So... Here's a Summary of my Problems with the Boys School Numbers

-------- THEY DON'T ADD UP!---------

1. Final reported totals to the end of July 31, 2007 - Revenues $1,193,886.85, Expenses $402,189.58, Balance in Shelburne Funds reported $791,697.27.

PROBLEM - Based on this one page summary provided by SWSDA's CEO Frank Anderson, you can't tell where or when the money was spent. Details respecting these expenditures are missing so there is no way to validate the legitimacy of the charges by SWSDA to the Boys School Maintenance Fund or the status of the revenues from the sale.

2. The final reported totals to the end of September 30, 2007 - Revenues $1,088,458.85, Expenses $306,103.00, Balance in Shelburne Funds reported $782,355.85.

Compelled by the lawsuit to justify his expense claims Mr. Anderson provides a summary of expenses to the end of of September 2007 plus a 25 page breakdown of itemized expenses and the dates the expenses were logged in his Sworn Affidavit of November 27, 2007 as Exhibit B. Please note, this is the only information EVER provided by SWSDA, about expenses that gives details of expenditures .... and the only sworn evidence of monies claimed by SWSDA to have been spent on maintenance of the Boys School. BTW - This Affidavit was provided to Team Shelburne's lawyers.

PROBLEMS- First, Mr. Anderson in his sworn affidavit reports only $520,397 received from the Province. We know of course that this number is wrong and that the Province provided $625,000. In making this error, he reduces reported revenues by $104,603. Adding that amount back to the reported balance would leave a new corrected balance of $886,958.85 in the Boys School Fund at the end of September 2007 based on what we know and Mr. Anderson's Affidavit.

Second, a casual review of these expenses attributed to Maintenance of the Boys School to the end of September 2007 identifies a significant number of questionable costs attributed to the Shelburne Boys School Maintenance Fund, e.g. Yarmouth County Tourist Association ($35), MacDonnell Group ($13, 829.74 paid the day before closing of the proposal call), Yarmouth Area Industrial Commission Contract Wages ($32,818.69), Frank Anderson Travel and Travel to Provincial RDA Conference (listed in earlier blog) , Joan Bauer office and travel Expenses, assorted legal fees for McInnis Cooper, plus 33 expenses listed as being paid to the Yarmouth Area Industrial Commission for telephone and other related office expenses.

Third, no interest has been added on the balance of the funds accounted for by SWSDA for the period from July 31, to September 30, 2007.

3. The final reported totals to the end of March, 2008 - Revenues $1,193,886.85, Expenses $477,028.55, Balance in Shelburne Funds reported $716,858.30.

PROBLEM - First, according to this reporting by Mr. Anderson, SWSDA continued to charge expenses to the Shelburne Boys School Funds between June 27, 2007 to March 31, 2008. If Mr. Anderson's sworn Affidavit expense report to the end of September is correct Mr. Anderson managed to spend another $170, 925.55 between then and March 31, 2008, a period well after the closing on the sale of the Boys School on June 27, 2007, without the authority or approval of Team Shelburne.

Second, SWSDA's Mr. Anderson again fails to attribute interest to the Shelburne Boys School balance... regardless of what that amount is.

RESULT - These are important numbers because the Consent Order required that Mr. Anderson deposit the unspent balance of the maintenance fund for the Boys School and the proceeds from the sale into a segregated, interest-bearing bank account or GIC forthwith upon the sale of the former Naval Base. Mr. Anderson in his wisdom has not deposited any of the adjusted amounts discussed above but rather, only $716,000 which he continues to report without accounting for interest gained.

But Hey! Maybe I'm being too picky.... on the other hand, $35,000 here .... a $170,000 there....$104,000 ... here and there.... and the tick,tick, tick of the clock forgoing interest .... and before you know it you could be talking about real money!

Oh, did I mention Mr. Anderson's Exhibit C to his November 27, 2007 sworn Affidavit that all municipalities had access to... it describes how SWSDA had no money left from the Boys School and confirms Mr. Anderson's Affidavit statement that all those monies had been dissipated.