Audit report probes FCT president, hubby

Audit report probes FCT president, hubby

TORONTO – The leadership of community group Filipino Centre Toronto (FCT) may have engaged in certain questionable transactions and disbursements, according to findings from a recent FCT internal audit report.

One of the issues raised by the July 27, 2005 audit findings was a series of reimbursements to Felino Javier, husband of FCT president and CEO Rosalinda Javier, amounting to $11,836.46 in connection with some renovation work done on certain units in the FCT building in 2003.

The renovation was “coordinated” by the FCT president and her husband, on a volunteer basis, the report said.

FCT is a non-profit community organization based in Toronto. Members pay a $5 annual fee or $50 lifetime membership. Financial support comes from fund-raising activities, as well as donations and loans from community members and business tenants.

According to the audit findings – obtained by this reporter from an FCT source under conditions of anonymity – these reimbursements were based on photocopied invoices that did not have any proof of payment. The photocopied invoices also showed “ship to” information that simply states “Felino” with no address provided.

Some of these invoices were from a company called ALC Group Inc., which had in its invoice a telephone number and Website address that are no longer in use.

“As president and CEO, Ms. Javier made the final decision as to who, what and where to buy the materials and labour, while Felino Javier did most of the purchasing, and mostly paying those purchases by the use of his Visa card,” the report said. The audit report was prepared by veteran accountant and FCT audit committee chair Julito Longkines, CPA (Illinois), and also the president of the Association of Filipino Canadian Accountants.

The auditor also found that no purchase order system was in place and quotes from other suppliers, pertaining to large purchases, “were neither obtained nor documented.”

“There was no assurance that FCT had the best price and quality. Receipt of purchased materials was not checked by someone from the [FCT] office,” the report said.

This reporter attempted to interview Javier, but the FCT president declined to comment saying a press release will be sent out upon FCT board approval. As of this writing, no press release pertaining to the audit report has been issued by FCT.

A statement prepared by a certain Aida E. D’Orazio on behalf of Javier, however, was earlier sent to The Philippine Reporter stressing the FCT board’s support for the current leadership.

“Despite the smear campaign, the present members of the FCT board of directors, along with chairman Dr. Vicky Santiago, honorary chairman Dr. Jun De Villa and president Lynda Javier, have not buckled down. Instead they have grown stronger in solidarity,” said D’Orazio.

FCT chairman Dr. Vicky Santiago also declined to comment but disclosed that Javier has submitted a response to the audit findings containing “points of clarification.” When asked for a copy of Javier’s submission, Santiago said Javier will fax a copy to this reporter.

After following up with Javier, this reporter was informed that the FCT fax machine was not working. When asked if a copy could be sent through e-mail, Javier said she could only e-mail the copy when she gets home.

“If I get home at 1 a.m., then you’ll get it at 1 a.m.,” she told this reporter.

As of this writing, no copy was obtained.

According to the FCT source, Longkines’s audit report was submitted to all members of the FCT board of directors but has yet to be made available to the general membership.

The auditor also raised questions regarding the FCT leadership’s practice of pre-signing cheques, where authorized signatories were asked to pre-sign cheques without actually knowing the amount or purpose for which such cheques would be issued. In some cases, certain cheques were signed only by Javier, without a second authorized co-signor, and was honored by the bank, the report said.

The report also discussed monetary allowance for both Javier and her husband Felino. As president of FCT, Javier had a board-approved gasoline allowance of 42 cents per kilometer for days that she would be at the FCT building.

Javier’s husband, Felino, who volunteered for the renovation job at FCT, was also given a gasoline allowance of $125 per day, for every Saturday and Sunday of the month that he was volunteering at FCT.

“It was noted that no detailed attendance report was prepared for president Javier and Felino Javier for the actual days they were at the FCT. In case of President Javier, the monthly payments showed that she was at the FCT ranging from 26 to 33 days in a month.”

“In the case of Felino Javier, he claimed all Saturdays and Sundays in the month. Without the detailed attendance sheet or log report, there is always a possibility that he might have been paid regardless of whether he was at FCT during the weekends or not,” the report said.

Between January and October 2003, the FCT president was paid over $5,900 for gasoline allowance, while Felino got $2,250 as gas allowance for March and April 2004, the audit report stated.

The auditor presented some recommendations to the board in an effort to institute a form of “check and balance” in FCT. Among these recommendations include: strict adherence to a PO system for purchases over $100; avoid pre-signing cheques and inform the bank in writing that there should always be two authorized signatories before clearing a cheque; open a credit account with large suppliers to avoid the use of personal credit cards; cheques should be prepared and released every 15th and 30th of the month.

Some disgruntled FCT members has requested FCT chairman Santiago, in writing, for transparency in disclosing to the general membership the content of the audit report, along with Javier’s response to it, according to Dr. Francisco Portugal, former member of the FCT board of directors.

A request will also be made to hold a general membership meeting before the end of September.
Under the FCT Constitution, at least 10 members of the organization can ask the board for a general membership meeting. As of this writing, there were 13 signatories to the letter addressed to Santiago.