Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

CFR 75.352(e). While there were programmatic site visits performed, the programmatic site visits did not include monitoring of all compliance areas required by 45 CFR 75.352(d) and 45 CFR 75.352(e). Additionally, the Office’s policies and procedures over subrecipient monitoring financial activities were limited to obtaining and reviewing subrecipients’ single audit reports without consideration for the results of the single audit reports. In addition, the condition found related to monitoring of Foster Care maintenance payments was due to lack of a process established by the Office to periodically monitor the continued appropriateness of the maintenance payment rates utilized by local districts for foster boarding homes provided under the Foster Care federal program. Instead, the Office relies on information technology controls to ensure that the rate paid per eligible child does not exceed the maximum rate established by the Office annually versus ensuring the rate utilized was appropriate. Possible Asserted Effect The lack of written policies and procedures and failure to perform sufficient monitoring activities over subawards to subrecipients could result in the use of federal funding not being in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. 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 2017-011 on pages 33– 35, finding number 2017-009 on pages 29–30, and finding 2017-012 on pages 36–37. Questioned Costs Cannot be determined. Recommendation We recommend the Office implement subrecipient monitoring policies, procedures, and internal controls to help ensure it is monitoring subrecipients in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e). The Office should also develop written policies and procedures to ensure that it is able to identify the Federal statutes, regulations, and terms and conditions it must comply with and implement measures whereby it can evaluate and monitor its compliance and to take prompt action when instances of noncompliance are identified and to take reasonable measures. Views of Responsible Officials Recommendation accepted. New policies, procedures and internal controls are being developed, and the implementation of the new procedures are in progress. See corrective action plan for more details.

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