Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

March 31, 2019

For 0 out of 81 expenditures under the Special Supplemental Nutrition Program for Women, Infants, and Children program selected for testwork, the State did not draw federal funds in accordance with the prescribed funding technique within the New York State Treasury-State Agreement. For 0 out of 25 expenditures under the Child and Adult Care Food Program to the States program selected for testwork, the State was reimbursed from the Department of Health and Human Services more than three days in advance of the State’s disbursement of funds to the subrecipients. For 0 out of 78 expenditures under the Child Support Enforcement program selected for testwork, the State did not draw federal funds in accordance with the prescribed funding technique within the New York State Treasury-State Agreement. For 0 out of 12 monthly insurance provider payments under the Child Health Insurance Program selected for testwork, the State did not draw federal funds in accordance with the prescribed funding technique within the New York State Treasury-State Agreement. For 0 out of 65 expenditures under the Block Grant for Prevention and Treatment of Substance Abuse program selected for testwork, the State was reimbursed from the Department of Health and Human Services more than three days in advance of the State’s disbursement of funds to the subrecipients. For 0 out of 91 expenditures under the Maternal and Child Health Services Block Grant to the States program selected for testwork, the State was reimbursed from the Department of Health and Human Services more than three days in advance of the State’s disbursement of funds to the subrecipients. Cause The condition is due to the timing of the State’s implementation of their corrective action plan to a prior year audit findings. Prior to August 1, 2018, coding vouchers into the Statewide Financial System (SFS) as federally reimbursable expenditures several days in advance of the anticipated payment to the subrecipient. Under the State’s Guide to Fiscal Operations Section IX.5, Federal Billing & Invoicing, identifies the State’s policy that the Department must follow in order to ensure compliance with the State’s Treasury-State Agreement or, where applicable, minimize time elapse between the drawdown of the Federal funds and the disbursement in accordance with 31 CFR 205 Subpart B. Specifically, the State’s internal guidance states the following “Since billing is initiated once an expenditure occurs, it is critical that agencies do not enter AP voucher payment dates more than two days in advance of the current date. Any date beyond this two day limit may result in federal funds being drawn down before the voucher payments are actually incurred.” In all instances identified, the Department entered accounts payable voucher payment dates more than two days in advance of the current date resulting in the State drawing federal funds prior to paying the related expenditure. As part of its corrective action plan, the State made modifications to its Statewide Financial System (SFS), which ensures agency payments are made prior to drawing federal funds. Repeat Finding A similar finding was included in the 2018 Single Audit Report as finding numbers 2018-027 on pages 80 – 82 for the Block Grant for Prevention and Treatment of Substance Abuse (CFDA No. 93.959), 2018-043 on pages 96–97 related to the Special Supplemental Nutrition Program for Women, Infants, and Children (CFDA No. 10.557), Child and Adult Care Food Program (CFDA No. 10.558), Children’s Health Insurance Program (CFDA No. 93.767), and Maternal and Child Health Services Block Grant to the States (CFDA No. 93.994).

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