Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Additionally, 45 CFR 96.30(a) states except where otherwise required by Federal law or regulation, a State shall obligate and expend block grant funds in accordance with the laws and procedures applicable to the obligation and expenditure of its own funds. Fiscal control and accounting procedures must be sufficient to (a) permit preparation of reports required by the statute authorizing the block grant and (b) permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of the statute authorizing the block grant. 45, Internal Control Responsibilities of State Agencies, Section 951 Executive Internal control responsibilities states the head of each state agency shall a) establish and maintain for the agency guidelines for a system of internal control that are in accordance with this article and internal control standards; b) establish and maintain for the agency a system of internal control and a program of internal control review. The program of internal control review shall be designed to identify internal control weaknesses, identify actions that are needed to correct these weaknesses, monitor the implementation of necessary corrective actions and periodically assess the adequacy of the agency’s ongoing internal control; c) make available to each officer and employee of the agency a clear and concise statement of the generally applicable management policies and standards with which the officer or employee of such agency shall be expected to comply. Such statement shall emphasize the importance of effective internal control to the agency and the responsibility of each officer and employee for effective internal control; d) designate an internal control officer, who shall report to the head of the agency, to implement and review the internal control responsibilities established pursuant to this section; e) implement education and training efforts to ensure that officers and employees within such agency have achieved adequate awareness and understanding of internal control standards and, as appropriate, evaluation techniques; and f) periodically evaluate the need for an internal audit function. Finally, 2 CFR 200.303(a) and 45 CFR 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’s (the Department) policies and procedures and internal controls are not designed effectively to ensure federal drawdowns occurred in accordance with the Treasury-State Agreement for Children’s Health Insurance Program and Special Supplemental Nutrition Program for Women, Infants, and Children or 31 CFR 205 Subpart B ensuring a minimized time elapsed between the payment of expenditures and the draw from the Federal Government for the Maternal and Child Health Services Block Grant to the States. Under the Children’s Health Insurance Program, the New York Treasury State Agreement requires a post settlement funding technique to be utilized for reimbursement of program expenditures. For 15 out of 65 expenditures selected for testwork, request and Federal reimbursements were made and received from federal funds prior to the State’s issuance of payment from State funds. New York State Governmental Accountability, Audit and Internal Control Act of 1987 act highlighted the need for agency management to promote good internal controls and accountability in government. Article

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