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Union, councillors push back against idea of outside firm running City finance dept

Mar 6, 2018 | 5:06 PM

NANAIMO — The union, the mayor and councillors are rebuking claims the City’s finance department needs training on best practices and help from an outside firm.

The reaction followed comments made by coun. Bill Bestwick days after the City’s chief financial officer was suspended over unspecified allegations.

In unchallenged comments made to a local newspaper, Bestwick suggested while he didn’t feel the province needed to step in and help the City, he would like to see a reputable financial firm come in and run the finance department on an interim basis.

“We need help, so let’s get KPMG or somebody to come in,” he was quoted as saying, adding the company could help train staff on best practices and identify errors.

“It’s really concerning from a staff perspective,” CUPE Local 401 president Blaine Gurrie told NanaimoNewsNOW. “The public doesn’t need to worry about the state of the finance department. We don’t believe anybody should be out making statements that ‘We need help.’ All of that stuff isn’t true.”

Gurrie said the department is “hopeful things are looking up.” He admitted it was a challenging time for the 14 unionized staff and three exempt managers.

“I think most people know why we’re having those difficulties. I don’t believe there’s any need for someone to come in and take over running the department. These are professional, qualified people who know their work. The nature of the problem wasn’t the fact the staff in the department don’t know how to provide finance services to the City of Nanaimo. They certainly do.”

Mayor Bill McKay was asked if he felt outside support or training on best practices was necessary for the finance department.

“No, I don’t buy it. It’s certainly been portrayed at times. In any corporation or business you can always look for ways to improve things, however this particular team are dedicated to their work and they do it very well,” McKay said.

He said he was disappointed in Bestwick’s comments and found them “very troubling.”

“We’ve uncovered over the last few days some issues of significant concern. We’re going to deal with those issues. It was in fact our staff that brought those to our attention. So to suggest now they are the reason those issues existed is just not on point.”

Laura Mercer will assume the financial officer role on an interim basis and lead the department. Gurrie described Mercer, who has been with the City for 16 years, as well-respected.

There are currently eight staff members with chartered professional accountant designations in the department, including Mercer, and a combined total of 340 years of experience. The City received a distinguished budgeting award each year since 2014 and was selected for a UBCM best practices in financial stewardship award in 2017.

Bestwick told NanaimoNewsNOW he was not misquoted in his statements to the newspaper but was responding to a question of what he would do instead of asking the province to step in and help.

“In no way did I intend, if I did, to criticize or alarm, or distress our great City and its citizens. I was asked if the province should step in. I said I don’t think it is necessary. You could read into that as a compliment, staff are competent, all is fine.”

He said his suggestion did not contain “malice” or an implication of incompetence.

“Obviously manpower is down, it’s year end. Probably could use some help…No poison. No venom. No criticism. No nothing.”

Coun. Ian Thorpe said he had “total confidence” in the integrity and ability of Mercer and staff.

“I believe they will be able to pull together and provide leadership through this situation and I do not believe they need training in best practices,” Thorpe said.

Coun. Sheryl Armstrong said “We have very competent staff who can run the department at this time.”

Meanwhile, Mercer told NanaimoNewsNOW it would not be appropriate for her to comment on the suggestion her department needs outside help.

“As a finance department, we’re focused on meeting our legislative deadlines.”