We wanted to clear up the best we could Ms. Rhonda Barters comments of the $18 million spent by the Town last year. She certainly made it sound she did some digging for it, and that it shows way more money spent than reported, almost like that something was being hidden. Well, we found the documents, right where she said she found them too... online at creston.ca under financial documents. It is the 2013 Financial Report and pages 22, 23, 24 of the document. We read it, verified our initial thoughts from reviewing it and will try to explain. Page 22 (attached) first is the important sheet before jumping to adding up the numbers on the next page. The sheet has four points listing out aggregate financial information, such as the first one stating Alphabetical List of Suppliers who received Aggregate Payments exceeding $25,000 Our first reaction was, yes, it does equal close to $18 million, but basic english also told us that was the aggregate, or totals combined of the financial transactions. In other words, every dollar that comes into the hands of the Town must be accounted for, including the money that doesnt belong to the Town and certainly not part of their budget. So, page 23 (attached) is the list that Ms. Barter was referring to and it is pretty clear that Ms. Barter doesnt understand this at all. We were curious, so we googled and made some phone calls, especially since one could assume that the Town paid $4.6 million to Raymond James, who ever he is. Well, google reveals Raymond James is a big investment firm. So, we verified that the Town in 2013 moved existing investments of the Towns from one investment firm to another because this was a better opportunity for growing the towns invested funds. In other words, the $4.6 million was not money spent, it was money being moved from one bank account to another. A financial transaction. Part of the aggregate transactions that must be accounted for. Makes sense, so we know that at least that much money wasnt being paid out as Ms. Barter accused the mayor at the forum. Next is the rest of the list, which we quickly could make heads and tails of, and laughed several times, as Ms. Barter stated at the forum she wants to go through this list, and break it down to verify that the Town is getting the best deal it can get, insinuating her careful eye will save the town some money, or it might be needless. Well, lets go through this list on page 23 (attached)... We mentioned Raymond James, the next is Maple Reinders, paid $4.3 million which we found out to be the general contractor that was completing the sewer treatment plant over the 2012 and 2013 taxation years. Next is Regional District of Central Kootenay. The Town actually has to collect their taxes from the municipal residents on their tax bill. There is also money for the province such as School Taxes, money for East Kootenay Regional Health, and so forth. None of this money belongs to the Town, but is collected when you walk in and pay your property taxes. Remember that on your property tax bill that the town gets less than half of what is being paid. They are collecting money for other levels of government and have to send that payment to them. Well, this list covers many of those transactions, as they should track all financial transactions. Becoming part of the aggregate transactions or cheques that the town had to write. We began laughing when we see the Receiver General, must be the money withheld from the employees to be submitted, like income tax submissions and employment insurance. We pictured Ms. Barter phoning CRA and attempting to see if she could get a better deal as she worked down the list. Other items out of control of the Town on the list, municipal pension plans that employees contribute (although a portion is paid by the town, the employee pays too) and all these financial transactions need to be accounted for creating an aggregate list. Further down the list, there are names of contractors that were awarded contract work for the Town, the company who supplies fuel and so forth down the list. These would of made up the expenses of the Town in the 2013 budget. Flip back over to the first page, the total aggregate transactions, in the middle of the page it shows the subtracting of financial transactions of the (money in and money out that is not part of the budget such as RDCK taxes, etc) and you end up with the expenses of the Town for the 2013. That is clearly listed as $8.8 million, as the mayor said it was. Just below that on Page 22, it has a list of bullet points, that says what we just explained, even including the cash transaction from one financial institution to another. Ms. Barter, you stated you are working on finishing a bachelor degree and applaud you for it, but you never said you were working on your CA or CGA designation, so we will take the work of the CA who works for the town and the CA and CGAs who audit the work every year to ensure that no money of the public goes missing. We found $10 million of the $18 million with google and a phone call (two actually). There is also some information online that explains how governments have requirements to manage public funds. We are feeling comfortable now that the town is managing those funds as they should. We dont understand one comment by Ms. Barter on her requesting monthly financial statements from the Town. Financial Statements are done annually. It would be pointless to print a monthly Income / Expense statement (which would be our guess of what she means) as the town doesnt have income in and expenses out tracked like Simply Accounting... and really, if the Town budgets to spend $100 this year on buying something, we are trying to understand what difference it would make what month it is purchased in... We have tried to understand what your reasoning is, but couldnt figure it out... government doesnt do their books like a little business or personal budget at home as it is slightly more complicated with more rules according to everything we could ascertain.
Posted on: Sun, 09 Nov 2014 19:10:41 +0000
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