Federal Agency: United States Department of Education Federal Program: Rehabilitation Services – Vocational Rehabilitation Grants to States (84.126) Federal Award Numbers: H126A220048 (OCFS), H126A230048 (OCFS), H126A240048 (OCFS), H126A250048 (OCFS) Federal Award Years: 2022, 2023, 2024, 2025 State Agency: Office of Children and Family Services Reference: 2025-001 Criteria Reporting RSA 911, Case Service Report (RSA 911) (OMB PRA No. 1820 0508). The RSA 911 is a set of data elements that state Vocational Rehabilitation (VR) agencies must submit to the Office of Children and Family Services. The data elements obtained from state VR agency service records and case management systems document the application for and/or provision of VR services to individuals with disabilities, including program outcomes and demographic information. The RSA 911 data set instructions are available at https://rsa.ed.gov/sites/default/files/subregulatory/pd 19 03.pdf. Key Line Items – Supporting documentation must be included in the service record or case management system for the data elements listed below. Dates reported in the case management system must match the supporting documentation. The following data elements contain critical information: 1. Date of Application (element 7) 2. Date of Eligibility Determination (element 38) 3. Date of Initial Individualized Plan for Employment (IPE) (element 398) 4. Start Date of Employment in Primary Occupation (element 350) 5. Employment Outcome at Exit (element 356) 6. Date of Exit (element 353) 7. Hourly Wage at Exit (element 359) Internal Controls 2 CFR 200.303(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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Office of Children and Family Services (OCFS) did not maintain complete and accurate data with the quarterly submissions of the RSA 911 report. A sample of 40 cases was selected from the department. For each case, the seven key line items were tested to verify the data reported in the case management system matched supporting documentation. The list below summarizes the key line elements the department could not provide supporting documentation or discrepancies were noted as follows: • Date of Application (Element 7) – Three cases where no signed application could be provided to support the date that the underlying application was received as reported on the RSA 911. • Date of Initial IPE (Element 398) – One case where no signed IPE could be provided to support the date of initial IPE reported on the RSA 911. Cause The condition is due to deficiencies in the review process, which failed to correctly evidence proper review of the supporting documentation via signature of the application and IPE as required for the RSA 911 reporting. The imprecise review process led to reporting deficiencies. Possible Asserted Effect Failure to perform proper review of the data recorded in the case management system prior to the submission of the RSA 911 report can result in incorrect data elements of the seven key line items noted for the Case Service Report. Questioned Costs None Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend OCFS to ensure its review process of the underlying cases operates at a precision necessary to identify incorrect data to ensure complete and accurate data is submitted on the RSA 911 reports. This will help mitigate the risk of reporting deficiencies and ensure the reliability of the data used for decision making and program evaluations. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Education Federal Program: Rehabilitation Services – Vocational Rehabilitation Grants to States (84.126) Federal Award Numbers: H126A220047 (SED), H126A230047(SED), H126A240047 (SED), H126A250047 (SED) Federal Award Years: 2022, 2023, 2024, 2025 State Agency: State Education Department Reference: 2025-002 Criteria Reporting RSA 911, Case Service Report (RSA 911) (OMB PRA No. 1820 0508). The RSA 911 is a set of data elements that state Vocational Rehabilitation (VR) agencies must submit to the United States Department of Education. The data elements obtained from state VR agency service records and case management systems document the application for and/or provision of VR services to individuals with disabilities, including program outcomes and demographic information. The RSA 911 data set instructions are available at https://rsa.ed.gov/sites/default/files/subregulatory/pd 19 03.pdf. Key Line Items – Supporting documentation must be included in the service record or case management system for the data elements listed below. Dates reported in the case management system must match the supporting documentation. The following data elements contain critical information: 1. Date of Application (element 7) 2. Date of Eligibility Determination (element 38) 3. Date of Initial Individualized Plan for Employment (IPE) (element 398) 4. Start Date of Employment in Primary Occupation (element 350) 5. Employment Outcome at Exit (element 356) 6. Date of Exit (element 353) 7. Hourly Wage at Exit (element 359) Internal Controls 2 CFR 200.303(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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The State Education Department (SED) did not maintain complete and accurate data with the quarterly submissions of the RSA 911 report. A sample of 60 cases was selected from the department. For each case, the seven key line items were tested to verify the data reported in the case management system matched supporting documentation. The list below summarizes the key line elements the department could not provide supporting documentation or discrepancies were noted as follows: • Date of Application (Element 7) – Two cases where no documentation could be provided to support the date that the underlying application was received as reported on the RSA 911. • Date of Initial IPE (Element 398) – One case where the date of Initial IPE reported in the RSA 911 did not agree to the date on the underlying IPE. Cause The condition is due to deficiencies in the input and review process, which failed to correctly input information per the supporting documentation required for the RSA 911 report. The imprecise review process led to reporting deficiencies. Possible Asserted Effect Failure to perform proper review of the data recorded in the case management system prior to the submission of the RSA 911 report can result in incorrect data elements of the seven key line items noted for the Case Service Report. Questioned Costs None 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 2024 Single Audit Report as finding number 2024 004 at pages 25 27. Recommendation We recommend SED to ensure its review process of the underlying cases operates at a precision necessary to identify incorrect data to ensure complete and accurate data is submitted on the RSA 911 reports. This will help mitigate the risk of reporting deficiencies and ensure the reliability of the data used for decision making and program evaluations. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Education Federal Program: Rehabilitation Services – Vocational Rehabilitation Grants to States (84.126) Federal Award Numbers: H126A220047 (SED), H126A230047(SED), H126A240047 (SED), H126A250047 (SED) Federal Award Years: 2022, 2023, 2024, 2025 State Agency: State Education Department Reference: 2025-003 Criteria Period of Performance Under section 111(a)(1) of the Rehabilitation Act, the Department pays to each state each federal fiscal year an amount equal to the federal share of the cost of providing VR services and administering the VR program. Consistent with the definition of “period of performance” at 2 CFR section 200.1 and the requirements governing information that must be contained in a Grant Award Notification (GAN) at 2 CFR section 200.211, the VR GAN specifies the beginning and end dates for each VR grant award. Therefore, state VR agencies may incur obligations or make expenditures under a grant award if they are incurred during the period of performance for that award. Any obligations or expenditures incurred outside of that period of performance would need to be paid with funds available from a different VR grant award. Internal Controls 2 CFR 200.303(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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The State Education Department (SED) did not maintain complete data along with the supporting documentation for the period of performance. A sample of 60 transactions was selected from SED records. For each case, an invoice, pay period, and/or manual journal entries were tested to verify the data reported in the NYGR0302 report. It was also checked to ensure that the disbursement was properly reviewed, approved, and that the selected amount met the requirement of an allowable activity incurred during the period of performance and liquidated within the required time period. During our review of fiscal year 2025 transactions, we identified that 4 out of the 60 sampled transactions occurred outside the designated period of performance. The grant award period ended on September 30, 2024, with a liquidation period extending 120 days beyond that date, until January 28, 2025. Specifically, for grant number H126A230047, these four services were incurred in either October or November 2024, which is after the designated period of performance. This indicates a significant lapse in the controls governing the timing of obligations and expenditures related to VR grant funds. Cause The condition related to a deficiency in the operation of the review process not occurring at a precision necessary to identify missing information during the review that is required to be in compliance with the grant’s period of performance. Possible Asserted Effect The identified issue of a transaction occurring outside the period of performance and being liquidated beyond the required liquidation period could have significant implications for SED. This non compliance with federal regulations may result in financial penalties, reduced future funding, and potential repayment of misused funds. Questioned Costs $23,190 (representing the 4 transactions found to have occurred outside the specified period of performance. The population amounted to $117,470,987, of which sixty, totaling $2,948,245, were selected for test work.) Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding A similar finding was identified in the 2024 Single Audit Report as finding number 2024-003 at pages 23-24. Recommendation We recommend SED implement a new control mechanism for reviewing funds before distribution. This control should include a pre distribution review process with a dedicated team or staff verifying the period of performance for each VR grant award, ensuring all obligations and expenditures fall within the specified dates. Additionally, an automated system or manual control is recommended to be developed or enhanced to flag any transactions outside the period of performance or liquidation period. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Child Support Services (93.563) Federal Award Numbers: 2101NYCEST, 2201NYCEST, 2301NYCEST, 2401NYICSS, 2401NYSCSS, and 2501NYSCSS Federal Award Years: 2021, 2022, 2023, 2024, 2025 State Agency: Office of Temporary and Disability Assistance Reference: 2025-004 Criteria Matching – Maintenance of Effort Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, section 75.306(b) requires for all Federal awards, any shared costs or matching funds and all contributions, including cash and third party in kind contributions, must be accepted as part of the nonfederal entity’s cost sharing or matching when such contributions meet all of the following criteria: 1. Are verifiable from the nonfederal entity’s records; 2. Are not included as contributions for any other Federal award; 3. Are necessary and reasonable for accomplishment of project or program objectives; 4. Are allowable under subpart E of 45 CFR 75; 5. Are not paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs; 6. Are provided for in the approved budget when required by the HHS awarding agency; and 7. Conform to other provisions of this part, as applicable. Subrecipient Monitoring Additionally, 45 CFR 75.352(d) states all pass through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward issued for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved. Pass through entity monitoring of the subrecipient must include: 1. Reviewing financial and performance reports required by the pass through entity. 2. Following up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass through entity detected through audits, on site reviews, and other means. Further, 45 CFR 75.203(c) requires the nonfederal entity to evaluate and monitor the nonfederal entity’s compliance with statutes, regulations and the terms of the Federal awards. The nonfederal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the federal award (45 CF 75.400(b)). Each state must expend and account for the federal award in accordance with state laws and procedures for expending the state’s own funds. Such monitoring activities should ensure that the expended funds were for allowable costs in accordance with federal regulations. Also, 45 CFR 75.352(e) states, depending upon the pass through entity’s assessment of risk posed by the subrecipient, the following monitoring tools may be useful for the pass through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: 1. Providing subrecipients with training and technical assistance on program related matters; 2. Performing on site reviews of the subrecipient’s program operations; and 3. Arranging for agreed upon procedures engagements as described in 45 CFR 75.425. Internal controls Lastly, 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 Office of Temporary and Disability Assistance (the Office) enters into grant agreements with local districts to provide programmatic services for the Child Support Services program. Local districts initially cover 100% of costs incurred under the grant and periodically submit requests for reimbursement to the State of New York for services rendered. The Office reimburses local districts only for the federal share of the costs incurred, while the local districts provide the matching funds required by the State of New York. During the fiscal year ended March 31, 2025, the Office relied upon the local districts’ match rate of 34% to ensure the State met their matching requirements of the Child Support Services program. During our testwork over the Office’s subrecipient monitoring process, we noted that the Office does not have a process or internal controls in place to verify the sources of funds used by local districts to meet the matching requirements of the federal program awards, ensuring that these sources are allowable under federal regulations. Cause The condition caused is due to a lack of policies and procedures to ensure that funds utilized by the local districts for cost sharing or matching purposes are in accordance with 45 CFR 75.306(b) The Office’s subrecipient monitoring procedures implemented in November 2020 do not include a review of the local funds used for cost sharing or matching purposes. Possible Asserted Effect Failure to review the sources of the funds used by local districts for matching could result in the use of inappropriate funds for cost sharing or matching of expenditures. This noncompliance with the program laws, regulations, and terms and conditions of Federal awards could lead to questioned costs and potential disallowance of funds by federal agencies Questioned Costs Cannot be determined. 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 2024 Single Audit Report as finding number 2024 005 on pages 28 30. Recommendation We recommend the Office and the State develop and implement policies and procedures over subrecipient monitoring which include monitoring procedures over the local districts. These policies and procedures should incorporate reviewing the source of the local district’s cost sharing or match to determine that the source is appropriate and in accordance with 45 CFR 75.306(b). View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Low-Income Home Energy Assistance (93.568) Federal Award Numbers: 2103NYE5C6, 2103NYLWC5, 2103NYLWC6, 2203NYLIEA, 2303NYLIEA, 2303NYLIEE, 2403NYLIEA, 2403NYLIEI, and 2503NYLIEA Federal Award Years: 2021, 2022, 2023, 2024, 2025 State Agency: Office of Temporary and Disability Assistance Reference Number: 2025-005 Criteria Eligibility for Individuals Grant recipients may assist (a) households in which one or more individuals are receiving Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI), Supplemental Nutrition Assistance Program (SNAP) benefits, or certain needs tested veterans’ benefits; or (b) households with incomes which do not exceed the greater of 150 percent of the state’s established poverty level, or 60 percent of the state median income. Grant recipients may establish lower income eligibility criteria, but no household may be excluded solely based on income if the household income is less than 110 percent of the state’s poverty level (42 USC 8624(b)(2)). Grant recipients must give priority to those households with the highest home energy costs or needs in relation to income and household size (42 USC 8624(b)(5)). Internal Controls 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government,” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The State of New York (the State), Office of Temporary and Disability Assistance (the Office) administers the Low-Income Home Energy Assistance (LIHEA) program through the operation of a split eligibility determination function with the Local District Social Service Offices throughout the State. As a pass through entity (PTE), the Office assigns the responsibility of eligibility determination and income verification for LIHEA beneficiaries to the Local District Social Service Offices with the Office reserving its right to oversee and supervise the underlying activities. The Office reported beneficiary payments of $345.6 million for the fiscal year ended March 31, 2025. During the fiscal year ended March 31, 2025, our eligibility sample included eligibility determinations of 40 beneficiaries receiving benefits of $40,307. We found that, in one instance, adequate documentation to support the eligibility determination, such as the eligibility application and income verification, was not available. Although the Office has established procedures, Local District Social Service Offices are not adhering to these requirements to maintain supporting documentation for eligibility determinations. Cause The Office is tasked with adhering to Federal compliance requirements for the LIHEA program and ensuring that supporting documents are preserved to validate the eligibility determinations of beneficiaries. The issue identified stemmed mainly from Local District Social Service Offices not adhering to the mandated procedures for maintaining documentation related to eligibility determinations. Possible Asserted Effect The lack of executed procedures over retention of eligibility determination records could result in a beneficiary payment to an ineligible individual, resulting in the use of federal funding provided under the federal award not being in compliance with Federal statutes, regulations and the terms and conditions. Questioned Costs $400 (total beneficiary payment where eligibility determination could not be supported) Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend that the Office enforce measures to ensure that the Local District Social Service Offices properly maintain records supporting eligibility determinations. View of Responsible Official Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Social Services Block Grant (93.667) Federal Award Numbers: 2201NYSOR, 2101NYSOR, 2021NYTANF, 2301NYTANF, 2401NYTANF Federal Award Years: 2022, 2023, 2024, 2025 State Agency: Office of Children and Family Services Reference Number: 2025-006 Criteria Subrecipient Monitoring Title U.S. code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, section 75.32(d) states all pass through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward issued for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved including ensuring that information related to eligible participants reported by district offices used to compile the annual Post Expenditure Report is complete and accurate. Pass through entity monitoring of the subrecipient must include: 1. Reviewing financial and performance reports required by the pass through entity. 2. Following up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass through entity detected through audits, on site reviews, and other means. Performance Reporting – Post Expenditure Report The 42 USC 1397e requires states and territories to submit to the federal administering agency, the Office of Community Services, an annual Post Expenditure Report no later than six months following the close of the fiscal year. Internal Controls Lastly, 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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government,” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During the fiscal year ended March 31, 2025, the Office of Children and Families (the Office) passed through $132,346,259 under the Social Services Block Grant (SSBG) federal program (ALN 93.667), to local districts (or subrecipients) to provide programmatic services under the SSBG program. As part of the funding arrangement, the local districts are responsible for the administration of the federal program, including ensuring that costs incurred under the federal program are in compliance with federal regulations. During the fiscal year ended March 31, 2025, we noted that on an annual basis, the Office submits the Post Expenditure Report to the Federal Office of Community Services. As part of the federal reporting process, the Office is required to report the number of eligible individuals who received services paid for in part or in whole with federal funds under the SSBG program. All participant services are provided directly by the local district offices. In order to obtain the number of eligible individuals by services category to be included on the report, the Office obtains the information directly from the Welfare Reporting and Tracking Systems (WRTS). The WRTS system contains data from the State’s Welfare Management System (WMS) and the Benefits Issuance Control System (BICS). As it is the responsibility of the district offices to determine eligibility for services, the Office is relying on the district offices to have data entered complete and accurate information within the WMS and BICS systems. During our testwork, we identified that while monitoring procedures have been implemented by the Office to monitor that local districts are utilizing SSBG funds to provide services to participants that meet applicable eligibility criteria established for funded programs, the Office does not extend those monitoring procedures over the portion of funds transferred into the SSBG program by the Temporary Assistance for Needy Families (TANF). As a result, the Office does not have procedures in place to ensure that data related to claims paid using TANF transfer funds reported on the Post Expenditure Report is complete and accurate. Cause The condition found was primarily due to the monitoring procedures implemented by the Office does not include a review to ensure that the participant was eligible to receive services related to TANF transfer funds, which would assist in assuring that the data reported on the Post Expenditure Report is accurate. Possible Asserted Effect The lack of executed monitoring procedures over subawards provided to subrecipients could result in the use of federal funding provided under the federal award not being in compliance with Federal statutes, regulations and the terms and conditions of the subaward. Questioned Costs None Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeating Finding A similar finding was included in the 2024 Single Audit Report as finding number 2024 006 on pages 32 34. Recommendation We recommend that the Office continue to enhance its subrecipient monitoring policies, procedures, and internal control to help ensure that the Office is monitoring subrecipients in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e). The Office should also review its monitoring procedures to ensure that they are reviewing to determine if participants were eligible to receive services paid for using TANF transfer funds to assist in assuring that the data reported within the annual Post Expenditure Report is complete and accurate. Such monitoring activities should be performed at a precision level that would detect and identify errors in that could impact accuracy of the annual Post Expenditure Report. View of Responsible Official Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Block Grants for Community Mental Health Services (93.958) Federal Award Number: 23B1NYCMHS Federal Award Year: 2023 State Agency: Office of Mental Health Reference: 2025-007 Criteria Earmarking The state may not expend more than 5 percent of grant funds for administrative expenses concerning the grant (42 USC 300x 5(b)). Internal Controls Additionally, Title 45 Code of Federal Regulations Part 75, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards (45 CFR 75) section 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 statues, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Office of Mental Health (the Office or OMH) management annually performs a reconciliation to ensure OMH has met the 5 percent administrative expense earmarking requirement. However, during our testing we noted that management had been unable to timely provide the source data used in the earmarking reconciliation. This source data includes supporting detail for the federal fringe rate and the federal indirect cost rate used, as well as payroll costs. Cause The condition caused was due to the Office's policies and procedures, including its internal control not designed to maintain appropriate supporting documentation related to the administrative expenses calculation. Possible Asserted Effect Failure to maintain appropriate supporting documentation could result in the Office's inability to appropriately assess the degree of accuracy with respect to the earmarking calculations and the amounts determined are not accurate and complete as reported to the federal government. Questioned Costs None Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend that the Office review and enhance its policies, procedures, and internal controls to ensure that the sources of data be maintained to support the calculation of the administrative expenses earmarking requirement for each grant. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Block Grants for Community Mental Health Services (93.958) Federal Award Numbers: 21B1NYCMHSC5, 21B1NYCMHSC56; 22B1NYCMHS; 22C1NYCMHS; 23B1NYCMHS; 24B1NYCMHS; 25B1NYCMHS Federal Award Years: 2021, 2022, 2023, 2024, 2025 State Agency: Office of Mental Health Reference: 2025-008 Criteria Special Reporting for Federal Funding Accountability and Transparency Act Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109 282), as amended by Section 6202 of Public Law 110 252, (Transparency Act) that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reporting should be made in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract award modification was made. Aspects of the Transparency Act that relate to subaward reporting (1) under grants and cooperative agreements were implemented in OMB in 2 CFR Part 170 and (2) under contracts, by the regulatory agencies responsible for the Federal Acquisition Regulation (FAR at 5 FR 39414 et seq., July 8, 2010). The requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards and contractors (i.e., prime contractors) that award first tier subcontracts. Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for HHS Awards, section 75.2 defines Subaward as an award provided by a pass through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass through entity considers a contract. Further, 45 CFR 75.2 defines Subrecipient as a non federal entity that receives a subaward from a passthrough entity to carry out part of a federal award; but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency. Internal Controls Lastly, 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Office of Mental Health (the Office or OMH) did not report awards granted to subrecipients for the Block Grants for Community Mental Health Services program for the period April 2024 through March 2025 as required by FFATA. FFATA requires the State to report certain identifying information related to awards made to subrecipients in amounts greater than or equal to $30,000. Of the information to be reported, the following key data elements are required to be audited: 1. Subawardee name 2. Subawardee DUNS number 3. Amount of subaward 4. Subaward obligation/action date 5. Date of report submission 6. Subaward number 7. Subaward project description 8. Subawardee names and compensation of highly compensated officers During our testing, we noted that the Office did not establish internal control procedures to submit FFATA reports for all subawards as required by federal regulations. No FFATA reports were submitted therefore no testwork could be completed. The Office provided $74,967,026 to the subrecipients for the period April 2024 through March 2025. Cause The condition found was due the timing of the implementation of the OMH corrective action plan for a finding that was identified in the previous audit of the program. The condition found was due to the Office not having internal controls in place to ensure that FFATA reporting was being performed for the period April 2024 – March 2025. Possible Asserted Effect Failure to submit all subawards passed through to subrecipients and subcontractors under subawards as defined by 45 CFR 75.2 in the Office's FFATA reporting could result in the Office reporting inaccurate and incomplete amounts to the federal government. Questioned Costs None 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 2024 Single Audit Report as finding number 2024 008 on pages 36 38. Recommendation We recommend that the Office implement policies, procedures, and internal controls to ensure that all amounts passed through to subrecipients and subcontractors under subawards as defined in 45 CFR 75.2 are reported in accordance with the FFATA federal regulations. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Block Grants for Community Mental Health Services (93.958) Federal Award Numbers: 21B1NYCMHS; 22B1NYCMHS; 22SCNYCMHS; 23B1NYCMHS; 24B1NYCMHS; 25B1NYCMHS Federal Award Years: 2021, 2022, 2023, 2024, 2025 State Agency: Office of Mental Health Reference: 2025-009 Criteria Subrecipient Monitoring Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Section 352(a) states all pass through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass through entity must provide the best information available to describe the Federal award and subaward. Required information include: 1. Federal Award Identification. i) Subrecipient name (which must match the name associated with its unique entity identifier; ii) Subrecipient’s unique entity identifier; iii) Federal Award Identification Number (FAIN); iv) Federal Award Date (see Section 75.2 Federal award date) of award to the recipient by the HHS awarding agency; v) Subaward Period of Performance Start and End Date; vi) Amount of Federal Funds Obligated by this action by the pass through entity to the subrecipient; vii) Total Amount of Federal Funds Obligated to the subrecipient by the pass through entity including the current obligation; viii) Total Amount of the Federal Award committed to the subrecipient by the pass through entity; ix) Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA); x) Name of HHS awarding agency, pass through entity, and contract information for awarding official of the pass through entity; xi) Assistance Listing Number (ALN) and Name; the pass through entity must identify the dollar amount made available under each Federal award and the ALN number at time of disbursement; xii) Identification of whether the award is R&D; and xiii) Indirect cost rate for the Federal award (including if the de minimis rate is charged per Section 75.414). 2. All requirements imposed by the pass through entity on the subrecipient so that the Federal award is used in accordance with Federal statutes, regulations and the terms and conditions of the Federal award; 3. Any additional requirements that the pass through entity imposes on the subrecipient in order for the pass through entity to meet its own responsibility to the HHS awarding agency including identification of any required financial and performance reports; 4. An approved federally recognized indirect cost rate negotiated between the subrecipient and the Federal Government or, if no such rate exists, either a rate negotiated between the pass through entity and the subrecipient (in compliance with this part), or a deminimis indirect cost rate as defined in § 75.414(f); 5. A requirement that the subrecipient permit the pass through entity and auditors to have access to the subrecipient's records and financial statements as necessary for the pass through entity to meet the requirements of this part; and 6. Appropriate terms and conditions concerning closeout of the subaward. Title 45 Code of Federal Regulations Part 75, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards (45 CFR 75), section 352(b) states all pass through entities must evaluate each subrecipient's risk of noncompliance with Federal Statues, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring as described in paragraphs (d) and (e) of this section, which may include consideration of such factors as: 1. The subrecipient's prior experience with the same or similar subawards; 2. The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with subpart F, and the extent to which the same or similar subaward has been audited as a major program; 3. Whether the subrecipient has new personnel or new or substantially changed systems; and 4. The extent and results of HHS awarding agency monitoring (e.g., if the subrecipient also receives Federal awards directly from a HHS awarding agency). Additionally, 45 CFR 75.352(d) states all pass through entities must monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Pass through entity monitoring of the subrecipient must include: 1. Reviewing financial and performance reports required by the pass through entity. 2. Following up and ensuring that the subrecipient takes timely and appropriate action on all deficiencies pertaining to the Federal award provided to the subrecipient from the pass through entity detected through audits, on site reviews, and other means. 3. Issuing a management decision for audit findings pertaining to the Federal award provided to the subrecipient from the pass through entity as required by Section 75.521. 45 CFR 74.352(e) states depending upon the pass through entity's assessment of risk posed by the sub recipient (as described in paragraph (b) of this section), the following monitoring tools may be useful for the pass through entity to ensure proper accountability and compliance with program requirements and achievement of performance goals: 1. Providing subrecipients with training and technical assistance on program related matters; and 2. Performing on site reviews of the subrecipient's program operations; 3. Arranging for agreed upon procedures engagements as described in § 75.425 Further, 45 CFR 75.352(f) states the pass through entity must verify that every subrecipient is audited as required by Subpart F of this part when it is expected that the subrecipient's Federal awards expended during the respective fiscal year equaled or exceeded the threshold set forth in § 200.501. Internal Controls Lastly, 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During the fiscal year ended March 31, 2025, the Office of Mental Health (OMH or the Office) passed through $75.0M under the Block Grants for Community Mental Health Services program, to local districts and providers (subrecipients) to provide programmatic and administrative services. As part of the funding arrangement, the local districts and providers (subrecipients) are responsible for carrying out the programmatic services and use the funds to provide comprehensive, community‐based mental health services to adults with serious mental illnesses and to children with serious emotional disturbances and to monitor progress in implementing a comprehensive, community based mental health system. Funds are used for prevention, treatment, recovery support, and other services to supplement Medicaid, Medicare, and private insurance services. When subawards are made to subrecipients, the pass through entities are required to communicate certain award information. The Office’s policies and procedures are not designed to ensure that award notifications are provided to subrecipients as required by 45 CFR 75.352(a). During our testwork of 12 subrecipient award notifications, we noted the following: 1. For 1 award, there was no subrecipient unique entity identifier. 2. For 12 of the subrecipients, there was no amount of Federal Funds Obligated or committed. All pass through entities are required to perform a risk assessment over each subrecipient’s risk of noncompliance for purposes of determining appropriate additional subrecipient monitoring procedures. The Office did not perform an annual risk assessment process related to its subrecipients as required by 45 CFR 75.352(b). Lastly, all pass through entities are required to verify each subrecipient is audited, if required. The Office did not ensure that all required single audits of the program’s subrecipients were received, reviewed, followed up, or appropriate action was taken and as necessary issued a management decision pertaining to the audit finding in accordance with 45 CFR 75, as applicable. Cause The condition found was due the timing of the implementation of the OMH corrective action plan for a finding that was identified in the previous fiscal year. The condition found was primarily due to the lack of written policies and procedures to ensure that: 1. all required award identification information per 45 CFR 75.352(a) is communicated to the subrecipients for each federal subaward period; 2. an appropriate risk assessment process is in place per 45 CFR 75.352(b); and 3. review of the subrecipient single audit reports are performed per 45 CFR 75.352(f). Resource constraints have been a challenge throughout the current fiscal year, which prevented OMH from fully implementing its corrective action plan during this period. Possible Asserted Effect Failure to adequately communicate award identification information could result in the subrecipient not being able to adequately track and report the subawards received, resulting in errors being reported on the schedule of expenditures of federal awards within a subrecipient’s annual single audit report and not being able to comply with required terms and conditions of the federal award. Failure to perform an annual risk assessment to determine appropriate subrecipient monitoring procedures, as well as failure to obtain and review subrecipient single audit reports may result in insufficient monitoring procedures being performed to detect subrecipient noncompliance with federal statutes, regulations, and the terms and conditions of the award. Questioned Costs None 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 2024 Single Audit Report as finding number 2024 009 on pages 39 43. Recommendation We recommend that the Office enhance its processes and internal controls over its reporting to the subrecipients of the federal program to ensure all award identification information required under 45 CFR 75.352(a) is provided to the subrecipients of the Office as data elements change or funding is passed through. We recommend that the Office implement policies, procedures, and internal controls to ensure that risk assessments of subrecipients are performed on an annual basis to determine appropriate monitoring of subrecipients is performed in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e). Lastly, we recommend that the Office implement policies, procedures, and internal controls to track and review all subrecipients’ single audit submissions per 45 CFR 75.252(f). View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Block Grants for Prevention and Treatment of Substance Abuse (93.959) Federal Award Number: 24B1NYSAPT Federal Award Year: 2024 State Agency: Office of Addiction Services and Support Reference: 2025-010 Criteria Special Reporting for Federal Funding Accountability and Transparency Act Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109 282), as amended by Section 6202 of Public Law 110 252, (Transparency Act) that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reporting should be made in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract award modification was made. Aspects of the Transparency Act that relate to subaward reporting (1) under grants and cooperative agreements were implemented in OMB in 2 CFR Part 170 and (2) under contracts, by the regulatory agencies responsible for the Federal Acquisition Regulation (FAR at 5 FR 39414 et seq., July 8, 2010). The requirements pertain to recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards and contractors (i.e., prime contractors) that award first tier subcontracts. Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards for HHS Awards, section 75.2 defines Subaward as an award provided by a pass through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass through entity considers a contract. Further, 45 CFR 75.2 defines Subrecipient as a non federal entity that receives a subaward from a passthrough entity to carry out part of a federal award; but does not include an individual that is a beneficiary of such award. A subrecipient may also be a recipient of other federal awards directly from a federal awarding agency. Internal Controls Lastly, 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Office of Addiction Services and Support (OASAS or the Office) did not timely report awards granted to subrecipients for the Block Grants for Prevention and Treatment of Substance Abuse program for the period April 2024 through March 2025 as required by FFATA. FFATA reporting should be made in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract award modification was made. During our testwork, we were unable to verify the review and approval of the FFATA reports by OASAS for 9 out of 9 reports selected for testing. Additionally, we were unable to verify the reports were submitted timely. Cause The condition found was due to the timing of the implementation of the OASAS corrective action plan for a finding that was identified in the previous audit of the program. Additionally, this appears to be due to lack of a formal documented review over when the FFATA reports were approved and submitted. Possible Asserted Effect Failure to submit all subawards passed through to subrecipients and subcontractors under subawards as defined by 45 CFR 75.2 in OASAS’s FFATA reporting could result in OASAS reporting inaccurate and incomplete amounts to the federal government. Questioned Costs None 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 2024 Single Audit Report as finding number 2024 011 on pages 46 48. Recommendation We recommend OASAS review and enhance its policies, procedures, and internal controls to ensure that all amounts passed through to subrecipients and subcontractors under subawards as defined in 45 CFR 75.2 are reported timely in accordance with the FFATA federal regulations, and formal review, approval and submission is documented. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Health and Human Services Federal Program: Block Grants for Prevention and Treatment of Substance Abuse (93.959) Federal Award Numbers: 21B1NYSAPTC5; 21B1NYSAPTC6; 23B1NYSAPT; 24B1NYSAPT Federal Award Years: 2021, 2023, 2024 State Agency: Office of Addiction Services and Support Reference: 2025-011 Criteria Subrecipient Monitoring Title 45 Code of Federal Regulations Part 75, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards (45 CFR 75), section 352(b) states all pass through entities must evaluate each subrecipient's risk of noncompliance with Federal Statues, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate subrecipient monitoring as described in paragraphs (d) and (e) of this section, which may include consideration of such factors as: 1. The subrecipient's prior experience with the same or similar subawards; 2. The results of previous audits including whether or not the subrecipient receives a Single Audit in accordance with subpart F, and the extent to which the same or similar subaward has been audited as a major program; 3. Whether the subrecipient has new personnel or new or substantially changed systems; and 4. The extent and results of HHS awarding agency monitoring (e.g., if the subrecipient also receives Federal awards directly from a HHS awarding agency). Internal Controls Further, 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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition During our testwork, we noted the Office of Addiction Services and Support (OASAS) had developed and implemented a risk assessment process to help identify entities with higher risks that required additional monitoring procedures. Initially the risk assessment process begins with the programmatic input and is provided to the Fiscal Audit and Review Unit (FARU) to provide additional risk assessment factors. However, the agency was unable to provide documentation to support the additional risk factors considered by FARU. The documentation provided indicated that entities determined to be higher risk did not align with the entities selected and for which additional monitoring procedures were performed. Cause The condition found was because OASAS was not able to provide documentation to support the additional risk factors considered by FARU that determined the higher risk entities reviewed for the fiscal year. Possible Asserted Effect Failure to properly document all program and fiscal risk factors considered in identifying higher risk subrecipients may result in inadequate incremental monitoring procedures being performed and subrecipients not being in compliance with federal statutes, regulations, and the terms and conditions of the subaward. Questioned Costs None 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 2024 Single Audit Report as finding number 2024 012 on pages 49 50. Recommendation We recommend OASAS continue to enhance its subrecipient monitoring policies, procedures and internal control to help ensure OASAS is monitoring subrecipients in accordance with 45 CFR 75.352(d) and 45 CFR 75.352(e). Such monitoring activities should be performed and documented to show all considerations made when determining which subrecipients would be subject to additional monitoring procedures. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.
Federal Agency: United States Department of Homeland Security Federal Program: Disaster Grants – Public Assistance (Presidentially Declared Disasters) (97.036) Federal Award Numbers: 4480DRNYP00000001 and 4694DRNYP00000001 Federal Award Years: 2020, 2023 State Agency: Division of Homeland Security and Emergency Services Reference: 2025-012 Criteria Special Reporting for Federal Funding Accountability and Transparency Act In accordance with the FEMA PA Program Policy Guide, the Federal Funding Accountability and Transparency Act (FFATA) requires that FEMA manage and administer awards in a manner so as to ensure that federal funding is expended and associated programs are implemented in full accordance with the U.S. Constitution, federal law, and public policy requirements. These requirements include, but are not limited to those protecting free speech, religious liberty, public welfare, the environment, and prohibiting discrimination. FEMA must communicate to recipients all relevant public policy requirements, including those in general appropriations provisions, and incorporate them either directly or by reference in the terms and conditions of the award. Recipients are responsible for complying with all requirements of the award. For all federal awards, this includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non federal entity at 2 C.F.R. Parts 25 and 170. FFATA requires recipients to register in the FFATA Subaward Reporting System and report on all awards and subawards equal to or greater than $30,000. Internal Controls Lastly, 2 CFR 200.303(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. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition The Division of Homeland Security and Emergency Services (DHSES) did not timely report awards granted to subrecipients for the Disaster Assistance – Public Assistance program as summarized in the table below during the period April 2024 through March 2025 as required by FFATA. FFATA reporting should be made in FSRS no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract award modification was made. DHSES does not have sufficient internal controls in place to verify the data being reported/entered into the FFATA report to the underlying subaward source documents to ensure the completeness and accuracy of the data being reported. Cause The condition found was due to inadequate tracking of subaward reports, which led to the omission of one subaward amendment and the late reporting of two subawards. For the incorrect subaward amounts, from review of SAM.gov it appeared that DHSES reported subaward amendments as new awards for the total cumulative obligations, including previous obligation versions that had already been reported, rather than as edits to existing subaward reports within SAM.gov as indicated in the guidance provided by SAM.gov. This led to the over reporting of subaward obligations for the selected subaward. Management communicated and provided internal email support that the noncompliance concerning the incorrect subaward amounts stemmed from errors that occurred as a result of the system transition from FSRS to SAM.gov. Possible Asserted Effect The failure to timely report subawards and inaccuracies in the reported amounts resulted in noncompliance with FFATA requirements. This noncompliance could lead to increased scrutiny from federal agencies and potential penalties or corrective actions imposed on DHSES. Questioned Costs None Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Recommendation We recommend DHSES review and enhance its procedures, tracking mechanisms, and internal controls to ensure that all amounts passed through to subrecipients under subawards are reported timely and accurately in accordance with the FFATA federal regulations to prevent future occurrences. View of Responsible Officials Recommendation accepted. Please refer to corrective action plan.