Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Condition The Office of Temporary and Disability Assistance (the Office) enters into funding arrangements with local districts to provide programmatic services for the Child Support Enforcement federal program. The local districts pay 100% of costs incurred under the grant for each program and periodically submit requests for reimbursement to the State of New York for services rendered. The Office reimburses the local districts for only the federal share of the costs incurred and the related match (or the State’s share of costs incurred) is provided for by the local district. During the fiscal year ended March 31, 2018, the Office relied upon the local districts’ match rate of 34% to ensure the State met its matching requirements for the Child Support Enforcement federal program (CFDA number 93.563). During our testwork over the Office’s matching and subrecipient monitoring process, we noted that the Office does not have a process or internal controls in place to monitor the local districts’ source of funds utilized to meet matching requirements of the federal program awards to ensure that the source of funds utilized is allowable under federal regulations. Cause The condition is due to a lack of policies and procedures to ensure that funds utilized by the local districts for cost sharing or matching purposes are in accordance with 45 CFR 75.306(b). Additionally, the Office’s subrecipient monitoring procedures performed over the local districts do not include a review of the local funds utilized for cost sharing or matching purposes. Possible Asserted Effect Failure to review the sources of the funds utilized for the local district match could result in the use of inappropriate funds being utilized for cost sharing or matching of expenditures and noncompliance with the program laws, regulations, and terms and conditions of Federal awards. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding A similar finding was included in the 2017 Single Audit Report as finding number 2017-009 on pages 29– 30. Questioned Costs Cannot be determined. Recommendation We recommend the Office implement policies and procedures to ensure its monitoring controls and procedures over the local districts includes reviewing the source of the local district’s cost sharing or match to determine that the source is appropriate and in accordance with 45 CFR 75.306(b). Views of Responsible Officials Recommendation accepted. The State is in the process of developing enterprise wide policies and procedures to ensure appropriate monitoring controls are in place over subrecipients.

20

(Continued)