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Changes to surplus revenue retention official

The Executive Office of Administration and Finance’s Operational Services Division has posted a Notice of Amendment Regulation for 808 CMR 1.00, Compliance, Reporting and Auditing for Human and Social Services. Specifically, they have amended the regulation to:

  • Eliminate cumulative limits on surplus revenue retention by not-for-profit contractors;
  • Increase the annual limit on surplus revenue retention by not-for-profit contracts from 5 percent to 20 percent;
  • Create parity between for-profit and non-for-profit purchase of service vendors’ annual earnings limits, unless otherwise agreed to by the contracting agency;
  • Amend the definition of capital items for purposes of financial reporting to align with federal requirements; and
  • Correct various changes in terminology or statutory references that are no longer accurate.

The notice also discusses what sections were changed in detail. All other aspects of the regulation, including use of assets, remain the same. The amendments will be effective upon final publication for FY 2016 UFR filings. OSD will automatically issue waivers for the surplus regulation over the 5 percent and 20 percent cumulative for FY ’16 only. If your agency has exceeded the 20 percent (not cumulative) surplus in FY ’16, your agency will be held liable to repay the amount over the 20 percent surplus revenue retention.

For additional information about these amended regulations, click here. If you have questions about the Surplus Revenue Retention Amendments, please e-mail Bill Yelenak or call him at 617.428.3637 x122.