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Q&A
Addressing unpaid indirect cost rates above 10%
2:39:37
·
67 sec
Council Member Julie Won raises concerns about unpaid indirect cost rates above 10% over the past five years, with some nonprofits waiting for over $10 million in unpaid funds.
- Michael Sedillo acknowledges the issue and mentions a directive issued to all agencies
- The directive clarifies that honoring accepted indirect cost rates is not optional
- Agencies are instructed to apply existing rates until new ones are established
- The allowance clause is suggested as a tool to avoid amendment registration processes
Julie Won
2:39:37
Can you also help me understand why have indirect cost rates above 10% not been paid over the last five years and why there are so many barriers in getting the funding out?
2:39:46
Some nonprofits are waiting for over $10,000,000 in unpaid indirect cost rate funds.
Michael Sedillo
2:39:56
I would just say, as mentioned to council member Lee earlier, here have heard this as well, which is why what we decided to do is put that directive together with OMB and MOX out to all agencies to make sure they were clear that this is not an option, that if there's an accepted rate, that must be and will be honored, and again to those that are about to expire that those are the ones that should be applied until a new one may be realized in the coming months.
2:40:26
So it's something that I constantly have heard.
2:40:29
We use the policy tools in our toolbox to ensure that agencies are standardized there, and I think that the allowance clause, as we mentioned earlier, really ought to be and we can continue to work with agencies to make sure they understand that it is an option to them to avoid an amendment registration process.