The New Hampshire Attorney General's office says it will increase oversight over the Nashua-based non-profit, Harbor Homes, after a review found problems with cash flow and financial management at the organization.
Harbor Homes is one of the largest organizations in Southern New Hampshire, providing mental health, addiction treatment, and low-income housing services through twelve separate non-profits that operate independently but share a common board.
The Charitable Trusts Unit at the Attorney General’s office began a review of Harbor Homes in January 2019. It found that in spite of an annual revenue of $40 million, Harbor Homes lacked internal controls, regularly operating in the red and incurring overdraft fees, in part because it was waiting for reimbursement for its services from federal and state grants
Harbor Homes rebutted the Charitable Trust Unit’s findings. Its independent auditor says that the CTU did not conduct a comprehensive review of Harbor Homes’ financial audits and cash accounts.
Both Harbor Homes and the CTU stress that the report focused on finances, not the quality of services. Harbor Homes CEO Peter Kelleher said the organization has evolved over the last decade, discontinuing some programs, including homelessness services, while acquiring others.
“We have been responsive to the changing needs of New Hampshire,” he wrote to NHPR in an email. “Our goal remains to address and solve problems, and as such we have been able to scale back where we have met with success, or found partners to move our work forward.”
Harbor Homes has agreed to some of the CTU’s recommendations, including hiring more staff to oversee its finances and restructuring current staff positions. It does not plan to lower the CEO’s wages and benefits, which in 2017 was about $500,000.
Tom Donovan, director of the CTU at the Attorney General’s office, says Harbor Homes is not alone in its financial challenges. As more money comes into the state to combat the opioid crisis, many organizations are struggling with unsustainable growth.
“Sometimes they may need to say no to a new grant because they don't have the infrastructure and back-office services,” he said.
Donovan says his office and the Department of Health and Human Services are taking a closer look at the annual reports and operations of recovery organizations throughout the state.
