Federation Employment & Guidance Service closing shop

EXCLUSIVE: The closure of the 80-year-old charity comes weeks after an audit revealed it is $20 million in debt. “It’s crazy,” said a source involved in the shutdown process. “It’s an absolute mess. It’s historic mismanagement.”

BY Reuven Blau NEW YORK DAILY NEWS Thursday, January 29, 2015

One of the city’s largest nonprofits will be closing shop in the coming months, only weeks after an audit revealed it is $20 million in the red.

Brass at the Federation for Employment and Guidance Services — FEGS — told staffers Thursday that they will find other providers to take over the multiple programs they operate on a contract basis for the city.

“FEGS is now working closely with its city and state government partners, and other stakeholders, to effect those transitions,” said the group’s spokeswoman, Julie Farber.

The historic organization operated on an annual budget of about $250 million, funded largely through city and state grants.

The charity was established 80 years back to help Jewish workers, but evolved into a mega-provider with 4,000 staffers who worked with as many as 12,000 disabled people and other job-seekers each day.

“It’s crazy,” said a source involved in the shutdown process. “It’s an absolute mess. It’s historic mismanagement.”