Tas govt backed support group goes broke

A Tasmanian government funded community group set up to support disadvantaged young people has gone into voluntary administration.

Tool was established to help people aged 15 to 25 from Hobart's eastern shore who were at risk of educational disengagement, long-term unemployment, and criminal behaviour.

It secured a funding commitment of $270,000 a year from the Liberal government, but on Tuesday State Growth Minister Matthew Groom said an administrator has been appointed.

"This follows an independent special audit of Tool earlier this year which found its financial management, reporting systems and processes needed to be reviewed and Tool was not in a financially sustainable position," he said.