City Non-Profit Contracting Task Force
Regular Meeting Agenda, Schedule and Location
REGULAR MEETING AGENDA
Wednesday, June 18, 2003
10:00 a.m. to 12:00 p.m.
City Hall, Room 421, 1 Dr. Carlton B. Goodlett Place
ORDER OF BUSINESS
3. CONSENT CALENDAR
3.1 Approval of the June 11, 2003 Minutes
4. REPORT OF THE CO-CHAIRS
5.1 Report from the Implementation Plan Report Committee.
5.2 Continue the below discussion from the June 4 Meeting regarding a new recommendation addressing cost-of-living adjustments and indirect costs.
The Controller’s representative distributed copies of A Guide for Nonprofit Organizations: Cost Principles and Procedures for Establishing Indirect Cost and Other Rates for Grants and Contracts with the Department of Health and human Services, U.S. Department of Health and Human Services, May 1983, OASBM-5, see Attachment B.
Federal funding sources for indirect cost recoveries requires cost allocation plans from non-profit contractors.
OMB A122 does not allow for indirect cost beyond the cost and scope of the contract.
Indirect cost rates do not fully cover the non-profit’s cost of doing business.
Where appropriate, some departments use general funds to increase the indirect cost rate.
The definitions and rates for indirect costs are unclear and inconsistent across City departments.
It would be difficult to establish a citywide indirect cost rate because of the nature of the funding sources and programs funded.
Departments should work towards consistent definition and rates for indirect cost across its divisions by funding source and programs.
Departments should also work to increase, standardize and provide flexibility of allocations to indirect cost.
For non-profit contracts, the funding source determines service units and total spending. Consequently, there is no leeway to compensate for increased indirect costs.
The issue of indirect cost is a subset of a larger issue related to cost of living adjustments.
While cost of living adjustments have been made to personnel salaries in non-profit contracts, other indirect operating costs including health benefits and worker’s compensation have not been similarly adjusted.
There has only been a 1% cost of living adjustment for non-profit contractors’ indirect operating cost in the past eight years.
Non-profit contractors should receive parity with City departments for cost of living adjustments for personnel salaries and other operating expenses.
City departments however suffer the same difficulty of not receiving any cost of living adjustments to their other operating expenses. Consequently, departments absorb the differences by reducing goods and/or services provided.
5.3 Oversight of implementation with timetable; Transitional Communication - “buy-in at top” by managers and “filter down” to staff.
6. DISCUSSION & POSSIBLE ACTION ITEMS: Monitoring Recommendations
6.1 Recommendation #11: Whenever possible, coordinate one joint program monitoring visit per year per contract by a lead City department. Departments will provide timely written notice of 14 days as well as a timely written report back within 30 days, if possible, but not beyond 90 days. Fiscal site visits should utilize other City department visits within a twelve-month period.
6.2 Recommendation #12: Develop standard monitoring protocol, language and definitions in advance with providers for purposes of improving contracts to be distributed at the time of contract extension.
6.3 Recommendation #15: Conduct risk assessment of programs or agencies by auditing or monitoring the agency in an appropriate fashion including but not limited to performance, financial stability, staff turnover, leadership, contract longevity, and audit findings with the goal of implementing tiered monitoring based on risks
6.4 Recommendation #5: Waive site-monitoring reviews if audits or site monitoring by other regulatory agencies address the department’s site monitoring review objectives.
6.5 Recommendation #4: Establish accounting principles for non-profits.
6.6 Recommendation #13: Provide training for monitors to ensure adequate knowledge and understanding of program and services prior to monitoring.
7. DISCUSSION & POSSIBLE ACTION ITEMS: Contracting Recommendations
7.1 Recommendation #6: Consolidate contracts, where appropriate, from various departments into a primary or lead department to administer the overall contract for a nonprofit.
Guidelines for identifying and consolidating contracts.
Criteria and protocol for assignment to primary/lead department.
Responsibilities of both primary/lead and supported departments.
7.2 Recommendation #7: Develop methods for streamlining contract approvals including: a) central depository of documents for compliance; b) on-line approval capability; and c) consolidation of documents. Consolidate contracts, where appropriate, from various depts. into a primary or lead department to administer the overall contract for a nonprofit.
7.3 Recommendation #2: Establish a procedure to acknowledge compliance status with basic City requirements for non-profit organizations.
7.4 Recommendation #10: Develop and process documents early in the cycle to assure timely payment for ongoing services. Continued from May 28 Meeting:
The award of a contract and certification of funds is necessary for timely payment. However, it is separate from the timely processing of invoices by departments for payments for work performed where funds have already been certified. Problems are compounded when non-profit contractors invoice for work performed and the contract has not been approved and/or funds have not been certified.
7.5 Recommendation #14: Coordinate Citywide response for agencies requiring technical assistance and create a formal methodology to identify technical resources within depts.
7.6 Recommendation #9: Create a review/appellate process for substantive changes to standardized requirements.
7.7 Recommendation #3. Ensure that contractual and grant requirements imposed on non-profits be the minimum requirements set by the funding source. Additional requirements should only be added by Board of Supervisors policy.
8. DISCUSSION & POSSIBLE ACTION ITEMS: Automation & Standardized Forms Recommendations:
8.1 Recommendation #8: Increase automation where possible.
8.2 Recommendation #16: Develop electronic submission for all reporting functions (programmatic and fiscal) to include electronic fund transfers.
8.3 Recommendation #17. Establish on-line (user-friendly) reporting forms with instructions for use.
8.4 Recommendation #18. Create a standard and simplified set of forms that: a) do not duplicate data from one section to another; b) are consistent, simplified, and non-duplicative; c) allows contractors to provide all needed data in a standardized format for all departments; and d) reflects the minimum requirements of the funding source.
11. NOTICE OF MEETING:
The Task Force’s Implementation Plan Report Committee meets every Thursday, from 2 p.m. to 4 p.m. in City Hall, 1 Dr. Carlton B. Goodlett Place, Room 82.
ADDITIONAL INFORMATION:
Please see the City No-Profit Contracting Task Force pages on the City’s web site at http://www.sfgov.org/site/npcontractingtf_index.asp, or
call Henny Lee at (415) 554-7036, or Bob Davis at (415) 554-7793.
KNOW YOUR RIGHTS UNDER THE SUNSHINE ORDINANCE:
Government's duty is to serve the public, reaching its decisions in full view of the public. Commissions, boards, councils and other agencies of the City and County exist to conduct the people's business. This ordinance assures that deliberations are conducted before the people and that City operations are open to the people's review. For more information on your rights under the Sunshine Ordinance (Chapter 67 of the San Francisco Administrative Code) or to report a violation of the ordinance, contact the Sunshine Ordinance Task Force. Copies of the Sunshine Ordinance can be obtained from the Clerk of the Sunshine Task Force, the San Francisco Public Library and on the City’s web site at www.sfgov.org/bdsupvrs/sunshine/ordinance. Or, obtain a free copy of the Sunshine Ordinance at the following address:
Donna Hall, Sunshine Ordinance Task Force Administrator
City Hall, Room 409, One Dr. Carlton B. Goodlett Place, San Francisco, CA 94102-4683
Office: (415) 554-7724, Fax: (415) 554-5163
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