Joorook's problems revealed

Leaked document shows mismanagement

While there may be light at the end of the tunnel, the Joorook Ngarni Aboriginal Corporation is still in deep water.

A document, leaked to the Kimberley Echo this week, outlines the corporation's financial woes.

The findings of the independent financial examination reveal extensive mismanagement and more work is needed to trace where money has gone.

Investigators interviewed ATSIC personnel, former chief executive officer (CEO) Gerrard Willett and chairperson Reg Birch.

They also examined the corporation's records and those of Joorook Ngarni Holdings.

The findings stated: "Due to our examination of the financial position of Joorook Ngarni Aboriginal Corporation and Joorook Ngarni Holdings being severely limited due to the incompleteness and inaccuracy of the financial records, our assessment is reflective of the records that were made available at the time of our visit (mid July).

Commenting on the Community Development Employment Program (CDEP), the report stated that in the last financial year there was an initial operational budget deficit of over $300,000.

Closer scrutiny of the report suggests that each service funded by CDEP ATSIC grant funds has exceeded budget with the exception of capital expenditure.

CDEP wages had been exceeded by nearly $167,000.

As no computer backup had been kept, information was still being fed into the system.

Loans and wage advances were also a cause for concern.

The report said: "Numerous loans and wage advances have been made to various CDEP participants and non-participants.

"We were unable to quantify these amounts due to the state of the records.

"...numerous payment vouchers were discovered, indicating that these amounts may have been incorrectly allocated against expense items in the accounting records of the organisation."

The findings suggested some method of collection to ensure recovery needed to be instigated.

Money owed to creditors was expected to exceed $35,000.

Money owed in debts to the corporation totalled at least $31,600.

Investigators were told some debtors were no longer part of the CDEP and recovery of these debts may be uncertain.

Business Activity Statements had not been completed or lodged since June 2001 and unpaid GST may exceed $115,000.

The reconciled cashbook showed the account overdrawn by $19,370 and uncleared transactions amounting to $79,408.

Outstanding loans included $28,134 to Joorook Ngarni Holdings, $8,800 to staff and $5,456 to Mr Willett.

The report said that it had indications Mr Willett and staff were repaying loans but how much had been paid could not be verified.

The report noted that Joorook Ngarni Holdings had a bank balance of more than $140,000 but noted that this was the result of it selling two residential properties in Perth.

The report concluded that the corporation was estimated to have a budget deficit in excess of $250,000 in conjunction with potential liabilities for GST and creditors in excess of $160,000.

Former CEO Brian Chapman and accountant Peter Pearce have stepped in following an agreement with ATSIC to try to rescue the corporation.

Mr Willet has been re-engaged, this time as CDEP coordinator.