The Student Federation of the University of Ottawa (SFUO) released the forensic audit report by audit firm PricewaterhouseCoopers (PwC), which found that the fraud allegations against SFUO executives were not supported by the audit’s evidence.
PwC’s audit cleared two allegations made by former SFUO president Hadi Wess, who filed a police report earlier this year.
The first allegation was that a payment of about $30,000 was made to a catering business owned and operated by a family member of SFUO’s current executive director Vanessa Dorimain to provide services which were allegedly not provided.
According to the audit, the cheque was not approved by Wess or issued to the company.
Another allegation that was cleared was that payments totalling about $20,400 were paid for five events between April 2017 and February 2018 to an allegedly fraudulent business called T.R. Alimentation (TR), a catering business operated by former SFUO president, Rizki Rachiq, who resigned on Nov. 4.
The audit said, “There was no evidence obtained suggesting that TR’s catering services were not provided during the events nor were there any reported issues concerning the goods/services provided.”
In its report, PwC provided four recommendations for the SFUO to consider moving forward.
One recommendation is that the SFUO should consider creating and implementing a formal conflict of interest policy that applied to all executives and employees.
“This will provide staff and executives with guidelines to follow involving actual, perceived or potential conflicts of interest,” the report reads.
The second recommendation by the audit firm is a formal procurement policy which provides SFUO executives and staff with guidelines to ensure that the SFUO purchases goods and services efficiently and obtains value for money from suppliers.
In a press release, Paige Booth, SFUO vice-president (external) and interim president, said that the recommendations from PwC “represent an important contribution to SFUO’s ongoing effort to address concerns about its operations and will enable the Federation to achieve its goals of strengthening oversight, tightening financial controls and eliminating any potential for future conflicts-of-interest.”
PwC also recommended the union make the vice-president (finance) position a full-time one and be reserved by an individual with “an appropriate accounting background,” and that the union conducts a Fraud Risk Assessment.
The SFUO said in a press release that it is pledging “to quickly implement the auditors’ recommendations to strengthen financial operations and improve accountability.”
Prior to the release of the audit, the student union’s Board of Administration passed an Accountability Agenda, which included several governance motions to increase transparency and accountability.
On Nov. 4, the SFUO board passed two new resolutions according to the press release:
1. The SFUO will consult with the Federated Body President’s Round Table (PRT) before signing any agreements with the University of Ottawa. The executives met with the PRT on Nov. 5 and they voted in favour of a new agreement to recognize the SFUO as the sole union representing undergraduate students.
2. An ethics committee will also be formed in collaboration with the university as of May 2019.
The SFUO said it believes “the way is now open for the SFUO and the University to work together to find common ground and allow the University to renew the funding agreement that has served uOttawa students very well for many years.”
