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AGENCY TESTIMONY
Recent improvements and initiatives to support nonprofit providers
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165 sec
Michael Sedillo outlines several recent improvements and initiatives implemented by the city to address the challenges faced by nonprofit providers. These measures aim to reduce bottlenecks, streamline processes, and provide financial support.
- Announcement of $5 billion in advance payments for fiscal year 2026
- Exemption of human service contracting positions from the hiring freeze
- Implementation of a $741 million cost of living adjustment for human service workers
- Introduction of multi-year vehicle for discretionary contracts, reducing processing time
- Offering of interest-free loans through the Fund for the City of New York
- Implementation of a 25% allowance clause to reduce amendment processing
- Initiatives to address invoice and retroactive contract backlogs
- Directive for partial payments to expedite the payment process
Michael Sedillo
0:21:25
However, there are reasons for optimism.
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Since the successful Clear the Backlog initiative in the first months of the Adams administration, we have made significant strides to reduce bottlenecks, hack through bureaucracy, and get non profits paid.
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Yesterday, mayor mayor Adams also announced that for the first time in city history, nonprofit providers will receive over $5,000,000,000 in advance payments in fiscal year twenty twenty six, an unprecedented amount, which is up from 2,800,000,000.0 in initial advances issued this fiscal year.
0:22:00
Earlier this fiscal year, OMB exempted from the hiring freeze agency positions that are involved in human service contracting.
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To date, over a 83 positions have been unlocked, which is 90% of all positions sent to OMB for exemption.
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And last year, after advocacy of, years of advocacy from leaders in the nonprofit sector, the administration announced a $741,000,000 cost of living adjustment for human service workers.
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Two years ago, we worked with our partners in the city council and comptroller's office to establish the multi year vehicle for discretionary contracts.
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This dropped the average time to process discretionary contracts making use of this reform from three hundred and sixty six days in FY24 to just forty six days in FY25, a nearly 90% reduction slashing nearly eleven months of delays.
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We would love to be even more bold in this space by giving agencies the ability to process these council designated contracts as grants, and we're excited by the renewed interest from our partners in the council about this reform.
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Through MOCs, and the fund for the city of New York, the city offers an interest in service free loan to human service providers contracting with the city.
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And in f y twenty three, MOCs implemented an allowance clause of 25% across human services contracts, which was meant to address the administrative burden of processing amendments for anticipated budgetary changes such as the COLAs, indirect cost rate increases, and other funding initiatives.
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Agencies can use the allowance in lieu of an amendment, and as a result, non extension amendment registration decreased by 67% after implementation of the allowance clause.
0:23:34
Mocs and other public servants have not let their foot the gas, and over the past six months, MOCs has led two sprints to address an invoice and retroactive contract backlog, and through these efforts, agencies unlocked a billion dollars in outstanding invoices and over $700,000,000 in retroactive contracts.
0:23:50
And in December, MOX also issued a partial payment directive to agencies to get payments out faster, indicating that payments on approved portions of invoices can occur and disputes can be worked out separately.
0:24:00
And just last month, MOX and OMB issued another directive to make clear to agencies that the city will honor accepted ICR rates, a common concern we hear from nonprofit providers.