Annual Assessment Charges

Each institution is billed five times for a fiscal year: four estimated quarterly assessments (approximately 25% of the annual amount) based on the Banking Division’s estimated annual budget at the time of the billing, and a final assessment, or true-up, based on the Banking Division’s actual expenses for the fiscal year.  Any institution that is a Regulated Entity for any part of a quarter shall be assessed for the full quarter.

If an institution’s estimated quarterly payments exceed their final annual assessed amount, the overpayment shall be applied against the next estimated quarterly assessment, if less than or equal to such amount, with any excess refunded.  If the quarterly estimated charges are less than the final annual assessed amount, the institution will be billed the difference.

1st quarter billing is based on the Banking Division’s annual budget approved by the Governor. The 2nd through 4th quarter bills are adjusted to reflect the best estimate of actual annual expenses during the course of the fiscal year, so that the final bill or refund is minimized.

Billing schedule and payment due dates are as follows:

F/Y April 1 to March 31	Billing Date	Due Date	Period Covered
1st Quarter	February 5	March 10	April 1 to June 30
2nd Quarter	May 5	June 10	July 1 to September 30
3rd Quarter	August 5	September 10	October 1 to December 31
4th Quarter	November 5	December 10	January 1 to March 31
Final*	December 5	January 10	April 1 to March 31
*Estimated billing date - Final expenses determined in October each year.

Bills are computed as follows:

Estimated Quarterly Bills – Each quarter, the first step is to compute the estimated
annual amount (Assessment Calculation).

The estimated annual amount is the sum of the Supervisory Component and the estimated Regulatory Component.  After adjusting for fees associated to this industry group, the Supervisory Component is computed by multiplying the number of hours for institutions of similar type and size (“buckets” found on the assessment calculations chart) by the hourly rate for the institution type.  The supervisory hours and rates are  established in January, prior to the 1st quarter (February  5) billing, and remain the same throughout the fiscal year. The total Regulatory Component is allocated to each institution in proportion to their financial basis (a measure of volume, e.g. assets, gross revenue, NY loans, etc.) divided by the total financial basis for the industry group.

Once the estimated annual amount is determined, the quarterly bills are computed as follows:

• 1st Quarter = estimated annual amount divided by 4.
• 2nd Quarter = estimated annual amount, less the amount billed to date, divided by 3.
• 3rd Quarter = estimated annual amount, less the amount billed to date, divided by 2.
• 4th Quarter = estimated annual amount, less the amount billed to date.
• Final Assessment (true-up) = actual annual assessment amount less the estimated amount billed to date.

Examination Bills – There are no separate bills for regular examination activity. Only in the case of special examinations, and at the direction of the Superintendent, will separate examination bills be issued.

New Depository Institutions are billed based on their opening assets on the date their charter became effective.

Newly Licensed Institutions are billed supervisory charges only, until the following fiscal year when they report their volume (financial basis).

Financial Basis:  The financial basis is a measure of the size or volume of a business, and is used to pro-rate the total industry Regulatory Component to each institution within that industry group.  The basis used to calculate the actual final assessment is the amount from the previous calendar year, e.g. December 31, 2013, for the 2014-15 state fiscal year.  The basis for the 1st quarter, billed February 5, will be as of September 30 for Depositories and Money Transmitters, and the prior year for all other licensees, until the December 31 figures are reported.

Additional information about the assessment may be found in Part 501 of the Superintendent’s Regulations.

Change of Address

Please email all change of address requests to BankAsmt@dfs.ny.gov . 

Payment Information

Payment Options: In addition to mailing a check, electronic payments may be initiated by the institution via wire transfer, or by the Department of Financial Services via Automated Clearing House (ACH) debit on the due date.

Automated Clearing House Debits: To sign up for ACH debits, please complete and mail our ACH Authorization Form along with a voided check to: Department of Financial Services - Banking Division, One Commerce Plaza, Albany, NY 12257.

Failure to Pay: Payment must be received in the Office of Financial Management in Albany by the due date.  Failure to pay will result in additional penalties, interest and regulatory action described on the bill and accompanying letter.

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ASSESSMENT CALCULATION

The initial step in the assessment calculation is to identify the percentage of total charges applicable to each industry, and apply those percentages to the total Banking Division budget to arrive at the respective assessment charges for each industry.  Percentages are developed based on the industry’s respective staffing costs.  Once industry assessment costs are known, an adjustment is taken for fees collected, then supervisory and regulatory costs for each industry are determined, as described below.  The sum of the supervisory and regulatory assessment for each industry equals that industry’s respective assessment charges.

Supervisory
The Supervisory Component of the assessment calculation considers the time it takes to supervise institutions of similar size and type, as determined by the Superintendent (supervisory hours by institution size), and the overall average hourly cost of examining staff overseeing that industry (hourly rate).  The calculation is as follows:

Annual Average Supervisory Hours by Institution Size and Type	Supervised institutions are grouped by industry type and size, then broken into “buckets” as determined by the Superintendent.
x Hourly Rate	Determined by averaging the salaries and fringe costs of all examiners supervising each type of entity.  Hourly rates are derived from staff assignments.  These rates are updated annually.
= Supervisory Portion of General Assessment

Regulatory
The Regulatory Component of the assessment calculation is derived by taking the specific industry’s total assessment cost minus the industry Supervisory Component of the General Assessment and any miscellaneous revenues (such as investigation fees) for that industry. The calculation is as follows:

Total Regulatory Costs (for an industry)	Total Regulatory Costs are determined by subtracting the total industry supervisory costs and miscellaneous revenues (such as investigation fees) from that industry’s portion of the General Assessment.
/ Industry  Financial Basis	Each industry has an identified financial basis for assessment purposes. The Industry Financial Basis is the sum of the individual financial basis for each regulated institution in the respective industry. Total Regulatory Costs (derived in the step above) are divided by the Industry Financial Basis.
= Rate	The calculation above results in a regulatory assessment rate for the particular industry.
* Institution Financial Basis	The rate is then multiplied by the Institution Financial Basis to arrive at the regulatory portion of the General Assessment for the institution.
= Total Regulatory Costs for a Particular Institution.  (The Sample Assessment Calculator Chart shows examples of this calculation)

Quarterly assessment calculations are estimated based on year-to-date actual expenses, plus estimated expenses for the balance of the fiscal year.  After the close of the fiscal year, a Final Assessment is computed based on actual expenses accruing to the Banking Division.

Frequently Asked Questions Of the General Assessment

What is the “General Assessment”?
The General Assessment is the mechanism for billing regulated industries to collect the operating funds of the New York State Department of Financial Services.  The statutory authority for the General Assessment is derived from Section 206 of the New York State Financial Services Law.

General Assessment is billed in four quarterly estimated bills.  Once the fiscal year is closed, a Final Assessment is computed.  This generally occurs in December of the following fiscal year. At that time, the Final Assessment for each institution is calculated, estimated billings are subtracted, and the amount due the Department or credit due the institution is identified.  Our goal is to make the estimated bills very close to the final assessment amount so there is a small amount due or refunded.

When do I Pay?
The Department’s fiscal year runs from April 1 to March 31 and the General Assessment is billed in advance each quarter.  Assessment bills are due on the following dates: March 10 of the previous fiscal year; and, June 10, September 10, and December 10 of the current fiscal year. Each quarterly payment is approximately 25% of the estimated annual amount due.  Bills are mailed at least 30 days before the due date.  Interest is added for late payment of an assessment. Additionally, by statute, mortgage brokers are subject to a $100 late fee if payment is not received by the due date.  Bills deemed uncollectible are subject to collection by the Office of the New York State Attorney General, or, for some institutions, the Department will collect against the institution’s surety bond or pledged asset.

How do I Pay?
Payment is accepted by check, money order, bank check, wire, or electronic transfer by an ACH debit from your checking account on the due date. (Advance registration is required for electronic transfer).  Payments can be made either quarterly or pre-paid annually.

Where do I Find the Online Chart Which Shows how my Bill is Computed Every Quarter?
After every quarterly billing a chart is posted here that shows how bills were computed (link to Assessment Calculator Charts at top right of this page).  It shows the number of institutions in each category, the supervisory and regulatory rates, and shows how we computed your supervisory and regulatory amounts.

What Financial Basis is my Assessment Based on?

Depository Institution	Total Assets
Budget Planner	Number of New York customers
Check Cashers	Dollar amount of New York checks cashed
Licensed Lenders	New York assets
Money Transmitters	Dollar value of all New York transactions
Premium Finance Companies	Dollar value of New York loans
Sales Finance	Dollar value of New York loans
Mortgage Bankers, Brokers, and Servicers	Gross New York revenue, including servicing and secondary market revenues

Why is my Current Assessment based on assets or volume from a Previous Year?
The assessment is based on the financial basis as of December 31 of the year prior to the start of the current fiscal year on file with the Department.  This allows for a stable financial basis providing relative size information for all institutions within each industry, and minimizes fluctuation in bills from quarter to quarter. The 1st quarter bill, however, we use the prior year’s basis for institutions that file an annual report.  For Depository Institutions and Money Transmitters, who file quarterly reports, we use the basis as of September 30 of the previous year.  For the 2nd through 4th quarter and final assessment, we update to the basis as of December 31 of the year prior to the start of the fiscal year.  The December 31 data is the final basis for the full fiscal year.

Questions Specific to Mortgage Bankers, Brokers, and Servicers

What is a VOOR or a VOSR?
VOOR stands for Volume of Operations Report, and VOSR stands for Volume of Servicing Report. You will receive a letter with your password from the Department’s Mortgage Banking business unit along with detailed instructions on how to access the VOOR or VOSR reporting system and file the report.

What if my bill shows a Financial Basis that is incorrect, or was reported incorrectly? How do I correct it?
To dispute a bill and request a revision of your financial basis, you must submit a letter within 30 days of receipt of your bill.  The letter must be sent to:

New York State Department of Financial Services
Office of Financial Management
One Commerce Plaza
Albany, NY 12257

Entities requesting a revision to their financial basis should be aware that they may be subject to a special examination based on erroneous information reported.   At the discretion of the Superintendent, examination fees for special examinations may be charged directly to the institution.  In addition, other penalties may apply.

Questions Specific to Mortgage Brokers

I am an Inactive Broker; must I still pay this General Assessment?
Yes, you are still billed for the General Assessment.  As with all industries, your regulatory portion of the General Assessment is based on your business volume as reported on your Volume of Operation Report (VOOR).  If your volume reported on the VOOR is zero, you will not be assessed a Regulatory Component of the General Assessment.  You will, however, be assessed the minimum Supervisory Component of the general assessment.

Why was I charged a $100 late fee? I mailed my payment before the due date.
Section 592(a) of the Banking Law mandates a $100 late fee if payment is not received in the Office of Financial Management in Albany by the due date.  If payment of the assessment plus late fee is not received within 30 days of the due date, then your registration will expire.  Additional interest is charged during the 60-day period after expiration, when you can automatically reinstate your registration by paying the assessment plus the late fee and interest.  Once your registration has expired, payment must be by certified check, bank check, money order, or by wire.  If payment is not received during the 60-day reinstatement period, the expiration becomes permanent and a new application is required to conduct business in New York State.

Can I pay with a Credit Card?
Payment by credit card is not available at this time.  We currently offer the option to sign up for the Automated Clearing House (ACH) debit, where we will deduct the assessment fee from your bank account on the due date.  You still receive an invoice, but you don’t need to mail a check.  The form to sign up is mailed with each quarterly invoice.