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Presentation to the National Council of Nonprofits Contracting Best Practices Task Force

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The National Council of Nonprofits convened a task force comprised of national experts on government contracting, including nonprofit CEOs and state officials. I was asked to present based on the work I've done to create and lead the PublicNonprofit Partnership Initiative in Illinois.

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Presentation to the National Council of Nonprofits Contracting Best Practices Task Force

  1. 1. The Public Nonprofit Partnership Initiative – creating meaningful reforms for Illinois nonprofits. National Council of Nonprofits – Best Practices Contracting Task Force June 27, 2013 Laurel O’Sullivan Vice President, Public Policy
  2. 2. Donors Forum A nonprofit membership association with 1200 nonprofits and foundations that advocates for a strong nonprofit sector in Illinois.
  3. 3. Illinois’ underinvestment Source: Ctr. Tax Budget Accountability
  4. 4. Setting the Vision To enhance and strengthen collaboration between nonprofits and government…
  5. 5. Exacerbated by the recession • #1 for late payments to NP contractors. (Urban Institute 2010) • Between 2008-2013 IL cut 4,000 employees. • $3 billion in human service program funding cut 2010- 2013. • Nonprofits continue to float state: currently owed $3.5 billion dollars
  6. 6. Our Approach • Phase I: Discovery & engagement 2009-2012 – Early & diverse stakeholder engagement – Defining the problem • Policy Forum I • Policy Forum II • Phase II: 2012-2015: policymaker outreach, communications & research. • Adaptive - focused on identifying strategic opportunities for collaboration • Evolving scope: systems focus
  7. 7. Defining the “System” •Streamlining nonprofit reporting and contracting •Transparency and accountability in budgeting reform •Improvements in timely and fair state payments to nonprofits
  8. 8. “Orange Book” Principles for Optimizing the Delivery of Human Services 8
  9. 9. Summary of Partnership Principles 1 • Comprehensive Planning 2 • Provider selection 3 • Contract renewal 4 • Payment 5 • Streamlined reporting & monitoring 6 • Communication across silos 9 This project is generously supported by the Wallance Foundation
  10. 10. A changing context requires fiscal and system reform
  11. 11. 11 Prompt Payment Task Force Capacity Reinvestments Contracting reform Budgeting for Results Need for Cross Coordination
  12. 12. Budgeting for Results Why we got involved Our evolving Role
  13. 13. The implementation of P.A. 96- 1141, and P.A. 97-0558 represent a collaborative effort between the Administration, the General Assembly and the network of Community Service Providers to streamline the complex and sometimes redundant business processes behind accreditation and licensure, contracting, auditing, monitor ing and reporting. The MIIC and the five State agencies are quickly identify and implementing a plan to eliminate duplicative business requirements or those that are inconsistent with the mandates of the Management Improvement Act.
  14. 14. The common goal is to prioritize efforts to streamline the complex and sometimes redundant business process behind: • accreditation/licensure, •contracting, •auditing, •monitoring and reporting requirements The Goal of the Management Improvement Initiative
  15. 15. Five State Agencies – More than Five Business Processes • There is redundancy in business process among the five State agencies, routinely imposing significant administrative burden on community service providers. • The redundancy causes significant administrative burden and waste, eroding service delivery by diverting resources, ultimately reducing the amount of services delivered to individuals and communities in need.
  16. 16. Current Contracts By the Numbers: 2012 # of Agreements • DHS: 4500 agreements • DPH: 2500 agreements • DCFS: 1100 agreements • Aging: 950 agreements • HFS: 100 (Medicaid Provider Agreements not included) # of Providers • DHS: Agreements with 1800 entities • DPH: Agreements with 1100 entities • DCFS: Agreements with 1000 entities • Aging: Agreements with 200 entities Multiple Contracts: 2012 Except for Aging, most agencies have one to two agreements with any one provider – 1.1 agreements with DCFS – 2.3 agreements with DPH – 2.5 agreements with DHS – 4.8 agreements with Aging 16 Contract Streamlining Context
  17. 17. 17 • Increased consistency in the content of contract terms in grant agreements with community providers • Increased uniformity in contract language in grant agreements with community providers • Increased standardization in contract format in grant agreements with community providers MIIC Contract Team Goals by 12/2014 for DoA, DCFS, HFS, DHS and DPH Three Components of Contracts Need to understand three components to identify reforms: – Form • Document structure, attachments, references, etc. – Content • Terms included, requirements, etc. – Process • Method of distribution, submission, etc.
  18. 18. Complex and redundant business process behind contracting, auditing, monitoring and reporting requirements for the five State agencies Redundant business processes drive costs up without adding value for either providers or the State agencies. Deemed Status – Accreditation Contract Boilerplates and Process Data/Documents in the Normal Course Deemed Status – Accreditation Contract Boilerplates and Process Data/Documents in the Normal Course Deemed Status – Accreditation Contract Boilerplates and Process Data/Documents in the Normal Course Deemed Status – Accreditation Contract Boilerplates and Process Data/Documents in the Normal Course Deemed Status – Accreditation Contract Boilerplates and Process Data/Documents in the Normal Course
  19. 19. A new, simplified, consistent and efficient business process for accreditation, contracting, moni toring and reporting requirements. Fully Operationalize Deemed Status Enrollment Accreditation Consistent Boilerplate Agreements for all five State Agencies Contract Execution Streamlined, user- friendly centralized budget reporting Budget Submission Other Reporting Financial / Other Reporting • ONE Business Process • Full implementation of Deemed Status • Standard contract boilerplates • Simplified monitoring • Simplified budget reporting
  20. 20. Future Considerations for Fiscal Reform Improving health of nonprofits in IL requires: More revenue /tax reform Addressing structural deficit Reversing history of disinvestments in delivery system
  21. 21. Key accomplishments • Established “system” as baseline approach for thinking of contracting reform. • Growing group of key policymakers see us as important ally. • Research report with recommendations on budgeting adopted by state. • Third party/loaned consultancy model as foundation for a Nonprofit Liaison • IL Comptroller Nonprofit Payment Task Force • Research database • Policy as key pillar of Donors Forum
  22. 22. FINAL REFLECTIONS:
  23. 23. Laurel O’Sullivan, V.P. Public Policy Questions? losullivan@donorsforum.org

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