Hockey Canada to make financial statements public after backlash over sexual assault settlements

Hockey Canada says it will release its audited financial statements following a review that found oversight and transparency problems at the organization. 

Retired Supreme Court justice Thomas Cromwell was commissioned by Hockey Canada in August to review its governance amid public outcry over its use of controversial reserve funds to settle sexual assault allegations.

One of Cromwell's recommendations in his report was that Hockey Canada make its audited financial statements public going forward — a call Cromwell repeated to the Commons heritage committee on Tuesday.

Asked by CBC News if it would follow through on the recommendation, Hockey Canada confirmed for the first time that it will.

Hockey Canada said it would publish its 2021-22 financial statements in "due course" on its website. The audited statements are up for approval on Saturday at Hockey Canada's annual general meeting.

Hockey parents were outraged upon learning that the organization's National Equity Fund — made up in part of players' registration fees — was being used to pay out millions of dollars for sexual assault allegations without their knowledge.

It was later revealed that other such reserve funds exist.

In an interim report, Cromwell discovered that millions of dollars were moved out of that fund and into another, called the Insurance Rate Stabilization Fund, to keep the balance down. 

Cromwell concluded that the organization's board of directors feared that an account containing a large amount of money would attract more claims.

In total, $17 million was transferred over five years between between 2016 and 2021, an analysis by Charity Intelligence Canada found. 

Conservative MP Kevin Waugh accused Hockey Canada of "hiding funds" at the committee hearing on Tuesday. He said Hockey Canada "was scared that the insurance rates will go up or people will come forward with a request to be paid on injuries and such on sexual assault or harassment.

"That's troubling, I think for Canadians," said Waugh to Cromwell. "Would you agree?"

Cromwell, who was testifying Tuesday, said his interim report to the board of directors in October was clear. 

"I indicated in my judgment the confidence of stakeholders had been irreparably compromised and that's why my advice to the board [was] not to stand for re-election when their terms expired," Cromwell told the committee.

Tougher rules needed, advocate says

Cromwell also told the committee that posting the financial statements publicly is what the Canadian Sport Governance Code recommends and is "sound advice."

Kate Bahen, managing director of Charity Intelligence Canada, said that the code is only a guideline, not a requirement.

Bahen said the government should require all non-profit organizations like Hockey Canada to either post audited financial records or do without charitable tax benefits.

"It's absolutely shocking," Bahen said. "I do not understand why Canada is in the dark ages."

She said a number of other countries, such as the U.S., the U.K. and Australia, have this requirement.

"You are a government, you can regulate this," said Bahen. 

WATCH | Cromwell wants Hockey Canada to open its books: 

Hockey Canada to release financial statements following review

2 years ago

Duration 2:41

Hockey Canada has agreed to release its latest financial statements following a review of the organization’s governance that was carried out in light of settlements the group has paid for alleged sexual misconduct by players.

NDP MP Peter Julian, who also sits on the Commons heritage committee, said the federal government hasn't done enough. 

"Sport Canada has been absolutely lackadaisical in actually requiring national sport organizations to meet their obligations to the Canadian public," Julian told CBC News. "That needs to change."

Bloc Québécois MP Sébastien Lemire agrees and says the government must make it mandatory so clear "boundaries" are in place so there's "more transparency."

Sport minister says changes are coming in April

When asked if the government would change the rules to make it a requirement for non-profits to publicly post financial statements, Sport Minister Pascale St-Onge didn't rule out the possibility.

"We are also consulting with experts to put in place best practices, and we will carefully study all the recommendations that will be made by the parliamentary committees," she said in a media statement.

St-Onge said she's reviewing requirements national sport organizations must satisfy to receive federal funding and is putting in place new rules on financial transparency in April 2023. She didn't say what those rules will include.