San Diego County has ended $227,000 in contracts with Escondido's nonprofit St. Clare's Home , which cares for homeless and abuse women with children.
The county decided to terminate all contracts with the nonprofit because of a recent audit showing significant financial mismanagement. The agency has a $2 million annual budget.
Sister Claire Frawley, who founded the agency in 1983, says county officials exaggerated the financial woes and insists accounting problems are being fixed.
St. Clare's has been forced to lay off case workers and to eliminate its substance abuse program because the county has pulled out.
But Frawley says St. Clare's will continue serving about 100 domestic violence victims and homeless people at its seven safe houses.