Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

New York State Governmental Accountability, Audit and Internal Control Act of 1987 highlighted the need for agency management to promote good internal controls and accountability in government. Article 45, Internal Control Responsibilities of State Agencies, Section 951 Executive Internal control responsibilities states the head of each state agency shall (a) establish and maintain for the agency guidelines for a system of internal control that are in accordance with this article and internal control standards; (b) establish and maintain for the agency a system of internal control and a program of internal control review. The program of internal control review shall be designed to identify internal control weaknesses, identify actions that are needed to correct these weaknesses, monitor the implementation of necessary corrective actions and periodically assess the adequacy of the agency’s ongoing internal control; (c) make available to each officer and employee of the agency a clear and concise statement of the generally applicable management policies and standards with which the officer or employee of such agency shall be expected to comply. Such statement shall emphasize the importance of effective internal control to the agency and the responsibility of each officer and employee for effective internal control; (d) designate an internal control officer, who shall report to the head of the agency, to implement and review the internal control responsibilities established pursuant to this section; (e) implement education and training efforts to ensure that officers and employees within such agency have achieved adequate awareness and understanding of internal control standards and, as appropriate, evaluation techniques; and (f) periodically evaluate the need for an internal audit function. Condition During the fiscal year ended March 31, 2019, the Department of Health (the Department) passed through approximately $17,950,000 of federal funding to subrecipients through the Maternal and Child Health Services Block Grant to the States federal program (CFDA No. 93.994). For the period April 1, 2018 through March 8, 2019, while the Department performed subrecipient monitoring procedures for 40 of 40 subrecipients selected for review, formal documentation of the risk assessments to support the appropriateness of the subrecipient monitoring activities performed during fiscal year-end March 31, 2019 were not maintained. Subsequent to March 8, 2019, for the original sample of 40 subrecipient selected, the Department performed and documented their risk assessment over the subrecipients, however, as these risk assessments are for the fiscal year ending March 31, 2020 the resulting monitoring procedures were not yet performed Cause The cause of the condition was due to the timing of the Department’s implementation of its corrective action plan in response to the prior year finding. The Department implemented on March 8, 2019 policies and procedures to ensure that the risk assessments performed were documented and utilized to prioritize subrecipients who will be monitored and the level of needed monitoring activities. Possible Asserted Effect Failure to complete a risk assessment in accordance with 45 CFR 75.352(e) monitoring activities performed in accordance with 45 CFR.352(d) could result in the Department incurring costs that are not allowable with federal statutes, regulations, and the terms and conditions of the subaward. Questioned Costs Cannot be determined

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