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New Westminster yet to decide funding fate of Hyack Festival Association

Hyack proceeds with plans for ambassador program and Hyack Festival
Hyack
Support unknown: The Hyack Festival Association is hard at work planning for this year's Hyack Festival and Miss New Westminster Ambassador program, even though the city has yet to decide how much support it will give the organization. The city may or may not deal with Hyack's grant request as part of its regular grant process, as it may wait until an independent financial audit of the group's finances is complete.

While the fate of the city’s support for the Hyack Festival Association is still unknown, its new president is painting a rosy picture of the organization.

In October, council approved several recommendations in response to ongoing internal issues with the organization. In addition to taking on organization of the 2013 Santa Claus Parade, council voted to suspend any future funding to the association until governance matters are resolved to the city’s satisfaction, to request financial records from the association so an independent financial audit could be conducted and to ask the Registrar of Companies to investigate the conduct of Hyack’s board and society under the B.C. Society Act. A Jan. 20 staff report stated the city has engaged an independent auditor to conduct a financial review that’s now in process, undertook planning of the 2013 Santa Claus parade and suspended any future funding to the association.

In a letter to city council, the Registrar of Companies states that the Society Act doesn’t supervisee the conduct of societies or intervene in their internal affairs, and pointed out it’s up to the members of each society to ensure it’s operated in a manner that’s consistent with the society’s constitution and bylaws.

“Members should raise concerns regarding irregularities in the conduct of a society with the society’s director and officers,” stated the Registrar of Companies in a letter to the city. “Where those irregularities are not resolved to the member’s satisfaction, the act provides a number of options for addressing the situation.”

A letter from the Registrar of Societies stated that the act provides a “limited ability” to investigate a society, but only in rare circumstances where it is apparent the society exists for an illegal purpose or is acting in a manner that’s contrary to the public interest.

Peter Goodwin, who was named Hyack’s new president at its Jan. 13 annual general meeting, apologized for the “unfortunate” timing of the society’s meeting, which was on the same night as a city council meeting so council members were unable to attend.

“We are looking forward to having a very strong and active year,” Goodwin said of the new executive.

Goodwin said this year’s Miss New Westminster Ambassador program is underway, with six candidates and sponsors involved. He said the association hosted the NorthWest Hosting Festival in New Westminster last weekend, which saw more than 50 representatives from around the Pacific Northwest visit the city.

“It was a wonderful opportunity for New Westminster,” he said. “The attendees loved New Westminster.”

Goodwin said the association is “anxious to move forward” with organizing events for this year’s Hyack Festival, which is set to take place from May 19 to 25. The parade will be held on Saturday, May 24.

“I believe that Hyack is in great shape,” he told council Monday. “It is well organized.”

Goodwin said the Hyack Festival Association is experienced in staging quality festivals in New Westminster.

For many years, the City of New Westminster has provided the Hyack Festival Association with funds to organize a number of events on the city’s behalf, such as the Hyack Festival and the Santa Claus Parade of Lights, and for a city float. In recent years, the city has given the Hyack Festival Association more than $150,000 in funding and in-kind services annually to organize events on the city’s behalf.

New Westminster city council has yet to consider this year’s grant applications, but some council members aren’t convinced the internal problems have been resolved.

“We still have the audit happening,” Coun. Chuck Puchmayr told The Record. “We are still engaged in the financial audit. We have an independent doing it. We don’t want to taint the process.”

With the city having organized the 2013 Santa Claus Parade, Puchmayr said he questions some of the costs of putting on city events. He said the city is responsible for about 90 per cent of the in-kind costs, such as city staff who put up barricades and do policing at the event.

“It’s a discussion that council has to have,” he said. “I certainly have a lot of questions on cost. That’s one of the reasons why we have asked for an audit. Does it cost this much to do those few events?”

Mayor Wayne Wright thinks there’s little doubt the city will make changes to the way the city funds Hyack, although that’s a decision that will be made by council.

“At the end of the day, what’s going to happen – this is me speaking – the Hyack people will be doing some things, some other things will be done by some other people,” he told The Record. “There’s going to be a financial change in it. That, I don’t think there is any doubt.”

Gary Holowatiuk, the city’s director of finance and information technology, said reports about this year’s grant applications will be coming forward over the next two to three council meetings, starting Jan. 27. He couldn’t provide any details about Hyack’s application because it’s still being reviewed.

“Right now it is anticipated that the Hyack's grant request will be coming forward for council's consideration with the upcoming grant reports,” he said in an email to The Record. “However, any decision on the Hyack grant amount for 2014 may be deferred until the current review process is complete.”