Special Olympics Australia (SOA), the official sporting body for athletes with disabilities, is in dire financial trouble and has raided the bank accounts of regional offices to keep the organisation running.

The local branches, made up of volunteers and parents of athletes, are shocked and demanding answers.

Central Coast branch Chair Marilyn Caruana has been involved with the club for 15 years. She said all regional SOA branches were called in for a meeting on the weekend of November 8 and told by that Monday half their fundraising money would be gone.

"Monday morning it was gone, Monday morning it was just electronically taken so there's nothing you can do ... you couldn't have done anything about it," she said.

"I didn't even know they could take our bank account. I thought it was only our local bank account and I've been chairperson for six years and I didn't know that they owned that bank account."

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The volunteers were told that more than $1 million was lost in the Asia Pacific Games held last December and they now needed their money to keep the organisation afloat.

In a letter obtained by the ABC, SOA chief executive Nicola Stokes stated the "debt was a result of a breakdown of communication between the Asia Pacific Games Organising Committee and the SOA Board".

What exactly happened is unclear, but in a bitter letter exchange after the Saturday meeting, Rex Langthorne, a former board member and a member of the Games Organising Committee, wrote to the current Chair of of SOA, Nigel Milan.

"The strategy to just take funds as opposed to asking for assistance seems to have backfired somewhat," Mr Langthorne wrote.

"Another option that should have been considered is to arrange a bank overdraft to manage cash flow needs using members' funds as collateral to secure such a facility."

Mr Milan, the former managing director of SBS shot back:

"I was surprised and disappointed to receive your correspondence in regards to the regional chairs meeting ... The Board and I find it difficult to accept the position you are taking in seemingly abdicating all responsibility for the financial situation SOA is in, given you were not only the Acting CEO from the June 14, 2013 to the 10th of February 2014 you were also on the Games Organising Committee for the Asia Pacific Games."

Mr Milan added: "Rex, I am in no way suggesting that the Asia Pacific Games financials disaster is all of your making, indeed I have gone to pains to say that the truth of the situation is a total governance failure of the whole of the organisation and all of us involved bear some responsibility but your 'anyone but me' approach pays you no credit."

Mr Langthorne was not the only one unhappy about the meeting. Ms Caruana told the ABC that she feels that they have been "bullied" by SOA.

"I found it very underhanded really, if they had of let us know that they were doing it ... or if they had of let us know that they were in debt we might have been able to give a levy or something," she said.

The SOA also told the regional chairs that forensic accountants would be brought in if the regions tried to take money out of the accounts before Monday.

"The words 'dictatorial' and 'authoritarian' and 'unilateral' spring to mind at the moment," wrote one volunteer in an email.

The ABC contacted all 69 regional offices to ask for a comment, but only Ms Caruana would speak publicly.

Most declined because they were told if they spoke to the media they would lose their accreditation, others feared that if they spoke out SOA might not allow their children to compete in future events.

Ms Stokes denied that any threats had been made.

"I feel that it was interpreted that way. We got some feedback on that. It certainly wasn't intended. It is quite standard way that we have one point of contact for the media. Of course if they want to speak to the media they can," she said.

Fundraising programs to be reviewed

The SOA's annual report shows the organisation ended the last financial year with more than $15 million in fundraising revenue.

The financial statement also shows that $12.2 million was raised via the gift voucher program which is run by an independent company called the APPCO Group.

SOA only retained $500,000, while over $7 million went to the APPCO Group for fundraising expenses.

The APPCO Group is currently being investigated by the NSW Office of Liquor, Gaming and Racing for its fundraising tactics.

Ms Stokes said SOA was now reviewing all fundraising programs run by the organisation, including that of the APPCO group.

The APPCO Group said in an email "that Appco Group do not wish to provide a comment/response for the story".

Local volunteers like Ms Caruana fear the financial problems could stop donations from local businesses and individuals.

"I always say to them that the money that you donate goes to all our athletes on the Central Coast, none of it goes off the coast. It all stays with our local athletes," she said.

"Now I'm not sure whether I can say that because that won't be the truth."

SOA is the only avenue for intellectually impaired athletes to compete in world class events.

"Without the SOA we don't have a vehicle for the children to compete in. We were angry at first but by the end of the meeting we realised we had to hand over the money for the SOA to survive. It's absolutely essential for the SOA to get out of debt," one volunteer told the ABC.

"I am absolutely passionate about Special Olympics and making sure that people with intellectual disabilities are able to get out and enjoy the things that every other normal regular person can do," Ms Caruana said.

Ms Stokes maintained that the future of SOA looks bright.

"I think the important point is we are here for the athletes. They do such a wonderful job," she said.

"They demonstrate what people with an intellectual disability can do if they are supported by an organisation such as SOA, which is made up with parents and volunteers who week in week out provide these sporting opportunities for these athletes so they can achieve their personal best, not only in sport but in life and I'm very proud to be part of that organisation."

In a statement to the ABC, Mr Milan wrote: