Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Federal Agency:

U.S. Department of Education

Federal Program:

Rehabilitation Services – Vocational Rehabilitation Grants to States (84.126)

Federal Award Numbers:

H126A160047, H126A170047, and H126A180047

Federal Award Years:

2016, 2017, and 2018

State Agency:

State Education Department

Reference:

2018-017

Criteria Title 29 U.S. Code Part 723 (29 USC 723), Vocational Rehabilitation Services , section 723(a) states that services provided under this subchapter are any services described in an individualized plan for employment necessary to assist an individual with a disability in preparing for, securing, retaining, or regaining an employment outcome that is consistent with the strengths, resources, priorities, concerns, abilities, capabilities, interests, and informed choice of the individual including criteria identified within 29 USC 723(a)(1) through 29 USC 723(a)(20). Further, Title 29 U.S. Code Part 722 (29 USC 722), Eligibility and Individualized Plan for Employment , section 722(b)(3)(F) states that the individualized plan for employment shall be developed as soon as possible, but not later than a deadline of 90 days after the date of the determination of eligibility described in section 722(b)(1), unless the designated State unit and the eligible individual agree to an extension of that deadline to a specific date by which the individualized plan for employment shall be completed. Lastly, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements , section 200.303 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 We noted that part of the mandatory requirements for the individualized plan for employment (IPE) process is that an IPE be agreed to, and signed by, such eligible individual or, as appropriate, the individual’s representative and approved and signed by a qualified vocational rehabilitation (VR) counselor employed by the designated State unit. The State Education Department (the Department) did not have effective internal controls in place to ensure each participant’s IPE was approved by both the participant and VR counselor prior to any activity on the IPE. During our testwork over allowable costs: • For 2 of 65 participants selected for testwork, we noted the IPEs that initiated during the fiscal year ended March 31, 2018 were missing the signature of both the participant and the VR counselor. • For 2 other participants of the 65 participants selected for testwork, we noted the IPEs were missing the signature of the participant.

59

(Continued)