Before publishing a potential path forward, I feel it is important to highlight a few events that raised some red flags for myself. They may seem insignificant but, should be concerning to all band members. The below event gives a small window into how Chief and Council operates.
Executive Committee Presentation (April 19, 2021)
Due to the public backlash, the executive committee presented their work on Chief and Council's compensation and salary. This presentation was meant to provide background information on how Chief and Council are compensated. The executive committee's aim was to clarify any confusion that band members had related to the committee's work towards standardizing Chief and Council's salary and expenses.
Complete Misunderstanding of Expenses
Mario Swampy stated that the salary received by Chief and Council was "problematic". He explained that there was a base salary but their actual salaries were "double or triple" that amount. That is simply not correct. Their base salary is standardized amongst each other. According to the presented schedule, the chief's salary is $75,000 a year and each councillor receives $70,000 a year (Congrats Executive Committee with trying to increase the standardized salary. If you didn't get your intended outcome the first time, then why not try the same ineffective approach again). On the other hand, the claimed expenses of each member is where the variation actually appears to occur.
** Side Note: it looks like the executive committee should actually focus their work towards drafting and enacting a bylaw; This specific bylaw would regulate the expenses claimed by Chief and Council with a requirement to provide an itemized list that would be publicly published for band members review. I don't want to tell our leadership how to do their job. So, as a band member, I will publish this one suggestion. But, I digress. **
From my limited understanding of accounting (and quick search on google), expenses claimed are meant to cover the costs incurred while conducting business on behalf of the band. This is an important mechanism as employees should not have to cover expenses incurred on behalf of their employer. There is normally guidelines and requirements for eligible expenses that must be met to make a claim. On the other hand, a salary (i.e. remuneration) is compensation provided to a worker, in return for work performed. Chief and Council appear to think that they can claim expenses to increase their salary. That is simply wrong. I am surprised that Mr. Swampy included expenses as part of Chief and Council's salary (as he is the chair of finance).
Audit vs Schedule
It was repeatedly stated that the Schedule of Remuneration and Expenses for 2019 was "audited".
I decided to verify that claim by reviewing the document myself (see link below). On page 1, it clearly indicates that their remuneration and expenses are "unaudited". Upon further reading, the accountants again clearly state that they cannot express an audited opinion on the schedule.
This presentation was posted to Samson Cree Nation's Facebook page. I left a comment indicating this discrepancy so they had an opportunity to correct it. AS normally, government officials will publish a correction along with an official apology for misinforming the public. No such corrective actions were undertaken by Samson Cree Nation or the Executive Committee.
It is problematic to claim that the schedule was audited for the following reasons:
- The schedule was only a review. A review does not include an investigation of the band's internal control systems or risk of fraud (which would be included in an audit).
- Every department/program/business enterprise/trust in Samson Cree Nation is audited but somehow the expenses and salary of Chief and Council is excluded from this exercise.
As such, the only explanations for this mistake can be one of the following:
- sheer ignorance of finances and accounting practices;
- overall laziness to provide accurate information; or,
- blatant dishonesty.
Either option is not a good look. I feel like I am choosing the least problematic option. As a band member, this frankly does not sit well with me.
Stayed tuned for Part 4 - Continuation of Inconsistent Messaging
Disclaimer: all opinions and views expressed are my own.
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