A significant financial mismanagement has emerged involving New Opportunities, Inc., a nonprofit organization in Connecticut. The organization reportedly diverted $2.8 million in taxpayer funds, intended to assist low-income families with their heating bills, towards its own operational expenses. This information was disclosed by the Connecticut Office of Policy and Management (OPM) in a letter dated December 22, 2023.
According to OPM Secretary Joshua Wojcik, New Opportunities admitted to using grant funds “to provide fiscal support for other organizational operations.” This diversion of funds constitutes a violation of both state and federal contracting rules, as reported by CT Mirror.
Details of the Misallocation
Founded in 1964, New Opportunities administers Connecticut’s federally funded Energy Assistance Program, designed to aid families earning 60% or less of the state median income with their heating costs during the winter months. Recently, the organization issued three checks, totaling $2.8 million, to the energy company Eversource to cover natural gas expenses. These checks, however, bounced when Eversource attempted to cash them due to insufficient funds in New Opportunities’ account, as the grant money had already been used for unrelated expenses.
As of December 22, New Opportunities managed to pay Eversource $1.2 million of the outstanding balance, leaving $1.6 million unaccounted for. In light of these financial discrepancies, Connecticut’s Department of Social Services has suspended New Opportunities from participating in the Energy Assistance Program in the towns of Waterbury, Meriden, and Torrington.
Oversight Measures and Financial Context
In response to the mismanagement, Secretary Wojcik plans to appoint an oversight representative to monitor all of New Opportunities’ spending. Further, any board member who fails to ensure that state or federal funding is used appropriately will face termination from their position.
New Opportunities is heavily reliant on taxpayer funding, having received $38.8 million in government grants for the fiscal year 2024 from various sources, including Connecticut and the U.S. Department of Agriculture. In contrast, it garnered only $995,000 from private grants and $1,700 from fundraising activities, as detailed in its most recent IRS Form 990.
Despite its financial challenges, the organization’s President and CEO, William Rybczyk, received a salary of $267,000, part of over $12 million allocated to payroll and benefits. Additionally, former President James Gatling, who retired in 2021, still received over $100,000 in the fiscal year 2024. Other notable expenses included $480,000 for office expenses and $427,000 for employee travel.
The federal government has earmarked $3.7 billion for Energy Assistance Programs nationwide in 2026. Ensuring that these funds reach the families in need will require diligent tracking and oversight to prevent any future misallocation.
“We are committed to ensuring that taxpayer funds are used for their intended purposes,” Secretary Wojcik stated in his letter.
