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 Health and Human Services

Federal Program:

Block Grants for Prevention and Treatment of Substance Abuse (93.959)

Federal Award Numbers:

16B1NYSAPT and 17B1NYSAPT

Federal Award Years:

2016 and 2017

State Agency:

Office of Alcoholism and Substance Abuse Services

Reference:

2018-025

Criteria Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), U niform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards , section 75.352(b) states all pass-through entities must evaluate each subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring described in paragraphs (d) and (e) of this section, which may include consideration of such factors as:

(1) The subrecipient’s prior experience with the same or similar subawards;

(2) The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with subpart F, and the extent to which the same or similar subaward has been audited as a major program;

(3) Whether the subrecipient has new personnel or new or substantially changed systems; and

(4) The extent and results of HHS awarding agency monitoring (e.g., if the subrecipient also receives Federal awards directly from a HHS awarding agency). Condition During the fiscal year ended March 31, 2018, the Office of Alcoholism and Substance Abuse Services (OASAS) passed through $108,802,000 of federal funding to local districts. OASAS has policies and procedures in place to evaluate each subrecipient’s risk of noncompliance with Federal statues, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring activities. During the fiscal year ended March 31, 2018, we identified 3 providers out of a total of 185 that received federal funding from OASAS that were not included within the Office’s risk assessment evaluation. As such, OASAS did not evaluate the risk of noncompliance for each subrecipient to determine the appropriate subrecipient monitoring activities necessary. Cause The condition found was due to OASAS’ internal working document used for oversight, monitoring, and auditee selection not being updated on a timely basis to ensure all subrecipients were included in the analysis. As the information was not timely updated by the State’s information technology, certain providers were excluded from the risk assessment procedures and subsequent monitoring activities not determined to be performed over those subrecipients.

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