Baddeck unable to meet minister's deadline to produce audited financials

Officials with the Village of Baddeck say they will not be able to meet the deadline to file missing audited financial statements imposed by Nova Scotia's municipal affairs minister.

The village commission has been under a ministerial order issued in December to get its financial and governance affairs straightened out by May 1.

Maris Freimanis, the village's interim chief administrative officer, said this year's revenues and expenses are on track, but accountants are telling him audited financial statements for the two previous years cannot be done on time.

"There are very, very many challenges with those two fiscal years and they won't be able to be completed by May 1st," he said.

Little or no data has been entered into the village's computer system from those two years, Freimanis said.

In addition, the last financial statement was prepared on obsolete software and the village's former accounting firm needs time to convert the files, he said.

In its latest progress report to Municipal Affairs Minister John Lohr, the village asked for a deadline extension, but that has been denied.

"The minister has made it very clear to us that there will be no extension," said commission chairperson Bill Marchant.

"If we don't provide him with the information he wantsor has asked foror has demanded by May 1st, then he will take whatever action he thinks is appropriate."

Under the ministerial order, the village has to produce audited financial statements for the last two years, draft a budget and make a plan to collect tax and utility bills for this year.

It also has to provide the residents with governance options, and it all has to be done by May 1.

Freimanis said the commission is forging ahead as best it can.

"Although the village is not able to meet all of the requirements of the May 1st deadline, the electors need to be informed and advised of what the options are, what the costs are and what the current financial state of the village is," he said.

The village's future has been in doubt for years, but its troubles came to a head last fall when the commission fired its chief administrative officer.

The commission then voted to dissolve and join with Victoria County, but residents shot that plan downat a public meeting in December.

Marchant said the commission is still gathering information on whether it is better to remain a village, join Victoria County or share services with another municipality.

"We're going to be able to come up with governance options," he said. "Whether the community will accept those or not, that's the question."

Officials say an update will be mailed to residents in the next couple of weeks and a community meeting is tentatively planned for April.

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