Community Action Duluth’s plan to move forward after state’s enhanced monitoring
Community Action Duluth Logo
DULUTH, Minn. – Community Action Duluth(CAD) has laid out its plan to move forward after the Minnesota Department of Children, Youth and Families (DCYF) identified 15 “deficiencies.” These were laid out in a late November letter to CAD. They were mandated to turn in a planned document of the state by the end of January. FOX 21 obtained the CAD response.
Overarching CAD leadership said they would use a “Risk Assessment Tool” by February 28, 2026, to address the issues revealed in the document. The plan said they would then work on a “Risk Assessment Packet” and “Risk Mitigation Work Plan”.
They also addressed the 15 deficiencies. Some of those deficiencies were similar to others and overlapped with each other.
RELATED: First Look: The state’s Quality Improvement Plan draft to Community Action Duluth
REALETED: Community Action Duluth now under ‘Enhanced Monitoring’ by the state
DELAYED PAYMENTS:
The CAD response acknowledges delayed payments. But they argue the delays are “primarily due to reimbursable grant payout timing”. They added that they are “evaluating and implementing strategies to strengthen internal capacity, improve billing timeliness, and stabilize cash flow to reduce the risk of delays.”
They also disagreed that the farmers’ markets were “abruptly ended in October 2025 without proper notification.” CAD asked for “specific evidence” to substantiate the claim.
Community Action Duluth responded to the concern that vendors and employee fringe benefits have not been paidin a timely manner. CAD responded, saying, “Community Action Duluth acknowledges the concern regarding the timeliness of vendor payments and fringe benefit remittances. We also acknowledge that, as a small nonprofit operating primarily on reimbursable grant funding, payment timing can be impacted by allowable reimbursement cycles, cash flow constraints, and staff capacity.”
RELATED: Farmers market vendors say they are still waiting on payments from Community Action Duluth
HOSTILE WORK ENVIRONMENT, SEXUAL HARASSMENT, AND WHISTLEBLOWER CONCERNS:
The CAD response says claims of sexual harassment and hostile work environment need more discussion from the Minnesota Department of Children, Youth, and Families. They wanted to know the “surroundings” of what elevated these concerns. They also say the state claimed, “staff reported the human resources consultant does not handle matters related to sexual harassment and referred staff to the Board.” But the CAD response asked for clarification on this claim, asking for “documentation and communications supporting this claim, so CAD can respond to specific, verified concerns and ensure any corrective actions are aligned with documented findings rather than unsubstantiated allegations.”
The response also addressed concerns about the whistleblower policy not being followed. They wrote, “The complaint process referenced is still ongoing, and certain information may not be available or appropriate to share until the review is complete and findings have been finalized. In the course of addressing these concerns, CAD has also observed that some communications and actions have occurred outside of established reporting and supervision protocols, which can unintentionally escalate situations, create confusion, and increase workplace tension.”
RELATED: Community Action Duluth employees host press conference amid management complaints
BOARD OF DIRECTORS:
CAD did mention their current Board of Directors mix is not within the stated standard, and they plan to fix the vacancies by April 20, 2026. It said that if they can’t fill the openings in that time span, they would notify the Minnesota Department of Children, Youth, and Families.
They also address “possible & perceived” conflicts of interest from board members. CAD requested documentation of the claims to determine if there are conflicts.
STAFF ROLES:
The state pointed to concerns with staff members’ roles not being clear and consistent. In the letter to the state, CAD says they have updated “job descriptions agency-wide,” except for some positions that need union review. They also said all jobs will now be “clearly stated and communicated to candidates before candidates are hired.” They were not aware any staff were hired without updated job descriptions, requirements, and salary ranges approved by the Board. They asked for specifics about whether these things have happened.
They also say they will implement a standard annual reporting workflow and better train staff on financial reporting. CAD also promised to provide greater feedback and staff support to reduce turnover. CAD also asked for more specifics from the state on issues within the turnover section of the report.
RELATED: CAD Staff: We’d rather have Community Action Duluth fail than see Classie Dudley succeed
NOT A FULL PICTURE:
The response ends with a six-paragraph wrap-up. It in part says, “Recent media coverage and public commentary do not reflect the full and accurate context of what is happening at CAD or the substantial efforts underway. Our staff and Board members are working around the clock to stabilize systems, strengthen internal controls, and advance CAD’s mission to reduce poverty and expand opportunity in our community.”
They also ask for clarification on alleged missteps. They wrote, “multiple assertions described as ‘reported’ concerns, yet CAD was not provided any underlying documentation or evidence that would allow the agency to respond to verified findings and implement targeted corrective actions to the best of our ability.”
They also addressed some concerns about personnel matters, saying some are private. They also wrote, “details related to personnel matters may not be available to the public or outside agencies while reviews are ongoing.”
RELATED: Community Action Duluth to hire external third party consultant to investigate problems
EQUITY LENS:
CAD also wrote they want the Minnesota Department of Children, Youth and Families to use “explicit equity lens and consistency check in its oversight approach… Women of color leaders are also more likely to be judged through a deficit lens, to have mistakes generalized into character assessments, and to be expected to absorb crisis-level demands without the same benefit of doubt, support, or time afforded to others. In practice, this often shows up as accelerated enforcement, reduced access to technical assistance, and assumptions made without full due diligence or shared documentation.”
They also wrote, “CAD is concerned that our leadership and governance have been met with scrutiny above and beyond what similarly situated organizations experience, including escalation to a [Quality Improvement Plan] without a clear corrective action pathway documented through the most recent monitoring process and without the underlying evidence being provided to CAD.”
