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PUBLIC TESTIMONY
Testimony by Gloria Kim, Director of Policy Research and Impact at Human Services Council
2:00:38
ยท
135 sec
Gloria Kim from the Human Services Council testifies about the challenges faced by nonprofit service providers due to delayed payments and contracting issues with the city. She emphasizes the critical need for MOCS funding to implement COLA and address the sector's financial strain.
- Highlights the backlog of pending contracting actions preventing providers from getting paid for services already rendered
- Expresses concern about Director Flores's resignation and its potential impact on the procurement process
- Calls for accountability in timely invoice payments and clearing the backlog of indirect and COLA contracting actions
Gloria Kim
2:00:38
Good afternoon chair one and members of the council committee on contracts.
2:00:42
My name is Gloria Kim and I'm the director of policy research and impact at the Human Services Council.
2:00:47
As Mox has testified previously, they're responsible for overseeing the city's procurement process and leading reform initiatives, but there are significant amount of pending contracting actions that are preventing providers from getting paid for services they have already provided.
2:01:03
This is unsustainable for the sector especially as they continuously deal with delayed procurement processes which further exacerbates the cash flow challenges that they face.
2:01:13
Also, MOCs plays a critical role in implementing the COLA so the lack of MOCs funding has a detrimental impact on the implementation process leading to workers not receiving the investment in a timely manner.
2:01:24
And at a time where so many nonprofits are facing financial issues and workers are reliant on this COLA, Funding for mocks is crucial to ensure that providers contracting needs are met and workers are compensated so that they can focus on providing services to their communities and now with the announcement of director Flores's resignation the sector is very concerned as to how this will impact the procurement process and further exacerbate the delays in payment.
2:01:50
So for too long nonprofits have incurred substantial costs for service delivery before they have a legal legal right to be paid.
2:01:57
So the sector is at a breaking point the city and its residents ultimately bear the brunt of these problems when highly qualified providers can't afford to take on city contracts or when those providers must close programs or go out of business altogether because of the financial strains imposed by the city's late payments.
2:02:14
And although the city previously cleared the backlog of more than $6,000,000,000 in unpaid contracts amendments, more needs to be done to support the sector.
2:02:23
The city needs to hold each agency accountable to pay invoices on time and clear the backlog of indirect and COLA contracting actions.
2:02:31
The sector has struggled for decades with the government procurement system to the detriment of the financial health of nonprofits.
2:02:38
And although the city has taken on a great effort in creating reforms to address procurement challenges that nonprofits face.
2:02:44
There are real and insurmountable financial hurdles that the current system has placed on providers which must be resolved so the sector can continue to deliver its programs.
2:02:53
Thank you.