Fog

Steinbach, MB

12°c Fog

Full Forecast

Local

The Carillon - ONLINE EDITION

Arena figures don’t add up in La Broquerie

By: Jordan Ross

Posted: 01/23/2017 8:58 AM

  • Print

Advertisement

A recent audit of the La Broquerie arena by a Winnipeg accounting firm has uncovered numerous concerns about the organization’s accounting practices in the 2015 fiscal year.

The concerns include what the report called "fraud risk factors" and "significant deficiencies in internal control" that left the organization vulnerable to both "credit risk and liquidity risk."

The undated report, prepared by BDO Canada LLP, began its section on fraud risk by outlining "a concern that cash receipts were not deposited into the bank of the organization." It went on to note that the board of directors were concerned that administration payments and other expenses "were not properly supported."

"These fraud risk factors indicate that fraud could happen in your organization," the section concluded.

The report then tackled weaknesses in internal controls. Pre-signed cheques were occasionally used, and rental and registration fees were sometimes collected in cash "without segregation of duties."

"Cheques were being signed and approved when there was no supporting documentation," the report stated.

The arena’s management also sometimes failed to follow the standard practice of independently reviewing invoices, mailing them out, and receiving payments via cheque. Instead, payment for unreviewed invoices was sometimes received at the arena.

The arena also had to pay penalties on several occasions after failing to pay its own invoices in a timely fashion.

On more than one occasion, payments were made without supporting invoices, which, the audit noted, "increases the risk of fictitious payments being recorded and the organization’s assets being misappropriated." One invoice for nearly $1,800 was paid twice, though the overpayment was later refunded by its recipient.

Arena management "were unable to provide appropriate supporting documentation for a large number of the transactions selected for audit," the report said.

Some of the arena’s general bookkeeping practices made it difficult for accountants to later reconcile the arena’s general ledger with its account balance. For instance, an October 2014 bank transfer of roughly $2,800 was not recorded, while other transactions listed in the general ledger never actually cleared the account.

However, the report qualified its concerns by stating that the questionable practices it identified were "discontinued" as of December 2015.

"Our comments are not intended to reflect upon the honesty or competence of the organization’s employees," the report added, and thanked Kristina Bergen, the current secretary treasurer of the arena board, who assumed her position in December 2015.

In mid-October of 2015 the arena board asked municipal staff to reconsider handling the arena’s books, minutes, and audit reports, and also requested a closed door meeting with council to discuss personnel issues.

Reeve Lewis Weiss could not be reached for comment. Jules Balcaen, who currently helms the La Broquerie Arena Committee, also declined to comment when reached by The Carillon.

  • Print

More Local News

  • Niverville Heritage Holdings announces diagnostic centre

    08/16/2017 6:30 PM

    Niverville Heritage Holdings Inc. has announced another health care infrastructure project is coming to its Niverville campus: a diagnostic services centre that will house a medical laboratory, ultrasound and x-ray services, and an MRI machine that will serve residents of ...

  • Pair of council approvals pave way for senior's care facility

    08/15/2017 9:16 PM

    The withdrawal of a registered objection to a rezoning application has allowed city council to approve a pair of resolutions that effectively pave the way for a proposed nine-storey senior’s care facility planned for the corner of Loewen Boulevard and ...

  • Feds, province support local infrastructure projects

    08/15/2017 8:50 AM

    A number of infrastructure projects will move forward in southeastern Manitoba, now that the provincial and federal governments have announced more than $34 million in new funding for infrastructure in small communities across Manitoba.

    Last week, the joint funding was announced ...

Ads by Google

Electronic Copies

The Carillon single copy cover

Annual Subscription

Back issues available with an e-subscription

Subscribe to single copy
$1.50 each (includes tax)

August 10, 2017 copy now available

Read this week’s classifieds