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AGENCY TESTIMONY
Context of nonprofit executive compensation in shelter providers
0:17:30
·
37 sec
Commissioner Park provides context for nonprofit executive compensation in relation to the DOI report, explaining the limitations and complexities involved in overseeing these salaries.
- DSS does not directly pay nonprofit executive salaries; they are considered an overhead cost paid from the provider's indirect rate.
- The indirect cost reimbursement covers central staff costs, office space, and supplies.
- Some providers have operations beyond DSS contracts, limiting the agency's ability to issue unilateral directives on executive compensation.
- The Commissioner highlights the need to consider the broader context of nonprofit operations when discussing executive salaries.
Molly Wasow Park
0:17:30
For instance, in discussing nonprofit executive salaries, two points are particularly salient.
0:17:35
First, DSS does not directly pay not for profit executive salaries.
0:17:40
Agency leadership is considered an overhead cost that is paid out of the provider's indirect rate.
0:17:45
That indirect cost reimbursement goes towards central staff cost as well as other costs like office space and supplies.
0:17:52
2nd, some providers may have operations that extend well beyond the contracts they hold with DSS, which means the agency cannot issue unilateral directives on executive compensation.
0:18:03
The DOI report also failed to take account of New York state's shared role in oversight and enforcement.