Yukon government grills Many Rivers over spending - Action News
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Yukon government grills Many Rivers over spending

A financial investigation of the Many Rivers Counselling and Support Services revealed a number of 'areas of concern,' the Yukon government says including blown budgets and questionable expenses.

Financial investigation found unexplained payments, and budget over-expenditures

Several Many Rivers board members resigned in recent days, after learning the government had opted for other counselling service providers. (Paul Tukker/CBC)

The Yukon government is questioninghowMany Rivers Counselling and Support Services usedits government funds, saying an investigation revealed "a number of areas of concern."

And until the organizationexplains, the government says there won't be any more money coming.

"We did a financial review on the agency and there's some questions that came out of that and we've asked the organization to answer those questions," said Karen Chan,assistant deputy minister of corporate services with the department of Health and Social Services.

"We need to make sure that when we're providing funding, that it's done in an accountable way and that we can be sure that the funding was spent where it should be."

Last week, the territorial government announced in a news release a "new delivery model" for counselling services in Yukon. Many Rivers was out as a service provider, and the Canadian Mental Health Association, All Genders Yukon and the government's Mental Wellness and Substance Use Services branch were in.

That prompted some Many Rivers board members to resign, and say the organization was forced to close its doors.

'We would like an explanation'

A letter sent earlier this monthby the department of Health and Social Services to then president of the Many Rivers board explains some of the government's concerns.

"Although Many Rivers has a new board, this board must assume responsibility for the actions of the previous board as the organization has remained the same," wrote Stephen Samis, deputy minister in the department, on Aug. 9.

Samis asks how the government's last transfer payment to Many Rivers was used. He points to the investigation that found severalblown budgets andquestionable payments including a 20.5 per cent wage increase for Many Rivers' executive director, as well asfees paid to the Paris School of Business for someone'sdoctorate program in business administration (tuition for that three-year program is more than $46,000).

"We would like an explanation," Samis wrote.

In an Aug. 9 letter to the board of Many Rivers Counselling and Support Services, deputy minister Stephen Samis questioned how the organization had spent its government funding, saying an investigation found several 'areas of concern.' (Nancy Thomson/CBC)

Samis also asks how Many Riversplans to pay off its debts, and whether it would use government money to do that.A former board member told CBC earlier this week that Many Rivers owes over $200,000.According to Samis, Many Rivers' unaudited financial statements indicated $519,368 in accounts receivable in other words, money that was expected to come from government.

According to Samis's letter, Many Rivers went way over budget in several areas, without offering an explanation or seeking approval from the government.

In some cases,expenses were more than doublewhat was budgeted. For example, the organization went 115 per centover budget on bookkeeping contracts, and 436 per cent over-budget on a snow removal contract.

"We don't have the answers. We've asked the questions and it's important that we get those answers," Chan said.

Storage of confidential files

Samis's letteralso questionswhy Many Rivers still retained leased vehicles and rental offices in communities where they're no longer needed. He wrote that the government agreed to pay rent for Many Rivers' Whitehorse office "as an emergency measure," so there was a place to store confidential files.

"We would like to know why the files were not brought there," he wrote.

It's not clear yet where Many Rivers' client files will ultimately go, ifthe organization is no longer operating. YukonInformation and Privacy CommissionerDiane McLeod-McKay says Many Rivers remains in control of them, until they might be transferred to a "successor custodian" for example, another counselling service.

"The most important thing is that Many Rivers is communicating with individuals as to what is occurring with theirinformation, so individuals are not left trying to figure out who now has the custody or control of their personal health information," McLeod-McKay said.

"Even if the information were to transfer to a successor custodian, individuals may not know who that is."

Written by Paul Tukker, with reporting by Jane Sponagle