Finding Text
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.