On January 13, 2015 a loan of $84,000.00 was approved and granted to President Nunoda by subordinate Linda Sanderson, Executive Director HR and requisitioned by Kathleen Campbell, then Associate Director Financial Reporting (promoted to Director Corporate Services March 30, 2015 $15,000.00 increase) without Vancouver Community College Board of Governors approval or knowledge.
Why was the Board not aware of this loan? As the President is the only employee of whom the Board has responsibility this should have been in the Board’s domain. We do not know what the purpose of the loan was. If it is an advance against moving expenses it begs the question why a loan for $84,000.00 rather than as stipulated in the employment contract $40,000.00 with receipts. In the absence of specific regulation one must rely on the Board to ensure that risks are being managed effectively.
It is impossible to make rules to contemplate every situation, nor should the institution attempt to do so. The Colleges and Institutes Act makes the following statement which provides guidance:
8.2 In carrying out the objects of an institution, the members of the board of the institution must act in the best interests of that institution.
The test therefore is whether the loan is in the best interests of the institution. If the loan is not in the best interests of the institution, it should not be given – no specific rule needed – IT IS FORBIDDEN!
If it is determined that the loan is in the best interests of the institution good judgment would guide one to seek HR committee approval but also requires input from the CFO who is responsible for monies, then approval of Board Chair. Performance is a HR committee responsibility but finance is a Finance and Audit Committee responsibility.
In the absence of specific regulation one must rely on the Board to ensure that risks are being managed effectively. We have come to learn the loan was not paid on time and according to information to date–not paid in full.
As you are aware public sector expenses have been in the news and government is aware. A loan approved by a subordinate for their boss outside of policy or employment contractual obligations should create concern for any Board of Governors, Finance Committee, stakeholders and the public.
More to come…
Cheque requisition FOI 150331-01
Cheque repayment FOI 150505-01 redacted