Wednesday, August 3, 2011

Governor Orders Review of Executive Compensation at Nonprofits

From the Governor's Website

Albany, NY (August 3, 2011) Governor Andrew M. Cuomo today announced that he has created a new task force to investigate the executive and administrator compensation levels at not-for-profits that receive taxpayer support from the state. The task force will be led by the New York State Inspector General Ellen Biben, Secretary of State Cesar A. Perales, the Medicaid Inspector General Jim Cox, and the Superintendent of the Department of Financial Services Benjamin Lawsky.

"Not-for-profits that provide services to the poor and the needy have a special obligation to the taxpayers that support them. Executives at these not-for-profits should be using the taxpayer dollars they receive to help New Yorkers, not to line their own pockets. This task force will do a top-to-bottom review, not only to audit current compensation levels, but also to make recommendations for future rules to ensure taxpayer dollars are used to serve and support the people of this state, not pay for excessive salaries and compensation," Governor Cuomo said.

Governor Cuomo continued, "There is a whole range of compensation levels and extremes that have existed for too long and must be reviewed. The use of taxpayer dollars must be scrutinized at every level."

The Governor's task force will determine the protocol and scope of the investigation in order to target the audit to focus on ensuring that state taxpayer dollars meant to help and protect New Yorkers, particularly the poor and indigent, are going to that purpose and are not being diverted to compensation. It will also provide recommendations for State agency policies and procedures that will ensure that taxpayer dollars are not being diverted to excessive compensation.

Commissioners from the Department of Health, the Office of Mental Health, and OPWDD will also serve on the task force.

The Governor's action follows reports of startlingly excessive salaries and compensation packages for executives at not-for-profits that depended on state Medicaid funding through the Office of People With Developmental Disabilities (OPWDD) and other State agencies.

The State's Medicaid Inspector General has the authority necessary to exclude providers from participation in the Medicaid program if it is found that they have engaged in fraudulent or abusive practices.

There are currently no state rules governing executive and administrative compensation for not-for-profits that receive state support.

According to the Department of the Budget's January 2010 preliminary analysis of not-for-profit employees contracting with the mental hygiene agencies (Office of People With Developmental Disabilities, Office of Mental Health, and Office of Alcohol and Substance Abuse Services), there were approximately 1,926 employees with annual salaries greater than or equal to $100,000. The total value of their salaries was $324.6 million, with an average salary of $168,555.

NYCON Statement on Governor's
Review of Executive Compensation:

"NYCON supports IRS and state enforcement efforts to root out those relatively few and often large institutional nonprofits, especially in health care and higher education, where charitable resources are used for the private and personal gain of executives. Such abuses are a stain on the sector and the Governor is right, public trust is integral to the mission and work of our state's charities. The Internal Revenue Service already provides compensation guidelines as set forth in the federal tax code and we believe those guidelines should be upheld.

It needs to be emphasized, however, that these cases are very much the exception.

The vast majority of community-based nonprofit employees are doing hard and challenging work at compensation levels that are far below public employees and often the for-profit sector. It should also be noted that the phrase "taxpayer supported nonprofits" is misleading as the state government contracts to buy services from nonprofits, just as it contracts with the for-profit sector; except the nonprofit is often expected to unfairly perform at below the actual cost of doing business. Perhaps it is also time to order an extensive review of the executive compensation levels of "taxpayer supported for-profit businesses."

NYCON asks the Governor to take this opportunity to go beyond the immediate executive compensation issue and take a comprehensive look at how the state's overall regulatory and business relationship with the nonprofit sector can be improved in the interest of all concerned."

Doug Sauer, CEO, New York Council of Nonprofits, Inc.
http://www.nycon.org/
1-800-515-5012, ext 103
dsauer@nycon.org

Monday, August 1, 2011

Medicaid Reform in NYS

Pressconnects.com reported that Gov. Andrew Cuomo is working to reform Medicaid, the program developmentally disabled people and their families rely on to pay for most of their care.

As the state Office for People with Developmental Disabilities (OPWDD) works to overhaul its current service structure, the system is in a state of flux.

OPWDD's budget provides $4.3 billion to support state and non-profit operated programs for 2011-12, including about 39,000 community residential placement spots. That number is up 200 from the previous budget year because of continued efforts to transition people in institutions into more appropriate community placements, said agency spokeswoman Nicole A. Weinstein.

The budget reforms the financing of many OPWDD programs and services, and expands less-costly day and residential programs by 2,400 spots. At the same time, it reduces funding for local programs, which are primarily run by nonprofits, by 2.8 percent, or $63 million. However, Weinstein notes that's still $20 million more for local programs than was budgeted in 2009-2010.

Non-profit and state agencies who care for the disabled are considering how they'll cope with their reduced funding.

Caring for the disabled can be costly.

"New York State's cost per person, per day in Developmental Centers is $1,220; the average cost to run a State-operated individual residential alternative in Broome County that offers 24/7 supervised care is $227,000 per person, per year," Weinstein explained.

Some severely disabled people require one-on-one supervision -- sometimes more -- and others require physical or occupational therapy or other supports.

"They're asking us how you're going to take your cut," said Stephen Sano, executive director of the Handicapped Children's Association (HCA). "What do you want us to do, heat on the odd days? Stop serving dinner?"

ACHIEVE Executive Director Mary Jo Thorn said her agency was expecting to lose at least $110,000 through reduced funding, which could hit programs that give the disabled somewhere productive to spend their waking hours -- such as day habilitation and pre-vocational training -- as well as equipment purchases.

There is some money available, such as for supported apartments and intensive behavioral services, Sano noted. The idea is to keep individuals with their families until the state makes it through the budget crunch, or a crisis intervenes. Once that's over, more group homes may be on the horizon again, at least in theory.

Care for the developmentally disabled, and the funding mechanisms behind it, are expected to change significantly with the 1115 Medicaid waiver, now under development by the OPWDD and state Department of Health.

Dubbed "People First," the waiver is intended to lower health care costs for the 100,000 developmentally disabled residents enrolled in Medicaid, according to the National Association of State Directors of Developmental Disabilities. Eighty percent of them have been assessed as needing an institutional level of care, either through an intermediate care facility (ICF) or a nursing home.

During the first five years the waiver takes effect, the state plans to create community services for the 275 people now housed in four developmental centers, including Broome, who don't have specialized treatment needs. There are also preliminary plans to reduce the institutional population at state institutions to 300 over the five-year period from the 1,260 there now, according to the federal Centers for Medicare and Medicaid Services.

When it comes to funding, the waiver also would end the fee-for-service reimbursement system, and the state will work with CMS in the waiver's first year to ensure that per diem rates for group homes more closely reflect the actual cost of providing services, according to the association.

Community providers won't know the specifics until next year, Thorn said.

Read more here.

Thursday, July 21, 2011

Call for CPA Board Member Nominations

2011 Michael H. Urbach, CPA, Community Builders Award Now Accepting Nominations
Sponsored by the New York Council of Nonprofits (NYCON) and the New York State Society of Certified Public Accountants (NYSSCPA)

Submission Accepted through August 22nd, 2011

In recognition of the important role, talents and leadership that a Certified Public Accountant (CPA) in New York State can provide as a board member for community-based charities, NYCON and NYSSCPA are pleased to announce the 8th Annual Michael H. Urbach, CPA, Community Builders Award.

The award is named in honor of the late Michael H. Urbach, CPA, former partner of Urbach, Kahn and Werlin, former NYS Commissioner of Tax and Finance and Chair of the State Employees federated Appeal, and board leader of a number of charities.

Award Criteria & Submission

Candidates must:


  • Be a CPA in good standing and a member of the New York State Society of Certified Public Accountants;

  • Have served as an Officer on at least 3 different charitable 501(c)(3) community-based nonprofits with service as President/Chair at least once;

  • Have demonstrated exemplary board leadership resulting in significant and positive organizational impact including, but not limited to, financial turn-around, growth, and/or organizational re-structuring; and

  • Preference will be given to nominees whose board leadership accomplishments have been with community-based charities.





Deadline - August 22, 2011
Nominations addressing the candidate's qualifications must be received by August 22nd. Nominators are strongly encouraged to address the candidate's qualifications related to the four (4) criteria's mentioned above and to include at least three (3) letters of support from the charities who have benefited from the candidate's volunteer leadership.

Send seven (7) packets of nomination materials to:
Urbach Community Builders Award Committee
New York Council of Nonprofits
272 Broadway
Albany NY 12204
or email the packet to Melissa Currado, Executive Assistant to the CEO at mcurrado@nycon.org.


Announcement & Presentation
The 2011 award will be formally presented at the Annual Member Meeting of NYCON slated for the afternoon of October 6th at Mohonk Mountain House, New Paltz, New York.

The Luncheon will take place during CAMP FINANCE, a two-day retreat that provides the very best in knowledge, skill and strategy sessions for your staff and volunteer leaders.

In honor of the late Harold Mandel, a certified public accountant who worked for Urbach, Kahn & Werlin in Albany, NY and retired in West Palm Beach, FL, the 2011 Urbach Honoree has the privilege to award one (1) nonprofit executive of their choice a Camp Finance scholarship in Hal's name. In 2009, Mr. Mandel's family accepted a posthumous Michael H. Urbach, CPA Community Builders Award in his tribute.


Past Urbach Award Honorees
2010
Edward S. Mucenski, CPA of Potsdam
2009
Lewis "Lew" Kramer, CPA of Chappaqua
2008
Mel Zachter, CPA of Staten Island
2007
Eugene H. Fleishman, CPA of Poughkeepsie
2006
Craig Sickler, CPA from Kingston
2005
Paul Battaglia, CPA from Batavia

For More Information
visit NYCON at http://www.nycon.org/ or contact Melissa Currado at (800) 515-5012 or mcurrado@nycon.org

Wednesday, July 20, 2011

NYS Employers to receive bill for new fee related to Unemployment Insurance borrowing

Read below about the recent news about a new fee per employee for employers related to NYS Unemployment Insurance borrowing. As a nonprofit, there is another alternative, which you can learn about from NYCON:

Find Out if the Unemployment Savings Program for NYCON Members through First Nonprofits Companies can Save You Money.

Why pay a tax if you don’t have to? Many NYCON Members have switched from paying the state unemployment tax rates to First Nonprofit Unemployment Savings Program saving up to 60% of their unemployment costs annually. Find out if you can too. Take NYCON's FREE upcoming Beneft Spotlight: Unemployment Savings Program on August 23rd from 10 am to 11am. REGISTER HERE

A Big Bill for Employers
The Albany Times Union reported that Gov. Andrew Cuomo on Tuesday rolled out a sweeping plan to help revitalize the state's economy, complete with an ad campaign and competitive grant program designed to spark innovation.

But businesses have a more immediate concern: The bill is coming due for New York's unemployment insurance.

Citing the need to borrow more than $3 billion from the federal government to prop up its chronically empty account, the state faces a whopping $95 million interest payment on loans for the fund due Sept. 30.

As a result, the state Department of Labor is assessing businesses up to $21.25 per employee to cover the cost. That payment is due Aug. 15.

Complaints about what businesses describe as a hidden tax were rolling in Tuesday after numerous employers received the notices and as Cuomo expounded on his plans for the economy.

"This is something that could -- depending on the number of employees -- be a pretty hefty cost in this economy," said Mike Durant, New York state director for the National Federation of Independent Businesses.

When asked about the surcharge during a news conference outlining his revitalization plans, Cuomo stressed that the bill for interest is ultimately coming from Washington, D.C.

"It's a federal decision whether or not they'll waive the interest payments. I hope that they do," he said, adding that his office was pushing the state's congressional delegation on the issue.

The hefty tab illustrates what can happen as the federal stimulus program, enacted shortly after the recession started in 2008, runs out.

The Department of Labor noted that the stimulus program provided no-interest loans to the states in 2009 and 2010, but not this year.

Read more: http://www.timesunion.com/local/article/A-big-bill-for-your-boss-1472786.php#ixzz1SetH4Zip

Tuesday, July 19, 2011

Non Profit to Shut DownBy Lindsay Nielsen

WBNG reported that after nearly seventy years a local non profit is shutting it's doors.

The Sheltered Workshop for the Disabled employs the able and disabled.

The Sheltered Workshop for the Disabled made the decision last year that it would have no choice but to close it's doors.

"What drove it was the fact that we lost a major customer which represented about sixty percent of our manufacturing business and we weren't able to replace it as quickly as we needed to and although we tried we just couldn't," says CFO and General Manager, Louis Harasymczuk.

The non profit provides employment opportunities and services to the disabled.

About 90 people are employed in jobs from manufacturing cable assemblies, packaging, and kitting.

"At the height of our organization we had close to four hundred employees so like I said earlier we put a lot of food on a lot of tables over the years so we had a very large payroll that's basically going to go away," says Harasymczuk.

The non profit is set to close in September, but company officials are working hard to make sure employees have somewhere else to go.

"We will do everything we can to ensure that the disabled consumers and clients continue to receive services in the community. We are working with the State, New York State agencies to ensure that happening," says Harasymczuk.

That includes its services to disabled individuals who work at others businesses in the community.

SWS provided job coaching and support.

"You see the smile on the faces of people that they're so happy to be in a work environment," says Harasymczuk.

Some disabled employees have already secured other jobs and SWS is committed to making sure all those it serves are not left behind.

A sister company of the non profit, Able Industries, which also employs disabled individuals will also be closed.

The Sheltered Workshop sold its remaining manufacturing contracts to VMR Electronics.

Thursday, July 14, 2011

A.G. Schneiderman Picks Binghamton Leader for Nonprofit Reform Committee

Binghamton, N.Y. WBNG Binghamton
-- Attorney General Eric T. Schneiderman on Wednesday announced the appointment of Sharon Ball to serve on his Leadership Committee for Nonprofit Revitalization.

Ball, the Executive Director of the Broome County Arts Council in Binghamton, is one of 29 leaders Schneiderman has charged with providing recommendations to improve nonprofit regulation and enforcement in New York.
"I am pleased Sharon will serve with her colleagues across the state to reform the rules of the road so the nonprofit sector can thrive,” Schneiderman said. “Nonprofits provide critical services to their communities and as the second largest employment sector in the state, their success is crucial to our economy. We can be tough on policing fraud without imposing needless burdens and costs on this vital sector, and the Leadership Committee is a central part of achieving those goals.”

The Attorney General oversees nonprofits operating in New York State, and Schneiderman has made the improvement of nonprofit regulation a priority for his office.
Earlier this year, he announced he would convene a group of leaders from New York’s nonprofit, business and labor communities to help eliminate unnecessary bureaucracy that has long plagued nonprofits, such as redundant audits and overlapping reporting requirements, and delays in processing and payment of contracts. The nonprofit sector is the second largest employment sector in the state, providing work for between 17 and 18 percent of New York’s labor force.
“The current regulations can be confusing and burdensome, forcing nonprofits to commit resources they would otherwise spend serving their communities,” Ball said. “Attorney General Schneiderman is taking a much-needed step in the direction of reform by bringing together leaders to modernize the system so nonprofits can thrive.”

Ball has been the Executive Director of the Broome County Arts Council since 2004, where she has overseen the organization’s fundraising and grant making activities, member services, advocacy and programs. She is the primary fundraiser for and manager of the Arts Council’s United Cultural Fund, one of only about 60 active campaigns for the arts in the United States.
As a radio journalist for more than 20 years, Ball established NPR's first cultural news desk to cover the arts, religion, media, and race relations in Washington, D.C. Ball’s notable honors include a Case Media Fellowship at Harvard University and appointment as Senior Scholar by the Fetzer Institute of Kalamazoo, Michigan.
The Leadership Committee’s activities will focus on the following:

• Making recommendations on how to reduce regulatory burdens and more effectively address regulatory concerns;

• Developing legislative proposals to modernize New York's nonprofit laws that would eliminate outdated requirements and unnecessary burdens; and

• Proposing measures to enhance board governance and effectiveness, including through new programs to recruit and train nonprofit board members.

Thursday, June 30, 2011

Attorney general appoints public integrity officer for Binghamton office

Pressconnects reported that a public integrity officer has been appointed for Binghamton office by the Attorney general.

BINGHAMTON -- Do you know of any public corruption in the Southern Tier?

If so, the state Attorney General's office wants to hear from you.

Attorney General Eric T. Schneiderman has appointed Michael Danaher, Jr., of Binghamton, as public integrity officer to serve in the AG's Binghamton regional office.

This gives taxpayers a place to go to report complaints of government corruption without fear of local politics influencing the outcome, according to Schneiderman's office.

"When it comes to combating local public corruption, the people of Binghamton deserve a dedicated 'cop on the beat.' Having a public integrity officer here will go a long way to root out corruption and address the concerns of Southern Tier taxpayers," Schneiderman said in a statement

Read more here