N.Y. Nonprofit Groups Face Increased Scrutiny

New York’s Department of Investigation is beginning an effort to catch and correct financial mismanagement at nonprofit groups that hold contracts with the city, reports City Limits Weekly.

Given that almost a quarter of the city’s $15.7-billion procurement budget went to human-services contracts last fiscal year, officials say they want to ensure that public money isn’t being improperly or criminally mismanaged. “We’re going after cases where something systemic is going on, “ said Department of Investigation Commissioner Rose Gill Hearn. “What we’re seeing is outright misappropriation of funds, backed up by falsified invoices.”

Hundreds of nonprofit groups that hold significant government contracts in human services will soon receive a detailed questionnaire intended to expose financial flaws. The increased scrutiny comes on the heels of an inspection already under way by the Department of Investigation of more than 30 nonprofit groups that have contracts with the city and are suspected of alleged six- and seven- figure thefts.