Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Under the Special Supplemental Nutrition Program for Women, Infants, and Children, New York Treasury State Agreement requires a post settlement funding technique to be utilized for reimbursement of program expenditures. For 24 out of 40 subrecipient expenditures selected for testwork, request and Federal reimbursements were made and received from federal funds prior to the issuance of payments from State funds. Under the Maternal and Child Health Services Block Grant to the States, Subpart B requires that the time elapsed between the payment of expenditures and the draw from the Federal Government be minimized. For 13 of the 65 subrecipient expenditures selected for testwork, the Department’s payment to the subrecipients occurred between 7 and 66 days subsequent to the Department’s request for and receipt of Federal funds. For 4 of the 40 Other Than Personal Service (OTPS) expenditures selected for testwork, payment to the vendor occurred between 8 and 136 days subsequent to the Department’s request and receipt of Federal funds. Under the Child and Adult Care Food Program, the New York Treasury State Agreement requires a post settlement funding technique to be utilized for reimbursement of program expenditures. For 10 out of 40 subrecipient expenditures selected for testwork, request for Federal reimbursements were made and received from federal funds prior to the issuance of payments from State funds. Cause The condition is due to the Department coding vouchers into the Statewide Financial System (SFS) as federally reimbursable expenditures several days in advance of the anticipated payment to the subrecipient. Under the State’s Guide to Fiscal Operations Section IX.5, Federal Billing & Invoicing , identifies the State’s policy that the Department must follow in order to ensure compliance with the State’s Treasury-State Agreement or, where applicable, minimize time elapse between the drawdown of the Federal funds and the disbursement in accordance with 31 CFR 205 Subpart B. Specifically, the guide states the following “Since billing is initiated once an expenditure occurs, it is critical that agencies do not enter AP voucher payment dates more than two days in advance of the current date. Any date beyond this two day limit may result in federal funds being drawn down before the voucher payments are actually incurred”. In all instances identified, the Department entered accounts payable voucher payment dates more than two days in advance of the current date. Possible Asserted Effect Failure to follow the State’s Guide to Fiscal Operation policy may result in the Department not complying with the funding techniques of the Treasury State agreement or Subpart B. 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 2017-032 on pages 84 and 85 related to the Maternal and Child Health Services Block Grant to the States. Questioned Costs Cannot be determined.

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