Darrell Greer
Northern News Services

Rankin Inlet (Apr 24/02) - The loss of the Rankin Inlet Radio Committee's ability to obtain bingo and lottery licences may only be the tip of the iceberg, says the hamlet's finance officer.

Committee surprised by hamlet decision

Rob Hedley says the hamlet had no choice to pull the committee's licence after a random audit showed its financial books to be in total disarray.

Since getting an additional bingo slot two years ago, the committee has held three radio bingos every month. Radio bingos are traditionally more lucrative than regular bingos held in a community hall."That year the hamlet generated almost $200,000 in bingo revenues and they should have generated about the same amount," says Hedley.

"The audit only showed about $40,000 in their bank account and there was no work done in obtaining the transmitter."

Hedley says the hamlet's mayor and senior administrator approached the committee in the past and offered to do its financial records at no charge, but were turned away.

He estimates the committee grossed about $300,000 in bingo revenues during the past two years.

A transmitter falls in the $35,000-to-$40,000 range.

The radio committee had a letter read at a special meeting of hamlet council.

In that letter, the committee acknowledged its financial records were a mess, but promised to hire outside help if allowed to obtain additional bingo licenses.

Council rejected the request.

Hedley says there was never any explanation from the committee as to where the revenues were spent.

"We found out during our review that their society status had been revoked in 1998, which they never informed us of. The audit showed their books to be so incomplete that they were basically saying what they deposited into the bank was all they made."

Hedley says other groups will be audited and the radio committee may be just the tip of the iceberg.

He says the hamlet's bingo bylaw is vague concerning what groups are eligible and to what degree revenues must be reported.

"We're looking at changing our bylaws to make them more clear in respect to these issues. Bingo and Nevada revenues are just too much money for unorganized groups," says Hedley.

"Even with the radio committee, we didn't think it was this bad until the audit."

Hedley says the hamlet now has a legal obligation to inform Revenue Canada about the situation.

"It wouldn't surprise me if somebody eventually found themselves on the hook for $60,000 to $80,000."