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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

Alberta’s oil bankrolls Canada’s public services

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This article supplied by Troy Media.

Troy Media By Perry Kinkaide and Bill Jones

It’s time Canadians admitted Alberta’s oilpatch pays the bills. Other provinces just cash the cheques

When Canadians grumble about Alberta’s energy ambitions—labelling the province greedy for wanting to pump more oil—few stop to ask how much
money from each barrel ends up owing to them?

The irony is staggering. The very provinces rallying for green purity are cashing cheques underwritten not just by Alberta, but indirectly by the United States, which purchases more than 95 per cent of Alberta’s oil and gas, paid in U.S. dollars.

That revenue doesn’t stop at the Rockies. It flows straight to Ottawa, funding equalization programs (which redistribute federal tax revenue to help less wealthy provinces), national infrastructure and federal services that benefit the rest of the country.

This isn’t political rhetoric. It’s economic fact. Before the Leduc oil discovery in 1947, Alberta received about $3 to $5 billion (in today’s dollars) in federal support. Since then, it has paid back more than $500 billion. A $5-billion investment that returned 100 times more is the kind of deal that would send Bay Street into a frenzy.

Alberta’s oilpatch includes a massive industry of energy companies, refineries and pipeline networks that produce and export oil and gas, mostly to the U.S. Each barrel of oil generates roughly $14 in federal revenue through corporate taxes, personal income taxes, GST and additional fiscal capacity that boosts equalization transfers. Multiply that by more than 3.7 million barrels of oil (plus 8.6 billion cubic feet of natural gas) exported daily, and it’s clear Alberta underwrites much of the country’s prosperity.

Yet many Canadians seem unwilling to acknowledge where their prosperity comes from. There’s a growing disconnect between how goods are consumed and how they’re produced. People forget that gasoline comes from oil wells, electricity from power plants and phones from mining. Urban slogans like “Ban Fossil Fuels” rarely engage with the infrastructure and fiscal reality that keeps the country running.

Take Prince Edward Island, for example. From 1957 to 2023, it received $19.8 billion in equalization payments and contributed just $2 billion in taxes—a net gain of $17.8 billion.

Quebec tells a similar story. In 2023 alone, it received more than $14 billion in equalization payments, while continuing to run balanced or surplus budgets. From 1961 to 2023, Quebec received more than $200 billion in equalization payments, much of it funded by revenue from Alberta’s oil industry..

To be clear, not all federal transfers are equalization. Provinces also receive funding through national programs such as the Canada Health Transfer and
Canada Social Transfer. But equalization is the one most directly tied to the relative strength of provincial economies, and Alberta’s wealth has long driven that system.

By contrast to the have-not provinces, Alberta’s contribution has been extraordinary—an estimated 11.6 per cent annualized return on the federal
support it once received. Each Canadian receives about $485 per year from Alberta-generated oil revenues alone. Alberta is not the problem—it’s the
foundation of a prosperous Canada.

Still, when Alberta questions equalization or federal energy policy, critics cry foul. Premier Danielle Smith is not wrong to challenge a system in which the province footing the bill is the one most often criticized.

Yes, the oilpatch has flaws. Climate change is real. And many oil profits flow to shareholders abroad. But dismantling Alberta’s oil industry tomorrow wouldn’t stop climate change—it would only unravel the fiscal framework that sustains Canada.

The future must balance ambition with reality. Cleaner energy is essential, but not at the expense of biting the hand that feeds us.

And here’s the kicker: Donald Trump has long claimed the U.S. doesn’t need Canada’s products and therefore subsidizes Canada. Many Canadians scoffed.

But look at the flow of U.S. dollars into Alberta’s oilpatch—dollars that then bankroll Canada’s federal budget—and maybe, for once, he has a point.
It’s time to stop denying where Canada’s wealth comes from. Alberta isn’t the problem. It’s central to the country’s prosperity and unity.

Dr. Perry Kinkaide is a visionary leader and change agent. Since retiring in 2001, he has served as an advisor and director for various organizations and founded the Alberta Council of Technologies Society in 2005. Previously, he held leadership roles at KPMG Consulting and the Alberta Government. He holds a BA from Colgate University and an MSc and PhD in Brain Research from the University of Alberta.

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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Alberta

Alberta’s industrial carbon tax freeze is a good first step

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By Gage Haubrich

The Canadian Taxpayers Federation is applauding Alberta Premier Danielle Smith’s decision to freeze the province’s industrial carbon tax.

“Smith is right to freeze the cost of Alberta’s hidden industrial carbon tax that increases the cost of everything,” said Gage Haubrich, CTF Prairie Director. “This move is a no-brainer to make Alberta more competitive, save taxpayers money and protect jobs.”

Smith announced the Alberta government will be freezing the rate of its industrial carbon tax at $95 per tonne.

The federal government set the rate of the consumer carbon tax to zero on April 1. However, it still imposes a requirement for an industrial carbon tax.

Prime Minister Mark Carney said he would “improve and tighten” the industrial carbon tax.

The industrial carbon tax currently costs businesses $95 per tonne of emissions. It is set to increase to $170 per tonne by 2030. Carney has said he would extend the current industrial carbon tax framework until 2035, meaning the costs could reach $245 a tonne. That’s more than double the current tax.

The Saskatchewan government recently scrapped its industrial carbon tax completely.

Seventy per cent of Canadians said businesses pass most or some industrial carbon tax costs on to consumers, according to a recent Leger poll.

“Smith needs to stand up for Albertans and cancel the industrial carbon tax altogether,” Haubrich said. “Smith deserves credit for freezing Alberta’s industrial carbon tax and she needs to finish the job by scrapping the industrial carbon tax completely.”

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