'I Know Better' Nonprofit Doesn't Know Federal Grant Rules

A nonprofit located near Ferguson, Mo., was awarded $1.6 million by the Department of Justice to promote child safety issues, but then neglected a multitude of federal grant laws and regulations.

The nonprofit ignored federal stipulations intended to ensure that tax dollars are spent efficiently and ethically, including cost analyses, competitive bids for goods and services, and the use of approved contractors, according to a Justice Department inspector general report made public Wednesday.

The nonprofit also illegally spent more than $42,000 on unapproved expenses like rent and travel. The St. Louis-based nonprofit operates less than eight miles from ground zero of the Ferguson riots.