The project applied for 90,000 to continue its outreach programme on the Castlemilk housing estate. The project works on a range of issues from drug and alcohol abuse to crime and violence. It has been running for more than 15 years.
A spokesman for the council said that the bid did not meet the council's accountability criteria, and there had been "less contact than we would have liked" with the project's management committee. He stressed that there had been no accusations of financial irregularities.
Glasgow City Council will provide 60,000 for alternative youth work on the estate.
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