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7 Serious Questions About the CBRM Sustainability Fund

goCapeBreton.com Team
Posted this (updated )

The CBRM Sustainability Committee provides taxpayers' money to local organizations to help fund capital acquisitions, operations, and events.  Some groups have received hundreds of thousands of dollars from this fund. 

 
Tera Camus created posts on goCapeBreton.com in November 2015 and July 2016  which listed the recipients of money from the Sustainability Fund. In these posts, Camus revealed that many of the organizations receiving money did not meet the fundamental eligibility requirements as stated in the application guidelines (document attached below).
This discovery prompted Camus to characterize the program as a "slush fund" - a term often used to describe public money that is administered without proper guidelines and that may be used for political or personal reasons. Her posts generated significant discussion and attention here on goCapeBreton.com and in the broader community.  
 
The ongoing controversy prompted the Team at goCapeBreton.com to pose questions to CBRM's Chief Administrative Officer (CAO) to hopefully provide some clarity to the Sustainability Fund processes. 
 
Here is what we have learned:
 
  • The CBRM Sustainability Fund has clear guidelines for application and the CBRM CAO confirmed that they are still in effect.  If you read them, you will see that it is true that many of the organizations receiving money did NOT meet basic eligibility requirements. In fact, a large portion of the funds were given to organizations that clearly did not meet the first requirement. 

  • The CAO advised that, "The policies of eligibility for sustainability are still in effect. Council, however, can go outside of policy and do from time to time."  The full questions and answers are provided below for reference.
To be clear, it appears that many well-deserving organizations have received money from the Sustainability Fund. But, the circumstances of how funding decisions are being made is at issue.
This raises a number of concerns that Council should consider discussing with the citizens of CBRM:

  1. The need for Council to have some discretion in bending the rules on occasion is reasonable, but it seems that disregarding the rules is now the norm. Are Councillors acting appropriately with taxpayers' money?

  2. It is possible that many organizations deserving support are not applying because they believe they are not eligible. Are they aware that the rules are frequently waived?

  3. Is it appropriate for such a large percentage of the money to go to for-profit organizations (specifically contrary to the guidelines) at the expense of non-profit organizations?

  4. Is it appropriate for funds to be given to CBRM projects that should normally be funded under internal operating budgets? Is this the purpose of the Fund?

  5. If the "official process" is routinely ignored, are Councillors acting in bad faith with other applicants who need resources to help achieve their social objectives? 

  6. What are the limits (if any) with regards to how Councillors can choose to spend this money? 

  7. If CBRM staff and Council believe that the current rules are not in the best interests of the citizens of the CBRM, then why not invest a few hours to formally change them?  Would this not be the fair and responsible thing to do?
At goCapeBreton.com, we attempt to stay neutral on all topics so that we can allow the people of Cape Breton to share their own opinions, conduct meaningful discussions, and come to their own conclusions. Our objective with this post is to help guide meaningful discussion by providing factual information that individual citizens may not easily discover elsewhere.
 
Note that Tera Camus is not affiliated with goCapeBreton.com.  goCapeBreton.com is a free website that allows anyone to post local news, information, events, and more.
 
You may post your comments below.
 
 
OUR QUESTIONS ANSWERED BY CBRM CHIEF ADMINISTRATIVE OFFICER.
Text in italics are quotes from the Application Guide.

RE:  General Eligibility Criteria
The applicant shall be a registered Canadian charity or a non-profit society registered with the Nova Scotia Registry of Joint Stocks. Registration must be current: defaulted, expired or revoked status is ineligible for further consideration. Grants are not awarded to individuals, commerce, business, industry or sole proprietorships under this policy.  

The applicant organization is located within the geographic boundary of The Cape Breton Regional Municipality. The intent is to invest local resources in local initiatives and build residents’ organizational capacity."

Q:  Are these criteria still in effect or have they been altered or modified by Council?

A:  The policies of eligibility for sustainability are still in effect. Council , however, can go outside of policy and do from time to time if they feel the Project warrants doing so (It should be noted that this is done during council meetings in the public realm).  FYI The allocation for the Ben Eoin Recreation project last year was approved out of surplus.

 

RE: "The Sustainability Committee meets regularly to review applications, and to make recommendations. The Sustainability Committee sends a report to Council listing the recommended and approved grants. "

Q:  Who are the members of the Sustainability committee, and did they meet and recommend approval of the 2016 recipients’ projects?

A:  Members of the committee include: Manager of Recreation, Manager of Finance, CFO and one administrative support person.  A Recreation Program Coordinator is brought in from time to time for consultation on event funding

RE: "Applications are sent to municipal staff to evaluate. Applications over fifty thousand ($50,000) are forwarded to council for review."

 

Q:  Were projects over $ 50,000 sent to council for approval? If so was Council not aware that some of these projects were ineligible?

A:  Council make the decision on asks over $50,000.  They are given a copy of the application and the policy.

Q:  What was the justification for allowing ineligible projects to be reviewed.

A:  Again, Council have the discretion to go outside of policy if they feel it is warranted given the merits of the project.

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Joe Ward Follow Me
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A policy isn't much of a policy if it's designed to be broken. Policy: just wing it? And the CAO (where the "O" stands for Operations) isn't much of a CAO, if he/she doesn't see the error. If council allows situations where: (a) for-profit organizations can tap into the fund, (b) informal organizations that have no registration can tap into the fund, (c) not-for-profits with expired or inactive status registrations can tap into the fund, (d) other departments of the CBRM can use the fund when they've exhausted their own budget, or (d) CBRM procurement rules can be ignored and allow awarding of funds to private local businesses without competition (i.e. Business Cape Breton blossoming program situation) ►Then draft revisions to the policy, distribute them to council members 2-4 weeks in advance, and then bring them to a debate and vote before council. If it turns out that the public disapproves of their decision, those who vote in favor of the changes may be held to account shortly thereafter or at the next election. Isn't that how a democratic process is supposed to work? And whatever the new policy is, treat is like a policy and follow it. That's how policies are supposed to work. Note to Mayor Clarke: During the meeting, you made continued excuses, despite CFO Marie Walsh clearly instructing council that the blossoming program did NOT belong in the sustainability fund. Then you suggested that the "next administration" would decide the changes. I'd just like to remind you that your job isn't done. If your councillors are pressing the yay or nay button, then they are still responsible for following current procedure. And if they didn't modify that procedure in time, too bad. They can wait for what they want, just like when you made the Synergy Louisbourg group or other community development groups repeatedly face delays.
Joe Ward Follow Me
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Here is the link to the June 8th, 2016 council session: http://archive.isiglobal.ca/vod/cbrm/archive_2016-06-08.mp4.html
P Sheehan Follow Me
Reply 1 0
No wonder taxpayers get mad at civil servants . Here we have a case where it sounds like the top civil servant , the CAO, and the top finance person were recommending and approving applications for approval that did not qualify . Now why ??? The applications that went to Council should have been clearly labelled as to those that met the criteria and those that did not. Yes, a Council can change it's policy, but NOT in the middle of the game . Programs like this have to be administered just like tender calls for bids on anything . You qualify or you do not, and if not , you are out . Taxpayers have a right to know how their tax dollars are being spent and the process has to be transparent . No back-room deals on things so simple as community grants . Someone over stepped their authority here maybe .
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