New Opportunities Inc., a Waterbury nonprofit, will continue to provide crucial public services in dozens of communities despite a scathing forensic audit documenting the misdirection of funding under previous leadership.

State Oversight

The state of Connecticut has decided not to terminate its contract with the nonprofit, instead imposing conditions such as closer oversight and the departure of its previous chief executive officer. Andrea Barton Reeves, the commissioner of social services, stated that the decision was made to ensure that the people served by the organization would not be left without services.

Joshua Wojcik, the state’s top budget official, said that the state is standing by its decision to fix the nonprofit and better safeguard public dollars. The forensic audit, which was commissioned by the state at a cost of $301,000, found that $2.9 million in energy funds were used for other expenses to keep the agency afloat.

Financial Irregularities

The audit also found that the nonprofit’s financial problems were exacerbated by $1.45 million in losses incurred by Connecticut Food 4 Thought, a hydroponic food producer and a wholly owned entity. Funding from the nonprofit’s childcare program was also used to cover losses incurred by other programs.

Stephanie E. Cummings, the nonprofit’s lawyer, issued a statement saying that the organization has implemented major leadership changes and streamlined administration oversight to secure its financial sustainability. The state has referred the audit’s findings to the attorney general’s office and state prosecutors for review.

Original reporting: The Connecticut Mirror — read the source article.