Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

xii. Identification of whether the award is R&D; and

xiii. Indirect cost rate for the Federal award (including if the de minimis rate is charged per 45 CFR 75.414 Indirect (F&A) costs). Condition The Office of Alcoholism and Substance Abuse Services (OASAS) policies and procedures and internal controls are not designed effectively to ensure all requirements within the award notification are communicated to subrecipients at the time of the subaward or when any of these data elements change. OASAS notifies subrecipients of federal funding through State Aid Funding Authorizations (SAFA), which outlines the budget for the fiscal year as well as the rules and requirements for the grant. For 29 of the 29 subawards selected for testing, the SAFA did not include the subrecipient’s unique entity identifier, Federal Award Identification Number (FAIN), Federal Award Date, Name of Federal awarding agency, and identification of whether the award is considered R&D. Additionally, at the time of disbursement of funds under the subawards, OASAS did not providing the CFDA number. Cause The condition is due to timing of the implementation of a corrective action plan by OASAS in response to a prior period finding. As part of its prior period corrective action plan, OASAS noted it would review and updates its written policies and procedures and internal controls regarding notification of subrecipients to ensure the required information and what was currently communicational would be provided. Additionally, OASAS noted they would develop a process that would allow all required information to be provided to each subrecipient including any changes. In State fiscal year 2020, OASAS completed its corrective action plan and provided all requisite award information for its federal fiscal year (FFY) 2019 subawards. Possible Asserted Effect Failure to adequately communicate the award identification information or changes therein could result in the subrecipient not being able to adequately track and report subawards received resulting in errors being reported on the subrecipient’s schedule of expenditures of federal awards and subrecipient’s violations of the terms and conditions of the federal awards provided. 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 OASAS was included in the prior year Single Audit Report as finding number 2018-026 at page 78.

109

(Continued)