erinA little bit more information in today’s article…
“In court documents, Chad Ohman said accounting software glitches created duplicate expenses and missing data, and all reimbursements were rightfully owed.”
Paul Turnbull 🇨🇦@erin I find it odd the community league does large expenses this way. When I was on a non-profit executive big purchases where done by PO and paid from the organization's bank account signed off by two executives.
I also find it odd that the community league has launched a lawsuit before conducting a forensic audit. I would think you'd want pretty conclusive evidence before making public claims like this.
Aside: the treasurer in the org I was in was a forensic auditor so things were tight.
Alessandro Corazza 🇨🇦@alessandro @erin Clarification: Community Leagues are non-profit organizations rather than charities.
Good to know - I've never heard of "community leagues" until this. In any case, if they saw this shortfall in Xero, wouldn't their first instict be to check their actual bank statements? I switched to Xero myself this year and had similar problems with duplicate entries, so I used my bank statements as the canonical record of transactions. One would assume they spotted a $280k gap between revenues and expenditures there too. Relying only on Xero would be idiotic.
Amelia Bellamy-Royds 
@alessandro @Chigaze @erin If Chad was paying expenses on his personal credit cards, and then reimbursing himself with bank transfers from the league accounts, then the bank statements would indeed look like he was taking money for himself. The missing invoices, that explain the payments, are the big issue.
However, there's still the actual goods & services paid for. Given the amounts involved, I'm assuming a lot was related to major repairs on the league hall, which Chad had talked about previously. So the rest of the league must know that the entire amount wasn't "stolen", as it has been implied based on their court filing.
But without clear documentation, there is always the possibility that numbers were fudged & expenses inflated. All of which can hopefully be cleared up with original receipts & transaction records.
I suspect, based on observations of conflicts in the mstdn.ca team, that the confusion spun out of control & into courts because of other interpersonal issues & communication breakdowns.
Good point about the personal card, that would do it! Although $280k on his personal card seems like a lot. He must have made a killing on travel points.
Stéphanie@AmeliasBrain @alessandro @Chigaze @erin I agree with you Amelia. If what he says is the truth and he did explain it to the board.. either they didn't find him trustworthy enough to believe, or they decided to sue him anyways?
Software glitches are something you can fix out of court with good communications and collaboration
Bowreality 🇨🇦🍁@stephanie @AmeliasBrain @alessandro @Chigaze @erin I have no idea what’s going on but I wouldn’t ever run almost $300k through my credit card at any time(s) for anybody. That is way too much to not be super diligent & have some payment system / bank account in place. It must have been 1000s at a time. That’s not something that you can just swing here and there without properly accounting for it and having documentation. Software glitch or not. It’s wild how these leagues operate.
@Chigaze @erin What’s a community league anyways? Also agree with the concern that he was paying from his own credit card and was reimbursed. They need to have a bank account and order system. It’s not that hard really.
Forensic audit would be smart before blaming him as well. I mean that not just peanuts and going public about it without being sure … ouch.
Forensic audit would be smart before blaming him as well. I mean that not just peanuts and going public about it without being sure … ouch.
@Bowreality @erin I grew up in Edmonton so never realized that Community Leagues are kind of unique to here. They run local community halls as well skating rinks and such.
@Chigaze think most towns have something or the sorts, perhaps just named differently. Ours is called a “community association” similar mandate. @Bowreality
AnnieBuddyThere was a program run by the CRA at one point that taught board members' responsibilities for NFPs. I recommend that people ask to see bylaws and financial statements/procedures before joining any board. Ask questions. Ask about the history and power dynamics/personalities.
This sounds like a fiasco all the way around and I would not accept a role with a not for profit that was this badly managed, specifically because it would leave you open to exactly this.
McRocker 🇨🇦🍁@AnnieBuddy @Bowreality @Chigaze @erin
And, if the Board doesn't have insurance to protect them from being sued ... they are liable. Alberta government offers online & in person non-profit Board training
Search: Alberta Non Profit Learning Centre
@Chigaze the whole thing is a bit odd, isn’t it! However, smaller nonprofits and businesses don’t always do things the way they should.
It would appear the organization is confident in how the money went missing. I wonder what internal investigation was conducted before the formal forensic audit that made them come to this conclusion. Their stance isn’t publicly clear at this point. And why would they need a civil case.. would just a criminal case if the forensic audit comes back with the same conclusion they have made be sufficient in trying to recover the funds?