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) Adoption Assistance (93.659)

Federal Award Numbers:

1601NYFOST, 1701NYFOST, 1801NYFOST, and 1901NYFOST G1501NYADPT, 1601NYADPT, 1701NYADPT, 1801NYADPT, and 1901NYADPT,

Federal Award Years:

2015, 2016, 2017, 2018, and 2019

State Agency:

Office of Children and Family Services

Reference:

2019-014

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 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 the source of matching funds provided by the subrecipient is from an allowable source of funds. Additionally, 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 The Office of Children and Family Services (the Office) enters into funding arrangements with local districts to provide programmatic services for the Foster Care and Adoption Assistance federal programs. The local districts pay 100% of costs incurred under the grant for each program and periodically submit requests for reimbursement to the State of New York for services rendered. The Office reimburses the local districts for only the federal share of the costs incurred and the related match (or the State’s share of costs incurred) is provided for by the local district. During the fiscal year ended March 31, 2019, the Office relied upon the local districts’ match rate of 50% to ensure the State met its matching requirements for the Foster Care and Adoption Assistance federal programs (CFDA No. 93.658 and 93.659). During the fiscal year ended March 31, 2019 the Office implemented a county claim audit process. As part of the Office’s county claim audits, the Office selects a sample of expenditures to ensure that the source of matching funds provided by the local district is an allowable source of funds. However, as part of the sampling plan, the Office excluded maintenance payments that accounts for a significant source of matching payments during the fiscal year. No procedures were identified to have been performed by the Office over the maintenance payments to ensure that the source of matching funds provided by the local district is an allowable source of funds.

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