BARNSLEY Council has withdrawn its support to the Barnsley Black and Ethnic Minority Initiative (BBEMI) after concerns were raised about its financial administration.
A council spokesman said serious concerns relating to the governance and proper financial administration of the organisation have recently been brought to the fore - and that the matter had been referred to police.
The spokesman added: "Against this background and with a police investigation now underway the council believes it has no alternative but to withdraw its support for the organisation - both financial and at board level.
"In the light of the police investigation the council will not be commenting further until that investigation is complete.
"This decision does not affect the council's support for black and ethnic minorities which remains paramount. Working with partner agencies and organisations, the council will be looking at other ways to build on the work done to date. People within our black and ethnic communities can be assured of the council's continued support."