IMMEDIATE ACTION REQUIRED BY DISTRICTS WITH PAST DUE FINAL COST REPORTS FOR CAPITAL CONSTRUCTION PROJECTS:
PAST DUE FINAL COST REPORTS MUST BE RECEIVED IN THE STATE AID OFFICE AT SED BY 12/31/12 OR ALL BUILDING AID PAID WILL BE RECOVERED AND FUTURE AID PAYMENTS WILL CEASE.
- Section 31 of Chapter 57 of the Laws of 2012 provides for amnesty for
late filed final cost reports. Final cost reports must be received
by December 31, 2012 to qualify for the amnesty provision.
For capital construction projects with a commissioner’s approval date prior to July 1, 2011, late submission of final cost reports results in the loss of all Building Aid on the project. Under the amnesty provision, rather than lose all aid associated with projects, a late filing penalty will be assessed. The penalty will be equal to the calculated annual aid payment multiplied by the number of years the final cost report was late. The penalty will be taken by reducing the cost allowance associated with the project, resulting in a new amortization which spreads the penalty over several prior aid years and the remaining life of the project.
- How does this affect your district?
- Projects for which final cost reports are late but have not been submitted as of the date of this posting:
If you believe your district may be eligible for amnesty, the Office of Facilities Planning can assist you in identifying projects with late or unfiled final cost reports. Any information provided is a courtesy; districts are responsible for submitting all past due final cost reports by 12/31/12 regardless of whether the project appears on a past due list prepared by Facilities Planning.
The reduced penalty described in I. above will be applied if these past due final cost reports are received in the State Aid Office at SED by 12/31/12. If they are not received in SED by 12/31/12, all Building Aid paid on the project(s) will be recouped by the State and no Building Aid will be paid going forward.
The amnesty does not apply to projects for which final cost reports due after 12/31/12 are filed late. For these projects, all Building Aid paid will be recouped by the State and no Building Aid will be paid going forward.
- Projects for which final cost reports due on or before 6/30/12 were filed late and SED has already recouped all Building Aid paid and stopped future aid payments:
Districts should complete the spreadsheet below and email it to Louise Gallerie (firstname.lastname@example.org) and Lynn Butler (email@example.com) in the State Aid Office. Building Aid Unit staff will estimate the penalty for each eligible prospective project and/or retro bond, and share with the district the approximate impact of the penalty over prior years and the remaining life of the project or bond.
Pursuant to Chapter 57 of the laws of 2012, Building Aid to be restored for aid years up to and including 2012-13 will be processed as prior year revisions and paid as funds become available. Beginning with the 2013-14 aid year, Building Aid for the remaining years of the new amortization will be paid as part of current year General Aid payments, as long as the State Aid Office receives the attached form by 6/15/2014.
- Projects for which final cost reports due on or before 6/30/12 were filed late but SED has not yet recouped any Building Aid or stopped future aid payments:
Upon entry of final project costs into our system, Building Aid due for the current and remaining aid years will be generated based on the final cost allowance. Building Aid Unit staff will begin to process prior year revisions for finalized projects in receipt date order. If a final cost report was late, but was received by 12/31/12, the penalty will be calculated and the cost allowance reduced accordingly before any revisions are processed. Once the cost allowance is reduced, Building Aid for current and future aid years will reflect the reduction.
As with regular final cost report processing, net supplemental aid for prior years will be paid as funds become available for that purpose, and overpayments for prior years will be taken from upcoming payments.
Please send Final Cost Reports to the State Aid Office at the address below:
The State Education Department
State Aid Office
Attention: Building Aid Unit
Room 507 West Hall, Education Building
89 Washington Avenue
Albany, NY 12234
Note: This memo applies only to capital projects approved by SED prior to July 1, 2011