a of the State Finance Law which provides in relevant part that all income received on any moneys invested “shall be credited to the fund or funds from which such moneys were invested, provided, however, the Comptroller is hereby precluded from crediting interest earnings to funds which:
- Are funded entirely from the general fund; or
- Are, or were, authorized to receive temporary loans pursuant to subdivision five of section four of the State Finance Law; or
- Are federal funds, except such funds which are required to earn such interest pursuant to a court order or federal law or regulation; or
- Are agency funds, except such funds which are held pending the outcome of litigation or are required to earn interest pursuant to a court order, contractual obligation, or state or federal law or regulation, or are appropriated.”
Temporary Loans and Agency Requests for Interest Earnings
Each year the Enacted Budget includes new authorization for temporary loans in specific funds listed in Article VII language bills. SFL §98-a further states:
“Notwithstanding the provisions of paragraph (b) of this subdivision, the Comptroller shall credit or charge interest to fund/accounts which are authorized to receive temporary loans if so requested by the state department or division responsible for such fund/account within thirty days of the beginning of each fiscal year or thirty days following the final approval of any bill containing language authorizing such temporary loans, whichever is later, and interest must be credited or charged from the first day of such fiscal year.”
Within ten days of the beginning of each month, the State Comptroller shall credit or charge interest to funds based upon the funds’ average daily balance during the preceding month. Eligible funds will be credited STIP interest at the fund, project and chartfield 3 level (if the fund uses these chartfields). It is important to note that the distribution of STIP interest is based on interest earned each month, and not on the amount of interest that was received from maturing investments in a given month.
The Comptroller’s STIP distribution process posts revenue to the receiving funds using the NYS01 General Ledger Business Unit and account code 31701 – STIP Interest.
In instances where an agency deems a specific fund or project closed and requires residual STIP interest moved to facilitate such closure, the agency shall be responsible for moving STIP from those specific chartfields, via General Ledger journal entry to an allowable set of chartfields. Additionally, residual average daily balances may cause future STIP allocations to post to a fund/project/CF3 and may require additional monitoring and General Ledger journal entries by agency staff to completely zero out. Agencies should utilize their business unit and the STIP account code (31701) when creating the journal entries. In no instance shall interest in excess of what was considered earned to the fund or project be moved. All such transactions will be reviewed by OSC to ensure accuracy. All agency General Ledger journal entries moving STIP must have adequate documentation attached to explain the movement or it will be denied by OSC. If an agency needs assistance in determining where residual STIP can or should be moved to, please email [email protected] explaining the situation for guidance.
Guide to Financial Operations