Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand. (3) Records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. (4) Effective control over, and accountability for, all funds, property, and other assets. The nonfederal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. See section 200.303, Internal controls .

(5) Comparison of expenditures with budget amounts for each Federal award.

(6) Written procedures to implement the requirements of section 200.305, Payment .

(7) Written procedures for determining the allowability of costs in accordance with Subpart E – Cost Principles of this part and the terms and conditions of the Federal award.

Additionally, 2 CFR 200.303(a) states the nonfederal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition The quarterly SF-425 Food and Nutrition Service (FNS) 778/778a financial reports submitted by the Office of Temporary and Disability Assistance (the Office) were not accurately completed. The Office utilized an internally generated reconciliation to determine the amount of the awards authorized as of the end of the reporting period. The Office did not have adequate management review controls in place at a level of precision necessary to ensure proper cutoff of amounts of Federal funds authorized listed within the reconciliation worksheet underlying the SF-425 and FNS 778/778a reports. In particular, the amounts the Office determined to be Federal funds authorized through its reconciliation worksheet would have resulted in an overstatement of approximately $431 thousand ($159.76 million determined compared to $159.33 million actual federal funds authorized) as of December 31, 2018 and $153 million ($390 million determined compared to $237 million actual federal funds authorized) as of March 31, 2019. Specifically, management’s reconciliation

27

(Continued)