State Comptroller Tom DiNapoli said the Nourish New York program needs better oversight.
DiNapoli released an audit that found the state-run program that sends surplus food from farms to people who are struggling with food insecurity found the agencies jointly managing the program may have limited the program’s ability to fund certain food bank purchases, and thus benefit fewer area farmers.
Nourish NY is jointly managed by the New York State Department of Health and the New York State Department of Agriculture and Markets. The program launched in May 2020 to help with the pandemic’s food supply chain disruptions. It was then permanently signed into state law in November 2021 and has been allocated $147 million in funding through March 2023.
Regional food banks contract with DOH to receive these funds and allocate them to local soup kitchens, food pantries, food banks and other community-based organizations to purchase New York grown farm products. The DOH reviews and approves all claims for payments, relying on verification from Ag and Markets that purchases made with Nourish NY funds meet program requirements.
DiNapoli’s audit revealed the DOH approved $22.7 million in purchases from May 2020 through March 2022, despite not having adequate documentation to support the food products were grown in New York as required under Nourish NY. Auditors noted this often occurred because local food providers only submitted lump sum expenses to the regional food banks, as opposed to a breakdown of products purchased, which was not required of them by DOH.
Ag and Markets could not always verify the source of the farm products purchased despite this being their responsibility. In a review of 165 food purchases, totaling almost $1 million from distributors, neither the agency nor the food relief organization could provide the required documentation.
The DOH also provided little guidance to food relief organizations on what administrative costs Nourish NY funding could cover. As a result, the audit found DOH approved over $8.9 million in administrative reimbursement that could not be verified due to insufficient documentation. Auditors concluded DOH needs to improve its oversight, otherwise, funds could be improperly used for expenses not associated with Nourish NY.
Auditors also found that the DOH applied Hunger Prevention and Nutrition Assistance Program standards to Nourish NY. Applying these more rigorous nutritional standards left food relief organizations unable to purchase certain foods commonly produced in New York, such as honey, maple syrup, and whole milk. The DOH’s decision to combine funds for both food assistance programs and not supply adequate guidance of these standards to food relief organizations led to some area farms unable to participate in the program. Further, the audit points out that under the law, Nourish NY does not restrict purchases based on whether products meet certain nutritional standards.
The audit determined vendor participation could be increased in the Nourish NY Program. Only 39 vendors participated in Western New York. Ag and Markets officials identified measures taken and planned to encourage farmer participation in the program.
State Senator George Borrello said in a statement, “I am grateful to State Comptroller DiNapoli for this thorough and critically needed audit of the implementation of Nourish NY. As a member of the bipartisan coalition that worked to establish Nourish as a permanent program, we all have great dedication to this initiative and its mission and want to see it succeed. The path towards that goal starts with adopting the recommendations of this audit. I am particularly gratified that the report concurs with me and my colleagues that the decision to merge the funding for Nourish NY and the Hunger Prevention and Nutrition Assistance Program led to challenges and needs to be overhauled. Addressing that issue as well as the others outlined in the report represent the blueprint for the program’s growth and impact for years to come.”
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