Alberta
Audit of supervised consumption site in Lethbridge uncovers $1.6 million unaccounted for
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.
From LifeSiteNews
“If the federal government refuses to abide by the constitution, we will take them to court again to defend our jurisdiction and the thousands of Albertans who work in the petrochemical sector”
Alberta has rejected the Liberal government’s “unconstitutional” federal plastics registry and production limit.
In an April 25 press release, Alberta’s Environment Minister Rebecca Schulz promised to take Liberal Minister of Environment and Climate Change Steven Guilbeault to court over his proposal to create a plastics registry, mandating companies to report their plastic production and implementation.
“If the federal government refuses to abide by the constitution, we will take them to court again to defend our jurisdiction and the thousands of Albertans who work in the petrochemical sector,” Schulz declared.
“This unilateral announcement is a slap in the face to Alberta and our province’s petrochemical industry, and the thousands of Albertans who work in it,” she continued.
Guilbeault’s plan, set to be implemented in September 2025, would mandate that businesses record how much plastic they place on the market in addition to the amount of plastic waste generated on their commercial, industrial, and institutional premises.
Companies would then report that amount to the federal government. The plan exempts small businesses which produce less than one tonne of plastic each year.
However, Schulz explained that the registry would negatively affect Alberta, as “plastics production is a growing part of Alberta’s economy, and we are positioned to lead the world for decades to come in the production of carbon neutral plastics.”
“Minister Guilbeault’s proposal would throw all of that into jeopardy and risk billions of dollars in investments. This includes projects like Dow Chemical’s net-zero petrochemical plant in Fort Saskatchewan, a $9-billion project that will create thousands of jobs,” she warned.
Schulz further pointed out that the mandate will not reduce plastic production since countries such as China will produce more plastic to make up for Canada.
“If the federal government limits plastic production in Canada, other countries like China will just produce more. The only outcome that this federal government will achieve will be fewer jobs in Canada,” she explained.
Schulz’s statement comes after the November decision by the Federal Court to rule in favor of Alberta and Saskatchewan, declaring that Prime Minister Justin Trudeau’s government overstepped its authority by classifying plastic as “toxic” and banning all single-use plastic items, like straws.
Essentially, the ruling overturned Trudeau’s 2022 law which outlawed manufacturing or importing plastic straws, cutlery, and checkout bags on the grounds of government claims that plastic was having a negative effect on the oceans. In reality, most plastic pollution in the oceans comes from a few countries, like India and China, which dump waste directly on beaches or in rivers.
The November ruling was only one of two recent court rulings that have dealt a blow to Trudeau’s environmental laws.
The second ruling came after Canada’s Supreme Court recently sided in favor of provincial autonomy when it comes to natural resources. The Supreme Court recently ruled that Trudeau’s law C-69, dubbed the “no-more pipelines” bill, is “mostly unconstitutional.” This was a huge win for Alberta and Saskatchewan, which challenged the law in court. The decision returned authority over the pipelines to provincial governments, meaning oil and gas projects headed up by the provinces should be allowed to proceed without federal intrusion.
The Trudeau government, however, seems insistent on defying the recent rulings by pushing forward with its various regulations.
Company sentenced for workplace fatality
An oilfield equipment supplier will pay $360,000 related to a workplace fatality.
On Feb. 21, 2024 in the Red Deer Court of Justice, Isolation Equipment Services Inc. pleaded guilty to one charge under the Occupational Health and Safety (OHS) Code for failing to take measures to eliminate the potential danger of equipment or material that was dislodged or moved. The Crown withdrew 28 other charges under OHS legislation. The company was sentenced on April 24.
The charges stem from an incident on a Red Deer construction site on Jan. 13, 2022. A worker operating an overhead crane was positioning a valve bonnet when the equipment released from the rigging, striking and pinning the worker. The worker sustained fatal injuries.
The company will pay $360,000 in total penalties, including a $1,000 fine. Under a creative sentence, $359,000 will be paid to Energy Safety Canada to develop supervisor and competency programs targeting those who work with new, young and inexperienced workers.
The Occupational Health and Safety Act provides a creative sentence option in which funds that would otherwise be paid as fines are directed to an organization or project to improve or promote workplace health and safety.
Both the company and the Crown have up to 30 days to appeal the conviction or penalties.
Alberta’s OHS laws set basic health and safety rules for workplaces across the province. They provide guidance for employers to help them ensure their workplaces are as healthy and safe as possible while providing rights and protections for workers. Charges under OHS laws may be laid when failing to follow the rules results in a workplace fatality or serious injury.
Quick facts
- Jobs, Economy and Trade does not provide sentence documents. These are available through the Red Deer Court of Justice.
- Victim fine surcharges apply to fines payable to the Crown. The $1,000 fine in this case includes the 20 per cent surcharge. Surcharges are not applied to payments to other entities, in this case Energy Safety Canada, under creative sentences.
- Fatality investigation summaries are posted to alberta.ca/fatality-
investigation-reports 60 to 90 days after court proceedings conclude.
Related information
Japanese study finds ‘significant increases’ in cancer deaths after third mRNA COVID doses
Maxime Bernier warns Canadians of Trudeau’s plan to implement WEF global tax regime
A Coup Without Firing a Shot
WHO Official Admits the Truth About Passports
-
Censorship Industrial Complex2 days agoDesperate Liberals move to stop MPs from calling Trudeau ‘corrupt’
-
conflict2 days agoCol. Douglas Macgregor torches Trump over support for bill funding wars in Ukraine and Israel
-
Frontier Centre for Public Policy1 day agoThe end of Canada: The shift from democracy to totalitarian behavior in the ‘pandemic era’
-
Alberta22 hours agoAlberta rejects unconstitutional cap on plastic production
-
Energy2 days agoReflections on Earth Day
-
Great Reset2 days agoTerrorists Welcome: Chronic counterterrorism lapses at the border demand investigation
-
Business21 hours agoUN plastics plans are unscientific and unrealistic
-
conflict2 days agoCol. Douglas Macgregor: US is ‘facing disaster’ as it funds overseas wars while bankrupt