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 $913,964,239 under the Child Care and Development Fund Cluster (CCDF) program (CFDA Nos. 93.575 and 93.596) to local districts to provide programmatic services. As part of the funding arrangements, the local districts are responsible for determining participant eligibility for services, establishing rates to be paid on behalf of eligible participants, and ensuring that eligible participants are placed with a licensed child care provider. During the fiscal year ended March 31, 2019, the Office, through the Audit Quality Control (AQC) Unit, performed its annual risk assessment process over its subrecipients and identified four phases of monitoring activities to perform. Based on the timing of the risk assessment procedures, only one phase was started during the period under audit for the 18 local districts identified as higher risk as part of the Office’s annual risk assessment for review. As such, the Office had not completed its subrecipient monitoring activities over those local districts determined to be higher risk to ensure that the local districts had complied with statutes, regulations and the terms and conditions of the Federal awards for the CCDF program. Specifically, the Office was unable to ensure that costs incurred by the local district were for allowable services and paid at the correct rate, the local district’s determination of participant eligibility was supported by documentation, and participants were placed with approved licensed child care providers in accordance with Federal regulations. Cause The condition found was primarily due to the timing of the Office’s process of implementing its corrective action plan from a prior period audit. In response to a prior period audit finding, the Office developed its Child Care Subsidy Enhanced Monitoring Process that provided the policies and procedures the Office would follow to enhance its monitoring activities over the local districts. Due to the timing of the implementation of this corrective action, the Office was unable to complete these monitoring activities during the period under audit. Possible Asserted Effect Failure to perform subrecipient monitoring activities in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e) may result in the Office providing federal assistance through its subrecipient that for activities not compliant with federal statutes, regulations, and the terms and conditions of the subaward. Questioned Costs None 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 2018-009 on pages 40–42.

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