Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

(xii) Identification of whether the award is R&D; and

(xiii) Indirect cost rate for the Federal award (including if the de minimis rate is charged per 2 CFR 200.414 Indirect (F&A) costs).

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 Department of Health’s (the Department) policies and procedures and internal controls are not designed effectively to ensure all requirements within the award notification (or changes to those requirements) are communicated to subrecipients at the time of the subaward or subsequent subaward modification. During the state fiscal year ended March 31, 2019, for 15 of 15 subawards selected for testwork in the Special Supplemental Nutrition for Women, Infants and Children program, all requirements were communicated to the subrecipient at the time of the original subaward contract with the subrecipient. However, as all subrecipient have multiyear subawards, subrecipients of the selected subawards were not notified of new federal award identification information as prescribed by 2 CFR 200.331 including any changes subsequent to the subaward modification. Subaward modifications include changes to the amount of federal funds obligated by this action by the pass-through entity to the subrecipient. Cause The cause of the condition was due to the timing of the Department’s implementation of its corrective action plan in response to a prior year finding. As part of the prior year audit finding, it was identified that Department’s policies and procedures only requiring communication of award identification information at the inception of a multiyear contract and did not require subsequent updates be provided to its subrecipients under ongoing multiyear subawards while additional award information prescribed in 2 CFR 200.331 is provided to the Department by the U.S. Department of Agriculture. As part of its corrective action plan, the Department’s policies and procedures were revised to implement procedures requiring subsequent updates to award information provided by the U.S. Department of Agriculture be sent to subrecipients following the State’s fiscal year as part of their closeout process. The Department sent updated award notifications with all required information in July 2019. Possible Asserted Effect Failure to provide award identification information or any changes in award identification information as prescribed in 2 CFR 200.331 may result in the Department not being in compliance with its responsibility as a pass-through entity in accordance with federal statutes, regulations, and the terms and conditions of its federal awards. Questioned Costs None

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