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Q&A
Discussion on adopting state-like payment models for city contracts
2:03:14
·
142 sec
Council Member Brewer inquires about the possibility of the city adopting a payment model similar to the state, where nonprofits receive full funding upfront. City officials explain the challenges in implementing such a model due to different oversight bodies and risk management concerns.
- The state model involves 100% upfront payment with subsequent audits
- City officials acknowledge interest in exploring this model but note it would be a 'paradigm shift'
- Constraints include oversight from Department of Investigation, Mayor's Office of Risk Management and Compliance, Law Department, and Comptroller
Gale A. Brewer
2:03:14
The nonprofits tell me that on the state level, they get 100% of the money up front.
2:03:20
And then the state audits them, and if they owe money, then they get taken from future payments.
2:03:26
What prevents the city from doing the same thing?
2:03:28
Is it the charter?
2:03:30
Is it OMB?
2:03:31
Who says we can't do it like that?
2:03:36
And can we change it?
2:04:00
I know.
2:04:14
take care of the Comptroller.
2:04:34
are issues.
2:04:35
But how could we do it?
2:04:36
What's the mechanism for doing that?
2:04:54
Go ahead.
Kim Yu
2:03:38
Thank you council member Brewer.
2:03:40
Sorry to hear that you have laryngitis.
2:03:45
that is we we we do have our eyes on that model.
2:03:50
It is a model When can we switch it?
2:03:54
There are some constraints that we have as the city that we're just different than the state.
2:04:01
We've got our oversight bodies, Department of Investigation, the Mayor's Office of Risk Management and Compliance, and the Law Department, and also our Comptroller.
2:04:13
We can
2:04:15
Okay.
2:04:17
So, that model is that's a paradigm shift for the city of New York.
2:04:24
That is really going all in, really trusting, and then kicking the can down the road on the risk to claw back if there
2:04:39
It's something that we have been exploring and trying to pilot and we have a small team that thinks through innovation on surveying what's out there in terms of practices that we can adopt.
Nadia Swanson
2:03:41
I'll live.
2:03:42
Okay.
2:03:43
So
Michael Sedillo
2:04:54
Yeah and I'll jump in.
2:04:56
We've been doing a little research ourselves and Me too.
2:05:01
I know you and I know that to be true.
2:05:04
The model that I'm familiar with from the state is and I get the state acronyms wrong often, OCFS if that's what it is.
2:05:12
What I understand is not a % advanced.
2:05:15
It is a quarterly advanced system where they get 25, 20 five percent, 20 five percent.
2:05:21
I think that is something that we are interested in exploring, and as director Yu says, would be a paradigm shift.
2:05:27
And, I I am not I'm a lowly staffer.
2:05:31
I don't know the mechanisms to make that happen, but I think we've explored it and it's possible.
2:05:35
Thank