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Anti-Poverty Non-Profit Declares Bankruptcy
Wisconsin lawmakers are going to look at the state’s entire poverty fighting network after one Green Bay non-profit spent large and went bankrupt.
The legislature’s Joint Audit Committee on Tuesday ordered an audit of the WISCAP network.
WISCAP bills itself as "network of poverty fighting agencies."
State Sen. Eric Wimberger, R-Gillett, said the legislature needs to examine the network after WISCAP agency Newcap paid its now-former CEO nearly $240,000 last year, then promptly declared bankruptcy.
"“Programs that accept taxpayer dollars to carry out their mission also accept a higher level of oversight to ensure they are compliant in carrying out their intended work. When taxpayer funding is mishandled, it’s critical that we get to the bottom of it and bring an end to the waste," Wimberger said.
Wimberg made a point Tuesday to point out that Newcap's spending didn't trigger any red flags with state regulators, or prompt any official questions.
“Was it calculated these types of expenditures or are we just looking at the things that you were dealing with were authorized and then kind of turning a blind eye to the overall fiscal stability of that organization?” Wimberger asked the head of Wisconsin's Department of Children & Families secretary.
Newcap closed its doors in March, and shortly after filed for bankruptcy. Newcap managers admitted that they owed at least $4 million to more than 200 parties.
"[This] audit will shine further light on recent abuse and give us a clearer understanding of how WISCAP and its partner agencies are using taxpayer dollars," Wimberger added.
Former Newcap CEO Cheryl Detrick collected a paycheck that topped $239,000 in 2024. That's a 142% increase from her salary in 2016.
Investigations also found that Newcap operated at a loss, at least a $2 million deficit.
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