Posted at: 09/21/2012 6:51 PM
Updated at: 09/21/2012 10:48 PM
By: Joy Lim Nakrin

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Richfield Audit Could Trigger Funding Cuts to Non-Profits

Several Southwest metro social service agencies could lose funding they rely on, because of an audit on the City of Richfield.

Richfield City Manager Steve Devich says of the audit, "they ended up producing a finding we did not have statutory authority to provide a grant to those agencies." In other words, the annual audit found that the municipality had been distributing funds on an unauthorized basis for the past 20 years.

As a result, approximately $70,000 in funds will be made unavailable to 10 agencies. Among those standing to lose the most funding are "Volunteers Enlisted to Assist People" or "VEAP," which runs Minnesota's largest food shelf serving approximately 18,000 Minnesotans each year. Others highly affected are Bloomington-based Cornerstone, which helps domestic abuse victims, Family Partnership, which helps vulnerable children and families, along with MIRA, which helps low income Hispanic families.

Devich says he will meet with city officials to explore other options. He says "early next week, the city attorney and I and the auditor I will look at those contracts and the different agencies that we provide that funding to and review that."