RCMP probe alleged community club fraud

RECORD PHOTO BY AUSTIN GRABISH

St. Andrews Community Club finance chair Patrick Gordon speaks about the club’s financial practices at its annual general meeting last Tuesday.

By Austin Grabish

RCMP have launched an investigation into financial irregularities at the St. Andrews Community Club after a substantial amount of money was allegedly spent on purchases it has no record of. 

The police probe was launched last month after board members with the community club filed a complaint with Mounties. 

The club has not been able to complete financial reports for the 2011 and 2012 fiscal years, and still has no explanation for how roughly $90,000 was spent on credit cards it used to have.

“We have a lot of finances that we still can’t finalize,” St. Andrews Community Club finance chair Patrick Gordon said.

Gordon, who is also the club’s former president, said the questionable finances stem as far back as five years. 

“We found a few irregularities with the financials and we’ve taken the records that we’ve put together into the RCMP, and they’re in the process of doing an investigation,” he said.

Gordon added an internal audit done by a charted accountant raised some red flags. He said when the club began looking into its past Visa records it became clear suspicious spending occurred.   

“We put a fairly strong case together that we think stuff went on and we’ve taken that case to the RCMP,” Gordon said.

Last August, club president Kurt Procter told the Record nearly $90,000 in purchases made during the 2012 year could not be accounted for.

Last week, Procter said since the investigation is ongoing he could not confirm the amount of suspected fraud police are investigating. However, he said it’s fair to say the amount of questionable spending is “substantial.”

RCMP spokesperson Sgt. Bert Paquet said it’s not too late for charges to be laid if there was any criminal wrongdoing that occurred at the club. 

“Depending on the specific charge, some investigations can go back several years, and still be prosecuted,” Paquet said via an email.

The St. Andrews Community Club was in financial ruins three years ago. Alarm bells went off when Manitoba Hydro phoned Procter informing him the power would be cut off to the building since the club’s utility bills had gone unpaid.  

At the time the club was running a deficit of nearly $80,000.

The phone call triggered the founding of a new finance committee after a new board was formed, in addition to the internal investigation, which left more questions than answers about the club’s finances.

“It was difficult to get answers from the previous board,” Procter said.

Changes were also made to accounting practices at the club including a new mandatory receipt rule for all reimbursements. 

“If you don’t have receipts and justification for spending that money and a board approval we don’t reimburse you for it,” Procter said. 

The club also stopped relying on credit for its purchases. It cancelled its two credits cards and no longer uses a line of credit, Gordon said. 

Gordon told a small audience at the club’s annual general meeting last Tuesday its finances are now back in order.

“We have a balanced budget going forward.”

 -- First published in the Selkirk Record print edition June 4 2015 p.6