Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Condition For the fiscal year ended March 31, 2019, the Department of Health (the Department) did not have internal controls in place to ensure that all required single audits of the program’s subrecipients were received, reviewed, followed-up, or appropriate action was taken and is necessary issued a management decision pertaining to the audit finding in accordance with 45 CFR 75 or 2 CFR 200, as applicable. The Department maintains an internal clearinghouse tracker (the tracker) to track the subrecipients single audit status. The tracker tracks subrecipients that are exempt from single audit requirements as well as the status and follow-up required for the subrecipients with single audits. During the fiscal year ended March 31, 2019, for 4 of 40 subrecipients selected for testwork receiving Maternal and Child Health Services Block Grant to the States fund from the Department, the Department did not identify the subrecipient within the tracker. Additionally, for 2 of the 4 subrecipients not included in the tracker, a single audit was required by the subrecipient, however, the Department did not obtain and review the single audit reports as required in accordance with 45 CFR 75.352(d). Additionally, for an additional 4 out of 40 subrecipients whose single audit report the Department obtained and reviewed, the Department did not complete a management determination letter within six months in accordance with 45 CFR 75.521(d), providing evidence of management’s decisions of any audit findings pertaining to the Federal award. For 11 of 40 subrecipients selected for testwork receiving Child and Adult Care Food Program funds from the Department, the Department did not identify the subrecipient within the tracker. Additionally, for 3 of the 11 not included in the tracker, a single audit was required by the subrecipient, however, the Department did not obtain and review the single audit reports as required in accordance with 2 CFR 200.352(d). Cause The condition is due to the Department’s internal clearinghouse tracker not operating as desired to ensure the completeness of all subrecipients receiving federal funding from the Department were identified and tracked to ensure that single audit reports were timely provided and reviewed by the Department. As noted in its prior year finding corrective action plan, the Department is in the process of implementing a replacement computerized system that will be utilized to ensure future compliance with these federal statutes. Further, compensating monitoring controls were not designed at a level of precision to ensure that all subrecipient single audit reports were requested, obtained, and timely reviewed. Possible Asserted Effect Failure to properly obtain and review subrecipient single audit reports may result in the use of federal funding not being in compliance with Federal statues, regulations, and the terms and conditions of subawards. Questioned Costs Cannot be determined Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample.

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