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 New York State Education Department (the Department) passed through $949,915,000 of federal funding to local education agencies (LEAs). During the fiscal year ended March, 31, 2019 the Department required LEAs to submit a LEA Maintenance of Effort (MOE) calculator as part of the application process for IDEA funding. This calculator was used in conjunction with the IDEA application to determine LEA eligibility for IDEA funds for the upcoming school year. The Department required the LEA MOE calculator be submitted along with the other required components of the LEA’s IDEA application. While the Department required the LEA’s to submit their LEA MOE calculator in conjunction with their IDEA application, the Department did not have policies and procedures in place to review, and document the review, of the completeness and accuracy of the data submitted within the LEA MOE calculator. As such, the Department has not validated that the information submitted by the LEA was accurate and we are unable to ascertain that the information reported to the Department as MOE was complete and accurate. Cause The condition found is due to the Departments lack on controls in place to review the data, which was submitted in the LEA MOE calculator. If the LEA submitted their calculator to the Department, as part of the application process, the LEA was awarded their IDEA funds. The Department did not take steps to ensure the data submitted in the MOE calculator was complete, accurate, and agreed to the LEA records and, therefore, did not take steps, beyond obtaining the calculator, to ensure the LEA was in compliance with MOE. Possible Asserted Effects Failure to validate the information provided by LEAs used in meeting LEA maintenance of effort requirements may result in the Department not being compliance with Federal statues, regulations, and the terms and conditions of federal awards. Questioned Costs None Statistical Sampling The samples were not intended to be, and were not, a statistically valid sample. Recommendation We recommend the Department enhance its policies and procedures, including internal controls and policies and procedures, over the LEA MOE calculator, to ensure information submitted by LEAs through the LEA MOE calculators are reviewed for completeness and accuracy. Views of Responsible Officials Recommendation accepted. Corrective action in progress. Reference the corrective action plan for further details.

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