Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Notes to Schedule of Expenditures of Federal Awards

March 31, 2019

(2) Relationship to Federal Financial Reports

The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the Schedule, which is prepared on the basis explained in note 1(c).

(3) Indirect Cost Rate The State does not utilize the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

(4) Unemployment Insurance

State unemployment tax revenues and other payments must be deposited into the Unemployment Trust Fund in the U.S. Treasury. Use of these funds is restricted to pay benefits under the federally approved State unemployment law. State unemployment insurance funds as well as federal funds are used to pay benefits under the Unemployment Insurance program (CFDA No. 17.225). The amount reported in the Schedule for the Unemployment Insurance program included $2.0 billion in State-funded expenditures deposited into the Unemployment Trust Fund in the U.S. Treasury.

(5) Loan and Loan Guarantee Programs (a) Federal Student Loan and Loan Guarantee Programs

The federal student loan programs listed below are administered by the State through the State University of New York (SUNY), and balances and transactions related to these programs are included in the State’s CAFR. Loans made during the year are included as federal expenditures presented in the Schedule. Loans outstanding at March 31, 2019 amounted to $120.6 million, net of allowance for doubtful accounts. The following table displays activity for federal student loans outstanding at March 31, 2019 (in thousands):

CFDA

Beginning

Ending balance

number

Program title

balance

Additions

Deletions

84.038 Federal Perkins Loan Program – Federal Capital Contributions 93.342 Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students

$ 125,530

97

23,845

101,782

13,967

1,202 1,351

2,454 1,034

12,715

93.364 Nursing Student Loans

5,764

6,081

SUNY participates in the Federal Direct Student Loans program (CFDA No. 84.268), which provides federal loans directly to students rather than through private lending institutions. SUNY is responsible only for the origination of the loan (i.e., determining student eligibility and disbursing loan proceeds to the borrower). The Direct Loan Servicer is then responsible for overall servicing and collection of the loan. During the year ended March 31, 2019, SUNY processed approximately $1.1 billion of new loans under the Federal Direct Student Loans program, which are included in the Schedule. The program is administered by the Federal government; therefore, new loans made during the year are reported in the Schedule, whereas the outstanding loan balances are not.

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