oversight

18-15. Audit of Grant NY-7776-C36-302-15 and NY-7776-C37-302-16 Awarded to New York State Department of State

Published by the Appalachian Regional Commission, Office of Inspector General on 2019-06-10.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

APPALACHIAN REGIONAL COMMISSION
  OFFICE OF INSPECTOR GENERAL
     AUDIT OF GRANT AWARD

  New York State Department of State
          Albany, New York




       Final Report Number: 18-15
Project Number: NY-7776-C36-302-15 and
           NY-7776-C37-302-16
              March 7, 2018



             Prepared By:
                                      March 29, 2018


                                      Appalachian Regional Commission
                                      Office of Inspector General
                                      1666 Connecticut Avenue, N.W.
                                      Washington, D.C. 20009

                                      Bonadio & Co., LLP completed an audit of grant number NY-7776-C36-302-15 and
                                      NY-7776-C37-302-16 awarded by the Appalachian Regional Commission (ARC) to
                                      the New York State Department of State (DOS). The audit was performed to assist
                                      the Office of Inspector General in carrying out its oversight of ARC grant funds.

                                      The objectives of the audit were to determine whether: (1) program funds were
                                      managed in accordance with the ARC and Federal grant requirements; (2) grant
                                      funds were expensed as provided for in the approved grant budget; (3) internal grant
                                      guidelines, including program (internal) controls, were appropriate and operating
                                      effectively; (4) accounting and reporting requirements were implemented in
                                      accordance with generally accepted accounting principles (or other applicable
                                      accounting and reporting requirements); and (5) the matching requirements and the
                                      goals and objectives of the grant were met.

                                      Overall, DOS financial management and administrative procedures, including related
                                      internal controls, were adequate to manage the funds provided under the ARC grant
                                      reviewed. The expenditures tested were supported and considered reasonable; and
                                      the overall grant performance measures were adequately met.

                                      Bonadio & Co., LLP appreciated the cooperation and assistance received from DOS
                                      and the ARC staff during the audit.




432 North Franklin Street, Suite 60
   Syracuse, New York 13204
       p (315) 476-4004
        f (315) 475-1513

        www.bonadio.com




           ALBANY • BATAVIA • BUFFALO • E AST AURORA • GENE VA • NYC • RO CHESTER • RUTL AND, V T • SYRACUSE • UTICA
                            TABLE OF CONTENTS


                                                Page

BACKGROUND                                       1

OBJECTIVE, SCOPE AND METHODOLOGY                 2

SUMMARY OF AUDIT RESULTS                         2

OTHER OBSERVATIONS                               2
BACKGROUND

Bonadio & Co., LLP completed an audit of grant numbers NY-7776-C36-302-15 (C36) and NY-7776-C37-
302-16 (C37) awarded by the Appalachian Regional Commission (ARC) to the New York State
Department of State, Albany NY (DOS). DOS also administered the grants. The audit was conducted at
the request of the ARC, Office of Inspector General, to assist the office in its oversight of the ARC grant
funds.

The purpose of the Consolidated Technical Assistance Grant is to address all four ARC goals to provide
technical assistance for project development, planning, monitoring, and program development in the 14
counties in the New York Appalachian Region. DOS works with Local Development Districts (LDD) to
continue its planning, development and coordination activities as the liaison for NYS to the ARC and for
the ARC to NYS LDD, counties and local governments. Working with the LDD and other state agencies,
DOS identifies and promotes regionally significant priorities, projects and strategies that are facilitated
through ARC grants.

The C36 grant, approved on September 30, 2015, provided $237,649 in ARC funds and required an
equal match of non-ARC funds for the period of October 1, 2014 through September 30, 2015. Over 85 %
of the approved budget was for personnel and travel expenditures. The initial grant budget for C36 was
$475,298; however, the final reported expenditures were only $434,539.26, which was funded equally by
ARC and non-ARC funds.

The C37 grant was approved on September 30, 2016 for the grant period of October 1, 2015 through
September 30, 2016. It provided $247,078 in ARC funds and required an equal match of $247,078 in
non-ARC funds. The initial budget for C37 was $494,156; however, the final reported expenditures were
$436,919 for personnel and travel expenditures, which was funded equally by ARC and non-ARC funds.
The final expenditures reported were lower than projected budget due to reduced personnel
expenditures.

At the time of our audit, both grants were complete and administratively closed by the ARC. The final
expenditures reported for both grants were lower than the project budget due to lower than expected
personnel expenditures. Grant objectives included project objectives related to the following four area:
Project Development and Monitoring, Program Planning and Development, Regional Outreach and
Technical Assistance, and Project Data Management Performance Measurement.




                                                    1
OBJECTIVES, SCOPE, AND METHODOLOGY

The audit objectives were to determine whether: (1) program funds were managed in accordance with the
ARC and Federal grant requirements; (2) grant funds were expensed as provided for in the approved
grant budget; (3) internal grant guidelines, including program (internal) controls, where appropriate were
adequate and operating effectively: (4) accounting and reporting requirements were implemented in
accordance with generally accepted accounting principles (or other applicable accounting and reporting
requirements); and (5) the matching requirements and the goals, objectives and performance measures
of the grant were met.

We reviewed the documentation provided and interviewed DOS personnel to obtain an overall
understanding of the grant activities, the accounting system, and operating procedures. We reviewed
DOS administrative procedures and related internal controls to determine whether they were adequate to
administer the grant funds. We also reviewed the most recent Single Audit report to determine whether
there were any issues that affected the ARC grant.

The primary criteria used in performing the audit were ARC grant documents, the grant approval, the ARC
code, other ARC requirements, and 2 CFR Part 200 “Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards”. The audit was performed in accordance with
the Government Auditing Standards. The fieldwork was performed on November 28, 2017 through
November 30, 2017. The preliminary audit results were discussed with DOS representatives at the
conclusion of the fieldwork.


SUMMARY OF AUDIT RESULTS

Overall, the DOS administrative procedures were adequate to manage the grant and funds reviewed. The
expenditures tested were supported and considered reasonable. We did not question any incurred costs.
Records and reports produced during the audit process indicated that the tasks required by the grant
agreements were accomplished. The overall grant objectives, with respect to anticipated outputs and
outcomes, were met and adequately monitored.

OTHER OBSERVATION

 The grant requires that performance measures outlined in the application are adequately monitored and
 included in the project closeout reports per ARC’s Guide to ARC Project Performance Measures. The
 guidelines also state that all ARC projects must have documented output and outcome performance
 measures. Per our discussion with DOS personnel and our review of submitted reports, performance
 measures tracked have improved from grant C36 to C37. For future grants, DOS should be submit all
 reports on time and include as much detail as possible to demonstrate that projected outcomes have
 been achieved.




                                                    2