Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Federal Agency:

United States Department of Health and Human Services

Federal Program:

Foster Care – Title IV-E (93.658)

Federal Award Numbers:

1601NYFOST, 1701NYFOST, 1801NYFOST, and 1901NYFOST

Federal Award Years:

2016, 2017, 2018, and 2019

State Agency:

Office of Children and Family Services

Reference:

2019-011

Criteria Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards , section 75.303(c) requires the nonfederal entity to evaluate and monitor the nonfederal entity’s compliance with statutes, regulations and the terms of the Federal awards. The nonfederal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the federal award (45 CFR 75.400(b)). Each state must expend and account for the federal award in accordance with state laws and procedures for expending the state’s own funds. Such monitoring activities should ensure that federal funds expended funds for foster care maintenance payments on behalf of eligible children are in accordance with the Title IV-E agency’s foster care maintenance payment schedule in accordance with Title 45 U.S. Code of Federal Regulations Part 1356 (45 CFR 1356), Requirements Applicable of Title IV-E , Section 1356.21. Further, Title IV-E agencies establish payment rates for maintenance payments (e.g. payments to foster parents, child care institutions or directly to youth). Payment rates may also be established for Title IV-E administrative expenditures (e.g., payments to child placement agencies or other contractors, which may be either subrecipients or vendors) and for other services. Payment rates must provide for proper allocation of costs between Foster Care maintenance payments, administrative expenditures, and other services in conformance with the cost principles. The Title IV-E agency’s plan approved by ACF must provide for periodic review of payment rates for Foster Care maintenance payments at reasonable, specific, time-limited periods established by the Title IV-E agency to assure the rate’s continuing appropriateness for the administration of the Title IV-E program (42 USC 671(a)(11); 45 CFR Section 1356.21(m)(1); 45 CFR Section 1356.60(a)(1) and (c)). Lastly, 45 CFR 75.303(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 During the fiscal year ended March 31, 2019, the Office of Children and Families (the Office) passed through $358,415,450 under the Title IV-E Foster Care federal program (CFDA No. 93.658) to local districts (or subrecipients) to provide programmatic services under the Foster Care program. As part of the funding arrangement, the local districts are responsible for determining participant eligibility for services and establishing financial assistance rates to be paid on behalf of eligible participants. Based upon the level and type of services that the local district determines the participant is eligible for, the local district will determine the

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