Missing money at Mile One Centre: Forensic auditor conducting review

Money is missing from Mile One Centre in St. John's.

As a result, the city's internal forensic auditor is looking into the books of St. John's Sports & Entertainment, the group that operates Mile One Centre and the St. John's Convention Centre.

"Our accounting staff, several months ago, found something that was unusual and surprising in the books, and they have done a thorough review and said 'something's not adding up,'" said Coun. Sandy Hickman, the city's representative on the SJSE board.

It's not in the millions of dollars or anything like that, but it's not insignificant.- Coun. Sandy Hickman

"This is something that's been going on for a while," he added. "It's not in the millions of dollars or anything like that, but it's not insignificant … it's not a thousand bucks here or a hundred bucks there. It's a little bit more than that. So it needs to be addressed."

Hickman said fraud is one of the possibilities to be considered in the review currently being done by the forensic auditor.

"The review of the missing money is being undertaken as we speak," he said.

"I don't expect it will take too much longer. Weeks, not months."  

Call for operational review

While the missing money review is ongoing, Coun. Jonathan Galgay wants to delve deeper.

"I believe, personally speaking, that council must take steps to reduce administrative costs and to provide improved accountability in its operations," Galgay said during Monday's council meeting.

In the meeting, Galgay asked for council's approval for "an independent operational review" of Mile One and the St. John's Convention Centre.

Councillor wants board of directors reviewed

"The intent of the review would be to find operational efficiencies, improve transparency and a new governance model," he said.

Galgay said he also wants a review of the group's board of directors, despite calling them competent, well-respected members of the community.

"The issue that I have is about governance. It has to do with reporting mechanisms and it has to do with finding efficiencies in large buildings which sit empty in downtown St. John's," Galgay said to reporters after the council meeting adjourned. 

Something he'd like to see in the review would be a look at similar operations to Mile One in other cities across the country, including staffing numbers, reporting relationships and entertainment policy. 

"While Mile One Centre has seen great success in recent years, the absence of an anchor tenant in the building raises concern for its operational costs," Galgay said in a press release sent on June 16.

Galgay's request for review was referred to the finance committee, which will have a meeting in July.

In response to Galgay's appeal, Hickman said both Mile One and the Convention Centre are undergoing a transition phase. Mile One recently lost its anchor tenant, the St. John's IceCaps American Hockey League team, and the Convention Centre is newly renovated and reopened.

Hickman said he has no idea where Galgay is coming from requesting an operational review, since some of the things he is looking for are already being reviewed.

"We also, as council, passed a motion giving the city manager direction to look at structure of the board. So everything is being done and being reviewed anyway," he said.

"I'm not sure if council would agree that we should spend tens or hundreds of thousands of dollars in another review at this time."