Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Department requests proof of payment for all claimed expenditures, copies of invoices/bill/purchase orders, and the methodology used to allocate the expense to the contract.

The Department of Health (the Department) did not consistently perform their voucher trace internal control over subrecipient expenditures in accordance with their policy. For 5 of 13 claims selected for testwork, supporting invoices for each claim were not obtained and reviewed by the Department in accordance with their policies. Additionally, for all voucher reviews selected for testwork, the Department was not able to provide evidence that the “Voucher Trace Recoupment of Funds” letter or “Voucher Trace No Findings Letter” was provided to the subrecipient. These letters would include the Department’s action items for the subrecipient to complete as deemed necessary. Cause The condition is due to the Department not requiring certain subrecipients selected for review to submit the level of documentation required by its internal control policies. The Department provides exceptions to certain subrecipients who express hardship with the process and find it difficult to supply all the required supporting documentation. Additionally, the condition is due to the Department not being able to provide evidence of their “Voucher Trace Recoupment of Funds” letter or “Voucher Trace No Findings Letter” due to turnover in staff. Possible Asserted Effect Failure to perform sufficient internal controls over subrecipient payments may result in the expenditures and use of federal funding not being in compliance with Federal statutes, regulations, and the terms and conditions of the subaward. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs None. Recommendation We recommend that the Department enhance its internal control polices to ensure the voucher trace control is performed consistently across all selected subrecipients based on its sampling procedures. Additionally, we recommend that the Department ensure documentation is maintained to support the results of the performance of its review. Views of Responsible Officials Recommendation accepted. The Department has already implemented significant process enhancements in this area. Reference the corrective action plan for further details.

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