To Chris Mallon: Regarding Trillium Grant

[Peter McKillop]

Chris, when did the OCA last arrange for completion of financial statements at, say, a review engagement level? In fact, has the OCA produced any form of financial statements in recent years? And specifically, what about the year(s) when Barry Thorvardson was President? Were any financial statements prepared for those years?

Until such time that the OCA makes full disclosure with respect to how the Trillium grant proceeds were spent, and makes a public statement regarding whether or not those expenditures were in compliance with the conditions under which the grant was approved by the Province, I would say that the OCA has a very serious credibility issue. Frankly, if the CFC really does have an interest in promoting chess in Canada, then the CFC should take whatever reasonable steps are required to make sure its affiliates are operating responsibly and in an ethically correct manner. I think the CFC should be withholding all monetary transfers to the OCA until the OCA has cleared the air on the Trillium grant.

Chris, I'd like to know what your position is regarding the Trillium grant? As a starting point as well as a matter of good faith, I'd like to see you make public the grant application, all grant-related correspondence. and the Letter of Agreement between the Trillium Foundation and the OCA. Will you do this?

[Kerry Liles]

Re: To Chris Mallon: Regarding Trillium Grant

Are you talking to Chris Mallon in his role as OCA President or as CFC Treasurer? I presume the former, since the CFC has no involvement in the Trillium grant (Hal Bond was present with Barry Thorvardsen at a meeting held at the request of the Trillium people because the Trillium people wanted assurances that none of the money was used outside Ontario - ie: by the CFC). At least that is my understanding.

If you go to this page:

http://www.trilliumfoundation.org/cm...5_2006_sy.aspx

you will find this:

Ontario Chess Association Inc.
$120,000 over two years to pilot an integrated chess program in York Region, which will
provide children and youth with an alternative recreational experience and build their critical thinking and tactical skills.

I cannot find anything more on their website related to this matter (for example any sort of report from the OCA to Trillium)

Perhaps Chris has that; he currently has whatever paperwork was given to the new OCA executive from Barry et al.

[Larry Bevand]

Re: To Chris Mallon: Regarding Trillium Grant

From my perspective:

Both Trillium and the OCA were embarassed by this whole affair...and it was swept under the rug...in order to protect the integrity(?) of both organizations.

No surprise actually, when we see what happened recently with the tobacco industry agreement. I think this country finds sweeping things under the rug to be the convenient way of proceeding. I must still be naive....I couldn't believe this was really happening...

Conrad Black...your mistake was to play your game in the U.S....had you stayed on Canadian turf...nothing would have happened to you....now you are doing time behind bars.

[Kerry Liles]

Re: To Chris Mallon: Regarding Trillium Grant

I can't speak for Trillium of course, but "sweeping it under the rug" was not what the OCA wanted to do. Many people (me included) were interested in some sort of return of the money, but the OCA does not have any money to pursue any legal action and in any case, if we did get the money back it would either go back to Trillium (who seem not to care) or it would have to be used for the original purpose. The latter is fine with me, but in our judgement we did not see this a good use of our almost zero resources.

Others on the (new) OCA Executive may have other points of view - this is only mine.

[Peter McKillop]

Re: To Chris Mallon: Regarding Trillium Grant

Hi Kerry. I was talking to Chris in his role as OCA President, notwithstanding that I threw in my two cents worth regarding financial transfers from CFC to OCA. Perhaps Chris has a conflict of interest simmering on the back burner which is about to make an appearance on the front burner.

Last spring, I found the same information you did at the Trillium website and followed it up with an email to Trillium requesting disclosure of their documentation with OCA. They refused on the grounds of gov't agency-grantee confidentiality. This was no surprise, of course, but I felt I had to at least take that initial step because my next step (later this week if Chris Mallon can't clear the air on this matter) is to ask my MPP to look into the alleged irregularities, as well as the Trillium Foundation's efficacy and accountability in general. I believe next year is an election year in Ontario. My Conservative MPP might be delighted to have a bone to gnaw on.

A general point: whether the amount is 7 cents or $7, it irritates me in the extreme that Ontarians whose CFC memberships are up for renewal (including me in couple of months) are virtually forced to fork over money for the OCA, apparently regardless of what the OCA does to earn that money and the atmosphere of mistrust that exists as a consequence of the alleged misuse of the Trillium grant.

[Kerry Liles]

Re: To Chris Mallon: Regarding Trillium Grant

Believe me Peter, I share your frustration and I too wonder what my renewal money will be used for. I know that a good chunk of the OCA money (almost all of it in fact) is handed over to the four Leagues in Ontario and they more or less do what they feel with those clawed-back fees (I am not even remotely hinting that any of the Leagues are doing anything incorrect - I am just pointing out that the transfer of money from the OCA to their component leagues is done without much more than an understanding that the money is used to promote chess or support tournaments or buy clocks or whatever...)

I believe Chris has some of the documents that are part of the Trillium agreement, but what he has exactly is not known to me.

At the OCA AGM in June (in Brampton), Barry reported that the Trillium money had been used to foster youth chess in York region - that is the area that granted the money and therefore the programs had to do work in York. I never have seen any breakdown of what was accomplished, so all we have is Barry's word that the programs took place... The basis of the problem was that Barry essentially used a significant part of the money to pay for the administration of the program - again, I have never seen any breakdown.

I'm afraid my knowledge of all of this is now exhausted; I don't want to speculate.

If you or any other OCA member (eg: CFC member based in Ontario) wants to demand a public accounting of this whole mess, I am in full agreement. The OCA does not have the means to initiate any legal action (even if we were to receive an opinion that there is justification in law).

[Erik Malmsten]

Re: To Chris Mallon: Regarding Trillium Grant

It is terrible that Barry didn't do any written reporting, even on the OCA website. But it is clear to me that he did do some work, such as the teacher training day with Roman Pelts. Check the CFC website of rated events and Barry had several CFC rated tournaments of juniors in York. He had tried to have championships of each city and a regional championship, but I think he had trouble implementing his plan on an area that already had organized junior events.

He is a positive-thinking, dream big charmer. He had displayed poor judgement, poor communications skills, poor networking, and poor bookkeeping. But I think there was not any intended fraud.

At the OCA AGM in June (in Brampton), Barry reported that the Trillium money had been used to foster youth chess in York region - that is the area that granted the money and therefore the programs had to do work in York. I never have seen any breakdown of what was accomplished, so all we have is Barry's word that the programs took place... The basis of the problem was that Barry essentially used a significant part of the money to pay for the administration of the program - again, I have never seen any breakdown.

[Christopher Mallon]

Re: To Chris Mallon: Regarding Trillium Grant

The OCA's debt is around a year's worth of income right now, and that doesn't even include expenses for this year. When I took over we had $-2 in the bank.

Certainly it would have been great to get some of the money back but the only way to do that is through the courts, which we obviously do not have the resources for at all (even if a lawyer works pro bono there would still be some costs).

I thought we had a decent clearing of the air at the AGM, of course I'm not happy about what happened but there's little more that can be done at this point.

[Garland Best]

Re: To Chris Mallon: Regarding Trillium Grant

The OCA's debt is around a year's worth of income right now, and that doesn't even include expenses for this year. When I took over we had $-2 in the bank.

Oh my fraking god. No cash and a year's worth of debt???

Guys, you're not appreciating the scope of the matter here. Stop talking civil court here. This sounds like criminal fraud and embezzelment to me. You've been cleaned out. Contact the white collar crimes division of the OPP.

[Aris Marghetis]

Re: To Chris Mallon: Regarding Trillium Grant

Ratsablatsamatsafratsa, so who the hell stole the membership rebates AS WELL ??

Without those membership rebates to the leagues, why would they support the very existence of the OCA? If our treasurer got cheques directly from the CFC, I am pretty sure that he would deposit into our bank account, and then guard like a mother bear!

[Kerry Liles]

Re: To Chris Mallon: Regarding Trillium Grant

Ratsablatsamatsafratsa, so who the hell stole the membership rebates AS WELL ??

Without those membership rebates to the leagues, why would they support the very existence of the OCA? If our treasurer got cheques directly from the CFC, I am pretty sure that he would deposit into our bank account, and then guard like a mother bear!

Hold on a moment... take a deep breath. We *have* deposited the rebates (or the OCA fees) from the CFC. That amounts to approx. $2000.

There was an amount held back by the CFC to pay for this little tidbit:
The CFC has paid out $ 2,500 in prizes for the 2006 Canadian Closed. Both CFC and OCA collected entry fees for this tournament and now claim the other is responsible for these prizes. The CFC is withholding this amount pending resolution.

This means that at the moment (and I have no further information from the CFC about the disputed amount for the C.Closed from 2006!), we have approx $2000 to distribute to the 4 Leagues that comprise the OCA.

We are trying to sort all this out.

[John Brown]

Re: To Chris Mallon: Regarding Trillium Grant

WE have not heard from any Youths or parents who benefited from these Trillium projects. Is that because there are none or have they been sworn to zipped mouth polices?
If the amounts are right then $30,000 should be accountable for as we know who got the balance. Where did that 30K go and how was it used. Surley someone got it.

[Erik Malmsten]

Re: To Chris Mallon: Regarding Trillium Grant

There was an amount held back by the CFC to pay for this little tidbit:
The CFC has paid out $ 2,500 in prizes for the 2006 Canadian Closed. Both CFC and OCA collected entry fees for this tournament and now claim the other is responsible for these prizes. The CFC is withholding this amount pending resolution.

I was a volunteer at the two Canadian Closeds in Toronto and I didn't see any evidence of a bookeeping system. I remember tournament directors who post a breakdown of the entry fees into expenses and prizes. Barry and his son worked very hard and produced a book and closing banquet. Did the fees collected by the OCA go to these expenses? I'm not sure of the depth of the donation by Belzberg.

My memory is that all entry fees went to the CFC except for a handfull of late entrants, including a couple of experts from Quebec, and only one mailed to the OCA (who therefore wasn't listed on the CFC website's list of entries, all the others on the CFC website had paid the CFC). There may have a free entry, or ones paid for by the OCA. Perhaps an archive search can show the list of preregistered entrants from which a total collected by the CFC could be calculated.

This old business is embarassing to the CFC and as Barry got paid for the Trillium grant, surely he could afford to pay the amount, not as an admission of guilt but just to resolve the thing. There is a similar dispute with entries to another CFC national event. Better and timely record keeping is needed by organizers and the CFC.

[Kerry Liles]

Re: To Chris Mallon: Regarding Trillium Grant

I was a volunteer at the two Canadian Closeds in Toronto and I didn't see any evidence of a bookeeping system. I remember tournament directors who post a breakdown of the entry fees into expenses and prizes. Barry and his son worked very hard and produced a book and closing banquet. Did the fees collected by the OCA go to these expenses? I'm not sure of the depth of the donation by Belzberg.

My memory is that all entry fees went to the CFC except for a handfull of late entrants, including a couple of experts from Quebec, and only one mailed to the OCA (who therefore wasn't listed on the CFC website's list of entries, all the others on the CFC website had paid the CFC). There may have a free entry, or ones paid for by the OCA. Perhaps an archive search can show the list of preregistered entrants from which a total collected by the CFC could be calculated.

This old business is embarassing to the CFC and as Barry got paid for the Trillium grant, surely he could afford to pay the amount, not as an admission of guilt but just to resolve the thing. There is a similar dispute with entries to another CFC national event. Better and timely record keeping is needed by organizers and the CFC.

Apparently the CFC records show that the CFC collected entries for only 31 people; the rest were presumably collected by the OCA. The tournament crosstable ( http://www.chess.ca/xtable.asp?TNum=200609008 ) shows 65 entrants!

You are quite right that the OCA did not keep good records... I have not seen the archives that the OCA has (presuming they have some!), but that investigation will take place as soon as possible. I have no idea how long it might take to sort it out. Barry (I believe) claimed the CFC collected the bulk of the money, the CFC records clearly show 31. Barry or the OCA could not readily account for the other 34 records... There was also the apocryphal story of one player who showed up somewhat unannounced or unexpected, paid by cheque, played and later the cheque bounced... This is an unreal mess and hard to sort out some two years later!!

Meantime, the CFC had paid Zugic $2500 ( I believe ) toward his expenses for the qualifying FIDE event that was due the winner and when you net out the entry fees the OCA cannot account for, you have the result we have now. Bob Gillanders has researched this in the CFC accounts and is absolutely convinced the CFC records are correct as far as they go.

[Ben Daswani]

Re: To Chris Mallon: Regarding Trillium Grant

This is getting ridiculous. The OCA got robbed? Who robbed you? Do you know his address? Then it's not hard to get the money back.