Whitehorse Daily Star

City wants to know how society spent money

The city will pay up to $15,000 to find out how government money and various grants that went to the Great Northern Ski Society (GNSS) was spent.

By Stephanie Waddell on October 8, 2013

The city will pay up to $15,000 to find out how government money and various grants that went to the Great Northern Ski Society (GNSS) was spent.

Council voted 6-1 Monday evening to go ahead with the report that would be done by a third party auditor with a maximum of $15,000 to be spent on the report.

Coun. Kirk Cameron was the lone vote against the motion, brought forward by Mayor Dan Curtis, arguing the city's efforts should be spent on assisting the Friends of Mount Sima in its efforts to have the ski hill open for winter.

The GNSS, which has operated Mount Sima since it opened in the 1990s, closed the hill last July, its second summer operating an adventure park, amid financial strains after the city refused repeated requests for funding to keep the hill going.

The city did fund close to $200,000 to pay off the debt on the chairlift with the title for the lift being transferred to the city, with the Yukon government funnelling about the same amount through the city to pay off local creditors.

The GNSS has been focused on paying off debt and dissolving its society.

Meanwhile, the Friends Of Sima group has formed with a focus on reopening the hill for the winter season.

After council's most recent 4-2 vote against funding (Cameron and Coun. John Streicker being in favour of the funding), Softball Yukon announced it would provide the Friends Of Sima with a $20,000 donation and a $50,000 bridge loan, with the group continuing its efforts to raise money through a pledge drive for season pass purchases.

At last night's council meeting, Cameron told his colleagues he was having trouble understanding how this report would help the Friends Of Sima get things up and running for the winter.

The GNSS books are available and the city had two staffers on the GNSS board, he pointed out.

This kind of study could end up being a "distraction” from the focus that should be given to the hill reopening, Cameron said.

As Curtis argued though, and other council members agreed, the study will provide information that could help ensure the hill's future operators can learn from this experience.

The mayor repeated several times that the study "is not a witch-hunt”, but rather proposed as a way to help the hill operate years into the future.

He noted one of the biggest questions he has, for example, is why nearly $200,000 was needed to pay off the chairlift when capital funding in the millions was coming from government sources.

Coun. Mike Gladish suggested that there are often matching funds that have to be put forward by the receiver (in this case, the GNSS) of such funds.

That could explain why there was still money owed on the lift, Gladish said, also noting he would like to see the issue looked at.

Other council members agreed the information could prove beneficial for the hill in the future.

Coun. Betty Irwin was on the previous council when it voted to provide funding for the lift (though she voted against the funding at that time).

Last night, she noted her reservations at that time in stating her support for the study.

The city, in the future, should look carefully at the way such processes are conducted, Irwin said.

Curtis had initially suggested a full audit be done on GNSS's books. When he learned of the significant cost of that, he proposed the specified procedures report that will now go ahead.

The report will get the information the city wants without the higher cost, he said.

As it was summed up in the administrative report to council: "Once these things are known, measures can be put in place to ensure that the same pitfalls can be avoided in the future and that there is more clarity and accountability for Mount Sima's future operations.”

Before voting to go ahead with the study, Coun. Jocelyn Curteanu also commended Softball Yukon for providing financial support to the Friends Of Sima.

She noted her hope that the Softball group will also share its knowledge on how to effectively fund-raise.

"It's beyond amazing as far as I'm concerned,” she said, with Irwin later summing up how to effectively fund-raise.

"Bingo, that's fund-raising,” Irwin said.

Following the pledge drive, fund-raising is underway by the Friends Of Sima, who are asking those who pledged to buy a pass to pay up before Oct. 20 in an effort to get the hill open.

Payments can be made online at www.mountsima.com or by cash, cheque or credit card at Sport Yukon (4061 Fourth Ave.) from 8:30 a.m. to 5 p.m. Monday to Friday.

If there aren't enough pledges collected to reopen the hill, refunds will be provided, the Friends noted on the Mt. Sima Facebook page.

Comments (14)

Up 3 Down 6

Mike Grieco on Oct 15, 2013 at 3:02 pm

Society wants to know how the City of Whitehorse spends taxpayers money. Hint hint. Nudge nudge...

Up 21 Down 2

Michael O'Brien on Oct 15, 2013 at 3:05 am

What people forget is you give any group money, then you give them money again, it is interpreted as a source of income, not a loan.

If you continue to give them money then it is expected and the appreciation factor is gone.

Up 24 Down 5

Just Say'in on Oct 11, 2013 at 12:58 pm

This NEW GROUP is doing absolutely nothing different as far as I know. Also who is to say it is a new group, or just musical chairs. They have yet, to the best of my knowledge made a single attempt to raise any money on their own, and no getting people to sign up for discounted membership is not fundraising and is certainly not "Donations" that could be matched by YTG. Fundraising is something that is value added. How about throwing a dance at your nice hall and have a band donate their time. Why not a bake sale or garbage pick-up "Look around" that is how all the other non profits raise money. Raising money does not include frisking other organizations for all of their hard earned equity.

Up 21 Down 3

north_of_60 on Oct 11, 2013 at 9:42 am

The previous City Administration leaves a legacy of wild spending with inadequate oversight and accountability.

Yes, a thorough audit is necessary and a forensic audit if any indication of chargeable offenses is found.

Up 24 Down 5

Softball Yukon gets it ... really? on Oct 11, 2013 at 8:02 am

... I would like to know if the "pat myself on the back" executive of Softball Yukon went to its membership and got their vote to divert their money someplace else.

Up 24 Down 2

melba on Oct 11, 2013 at 7:33 am

If I were on the up and up and putting up with suggestions that people were being paid very large salaries for very little work, for which they were under qualified, and/or that money was going out the door to contractors or for expenses that were not justifiable, I would WELCOME a thorough audit. In fact I have been called by CRA in the past and said, "Come on up! I have a seat for you beside the till." I would welcome them to check me out because they are not going to find anything.

This may well be a new group going forward, but I still want to see what went on in the past so we can identify where this hill went off the rails. And I do think people need a good audit to clear the air, clear their names, or take responsibility. I am sick of paying the bills as a tax payer and then not being able to know exactly what happened.

Up 20 Down 6

Jackie Ward on Oct 11, 2013 at 4:45 am

Sam, we are sorry if we have upset you. But your strawman argument is moot. No one is witch hunting anyone here. We is tax payers have every right to know where "OUR" money went. Do you know something we don't? Your attitude is that there is a new group running the hill so we should all just forget what happened in the past. Right? Well, I for one support an audit. And so should you. I can't believe anyone would object to a little accountability.

Up 9 Down 35

Sam Fister on Oct 11, 2013 at 1:00 am

This is a witch hunt to vilify the Friends Of Sima group and tie them to the previous group which obviously let the train get off the track.

It's really unfair; it's a new group and a great facility. They need the city's help not finger pointing.

Softball Yukon gets it as does many people who use the hill. The city is spending hundreds of thousands of dollars in questionable traffic circles etc. yet they cannot see the merit of the hill.

Up 36 Down 1

Taxpayer on Oct 10, 2013 at 1:10 am

Perhaps a full audit of ALL societies and organizations that have received money and still receive money from the City should be done. You would be surprised at how and on what these oraganizations spend their free money on!

Up 39 Down 7

bobbby bitman on Oct 9, 2013 at 3:54 am

I would support a forensic audit as well. It would send a message to all who receive public funding that they will be held fully accountable. The money spent would be spread across all recipients of funding, over a large period of time similar to what happens with the CRA when they do a tax audit. Even if they recover nothing, or minimal dollars, the fact that a suspicious file is audited sends an important message to all, and the message is worth the cost because it encourages compliance across the board.

This is not a novel concept, it is a long standing proven and widely implemented way of keeping people honest. It is not about a 'witch hunt' either. It is a normal course of business. It is called verification, not a witch hunt.

Full forensic audit please, not just a brush over.

Up 48 Down 10

Barry M. on Oct 9, 2013 at 3:25 am

Councillor Cameron doesn't seem to understand the importance of finding out where all this money went before the City potentially gives them more money. I don't understand how this person has the audacity to think he should be in any position of power.

Up 34 Down 12

Just Say'in on Oct 8, 2013 at 3:15 pm

Council just doesn't get NO MEANS NO. They will at the next election though. Between all of the tax increases and the waste of money on all fronts it will be time for wholesale change.

Up 51 Down 11

June Jackson on Oct 8, 2013 at 1:04 pm

The ski hill was open 27 days last year? As I have said before, in 2012, GNSS had millions, On page 4 of their financial statement it says they had $7,677,766 MILLION dollars in Assets and almost 2 MILLION of that was cash. They had $5,842,676 MILLION in Deferred Contributions.

I would like a forensic audit to the last penny and GNSS facing legal accountability.

I started out just not wanting my taxes hiked to support a project that appealed to a limited audience for such a short length of time. I felt the City had poured enough taxpayer dollars, several millions over the years and enough was enough. Now, I am sick of it, I am sick of their bully tactics, sick of a bunch of bad mannered fools that actually booed the sitting Council, sick of threats of disaster to the community if a ski hill doesn't open. (News flash, no one ever died because they didn't know how to ski).. Now, Sima can disappear into a big mud hole never ever to be seen or heard of again.

Up 62 Down 15

Yukoner on Oct 8, 2013 at 7:50 am

Holy S#@t is it really that hard for the city to say no more money and walk away? If the hill is ever to reopen it needs to be done on its own merit there is a bad enough taste in the mouths of the tax payers I say leave it closed this year and stop spending more money.

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