Forensic Review of New Opportunities, Inc. Shows Losses
New Opportunities, Inc. (NOI) is a nonprofit group that receives both state and federal funds to perform a number of activities for residents mainly in the greater Waterbury, Torrington, and Meriden areas of Connecticut. The organization operates social programs and services including food security, employment training, early childcare education, elder independent living, housing, and energy-related assistance.
CohnReznick Advisory LLC, a professional services firm based in New York City, was hired by the State of Connecticut Office of Policy Management (OPM) to forensically analyze several financial operations of NOI. The firm reviewed transactions between November 2024 and February 2026.
The testing procedures included the analysis and inspection of supporting documentation submitted by NOI, conducting interviews of NOI employees, and conducting onsite visits or teleconferences with NOI management.
Findings of the review include the following.
NOI has been operating at a net loss.
During the years ending October 31, 2024, and 2025, NOI generated net losses amounting to $350,000 and $98,000, respectively. Importantly, the 2025 net loss of $98,000 included non-recurring revenues of approximately $1 million. For the period ending February 28, 2026,
NOI generated a net loss of approximately $442,000.
Some state funds were used for purposes other than those intended.
Approximately $2.9 million of Connecticut Energy Assistance Program (CEAP) funds were not used in accordance with the program requirements. The funds received were used for other purposes, including general operating expenses, supporting an affiliated business and/or other misuses.
Misdirected CEAP funds prompted additional state spending.
As a result of the misdirected CEAP funds, NOI used approximately $563,000 of CEAP funds from the 2026 program year to pay 2025 program year expenses. Therefore, during program year 2026, State’s Department of Social Services (DSS) provided NOI with additional funding of approximately $541,000 to pay 2026 CEAP obligations.
Affiliate operated at a net loss.
NOI operated an affiliated entity, Connecticut Food 4 Thought (CTF4T), a hydroponic food producer and a wholly owned entity, through February 2026. During the period from November 1, 2024, through February 28, 2025, CTF4T generated net losses of $1.45 million. NOI funded those losses with various funds, including the misdirected CEAP funds.
The NOI Board of Directors was unaware of misdirected funds and losses.
NOI’s general ledger cash accounts reflected massive negative cash balances. NOI’s management team, specifically, the former CEO and the CFO, did not report those negative balances to the Board of Directors (BODs). In fact, the CFO recharacterized those negative balances as an accrued liability on the NOI balance sheet for reporting to the board.
In conclusion
1. Approximately $2.9 million of CEAP Program funds were not used in accordance with the CEAP Program requirements.
2. Amounts reported to the state in program year end reporting do not agree to NOI internal reporting.
3. NOI management withheld critical financial information from the BODs.
4. NOI did not adhere to financial internal controls or best practices.
