Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Condition During the fiscal year ended March 31, 2019, the Office of Children and Families (the Office) passed through $112,915,076 under the Adoption Assistance federal program (CFDA. No 93.659), to local districts (or subrecipients) to provide programmatic services under the Adoption Assistance program. As part of the funding arrangement, the local districts are responsible for establishing rates to be paid on behalf of eligible participants. For the state fiscal year ended March 31, 2019, the Office conducted subrecipient monitoring reviews over 10 local districts that were selected based on the Office’s risk assessment. While certain aspects of allowability and eligibility were reviewed as part of these reviews, the Office monitoring review did not review the amount of the payments made in any case reviewed to ensure the rate determined was supported by documentation related to the needs of the child being adopted, or as readjusted periodically, when needed, in accordance with 42 USC 673(a)(3). Cause The condition found was primarily due to the Office monitoring reviews not including a review of adoption subsidy payments to ensure they were supported in accordance with the guidance for 42 USC 673(a)(3). The Office’s monitoring process consisted of a nonrecurring expenditures review to ensure Title IV-E limits of $2,000 per child are not exceeded and that amounts are being properly claimed by local districts. Additionally, on an annual basis, the Office works in conjunction with the NYS Department of Health to perform a vital records match to identify any deceased individuals who are still claiming Adoption Subsidy funds. Possible Asserted Effect Failure to ensure that adoption subsidy payments made to eligible children are not supported by documentation to justify the rates in accordance with 42 USC 673(a)(3) may result in unallowable federal assistance for an eligible child under the federal program in accordance with federal statues, regulations, and terms and conditions of federal awards. Questioned Costs Cannot be determined Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding A similar finding was included in the 2018 Single Audit Report as finding number 2018-007 on pages 34–37. Recommendation We recommend the Office enhance its subrecipient monitoring policies, procedures, and internal control to help ensure the Office is reviewing documentation supporting the adoption subsidy payment rate of eligible children as part of its monitoring subrecipients in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e). Views of Responsible Officials Recommendation accepted. Corrective action is in progress. See corrective action plan for more details.

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