neon, inc., a financial puzzle; a proposed solution

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NEON, Inc., A Financial Puzzle; A Proposed Solution. Patricia Wilson Pheanious, JD, MSW, Interim CEO/President & Key Staff

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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 - PowerPoint PPT Presentation

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Page 1: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

NEON, Inc., A Financial Puzzle; A Proposed

Solution.Patricia Wilson Pheanious, JD, MSW, Interim CEO/President & Key Staff

Page 2: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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• 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

Finance & Administration:Key Staff

Page 3: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON City Funding - Past Practice, Current Financial Challenge and Our Financial Position: The Human & Administrative Cost of Lost City Funding

Building Community & Rebuilding Trust Through Accountability & Partnership

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

8:00am

8:10am

8:30am

8:45am

8:55am

Page 4: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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• 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 Streams Fiscal Years State July – June Federal Oct – Sept Municipal/City Jan – Dec Local Funds

Draw Down Quarters Reporting CyclesFunding Fiscal Cycle MonthlyJune – September QuarterlyOctober – December Bi-Annually January – MarchApril – January

Funding & Budget OverviewNEON Finances are Complex!

Page 5: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON GRANT’S (RESTRICTED FUNDS)

• 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 CITY FUNDING

NEON Is Moving Toward Transparency & Accountability

NEON Depends On City $’s to supplement

Grantor Funding

NEON Is Changing. We Need City $ To Continue

Progress

Page 6: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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• 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.

NEON’s Contracts Serve; Norwalk, Westport, Wilton, Weston, New Canaan, Darien, Stamford & Greenwich. The Agency Serves More than 12,000 people annually.

Overview of NEON Programs & Services

Community Services,

Criminal Justice

Agency,

Childcare Development,

Social Services

Workforce Development,

RSVP,

Other

Page 7: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSAgency

Budget Percentage

AGENCY Child Care Development 6,469,459.24 46.61%Social Services 3,047,933.45 21.96%Community Services 1,034,730.92 7.46%Criminal Justice 2,800,213.00 20.18%WorkForce Development 217,598.00 1.57%RSVP 93,500.66 0.67%Other 198,533.00 1.43%FundRaising 17,000.00 0.12%

13,878,968.27 100.00%

Budget Percentage Actual Percentage

AGENCY Federal 6,580,584.35 47.43% 6,054,777.68 46.66%State 5,002,633.24. 36.06% 4,618,539.92 35.60%City 1,512,264.00 10.90% 1,001,035.00 7.72%

Local 56,875.66 .41% 247,976.32 1.91%Contributions 5,000.00 .04% 16,907.87 .13%Program Revenue 715,803.55 5.16% 1,035,823.05 7.98%

13,873,160.80 100.00% 12,975,059.84 100.00%

Page 8: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSChildcare

ChildCare Development Day Care - DSS - DoL 1,334,203.52 20.62%United Way 21,000.00 0.32%CACFP 483,000.00 7.47%Federal Head Start 1,531,717.00 23.68%State Head Start 328,113.00 5.07%21st Century 45,666.64 0.71%City of Norwalk HS Match 306,957.00 4.74%City of Norwalk HS Non-Match 630,918.00 9.75%School Readiness 1,271,057.00 19.65%Program Revenue 516,827.08 7.99%

6,469,459.24 100.00%

ChildCare Federal 3,348,920.52 51.93% 2,764,399.28 50.11%State 1,644,836.64 25.51% 1,412,015.00 25.60%City 937,875.00 14.54% 703,407.00 12.75%Local - 0.00% 17,000.00 0.31%Contributions - 0.00% 0.00%Program Revenue 516,827.08 8.01% 619,326.34 11.23%

6,448,459.24 100.00% 5,516,147.62 100.00%

Page 9: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSSocial Services

Social Services CSBG/HSI - DSS 262,950.04 8.63%CEAP Energy Assist - DSS 2,595,259.50 85.15%TFA ECF N2N 1,654.12 0.05%ADA 7,303.82 0.24%Case Management - DSS 75,575.97 2.48%Temporary Living 105,190.00 3.45%Other - 0.00%

3,047,933.45 100.00%

Social Services Federal 2,875,663.17 93.93% 2,995,835.50 89.86%State 170,616.16 5.57% 202,471.50 6.07%City 0.00% 0.00%Local 15,203.26 0.50% 4,470.30 0.13%Contributions - 0.00% 318.26 0.01%Program Revenue - 0.00% 130,797.47 3.92%

3,061,482.59 100.00% 3,333,893.03 100.00%

Page 10: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSCommunity Service

Community Services HPRP 300,000.00 28.99%Hispanic Services 80,233.77 7.75%Client Servcies 6,586.15 0.64%City of Norwalk Administrative 294,362.00 28.45%Youth Programs 73,439.00 7.10%Summer Camps and Food 257,439.00 24.88%Other 22,671.00 2%

1,034,730.92 100.00%

Community Services Federal 145,989.00 13.86% 115,865.72 12.96%

State 380,233.77 36.10% 280,233.00 31.34%

City 479,251.00 45.50% 220,772.00 24.69%

Local 19,093.40 1.81% 210,060.02 23.56%

Contributions 1,000.00 0.09% 40.00 0.00%

Program Revenue 27,807.14 2.64% 66,565.46 7.45%

1,053,374.31 100.00% 894,082.20 100.00%

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NEON FUNDING GROUPSCriminal Justice

Criminal Justice DOC 2,044,362.00 73.01%DOC-Program Fees 60,500.00 2.16%AIC 689,076.67 24.61% *AIC - Miscellaneous 3,274.33 0.12%United Way 3,000.00 0.11%

2,800,213.00 100.00%Criminal Justice Federal - 0.00% 15,000.00 0.54%

State 2,733,438.67 97.62% 2,676,422.00 97.04%City 0.00% 0.00%Local 3,000.00 0.11% - 0.00%Contributions - 0.00% - 0.00%Program Revenue 63,774.33 2.28% 66,636.69 2.42%

2,800,213.00 100.00% 2,758,058.69 100.00%

Page 12: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSWorkforce Development

Workforce Development Youth Education & Training 64,950.00 29.85%CDBG GED Literacy 10,700.00 4.92%Occupational Skills 67,500.00 31.02%Food Stamp Training 58,548.00 26.91%Financial Stability 15,900.00 7.31%Program Revenue - 0.00%

217,598.00 100.00%

WorkForce Devel Federal 134,198.00 61.67% 122,577.18 66.94%State 67,500.00 31.02% 44,394.42 24.24%City 0.00% 0.00%Local 15,900.00 7.31% 15,900.00 8.68%Contributions - 0.00% - 0.00%Program Revenue - 0.00% 250.00 0.14%

217,598.00 100.00% 183,121.60 100.00%

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NEON FUNDING GROUPSRSVP

RSVP Federal RSVP 59,813.66 63.97% *State RSVP - DSS Match 6,008.00 6.43%City of Norwalk Match 22,000.00 23.53%Local 3,679.00 3.93%Contributions 2,000.00 2.14%Program Revenue - 0.00%

93,500.66 100.00%

RSVP Federal 59,813.66 63.97% 40,500.00 60.88%

State 6,008.00 6.43% 3,004.00 4.52%

City 22,000.00 23.53% 22,000.00 33.07%

Local 3,679.00 3.93% 0 0%

Contributions 2,000.00 2.14% 194.61 .29%

Program Revenue - 0.00% 821.68 1.24%

93,500.66 100.00% 820,426.06 100.00%

Page 14: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSOther

Other Building Overhead - City 73,138.00 36.84%Building Overhead - Other 109,395.00 55.10%CDBG - Facility 16,000.00 8.06%

198,533.00 100.00%

Other Federal 16,000.00 8.06% 600.00 0.29%State - 0.00% - 0.00%City 73,138.00 36.84% 0.00%Local - 0.00% 54,856.00 26.60%Contributions 2,000.00 1.01% - 0.00%Program Revenue 107,395.00 54.09% 150,733.95 73.10%

198,533.00 100.00% 206,189.95 100.00%

Page 15: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSFundraising ( July 2011- May 2012

Page 16: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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• 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 City Funding:Past Practice, Current Financial Challenge & Position

NEON’s Present PositionNEON has changed past practice. We have evaluated allcontracts, programs and projects 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 wereimproperly charged to Head Start. We are also evaluating systems and haveimplemented 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

Page 17: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON FUNDING GROUPSCity of Norwalk

City of Norwalk HeadStart 750,000.00 57.60%Admin/Bld Overhead/RSVP 370,500.00 28.46%City Summer Camps 181,450.00 13.94%

1,301,950.00 100.00%

Page 18: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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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.

NEON, Grants & City SynergyProgram Impact: Our Funding Sources Work Hand In Hand Across Many Demographics

Page 19: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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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.

Norwalk City Funding

City of Norwalk Allocation

Q1 Q2 Q3 Q4

Head Start 187,500.00

187,500.00

187,500.00

187,500.00

Admin/Building Overhead/RSVP

92,625.00 92,625.00

92,625.00

92,625.00

City Summer Camp

45,362.00 45,363.00

45,362.00

45,363.00

NEON ASK 325,487.00**

325,487.00**

325,487.00**

325,487.00**Summer Camp Funding From the

City of Norwalk of $141,450.00 Has Been Received

Page 20: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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NEON, Inc.,Core

Program &

Services

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.

The Loss of NEON’s City Funding: Will Have A Domino Effect on Other Fund’s

Page 21: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

Partnership and Collaboration are KEY!

Every Piece in the Puzzle Counts!

21

Page 22: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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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.

Next StepsQ&A

Step 1Present Mayor Moccia and his cabinet with budget details

6/5/12

Step 2Request that the Mayor give NEON 4 quarterly payments

of $331,843.75 totaling $1,327,375.00 from

7/1/2012 through 2013

Step 3Request that the Mayor present Step 2 to the

Board of Estimates and City Council

Step 4Mayor Moccia makes a Request on behalf of NEON for a Special

Appropriation Hearing to approve the quarterly payments in Step 2

Page 23: NEON, Inc.,  A Financial  Puzzle; A Proposed Solution

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Pat Wilson Pheanious, JD, MSW, Interim CEO/President- 203-667-7321Beverly Beavers, Executive Assistant – 203-663-7335, [email protected]

Chiquita Stephenson, Interim Chief of Staff – 203-663-7334 [email protected]

Danielle Watson-Yates, Comptroller – 203- 663-7329 [email protected]

THANK YOU

Questions & Follow UpContact Information