Wednesday, March 10, 2010

March 13 2010

I finally filed the Petition and Affidavit in the Supreme Court for an Order to allow me access to information which should have been given to me as a director. If you want to read the text please email and I will send you an attachment.

March 10, 2010. This past week I have been researching and drafting out a Petition and Affidavit to be heard in the Supreme Court of British Columbia. It has been an onerous task. What I am asking for is that I be granted powers of discovery of documents and personnel that are but not limited to the powers given to an auditor as defined in the Society Act. Since a director is suppose to be a "policeman" this should be easy for a judge to grant. It will be a bit hard for him to disagree. Many societies do not have auditors so it is logical that this power be given to directors severally apart from a Board. In that way at least with a Board of ten members at least there is a ten percent probability that one person will do an audit for his own personal diligence. An audit is simple. You take one piece of paper and you follow its history within an organization and question each piece until you are satisfied that everything is in order. Or else you come across a broken piece of tile. DERAH recently replaced the lobby flooring in the Tellier Tower building. I noticed a lose piece of flooring tile which surprised me. The tile also reminded me of tile I had in my workplace which was extremely difficult to clean. I also wondered why the tile was not glued to the floor; the glue was not applied properly. The tiles absorbed everything and it was impossible to keep clean. I asked a few questions of staff and I was told that Russ Cunningham had installed it. I then went to Home Depot with the small broken tile and was told that it sold for $1.00 a tile. If I had access to the invoice for the flooring I would check to see if the tile installed was priced at $1.00 a tile. This is how easy it is to do an audit. It isn't difficult. Why audits are required is for funders. However, auditors are like everyone else who work: they do as little as possible for the greatest wage. They rely on and even state so in their financial statements that they rely on management for their data. So if Kim Kerr approves of an invoice, an auditor would not question it unless maybe it was completely out-of-line as an auditor only wants to make sure the financial statements are consistent with accounting rules. Unless an auditor is hired otherwise, the auditor does not investigate for fraud. Fraud is usually detected by employees who report it to senior management. However, an employee has to be careful as such reporting may cause him to be fired for being a whistle blowing or going beyond his job description. What I would like to do is see the invoice for the flooring and determine to my satisfaction if the price invoiced was reasonable. Since I wasn't given access to invoices, I asked another director, Alex Burnip, who is a friend of Kim's, to look into the pricing. Alex never got back to me.

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