Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

selected at least once during the life of the contract. Additionally, new subrecipients to the Department receive a high score on the risk assessment and are prioritized for review during the first 24 months of their contract. Once a subrecipient is selected for the control, the Department requests proof of payment for all claimed expenditures for a selected period. Proof of payment consists of copies of invoices/bill/purchase orders and the methodology used to allocate the expense to the program. The Department conducted 32 subrecipient voucher reviews during the fiscal year of which 25 were prior to January 1, 2019 and 7 were subsequent. For 5 of 10 Department’s subrecipient voucher reviews selected for testwork, the Department was not able to provide evidence that the “Voucher Trace Recoupment of Funds” letter or “Voucher Trace No Findings Letter” was provided to the subrecipient per the Department’s policy. These letters would evidence the Department’s communication of results to the subrecipient and include the Department’s action items for the subrecipient to complete as deemed necessary. 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 its corrective action plan, the Department’s policies and procedures were revised to implement procedures requiring supporting documentation to be maintained as evidence of the completed review. The corrective action was implemented on January 1, 2019. For five of five voucher reviews selected for testwork subsequent to the Departments corrective action, all required documentation was completed and maintained. Possible Asserted Effect Failure to maintain evidence of monitoring activities performed over subrecipient payments may result in the use of federal funding provided not being in compliance 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 for the Department was included in the 2018 Single Audit Report as finding number 2018-041 at pages 114–115. Recommendation We recommend the Department continue to follow its revised policies and procedures implemented on January 1, 2019 to ensure documentation is maintained to support the results of the performance of its internal controls. Views of Responsible Officials Recommendation accepted. Corrective action completed. Reference the corrective action plan for further details.

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