Hi and welcome to the forums. Why do you need a cursor for this? From what you posted I think you can replace the entire body of your stored proc with this.
update SNLunchSevereNeeds
set HHFKOverride = 1,
HHFKProcess = 1,
HHFKPayFrom = 7
from SNLunchSevereNeeds
where SystemCertificationID in
(
select SC.SystemCertificationID
from SNSystemCertification SC
INNER JOIN SNLunchSevereNeeds LS ON SC.SystemCertificationID = LS.SystemCertificationID
where FiscalYear = @FiscalYear
and LS.IsActive = 1
)
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