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PUBLIC TESTIMONY
Testimony by Faith Behum, Manager of Government and External Relations at UJA Federation of New York, on Late Payments to Human Service Providers
3:41:20
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130 sec
Faith Behum from UJA Federation of New York testified about the impact of delayed payments on nonprofit organizations in their network. She highlighted issues with contract registration, budget approvals, and invoice processing, particularly with the Department of Youth and Community Development (DYCD).
- UJA Federation supports a network of nearly 100 nonprofits, allocating over $185 million annually to address community needs in New York City, Westchester, and Long Island.
- Behum provided specific examples of agencies owed over $1 million in unpaid invoices and unregistered contracts.
- She also mentioned challenges with the implementation of the Indirect Cost Rate (ICR) funding, with nonprofits still awaiting funds from fiscal years 2023 through 2025.
Faith Behum
3:41:20
Thank you Chairpersons Juan Stevens and members of the committees on Contracts with Children and Youth for holding this oversight hearing and for the opportunity to submit testimony.
3:41:29
My name is Faith Baum.
3:41:31
I'm a manager of government and external relations at UJA Federation of New York.
3:41:35
Established more than one hundred years ago, UJA Federation is one of the nation's largest local philanthropies.
3:41:41
Central UGA's mission is to care for those in need, identifying and meeting the needs of New Yorkers of all backgrounds and Jews everywhere.
3:41:49
UGA supports an expansive network of nearly 100 nonprofit organizations serving the most vulnerable and allocates over 185,000,000 annually to address the needs of communities across New York City, Westchester, and Long Island.
3:42:01
UGA's nonprofit partners host some of the largest social services programs in the city, including but not limited to summer youth employment programs, summer rising programs, kosher food pantries, supports for holocaust survivors, and older adult centers.
3:42:16
Nonprofits in UGA's networks have experienced delayed payments from several city agencies, including New York City Public Schools and Department of Youth and Community Development.
3:42:25
Recently DYCD has been the worst offender struggling to register contracts and approve budgets and invoices resulting in delayed payments to non profits.
3:42:34
This is a very small sampling but recently I was told by one agency they stated as of late April twenty twenty five their DYCD fiscal year twenty five discretionary contracts which amount to over $1,400,000 are either partially registered or not officially registered.
3:42:49
Another agency is owed over $1,000,000 from between unpaid invoices from fiscal year twenty twenty four and 2025 stating DYCD's process for approving budgets and invoices takes too long to complete.
3:43:07
Nonprofits have also struggled to benefit from the indirect cost rate funding.
3:43:11
In January 2025, nonprofits were asked to begin gathering information needed to receive the ICR in fiscal year twenty twenty six.
3:43:18
Meanwhile, they still did not receive the funding for the ICR from fiscal year twenty three through '25.
3:43:24
We thank the members of the City Council for recognizing how late payments impact human services providers and the programs they offer to their communities.