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:

English Language Acquisition State Grants (84.365)

Federal Award Numbers:

S365A150032, S365B150032, S365A160032

Federal Award Years:

2015 and 2016

State Agency:

State Education Department

Reference:

2018-021

Criteria Title 20 U.S. Code Part 7901 (20 USC 7901) Maintenance of effort , section 7901(a) states in general, a local educational agency may receive funds under a covered program for any fiscal year only if the State educational agency finds that either the combined fiscal effort per student or the aggregate expenditures of the agency and the State with respect to the provision of free public education by the agency for the preceding fiscal year was not less than 90% of the combined fiscal effort or aggregate expenditures for the second preceding fiscal year, subject to the requirements of subsection (b). Section 7901 (b)(1) states in general, the State educational agency shall reduce the amount of the allocation of funds under a covered program in any fiscal year in the exact proportion by which a local educational agency fails to meet the requirement of subsection (a) of this section by falling below 90% of both the combined fiscal effort per student and aggregate expenditures (using the measure most favorable to the local agency), if such local educational agency has also failed to meet such requirement (as determined using the measure most favorable to the local agency) for 1 or more of the 5 immediately preceding fiscal years. Additionally, 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 The State Education Department (the Department) Office of State Aid performed the annual maintenance of effort (MOE) calculation to ensure each local educational agency’s (LEAs) combined fiscal effort per student or aggregate expenditures of the LEA and the State of New York with respect to the provision of free public education by the LEA for the preceding year was not less than 90% of the combined fiscal efforts or aggregate expenditures for the second preceding fiscal year. As part of the calculation for school fiscal year 16–17 (July 1 2016 to June 30, 2017), the Department identified one out of 689 LEAs had failed to maintain the required effort by falling below the 90% threshold. Additionally the State educational agency did not reduce the amount of the allocation of funds in the exact proportion by which the LEA failed to maintain effort by falling below 90% in a timely fashion. As a result, the Department did not have effective internal controls to ensure the Maintenance of Effort calculation was timely communicated to the P-12 Administrative Support Office and Office of Audit Services, and no actions were taken against the LEA for this noncompliance.

68

(Continued)