Abstract

The Canada Community-Building Fund (CCBF) is a yearly grant given to municipalities, which must be spent on capital projects. While looking at the Village of Barons audited financials and the CCBF payment / allocation data, I noticed what I believe to be a very large discrepancy.

Audited Financials

In 2018, the audited financials started reporting a detailed deferred revenue break down. As the audited financials report the prior year, I chose to use 2017 as the ground truth for this analysis.

Data

Analysis

Year end deferred revenue should be the last years deferred revenue minus any realized payments plus the current years allocation. Which I have calculated as follows:

This looks completely different from the amounts reported on the villages audited financial statements:

The calculated discrepancies are further substantiated by the February 25, 2021 special meeting minutes: ¹

MPE – project funding $248,705 Gas Tax Funding

And the November 8, 2022 regular meeting minutes: ²

Currently the Village has $304,060 in Gas Tax Funds available

Auditor Sanctions

[11] The Scase firm underwent the following: ³

    a. An initial practice review on May 23-24, 2017, in which serious deficiencies were identified in respect of Audit and Quality Control professional standards, including for not-for-profit and municipality clients;

    b. A first follow-up practice review on May 31, 2018, in which the significant deficiencies remained in the same areas; and

    c. A second follow-up practice review on May 27, 2019, in which the deficiencies still remained.

[13] THEREFORE, I, Darryl Scase, CPA, CGA and Scase & Partner, Chartered Professional Accountants, admit to the allegations of unprofessional conduct as set out in the December 22, 2020 motion referring the matter to hearing, in that I:

Failed to comply with professional standards with respect to audit engagements and quality control in that serious deficiencies were noted in the areas of audit engagements and quality control in the three practice reviews conducted of Scase & Partner Chartered Professional Accountants on:

    a. May 23 and 24, 2017;

    b. May 31, 2018; and

    c. May 27, 2019.

Thoughts

This is one of the many reasons I am seriously concerned about the villages grant reporting, and finances in general. I have reported this and other discrepancies to the Minister of Municipal Affairs.

Unfortunately my fellow council members do not seem to share my concerns and have, in fact, taken actions to prevent further review of grant discrepancies.