Northeast Wisconsin-Based State Agency’s Financial Scandal Raises Serious Financial Concerns Over Statewide Program

MADISON – Senator Eric Wimberger (R-Gillett) released the following statement ahead of today’s Joint Legislative Audit Committee hearing, where the Committee is expected to order an audit of the Wisconsin Community Action Program (WISCAP) and its affiliated agencies, including Newcap, a Brown County-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:

“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. 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 proposed audit, the Legislative Audit Bureau would 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.

In addition, the Audit Committee is also expected to order audits of the state’s FoodShare program and the Department of Administration’s use of fees collected through the State Building Program.