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County reinstates AIDS funding

The Broward County Commission restored funding to AIDS Project Florida on Tuesday, convinced for now that a recent act of embezzlement was an isolated incident.

County officials have yet to complete an audit of the agency's handling of $1.5 million in Ryan White Title I funds, federal money funneled to AIDS Project Florida by the county. But County Administrator Roger Desjarlais and other officials said there's no evidence that Ryan White money was mishandled.

The county began investigating the agency this month when William Diamond, the agency's former chief financial officer, admitted through his lawyer that he embezzled money.

The lawyer, Bruce Lyons, has not confirmed the amount of money taken, but the agency's audits have so far identified $59,000 in fraudulent payments through petty cash and other accounts.

Despite the fraudulent payments through petty cash, officials say, the AIDS Project Florida has generally operated properly and not overbilled the county in seeking reimbursement for public services.

County commissioners froze the Ryan White funding, pending an audit, to make sure public money was being spent properly.

"The issue for me is whether we've been inappropriately billed," said Commissioner Ilene Lieberman. "If there's improper billing, I don't think we can continue to use this agency." She said there's no reason to suspect any improper billing has taken place. Commissioners restored funding on a month-to-month basis, but will rescind it again if any irregularities are found.

Lieberman and other officials said the move was intended to ensure services would not suffer. AIDS Project Florida serves more than 3,500 people with HIV/AIDS. Ryan White funding accounts for more than 25 percent of its annual budget.

The commission's vote came after a strong show of support for AIDS Project Florida's executive director, Will Spencer, who was suspended by the agency's board of directors with pay last week and accused of improperly handling the response to the scandal. About a dozen employees and clients urged the commission to make Spencer's continued employment a condition of funding, a move commissioners said was beyond their authority.

Spencer was praised for, among other things, doing more to provide services to the Hispanic community and expanding holistic and alternative care.

Spencer, who was at the meeting, declined comment. Last week the agency's board of directors told him not to talk about the scandal to investigators or to media.

Members of the board have said Spencer and Norm Kent, the former executive director, have used the scandal to discredit them.

The board has dwindled from more than a dozen members in past years to six. Half have ties to Mutual Benefits Corp, a viatical company shut down by federal regulators last year.

Board Chairman Steven Steiner was the company's vice president, attorney Anthony Livoti worked with the company, and a third board member, Diana Enriquez, is married to Steiner's brother, one of the founders of Mutual Benefits.

Steiner has led the board of AIDS Project Florida for five years. He said one reason Spencer was suspended is that he failed to provide audit-related documents to the county in a timely manner.

No charges have been filed against Diamond. Steiner said he expects to file a police complaint by the end of the week.

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Soure: Sun Sentinel
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