Finding 7496 (2023-001)

Grantor: Department of Homeland Security Pass-through Entity: New York State Office of Emergency Management Program Name: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Award Year: 07/2022 - 06/2023 Award Number: PA-02-NY-4480-PW-00788 Assistance Listing Number: 97.036 Criteria: Per the Federal Emergency Management Agency’s (“FEMA”) Public Assistance Program, nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (“SEFA”) when (1) FEMA has approved the nonfederal entity’s project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures. Condition: Through testing of the FEMA program in the 2023 Uniform Guidance audit, we noted $619,653 of funds from this program, that were obligated in fiscal 2022 and included in the 2023 SEFA that should have been included in the 2022 SEFA. On the 2022 SEFA, management did not record any reimbursement for awards approved by FEMA. Cause: The cause of this finding was due to incorrect understanding of the reporting requirements related to this program which are unlike other federal programs. Effect: FEMA funding of $619,653 was incorrectly excluded from the 2022 SEFA and included in the 2023 SEFA. This did not impact the prior year or current year major program determinations. Questioned Costs: None. Recommendation: Management should enhance controls in place to review reporting requirements related to the federal programs to ensure expenditures are recorded in the appropriate period’s SEFA. Management’s Views and Corrective Action Plan: Management’s response is included in “Management’s Views and Corrective Action Plan” included on the report.