Hunger Solutions New York, IncNon-Profit

2024-001 Payment Timing Requirements Criteria: 2 CFR §200.305(b) requires payments methods must minimize the time elapsing between the transfer of funds from the federal agency and the disbursement of funds and that recipients must make timely payments to contractors in accordance with contract provisions. Condition: Instances were identified where subcontractors were not reimbursed in a timely manner. Recommendation: We recommend that the Organization make all necessary efforts to decrease the amount of time that passes between when funds are received and when subcontractors are reimbursed. Views of Responsible Officials and Planned Corrective Actions: HSNY was unable to submit monthly claims for their primary grant due to delays with New York State Office of Temporary and Disability Assistance (OTDA) drafting and approving a contract for the period. While OTDA approved appropriation of the funds to HSNY, without a contract in place, HSNY was unable to submit claims for payment for the period through June 30, 2024 until the contract was approved in May 2025. Changes to the submittal process implemented by OTDA also delayed HSNY’s ability to submit claims for approval. This had a detrimental impact to cash flow as operating costs needed to be paid during this period. With the approval of the contract and efforts being made at OTDA to expedite payment, HSNY’s cash flow position has since improved and reimbursements to subcontractors as of the audit date are being made timely.

2024-002 Reporting Criteria: Due to the level of federal funding received, the Organization was required to have a Federal single audit. The deadline to submit the single audit to the Federal Audit Clearinghouse is the earlier of 1) 30 calendar days after receipt of the audit report, and 2) nine months after the end of the audit period. Condition: As of the date of our audit report, the Organization has not completed the Federal Audit Clearinghouse submission for fiscal year 2024. Recommendation: We recommend that the Organization continue to bring accounting records up-to-date and submit the late filings as soon as possible after receiving the final audit report. Additionally, we recommend that the Organization begin to file their reporting submissions in a timely manner. Views of Responsible Officials and Planned Corrective Actions: HSNY was unable to submit monthly claims for their primary grant due to delays with New York State Office of Temporary and Disability Assistance (OTDA) drafting and approving a contract for the period. While OTDA guaranteed appropriation of the funds to HSNY, without a contract in place, HSNY was unable to submit claims for payment for the period through June 30, 2024 until the contract was approved in May 2025. Changes to the submittal process implemented by OTDA further delayed HSNY’s ability to timely submit claims for approval. This missing information causes an issue closing the year end books. To address the problem, management has requested OTDA prepare these contracts on a timely basis in the future and to prioritize any claims submitted for approval so that HSNY can catch up.

Criteria: Due to the level of federal funding received, the Organization was required to have a Federal single audit. The deadline to submit the single audit to the Federal Audit Clearinghouse is the earlier of 1) 30 calendar days after receipt of the audit report, and 2) nine months after the end of the audit period.As of the date of our audit report, the Organization has not completed the Federal Audit Clearinghouse submission for fiscal year 2023.

Recommendation: We recommend that the Organization continue to bring accounting records up-to-date and submit the late filings as soon as possible after receiving the final audit report. Additionally, we recommend that the Organization begin to file their reporting submissions in a timely manner.

Due to the level of federal funding received, the Organization was required to have a Federal single audit. The deadline to submit the single audit to the Federal Audit Clearinghouse is the earlier of 1) 30 calendar days after receipt of the audit report and 2) nine months after the end of the audit period.