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Alberta

Audit of supervised consumption site in Lethbridge uncovers $1.6 million unaccounted for

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From the Province of Alberta

ARCHES audit finds serious financial mismanagement

Senior executive made $342,943 in 2019

The province has released the audit of the ARCHES supervised consumption site in Lethbridge and as a result of its findings, will be ending its grant funding agreement with the organization.

The independent accounting firm Deloitte conducted a grant expenditure audit after the Alberta government learned of possible financial irregularities within the ARCHES organization.

The review substantiated allegations of asset and funding misappropriation, non-compliance with grant agreements, and inappropriate governance and organizational operations. The ARCHES organization was found to have seriously mismanaged taxpayer funds meant for the most vulnerable in our society.

“It is disturbing and extremely disappointing to me that taxpayer funds allocated to this organization in order to serve the most vulnerable in Lethbridge would be used for European conferences, expenses for retreats, entertainment and gift cards. Our government will not stand idly by while millions in taxpayer funds are missing or misappropriated.”

Jason Luan, Associate Minister of Mental Health and Addictions
Below is a summary of the audit’s findings:

$1,617,094 unaccounted for due to missing documentation for expenditures from 2017 to 2018.
$13,000 of interest off ARCHES bank accounts was used to fund parties, staff retreats, entertainment and gift cards.
A senior executive’s compensation totalled $342,943 for calendar year 2019. This includes $70,672 in overtime for fiscal year 2019-20. The grant agreement allows for a salary of $80,000.
The Everyone Comes Together (ECT) program staff salaries and benefits also exceeded the amount allocated by the grant agreement by $16,000.
The number of ARCHES employees is greater than allowed by the grant agreement. ARCHES maintained up to 126 employees. However, the exact number could not be verified.
$4,301 spent on European travel for management to attend a conference in Portugal.
Thousands of dollars in unverifiable travel expenses, including trips charged to company credit cards but not recorded in the ledger.
A senior executive’s family member was hired, earning $9,900. The auditors could not locate a resume or personnel file to verify any qualifications.
$7,557 for management retreats, including meals and mileage where documentation for spending was unclear.
The grant agreement requires the organization to maintain the funding received from Alberta Health within a separate bank account; however, the audit revealed that it was comingled with other funding sources. As a result of ARCHES comingling their accounts, the auditors could not verify thousands of dollars of expenses.
Proper personal conflict of interest declarations were not recorded when related individuals or vendors were hired or utilized.
Vendors were repeatedly secured in secrecy with a lack of transparency and accountability.
No petty cash reconciliations have been completed.
$1,129 was used to buy gift cards for board members for The Keg, iTunes, Boston Pizza, Earls, Gap, Shell, Chapters, Cineplex, Amazon, Starbuck’s, Tim Hortons, MasterCard, and Bath and Bodyworks. The expense was recorded as “Gift cards – Board Members.”
$2,100 was spent on gift cards to The Oil Changer – a business owned by a senior executive’s spouse.
$2,205 was spent on a television with no receipt documentation to support the purchase.
The auditors were unable to complete the grant expenditure review in respect to all allegations received or provide a complete financial value attributable to each allegation, due to the state of ARCHES’ records and the related outstanding documents.

Due to missing funds and unverifiable transactions, as well as allegations, which could not be investigated in the scope of this audit, government will consult with law enforcement to determine whether further investigation is warranted.

To ensure people struggling with addiction can continue to receive services, government has asked Alberta Health Services to set up a temporary mobile overdose prevention site in Lethbridge with the goal of seamlessly transitioning services. Government will also be adding three recovery coaches to the region to assist in expediting individuals into treatment.

Quick facts

ARCHES has received more than $14.4 million in taxpayer dollars over the past two years.
In June, government announced an additional $4 million over four years to expand access to the virtual opioid dependency program to allow Albertans to use telehealth technology to access treatment for opioid use disorder.
Also announced was the opioid agonist therapy gap coverage program to cover the costs of medications to treat opioid use disorder for Albertans waiting to receive coverage through a supplementary health benefit plan.
As part of the $140-million mental health and addiction commitment to create 4,000 spaces, government has announced additional treatment spaces at Poundmaker’s Lodge Treatment Centres, Sunrise Healing Lodge, Fresh Start Recovery Centre, Thorpe Recovery Centre, and the Blood Tribe Bringing the Spirit Home detox centre.

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Alberta

From Underdog to Top Broodmare

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WATCH From Underdog to Top Broodmare (video)

Executive Producers Jeff Robillard (Horse Racing Alberta) and Mike Little (Shinelight Entertainment)

What began as an underdog story became a legacy of excellence. Crackers Hot Shot didn’t just race — she paved the way for future generations, and in doing so became one of the most influential producers the province has known.

The extraordinary journey of Crackers Hot Shot — once overlooked, now revered — stands as one of Alberta’s finest success stories in harness racing and breeding.

Born in humble circumstances and initially considered rough around the edges, Crackers Hot Shot overcame long odds to carve out a career that would forever impact the province’s racing industry. From a “wild, unhandled filly” to Alberta’s “Horse of the Year” in 2013, to producing foals who carry her spirit and fortitude into future generations.

Her influence ripples through Alberta’s racing and breeding landscape: from how young stock are prepared, to the aspirations of local breeders who now look to “the mare that did it” as proof that world-class talent can emerge from Alberta’s paddocks.

“Crackers Hot Shot, she had a tough start. She wasn’t much to look at when we first got her” — Rod Starkewski

“Crackers Hot Shot was left on her own – Carl Archibald heard us talking, he said ‘I’ll go get her – I live by there’. I think it took him 3 days to dig her out of the snow. She was completely wild – then we just started working on her. She really needed some humans to work with her – and get to know that people are not scary.” — Jackie Starkewski

“Crackers Hot Shot would be one of the top broodmares in Albeta percentage wise if nothing else. Her foals hit the track – they’re looking for the winners circle every time.” — Connie Kolthammer

Visit thehorses.com to learn more about Alberta’s Horse Racing industry.

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Alberta

Gondek’s exit as mayor marks a turning point for Calgary

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This article supplied by Troy Media.

Troy MediaBy

The mayor’s controversial term is over, but a divided conservative base may struggle to take the city in a new direction

Calgary’s mayoral election went to a recount. Independent candidate Jeromy Farkas won with 91,112 votes (26.1 per cent). Communities First candidate Sonya Sharp was a very close second with 90,496 votes (26 per cent) and controversial incumbent mayor Jyoti Gondek finished third with 71,502 votes (20.5 per cent).

Gondek’s embarrassing tenure as mayor is finally over.

Gondek’s list of political and economic failures in just a single four-year term could easily fill a few book chapters—and most likely will at some point. She declared a climate emergency on her first day as Calgary’s mayor that virtually no one in the city asked for. She supported a four per cent tax increase during the COVID-19 pandemic, when many individuals and families were struggling to make ends meet. She snubbed the Dec. 2023 menorah lighting during Hanukkah because speakers were going to voice support for Israel a mere two months after the country was attacked by the bloodthirsty terrorist organization Hamas. The
Calgary Party even accused her last month of spending over $112,000 in taxpayers’ money for an “image makeover and brand redevelopment” that could have benefited her re-election campaign.

How did Gondek get elected mayor of Calgary with 176,344 votes in 2021, which is over 45 per cent of the electorate?

“Calgary may be a historically right-of-centre city,” I wrote in a recent National Post column, “but it’s experienced some unusual voting behaviour when it comes to mayoral elections. Its last three mayors, Dave Bronconnier, Naheed Nenshi and Gondek, have all been Liberal or left-leaning. There have also been an assortment of other Liberal mayors in recent decades like Al Duerr and, before he had a political epiphany, Ralph Klein.”

In fairness, many Canadians used to support the concept of balancing their votes in federal, provincial and municipal politics. I knew of some colleagues, friends and family members, including my father, who used to vote for the federal Liberals and Ontario PCs. There were a couple who supported the federal PCs and Ontario Liberals in several instances. In the case of one of my late
grandfathers, he gave a stray vote for Brian Mulroney’s federal PCs, the NDP and even its predecessor, the Co-operative Commonwealth Federation.

That’s not the case any longer. The more typical voting pattern in modern Canada is one of ideological consistency. Conservatives vote for Conservative candidates, Liberals vote for Liberal candidates, and so forth. There are some rare exceptions in municipal politics, such as the late Toronto mayor Rob Ford’s populistconservative agenda winning over a very Liberal city in 2010. It doesn’t happen very often these days, however.

I’ve always been a proponent of ideological consistency. It’s a more logical way of voting instead of throwing away one vote (so to speak) for some perceived model of political balance. There will always be people who straddle the political fence and vote for different parties and candidates during an election. That’s their right in a democratic society, but it often creates a type of ideological inconsistency that doesn’t benefit voters, parties or the political process in general.

Calgary goes against the grain in municipal politics. The city’s political dynamics are very different today due to migration, immigration and the like. Support for fiscal and social conservatism may still exist in Alberta, but the urban-rural split has become more profound and meaningful than the historic left-right divide. This makes the task of winning Calgary in elections more difficult for today’s provincial and federal Conservatives, as well as right-leaning mayoral candidates.

That’s what we witnessed during the Oct. 20 municipal election. Some Calgary Conservatives believed that Farkas was a more progressive-oriented conservative or centrist with a less fiscally conservative plan and outlook for the city. They viewed Sharp, the leader of a right-leaning municipal party founded last December, as a small “c” conservative and much closer to their ideology. Conversely, some Calgary Conservatives felt that Farkas, and not Sharp, would be a better Conservative option for mayor because he seemed less ideological in his outlook.

When you put it all together, Conservatives in what used to be one of the most right-leaning cities in a historically right-leaning province couldn’t decide who was the best political option available to replace the left-wing incumbent mayor. Time will tell if they chose wisely.

Fortunately, the razor-thin vote split didn’t save Gondek’s political hide. Maybe ideological consistency will finally win the day in Calgary municipal politics once the recount has ended and the city’s next mayor has been certified.

Michael Taube is a political commentator, Troy Media syndicated columnist and former speechwriter for Prime Minister Stephen Harper. He holds a master’s degree in comparative politics from the London School of Economics, lending academic rigour to his political insights.

Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country

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