The Castlegar and District Community Services Society says it can’t answer questions related to former director Kristein Johnson’s $219,000 salary during its last fiscal year.
CDCSS is a local non-profit agency that runs 14 programs ranging from counselling services to housing supports and a homeless shelter.
Following its Nov. 15 annual general meeting and release of fiscal year 2023 financial statements that showed the large payment to Johnson and an additional $66,659 in payments to Johnson’s family members, Castlegar News asked CDCSS for some clarification on the payments.
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Our inquiries included: the end date of Johnson’s employment, if the money paid to Johnson included severance payments, how her usual wages were established and what her salary was in previous years. We also asked if her husband and son were on staff or acted as contractors, if they had official contracts, what their positions and roles were and if severance payments were made to any other departing employees.
In response, CDCSS issued a joint statement from the executive director and board.
“Information specific to employee benefits, contracts, employment status are confidential,” reads the statement. “We are consulting legal advice with regards to this as we must be mindful of obligations as an employer.
“As became apparent at the AGM the agency must be extremely prudent regarding fiscal management and fees related to legal consultation impose significant financial burden. We are pursuing pro-bono legal advice where possible.”
At the AGM, acting board chair Bruno Tassone acknowledged that CDCSS’s 2023 fiscal year had been “turbulent and transitional” for the organization and was a “very difficult transition of financial struggle.”
Tassone also mentioned that there had been numerous employee changes during the past year. Those changes included the departure of Johnson, who had led CDCSS for 10 years, the shelter director and finance staff.
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While CDCSS may not be able to give specifics on employees, a look at the agency’s annual T3010 reports submitted to the Canada Revenue Agency show a generic breakdown of employee wages and expenses.
For the fiscal year beginning April 1, 2022 and ending March 31, 2023, CDCSS had 24 full-time employees. Eight made between $40,000 and $79,999, one made between $80,000 and $119,000 and one made between $200,000 and $249,000. There were 19 part-time or part-year employees that were paid a total of $199,827. Total compensation expenditures were $1,412,123.
Employee compensation made up more than half the agency’s $2.6 million in expenditures for the year.
The agency’s expenditures on compensation have almost doubled since 2019 when total compensation was $755,747. However, fluctuations in employee expenses can result from an increased number of programs or services being offered, thus requiring the addition of more staff.
A look at the last four years shows an increase in compensation expenses and employees each year.
For the 2020-2021 year, CDCSS reported 10 full-time employees and total compensation expenditures were $1,011,310. The next year they added six more full-time employees and paid out $1,271,479 in compensation.
There was one question from Castlegar News that CDCSS was able to answer regarding what kind of action is being taken to ensure proper accounting procedures and accountability are in place going forward.
First, CDCSS says it is committed to having a a thorough professional financial audit on a yearly basis.
“We underwent a financial audit last year, which was performed by chartered professional accountants Childs Chanton. As pointed out at the AGM, in previous years financial reviews had been completed. A review is not as rigorous as an audit.”
CDCSS says the auditor provided them with eight recommendations “intended to improve the internal control environment and improve efficiencies.”
“All of these recommendations have been accepted and are in the process of implementation,” says CDCSS.
“Trust and confidence are built over time and go hand in hand with transparency, follow through, and a willingness to collaborate. The board and management of CDCSS is balancing and striving for accountability in past, present and future operations and activities of our agency.”
CDCSS says it has been faced with questions related to employees and calls for “serious housekeeping” along with calls to “move on and leave the past behind.”
They say their goal now is to “work in the best interests of the agency and the community in the continued delivery and development of programs aimed at supporting our community.”
But some aren’t ready to move on without delving deeper into the financial activities of CDCSS over the past few years. At the AGM there was discussion from society members about calling for a forensic audit or criminal investigation, but there was no motion or vote approving such action.
Sgt. Monty Taylor, detachment commander of the Castlegar RCMP, told Castlegar News that police are aware of the “concerns raised regarding the financial management at Castlegar Community Services under its former executive director.”
“We understand the community’s need for clarity in this matter,” said Taylor.
“As a matter of policy, the RCMP does not confirm or deny the initiation or existence of specific criminal investigations. Our commitment to maintaining the integrity of any potential investigatory processes is paramount.”
Taylor added that the RCMP encourages any agency or individual who reasonably believes that a crime has been committed to come forward and make a report.
“It is through these reports that we can ensure thorough and fair investigations.”
The CDCSS board says that society members and community members are welcome to attend their monthly board meetings as guests. You can contact info@cdcss.ca or call 250-365-2104 for more information.