CMHC Client Visit - Management/Books and Records Review

Canada Mortgage and Housing Corporation (CMHC) corresponded with Athol Green Co-opeative Homes Incorporated (Co-op) on April 23, 1996, prior to a CMHC Client Visit held on May 6 and 7, 1996 and after the Client Visit with the CMHC Co-op Client Visit summary of findings dated July 10, 1996.                                                               

                                                                       CMHC

April 23, 1996

Pat Shannon, Co-Ordinator

Athol Green Co-Operative Homes Inc.

250 Dunlop Street East

Whitby, Ontario

L1N 1S3

RE:   CMHC Ref: 09-104084

         Client Visit -Management/Books & Records Review

As you are aware, it is our policy to conduct periodic client visits to review the management practices of a project. It is also an opportunity to meet with management and see the building. As agreed in our telephone conversation of yesterday, we are scheduled to meet on Monday May 6 & Tuesday May 7, 1996 from 9:00 am to 2:00 pm each day.

The visit will review the administration, membership policies and files, maintenance, and finance areas of the organization.. In order to facilitate our review of selected items, it would be appreciated if you could please gather the following documents.

Required Documentation:

* List of current Board members

* Minute Books of Board meetings

* Latest filing of Form 1-Corporations Information Act, with the Ministry of Consumer and Commercial Relations, Companies Branch

* List of Financial Signing Authorities

* Bank Statements & Cancelied Cheques, Deposit books

* Replacement Reserve Bank Account

* General Ledger

* Paid invoices

* Standard Occupancy Agreement

* Copies for our files would be appreciated.

                                                               

                                                       CMHC

                                                                                                                                                        Page 2

Required documentation (cont'd):

*Organizational Chart and Management Contract

* Employee job descriptions

* Project's insurance policy (building/property, liability, bonding/fidelity etc)

* Arrears Policy

* Current vacancy list if applicable

* Current arrears list if applicable

* Maintenance schedule (plan)

* Major contracts in place (e.g. elevator, management, mechanical)

* Latest auditor's management letter (letter of recommendations)

* Copies for our files would be appreciated.

Please find enclosed a Client Visit Questionnaire. In order to facilitate our review, please have this questionnaire completed prior to the visit.

Thank you for your co-operation and assistance in this matter. If you have any questions regarding our visit, please do not hesitate to contact me at (416) 781-2451 x.7063. Please also consider this an opportunity to meet and discuss any issues of concern to the Co-Operatibe.

I look forward to meeting you on May 6, 1996.

Yours sincerely,

Kathryn AuCoin

Portfolio Management Officer

cc: Board of Directors

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Some noted excerpts from a CMHC Co-op Vlient Visit summary of findings dated July 10, 1996.

It should be noted that some information in parts of this Co-op Client Visit summary of findings appear to be removed from view by CMHC, and/or some information withheld from view, by Ken Hummel (Ken), Member, Athol Green Co-opeative Homes Inc.

______________________________________________________________________________

______________________________________________________________________________

                                                                       CMHC

July 10, 1996

Attn: Board of Directors

Athol Green Co-Operative

200-250 Dunlop Street E.

Whitby, Ontario  L1N 1S3

RE: CMHC REF. 09-104-084

Dear Board of Directors:

The purpose of this letter is to summarize the findings of the Management Books and Records Review of Athol Green Co-Operative, performed by CMHC on May 6 & 7, 1996. Please accept my sincere apologies for the delay in reporting these results to you.

I would like to first extend my thanks to Pat Shannon and Sue Lang for their co-operation and assistance during the visit. I appreciate the time committed to help during my review.

The review was performed in accordance with CMHC policies and guidlines and included reviews of the books and records maintained by the organization at the site office.

Our findings and recommendations are set out for your consideration in the spirit of enhancing your internal control process. Internal controls are those controls put in place by the organization to ensure timely collection of member arrears, proper authorizations, and timely reporting to appropriate parties. Nothing in this letter is intended to reflect on the honesty or integrity of the staff and members.

The following is a summary of the findings and suggested recommendations:

ORGANIZATION & ADMINISTRATION

BOARD MINUTES

While Board minutes were retained on file, they were not signed by the Board in all cases (January 1996 to current).

                                                                       CMHC                                                                                                                                                                   

                                                                                                                                                        Page 2

FINANCE

ARREARS

The Board and staff are to be commended for reducing the level of arrears at the Co-Operative

We encourage continued efforts in this regard.

CURRENT ACCOUNT

At March 29, 1996 the balance in the current account was          and the balance in the laundry account was      These are high amounts to keep in current accounts.

ALLOCATIONS TO COMMITTEES

It was noted in the Board minutes that increased importance is being put on the spending of money by committees,  However, it was noted that problems had occurred in the past.

CASH RECEIPTS

It was noted that cash was being accepted as a form of payment at the Co-Operaive.

DISBURSEMENTS

Two cheques were noted in the period selected for review (June 1995 - March 1996) which had only 1 signing officer's signature on them.

                                                                            CMHC

                                                                                 

                                                                                                                                                        Page 3

FINANCE (CONT'D):

EQUIPMENT

No formal listing of Corporation owned equipment is kept.

MEMBERSHIP/SUBSIDY

BOARD ARREARS

It has come to our attention that at the time of the review a Board member was in arrears.

HOUSING POLICY

It was noted that several 2 - Bedroom units were being occupied by single individuals.

Yours sincerely

Kathryn AuCoin

Portfolio Management Officer

(416) 781-2451 x.7063

cc: Pat Shannon, Co-Ordinator

______________________________________________________________________________

______________________________________________________________________________

Ken shares some views, opinions, and comments in regards to the CMHC Client Visit held at the Co-op on May 6 and 7, 1996 and CMHC Co-op Client Visit summary of findings dated July 10, 1996 and that CMHC offered an apology for the delay in reporting the results to the Co-op Board of Directors.

In Ken's view, CMHC attended the Co-op to conduct this Client Visit on May 6 & 7, 1996 from 9 am to 2 pm each day to review books and records of management equates to a 10 hour review.

In Ken's view.  the CMHC summarized findings of Co-op management provided very little information.

In Ken's opinion, the CMHC detailed findings of Co-op management were not published in this Report.

In my view, CMHC recommendations that consisted of 1-page contained nearly no information that was deliberately removed from Ken's view. No information from that page was posted in this blog.

In Ken's opinion, the CMHC delay in reporting the summary findings results to the Co-op board of directors may not be in relation to their findings or in fact may be because of their findings during the 2 day Client Visit.

Co-op board of directors meeting minutes in 1999, and Ken's report in PDF CLICK HERE

Ken's 2003-1981 spread sheet of Co-op audited financial statements in PDF CLICK HERE

Ken's Co-op 99-page horror story that includes accusations and allegations in PDF CLICK HERE

CMHC Co-op Client Visit, and Investigation that was conducted in 2004 CLICK HERE

Information may be revised, added or removed without prior notification

Ken Hummel, Member, Athol Green Co-operative Homes Inc.