The AUS job- Part 3

The two obligations
The AUS has always had a troubled financial history. These stem from the AUS not being able to fulfill two of its most important legal obligations, as an incorporated student association. The first obligation is filing taxes every quarter to Revenu Quebec. The second obligation is providing audited financial statements to McGill annually.

Consequences
If the AUS does not fulfill its first obligation, it leads to Revenu Quebec arbitrarily assessing the tax owed by the AUS and then freezing that amount in the AUS’s checking account. If the AUS does not fulfill its second obligation, the AUS does not receive its student fees, collected by McGill to be disbursed to the AUS.

2008: A pivotal year
When I started my term, the AUS had been in violation of both of these obligations since 2008. Why 2008 in particular you ask? Well, 2008 was the year in which a few of the larger departments were externalized, meaning they were allowed to open up their own bank accounts.  Before that, all of the AUS’s financial records were centralized, with the AUS VP Finance having overall responsibility for ensuring each transaction got appropriately. As the VP Finance was also responsible for the audit, he/she knew where to get any missing information from that would be needed for the audit.

Despite that, the AUS had still had had a lot of trouble fulfilling its financial obligations prior to 2008. After 2008, with records being maintained by multiple people across multiple locations with varying levels of consistency, it became nearly impossible to fulfill the AUS’s financial obligations.

The core issue
So, to recap, the core issue that the AUS was facing was externalized departmental accounts. Externalized accounts meant that departmental VP Finances/ Treasurers were responsible for making sure their records were up to legal accounting standards, so that the AUS could get its annual audit done. Legally the departments fell under the AUS, so if the departments weren’t doing their job, the consequences would be borne by the AUS. This gave the departments increased autonomy with increased responsibility, but no accountability if that responsibility wasn’t maintained.

In the next post, I will go over how this problem snowballed from 2008 on wards and almost brought the AUS to bankruptcy in the summer of 2012.

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