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September 23, 2014

Minn. Audit Alleges Social-Service Charity Misspent $870,000

A Minnesota nonprofit could be required to repay $870,000 in taxpayer funds after a state audit found that its leaders spent government money on personal or questionable expenses, including bonuses, trips to resorts, and a car loan for the charity's top executive, according to the Star Tribune. Bill Davis, CEO of Community Action of Minneapolis, disputed the audit report and said the group has sent the state 112 pages of information challenging the findings.

The audit blames Community Action's board, which includes several prominent Minneapolis politicians, for lax fiscal oversight. The charity acts as a conduit for millions of dollars a year in federal and state aid to low-income families for heating assistance, weatherizing homes, and other services. The findings put the organization at risk of losing at least $2.8-million in aid, according to the newspaper.