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A call for retroactive audits falls short

The Graduate Students’ Association voted to table a controversial motion and pass one of their own Tuesday following proposals from current and former Concordia Student Broadcasting Corporation’s Board of Directors members regarding retroactive audits.
The tabled motion introduced by former CSBC BoD member Sabine Friesinger and Chadi Marouf, would have the GSA encourage CSBC to begin retroactive audits going back three years. If this was not done, the motion would allow the GSA to pull their fee-levies from CJLO, the student radio station that CSBC manages. Instead of accepting that, the GSA passed a motion advocating that the CSBC revise their bylaws in order to provide democratic and transparent practices within one year and publish three years worth of financial statements on their website.
Friesinger and Marouf spoke first on the matter, outlining what they interpreted as a history of financial mismanagement and unanswered allegations from an organization that Friesinger said received the most in student fee-levies of any group on campus but had the least oversight.
A second topic which became the focus of much concern was the CSBC’s membership list, the existence of which many at the meeting were unaware of. The list, which dictates who is and who is not considered a member of the organization, only contains the names of individuals who ask to be included despite the fact that all graduate and undergraduate students pay fee-levies into the corporation.
Angelica Calcagnile, president of the CSBC, argued that retroactive audits were an unnecessary expense and a waste of student money. The auditor employed by both the CSBC and the GSA advised CSBC’s board that audits were not needed for a corporation of their size, and that a financial review would be the industry standard. As Calcagnile explained, the difference between financial reviews and audits are that a review is less expensive but also less thorough than an audit, and is used by almost every organization on campus. The Concordia Student Union, as a multi-million dollar corporation, is legally obligated to provide audits.
During the question period that followed, GSA executives and members raised concerns on a number of issues, including the CSBC’s membership policies. According to Calcagnile, fee-paying students must sign up to be considered voting members of the CSBC according to laws that require them to hold a list of all their members. Due to privacy concerns, the university cannot give the CSBC a list of all fee-paying students, which means that they must keep one themselves.
“We are open to any undergrad or grad student to come and vote at our [Annual General Meeting,]” Calcagnile said. “All they need to do is register with us that they are an undergrad or graduate student, and the agreement that we make people sign basically says ‘I am a student and I have a vested interest or I am interested in voting.’ Nobody has ever been denied and there’s no reason for us to.”
Once both Calcagnile and Friesinger left the room, the GSA debated what actions would be the best response to the motion in question and the concerns they now had. Simon Vickers, one of the GSA’s Arts and Science directors, said at the meeting that he was concerned with the tone of the presentations and some of the additional information provided by Friesinger. This included a copy of a personal email exchange with Wendy Kraus-Heitmann, a former member of CUTV’s provisional BoD.
“It seems to me that they’re positioning us between some sort of infighting that deals with things that are outside of this audit,” Vickers said. “It seems that we’re being asked to attack [CSBC], and I don’t think that we should move forward with this, I think that we should find an alternative.”
Friesinger’s motion was eventually tabled until a future meeting to allow the GSA more time to investigate the matter, and to allow them to pass their own motion in response.
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CSBC credit card fraud addressed at AGM

Graphic by Jennifer Kwan.

Credit card fraud, the split with Concordia University Television and an ongoing debate over how financial records should be reviewed were all issues addressed at the Concordia Student Broadcasting Corporation’s Annual General Meeting last Saturday.

During the hour-long meeting, CSBC President Angelica Calcagnile gave an overview of the Board of Directors report, the CSBC’s financial statements were reviewed and elections and re-elections of the BoD took place.

During the BoD report, Calcagnile gave a frank explanation of current issues the CSBC has been dealing with, such as the issue of money still owed to CUTV following their separation last fall. The money, owed to CUTV following an audit of the value of the station, amounts to just over $14,000. Patrice Blais, treasurer of the CSBC, explained that the figure does not take into account money that CUTV spent using the corporation’s accounts, including the purchase of new computers and credit card statements dating back to June. Blais estimated that a more accurate figure of the money still owed would be between $7,000 and $10,000.

Calcagnile described to members a recent incident of credit card fraud on three of the CSBC’s credit cards. The fraudulent transactions committed in December, totalling $862.19, were spotted and reversed in early January.

“I was alerted to it by multiple sources around the 10th of January and it was resolved I believe the 10th of January as well,” Calcagnile said. “They credited our accounts and there was no damage whatsoever. There might be something that we’ll see on our next statement, because they might have continued to commit [fraud] into January, but the cards were cancelled.”

After the bank returned the money, CSBC opened a file with the Montreal Police. Calcagnile explained that the issue was not one the authorities considered to be worth investigating due to the fact that the amount was small and no financial damage resulted from the incident.

A third issue mentioned during the BoD report was a push by former CSBC director Sabine Friesinger for retroactive audits of the CSBC’s books going back three years. The motion was put forward at the CSBC’s BoD meeting in January and was voted down. According to Calcagnile, the issue will be addressed at the Graduate Students’ Association Tuesday.

“[Friesinger] is trying to get the GSA to agree to encourage us to do a retroactive audit and if not, the outcome of that motion is that they could hold our GSA fee-levy,” said Calcagnile.

Calcagnile went on to explain the reasoning behind the CSBC’s switch from audits to financial reviews several years ago, stating that it wasn’t necessary to perform full audits.

“The auditor said, ‘listen, I’ve looked at your books and I’ve been doing your books for X amount of years and it doesn’t seem necessary, it represents a significant cost to you that I don’t feel is necessary for your organization’,” she said. “Here at Concordia, the only organization that does a full audit every year is the Concordia Student Union and they’re dealing with significantly more money than the rest of us.”

Friesinger, the one who first proposed the motion, told The Concordian that allegations of mismanagement during the separation of CUTV and CSBC were what first led her to the idea of retroactive audits.

“If those allegations are proven to be wrong after a full audit then all the better,” said Friesinger. “But when these kinds of things are said and people are worried about it then we need to take action on it.”

Friesinger also explained that the amount of funding the CSBC receives from student fee-levies was another reason she was concerned with what she called a lack of financial transparency.

“I don’t know whether or not there is financial mismanagement, but I know that when I asked about seeing bank statements or credit card statements, or even statements from internal accounts, I was refused.”

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