Some of the taxpayers' money given to HIV Community Link to establish a supervised consumption site in Medicine Hat could be returned. The organization signed a lease for this building at 502 S. Railway St., before the United Conservative government determined there would be no local site. Negotiations continue regarding a lease termination before it is known how much money will be returned.--NEWS PHOTO GILLIAN SLADE
gslade@medicinehatnews.com@MHNGillianSlade
The provincial government has no plans to audit an organization that had planned to establish a supervised consumption site in Medicine Hat and received about $1 million to do so, and says a portion of that money is in the process of being returned.
Last week the government withdrew funding for ARCHES, a Lethbridge organization that operated a site in that city, after an audit revealed misappropriation of government funding and non-compliance regarding the agreements it had made.
Calgary-based HIV Community Link (HIVCL) had received nearly $1 million from the NDP government to cover initial costs of setting up a supervised consumption site in Medicine Hat.
That site was halted by the UCP before funds were used for an anticipated renovation of premises that HIVCL had signed a lease for.
“As there has been no indication of financial irregularities, a formal audit of the agency is not being planned at this time,” said Kassandra Kitz, press secretary for the associate minister of mental health and addiction.
A spokesperson for HIVCL told the News recently that of the $900,000 it received as a start-up grant, it has only used $295,000 for “project development.”
“As per the grant agreement, a portion of the grant total will be returned to the government, as not all of the funds have been spent,” said Kitz. “The agency is continuing to work through this process, including negotiations regarding lease terminations. It’s anticipated that further funds will be returned once this process is complete.”
HIVCL operates an office and needle exchange program in Medicine Hat. Kitz says HIVCL receives government assistance for this.
“The current grant is an agreement between Alberta Community Council on HIV (ACCH) and Alberta Health. ACCH distributes harm reduction supplies to HIV Community Link to be distributed to clients in Medicine Hat and Brooks,” said Kitz.
It is not clear how much money HIVCL receives from the government.
Drew Barnes, MLA for Cypress-Medicine Hat, says any public money spent should be subject to oversight, internal audits for large amounts and random spot audits.
HIVCL’s website and 2018/19 report indicates that 86.85 per cent of its funding is from government with total revenue equalling more than $2.7 million and 8.25 per cent is the cost of administration.
ARCHES received more than $14.4 million from the government in the past two years. The audit suggested more than $1.6 million is unaccounted for and $13,000 was used for parties. The salary of a senior executive was $342,943 last year.
Money was spent on European conferences including a trip to Portugal that cost $4,301 and retreats costing $7,557.
Vendors were repeatedly secured in secrecy with a lack of transparency and accountability, the report says. About $2,100 was spent on gift cards to The Oil Changer – a business owned by a senior executive’s spouse – and $2,205 was spent on a TV with no receipt documentation.
Supervised consumption services are still being offered in Lethbridge to those who having been using ARCHES.
Alberta Health Services set up a temporary mobile overdose prevention site in Lethbridge to transition the provision of services. Three recovery coaches are also being sent to the region to help.
