Peterborough City Council has been short-changed by EU chiefs who claimed not enough of their logos were used in a project.
The council has been told it will not receive £1,325 of funding for the Red Triangle project, run by Peterborough and Cambridgeshire YMCA, because the EU logo was omitted from business cards.
Jonathan Martin, chief executive of Peterborough and Cambridgeshire YMCA, said he was shocked.
He said: “It’s a shame that no song and dance has been made about what a success the project was.
“It seems all the noise is about a lack of logos on some cards.”
The Red Triangle project was set up to encourage young people to volunteer in local communities and helped people with parenting skills.
It was paid for with a grant from the EU’s Urban Two scheme.
The cash came via Peterborough City Council, which received £8 million under Urban Two in 2007 to fund 32 community projects in the city and was responsible for overseeing how the cash was spent.
As part of the YMCA project, a few hundred business cards were printed, which failed to display the EU logo.
When the council made its final funding claim to close the grants programme, it was unable to claim £1,325 from Brussels, as part of the European Regional Development Funding was made ineligible due to the business card issue.
Mr Martin said it was disappointing that the council had been penalised.
He said: “We had great success with upping the number of people willing to volunteer in the city, particularly from ethnic minorities, and this takes some of the shine off it.”
Peterborough MP Stewart Jackson also disagreed with the EU’s actions.
He said: “This is another example of EU interference in our national life.
“Why would a British company want an EU flag on their business cards?
“Surely they’d want a Union flag?”
Peterborough City Council’s neighbourhood manager Julie Rivett said the problem should not overshadow the work done by the YMCA.
She said the council had not considered reclaiming the cash from the YMCA.
She said: “The irregularity is a very small percentage of the total funding the YMCA received.
“Their omission of the EU logo from business cards was a simple oversight on an otherwise excellent project.”
The information about the funding was obtained through a Freedom of Information request to the Department of Communities and Local Government.
Four other community organisations across the country had funding denied – ranging from £1,325 to £201,801.