Federal inspectors report that the Wisconsin Department of Justice did not adequately monitor how a Madison nonprofit used federal crime-victim funds. The department approved reimbursements without reviewing invoices, violating its own grant policies.
The U.S. Department of Justice Office of the Inspector General audited Victims of Crime Act (VOCA) funds Wisconsin DOJ subawarded to Freedom, Inc. The agency awarded over $630,000 for sexual-assault services in fiscal years 2024 and 2025, reimbursing $515,959 by September 2025. Inspectors questioned $46,439 in undocumented costs and over $7,000 paid to contractors without prior approval and above the state’s hourly rate limit.
VOCA funds, sourced from the federal Crime Victims Fund, support counseling, emergency housing, and related services for crime victims. The inspector general found that while Freedom Inc. had written financial policies, it lacked adequate procedures for coding expenses, tracking staff time, recovering security deposits, and maintaining supporting documentation. Two group-therapy contractor invoices, totaling about $9,000 and $24,500, did not align with the services billed. Inspectors also observed a decline in victims served before the larger invoice. Five additional transactions left nearly $8,500 in emergency and supply costs unsupported. In 2024, the group used both VOCA and American Rescue Plan Act funds but did not consistently track which source paid each bill, potentially leading to inaccurate reimbursement requests and financial reports.
The second finding concerned Wisconsin DOJ’s oversight. The inspector general found that the Kaul administration did not properly supervise the subaward. The state acknowledged it failed to receive or review invoices before approving reimbursements, contrary to its policy. The OIG stated that while Freedom Inc. used grant funds for counseling and emergency housing, “but we identified needed improvements in grant management and administration.” The audit made seven recommendations. Wisconsin DOJ and Freedom Inc. agreed to resolve the findings by year’s end. The department will instruct the nonprofit to update its policies and provide documentation for the questioned costs by November 27.
Freedom Inc. informed inspectors that one contractor’s higher rate was approved in a July 2026 notice from Wisconsin DOJ. The organization disagreed with the recommendation to repay more than $33,000 in unsupported contractor costs and said it would work with the state to locate the necessary documentation. Channel 3000 reported that the group scheduled, then canceled, an on-camera interview. Wisconsin DOJ communications director Riley Vetterkind stated the department “expects that organizations receiving federal grant funds comply with strict reporting requirements” and is “actively working with the Office of the Inspector General and Freedom Inc. to address and remedy the audit findings.”
Freedom Inc. has regularly received public funding. A Washington Examiner review found the charity received over $5 million in government awards since 2020, including city of Madison youth-program grants and a $475,000 Justice Department award in 2024 for “culturally specific” domestic-violence and sexual-assault services. From 2023 to 2026, Wisconsin DOJ distributed additional federal victim-assistance funds. A 2020 Milwaukee Journal Sentinel investigation reported the state had already directed $3.6 million to the group over five years, including $876,674 in federal grants awarded by Kaul’s DOJ after 2019. The new audit does not allege criminal theft but confirms that federal victim funds were disbursed on invoices the department later admitted it never reviewed.
