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HomeMy WebLinkAbout11/06/1965 "'.~. .- -. COUNCIL MINUTES A special meeting of Bowmanville Town Council convened at 9:00 a.m. on Saturday, November 6, 1965 at the Council Chambers, Town Hall with His Worship Mayor Ivan M. Hobbs in the Chair. All members present. I Suggested Amendment to By-law Governing Nomination and Election of Representatives to Council: Moved by Con. Hooper, seconded by Con. Rundle. THAT Paragraph 6 of By-law No. 1949 be amended to read the 26th day of November, 1965 at half past 7 o'clock in the after- noon. "CARRIED" II Report of Finance Committee: "Minutes of Finance Committee meeting held November 1, 1965. Present: Deputy Reeve Stevens, Mayor Hobbs, Con. Hughes, Chant and Hooper. The Mayor reported that he has been advised by the Municipal Auditors regarding a misappropriation of funds by the Clerk- Treasurer. It was Moved by Con. Hooper, seconded by Con. Chant. THAT we move a vote of concurrence in the action taken by the r~yor to this time. This includes the Mayor's action in instruct- ing the Auditors, Humpage, Taylor & McDonald to make their report to the Bonding Company, also his action in informing the Town Solicitor, and also agree with his recommendation that this matter be placed in the hands of our Solicitor. MOTION CARRIED. Moved by Mayor Hobbs, seconded by Con. Hooper. THAT a meeting of the Finance Committee be called for November 11, 1965 at 7:00 p.m. to meet with the Auditors, Town Solicitor and Assistant Clerk, at which time it is expected that the Auditors will have a final report of their investigation. MOTION CARRIED. Moved by Con. Hooper, seconded by Con. Hughes. THAT the Town Solicitor be instructed to handle the transaction re transfer of property from the Municipality to The Bank of rilontreal. MOTION CARRIED. Meeting adjourned - 10:50 p.m." Moved by Con. Hooper, seconded by Con. Hughes. THAT the minutes of the Finance Committee held on November 1st, 1965, be received and adopted. "CARRIED" .... -. ,. !. -. . - 2 - III Other Financial Matters: 1. Jack L. Reid: "It is with deep regret that I submit herewith my resignation as the Clerk-Treasurer of the Corporation of the Town of Bowmanville, effective November 3rd, 1965. I have enjoyed working with all members of Council during the 4 years and 7 mos, and wish to acknowledge my sincere appreci- ation for the help and assistance afforded me. " Moved by Con. Hooper, seconded by Deputy Reeve Stevens. THAT the resignation of Jack L. Reid be accepted. "CARRIED" 2. Humpage, Taylor, McDonald & Co.: "This letter is to formally report to you our findings in the course of our audit of the accounts of the Town of Bowmanville involving the Clerk-Treasurer of the Town, Mr. J. L. Reid. On September 27, 1965 our cash counts disclosed a series of cheques, signed by !~. Reid, totalling $7,607.00 presumably reporting undeposited cash retained by !~. Reid during the period January 13, 1965 to September 13, 1965. Further investigation revealed that through the payroll accounts Mr. Reid had received salary payments, exceeding his salary allowance, in the amount of $1,785.71 in the period January 1, 19b5 to October 31, 1965. In addition, excess salary payments from prior years totalled $1,186.22. Further investigation and discussion with Mr. Reid determined that certain other cash withdrawals had been made in 1964 which had been accomplished by not recording the receipt of certain Department of Municipal Affairs Subsidies with the substitution of these cheques for cash prior to making the bank deposit. The total involved, to our knowledge, to this point and as accepted by Mr. Reid, amounts to $6,950.00. The total cash shortages, within our knowledge at this date, amounts to $17,529.66. Our investigation of the records is continuing to ensure that no further amounts are involved which can be evidenced by audit procedure. We have consulted with Mr. A. Strike, the Town Solicitor, and through him the agents for the bonding company have been notified of the current shortage and that further investigation is in progress. We shall report to you in greater detail upon completion of our audit." "Further to our previous discussions relative to undeposited cash of the Town of Bowmanville, covered by personal cheques of Mr. J. L. Reid totalling $17,529.66, we wish to report that on November 4, 1965 funds were placed on deposit for the Town account by !~. Reid in a like amount. . :",- ~. . . . . .... . '. . . - 3 - Consequently Mr. Reid has made restitution for the amounts which have been determined by audit to this date. Our examination of the accounts is continuing to ensure that no further shortages are outstahding. .le shall notify you of our final findings upon completion of our audit." Moved by Con. Hooper, seconded by Reeve Little. THAT the letters received from Humpage, Taylor, McDonald & Co. be turned over to the Finance Committee. "CARRIEDIt 3. Bank of Montreal: "In the auditors report for the years 1962, 1963 and 1964, they report in each year a violation of Section 329 (3) of the Muni- cipal Act, governing total bank borrowings permitted under the Act. As you are aware, the amount that may be borrowed at anyone time for Current Expenditure purposes, together with the total of any similar borrowings that have not been repaid, shall not, except with the approval of the Municipal Board, exceed 70 per cent of the uncollected balance of the estimated revenues of the corporation as set forth in the estimates adopted for the year. We are bringing this matter to your attention at this time as we feel it is your desire this year to avoid violating this section of the act; and if need be to assure that Municipal Board approval is ohtained in good time if it is evident the 70% is going to be exceeded." Moved by Con. Hooper, seconded by Con. Chant. THAT the letter from Mr. J. A. Bell, Manager of the Bank of Montreal, be referred to the Deputy Clerk to check this matter out. ItCARRIED" 4. Bank of Montreal: Moved by Con. Hooper, seconded by Con. Chant. THAT the Bank of Montreal be advised that Mr. Jack L. Reid is no longer an employee of the Town of Bowmanville and his author- ization to sign cheques and other Town matters is now void. "CARRIED" IV Mr. J. L. Reid was in attendance and asked for permission to address Council, at which time he informed Council that he was sorry for the embarrassment he had caused them and that he had made full restitution to the Corporation. Adjournment: Moved by Con. Hughes, seconded by Reeve Little. THAT we do now adjourn - 9:25 a.m. "CARRIEDIt