Thursday, June 19, 2014

Report Shows Increase in Late Payments for NYS Contracts

Comptroller DiNapoli: Increase in Late Contracts with Nonprofits Impacts Those in Need  
In one of our recent newsletters we reported on Urban Institute's National Study on prompt contracting, which ranked New York State within the "Top Ten Worst" in Nonprofit contracting and payments.
Just this week, NYS Comptroller Thomas P. DiNapoli released a report with additional data proving, unfortunately, what we already suspected. New York State is getting worse at paying nonprofits what they are owed for services.

Key Findings: 
·         State agencies were late 87% of the time in approving contracts with nonprofit providers in 2013.This is an increase from 2012, when 78 percent of contracts were approved late.
·         Late approvals prompted interest payments, mandated under the Prompt Contracting Law, which cost the state $185,519. The bulk of the interest was paid by four agencies as seen in the below table: 
 % of NYS Interest Paid
Department of Health
Division of Criminal Justice Services
Office of Children and Family Services
State Education Department

"Every day, New Yorkers rely on not-for-profits to care for their children, improve their health, get housing and much more,"DiNapoli said. "Simply put, the state can't provide all of these basic services without the help of not-for-profit organizations. And when contracts and payments are late, it hurts people and providers, costing the state taxpayer dollars in interest payments

"We applaud Comptroller DiNapoli for tracking and highlighting this problem year after year,"said Doug Sauer, chief executive officer of the New York Council of Nonprofits Inc. "Unfortunately, facts do not create policy, they only inform it. The state of New York, despite best intentions, has taken its eye off the ball."  

Although there have been multiple attempts to fix the system, such as the NYS Grants Gateway, little has made any real substantial changes to improve the system. The Comptroller's report recommends that state agencies:
·         Make prompt contracting a priority to reduce costs to the state and nonprofits
·         Pay prompt contracting interest with the first payment due after the start of a late contract
·         Re-align contract start dates to reflect the time required for the procurement process. 
To download the Full Report click here, for a breakdown by nonprofit, region, and length of days for approval click here.

Want more information?
Please contact our Policy & Program Associate, Amber Vanderwarker.

Download the Prompt Contracting Annual Report 

Click here to download the Full Report, and click here for a breakdown by nonprofit, region, and length of days for approval.  

Updated on Prompt Payment Legislation:

It may be late in the legislative session, but you can still help us pass  A.9599/ S.7340.

It's passed in the Assembly, but has not moved in the Senate.

Send an email or call chairman Michael Ranzenhofer's office today to move the bill.  
NYCON News & Resources

No comments: