An organization in Norwalk, Connecticut, is under fire for its poor financial processes, as an accounts payable audit revealed that there was evidence of misappropriation within its payroll, online banking and cash receipt procedures.
According to The Hour, Norwalk Economic Opportunity Now (NEON), which aims to help low-income residents in the southeastern part of the state, was found to have a severe lack of oversight for many of its accounting and bookkeeping practices during the calendar year 2011. One of the major discrepancies discovered was the misuse of government funds, which totaled $406,434 given to the organization for its Head Start early childhood development programs, the source notes. Due to this inadequate handling, NEON may not receive money from the government for the initiative this year.
Officials for the organization told the source that steps are currently being taken to improve internal control processes and ensure that similar situations do not occur in the future.
“Everything moving forward is based upon our plan of action to make sure that we have internal controls and systems,” said Chiquita Stephenson, NEON’s chief operating officer.