DIRECTOR OF FINANCE WORK BLOG - sixth ENTRY

From my WORK BLOG... The meeting with the auditors went well. We are working towards drafting and signing a letter of engagement with Tompkins, Wozny, Miller & Co.

One of the key things surrounding this audit will be the development of a contract with the auditors that will ensure openness and transparency throughout the audit process. The details are currently being worked out, but essentially, should any student have any concern with how the audit is going - they will be able to find the answers they are looking for. It will also ensure that the Post Audit Memorandum will be an open and public document - so that no matter what it says (good or bad), students will know about it.

We also learned that we are probably going to need more time for the regular audit. That is, the KSA and Tompkins may have to issue a letter at the March AGM providing an update on the audit and a revised timeline for its completion. The reason for this ties back to the issues I discussed in a previous post - a lack of information about the KSA finances due to the very poor record keeping abilities of the previous administration. We literally have to recreate our books from scratch - documenting as many expenditures as we can based on what information we have on hand. It also involves contacting suppliers to see if we can get copies of invoices or receipts. So a lot of work has to be done to ensure our books are in proper order. So the forensic audit will be ready for presentation at the AGM, but the regular audit may not be. If the regular audit is not complete, as soon as it is complete, the KSA would hold a special general meeting at which that audit would be presented to the membership.

Another thing I want to work on is bringing some changes to the mandate of the finance committee, so that it has some powers to review and monitor the auditing process. Many non-profits (including Kwantlen) have audit committees that are charged with this task. Another new duty will include setting up processes whereby the committee would review and make recommendations to the Executive and Council on how to address areas raised by the audit, the financial statements and the post audit memorandum.

It’s just one more step towards making the KSA as open and transparent as possible.

Cheers,

- Steve

DIRECTOR OF FINANCE WORK BLOG - fifth POST

From my WORK BLOG... After having a muchly needed sleep-in, I'm now getting ready to meet with the KSA lawyers this afternoon in downtown Vancouver. For those of you who may not read our minutes and agendas too closely, the KSA is represented by David B. Borins with Farris, Vaughan, Wills & Murphy, LLP. Information on David can be found here:

http://www.farris.com/lawyer.aspx?LawyerKey=7

Information on the firm in general can be found here:

http://www.farris.com/our_firm.aspx

After that meeting, we'll be meeting with Tompkins, Wozny, Miller & Co., an accounting firm that specializes in delivering audit, tax and consulting services. The firm does the auditing of many student unions and other non-profit organizations across BC. They were selected by the membership to continue as the KSA's regular auditors at the last AGM held in March 2005. Specifically, we will be meeting with them to discuss doing an audit for the 2006 fiscal year. The firm's site appears to be currently unvailable but has worked in the past:

http://www.twmca.com/

Some of you may know that the KSA is currently undergoing a forensic audit by Price Waterhouse Coopers (PWC) and as such, you may be asking why we are meeting with Tompkins, Wozny, Miller & Co. (Wozny). Well, PWC is handling a forensic audit, but a forensic audit is a very different animal from the regular audit that Wozny is performing. Specifically (and correct me if I'm wrong):

the period of time covered is different. The forensic audit is covering a period of time spanning from late April 2005 until October 31, 2006. The regular audit is only concerned with activities that occurred from January 1, 2006 until December 31, 2006. what each audit looks for is different. The forensic audit is more global and looks at issues of fraud and maladministration. A regular audit is a test of how sound an organization's financial controls are and ensures that an organization's financial statements are based on proper accounting practices and record-keeping.

The KSA is currently working on developing financial statements documenting what happened in 2006. It has been a difficult task as the former administration kept very poor financial records. For example, our financial administrator, with the help of a few 4th year Kwantlen accounting students the KSA hired, is having to re-create our general ledger for 2006. The general ledger is usually kept up to date on a daily and weekly basis and is a complete record of the transactions. Supporting documentation such as meeting minutes or approved budgets go alongside the ledger as well as receipts, expense reports, etc. A lot of this was not done by the former administration and as such; we have to closely examine what records are on hand, and compare that to banking information obtained from the KSA's bankers at CIBC.

So it's a lot of work – but it is being done and soon it will be complete. And then we hope to invite Tompkins, Wozny, Miller & Co. to come and examine our work and the financial statements we develop to produce our audited financial statements and post-audit memorandum.

For more information on how badly the KSA was being run under the former administration, refer to the post-audit memorandum that was issued for 2005:

http://www.steveleenow.net/kwantlen/cbrppdocs/financialstatements/2005/2005postauditmemo.pdf

You can also find complete audit documents spanning back to 1994 on my website:

http://www.steveleenow.net/kwantlen/cbrppdocs/financialstatements/index.htm

Eventually these documents will also be available in a similar format on the KSA’s website.

Our deadline to finish both the forensic audit and the regular audit is mid-March.

If you have any questions about the auditing process – feel free to comment here in the forum, or come see our Financial Administrator Rolando Navarro or myself during our office hours. Also, the Finance Committee that meets regularly discusses these issues – and all meetings are open to the Kwantlen community.

Cheers,

- Steve

DIRECTOR OF FINANCE WORK BLOG - POST 4.0

From my WORK BLOG... It's 9pm and I'm still at the KSA... I did some more work tonight on coming up with a recommendation for Monday's Executive Board Meeting regarding the KSA DAYCARE BURSARY. The following is the text of the report and recommendation I have made to EBOD:

-------------------------------------------------------------------------------- Daycare Bursary…

The following information was received from the foundation office:

“The Daycare Bursary was established April 4, 2005 and is still active. $5,000 towards this award was paid on April 5, 2005. The criteria is as follows:

Kwantlen Student Association Day Care Bursary: The Kwantlen Student Association offers 10 bursaries annually to Kwantlen students, enrolled part-time or full-time studies in upgrading or university transfer courses. Criteria: Funds must be directed towards daycare related expenses. Documentation must be attached to the application form confirming a child's registration in a daycare facility. Amount: 10 x $500. Application Deadline: Available throughout the year. Application forms are available at all Financial Awards Offices.

In 2006, the KSA administered this award on its own. It appears that they gave out amounts ranging from $250 to $500 and up. A complete listing of what was given out is not yet available.

In the 2007 budget, Council expressed a wish that:

· the day care bursary created in 2005 be continued, even though no dedicated funding currently exists for any awards or bursaries (previously $1 per student per semester had been allocated towards bursaries);

· $6,000 be allocated to a “Young Parents Bursary” (this is the line item that existed in the 2005 budget);

· the bursary be administered through Financial Awards; and

· fundraising is conducted to raise more funds for support of KSA awards & bursaries.

It is my recommendation that the KSA maintain the Day Care Bursary as setup in April 2005 but alter the amounts given so that more students can benefit to be as follows - 10 x $250; 5 x $400; 3 x $500.

BIRT the Executive Board authorize the immediate release of $6,000 to the Kwantlen University College Financial Awards office in support of the Kwantlen University College Daycare Bursary to be given out in 2007.

BIFRT the description be changed to read: “The Kwantlen Student Association offers 18 bursaries annually to Kwantlen students, enrolled part-time or full-time studies in upgrading or university transfer courses.”

BIFRT the criteria and application deadlines as set in April 2005 remain the same but that the amount given be changed from “10 x $500” to “10 x $250; 5 x $400; 3 x $500.”

-------------------------------------------------------------------------------- Other Awards established in 2005…

Council has allocated funding towards supporting a number of other awards that are given out in the fall. These awards were setup in September 2006 by the previous administration and the KSA is committed to funding them for five (5) years. We are in year two (2) of these awards.

I am currently reviewing the criteria of these awards to ensure they do not “clash” with any currently existing awards and will bring recommendations for any (minor) amendments and for the release of this funding to the Kwantlen Foundation to EBOD within two (2) weeks.

It is my hope that the KSA can fundraise enough money this year and in the years ahead to turn some of these newly created awards into endowed awards that will forever be on the books as awards created by the KSA, but which will require no further funding (unless the KSA wishes to add more money to any endowed fund so that more awards can be given out).

Furthermore, any additional fundraising could go towards offering more Daycare bursaries in 2007.

-------------------------------------------------------------------------------- Additional Notes

When I sent the above report to the Executive and Council, I added two points that the Executive should consider:

1. Perhaps EBOD should consider on Monday directing the financial awards office to ensuring that the funds are available year long (to avoid all the funds going out the door right away).

2. The KSA should see if these funds can be matched by any other group (government or Kwantlen). I've asked the financial awards office, but I have yet to hear back from them. Laura - perhaps you can bring this up at your next meeting with Dr. Ross - ask him if Kwantlen would match the $6,000 we are giving for this, so that the final amount available for the bursary is $12,000?

... so hopefully the Bursary is one step closer to being re-established. Prior to 2004, the KSA used to have other bursaries and it is the KSA's hope that all bursaries will be re-established within the next year or so -this will be made very easy if funding for bursaries is restored in the upcoming referendum.

- Steve

DIRECTOR OF FINANCE WORK BLOG - POST 3.0

From my WORK BLOG... Today has been somewhat productive...

- Met with Desmond, Titus and a consultant the KSA has hired to assist with CUPE collective bargaining negotiations that have been ongoing;

- Sorted more paperwork; and

- Worked on a number of HR budget amendments that will be brought to Council very shortly (when the budget was approved, it was noted that there would be some amendments that would have to come forward in the HR staffing area. These amendments will have the effect of lowering the contingency and the full text of these amendments will appear in the up-coming Council agenda);

- Researched possibly amending the budget to lift the tuition benefit that executive board members receive (currently, executive board members receive $700 per year provided they can show proof of enrolment in courses. This was set back in 1999 or 2000, when tuition was approximately $40 per credit. I think it would be fair to see this increased to approximately $1,800 per year as tuition has increased by more than 100% since the $700 level was set). There are other terms attached to this as well, as laid out in our regulations:

http://www.kusa.ca/index.php?pid=148#s9

- Researched the creation of a new benefit that would hopefully give more incentive to elected officials for attending meetings of council [how would this work? Well, that is being drafted... but the executive felt last fall that this would be a good idea. Right now, I'm thinking we could set it up so that Campus Council Directors, Representatives as well as Liaisons could possibly get $25 for every Council meeting they attend. There are approximately 24 meetings a year (2 per month) and the money would be given out at the end of the year (or at the end of an official's term of office), and it would be up to the general manager to handle the dispertion of the funds... I know what you may be thinking - it is the duty of all elected offiials to attend these meetings. I agree. But the wages for elected officials is very low and there are nearly no benefits. I do believe that to attract good people, they should be fairly rewarded. And I'm not talking about increasing wages or benefits by crazy amounts as happened last year under the previous administration, as documented on my site:

http://www.steveleenow.net/kwantlen/ops/finances/payincreases.htm

In fact, no lifts other lifts to the base salary / wages of elected officials is being entertained for 2007 as it cannot technically happen until 2008].

The Finance Committee will be reviewing all salaries / wages to try and provide a minor lift to them for the 2008 fiscal year. If this is a topic that interests you - attend our meetings!

In fact, the dates of the next two Finance Committee meetings were also set by me today, as follows:

- Tuesday, February 27, 2007 - 2pm SURREY - Thursday, March 8, 2007 - 2pm SURREY

I also got my business cards today - YEAH!

Time to head home...

- Steve