Clay County, MO – In a significant move towards fiscal responsibility, the Clay County Commission has voted to cut $75,000 in annual funding to Northland Neighborhoods Inc. (NNI), a nonprofit organization that has received county support for over a decade. The decision follows persistent concerns about the organization’s lack of transparency regarding its finances.
County officials have expressed frustration over NNI's inability to provide clear answers about how the funds are allocated. State Auditor Nicole Galloway highlighted these issues in her recent audit report, which raised questions about the organization's financial practices.
"I have tried since taking office to get NNI to clarify how exactly they spend the money we provide," said Jason Withington, a member of the commission, "Their CEO, Deb Herman, even refused to answer our questions during a meeting and instead ... questioned why we were asking about the expenditure of county funds."
In an effort to address these concerns, the commission invited NNI to deliver a public presentation when they requested funding for the upcoming year. However, the presentation fell short of providing the necessary transparency. In response to questioning by Commissioner Jay Johnson, Herman admitted during the session that she could not specify how the funds were spent, stating, "It's just thrown into the general fund account."
NNI operates as a 501(c)(3) nonprofit with an annual budget exceeding $1 million, with approximately 95% of its funding derived from public sources. The organization receives financial support from several municipalities, including Gladstone, North Kansas City, Excelsior Springs, and Kansas City, Missouri (KCMO). Notably, KCMO funds NNI through Community Development Block Grants, public infrastructure dollars, and Tax Increment Financing (TIF) funds, often using PIAC funding memos that obscure the funds' presence in the city budget.
The commission has emphasized its commitment to fiscal accountability with the vote. As the county shifts its focus to more transparent and responsible spending, it remains to be seen how this decision will impact NNI and the communities it serves.
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