The Voice
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DEBBIE PINE
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bilko@rgcmail.com Vol.22 No.1
Wednesday, January 3 2018
FREE
KPMG confirms key allegations accurate Firm cites “significant drop in the financial health of the Town”
Column Six
Leaves of Glass
BY VOICE STAFF When former Pelham Town Councillor Marvin Junkin resigned on November 6, asserting that Council had learned two months earlier that the Town was $17 million dollars deeper in debt than previously disclosed, he did not have physical confirmation of his claims. At a September 5 closed-door meeting, Junkin said that Councillors were not permitted to take notes, nor leave the meeting with any materials presented to them. On December 19, KPMG released a version of the same report presented to Council on September 5, with the names of identifiable individuals removed and certain financial elements updated. KPMG’s report confirms Junkin’s account of what Council learned on September 5. Here are Junkin’s statements, as made to the Voice in early November, compared to KPMG’s report, released December 19.
BY COLIN BRZEZICKI
E
Reason for review
Junkin: Former Councillor Junkin asserted that Treasurer Teresa Quinlin said she became concerned about the Town’s financial state after being on the job for just two or three weeks, and that it was this concern that prompted KPMG’s summer review. KPMG: The firm’s report states, “In July 2017, KPMG was engaged to investigate certain concerns over the financial health of the Town.” KPMG’s involvement was requested by the Town’s lawyers, says the report, “in contemplation of litigation with an identifiable individual.” Quinlin was hired as interim Treasurer during the third week of May. She was named to the position permanently in September.
Unreported debt
Junkin: Former Councillor Junkin asserted that Council was told the Town was $17 million deeper in debt than disclosed in its financial statements, calling this unreported debt. KPMG: The auditing firm confirms that the September 5 report to Council showed $17.2 million in approved debentures that had not yet been acquired. By KPMG’s November 29 presentation at E. L. Crossley high school, this $17.2 figure had been reduced to $9.9 million. This reduction is partially a result of the Town’s paying for infrastructure projects through development charges (loss of future revenue), rather than taking on debt. The single biggest reduction came from the Town’s internal funding of a $3 million dollar, 3.3 acre parkland purchase from Fonthill Gardens in 2016 (the subject of another audit). The Town has repeatedly refused to explain how this purchase was funded internally, given that the Town had just $554,000 in cash at the start of 2016. See ALLEGATIONS Page 3
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FIT FOR CHAMPIONS Pelham native and Grey Cup champion Chris van Zeyl holds the trophy with Fonthill Fitness owner Mike Brown. Story, page 11. SAMUEL PICCOLO PHOTO
Special to the VOICE
V ERY THING COMES at a price, though not with a lifetime warranty. “Progress has never been a bargain,” says Henry Drummond in the famous Monkey Trial case from Inherit the Wind. “Mister, you may conquer the air, but the birds will lose their wonder, and the clouds will smell of gasoline.” A decade ago I introduced my English class to a revolutionary device that was invented to replace the book. I passed the e-reader around the room, having downloaded The Mayor of Casterbridge, and asked the students to take a turn reading from the device. One girl looked at it, stroked the unresponsive screen, then stared at me. “So, what else does it do?” It’s a question Amazon has been answering ever since, releasing successive new version of the Kindle. Today, it provides not only the requisite touch screen, but other applications and features that bring the device ever closer to the physical book it set out to replace. Now, when you turn the screen page it actually curls back from the top just like a real one. A rustling sound effect would complete the illusion. See COLUMN SIX back page
HAPPY NEW YEAR Wishing you all the best for 2018!
Debbie Pine SaleS RepReSentative
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