The Wisconsin Joint Legislative Audit Committee on Aug. 25 ordered an audit of the Wisconsin Community Action Program (WISCAP) and its affiliated agencies, including Newcap, a northeast Wisconsin-based WISCAP association that filed for bankruptcy earlier this year after its chief executive officer was placed on administrative leave amid significant financial mismanagement concerns.
The audit will also focus on Newcap’s demise and whether the state provides enough preventative measures.
“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,” said Sen. Eric Wimberger, R-Gillett, co-chair of the committee. “When taxpayer funding is mishandled, it’s critical that we get to the bottom of it and bring an end to the waste. Today’s 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.”
Under the scope of the audit, the Legislative Audit Bureau will investigate the compliance and oversight of WISCAP’s expenditures in accordance with its state funding, and analyze whether current internal policies can ensure WISCAP’s integrity with taxpayer financing. Prior audits by the bureau have noted concerns with WISCAP’s compliance and management, including within its affiliated agencies such as Newcap.
An audit would likely take several months, according to Wimberger.
Newcap closed its doors in March, accused of misusing taxpayer money meant to help residents in 10 counties, including Oconto, Shawano and Menominee. Newcap owes more than $4 million to more than 200 parties.
In addition, the audit committee ordered audits of the state’s FoodShare program and the Department of Administration’s use of fees collected through the State Building Program.
