An official complaint has been lodged about the way in which a community group's council grant was axed.
The Hangleton and Knoll Project had its application for a £45,000 grant thrown out as part of Brighton and Hove City Council's drive to save money.
Project manager Sarah Christie was told her organisation, which has won council praise for its pioneering work in the past, would get nothing next year.
The move could mean redundancies, including Ms Christie, and the project could fold as a result.
The decision sparked a storm of protest from people in Hangleton and Portslade who rely on the work of the project, which runs a number of community groups.
Residents lobbied their councillors, organised petitions and appealed to Hove MP Ivor Caplin for support.
Ms Christie has now written to Don Turner, the executive councillor responsible for regeneration, to complain about the way the decision to cut the project's grant was made.
She protested: "At every stage of our application incorrect assumptions have been made without checking or asking the project for clarification.
"The project met the criteria of the council's best value review for the grants process of neighbourhood community development work.
"For several years we have brought into Brighton and Hove more than £500,000 in terms of investment. Now they are no longer supporting us.
"The city council has praised us for our financial systems and we have recently been given an unqualified audit.
"We have won several national accolades for the quality of our work and the council continues to cite us as an example of exemplary work.
"Our complaint is that we have been poorly appraised and this is backed up by the lack of an audit trail in the council's files."
Ms Christie said she had asked Coun Turner to send her an official complaint form and to answer the points made in her letter.
Backing for the project has come from both sides of the political spectrum.
Labour MP Mr Caplin held a fact-finding meeting with project staff and community leaders on Monday.
He said: "I have supported the work of the Hangleton and Knoll Project for ten years and it plays a very important role in supporting and developing the community.
"I want to see if there is any way in which I can help persuade the city council that they should look again at their decision to reject its grant application."
Peter Willows, Conservative councillor for Hangleton, said: "The work the project does is vital not only in Hangleton and Portslade, but all across the city.
"The city will be a poorer place if a group like the Hangleton and Knoll Project folds because of lack of support from the council."
A city council spokeswoman said: "Coun Turner has not yet received the project's letter but when he does, the council will study its contents carefully and address any points it raises.
"If the project makes a formal complaint it will be investigated using our agreed complaints procedures."
The council decided its grants for next year using a new formula that included input from the voluntary and community sectors.
The spokeswoman said 116 organisations applied for grants, of which 60 received money from the council's £2.1 million main grants budget.
A further £190,000 was still available in the council's small grants budget to help voluntary and community organisations next year.
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