Damning review details former Red River College president’s spending

WINNIPEG – A review of Red River College’s financial and management practices under former president Stephanie Forsyth states she made improper claims and circumvented college policies to approve them herself.

The report’s executive summary points to “potentially questionable fiscal prudence,” using as examples entertainment at home, choice of restaurant and discretionary expenses claimed despite an allowance of four per cent of Forsyth’s base salary already being paid for such expenses.

“We also found instances where expenses paid and claimed by other RRC employees included expenses of the president for items such as meals, conferences, and transportation,” the review states.

“This not only circumvented both the (board of governors) chair approval process, and the previous travel and expense policy stipulation that the most senior college staff member present should pay for the expense, but also resulted in the president reviewing and approving some of her own expenses which were paid and claimed by other staff. These expenses should have been paid and claimed by the president, and submitted to the BOG chair for approval.”

Forsyth’s alleged use of Red River College building materials in her home kitchen has been referred to police for investigation, the college’s board revealed at a news conference Wednesday.

READ MORE: Winnipeg cops probe complaint against former Red River College president

The expenses claimed by others for Forsyth and expenses incurred by Forsyth that were paid for directly by the college were also omitted from public disclosure online, which was required starting April 1, 2013, the review states.

Expense claims other than those made by the president were generally compliant with policies with some exceptions that were not materially significant, the report says.

Forsyth resigned from her position effective Aug. 31, 2014, and the review team was unable to meet with her, the report states.

READ MORE: No back to school for Red River College president

Among the questionable expenses outlined in the report:

• $11,515 paid to a culinary institute in France for membership in an alliance of 14 universities, with Red River being the only Canadian member. “It was also not clear why three staff, including the presidents, were required to visit the facility in France in order to become a member of the alliance when a smaller delegation may have been sufficient,” the review says.
• Wine bought for a president’s council retreat and delivered to Forsyth’s home. Management stated she was taking it to the out-of-town retreat.
• Gas bought by Forsyth’s spouse while the president was on a business trip.
• A car rental receipt for a trip to B.C. dated the day before Forsyth’s flight arrived, and B.C. Ferry receipts specifying two passengers, with no indication of who the second person was.
• $2,219 for three interviews held on three consecutive evenings at an upscale restaurant.
• $514 for food and beverages for five events hosted at Forsyth’s home, without documenting the specific business purpose.
• Approximately $368 for 10 meals that only college staff attended, which college policies state cannot be claimed as a business expense.
• Airport lounge passes or priority pass memberships twice for Forsyth and others without any documentation that there was a layover of three hours or more, as required by college policies.

Among the expenses claimed by five other staff members that should have been claimed by the president were:

• $1,057 for taxis and meals taken with the president;
• $953 for meals, including $380 for meals at which the person claiming the expense was not present;
• $1,261 for a conference and airfare for the president, which the president approved herself; and
• $1,122 for meals, taxis and flights associated with a trip to China which the president and the claiming individual made together.

In addition, a sponsorship reduction for a room rental was given to a client associated with Forsyth’s spouse, the review states.

“A magazine advertising vendor … received a sponsorship reduction of $750 approved by RRC’s president pertaining to a room rental costing $6,929.51 at RRC’s School of Hospitality and Culinary Arts facility. On the basis of available information, sponsorship reductions were not being provided to other organizations. This sponsorship also appears to be a conflict of interest as the president’s partner was the chair of the client of the event,” the review states.

Excluding car expenses (insurance, gas and repairs), Forsyth’s expenses increased 19 per cent to $32,993 in 2012-13 from $27,745 in 2011-12, the review says. After online reporting requirements were started in 2013, the president’s expenses decreased 26 per cent to $24,356 in 2012-13. In addition to those expenses, Forsyth also got a car allowance of $1,000 per month and the previously mentioned discretionary expense allowance of four per cent of her salary. Before May 2013, Forsyth’s car allowance was $650.