Cure AIDS of Wilmington, N.C., may lose funding support from the city and other sources if it does not get its financial house in order. Two Wilmington City Council members said recently they may not support granting more money to Cure AIDS, which offers housing and other programs for people with HIV/AIDS, if the agency does not submit an annual audit.

All nonprofit agencies that receive federal Community Development Block Grant funds must file yearly audits that show where the agency gets its money and how it is spent. "I won't be voting to give them any more money if they haven't submitted an audit," said Councilmember Jason Thompson. Thompson also said that he intends on asking City Manager Sterling Cheatham why the city has continued to fund Cure AIDS when it has not complied with the rules.

Cure AIDS Executive Director Belinda Blue has said that she was unaware the agency was required to submit an audit. For the past seven years, the agency has received at least $724,581 in federal, state and local tax money as well as grants from a private foundation. The city has contributed about $91,000. The Internal Revenue Service has no record of Cure AIDS ever filing an annual return. Officials at Cure AIDS said Blue was out of town and declined to comment further.

Alice Johnson, compliance accountant with the city, said she made recommendations for the agency to help get its finances in order, including recommending an accountant experienced in filing returns for nonprofits. An official at Cure AIDS said they have hired another accountant to do an audit.

Meanwhile, if the Wilmington Police Department secures a state disease prevention grant to work with drug-addicted prostitutes, it may drop its plans to partner with Cure AIDS on the effort. "If the agency doesn't solve its problems, the police department would look for another grant partner," said Christine Campel, a grant writer with the police department.

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