Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

Federal Agency:

United States Department of Education

Federal Program:

Special Education Cluster (IDEA) (84.027 and 84.173)

Federal Award Numbers:

H027A170104

Federal Award Years:

2017

State Agency:

State Education Department

Reference:

2019-035

Criteria Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards section 200.213 states nonfederal entities are subject to the nonprocurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, Title 2 U.S. Code of Federal Regulations Part 180, OMB Guidelines on Government Wide Debarment and Suspensions (Nonprocurement) (2 CFR 180). These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Additionally, 2 CFR 200.303(a) states nonfederal entities 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 During the fiscal year ended March 31, 2019, the New York State Education Department (the Department) passed through $949,914,762 of federal funding under one federal awards to local education agencies (LEAs). The Department collects an annual application from LEAs that are applying for Special Education funding. As part of this application process, the LEA submits to the Department a signed application which includes assurances that the LEA is not suspended nor debarred. By signing the application the LEA is attesting to the Department that themselves nor any of their principals are presently suspended or debarred from receiving federal funding. For 4 of 40 LEA applications selected for testwork, the Department was not able to provide the signed application page, which is collected by the Department to ensure compliance with suspension and debarment. Additionally, for 3 of these 4, the Department is unable to verify through federal System for Award Management (SAM) that these LEAs were not suspended or debarred. Cause The condition found is due to the control not operating effectively ensuring all LEAs submit their signed application pages and the pages are maintained by the Department.

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