Yemeni-American nonprofit admits missing IRS filings, says oversight remedied

At a House Oversight Subcommittee hearing in Lansing, Dr. Abdul Hakim Alsada, president of the National Association of Yemeni Americans, told lawmakers his Michigan-based nonprofit failed to file IRS Form 990 returns for 2022 and 2023 and has taken steps to correct the error.

"We failed to complies to, file for the September, for 2 years, 2022 and 2023," Alsada said, calling the lapse an "oversight" and saying the organization had retained an independent accounting firm to file the required paperwork and conduct a financial review.

The admission came during questioning about the group's use of state grant money and its financial controls. The subcommittee — which opened by approving minutes of its Dec. 10 meeting "without objection" — asked how taxpayers could be sure public funds were properly managed after the missed filings surfaced.

NAYA (identified in testimony as a Michigan-based 501(c)(3) founded in June 2000) provides social services, employment assistance and mental-health care, Alsada said. He told the panel the organization has focused more heavily on behavioral health since the civil war in Yemen and the COVID-19 pandemic, and that NAYA operates centers in Wayne County, Hamtramck, Dearborn, Dearborn Heights, Flint and Branch/Coldwater.

Tracy Boudreaux, who testified as a director for the nonprofit, told the committee NAYA employs nine people and covers its budget through a combination of state grants and clinical billing. "We cover our all of our budget through a combination of the grants and our therapy," she said, adding that the group is credentialed with multiple insurers.

Lawmakers pressed details about compensation, governance and ties to elected officials. The chair asked whether Alsada's work was paid; he said he volunteered for many years and that his current compensation "goes with this state standard" and cited roughly $118,000. Alsada also acknowledged making large campaign donations that were raised by committee members: the chair cited a $5,000 contribution on July 19 and $2,500 on Oct. 16 to Sylvia Santana's campaign. Asked whether those donations influenced budget advocacy, Alsada said he donated "long before" any requests and denied a connection.

Committee members also asked about office space arrangements. Alsada told the panel that Senator Chang's staff uses a small office at a NAYA site and that "the rent... pays the rent, which is $250 a month," and that NAYA and the senator renew their annual contract.

Alsada repeatedly offered transparency to the panel. He told lawmakers the 2022 Form 990 had been filed and accepted by the IRS, the 2023 filing was under review and would be submitted shortly, and that NAYA had hired a third-party accounting firm "to file all required paperwork and reform a thorough financial review." He invited committee members to visit the nonprofit's operations and review financial records, saying the organization's reporting to the state is public.

Some members expressed frustration about the level of scrutiny for a smaller nonprofit compared with larger corporate recipients of state subsidies; Representative Pawetsky called for consistent oversight across recipients. The committee did not take formal enforcement action during the session.

The hearing closed after additional questioning, and the subcommittee adjourned.