MNBC Notes to 2010-2011 Financial Statements

Good morning Métis People of BC,

Please accept this correspondence in response to the recent MNBC Financial Notes (not dated) signed by the MNBC Treasurer Bob Trumbley and posted to the MNBC website as additional information to the 2010-2011 MNBC Financial Statements. BCMF has decided to send this correspondence to illustrate further inaccuracies in the financial information being posted.

It appears MNBC is assuming the market value of the property is $6,040,000 (and one needs a vivid imagination to accept this figure) then one must, under the Generally Accepted Accounting Principles, revalue ALL the assets – not just ‘cherry-pick’ the good one. There is no documentation provided such as an independent appraisal but for now BCMF will assume this figure to illustrate our concern.

The other MNBC assets are basically immaterial (albeit most likely worthless under a revaluation). His first table should therefore read:

  • Total current Market value of school property $ 6,040,000
  • Current net book value of property $ 3,356,714
  • Property value increase $ 2,683,286
  • Add: Total assets per Audit $ 8,496,386
  • Total assets using market value $ 11,179,672
  • Less: Total liabilities per audit ($10,760,453)
  • Surplus reflecting market value $ 419,219

This is already $483,286 less than Mr. Trumbley’s calculation although BCMF questions the validity of any MNBC statements that the property is worth $6,040,000.00. BCMF has contacted three commercial real estate agents and the range of a property is from $4 million to $6 million. Regardless due to the financial crisis a fire sale would devalue the price substantially.

Mr. Trumbley then states that the International Financial Reporting Standards would allow this type of revaluation in 2013 – however, this is two years from now and MNBC is in a financial crisis at this moment. Mr. Trumbley also criticizes the application of the auditing rules of including the mortgage under current liabilities because of the breach of the mortgage terms by not paying the property tax arrears. Well, this is the fact and MNBC has not paid the property taxes. BCMF is aware that the appeal has since been adjudicated with a minor downward adjustment, but MNBC still haven’t paid the arrears or approximately $235,000.00. MNBC has not provided any update about the property tax situation.

Accordingly, his second table should therefore read:

  • Total current liabilities per audit $10,760,453
  • Current assets per audit ($ 4,954,591)
  • Property value increase ($ 3,356,714)
  • Working Capital deficiency ($2,449,148)

In conclusion, this MNBC farfetched, and dubious, adjustment – that will only be allowed in 2013 – makes no material difference at all to MNBC’s financial position. BCMF does not understand the reason by MNBC Treasurer for offering this miscalculated statement with incorrect assumptions.

I trust Métis people will find this information helpful.

Thank you

Keith Henry

President

British Columbia Métis Federation

Downloads:

Click here to download this letter in PDF format. Click here to download the MNBC Notes to the Financial Statements

 

2 Responses to MNBC Notes to 2010-2011 Financial Statements

  1. Metis Thinker September 1, 2011 at 1:17 pm #

    The following from page 3 of the audit says it all

    Independent Auditor’s Report
    Emphasis of Matter
    Without qualifying our opinion, we draw attention to Note 13 in the financial statements which indicates that the Council incurred a net loss of $475,135 during the year ended March 31, 2011 and, as of that date, the Council’s current liabilities exceeded its current assets by $5,805,862. THESE CONDITIONS. ALONG WITH OTHER MATTERS AS SET FORTH IN NOTE 13, INDICATE THE EXISTENCE OF A MATERIAL UNCERTAINTY THAT MAY CAST SIGNIFICANT DOUBT ABOUT THE COUNCIL’S ABILITY TO CONTINUE AS A GOING CONCERN.

  2. Harold Morin September 8, 2011 at 1:49 am #

    I believe that it is time that all Metis citizens of British Columbia should unite and hold the entire MNBC Board of Directors PERSONALLY responsible for the massive debt they have created. Our Nation can never let this happen again.

    The elected MNBC Board members are directly responsible for denying ordinary Metis citiens access to programs and services. I am confident that once all of the disgraced Directors head for the hills, we will have the opportunity to research and analyze the funding contribution agreements and determine they re not in compliance with these agreements.

    There has never been a time in our history where I can truly state that I am ashamed of the actions taken by the MNBC Directors in destroying our financial capacity to provide badly needed programs and services to our citizens.

    The MNBC Board of Directors (elected in 2008) will go down in history as an organization that accumulated a massive financial defecit that is leading to financial insolvency. This will no doubt spell the end of the MNBC. The shameful legacy of the MNBC Directors, their incompetent financial management of Metis funding, and their refusal to be transparent and accountable will haunt them for the rest fo their lives.

    The elected MNBC Board of Directors are finished. They have lost their personal and professional credibility. The MNBC Board, MNBC management, and their blind followers sat idly by and let this all happen. They took absolutely no action. Overall, it appeared to be a good team effort on the part of the incompetent MNBC Board and an equally incompetent MNBC senior management team.

    Once again, I call on the entire MNBC Board of Directors to resign. Yes … the proof is in the pudding that is supported by fact, documentation, and truth.

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