Objective

To determine the extent of implementation of the five recommendations included in our initial audit report, Oversight of the Nourish New York Program (Report 2022-S-33).

About The Program

The Nourish New York (Nourish NY) initiative was established in May 2020 during the COVID-19 pandemic (pandemic) in response to disrupted food supply chains and was intended to expand the State’s food supply network and markets for New York farm products while also providing greater access to local, nourishing food options in food-insecure areas. Food insecurity—an inability to acquire adequate food for one or more household members due to a lack of resources—remains a reality for many New York residents. Nourish NY supplies surplus agricultural products (e.g., milk, apples, cheese, yogurt, squash) to populations who need them through the State’s network of food relief organizations (i.e., regional food banks, food pantries, soup kitchens, and community-based organizations hereafter, collectively referred to as contractors) that provide food for free to people experiencing food insecurity. Agricultural products purchased under Nourish NY must be grown, produced, or harvested in the State, and if further processed, the final product must contain at least 51%, by weight or volume, of agricultural products that are grown, produced, or harvested in the State. New York farmers, producers, and processors (hereafter, collectively referred to as vendors) offer products at competitive wholesale prices to contractors that then distribute the food to those in need. In November 2021, Nourish NY was made permanent under Article 27 of the Agriculture and Markets Law, which also outlines the requirements for the agencies that jointly administer it: the Department of Agriculture and Markets (AGM) and the Department of Health (DOH).

The objective of our initial audit, issued on September 21, 2023, was to determine if AGM and DOH were ensuring Nourish NY provided adequate access to the program for farmers and connected citizens across the State to surplus agricultural products. The audit covered Nourish NY spending from May 2020 through March 2022, and considered AGM and DOH actions related to the program through May 2023. Our initial audit found several areas where AGM and DOH could strengthen controls to ensure only eligible products and expenses are funded by Nourish NY. Specifically, AGM and DOH’s processes and the documentation provided by food relief organizations made determining whether expenses were eligible for Nourish NY funding difficult—generally because they lacked sufficient detail. Further, information used by DOH and AGM was not being used effectively together to determine if products purchased with Nourish NY funds were eligible New York food products. We also found DOH provided little guidance to food relief organizations establishing what constitutes an allowable administrative cost, and conducted minimal review to determine if administrative expenses claimed were allowable and, therefore, used to support Nourish NY. Additionally, DOH adopted the Hunger Prevention and Nutrition Assistance Program's requirements and applied them to Nourish NY—specifically, those regarding which New York food products were eligible for purchase under the program. Consequently, this limited the eligibility of certain agricultural products from the Nourish NY program and, possibly, the participation of certain vendors. We also found AGM could have done more to promote participation by vendors and that DOH had not submitted the cold storage report to the Executive and Legislature, leaving them without information to assess the cold storage needs of food relief organizations Statewide.

Key Findings

AGM and DOH officials made significant progress in addressing the concerns we identified in the initial audit report. Of the report’s five audit recommendations, four were implemented, and one was partially implemented.

Key Recommendation

AGM and DOH officials are requested, but not required, to provide information about any actions planned to address the unresolved issues discussed in this follow-up within 30 days of the report’s issuance.