DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
(FAQs)
Q1. Why don’t I see my new need in PASSPort?
A1. New Needs are submied through the New Need System, Service Now. Once approved by DHS and
OMB, an Amendment will be iniated with the ACCO for it to go through the registraon process. An
Amendment Task is iniated concurrently at this me in PASSPort. Once the task is approved, and the
Amendment is registered, the funds will be acve in the budget.
Q2. What’s the max amount of start-up?
A2. Providers may request up to 2/12ths of the annual operang budget.
Q3. What can I use start-up for?
A3. Start-up funds can be ulized for personnel, materials, and supplies that are necessary to make the
facility or program operaonal prior to the facility opening.
Q4. How soon can I get start-up funds or an Advance? Does my contract have to be registered to get
it?
A4. A contract must be registered before Start-up funds or Advance payments can be requested.
Advance payments can only be requested against approved, acve budgets and registered contracts.
Advances requests may be submied and approved prior to the start of the Fiscal Year if the annual
budget for that scal year has been submied and approved. Advance payments will be made aer July
1st.
Q5. Why can’t I bill if there’s a budget modicaon pending?
A5. Quality assurance procedures in PASSPort will prevent you from subming an invoice if there is a
Budget Modicaon pending. This prevents errors and overspending within the budget from occurring.
Q6. Can I bill for expenses before we open? What cost can you include in start-up?
A6. Start-up expenses can include personnel, materials, and supplies that are necessary to make the
DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
facility or program operaonal. Sites can bill for start- up expenses once the contract is registered and
the budget is Acve in PASSPort.
Q7. What’s the dierence between start-up & advance funds?
A7. Start-up funds are associated with a new facility or program being opened. These funds can be used
to pay for personnel, materials and supplies which are necessary to make the facility or program
operaonal. An advance is a payment against a New Fiscal Year Budget.
Q8. How do you dene a one-me cost for start-up funds?
A8. Examples of one-me costs for start-up are materials, equipment, and oce furniture for sta.
Q9. Can I delay recoupment of the Advance?
A9. Advances will be recouped against invoices beginning with the payment for the January service
period. The guideline for recoupment is 10 % each month from January to May, with the balance (50%)
to be recouped against the scal year close-out. Advances can also be recouped in 3 installments if
preferred. Any changes to the recoupment policy will be reviewed on a case-by-case basis.
Q10. Does an invoice have to match what is in my budget?
A10. Yes, invoices must accurately reect expenses in accordance with the approved budget, which
were actually paid for by the Provider during the month covered by the invoice. The acve budget in
Accelerator itemizes expected expenditures for the year, and the Provider must make every eort to
ensure the expenses do not exceed the line-item budget. There may be instances of unexpected OTPS
costs. If the cost exceeds the amount on the budget line, the Program Administrator should be noed;
as this will require a Budget Modicaon.
The purpose of Budget Modicaons is to give providers exibility by allowing them to request certain
adjustments to the line-item allocaons in the budgets. Budget Modicaons must be submied 30 days
in advance of the proposed eecve change date. Budget Modicaons submied to revise year-end
DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
budgeted amounts must be submied within a meframe that allows for the 30-day approval period
required by DHS. DHS does not guarantee aer the fact approval of any major budget changes.
Q11. Can paral payment be issued for invoices?
A11. No, the Agency will approve the invoice or return it for revision. You will receive
nocaons and/or alerts in PASSPort and in your email inbox if acons are required by your
organizaon. Please note that your organizaon can delete invoices that are “Pending Submission” and
can withdraw invoices that have been “Returned for Revisions”.
Q12. What is the metable for my invoice to be reviewed and approved by DHS?
A12. To be reimbursed, Providers must submit an invoice in PASSPort to DSS by the 15th day
of the following month, or if applicable, Providers must accept the CARES-generated invoice within 14
business days. The standard metable for DHS and DSS to approve an invoice is 10 days. Late
submissions or invoices Returned for Revision will cause delays. DSS Finance will issue payment once an
invoice is approved in the PASSPort System. The process may take up to 5 business days to receipt of the
EFT.
Q13. What level of detail is required when I submit my invoice?
A13. Invoices must accurately reect expenses in accordance with the approved budget, which were
actually, paid for by the Provider during the service period covered by the invoice. Back-up
Documentaon is to be uploaded into PASSPort. Common backup documentaon
requests include sta rosters with salaries, invoices from sub-contractors and vendors, and receipts for
line-item expenditures. Program sta will perform random reviews of OTPS budget line items
throughout the scal year and request documentaon to validate these expenses.
Q14. How do I get approval to change stang?
A14. Any sta changes made must be in conformance with cercaon requirements and standards of
DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
good care. If addional sta will change the boom line of the Approved Contract Budget, a New Needs
Request must be submied via the ServiceNow online portal. All New Needs Requests are subject to
DHS, DSS, and OMB approval.
Q15. Why can’t I pass expenses between PS and OTPS – e.g., temporary sta to cover a gap in PS?
A15. To pass expenses between PS and OTPS lines, the Provider must request a Budget
Modicaon. Budget Modicaons require proper juscaons and are subject to approval by Shelter
Budget Oce and Programs.
Q16. Why can’t I budget for accruals?
A16. The budget is designed to meet the nancial needs of the program for the enre scal year and not
result in accruals.
Q17. What can I use my accruals for at the end of the scal year, and what can’t I use it for?
A17. Providers are permied to bill the Agency for accrued expenses only with the nal June close-out
invoice. This invoice should include all unpaid liabilies as of June 30. If any accrued expenses are
included in the nal June close-out invoice, the Provider must also submit a detailed itemizaon of the
accrued expenses. The Provider must update the report showing which accruals were liquidated on a
monthly basis unl all the accruals are liquidated. The Provider must ensure the Agency is not
overbilled for these expenses. For example, if a provider takes food delivery on June 30th but does
not receive and pay the bill unl aer June, this is considered an accrued expense.
Q18. What’s the admin overhead max? And fringe?
A18. Administrave Overhead expenses are costs not associated with goods or services.
All Administrave Overhead percentages charged should be supported by the most current Cered
Financial Statement, accepted NICRA, or 10% De Minimis if applicable.
DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
The overhead max amount is 10% or your approved ICR percentage of direct costs, and the provider
must submit the appropriate supporng documentaon to jusfy the administrave overhead. Providers
cannot include Rent, Real Estate Tax, or Debt Service under the administrave overhead.
The maximum fringe amount is 26%. Any rate that exceeds the 26% requires supporng documentaon
in addion to Fringe Benets Worksheet. (There may be dierences in the percentage across the types
of providers/contracts)
Q19. Is there a schedule for annual reviews and close-out budgets?
A19. Providers with expense-based or rate-based contracts must submit their close-out nal budget
modicaon no later than September 1st.
June invoices do not need to be included in the closeout. The June invoice is usually the nal invoice.
However, in some limited cases, to address cash ow, we will consider processing a June invoice in
addion to a nal invoice.
Q20. What do I need to do to get my new scal year to advance?
A20. Submit your New Fiscal Year Budget. Once it is approved and acve, advances can be requested in
Accelerator.
Q21. What are Bridge Loans? How is a Bridge Loan dierent from an Advance?
A21. Bridge Loans are loans made to Providers against unregistered contracts during the contract.
registraon period. To be eligible, an applicant must either currently hold a contract or other funding.
agreement entling the applicant to receive funding from the City’s expense budget or must have such
a contract or funding agreement pending. In addion, the Applicant must demonstrate that it is
experiencing signicant diculty in meeng its operang expenses. A bridge loan is NOT an advance.
An Advance is an early payment given to Providers against registered contracts with an acve PASSPort
budget.
Q22. How are COLAs added to the budget?
DSS and DHS Workshop on Contracts and Budgets-
Frequently Asked Quesons
A22. COLAs are added to the contract via a contract amendment. This requires the amendment to be
registered and the amount added to the total contract budget in the PASSPort.
Q23. What is the ming for new contracts?
A23. Open-ended RFPs take 6 months. Contract management acons take 3-6 months. RFPs take 9-12
Months.
Q24. What will be available at public hearings?
A24. The dra contract will be available at public hearings.
Q25. Can I include accrued expenses in my closeout?
A25. Yes, the expenses can be included in the June Invoices as this is not due unl 9/1. Please contact
your assigned Budget Analyst if you need assistance.
Q26. What is a sub-budget?
A26. Sub-budgets are ulized when a parcular contract has either mulple sites/locaons or funding
streams. For example, if a Provider is funded through CTL (DHS) budgets as well as ESG grants, there
would be a budget for the DHS poron and a separate budget for the ESG poron. Please note that
funding cannot be passed between the two sub-budgets.