Global News has learned about a major audit of the largest Downtown Eastside non-profit association. According to a statement obtained by Global News, The Portland Hotel Society (PHS) is being investigated over massive spending irregularities.
The PHS Community Services Association runs more than a dozen DTES Single Room Occupancy, SROs, plus shares the operation of Insite with Vancouver Coastal Health. Last year the society took in 28 million dollars.
Now, according to BC Housing, a third party accounting firm has been brought in to conduct an independent review of the books – both to ensure public resources are being spent appropriately and the society has proper financial oversight and control in place.
According to documents obtained by Global News:
“BC Housing discovered some irregularities in the Portland Hotel Society’s spending practices and took immediate steps to appoint a third-party accounting firm to conduct an independent review.”
The document suggest the PHS needs to improve financial reporting, corporate governance, and expense management. According to BC Housing, the province is willing to take further actions to ensure public money is protected.
Sources have told Global News the audit deals with expense accounts and the potential of billing irregularities.
According to Canada Revnue Agency filings, travel and vehicle expenses for the society in 2010-2011 were zero, but last year’s filings showed travel and vehicle expenses of $251,279.
The extent of the audit is unknown at this point.
Mark Townsend with the Portland Hotel Society tells Global News he stands by the society’s expenditures.
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