Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

(4) Effective control over, and accountability for, all funds, property, and other assets. The non-Federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. See section 75.303.

(5) Comparison of expenditures with budget amounts for each Federal award.

(6) Written procedures to implement the requirements of section 75.305.

(7) Written procedures for determining the allowability of costs in accordance with Subpart E – Cost Principles of this part and the terms and conditions of the Federal award.

Additionally, 45 CFR 75.303(a) states the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition For the quarter ended March 31, 2018, the Office of Children and Family Services (the Office) incorrectly reported unliquidated obligations of $18,749,657 as an unobligated balance on the ACF-696, Child Care and Development Fund Financial Report (OMB No. 0970-0163) . Cause The condition found was due to insufficient internal controls over the review and approval of the ACF-696 at a precision level necessary to detect and correct a misstatement on the report prior to submission of the report. Possible Asserted Effect Failure to adequately ensure the completeness and accuracy of the amounts reported on the ACF-696 may result in inaccurate reporting to the U.S. Department of Health and Human Services and may inhibit its ability to effectively monitor and evaluate the State’s performance relative to the Child Care and Development Fund Cluster. Statistical Sampling The sample was not intended to be and was not a statistically valid sample. Questioned Costs Cannot be determined. Recommendation We recommend that the Office enhance their internal controls to ensure appropriate management reviews are performed by staff over the completeness and accuracy of amounts reported by the Office. Views of Responsible Officials Recommendation accepted. Corrective action as already been implemented, and the issue has been resolved.

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