The Welsh government was criticised for its dealings with the All Wales Ethnic Minority Association (Awema) grant on 28 November 2012.
Leading his party's debate Paul Davies AM, stated the recent "funding scandal" was an example of the Welsh government's failure to manage grants.
A Wales Audit Office report into race equality body Awema found officials failed to act on warnings over a decade of a funding scandal and this was the 19 damning report on grant misuse, Mr Davies told AMs.
He also criticised the finance minister's failure to make a statement when instead, she was "dragged kicking and screaming to the chamber to answer an urgent question".
The Preseli Pembrokeshire AM called on the Welsh government to issue regular statements outlining actions taken to improve grants management in Wales.
He also argued that measures need to be implemented to enhance transparency associated with the spending of public money.
Liberal Democrat AM Peter Black also criticised the relationship between the charity and government officials as he urged the finance minister to explain how she is addressing this issue with future grant recipients.
Ieuan Wyn Jones AM stressed the need for tougher steps when grants are misused and the introduction of specific requirements if the grant continues to be issued.
Defending the government, Finance Minister Jane Hutt highlighted the progress made in terms of grant management over the past two years.
She argued that there are measures now in place to guard against the misuse of funds.
The motion as amended was agreed.
Read this in Welsh.