State ends contracts with Minneapolis nonprofit

Published 2:32 pm Saturday, September 27, 2014

ST. PAUL — Two Minnesota state agencies are severing ties with a Minneapolis nonprofit that was found to have spent lavishly on travel, bonuses and executive perks at the expense of services to low-income families.

The Departments of Commerce and Human Services took the actions Friday after an audit showed persistent irregularities in spending by Community Action of Minneapolis. The organization’s mission is to help connect people with job search assistance and home heating aid.

Several well-known Democratic officials were board members of the organization and have since stepped down.

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In announcing the decision, agency leaders say they will try to reclaim money deemed to have been misspent.

They urged people to make contact with other groups playing similar roles to fulfill energy assistance or home weatherization needs.