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CAP laces
financial stru ggle
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Employees’ health-care plans are put in jeopardy as the board
tries to determine the depth o f a financial setback
Ó» m:
.. ..
■ U f c j * 4 '
he Cascade AIDS Project administra­
tion has discovered that bills, includ­
ing rent, health insurance, telephone
and grant payments, have gone un­
paid during the past several months.
All together, CAP owes about $120,000. Un­
paid bills include $30,000 in outgoing grants,
$15,000 in rent and $20,000 in employee health
insurance. The rest comes from phone and utility
bills, costs from fund-raising activities, advertis­
ing and other costs.
CAP was able to meet a Feb. 11 deadline to
make a payment of more than $19,000 to Blue
Cross-Blue Shield to protect employee health
benefits, said Theresa Wright, chairwoman of
CAP’S board of directors. That payment was
about three months overdue.
Attorney Ben Merrill, who was appointed by
the board to conduct an independent investiga­
tion, suggested that the organization create a
separate health premium trust fund, where dona­
tions from the community marked for health
insurance will be placed. The fund was set up at
the Bank of America.
Wright said that no decisions have been made
to cut services due to the
T
off five administrative staff on Feb. 1. The board
also decided not to fill two open positions.
The funding shortfall was due to low turnout at
two fund-raisers in 1993, Wright said. The Hal­
loween Ball was expected to bring in $ 10,000, but
instead came out $10,000 in debt. The summer
AIDS walkathon. From All W alks of Life, brought
in about $15,000 less than expected.
Wright said that Bradley, who had worked for
CAP since 1990, was in charge of both fundraising
and finances, each of which required a full-time
worker. She said he was probably overwhelmed
with this heavy workload.
The financial crunch comes at a time of tran­
sition for CAP. Mica Smith announced his resig­
nation as director two months ago, due to health
issues. The board is currently looking for a new
executive director. Frank Yost is currently serv­
ing as the acting director. Smith’s departure had
nothing to do with the financial crisis, Yost said,
but it may have contributed to some confusion of
job duties.
Since 1983, CAP has been providing services
to people directly affected by HI V and AIDS. It is
Portland’s most prominent AIDS service and
education organization. Its
“There may be minor g&fcgSlSr
QlitS TYlClde. r Gild they *
may be temporary.”
tr s
manager of administration
CAP cmPloys about 30
and development, Rob
people.
Wright said that AIDS
Koda Bradley, who w «
m charge of the finance*,
•'
service organizations na­
has been placed on admin­
tionwide are experiencing
istrative leave pending the
financial problems due in
results of a financial re-
. r p i n i ’ part to massive budget
view conducted by an in-
C h a ir w o m a n 01 C A P S
similar to CAP’S.
dependent auditing firm.
board Of directors She added that when AIDS
Wright said it is not
serv ice organizations
clear yet if there was any criminal activity. The started about 12 years ago, most of the money was
checks for many of the bills were written, but not
coming from community donations. Now, more
mailed or cashed, she said.
money is coming from government and private
The problem was discovered on Jan. 31, when
grants, creating the illusion that individual dona­
a CAP staff member was told by a health insur­ tions are not needed, she said. In fact, the dona­
ance broker that the group's health insurance
tions are needed more than ever. ‘T his shift in
premiums had not been paid for the past three
terms of funding basis and our financial problems
months. Other unpaid bills were then found by
is not unique to CAP,” she said.
Philip Vamum, who became manager of admin­
"There may be minor cuts made, and they may
istration in late January.
be temporary,” Wright said. The board will con­
Merrill was named by the board to conduct an
sider future income if cuts are needed, she said.
independent investigation of the financial status
Often times, grants to CAP are based on certain
of CAP, determine the causes of the funding
programs in place. If those programs are elimi­
shortfall and make recommendations to CAP’s nated now to save money, it may result in future
board. He said the investigation should be com­ funding shortfalls. “We are trying to keep the long
pleted by March 9. Other than expenses, he is not run in mind, so that we aren't hurt later,” Wright
being paid by CAP. "I am neither an advocate of said. No services have been cut back y e t
or apologist foT the Cascade AIDS Project,” he
The organization is in the middle of a funding
said.
phonathon. Yost s aid donors usually pledge around
The board was not aware of the unpaid bills
$3,500 per night Since the financial setback was
until Jan. 31, Wright said, but it did know of some
publicized by the media, he said, the phonathon
previous funding shortfalls. It had made budget
has brought in more than $7,000 nightly. The
cuts in December and January, including laying
TherCSd Wright
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