(The Center Square) – Two of Wisconsin’s congressmen are asking for a full audit after a Green Bay-based non-profit reported a multi-million-dollar deficit.
Congressmen Bryan Steil and Tony Wied said NewCap reported a $3 million deficit, despite getting nearly $14 million in government grants.
“Wisconsin families deserve to know grants funded by their tax dollars are used responsibly and efficiently,” Steil said.
Steil and Wied said NewCap got $11 million from the federal government, and nearly $3 million more from the state of Wisconsin.
They also said Newcap’s financial report shows they spent some of that money on six-figure salaries for their top executives.
“This deficit appears to be driven by abnormally high salaries for executives (including nearly $240,000 in annual compensation for the Chief Executive Officer, more than double her salary in 2018) and the misuse of grant funds to purchase first-class plane tickets and ‘team building activities’ that included high-end dinners and cooking classes, among other items,” Steil and Wied wrote in a letter to the federal Department of Housing and Urban Development.
“The allegations of misuse of funds at Newcap for the personal gain of executives and employees are unacceptable. I urge HUD to conduct a full investigation so taxpayers across Wisconsin’s 8th District can see how every penny was spent,” Wied added.
“The allegations of excessive spending raise serious concerns about wasteful and abusive behavior with taxpayer funds,” Steil said. “I urge HUD to investigate the allegations of misuse and restore good governance and responsible management of critical housing programs.”
The two said some of the $3 million that Newcap received from the state of Wisconsin “should have gone towards helping Wisconsinites find safe and stable housing .”
They say Newcap’s excessive spending on salaries, bonuses, and team-building are a “clear case of wasteful and abusive behavior with taxpayer funds.”
