Portland Housing Society - audit reveals all sorts of goodies

[Acura604]

Pete McMartin: The Portland Hotel Society -- Oh. My. God.

I don’t know where to start.

There’s just so much that jumps out at you that’s egregious, hilariously improbable and, in the context of a social welfare agency the efforts of which should be entirely concentrated on the poor and marginalized, obscene.

Almost $9,000 in limousine charges. In one year.

Stays at the best hotel rooms — some of them approaching $900 a night — in Paris, Istanbul, Ottawa, Vienna, Los Angeles, New York City. (Personally, I can’t afford to stay at the Plaza.)

Almost $70,000 in restaurant bills! Charges for flowers! A trip to freaking Disneyland! A $900 baby shower! A $7,024.72 Celebration of Life for a deceased employee! Monthly expenses of $1,600 charged by the executive directors for use of office space within their personal residence! I am running out of exclamation marks and italics and I’m beginning to hyperventilate!

Appalling. Indefensible. And all of it conducted within a corporate culture where the accounting was seemingly written on a napkin. The audit and financial review of the Portland Housing Society by Vancouver Coastal Health and BC Housing make for the best reading of the year, if you like horror stories.

For instance:

“We found no evidence that the PHS Board is monitoring or authorizing PHS executive management expenses and payroll advance.”

Or:

“We also identified approximately $9,600 in apparent cash advances over the three-year period of our review for which we were unable to obtain any supporting receipts and documentation.”

Or:

“We found there to be insufficient recognition of the risks, potential contractual issues, governance and oversight considerations associated with the various non-arms length relationships that exist with the Affiliates (of the Portland Hotel Society) and other organizations.”

Or:

“In numerous instances, interviewees seemed unwilling to provide details (attendees, dates of travel) regarding expenses and other matters they believed were unrelated to the operation of BC Housing funded buildings.”

It goes on. And on. I could fill up the paper with quotes that inspire reactions ranging from mildly eye-raising to you-have-got-to-be-effing-kidding-me.

The shame of it is, the PHS hasn’t just destroyed its own reputation — which is a pity in some respects because even the auditors allowed that its work was often exceptional — but it has put into question the government’s entire system of the contracting out of work to the province’s other taxpayer-funded social welfare projects, some 700 in total.

If the province’s largest and most visible such agency can botch its bookkeeping so badly, then what of the others, most of which haven’t the organizational resources at their disposal that the Portland Hotel Society did?

Further, it casts doubt, and maybe lasting damage, on the experiment in social engineering in the Downtown Eastside that our three levels of government have been conducting for the last several decades.

Tax dollars were funding baby showers as well as social housing? Were the babies minding the cash box? The PHS just confirmed every smirking comment ever made by critics carping about poverty pimps and the poverty industry.

Finally, where was the government all this time?



and of course, don't forget about that Jenny Kwan whore:

New Democrat MLA Jenny Kwan under fire for $2,695 trip paid for by the Portland Hotel Society

VICTORIA — New Democrat MLA Jenny Kwan and her family received a $2,695 trip to Disneyland — as well as a second trip to Europe — paid for by the Vancouver charity at the centre of a scathing government audit Thursday.

The Disneyland trip was one of many questionable expenses by the Portland Hotel Society highlighted by government auditors, which forced the resignation of the society’s senior managers and its board of directors.

Among those dismissed was Dan Small, Kwan’s ex-husband, who was the society’s director of policy research and funding development since 1998.

Kwan, Small and two children took the trip to Disneyland in May 2012, as well as a second trip believed to be in Europe that same year.

Kwan did not respond to an interview request.

However, in a statement, the MLA for Vancouver Mount Pleasant said she was “concerned” to see the expenses released Thursday in government audits.

“Together with my family, I did join my husband — who was an employee of PHA — on two trips in 2012,” she said.

“I was assured at the time by my former partner that he paid out of his pocket for the family-portion of the travel expenses.

“I never would have gone had I known that the family portion of the travel would appear to have been be paid for by PHS.

“I trust that my former partner will address the findings and take appropriate action to ensure that the PHS is reimbursed for any expenses related to family travel.

“And if he doesn’t, then I will.”

Kwan and Small separated last year.

Government auditors said the Disney stay included a hotel room at the Disney hotel in Anaheim, which was upgraded to accommodate a staff member in poor health. Small has a heart condition.

Townsend said the trip was a way to show appreciation for Small’s hard work because the society doesn’t offer benefits like long-term disability.

“For us, this was something we were doing for a staff person in lieu of overtime and health benefits,” said Townsend.

“I don’t want to go into the individual details of all these things, but it fits into the fact we do not have long-term disability.”

Kwan has been the MLA for Vancouver Mount Pleasant since 1996 and has had close ties to the Portland Hotel Society as well as several of its current and former employees.

The government audit highlighted the Disneyland trip, as well as other trips to the United Kingdom and Austria, as questionable expenses, and said there were no financial controls in place to ensure the travel was for legitimate business reasons.

An audit by Vancouver Coastal Health, which provides PHS $8.3 million a year for funding programs and services, noted the “seeming lack of regard for adequate controls to ensure funds are spent in an economical and efficient manner are concerning.”

The society received $28.6 million in money from government sources in 2013.

However, it’s unclear if the taxpayers paid for Kwan’s trip.

Former PHS executive director Marc Townsend argued “the majority” of trips mentioned in the audit would be paid for using “private and non-government funding.”

But the health authority audit pointed to a “lack of clarity over administrative expenses” and said it’s difficult to know what expenses were paid using what money because funding was pooled and spent, in many cases without proper documentation.

[4444]

disgusting.

not for profits, government, bunch of fucktards who take for themselves.

sadly there are always some who ruin it for the rest (there are so many good NPOs) - but i've found that the general attitude in gov/NPOs is one of waste and inefficiency (i, myself, have audited gov/NPOs in my articling days)

shut it down, shut them all down - fuck the lazy overpaid government workers and lower taxes.

[Mr.HappySilp]

And what happen to them? They resign and nothing happen! and they get off the hook without paying a penny back. The gov should go after them for every single penny plus interest!

[Klobbersaurus]

Originally Posted by Mr.HappySilp

And what happen to them? They resign and nothing happen! and they get off the hook without paying a penny back. The gov should go after them for every single penny plus interest!

and they get severance, marc townsend looks like a user himself

[Hondaracer]

The whole government structure gets my blood boiling. If this was a privately run organization half the fucking MP's and MLA's would be going to fucking jail.

Hell, even in Montreal a priest is going to jail for a year for scamming the constituents out of 100k over 3 or 4 years. So the church is vulnerable but the fucking scum in the government are not?

And fuck Jenny Kwan and all these other officials who have a big crying show to the media when it's discovered, yea your fucking crying now and wanting to pay it back BECAUSE YOU GOT CAUGHT. You didn't know where these expenses were coming from when your HUSBAND was paying?

Fuck the government and fuck the crooks employed
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[multicartual]

Ball 'til you fall, MLAs!!!

[7seven]

Government inefficiency and waste is a huge problem, but the Portland Housing Society is a private not for profit organization that receives government grants (via taxpayer dollars) and has a number of contracts with government departments such as BC Housing, that is why they were subject to a government initiated audit. This is the same group that runs Insite, the safe inject site.

These not for profits receiving grants from the government are a huge problem, I've personally witnessed management and executives of a number of these not for profits rack up crazy bills on their societies tabs at bars and restaurants. Just spend a weekend out and about in Yaletown and you'll see it too.

[white rocket]

Taxpayers hard earned dollars at work again

[twitchyzero]

reminds me of a local professor who embezzled millions from donations/grants into renovating his west-end house that was supposed to support overseas outreach health initiative

also flew first class to vietnam for said initiative lol

After hearing that story and reading this thread now i'm skeptical of so many NPOs being a front

[Infiniti]

While I understand the obvious displeasure being voiced about the misappropriation of funds, namely those spent on superfluous purchases by an organization whose mandate is to provide services to a vulnerable and impoverished segment of society , I would argue that a reactionary response to this is unnecessary and could potentially unravel much of the progress that has been made by this organization.
Clearly, the policies and regulations that determine how funds are managed at PHS must be placed under review and the management team reprimanded in a proportioned manner.

[godwin]

It is just bad governance and transparency to let any employee to expense their own pleasure items on society budget. IT IS LEGAL if can proven for society benefit but just BAD OPTICS! However it has been going on for a while.

The government in general give societies and non profits long enough rope they can tie a noose to hang themselves. In this case, Jenny Kwan's thing came out when NDP leadership race is just about to happen can't be a coincidence. In the end, it is the society's and related personnel's fault. I have a feeling a lot of people know all along and was just waiting the right moment to let it ou.

I find it hilarious that the founder kept saying it is administrative cost that was no gov's money was misspent; Basically he is alienating the society's pool of future donors and fundraising efforts. I am not sure if it is intentional so he can torpedo the group he is forced to leave so he can start a new one.

DTES has turn into a lucrative business for a few people with very little training. Case workers that get paid for $20+/hour the only qualification you just have to be there. Mr. and Mrs. Townsend get 300k+ / year. One aspect of this it is absolutely crap job that not many people wants to do. I am pretty sure majority of people on Revscene don't want to deal with drug addicted people day in and out, so wages for those jobs are pretty high. Much like garbage pickup and longshoremen, someone have to do the job.

It is just an example a group of people who got in way over their heads and too dumb to realize it. The group was start adhoc with shoe string budget and when the money start rolling in they just don't know how to deal with it.

[white rocket]

Originally Posted by godwin

It is just an example a group of people who got in way over their heads and too dumb to realize it. The group was start adhoc with shoe string budget and when the money start rolling in they just don't know how to deal with it.

Holy fuck! Look at all this money were making!!!! We're going to Disneyland ma'fuckas. Pass the Grey Poupon! Here's some Dom to quench your thirst. Oh shit, that was for the people we were supposed to be helping? Oh shit, well I'm sorry, let me cry about it and offer to pay it back.

Not poking fun at you godwin, just reacting to the specific quote.

[godwin]

Believe it or not, that's what a lot of people who had worked minimum wage jobs see jobs at places like Portland Hotel Society. Finally their liberal arts degree pay a few times more than their original jobs at the coffee shop.

In the past, we had church run charities that promised richness after life to the staff. These days we have different set of people providing the same services who have more immediate desires and bills to pay (oh don't forget families to raise). So you get quite a bureaucracy and management on top of these organizations. More than a few people on this board don't like faith based organizations playing a role in society, but honestly these shoulder more cost than we pay them, we should be thankful and hoping for more, if the aim is to cut cost.

Honestly as a society we chose not to have institutions like Riverview or New West and dumped people in DTES hoping for short term savings, in the end, we are pay more for these societies to work inefficiently, encourage drug use and not to mention depressed real estate values in the DTES. I think as tax payer we are paying 80k / head for services?

Originally Posted by white rocket

Holy fuck! Look at all this money were making!!!! We're going to Disneyland ma'fuckas. Pass the Grey Poupon! Here's some Dom to quench your thirst. Oh shit, that was for the people we were supposed to be helping? Oh shit, well I'm sorry, let me cry about it and offer to pay it back.

Not poking fun at you godwin, just reacting to the specific quote.

[white rocket]

The word "charity" is thrown around so much nowadays that it doesn't hold much weight with me. When people phone my work asking for donations I have all sorts of fun with them. If I really wanted to "make a difference" I would volunteer at a soup kitchen in the DTES, walk a dog at the SPCA, etc. Devoting your time is much more effective to ensure that your work is going to the right person. Throwing money at a problem is getting the fat cats behind the cause rich as fuck. That doesn't sit well with me at all. Charity? pfst! my fuckin' ass.

[Mr.HappySilp]

Originally Posted by godwin

It is just bad governance and transparency to let any employee to expense their own pleasure items on society budget. IT IS LEGAL if can proven for society benefit but just BAD OPTICS! However it has been going on for a while.

The government in general give societies and non profits long enough rope they can tie a noose to hang themselves. In this case, Jenny Kwan's thing came out when NDP leadership race is just about to happen can't be a coincidence. In the end, it is the society's and related personnel's fault. I have a feeling a lot of people know all along and was just waiting the right moment to let it out.

I find it hilarious that the founder kept saying it is administrative cost that was no gov's money was misspent; Basically he is alienating the society's pool of future donors and fundraising efforts. I am not sure if it is intentional so he can torpedo the group he is forced to leave so he can start a new one.

DTES has turn into a lucrative business for a few people with very little training. Case workers that get paid for $20+/hour the only qualification you just have to be there. Mr. and Mrs. Townsend get 300k+ / year. One aspect of this it is absolutely crap job that not many people wants to do. I am pretty sure majority of people on Revscene don't want to deal with drug addicted people day in and out, so wages for those jobs are pretty high. Much like garbage pickup and longshoremen, someone have to do the job.

It is just an example a group of people who got in way over their heads and too dumb to realize it. The group was start adhoc with shoe string budget and when the money start rolling in they just don't know how to deal with it.

If given the chance I wouldn't mind getting one of those jobs.

[godwin]

In all honestly, you need both to be effective. Does an audit on a 30million / year non profit like PHS be cheaper than a 30miiion / year company?

Say your soup kitchen, you still need administrators and coordinators to deal with the soup and facilities etc. In the past, the catholic nuns do that, but now you have to pay someone to do it for you.

The problem withe PHS, is the people on the top are not the brightest, or so megalomaniacal to think that audits won't come out.

Originally Posted by white rocket

The word "charity" is thrown around so much nowadays that it doesn't hold much weight with me. When people phone my work asking for donations I have all sorts of fun with them. If I really wanted to "make a difference" I would volunteer at a soup kitchen in the DTES, walk a dog at the SPCA, etc. Devoting your time is much more effective to ensure that your work is going to the right person. Throwing money at a problem is getting the fat cats behind the cause rich as fuck. That doesn't sit well with me at all. Charity? pfst! my fuckin' ass.

[godwin]

Get your resume to all the DTES places eg PHS, More than a Roof, Coast foundation or Convenant House and apply for Mental Health Support worker or any Support worker. Unlike longshoreman you do need to pass criminal record check. However they do have quite a long waiting list for these jobs.

Just note: You are often dealing with people who are just not rational, what some would called attention consumers after living on the streets in a dog in dog world.

Originally Posted by Mr.HappySilp

If given the chance I wouldn't mind getting one of those jobs.

[Acura604]

Meanwhile, the owners of Vancouver’s finest restaurants are mourning the loss of some of their best customers.

According to the audits, the Portland Hotel Society’s four top executives — including Kwan’s estranged husband — racked up $69,000 in restaurant bills in just three years.

The restaurants included: Gotham Steakhouse, Bishop’s, Tojo’s, The Fish House at Stanley Park, The Blue Water Cafe and Raw Bar, Le Crocodile, Top of Vancouver Revolving Restaurant, Hawksworth Restaurant, West Restaurant, Rodney’s Oyster House, C Restaurant, Chambar, Jules, Bao Bei Chinese Brasserie and MARKET by Jean-Georges at the Shangri-La Hotel.

[rsx]

it'd be nice to see them strung up by their feet and have their throats cut

[Harvey Specter]

Jenny Kwan crying was hilarious. She's crying because she got caught and her political career is over, otherwise she could give a rats ass about wasting taxpayers money.

And I stop giving money to charities, I'd rather buy an item or a meal because I know the $10 I give a particular charity will never make it to the people who need it. Maybe a $1 out of the $10 I give will actual go to the people who need help.

[Hondaracer]

I'll occasionally donate to canucks for kids, children's hospital, or things that I'm actually participating in or have friends in like the underwear affair, ride to conquer cancer, etc

Donating money to some faceless corporation, the government, or charities abroad? Lol, yea right
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[4444]

Originally Posted by rsx

it'd be nice to see them strung up by their feet and have their throats cut

wow, i didn't know we had the Taliban in Vancouver?!

[RRxtar]

Originally Posted by Hondaracer

I'll occasionally donate to canucks for kids, children's hospital, or things that I'm actually participating in or have friends in like the underwear affair, ride to conquer cancer, etc

Donating money to some faceless corporation, the government, or charities abroad? Lol, yea right
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Thats the thing tho, people will donate to causes they feel connected to, regardless of how those charities rate.

The BC childrens hopsital foundation has a D rating.

The 2013 Charity 100 Grades - MoneySense

And one of the most supported charities is the SPCA because people love furry cuddly things, even when there are a thousand other underfunded charities supporting real suffering people.


There are several smaller organizations out there doing things differently than simply asking you to donate your money to a faceless organization with no transparency. ChangeHeroes is a good example of that. You do the fund raising yourself to build a school in Africa/Haiti/etc and you can see exactly where your money goes, and they put your name on the school when its built, and the kids send you thank you mail.

[Hondaracer]

Yea my GF's friend was part of somthing similar. She went over and basically for every dollar you donate that provides X amount of clay bricks, she brings the money over herself, buys the bricks and builds homes/schools

There's never been a time more than ever before than to be speculative about where your money is going.
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[white rocket]

I'm an SPCA guy because I love furry cuddly things and I donate quite a bit each year through my business. I would consider this the most "faceless" charity I deal with.

This is my bro-in-law's charity: http://www.bokeodevelopmentfund.org/ - After traveling to Laos and seeing this organization at work(and also helping) I was really impressed at how far $1 CAD can go. It was an amazing experience for me and it gives some serious perspective on that part of the world compared to where and how we're living here. Despite very poor living conditions they are the happiest people I've ever met. Very humble and very appreciative of every little thing in their lives.

In a world of corporate faceless-type charities it's the grassroots ones that really stand out for me.