QUESTION
How is the Department of Social Services addressing contracting and payment delays with nonprofit organizations?
0:39:41
·
6 min
The Department of Social Services (DSS) is actively working to streamline contracting and payment processes for nonprofit organizations, addressing delays and financial burdens faced by these entities.
- DSS acknowledges the financial challenges nonprofits face due to delayed payments and cumbersome contracting processes.
- The department emphasizes its commitment to fiscal responsibility and the importance of checks and balances in the use of city resources.
- Efforts to simplify processes include training for staff and providers, as well as looking for ways to facilitate the documentation and invoice submission procedures.
- DSS is exploring systemic improvements and has supported agencies by providing additional advances when necessary.
- The definition of "delay" is nuanced, with DSS working to balance prompt payment with the need for accountability and complete documentation.
Adrienne E. Adams
0:39:41
And looking at city contracting with nonprofit providers then, We all know that the city's robust landscape of nonprofit organizations provide community based human services on behalf of the city.
0:39:52
To many of our most vulnerable residents.
0:39:55
This is especially true for the Department of Social Services.
0:39:58
DHS's contract budget totals $3,820,000,000, which is over 90% of the agency's budget largely relating to shelter services.
0:40:09
HRA's contract budget is nearly a $1,000,000,000, and includes programs such as domestic violence shelters, housing and support services for low income individuals who are HIV positive workforce development programs for cash assistance clients and food to stock our city's food pantries and soup kitchens.
0:40:27
Many of these nonprofits are struggling to keep their doors open, not only because the amounts they're paid under city contracts do not keep pace with the cost of providing services, but also because it's so challenging to contract with the city and because payments are typically received well after they have provided services, and that is a huge complaint time and time again from our providers.
0:40:51
Nonprofits are are forced to front large sums of money, which they often need to borrow at an additional cost to provide services.
0:41:01
This is also coupled with the challenges of navigating the city's arduous contracting process.
0:41:07
MANY PROVIDERS HAVE EXPRESSED THEIR RELUCTANCE TO SUBMIT PROPOSALS FOR RFPS BECAUSE THEY'RE SIMPLY AFRAID city contracting delays could put their organizations in an even more precarious financial position.
0:41:20
And I think that everybody, all of my colleagues here have experience this situation, which is, in a lot of cases, very dire for us.
0:41:27
So what is DSS doing to expedite the contracting and payment timeline for nonprofit organizations, especially as it relates to DHS contracted homeless service providers who are experiencing excess of contracting delays.
Molly Wasow Park
0:41:43
Thank you, speaker.
0:41:44
Before I answer that question, I just want to correct the record.
0:41:47
It's the Walcott Hochtell Nothing.
0:41:48
Thank you.
0:41:49
Sorry.
0:41:49
For Minus Dink.
0:41:52
So DSS takes its financial obligations to contractors very seriously.
0:41:56
This is feedback that we have heard as well and that we are paying very close attention to.
0:42:01
And say, across DSS, all but one of our FY Twenty contracts are registered.
0:42:06
So that's something that we have been pushing very, very strongly.
0:42:12
There is a multistep process after contract registrations.
0:42:16
So providers need to activate their budgets and then submit invoices on a monthly basis.
0:42:21
And all of that is subject to several layers of review by the agency.
0:42:26
That is not necessarily a a struck of our own creation.
0:42:30
Right?
0:42:30
This is part of the overall Citi Financial Management process.
0:42:35
We absolutely believe that the checks and balances are important to make sure that we're using Citi Resources appropriately, but we're also aware that that slows down the payment process.
0:42:44
So we are always looking for ways that we can streamline our internal processes.
0:42:50
That includes as well as as process changes.
0:42:53
That also includes training both for DSS staff but also for providers.
0:42:58
I think one of the challenges that we see frequently is that there's a lot of back and forth on the documentation associated with invoices.
0:43:05
So the more that we can do to make sure that we are hitting all of the required documentation on step 1, the better off we are all gonna be.
0:43:14
I think I'm probably not saying anything surprising.
0:43:18
There there's been a migration to passport this year that has added additional challenges and very confident in the long run.
0:43:25
That is gonna make us all much better off, but recognizing that it has created some challenges this year, Mocks and OM have been very supportive of giving additional advances to agencies, so we have done that where we need to.
0:43:39
But we continue to work closely with providers, do regular troubleshooting, and are looking for ways that we can make ongoing systemic improvements?
Adrienne E. Adams
0:43:50
I agree.
0:43:50
It's such such a monumental issue with our nonprofit organizations, and we have to do better.
0:44:00
We just have to do better.
0:44:01
Does DSS have an accounting of all non profit contracting and payment delays?
Molly Wasow Park
0:44:10
Excuse me, I don't have anything right with me, but I we can certainly circle back.
Adrienne E. Adams
0:44:15
That's that's really important.
0:44:18
If if DSS doesn't have an accounting of these delays, of these nonprofits that are stuck in your in your logjam, that's an issue.
Molly Wasow Park
0:44:27
It it is a it's a little bit more nuanced because what one might consider.
0:44:35
It's certainly not for prophets would consider a delay when they have submitted an invoice and they have not been paid.
Diana I. Ayala
0:44:40
Mhmm.
Molly Wasow Park
0:44:41
If we don't have the required backup to go with that, from our perspective, we are still working with the provider to make sure that we are getting there.
0:44:52
Prompt payment is really important, but so is that accountability and making sure that when we're here answering questions about audits and accountability that we have done everything that we need.
0:45:03
So we're looking to strike that balance and looking to make sure that we are getting it right as quickly as possible, but recognizing that the definition delay can sometimes be a little bit nuanced.
Adrienne E. Adams
0:45:17
So if the box isn't checked on the nonprofit side, then you're pushing it back and saying, well, okay.
0:45:21
When this isn't a delay as far as CSS is concerned because we've now pushed that
Molly Wasow Park
0:45:25
I'm I'm saying it is an issue that we need to resolve across the board, but, you know, we frequently see challenges where where we are not getting complete documentation or where we potentially haven't gotten bids for subcontractors.
0:45:42
It is our responsibility to make sure that that providers understand what they need to do and that they the process is as easy as possible for them to navigate.
0:45:51
But under city rules, we can't we're not allowed to make payments if we don't have all of that documentation or those bids.
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How does the Department of Social Services (DSS) ensure contract reimbursement rates keep pace with service provision costs?
