A judge appointed a receiver this week to oversee the finances of Community Action of Minneapolis.
Michael Knight, of Alliance Management, was ordered to provide an accounting of the organization's assets and determine how much it owes the state.
Attorneys for Community Action wanted the judge to appoint a different receiver and allow him to oversee day-to-day operations of the organization, which no longer has a CEO or full board.
The state argued this went beyond the receiver's job. "The receiver should not be spending time [at over $300 per hour] trying to manage the remnants of CAM and thereby depleting the assets available to creditors, especially when the ongoing operation of CAM is not generating significant revenue," wrote Jacob Campion, the state's assistant attorney general.
Knight, the appointed receiver, will submit monthly accounting to the court.
In late September, the departments of Commerce and Human Services canceled their contracts with Community Action after a DHS audit alleged the organization may owe more than $800,000 in unallowable costs, including trips, spa visits and even a personal car loan to its chief executive, Bill Davis.
Alejandra Matos
