Institutional Federal Compliance Report 2021

STATE OF NEW YORK

Schedule of Findings and Questioned Costs

Year ended March 31, 2018

(v) Enable the Governor to ensure compliance with the nondiscrimination, disability, and equal opportunity requirements of sec. 188 of WIOA, including the Assistive Technology Act of 1998 (29 U.S.C. 3003).

Further, 20 CFR Sections 683.410 (b) (4) through (6) state the State must require that prompt corrective action be taken if any substantial violations are identified as result of annual on-site monitoring and must impose the sanctions provided in Sections 184(b) and (c) of WIOA if a subrecipient fails to take required corrective action. The State may issue additional requirements and instructions to subrecipients on monitoring activities. Lastly, 2 CFR 200.303, also 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 During the fiscal year ended March 31, 2018, the New York State Department of Labor (the Department) passed through $136,587,690 of federal funding to 33 Local Workforce Development Areas (LWDAs). As per the Department’s policy, the Financial Oversight and Technical Assistance (FOTA) Unit was established to provide technical assistance to help identify potential fiscal system vulnerabilities at the LWDAS. The purpose of oversight activities is to ensure compliance with applicable Federal requirements and ensure that resources are efficiently used for authorized purposes. This process, which includes a series of on-site and desk reviews over LWDAs’ activities, also includes internal controls and accounting procedures to protect against waste, fraud, and abuse. Under the Department’s internal control policies, a procurement review is to be performed biennially for all LWDAs to ensure that their procurement practices are consistent with State policies for conducting WIOA program activities. For 1 of the 21 LWDAs selected for testwork, the Department did not perform a procurement review within the Department’s established two-year period. Under the Department’s internal control policies, program desk reviews are to be performed quarterly for each LWDA to evaluate the subrecipient’s programmatic and financial activity against program goals and compliance requirements. For 1 of the 9 LWDAs selected for testwork, the Department did not perform the program desk review within the Department’s established quarterly period. Under the Department’s internal control policies, annual program reviews are to be performed separately over Adult and Dislocated Worker services and Youth services for each LWDA in order to assess compliance with rules and regulations surrounding provision of services; participant eligibility; and Local Workforce Development Board monitoring activities. For 3 of the 9 LWDAs selected for testwork, the Department did not perform a program review within its established annual timeframe over the LWDAs’ adult and dislocated workers services in fiscal year 2018. Additionally, for 1 of the 9 LWDAs selected for testwork, the Department did not perform a program review within its established annual timeframe over the LWDA’s youth services during fiscal year 2018.

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