TEHKUMMAH—In a recorded vote, Tehkummah Township council has agreed to a proposed six percent increase in its budget for 2024, this despite concerns from all members of council that the township does not have its financial information returns for the past two years to be provided by an accounting firm in Sudbury.
“We talked about our audits and how much we need them to go forward,” said Mayor John Deforge after a council meeting last week. “At this point we can’t even look at our 2023 audit until we get the 2021 and 2022 audits (from MNP accounting firm based out of Sudbury).”
“I talked to their auditor that we have dealing with prior to her taking a holiday and she said she was still working on it,” the mayor said. “At that time, she had said it would be finished in the next few weeks.”
Mayor Deforge had told The Expositor recently, “MNP had two people in our office mid-year (in 2023) to finish up and complete the returns (for 2021 and 2022). They were here two weeks, and we expected the reports to be sent to us, but they still haven’t provided them. I’ve been at them for about five months now to get the returns completed. There is nothing wrong with the township finances, they (MNP) have said there are no discrepancies or problems with our finances. Tehkummah is doing alright financially, we put about $450,000 in our budget toward work on the Township Road bridge and haven’t had to make any changes—this is still going ahead. We are doing okay. We have a $250,000 line of credit and we haven’t had to use it.”
“There is nothing we can do about it, we’re behind the eight ball because we already paid MNP a substantial amount (for the 2021 and 2022 audits) so we can’t change companies,” said Mayor Deforge. He explained there are only so many companies that are certified in Ontario to look at these municipal audits and that Tehkummah is not the only municipality having difficulty getting these reports completed.
Section 294(1) of the Municipal Act states that the treasurer of a municipality shall in each year provide the minister with a return containing information designated by the minister with respect to the financial affairs of the municipality. This takes the form of the annual financial information return (FIR). Municipalities must submit FIRs annually to the Ministry of Municipal Affairs and Housing by May 31. A search on the provincial website through the past few years shows that the Township of Tehkummah failed to submit the FIR during the years 2021 and 2022 (when the former clerk-administrator was away on work-related sick leave).
Mayor Deforge told The Expositor the province has not withheld transfer payments or denied funding due to the shortage of FIRs. “Not yet, but if things continue and we don’t get the audits I would imagine they will be coming soon. We are understandably worried about this,” he told The Expositor, saying at the meeting last week MNP has used up all of their excuses and he would be heading to their office in Sudbury on Monday of this week to “get some answers.”
At the Tehkummah council meeting last week, council was told by acting clerk-administrator Barb Grigg that she had been told by the main auditor at MNP that they were going through the audit again.
Councillor Mike McKenzie said that he was not comfortable adopting a budget without previous years’ financial statements.
Council was informed that not having audited financial statements does not affect the township budget but does affect its ability to borrow money.
Council passed a motion directing the deputy-clerk administrator to prepare the necessary documentation in order to have the proposed budget adopted at the next council meeting (in July with an increase of six percent). A recorded vote was taken with Councillors Steve Wood and Perry Chatwell and Mayor Deforge in favour and Councillors Lorie Leeson and Mike McKenzie opposed.
When The Expositor contacted the Ministry of Municipal Affairs and Housing (MMAH) to ask several questions on the issue the ministry provided an emailed response which stated, “The Ministry of Municipal Affairs and Housing is aware that the Township of Tehkummah has not filed its 2021 and 2022 FIRs. Any further questions are best directed to the township.”
