FAC Explorer

Audit 366080

FY End
2024-06-30
Total Expended
$7.02M
Findings
4
Programs
2
Organization: Hunger Solutions New York, INC (NY)
Year: 2024 Accepted: 2025-09-11
Auditor: Lutz Selig & Zeronda CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
576165 2024-001 Material Weakness - C
576166 2024-002 Material Weakness Yes L
1152607 2024-001 Material Weakness - C
1152608 2024-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.90M Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.14M Yes 1

Contacts

Name Title Type
GB3XT7RE6Y58 Andres Vives Auditee
5183805101 Mary E MacKrell Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hunger Solutions New York, Inc. (HSNY), for the year ended June 30, 2024, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: negotiated rate The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hunger Solutions New York, Inc. (HSNY), for the year ended June 30, 2024, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements.
Title: Summary of significant accounting policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hunger Solutions New York, Inc. (HSNY), for the year ended June 30, 2024, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: negotiated rate Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. HSNY has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through amounts and entity identifying numbers are presented. The Schedule does not include matching costs.
Title: Subreco[oemts Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hunger Solutions New York, Inc. (HSNY), for the year ended June 30, 2024, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Therefore, some amounts presented in this schedule may differ from the amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: negotiated rate HSNY subcontracts with not-for-profit organizations to provide direct services. The amount of subcontractors’ expense funded with federal awards from the “State Administrative Matching Grants for the Supplemental Nutrition Assistance Program” (ALN 10.561) totaled $3,699,195 and for the “Special Supplemental Nutrition Program for Women, Infants and Children” (ALN 10.557) totaled $101,283 for the year ended June 30, 2024.

Finding Details

Finding 2024-001
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.
Finding 2024-002
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.
Finding 2024-001
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.
Finding 2024-002
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.