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:

School Improvement Grants (84.377)

Federal Award Numbers:

S377A140033, S377A150033, and S377A160033

Federal Award Years:

2014, 2015, and 2016

State Agency:

State Education Department

Reference:

2018-020

Criteria Title 20 U.S. Code section 6314, Schoolwide programs, states an LEA that uses SIG funds to serve one or more Title I Tier I, Tier II, Tier III, priority, or focus schools that operate a schoolwide program, may use SIG funds only to supplement the amount of non-Federal funds that the school would otherwise have received if it were not operating the schoolwide program, including those funds necessary to provide services required by law for students with disabilities and limited English proficient students. Additionally, Title 2 U.S. Code of Federal Regulations, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (2 CFR 200) section 200.303(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 During the fiscal year ended March 31, 2018, the New York State Education Department (the Department) passed through $57,582,895 of federal funding to School Improvement Grants 1003(g) eligible school buildings (buildings). The Department did not have internal controls in place to ensure that subrecipient monitoring policies and procedures were performed over schools. Such procedures should have been performed to ensure SIG funds were only used to supplement and not supplant the amount of non-Federal funds. For 20 of 20 “receivership” buildings selected for testwork and 10 of 10 “nonreceivership” buildings selected for testwork, the Department’s monitoring activities did not include monitoring activities to ensure the building did not supplant the amount of non-Federal funds received with the SIG funds provided in accordance with federal statues, regulations, and the terms and conditions of the subaward. Cause The condition found is due to the design of controls in place over monitoring controls not including activities related to ensuring SIG funds received by the building were only used to supplement and not supplant the amount of non-Federal funds the building would otherwise have received if it were not operating a schoolwide program.

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