Your guide to NYC's public proceedings.
Q&A
Explanation of capital eligibility requirements and ineligible spending
1:15:39
·
4 min
Commissioner Matthew C. Fraser and Deputy Commissioner Edwin Pemberton explained capital eligibility requirements and ineligible spending in relation to OTI's budget.
- Capital eligibility is determined by Directive 10, which sets forth program requirements
- Programs must have a useful life of 3-5 years to be capital eligible
- The additional $32.6 million in FY25 is for expense money associated with capital projects
- This funding covers maintenance and support for programs like 311 upgrades, which are not capital eligible after initial implementation
- Baseline funding is provided for ongoing maintenance and support of delivered capital projects
Jennifer Gutiérrez
1:15:39
Okay.
1:15:40
That's clear.
1:15:40
Thank you.
1:15:52
Oh, I wanted to actually, me get let me get back to that.
1:15:55
On I have a question about new needs funding about the capital ex capital project.
1:16:04
Let me see.
1:16:05
The preliminary plan added an additional city funding of 32,600,000.0 in f y twenty five.
1:16:11
This budget line has been added to OTI's budget in the last few financial plans for capital ineligible spending.
1:16:18
Can you share what makes a project capital ineligible?
Matthew C. Fraser
1:16:23
So New York City control has a directive 10.
1:16:28
Directive 10 establishes what capital eligibility requirements are.
1:16:33
And based on directive 10, the office of management and budget evaluates programs to see if they align to the capital requirements.
1:16:40
Programs are then provided to the programs are then, after evaluated by OMB for capital eligibility, are funded based on the specific portions of a program that may be capital eligible.
1:16:55
So capital ineligibility may mean that
Jennifer Gutiérrez
1:16:58
The weird arrangement of words.
1:17:00
It just it just strikes me as like a weird
Matthew C. Fraser
1:17:03
phrase.
1:17:04
Eligibility Keep
Jennifer Gutiérrez
1:17:04
it simple for me, please.
Matthew C. Fraser
1:17:06
Yeah.
1:17:06
Sure.
1:17:06
Sure.
1:17:06
Sure.
1:17:07
Capital eligibility requirements basically means that following directive 10, you have a set of programs that a directive five?
1:17:20
Yeah.
1:17:21
Yes.
1:17:22
I saw yeah.
1:17:23
So yeah.
1:17:25
Yeah.
1:17:25
So direct of 10, which sets forth a set of program requirements that basically determine whether a program is capitally eligible.
1:17:33
That means that the program has to have a useful life depending if it's technology of three to five years depending on the type.
1:17:41
If you're looking at things like tablets, if the tablets aren't affixed to something that's capitally eligible, then the tablets themselves are not capitally eligible.
1:17:51
If the program has any sort of annual recurring maintenance, maintenance is not capitally eligible because anything purchased with the capital funds has to be have a useful life of three to five years.
1:18:04
So the eligibility requirements are are fairly wouldn't use the word complex, but they're they're the it's it's it yeah.
Jennifer Gutiérrez
1:18:14
I'm I'm familiar with them.
1:18:16
I'm sorry.
1:18:16
Was just I've never capital and it just struck me that it was worded in in this way.
1:18:21
So does this mean that the funding can also pay for personnel personnel associated with capital projects?
Matthew C. Fraser
1:18:27
Yeah.
1:18:28
Depending on the depending on the scope of the arrangement.
1:18:32
So what could happen is you could develop a program.
1:18:35
As part of that, you have consulting services.
Jennifer Gutiérrez
1:18:37
Mhmm.
Matthew C. Fraser
1:18:37
Those consulting services could be used to deliver application or a service that has a useful life of greater than five years as long as from the time that that service is concluded, the life past that point is five years.
1:18:51
So it could conceivably include personnel.
Jennifer Gutiérrez
1:18:53
Sure.
1:18:53
Thank you.
1:18:54
And then so the the addition of 32,600,000.0 in f y twenty five, can you share what amount of headcount that covers then?
Matthew C. Fraser
1:19:04
I would defer to our deputy commissioner of management.
Gale Brewer
1:19:07
Thank
Jennifer Gutiérrez
1:19:07
you.
1:19:08
If you have the titles?
Edwin Pemberton
1:19:12
The 32,600,000.0 was related to actual expense money that's associated with capital projects for a couple of divisions that we had approvals from OMB, three one one infrastructure management, applications, and cyber command.
1:19:30
So so there's no headcount.
1:19:31
This is all expense money for the associated expense of a capital project.
Jennifer Gutiérrez
1:19:36
Right.
1:19:36
But expense could cover personnel.
1:19:38
This doesn't cover personnel?
Edwin Pemberton
1:19:39
No.
1:19:39
The the right.
1:19:40
This is just covering the actual maintenance of these programs.
Matthew C. Fraser
1:19:46
Yep.
1:19:46
So a lot of times after a project is delivered, let's say for the three one one upgrades, which council member Holden loves.
1:19:55
Yep.
1:19:57
When it comes to annual maintenance on those licenses, the annual maintenance and licenses and the support is not capitally eligible.
Gale Brewer
1:20:04
Mhmm.
Matthew C. Fraser
1:20:04
So what happens during the first phase is OMB will fund the capital side of the program saying that you can deliver the program.
1:20:11
Once the program is fully delivered, then you come back and you say, need funding to maintain the service lines associated with it, and that funding is provided post delivery of the capital part of the project.
Jennifer Gutiérrez
1:20:24
Okay.
1:20:24
Okay.
1:20:25
I have a couple questions about the child care programs map, but if you can just keep it short because I I think we we can certainly make time to dig into them a little deeper.
1:20:35
I'm with you.
1:20:36
Sorry?
Matthew C. Fraser
1:20:36
I'm with you.
1:20:37
I'm with you.