SBA financial report ‘inflated’: auditors

SBA members to vote on recommendations at special July 9 meeting

A case of “wishful thinking” has the Sidney Business Association’s financial statements looking inflated.

“Basically where we are now, looking at their most recent statements which were May, many of those should not have been receivables as such. It was wishful thinking basically,” said Richard Talbot of Talbot Consultants, an SBA member on the audit committee reviewing the association’s 2011 financials.

SBA members, concerned about a lack of information in the statements, asked for a review starting in May. A special general meeting for members has been called for July 9 to discuss the audit committee’s findings.

Among those findings, said Angus Matthews, executive director of the Shaw Ocean Discovery Centre (an SBA member) is little marketing was done to bring visitors to tourists.

“The declared objective of the organization is to bring more footsteps to Beacon Avenue,” he said, adding the summer market, which is run by the SBA, is one of the town’s bigger tourist draws.

“In fairness it’s a small organization …[but] it was rather alarming to us that over $100,000 was spent on administration costs.”

At the July 9 meeting, members will discuss the three-person audit committee’s recommendations.

“Our recommendation was to apply common sense and sound business practices and end wishful thinking,” Talbot said. “Obviously that’s going to make the finances look shakier – a deficit really.”

According to the committee, made up of Talbot, Matthews and Jane Powell, owner of Buddies Toys, receivables were four times higher in 2011 than 2010, at $20,145. They were just over $5,000 the year before.

Matthews writes in his summary: “$10,631 was billed out in December, accounting for half of the receivables and significantly inflating the assets just prior to year end.”

“Every board wants to make [the finances] look good to the membership,” Talbot said. “Like Enron, you’re better off to tell them the truth of the situation. Don’t try to pull the wool over their eyes because you’ll get caught.”

 

Related story

SBA finances under the microscope

Just Posted

Esquimalt speed skating week helps province determine find fastest skater

Speed Week takes place on Dec. 17 at Archie Browning arena

Longtime Saanich drama group brings pirates onstage for traditional Christmas pantomime

St. Luke’s Players present Treasure Island Dec. 18 to Jan. 4

Goldstream church offers free festive feast

Gordon United Church says all are welcome to attend Monday’s meal

Sex workers march in downtown Victoria for Red Umbrella Day

Red umbrellas became a symbol of sex workers after an art installation in Italy

MLA Adam Olsen calls for ‘substantial’ changes in provincial economy

Green Party MLA also criticizes gap between government rhetoric and actions

VIDEO: Success of wildlife corridors in Banff National Park has advocates wanting more

Demand for more highway protection escalated after seven elk were killed by a semi-trailer near Canmore

B.C. VIEWS: Hunger does not end with the season

Despite innovations in food distribution, the need is still there in B.C. communities

Sharks beat Canucks 4-2 to snap 6-game skid

Vancouver visits Vegas on Sunday

Fans sing Canadian anthem after sound system breaks at BMW IBSF World Cup

The Canadians in attendance made sure their team and flag were honoured on the podium

VIDEO: Fire destroys Big White Ski Resort chalet

Social media eulogies peg the property, nicknamed “The Pharamacy,” as both loved and hated

Prince George RCMP use bait packages to catch porch pirates over the holidays

First-in-Canada program with Amazon looks to combat parcel theft

Nanaimo mechanical engineer creates thief tracking program

Nanaimo Thief Tracking lets users plot and share information about thefts online

Mayor wants B.C. to institutionalize severely mental ill people who are homeless

Those suffering from mental health conditions, such as schizophrenia, need specialized care, mayor says

Five things of note from Trudeau’s mandate letters to his ministers

Some marching orders come from the Liberal Party’s campaign, while others are new additions

Most Read