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Legal and Regulatory Compliance 3. LEGAL AND REGULATORY COMPLIANCE 2018 ANNUAL REPORT | PAGE 39 PAGE 40 | 2018 ANNUAL REPORT 3. | LEGAL AND REGULATORY COMPLIANCE 3.1. LEGAL COMPLIANCE OF ORGANIZATIONS HAVING RECEIVED A SUBSIDY OF AT LEAST $100,000 2018 ANNUAL REPORT | PAGE 41 PAGE 42 | 2018 ANNUAL REPORT 3. | LEGAL AND REGULATORY COMPLIANCE 3. LEGAL AND REGULATORY COMPLIANCE 3.1. LEGAL COMPLIANCE OF ORGANIZATIONS HAVING RECEIVED A SUBSIDY OF AT LEAST $100,000 In accordance with section 107.9 of the Cities and Towns Act (CTA), «any legal person who receives an annual subsidy of at least $100,000 is required to have its financial statements audited». This legal person’s auditor must provide the Auditor General with a copy of its annual financial statements, its report on these statements as well as any other report summarizing the auditor’s observations and recommendations to the board of directors or corporate officers of this legal person. This auditor must also, when requested by the Auditor General, provide the latter with any document that relates to the audit works and their results, while also providing all information that the Auditor General considers necessary with regard to these audit works and their results. If the Auditor General considers that the information, explanations or documents obtained from the auditor are insufficient, he can arrange for any additional verification that he views as necessary. In December 2013, the city council also adopted resolution CM13 1157 that requires, amongst other things, organizations having received a subsidy of at least $100,000 to file an annual report each year. Moreover, on June 20, 2018, a set of letters identifying the organizations having received subsidies adding up to at least $100,000 in 2017 was provided by Direction générale to the concerned business units, asking them to provide it, as well as the Auditor General, with a copy of the audited financial statements of these organizations. OBJECTIVE AND SCOPE OF THE MANDATE Our mandate was, first, to ensure that any legal person that benefitted from a subsidy of at least $100,000 from the Ville de Montréal in 2017 complied with the provisions of section 107.9 of the CTA concerning the submission of a copy of its audited financial statements to the Auditor General. For all organizations, our procedures consisted of reconciling the amounts identified for the organizations in the letters sent to them by the Direction générale and the total sub- sidies in the Ville de Montréal financial statements. We reconciled the differences, where required, with the list produced by the Direction générale. Since we had not received all the audited financial statements from the organizations, on September 10, 2018, and December 5, 2018, letters were transmitted as a reminder of the business units responsible for the follow-up. 2018 ANNUAL REPORT | PAGE 43 3. | LEGAL AND REGULATORY COMPLIANCE As of February 24, 2019, all organizations that received a grant of at least $100,000 sub- mitted a copy of their 2017 financial statements. However, the following five organizations did not meet the obligations of the contribution agreement signed by the parties since they did not submit audited financial statements. ORGANIZATIONS NON-COMPLIANT AMOUNT RECEIVED Service de la culture l’Atelier Circulaire Review Engagement $193,997 Maison québécoise du théâtre pour l’en- Review Engagement $115,452 fance et la jeunesse (La Maison Théâtre) Villeray–St-Michel–Parc-Extension borough Centre communautaire Jeunesse Unie Review Engagement $113,598 de Parc-Extension Mercier Hochelaga-Maisonneuve borough Centre des Jeunes Boyce-Viau (CJBV) Review Engagement $104,483 Ville-Marie borough L’Auguste Théâtre Review Engagement $101,000 TOTAL $628,530 Section 107.9 of the CTA requires audited financial statements. Two organizations have failed for a second consecutive year: the Centre des Jeunes Boyce-Viau and the Centre communautaire Jeunesse Unie de Parc-Extension. PAGE 44 | 2018 ANNUAL REPORT 3. | LEGAL AND REGULATORY COMPLIANCE The Bureau du vérificateur général (le Bureau) has established a new audit program for organizations subject to section 107.9 of the CTA. As set out in the CTA, the Bureau has expanded the scope of its work for a selection of chosen organizations based on certain criteria. The review of the auditor’s files was underway at the time of publishing this report for the following organizations: ORGANIZATIONS YEAR END AMOUNT RECEIVED Société du Musée d’Archéologie et d’Histoire December 31, 2017 $28,519,375 de Montréal Pointe-À-Callière Partenariat du Quartier des spectacles December 31, 2017 $6,977,125 Société de développement commercial December 31, 2017 $4,338,291 Destination Centre-Ville Montréal (SDC) Institut de l’Électrification des Transports December 31, 2017 $1,530,000 Intelligents (Jalons Montréal) Société de développement commercial December 31, 2017 $2,147,081 du Vieux-Montréal-Quartier Historique (SDC) Concertation régionale de Montréal (CMTL) December 31, 2017 $2,125,000 CONCLUSION In 2017, the City disbursed a total of $213.5 million including $188.1 million (i.e., 88.1%) to 255 organizations that received subsidies adding up to at least $100,000 and to which the requirements of section 107.9 of the CTA apply. By February 24, 2019, the Bureau had received the 2017 audited financial statements for 250 (i.e., 98%) of the 255 organizations affected by this requirement under the CTA, for a total of $187.5 million. We encourage the City to continue its work of educating organizations on the require- ments of section 107.9 of the CTA and of resolution CM13 1157. The table on the next page provides a detailed list of the organizations that received $100,000 or more in 2017. 2018 ANNUAL REPORT | PAGE 45 3. | LEGAL AND REGULATORY COMPLIANCE 3.1.1. DETAILED TABLE – LEGAL COMPLIANCE OF ORGANIZATIONS HAVING RECEIVED A SUBSIDY OF AT LEAST $100,000 IN 2017 AUDITED FINANCIAL MISSING AMOUNT OF STATEMENTS NAME OF ORGANIZATION FINANCIAL SUBSIDY IN 2017 NON- COMPLIANT STATEMENTS COMPLIANT Conseil Local Intervenants Com- munautaires Bordeaux-Cartierville $253,911 x (C.L.I.C.) Prévention Du Crime Ahuntsic/ $213,568 x Cartierville Entre-Maisons Ahuntsic $167,520 x Service Des Loisirs St-Martyrs- $149,570 x Canadiens De Montréal Loisirs De L’Acadie Montréal $143,166 x TOTAL AHUNTSIC-CARTIERVILLE $927,735 5 0 0 BOROUGH Loisirs Sportifs Côte -Des-Neiges - $1,179,652 x Notre-Dame-De-Grace Comite Jeunesse $693,880 x De Notre-Dame-De-Grace Société Environnementale $470,671 x Côte-Des-Neiges Prévention Côte -Des-Neiges $429,894 x Notre-Dame-De-Grace Centre Communautaire De Loisir $335,811 x De La Côte-Des-Neiges Centre Communautaire Mountain $157,100 x Sights Association De La Communauté Noire $145,855 x De Côte-Des-Neiges Centre De Ressources $140,000 x Communautaire Côte-Des-Neiges Maison Des Jeunes Côte-Des-Neiges $111,860 x TOTAL CÔTE-DES-NEIGES– NOTRE-DAME-DE-GRÂCE $3,664,723 9 0 0 BOROUGH PAGE 46 | 2018 ANNUAL REPORT 3. | LEGAL AND REGULATORY COMPLIANCE AUDITED FINANCIAL MISSING AMOUNT OF STATEMENTS NAME OF ORGANIZATION FINANCIAL SUBSIDY IN 2017 NON- COMPLIANT STATEMENTS COMPLIANT Groupe De Recherche Appliquée $121,257 x En Macroécologie (Grame) Festival De Théâtre De Rue $115,000 x De Lachine La Maison des Jeunes l’Escalier $113,287 x de Lachine Inc Les Concerts Lachine Inc $104,500 x TOTAL LACHINE BOROUGH $454,044 4 0 0 Centre Culturel et Communautaire $302,181 x Henri-Lemieux Société de La Salle Jean-Grimaldi $100,268 x Héritage Laurentien $333,491 x TOTAL LASALLE BOROUGH $735,940 3 0 0 Société de Développement $923,352 x Commercial Hochelaga-Maisonneuve CCSE Maisonneuve $583,563 x Y’A Quelqu’Un L’Aut’Bord Du Mur Inc. $574,938 x Table De Quartier Hochelaga- $366,943 x Maisonneuve L’Unité d’Intervention MobÎle $291,501 x l’Anonyme Hockey Quebec - Region De Montreal $244,000 x Solidarité Mercier-Est $220,644 x L’Antre-Jeunes De Mercier-Est $190,722 x Comite Musique Maisonneuve Inc $169,000 x Centre Communautaire Hochelaga $155,450 x (C.C.H.) Service Des Loisirs Ste-Claire $149,000 x La Maison Des Jeunes Magi $148,643 x De Mercier-Ouest Inc. Mercier-Ouest Quartier En Santé $128,973 x Gcc La Violence! $119,394 x Club Aquatique De L’Est De Montréal $114,100 x Association Régionale De Soccer $109,140 x Concordia Inc. Service des Loisirs St-Clement $108,300 x Service des Loisirs St-Fabien $105,444 x 2018 ANNUAL REPORT | PAGE 47 3. | LEGAL AND REGULATORY COMPLIANCE AUDITED FINANCIAL MISSING AMOUNT OF STATEMENTS NAME OF ORGANIZATION FINANCIAL SUBSIDY IN 2017 NON- COMPLIANT STATEMENTS COMPLIANT Corporation D’Animation $105,000 x des Places Publiques Centre Des Jeunes Boyce-Viau $104,483 x TOTAL MERCIER–HOCHELAGA- $4,912,590 19 1 0 MAISONNEUVE BOROUGH Un Itinéraire Pour Tous $318,620 x Econord $234,548 x Les Fourchettes de l’Espoir $224,260 x Programme Horizon Jeunesse $211,520 x Artistes En Arts Visuels Du Nord $155,642 x De Montréal : Aavnm Corporation de Développement $117,000 x Économique (Cdec) Montréal-Nord TOTAL MONTRÉAL-NORD $1,261,590 6 0 0 BOROUGH Lester B. Pearson School Board $227,126 x Action Jeunesse De L’Ouest-De-L‘Ile $232,221 x TOTAL PIERREFONDS-ROXBORO $459,347 2 0 0 BOROUGH Société Ressources-Loisirs $1,000,952 x De Pointe-Aux-Trembles Maison Des Jeunes $424,054 x De Pointe-Aux-Trembles Équipe R.D.P. $225,208 x Eco De La Pointe-Aux-Prairies $206,700 x TOTAL RIVIÈRE-DES-PRAIRIES– POINTE-AUX-TREMBLES $1,856,914 4 0 0 BOROUGH Société De Développement Environne- $663,927 x mental De Rosemont (Soder) Inc.
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