A report on grant funds used for the Mount Sima recreational facility over a two-year period detected weaknesses in accounting practices, but there was no wrongdoing in how the funds were used.

The city released the findings Friday after having commissioned Crowe MacKay to do the report last fall.

The hill was operated by the non-profit Great Northern Ski Society (GNSS) from the time it opened in the 1990s until last summer.

It shut down in July 2013 during its second season of summer adventure park operations.

While the society moved to dissolve its organization amid significant financial problems, the Friends of Mount Sima was formed with a goal of reopening the hill for the winter season.

The Friends group got the hill operating again through an agreement with the GNSS, which holds the lease for the property.

While the chairlift closed for the winter season on Sunday, staff are set to move pieces of the terrain park to the bunny hill at the facility, with the tow rope to be open on April 26-27 and May 3-4.

The city approved spending of $15,000 for the report on grant funds that went to the GNSS in light of numerous concerns that came up on the spending during the Sima discussions that dominated city council meetings last fall.

"We found that there were insufficient formality in budgeting and review processes,” the report concludes.

"Budgeting for cash inflows and outflows for both capital projects and operations does not appear to have been performed regularly.

"As well, it appears that the accounting records were not prepared on an accurate and timely basis. In the documentation we examined, we found no discussions regarding any wrongdoing.”

The report explored grant funding the GNSS received over two fiscal years between June 1, 2011 and May 31, 2013.

The documents show a financial forecast prepared by the GNSS in November 2012 predicted a deficit of more than $355,000 by May of 2013 after a number of issues in the 2012/2013 fiscal year.

Those issues included operating expenses exceeding revenues by nearly $730,000, as well as wages and benefits rising by more $245,000 largely due to staffing for the WildPlay Elements Park, among others.

Looking at the inflow and outflow of cash, it was found the hill had $1.9 million coming in with payments of $2.1 million going out in both capital and operational costs.

Records provided to Crowe MacKay illustrated there were "deficiencies in the accounting processes used. Reconciliations of balances, especially capital assets were not prepared on a regular basis.”

The report later stated: "The original forecast for the summer operations in 2012 far exceeded the actual results.

"Operating funding – in excess of $1 million – received from the City of Whitehorse at the end of the 2011/2012 fiscal year resulted in cash on hand as at June 1, 2012.

"However, due to higher wages, especially for personnel involved with the adventure park, as well as higher repairs and maintenance not being covered by summer operation revenues, the cash flow for GNSS became critical in the autumn of 2012 and some payables, especially for capital items, were not paid.”

GNSS president Craig Hougen said this morning the group is pleased the report is finished and has been released.

The organization was confident that no wrongdoing would be found as it "always operated at the highest level,” he said.

Accounting, he continued, was always a challenge, and officials knew it was an area that needed focus to improve, he said.

Hougen went on to state the GNSS' congratulations to Friends of Mount Sima on a successful winter season, which he said was always the society's goal.

Commending the new group on its work to get the hill operational for the season and its subsequent success this year, Hougen said he believes the community realized that without support, the hill will not be there, and that helped garner the sponsorships, donations and the sale of season passes necessary to get it going.

Heavy snowfalls this past winter added to that success, bringing more people out.

One of the challenges the GNSS often faced was the weather, which is why Sima needs the snowmaking capabilities.

The GNSS is continuing to dissolve its organization. Hougen predicted by next winter the ski hill will be entirely in the hands of the Friends of Mount Sima.

Though it's not a difficult process, it's a lengthy one, he said.

Mayor Dan Curtis also said the results did not come as a surprise, as he's worked in the non-profit sector for many years.

"You're stretched pretty thin,” he said of the challenge that comes in keeping up on the accounting for such groups often run by volunteers who are also working other full-time jobs.

It's a challenge the Friends will face as well, but both he and Hougen said the group is off to a good start following their first winter at the hill.

The report on the GNSS grants, he said, "was absolutely critical” given the misinformation about the finances circulating through the community last year.

"I think it was really important to clear the slate,” he said, noting the importance of focusing on the hill's future now.

The city hasn't committed any more money to the hill, but Curtis said the Friends of Sima can apply for recreational funding and other grants they may be eligible for as other groups do.

The GNSS has been among past recipients of such grants and others. Last year, the city also paid off the $190,000 debt on the chairlift at the hill.

As Curtis said in a statement Friday: "We would now like to focus on the future. The city is supportive of the ski hill and would like to see it succeed. We congratulate the community on a successful season.”

He commended the Friends of Mount Sima for their efforts, which saw local businesses and community members get the hill going for the season with sponsorships, donations and the purchase of season passes.

Friends of Mount Sima president Laurie Henderson would not speak to the report today, pointing out it deals with a timeframe before the new organization was formed.

Like Curtis, she is focused on the current and future operations of the hill.

The 2013/2014 season went "very well,” often being packed with visitors and hosting a number of events, including this past weekend's Simapalooza.

The weather, of course, helped to.

"There was lots of snow,” she said.

While it's not expected that the finances for the season will be known for the next month or two as invoices continue to come in, she said she expects the hill will be in the black given the level of community support that came through and the good weather that brought more people to the hill.

"Everything came together,” she said.

At this point, Friends of Mount Sima aren't considering making any substantial changes for next year, but will look closely in the coming weeks at how things went and where improvements can be made for next winter.

The group will also continue to work on getting sponsors for next winter, and already Henderson has heard indications of the current sponsors staying on for next year as well.

No time is being wasted ensuring support for the hill is in place for the 2014/2015 ski season, with next year's season passes already on sale at the hill at the same very early-bird rate of $395 for adults and $320 for youth charged last year.

The passes – with the current prices on until September – will also soon be available through Sima's website, she said.

While the chairlift is now closed for the season, those wanting to strap on a board or skis for some final runs can do so on the final weekend in April and first weekend of May on the bunny hill.

Tickets will be $20 for non-members or $10 for members.