A Green Bay-based nonprofit has placed its top executive on administrative leave following reports of possible misuse of taxpayer funds and the state’s decision to impose enhanced financial monitoring.
Newcap is a nonprofit operating in 10 northeastern Wisconsin counties that offers assistance to low-income residents. It’s funded primarily through state and federal grants.
The agency served more than 25,000 people in 2022, according to its most recent available annual report, through employment and job training, educational support, financial coaching, health and food assistance, housing services, home repair and case management.
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In February, WLUK-TV reported the organization placed CEO Cheryl Detrick on administrative leave for the “foreseeable future” while an independent third party conducts a review of Newcap’s programs. The TV station cited an internal email sent to employees.
Tom Sieber, Newcap’s interim CEO, confirmed via email to WPR that the email cited by the station is accurate.
Sieber did not provide responses to additional questions from WPR and did not provide further comment for this story. Detrick also did not respond to a request for comment about being placed on leave.
“It’s extremely rare for a charity’s board to put its leader on leave,” said Laurie Styron, executive director of CharityWatch, a Chicago-based independent charity watchdog. “That’s often a precursor to that person being wound out of the organization, either voluntarily or involuntarily.”
The decision follows a 2025 financial audit that raised concerns about the nonprofit’s finances and came amid calls from local lawmakers to investigate its handling of taxpayer dollars.
The state Department of Administration is also conducting “enhanced financial monitoring” of the nonprofit, which is primarily funded through government grants.
A statement from the Department of Administration said the decision to undertake financial monitoring of Newcap was “based on information we received late last year.” The monitoring includes comprehensive financial and program reviews, as well as reviews of financial documentation to ensure the nonprofit complies with program requirements.
“Enhanced monitoring happens on a case-by-case basis and across a variety of different programs DOA administers,” the statement read. “At this time, we are unable to comment further as to our monitoring and review of Newcap as this process is ongoing.”
Styron said state oversight offices have very limited resources, so it’s “pretty rare to see one of these departments put this much time and energy into this kind of inquiry.”
Audit raises ‘substantial doubt’ about organization’s ability to continue operating
A 2025 audit of Newcap’s 2024 finances by accounting firm Baker Tilly raised “substantial doubt about the Organization’s ability to continue operating.”
Baker Tilly found that the organization had a roughly $2.8 million deficit at the end of 2024. Newcap had $16.2 million in revenues that year and nearly $19.1 million in expenses.
Of those expenses, nearly $17.1 million came from programs for housing, health care, food and other community services, while a little more than $2 million came from management and general expenses, the audit notes.
“The Organization has experienced recurring deficits in change in net assets, negative cash flows from operations, and reduced liquidity in recent years,” the audit reads. “At December 31, 2024 the Organization had checks issued in excess of bank balances and did not have financial assets available to meet future obligations.”
Baker Tilly did not respond to a request for comment about the audit or Newcap’s financial situation.
Styron said audits often provide a clearer picture than tax filings alone because they account for how grants are recognized and spent across multiple years.
“The big concern here is that the auditors have issued a going concern audit, so that unequivocally means that there’s some substantial doubt about the organization’s ability to continue as a going concern, meaning the auditors have determined that it might have trouble continuing to pay its bills for even the next 12 months,” she said.
Tax documents show Newcap reported a deficit of roughly $2.04 million in 2023 and $2.3 million in 2024. The 2024 tax document reports $15.4 million in revenues and nearly $17.7 million in expenses.
The nonprofit had a $925,922 surplus in 2022, tax documents show.
According to the audit, Newcap management planned to address its deficit by eliminating programs that did not have dedicated funding sources, decreasing administrative staffing, seeking additional revenue sources and improving its cash flow and liquidity.
Questions raised about Newcap’s use of taxpayer dollars
According to the audit, Newcap is “primarily supported through federal and state government grants.” Tax documents show the nonprofit received nearly $14.8 million in government grants in 2024.
Recent reports from WLUK-TV have raised concerns about the nonprofit’s handling of taxpayer dollars. Former employees told the station they believed executive salaries and the use of funds from government grants for trips to conferences and team-building activities contributed to the deficit.
Detrick’s annual compensation has more than doubled during her time as Newcap’s CEO, from $98,876 in 2016 to $239,641 in 2024.
WPR found executive pay for 15 of the 16 community action partnership, or CAP, agencies in Wisconsin. The Social Development Commission, which served the Milwaukee area, did not list an executive in its most recently available tax filing and was replaced as Milwaukee County’s designated anti-poverty agency.
Of the 15 CAP agencies in Wisconsin with executive salaries listed in tax filings, Detrick had the highest compensation. The next highest was Stevens Point-based CAP Services, where its CEO had $206,866 in compensation in 2024.
Styron said nonprofit executive pay should be based on an executive’s skill, education and what others are making for similar jobs in similar geographic areas. The complexity of an organization’s operations could also play a role.
“You can kind of get a sense of it based on looking at what other people are making for similar work, and also just understanding if there’s something particularly complex about the organization that would require someone who’s a bit more advanced,” she said.
Newcap’s website says the organization serves “the largest physical footprint of any community action agency in Wisconsin” with the third-largest population.
In 2022, the Newcap Board of Directors approved giving Detrick bonuses based on new monies coming into the organization. That year, she received 1 percent of a $5 million Bezos Family Grant, as a one-time bonus of $50,000, according to meeting minutes.
Her total compensation was $296,800 in 2022, tax documents show.
Styron said giving nonprofit executives bonuses based on new monies coming into an organization “is really frowned upon in the nonprofit sector” because it “creates inappropriate incentives.”
“You don’t want a nonprofit executive having a revenue generation incentive that’s tied to their pay,” she said. “Because then they might shift their attention away from the programmatic activities of the organization, away from the organization’s mission, and towards revenue generation because they stand to personally benefit from that.”
Green Bay-area lawmakers ‘deeply concerned’ about allegations against Newcap
Two Green Bay-area state lawmakers issued statements expressing concern in response to allegations that Newcap may have mismanaged taxpayer dollars.
State Sen. Jamie Wall, D-Green Bay, said he was “deeply concerned to learn about serious and credible allegations of the misuse of funds.” He said thousands of people rely on the nonprofit’s services and “deserve better.”
“We all expect integrity and transparency from organizations entrusted with public and charitable dollars,” he said.
State Rep. Ryan Spaude, D-Ashwaubenon, said he believes “an immediate, independent review” is needed to “ensure every dollar intended to serve families in need is properly accounted for.”
“I call for a thorough investigation so taxpayers and the community can have confidence that their money is being managed responsibly,” he said.
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