As a follow-up to an internal audit called for by the town’s Administration and Finance executive committee last fall, council received a report of mayor and council expenses from 2004 and 2005 on Monday night.
And the compilation of expenses shows that for a period of time in 2004, some expenses were being submitted back to administration without receipts or any other proper documentation—a sore point for several councillors.
Coun. Roy Avis said the review of expenses stemmed back to late 2004, at which time the Administration and Finance executive committee was notified that cash advances were being taken off the town credit card and that expense accounts were being paid with no receipts turned in.
The committee reviewed this and had policy changed so that in January, 2005, the town changed its credit cards to purchase cards—essentially credit cards without the cash advance option.
Later that year, the issue of a purchase card being used for personal use was brought forth, which along with the continued paying of bills with no receipts, spurred the town’s auditors, BDO Dunwoody, to have the Administration and Finance executive committee conduct an internal audit of mayor and council expenses.
The transaction done for personal use was paid for prior to the internal audit, which followed guidelines under the Revenue Canada Income Tax Act.
“This means you have to have receipts, you have to have proper documentation, your travel expenses, everything, and that was not done,” said Coun. Avis.
“And I feel if you look through all the records, it seems to be one person.”
Coun. Tannis Drysdale noted at Monday night’s meeting that the review turned up more than $5,000 in expenses incurred by the mayor in 2004, and less so in 2005, with no source documents.
Treasurer Laurie Witherspoon said most of these expenses were incurred in 2004. And since the purchase cards were implemented in January, 2005, source documents have been included.
But Coun. Avis said there must be documentation for every expense—and that it’s council’s duty to look after the taxpayers’ money.
“In most businesses, you don’t pay bills if you don’t have receipts,” he remarked. “We don’t have receipts for a lot of things showing on the schedules. Now is that right or is that wrong?
“I don’t think council should shove it on the shelf,” added Coun. Avis.
“In regards to the credit card policy that didn’t exist at that time, and in regards to approval when there was no formal approval process, the overall purpose of having a source document is to ascertain what monies are spent so you know where they’re coded,” said CAO Mark McCaig, adding source documents also are needed for the town to claim GST on some purchases.
McCaig stressed that in any case in the past when there has been no source document, the expense was brought forward and questioned by administration, and more recently after policy changes, by council.
“In the absence of a formalized credit card policy, you do your best to garner a source document, and administration did that,” he noted.
“If council’s of a mind to have these unsubstantiated claims paid back, then say so,” said Coun. Rick Wiedenhoeft.
“But I’d like to alleviate the fears of the public by saying that since this matter was brought to the attention of mayor and council, and there was an internal audit, all claims were substantiated by receipts and have been done right in the past year.
“Unless council wants to force payment of those unsubstantiated bills, we should move forward,” he added.
“I have concerns about no source documents with public money,” said Coun. Drysdale.
“To suggest that you have concerns about them would suggest that perhaps someone did something inappropriately or illegally. And I’m certain that’s not the suggestion you’re making,” replied Mayor Onichuk.
“If there’s a direction on this to have policies looked at or in place, that’s fine. Otherwise, let’s move on,” he added. “All of these matters were approved by council.”
Coun. Todd Hamilton noted that when any other members of council other than the mayor have travelled, they’ve always turned in source documents.
“Just bring in the receipts. I’m sure there’s no problem,” he added.
Mayor Onichuk replied that all receipts available were brought in, and explanation was provided for those that were lost.
“Source documents weren’t a requirement, there was no policy. I asked specifically for the policies and there wasn’t any,” the mayor added, noting when he turned in receipts for entertainment purposes (a business lunch, for instance), he made sure to write who was his guest on the back of the receipt.
But Coun. Avis said he felt the report listing the undocumented expenses should go back to the Administration and Finance executive committee, which then should review them and decided which can be written off and which ones should be paid for by the mayor.
Coun. John Albanese said council should move on.
“From now on, you go out, you get a receipt,” he said. “Let’s start a policy so we know from now on where the money is spent.”
Coun. Hamilton noted he didn’t want to see the issue back at Administration and Finance again, and agreed with Coun. Albanese that council should move on.
But after Monday night’s meeting, Coun. Hamilton said, “Since when do you need a policy in place to be honest.”
The report was received by council by a vote of 6-1. Coun. Avis was the lone dissenter.
“I’ve been on council for nine years,” he said. “When I was sitting there with the previous administration, whenever I travelled for the town, the only time I would get paid for my travel expense is if I supplied proper documentation.
“To say there isn’t a policy is smoke and mirrors,” he argued.
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