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Q&A
Council Member Julie Won questions city officials on nonprofit payment processes and data
2:15:59
·
3 min
Council Member Julie Won engages in a discussion with Kim Yu from the Mayor's Office of Contract Services about the city's processes for payments to nonprofits. Won requests data on "clawbacks" from nonprofits and questions the fear surrounding advance payments. She also inquires about the breakdown of a $5.8 billion allocation for nonprofit vendors.
- Won emphasizes the need for concrete data to justify current procurement practices, suggesting that outdated fears may be influencing current policies.
- Yu explains the ideal contract process and acknowledges the challenges faced by nonprofits working without registered contracts.
- The discussion highlights the complexity of the city's payment systems and the need for more transparency in financial processes related to nonprofit contracts.
Julie Won
2:15:59
I think to the council members point, do you have reports on how often every fiscal year you're quote unquote clawing back from nonprofits who have caused issues for the city so that we can look at it on a pattern and trend within the last ten years on why there is this over looming fear which we typically on the council side are not privy to.
2:16:24
So we want to understand like where is this coming from and can you substantiate it?
2:18:04
Okay, so can we get an actual report from the last ten years of when this accounting had to happen for nonprofits citywide that there is this over looming fear that if you pay them that you're gonna have to get the money back somehow?
2:18:20
Because from our knowledge it does not happen often.
2:18:23
So we'd like to understand.
2:18:33
to.
2:18:34
Okay, even five years, even three years.
2:18:36
Four years.
2:18:37
Four years, anything.
2:18:38
We cannot be working off of assumptions based on fears that were legislated ten, fifteen years ago for procurement rules from like mafia days or whatever it may be.
2:18:49
We cannot operate like this anymore.
2:18:51
And were you able to get a breakdown of the 5,800,000,000.0 that are subtotals for the nonprofit vendors and human service providers?
2:19:11
Okay, I'm gonna pass it to council member Rita Joseph and then I'll come back to questions.
Kim Yu
2:16:28
Sure, I can try.
2:16:31
So big picture, ideal state, contractors registered on time, and that's when the services start to be rendered.
2:16:43
We know that not to be true.
2:16:45
We know that our vendors are working at risk.
2:16:48
We know that they are going out of pocket with their own funds and putting their team out there providing services when they are already maybe potentially vulnerable as an organization and operationally.
2:17:04
I want to say it out loud and acknowledge it.
2:17:08
Going back to how it should work.
2:17:10
Contract is registered, services are rendered, provider provides an invoice, city pays.
2:17:18
That's overly simplistic and that's not happening.
2:17:23
But there are a variety of tools and mechanisms such as the advance that we once contract is registered, money gets pushed out the door.
2:17:35
And then also if there happens to be a delay in registration, there's the loan fund that's available.
2:17:40
We've we've talked about that.
2:17:42
But but to your point, council member one and council member Stevens, when we say clawback, I wanna and the finance people will say this better than I can say.
2:17:53
It's not taking money out of the pocket of the provider.
2:17:58
It really is from a budgeting and invoicing perspective and accounting that has to be done.
2:18:25
Councilmember, we're happy to take this offline and really dig in.
2:18:29
I will say ten years may be tricky for us to go back
2:18:59
So that 5,000,000,000 is entirely nonprofit.
2:19:03
Okay.
2:19:04
And if we can we can provide a better breakdown at the conclusion of the hearing or after the hearing.