Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Cause The condition results from the change in the funding awarded by the USDA and the subsequent coding of the award in the Statewide Financial System (SFS). Per the Fall 2017 issue of the Northeast Region Grants Management Brach Newsletter from the USDA, beginning on October 1, 2017, funds for the three block grants (National School Lunch Program (NSLP), CACFP, and Summer Food Service Program (SFSP)) are given out under one account code, N1099, replacing multiple account codes. The change has no impact on reporting for the programs and supplemental GADs are provided with the estimated breakdown of the amounts by program. When the 2018 grant awards were coded in SFS, the award field was separated into the three awards (201818N109944, 201818N109944-OGS, and 201818N109944-SED). However, all three awards were coded to CFDA #10.555, National School Lunch Program. Therefore, the $95,989,199 of expenditures charged to the 201818N109944 award from October 1, 2017 through March 31, 2018 related to CFDA #10.558, CACFP, but were classified CFDA #10.555, National School Lunch Program on the SEFA as of March 31, 2018. Management’s annual SEFA internal control review was not performed at a level of precision that would detect the misclassification of these expenditures. Possible Asserted Effect Failure to ensure the completeness and accuracy of the expenditure amounts reported on the SEFA may result in inaccurate reporting to the U.S. Department of Agriculture and may impact its ability to effectively monitor and evaluate the State’s performance relative to CACFP. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs None. Recommendation We recommend the State revise their process, including its management review control to ensure the proper classification of expenditures on the SEFA. Views of Responsible Officials Recommendation accepted and corrective action has been implemented. Reference the corrective action plan for further details.

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