Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

Additionally, 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 all requirements within the award notification (or changes to those requirements) are communicated to subrecipients at the time of the subaward or subsequent subaward modification. For 23 of 23 subawards selected for testwork in the Maternal and Child Health Services Block Grant to the States program, the Federal Award Identification Number, federal award date, total amount of the federal award, name of federal awarding agency, pass-through entity, contact information for awarding official, CDFA name, identification of whether the award is R&D, and indirect cost rate were not communicated as part of the subrecipient contract. For the Child and Adult Care Food Program (CACFP), of the 40 of 40 subawards selected for testwork, all requirements are communicated to the subrecipient at the time of the original subaward contract with the subrecipient. However, for multiyear subrecipient contracts, the subrecipient was not notified of new federal awards including any changes subsequent to the subaward modification. Subaward modifications include changes to the amount of federal funds obligated by this action by the pass-through entity to the subrecipient. For the Children’s Health Insurance Program, management was unable to provide evidence that the requirements had been communicated to the local district social services offices as required in accordance with 45 CFR 75.352(a). Cause The cause of the condition was due to the Department’s lack of procedures including internal controls to ensure the Department’s policy were being adhered to during the year. Additionally, the Department’s policy was not specific or clear as to how often the award notifications should be sent to the subrecipients. This lack of policy and monitoring internal control does not ensure all requirements within the award notification are communicated to subrecipient. Possible Asserted Effect Failure to provide sufficient award notification to subrecipients of the Department may result in federal funds provided under the federal award being used for unauthorized purposes contrary to 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.

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