New York City has a backlog of unpaid invoices from nonprofits providing critical social services totaling over $1 billion.
The New York Times reported on a city comptroller analysis of delayed payments to New York City’s human services contractors that totals over $1 billion. Volunteers of America-Greater is owed $32 million in unpaid expenses for critical social services dating as far back as 2017, reports journalist Andy Newman.
According to the article, the city has the money to pay past invoices but is plagued by delays throughout the entire payment process. The Department of Homeless Services is the slowest to pay, averaging 82 days old.
In order to keep afloat, some nonprofits borrow money and incur hefty annual interest rates — racking up debt. Some organizations have had to shut down due to late payments.
City officials have proposed some fixes including making partial invoice payments a standard practice and addressing challenges with the new payment system.
Read the full article at The New York Times.