The Soapbox and Toolbox for New York State's Nonprofits

June 14, 2016

New York Prompt Contracting Sees Slight Improvement

From the National Council of Nonprofits "Nonprofit Advocacy Matters" newsletter...

The on-time record for New York State agencies complying with prompt contracting laws improved slightly last year, but areas of concern remain, according to the annual prompt contracting report from the New York State Comptroller. Government contracts with nonprofits were completed past the statutory deadline 61 percent of the time in 2015, down from 77 percent in 2014. The total number of contracts subject to the law declined by 798, due in part to the increase in multi-year contracts that did not need annual renewal. The Comptroller found that improvements are not being accomplished across the board; half of all agencies reported contracts as late 90 to 100 percent of the time in 2015. Another disturbing finding was that only 22 percent of eligible contracts received interest for late payments in 2015, down from 32 percent in 2014. Noting the financial hardship that late contracts cause for nonprofits providing vital services, the report makes clear that there is still a good deal of work to be done.

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