A recent investigation by the Tennessee Comptroller’s Office has uncovered at least $76,585.57 in questionable financial activity involving the Knoxville-based nonprofit, Next Step Initiative (NSI). Spanning from July 2024 to March 2025, the flagged disbursements included undocumented cash withdrawals, digital transfers to employees, and payroll advances that lacked proper supporting records. Investigators found that a significant portion of these transactions was managed by the organization’s former executive director, who maintained primary control over the financial processes; notably, some funds were even disbursed after the director’s termination in March 2025.

Beyond the internal discrepancies, NSI was required to return over $47,000 in grant funds to the Tennessee Opioid Abatement Council due to unallowable expenses discovered during fiscal monitoring. Comptroller Jason Mumpower emphasized that the lack of oversight and missing documentation created a high-risk environment for financial impropriety, reinforcing the need for nonprofits to maintain rigid internal controls. The findings have since been turned over to the District Attorney General of the 6th Judicial District for further review.