NEON, Inc., A Financial Puzzle; A Proposed Solution. Patricia Wilson Pheanious, JD, MSW, Interim CEO/President & Key Staff
Key Staff Finance & Administration: • Chiquita Stephenson, Interim Chief of Staff • Danielle Watson-Yates, Comptroller • Darice Herene, Finance • Jackie Lovegren, Administration & Planning • Gail Meaney, Human Resource • Marion McElveen, Payroll Services • ************************************** • Program Directors: • Mary Mann, Director of NorwalkWorks • Jo-Ann Stabler, Director of Early Childhood Development
Building Community & Rebuilding Trust Through Accountability & Partnership 8:00am 8:10 am 8:30am NEON City Funding - Past Practice, Current Financial Challenge and Our Financial Position: The Human & Administrative Cost of Lost City Funding Agenda NEON is Moving Forward Through A Difficult Past Toward Transparency & Accountability Overview of Budget Detail: Agency Programs, Services & Funding Sources Next Steps: Special Appropriations, Opportunity for Quarterly Review. Q & A 8:45am 8:55am
Funding & Budget Overview NEON Finances are Complex! • NEON is financed through four funding streams We operate 3 fiscal years, report progress and draw down funding monthly, quarterly or bi-annually depending on funding source. Funding StreamsFiscal Years State July – June Federal Oct – SeptMunicipal/City Jan – Dec Local Funds Draw Down Quarters Reporting Cycles Funding Fiscal Cycle Monthly June – September Quarterly October – December Bi-Annually January – March April – January
NEON Is Moving Toward Transparency & Accountability NEON Grant’S (Restricted Funds) NEON City Funding • NEON’s many grants are restricted by individual program and service requirements. In the Past, NEON allocated the expenses of salary, fringe, direct client service etc… across several funding streams. We relied heavily on City of Norwalk for administrative funds to fill operating deficiency’s in other programs. • For the past 30 years the City of Norwalk provided funding to assist NEON to supplement other grant funding. City dollars serve as a match to Federal, State, Local and Private funds. The City required limited specificity and suggested no change in accounting practices until now! The previous Executive Managers are no longer at NEON. Current Management demands the transparency and accountability required to regain public trust. Necessary systems and practices are being implemented to ensure and sustain progress. NEON Depends On City $’s to supplement Grantor Funding NEON Is Changing. We Need City $ To Continue Progress
Overview of NEON Programs & Services NEON’s Contracts Serve; Norwalk, Westport, Wilton, Weston, New Canaan, Darien, Stamford & Greenwich. The Agency Serves More than 12,000 people annually. • NEON has 63 Distinct Programs and Services • The Programs and Services operate within the • 6 Groups listed on the right NEON’s agency budget is $14,346,030.13. • The budget consists largely of funds • restricted by contractual obligations, and is • Implemented through specific policy, procedure • and regulation that is specific to each funding • source. Agency, Childcare Development, Social Services Community Services, Criminal Justice Workforce Development, RSVP, Other
NEON FUNDING GROUPS Agency
NEON FUNDING GROUPS Childcare
NEON FUNDING GROUPS Social Services
NEON FUNDING GROUPS Community Service
NEON FUNDING GROUPS Criminal Justice
NEON FUNDING GROUPS Workforce Development
NEON FUNDING GROUPS RSVP
NEON FUNDING GROUPS Other
NEON FUNDING GROUPS Fundraising ( July 2011- May 2012
NEON City Funding: Past Practice, Current Financial Challenge & Position • Past Practice • Since the 1980’s NEON has received a single city contract providing funding for NEON, Inc., Administration, NEON Head Start, Building Overhead and RSVP. A separate contract covers NEON’s Summer camp. In past years the city did not define or communicate contractual expectations. NEON did not report progress or outcomes. There was no transparency in operations or finance. • Current Financial Challenge • A lack of accountability and questionable financial practices resulted in the city witholding $1,327,375.00 in funds. While these funds have been characterized as “Head Start,” – the dollars are allocated in the agency.* The sudden lack of City funds is likely to cause hourly reductions and lay offs affecting more than 80 staff. NEON’s Present Position NEON has changed past practice. We have evaluated all contracts, programs andprojects that are not connected to funding. We have eliminated individuals and expenses from the Head Start budget that were not related to the program or were improperly charged to Head Start. We are also evaluating systems and have implemented procedures to insure that the problems identified cannot be repeated. $306,957 Head Start Only $630,918 All Child Development Programs (including Head Start) $389,500 Across the entire Agency
NEON FUNDING GROUPS City of Norwalk
NEON, Grants & City Synergy Program Impact: Our Funding Sources Work Hand In Hand Across Many Demographics NEON is a key part of this community. Our programs and services help the city’s most vulnerable residents. Our services provide short-term support for those who seek to escape poverty and become self-sufficient. NEON’s State and Federal grants, municipal and private funders create opportunity for vulnerable residents to help themselves within the Norwalk Community. In the last quarter we assisted 4,345 households across racial, ethnic, age and family compositions. 406–under 5 years, 1,483 between the ages 6 and 17, 2,357 between age 18–54, 545 between 5 –69, 375 over age 70. We served 1058 African-Americans, 1401 Latinos, 1094 Caucasians. The city of Norwalk helped NEON serve these citizens. City funding helped NEON to leverage support from all of our major funders. Losing City funding will eliminate the Synergy that helps people survive and thrive. Together in the last quarter, we reduced or eliminated the emergency needs of 6588 people, helped nearly, 300 men, women and young adults with employment and supported the growth and development of 608 children.
Norwalk City Funding Here is the breakdown of City funding awarded to NEON in fiscal 2011 and 2012 and for the last 30 years. Loss of this funding jeopardizes other funds that the agency receives. Many times City funding offsets or matches other grant funding (e.g.the Federal Head Start 20%.) NEON’s Ask is a quarterly payment from the City that includes a regular opportunity for ongoing evaluation of NEON’s programs, services and finances. Summer Camp Funding From the City of Norwalk of $141,450.00 Has Been Received
The Loss of NEON’s City Funding: Will Have A Domino Effect on Other Fund’s NEON’s core programs and services are dramatically affected by the loss of City Funding. City Funds leverage other funding and secure in-kind resources. Our funding structure includes City funds that help perpetuate a healthy financial position for NEON and the communities we serve. The funds provide opportunity for enhancement and expansion of programs that are desperately needed by the low-income public. Cutting our funding by $1.5 million dollars may cost NEON an additional $2 million in Federal, State and Local funds.
Partnership and Collaboration are KEY! Every Piece in the Puzzle Counts!
Next Steps Q&A Together the City of Norwalk, NEON, other funders, the Community and Community partners make a huge difference in the lives of the people that we serve. The City of Norwalk’s funding is critical to NEONs forward movement and to the well being of thousand’s of people in Norwalk and the surrounding areas.
Questions & Follow Up Contact Information Pat Wilson Pheanious, JD, MSW, Interim CEO/President- 203-667-7321 Beverly Beavers, Executive Assistant – 203-663-7335, firstname.lastname@example.org Chiquita Stephenson, Interim Chief of Staff – 203-663-7334 email@example.com Danielle Watson-Yates, Comptroller – 203- 663-7329 firstname.lastname@example.org THANK YOU