Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

not able to demonstrate it had monitored the local district offices’ use of funds transferred into the SSBG program from the TANF program to ensure that the funds were used to provide services to individuals that met the applicable federal poverty standards. In addition, the Office could not provide written policies and procedures related to its subrecipient monitoring process. As a result, the Office was not able to demonstrate that it has any means to determine whether or not it has complied with the statutes, regulations, and the terms and conditions of its Federal awards the SSBG program. In addition, the Office relies on the local districts annual single audit report for its fiscal monitoring. For 14 of 25 subrecipient single audit reports selected for testwork, SSBG was not determined to be a major program and the Office did not have any other verifiable evidence that it had monitored these subrecipients for compliance through its own internal subrecipient monitoring activities. Cause The condition found was primarily due to the Office not having subrecipient monitoring controls in place over the SSBG program to help ensure the State’s compliance with 45 CFR 75.352(d) and 45 CFR 75.352(e). Additionally, the Office’s policies and procedures over subrecipient monitoring activities were limited to obtaining and reviewing subrecipients’ single audit reports without consideration of the results of the single audit reports. Possible Asserted Effect The lack of written policies and procedures and failure to perform sufficient monitoring activities over subawards to subrecipients could result in noncompliance 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. Questioned Costs Cannot be determined. Recommendation We recommend that the Office implement its 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 help 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 appropriate 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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