Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Challenges faced by nonprofit providers in New York City
0:20:05
·
79 sec
Michael Sedillo acknowledges the difficulties faced by nonprofit providers in the past year, including payment delays and contract registration issues. He outlines four converging issues that have led to the current crisis in the nonprofit sector.
- Transition to the Passport system, replacing the legacy HHS accelerator system
- Implementation of cost of living adjustments, introducing new budget modifications
- Stretched resources due to COVID and the asylum seeker crisis, coupled with a city hiring freeze
- A culture of risk aversion among public servants due to potential audits
Michael Sedillo
0:20:05
And I wanna also start by acknowledging the truth that this past year has been incredibly difficult for our nonprofit providers.
0:20:11
Delays in payments and contract registrations paired with new technology and systems have tested the patience and solvency of even our most resilient providers.
0:20:20
We recognize this reality and we're acting urgently to turn the tide.
0:20:24
While payment delays to nonprofit providers have plagued our system for decades, the current crisis is the result of four converging issues.
0:20:31
One, the transition to Passport, which decommissioned the legacy HHS accelerator system, brought over 15,000 contracts and 30,000 budgets into a new platform.
0:20:40
Providers and agencies alike, have had to adapt to a new way of processing the nearly $20,000,000,000 in human services contracting.
0:20:48
Essential investments, like the $741,000,000 human services cost of living adjustment, introduced new budget modifications and contract amendments into an already stressed system.
0:20:58
After being on the front lines of COVID and the asylum seeker crisis, nonprofit providers and city staff have been stretched thin, and fiscal issues require the city to implement a hiring freeze even as contracting volume rose at certain agencies.
0:21:11
And a culture of risk aversion, where public servants have to make, have audits hanging over their heads.
0:21:18
I think this can limit creative solutions that allow them to provide our nonprofits the customer service that they deserve.