Council Clarifies Sept. 5 KPMG Report

Calls for KPMG to include financial update in Nov. 29 Audit Presentation

Amidst rumours and allegations, Pelham Town Council clarified the scope and scale of a KPMG Report that was presented to Council on Sept. 5, 2017.

Passing a motion – with unanimous support – at the regularly scheduled meeting on Nov. 20, Council addressed the allegations by a former Councillor, including the alleged secrecy of a “forensic audit” conducted without Council knowledge.

The Council motion clarified that a “forensic audit”, referred to and debated in various venues, was in fact a privileged report commissioned by the Town’s lawyers, prepared by KPMG in the context of litigation threatened by an identifiable individual, and presented during a closed meeting of council on Sept. 5.

Through the motion, Pelham Council stated their desire to clear up misconceptions that have been lingering in the community since early November.

“Council hopes to alleviate the public’s concerns and to correct the record by asking KPMG to share all financial findings and conclusions as set out in the Report,” said Mayor Dave Augustyn. “Council is also asking KPMG to provide pertinent updates as part of their public presentation on Nov. 29.”

Understanding the oath of office they took when elected requires strict adherence, Council sought legal advice to determine what information could and could not be shared with the public. Releasing the Report, in full, from Sept. 5 could be a violation of the Municipal Freedom of Information Act, as it contains personal information of an identifiable individual.

The Town’s audited financial statements have been deemed accurate by Deloitte and can be found on the Town’s website.

The full motion reads:

WHEREAS former Town Councillor Marvin Junkin has allegedly stated to the Voice of Pelham and has alleged in an e-mail to Regional Councillor Tony Quirk dated November 12, 2017 that the Town has an additional $17,000,000.00 in debt and total debt of $59,000,000.00, that Mr. Junkin states is not disclosed on the Town’s annual audited financial statements;

AND WHEREAS Deloitte has assured the Town that the Town’s annual audited financial statements are accurate;

AND WHEREAS Mr. Junkin has inaccurately stated in an e-mail to Regional Councillor Tony Quirk dated November 12, 2017 that the Town caused a complete forensic audit to be conducted by KPMG and that the findings of such alleged complete forensic audit was presented during a closed meeting of Council on September 5, 2017;

AND WHEREAS a privileged report was commissioned by the Town’s lawyers and prepared by KPMG in the context of litigation threatened by an identifiable individual, which was presented during a closed meeting of Council on September 5, 2017 (the “Report”);

AND WHEREAS Mr. Junkin breached his oath of office by disclosing the existence of the Report;

AND WHEREAS the Town maintains its rights to litigation privilege over the Report;

AND WHEREAS some members of the community and some Regional Councillors have called for release of what they refer to as the KMPG forensic audit, but what is, in fact, the Report, as a result of the disseminated false information relating to an allegation of an additional $17,000,000.00 of debt and total debt of $59,000,000.00;

AND WHEREAS the release of the Report could be a violation of the Municipal Freedom of Information Act, as it contains personal information of an identifiable individual;

AND WHEREAS Council is desirous of clearing up the misconception and allegations of Mr. Junkin and maintaining an accurate record of the finances of the Town.

BE IT RESOLVED THAT:

The Town hereby directs the CAO to request that KPMG include in the forensic audit to be presented to Town Council on November 29, 2017, as permitted by its professional standards and reporting requirements, all of its financial findings and conclusions as set out in the Report, together with pertinent updates, with all personal information about an identifiable individual, information relating to employee negotiations, and advice that is subject to solicitor-client privilege removed.