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:

Children’s Health Insurance Program (93.767)

Federal Award Numbers:

1605NY5021, 1705NY0301, 1705NY5021, and 1805NY5021

Federal Award Years:

2016 and 2017

State Agency:

Department of Health

Reference:

2018-034

Criteria Title 42 U.S. Code 1397ee, (42 USC 1397ee), Payments to States , Section 1397ee(c)(7)(A), Limitation on payment for abortions, states payment shall not be made to a State under this section for any amount expended under the State plan to pay for any abortion or to assist in the purchase, in whole or in part, of health benefit coverage that includes coverage of abortion. Additionally, Title 45 U.S. Code of Federal Regulation Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HS Awards , section 75.303(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 The Department of Health (the Department) has historically utilized a methodology to estimate the cost of abortions, which are unallowable based on the requirements of the grant, to ensure that the costs for abortions were not charged to Children’s Health Insurance Plan (CHIP) program. The Department used the methodology to calculate abortion costs of $534,781 for April to February State fiscal year 2017 – 2018. Expenditure adjustments for the amounts noted above are reflected in the CMS 21 report. Cause The condition is due to management not maintaining the actual costs of unallowable abortions or not implementing a retroactive methodology to estimate such costs. Possible Asserted Effect Failure to adequately maintain the use of the funds could result in cost that are not in compliance with the program laws, regulations, and terms and conditions of the Federal Award. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding A similar finding was included in the prior year Single Audit Report as finding number 2015-022 on page 72.

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