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Matt Sepic
Minneapolis

Community Action of Minneapolis suspends CEO

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Bill Davis
Community Action of Minneapolis CEO Bill Davis ushers the media out of their office during a raid by state officials on Friday, Sept. 26, 2014. The Departments of Commerce and Human Services took the actions 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.
Leila Navidi / The Star Tribune via AP

Community Action of Minneapolis, the troubled nonprofit social service organization that is the subject of a state investigation has suspended CEO Bill Davis.

The move follows a state audit last month that found the nonprofit had overcharged states and federal grant programs for more than $600,000 in administrative costs. The audit also found $226,679 in "unallowable" expenses.

Since 1994, Community Action of Minneapolis has provided energy assistance and career counseling to low-income people. But state Department of Human Services auditors say Davis used the group's money on trips to the Bahamas and Palm Beach, spa treatments, and a $36,000 car loan.

Late last month, the department terminated its contracts with the group and has said it will reclaim any misspent state or federal funds.

The Community Action board suspended Davis indefinitely and without pay, said Christina McCoy, the organization's director of children and family development.

McCoy said she could not comment further.

Neither Davis nor board chair Mike Anderson could be reached for comment.