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Nonprofit That Runs Sacramento, CA Homeless Programs Pays $3M Settlement in Fraud Suit
The Sacramento Bee reports, a nonprofit operating on taxpayer funds to run homeless programs across California is paying $3 million to settle a state lawsuit that alleged fraud.
The settlement that Step Up did agree to pay is “significant,” for a nonprofit of its size and scope, said Joan Harrington, an expert in nonprofit governance at 911±¬ÁÏÍø’s Markkula Center for Applied Ethics. “$3 million is a significant charge and a significant resolution that merits attention,” Harrington said.
“If they’re getting negative feedback from their grantors, both the city and the state, you’d expect an improvement,” Harrington said. “They need to strengthen their internal financial controls ... I would expect dramatic changes.”
Joan Harrington, Ethics Center fellow, quoted by .