The Area Wide United Way has canceled its funding of the Cape Girardeau Civic Center, eliminating the center's major source of income.
The move could shut down the Civic Center if it can't meet its $619-a-month mortgage payments, former Civic Center board members say.
The Civic Center owes about $30,000 on its building at 232 Broadway. Founded in 1959, the center has been at its current location since August 1982.
United Way officials and former members of the Cape Girardeau Civic Center board say they were kept in the dark about the center's finances. At least three members of the Civic Center board have resigned since June.
United Way officials said Monday that the fund-raising organization's board of directors won't consider further funding for the Civic Center unless they are provided detailed financial statements on how the money is being spent and what programs are being offered.
Former Civic Center board members said the center suffered from a loosely run operation in which board members had little input.
The real power, they said, rested with Ed Slaughter, Civic Center board president, and Fred Pennington, who has helped direct the center's operations and previously served on the board.
Pennington was paid about $240 a month to direct the center on a part-time basis even before he was officially named acting director at the same salary.
Pennington resigned from the board after United Way officials voiced concern that it was a conflict of interest for him to be on the board and be paid by it too.
Critics say the Civic Center has done little programming in recent months, with the exception of a trip to Washington, D.C., for 15 to 20 youngsters.
The United Way raised about $500,000 last year. The United Way board last December allocated $35,000 of that money to the Civic Center for 1996.
Money for United Way agencies is distributed in quarterly payments.
The Civic Center received its first payment of $8,750 in January and its second at the end of April after center officials provided some additional financial information. But United Way officials said the financial information was far from complete.
At its May 23 meeting, the United Way board voted unanimously to cancel funding for the Civic Center. The $17,500 that would have gone to the center may go into a reserve fund for the United Way.
The United Way board explained its decision in a May 29 letter to the Civic Center board.
United Way officials repeatedly asked for financial statements in the past two years and even put the Civic Center on membership probation at one point.
"All that is received are listings of checks written and deposits made. This is not adequate to determine an overall financial picture," wrote Nancy Jernigan, United Way executive director.
She said Monday that the United Way board was never given information regarding a beginning or ending balance, or a detailed accounting of expenses.
"There is also a perceived lack of adequate programming at the center on the part of our board," Jernigan said.
Slaughter said Monday that he and other Civic Center officials misunderstood exactly what financial information was needed by the United Way.
United Way officials warned the Civic Center board in a letter this spring that funding would be terminated unless monthly financial statements were provided.
The United Way board even held up the April payment for a few weeks until additional information was provided.
"We were under the impression we had given them what they wanted," Slaughter said.
But Pete Poe, United Way chairman, said the lack of financial accountability has been a concern of his board for over a year.
The Civic Center has operated without a full-time director since Calvin Bird left two years ago.
"The concerns have increased or multiplied or come to the front because of a lack of leadership," Poe said.
Drew Laudie served on the Civic Center board from October to June. He served as treasurer from April to June. He resigned in frustration over his inability to secure detailed financial information from Slaughter.
Earlier this month, George and Iris Dordoni, who shared a voting seat on the board, resigned in similar frustration.
Laudie and the Dordonis wanted Slaughter to step aside. When he didn't, they resigned.
Slaughter was the board's only officer for some time. There was no treasurer.
In April, a divided board narrowly approved keeping Slaughter as its president. The vote was 4-3.
Laudie voted for Slaughter. Now he wishes he hadn't.
Laudie said he was frustrated as board treasurer. "I didn't have control of the checkbook. I didn't have control of anything."
George Dordoni and Laudie said Slaughter kept the board in the dark about operations.
Dordoni said the board thought the Civic Center had been in good standing with the United Way this year until it received the letter of warning in March.
After that, things changed. "It became more and more obvious that Ed didn't understand what was being asked of him or he wasn't telling us the truth," Dordoni said.
Dordoni said the Civic Center has offered little programming in recent months and much of that has been disjointed. "You didn't see any thoughtful planning."
Slaughter said he hopes to secure some grants to keep the Civic Center open.
Slaughter said he hopes Boatmen's Bank won't foreclose on the Civic Center. "I don't think most of the people in the community want to see the Civic Center fail," said Slaughter, who has served as the center's president for about five years.
The center exists to serve the city's youth, particularly low-income and minority residents.
"We can talk about buildings. We can talk about finances, but the bottom line is helping out those kids," Slaughter said.
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