Kwantlen Student Association (KSA) - Forensic Audit - July 23, 2007

8/2/2019 Kwantlen Student Association (KSA) - Forensic Audit - July 23, 2007

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Kwantlen University CollegeStudent AssociationForensic Accounting Investigation

July 23, 2007


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Kwantlen University CollegeStudent AssociationForensic Accounting Investigation

July 23,2007

ImportantThis document is not to be released to any third party without the prior consent of

PricewaterhouseCoopers LLP. I t contains confidential financial, commercial, scientific or technicalinformation and trade secrets. The disclosure of any information contained in this document will cause

material financial harm to PricewaterhouseCoopers LLP, prejudice its competitive position and interferewith its ongoing or future contractual or other negotiations. The document contains personal information

as defined in the Privacy Act (Canada). 2003 PricewaterhouseCoopers LLP, Canada. "PricewaterhouseCoopers" refers to

PricewaterhouseCoopers LLP, Canada, an Ontario limited liability partnership, or, as the context requires,the network of member firms of PricewaterhouseCoopers International Limited, each of which is a

separate and independent legal entity.


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Contents / Table des matieres1 Introduction 6

3.1 Estimated Unsupported Payments by the KSA between January and November 2006 103.2 Other Payments by the KSA between January and November 2006 103.3 Rogers Wireless Charges Incurred November 2006 to March 2007 11

2 Restrictions 93 SUIllmary of Findings 10

3.4 High Risk Investments and Special Purpose Funds 113.5 Transactions out of the Ordinary Course ofBusiness 113.6 Deletion ofEmail Correspondence 123.7 Missing Accounting Records and Supporting Documentation 123.8 Bank Signatories 124 Tasks and Activities ofPwC 124.1 Background 124.2 November 1,2006 Activities 124.3 Electronic Documents 144.4 Paper Documents 154.5 KSA accounting records and supporting documents - PwC Findings 164.6 Bank Signatories and Authorizations 19

5 Documents Reviewed and Interviews Conducted 206 Detailed Findings 216.1 Mortgage with Westlund Properties and Promissory Note from Apex Communications .. 226.2 IndeIjit Joha1. 286.3 Rogers Wireless 306.4 Bi1a1 Cheema 326.5 Dolo Investigations 356.6 Afterparty 366.7 Aaron Takhar and AST Ventures 406.8 New Concept Renovators and Mohammad "Elijah" Hussain 446.9 Yasser Ahmad 466.10 Danish Butt. 476.11 Jaivin Khatri 486.12 Jatinder Atwa1 49

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SchedulesSchedule 1 - Use Analysis for the KSA Operating Account CIBC Account #52-01810

Summary of Payments to Aaron Takhar and AST VenturesSchedule 2 - Use Analysis for the KSA Operating Account CIBC Account #52-01810

Summary of Payments to AkifHussain, Mohammad Hussain and New ConceptRenovators

Schedule 3 - Use Analysis for the KSA Operating Account CIBC Account #52-01810Summary ofPayments to Rogers Wireless

Schedule 4 - Summary ofRogers Wireless' Invoices Addressed to the KSA by Cell PhoneNumber From October 2006 to March 2007

Schedule 5 - Use Analysis for the KSA Operating Account CIBC Account #52-01810Summary ofPayments to Yasser Ahmad

Schedule 6 - Use Analysis for the KSA Operating Account CIBC Account #52-01810Summary of Payments to Danish Butt

Schedule 7 - Use Analysis for the KSA Operating Account CIBC Account #52-01810Summary ofPayments to laivin Khatri

Schedule 8 - Use Analysis for the KSA Operating Account CIBC Account #52-01810Summary ofPayments to latinder Atwal

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AppendicesAppendix A - Documents Reviewed and Interviews ConductedAppendix B - Kwantlen University College Student Association Computer Forensic ReportAppendices C to W - Email CorrespondenceAppendix X - Resumes: Robert J. Sandy and Mary Ann Hamilton

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1 IntroductionPricewaterhouseCoopers LLP ("PwC") was engaged by Farris Vaughan, Wills & Murphy("Farris") to conduct a forensic accounting investigation into the financial activities of theformer Board ofDirectors, who served from approximately December 2005 to November2006 ("Prior Council"), of the Kwantlen University College Student Association ("KSA").This report has been prepared by me, Mary Ann Hamilton CAIFA, on behalfofPricewaterhouseCoopers LLP under the direction ofRobert J. Sandy CAIFA, CACBV whois the person primarily responsible for its contents.This report includes the significant financial transactions that I found during my review of thedocuments located at the KSA main office, including the KSA bank account transactions fromJanuary to November 2006. There are other financial transactions that I considered in myreview, but due to the lack of documentation at the KSA main office, and time and budgetconstraints, I did not include in this report. In particular, I have concerns with the accuracyand legitimacy ofthe payroll payments made by the KSA during the period January toNovember 2006; however given the lack of payroll records, employee files and other recordsto support these payments I could not verify whether certain individuals, paid by the KSA,actually performed duties for the KSA.

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Current and former Council and staff involved with the KSA and mentioned in this letter:

Current Council Former Council Current Employees Former Employees ofMembers Members of the KSA theKSASteve Lee, Director ofFinance

Mat Huff, Director ofOperations

Johnny Woo, RichmondRepresentative

Laura Anderson,Director of ExternalAffairsSean Tutt, SurreyCampus Director

Duncan Keist, LesbianGay BisexualTransgendered Liaison

Danish Butt,former President

Jaivin Khatri,former VicePresident -InternalJatinder ("Joey")Atwal, formerTreasurerShameel Fareed,former SurreyMember at LargeStafford Richter,former Director ofEventsKulvir Gill,former RichmondDirectorBikram Gill,former VicePresident EventsAjay Cheema,former NewtonDirector

DesmondRodenbour,General ManagerRolando Navarro,FinancialAdministrator

Deepkamal Sarang,Technical Advisor(I )

Yasser Ahmad, formerChiefOperationsOfficerMohammad "Elijah"Hussain, formerCommercial ServicesManagerAaron Takhar, formerExecutive Advisor

Penny Minor, formerGeneral Manager

Ream Yacoub, formercafe employee

Syada "Annie" Bukhari,former cafe employee

(1) Deepkamal Sarang has been employed with the KSA since 2005. Mr. Sarang worked with the Prior Council as well as the current KSACouncil.

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Other individuals involved with the KSA and mentioned in this letter:

CompanyndividualMark BellSterling RichterAndrew Westlund

Edmund LimDon Crane

Marika GilesFred SchiffnerBill BouwmanGurpreet CheemaYukio EzakiJaideep PannuInderjit JohalBilal CheemaJacques LegerJames Broad

Alan TakharKuldip Takhar

Director of Security for Kwantlen University CollegeBrother of Stafford RichterPresident ofApex Communications Inc. and WestlundProperties Corp.Vice President Finance ofApex Communications Inc.Lawyer with Rush Crane Guenther, former counsel to theKSALawyer with Hungerford Tomyn Lawrenson and NicholsChiefReturning Officer (October 2006 election)ChiefReturning Officer Candidate (October 2006 election)Unknown to current staff and CouncilOwner ofNewindow Films Ltd.Director of AST VenturesUnknown to current staff and CouncilFormer Federal Government EmployeeChiefReturning Officer Candidate (October 2006 election)Lawyer representing the KSA in the Westlund PropertiesCorp MortgageDirector of Kultak Financial Inc.Director of Kultak Financial Inc.

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Individual Company

Navdeep Bains Senior Business Advisor of CIBCShirley Straumford Advisor of CIBCTiffany Ha Administrative Assistant of CIBC

2 RestrictionsFor purposes of this report, all monetary amounts are expressed in Canadian dollars, unlessotherwise noted.This report is not intended for general circulation or distribution, nor is it to be reproduced orused for any purpose other than that listed in section 1, Introduction. PwC does not assumeany responsibility or liability for losses suffered by any party as a result of the circulation,publication, reproduction, distribution or other use of this report, contrary to the provisions ofthis paragraph.PwC makes no representations regarding questions of legal interpretation. All comments andconclusions presented in this report are necessarily subject to the information sourcesreviewed, as more fully disclosed in the balance of this report.This report, including the schedules and appendices, must be considered in its entirety by thereader. Selecting and relying on specific portions of the analyses or factors considered byPwC in isolation, may be misleading.PwC reserves the right (but will be under no obligation) to revise the report in light of anyrelevant information that becomes known to PwC after the date of this report.

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3 Summary ofFindingsA summary ofmy findings are outlined below. For further details of these findings see Section4 and 6.

3.1 Estimated Unsupported Payments by the KSA between January andNovember 2006The KSA made the following estimated unsupported payments to former employees, formercouncil members and businesses from January to November 2006:Former Employees and Former Council Members of theKSA and Related Companies:Aaron Takhar/AST Ventures (see Section 6.7)New Concept Renovators (see Section 6.8)Mohammad "Elijah" Hussain (see Section 6.8)Yasser Ahmad (see Section 6.9)Danish Butt (see Section 6.10)Jaivin Khatri (see Section 6.11)Jatinder Atwal (see Section 6.12)Individuals or Companies Not Related to the KSA:Rogers Wireless (Gurpreet Cheema) (see Section 6.3)

$67,794$ 897$16,676$17,252$20,893$10,997$ 9,017$ 1,053

$143,526$ 1,053$144,579

3.2 Other Payments by the KSA between January and November 2006The KSA made other payments of note between January and November2006 as follows:

1. The KSA paid Bilal Cheema $5,000 on August 10, 2006. There were no supportingdocuments for this amount located at the KSA office or approval in the minutes of themeetings of the Board ofDirectors. Bob Sandy and I spoke with Bilal Cheema whoprovided copies of a contract and an invoice (see Section 6.4);2. The KSA paid $10,202 to Rogers Wireless for cell phone numbers related to thefollowing names: Yasser, Danish, Meenu, Joey, Jaivin, Abeer Ahmad, Kulvir and oneunidentified cell phone number (see Section 6.3); and3. The KSA paid $20,050 to three different individuals and one company to fund an eventcalled the "After Party". Although I located a contract for this event, I could not locate

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any receipts for this event and I did not find approval for this event in the minutes ofthe meetings of the Board ofDirectors (see Section 6.6).

3.3 Rogers Wireless Charges Incurred November 2006 to March 2007The KSA's account with Rogers Wireless in the name, "Yasser Ahmad Kwantlen StudentAssociation", was charged $6,016 from November 2006 to March 2007. These amounts werecharged to cell phone numbers related to the following names: Meenu, Danish, Joey, Jaivin,Yasser, Abeer Ahmad and one unidentified phone number. The amount owing to RogersWireless as ofMarch 7, 2007 was $6,526. No cell phones were returned to the current KSACouncil members by staff or former Council members (see Section 6.3).

3.4 High Risk Investments and Special Purpose FundsIt appears that the KSA cashed in over $620,000 in investments with the CIBC in December2005. It also appears that these funds were used by the KSA to loan $580,000 to WestlundProperties Corp. and $40,000 to Apex Communications Inc. and Andrew Westlund. The$580,000 loan is secured by a second mortgage against a commercial property in Surrey and apersonal guarantee of Andrew Westlund. The $40,000 loan, as described in the promissorynote, is unsecured. The regulations of the KSA dated February 18,2005 ("KSA Regulations")prohibit high-risk investments. These investments appear high-risk because the promissorynote is unsecured and the commercial property in Surrey has a first mortgage from Roynat Inc.of$l,lOO,OOO with a term ofApril 15, 2004 to March 15,2009 and an assessed value of$1,277,000 from the City of Surrey for the 2006 tax year (see Section 6.1).The KSA lent $200,000 to Inderjit Johal on an unsecured basis from the KSA Health andDental bank account. Inderjit Johal is not known to any of the current KSA Council and staff.The KSA Regulations require that Health and Dental funds be used only for supplying KSAmembers with health and dental related services. Inderjit Johal has repaid this loan (seeSection 6.2).

3.5 Transactions out of the Ordinary Course of BusinessThe August 21, 2006 Court Order did not allow the Interim Council to incur or pay anyexpenses out of the ordinary course ofbusiness. The KSA paid Dolo Investigations forsurveillance work conducted on October 19, 2006. The invoice was addressed to AaronTakhar and not the KSA. This payment appears out of the ordinary course ofbusiness for theKSA (see Section 6.5).

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3.6 Deletion ofEmail CorrespondenceRob Wilson ofPwC performed the computer forensic analysis and found that 4,495 emailshad been deleted from the email server on October 31, 2006, which is the last day that thePrior Council had control over the KSA's computer system (see Section 4.3).

3.7 Missing Accounting Records and Supporting DocumentationVarious records, such as the fiscal 2006 electronic accounting records for the KSA andsupporting documentation for payments made out of the KSA bank accounts, could not belocated (see Sections 4.4 and 4.5).

3.8 Bank SignatoriesThe KSA Regulations require two authorized signatures on all cheques and three authorizedsignatures on cheques of $3,000 or more. In February 2006, the Prior Council changed thebank signatory requirement with the CIBC to require only one signature on all cheques (seeSection 4.6).

4 Tasks and Activities of PwC4.1 Background

The current Council of the KSA were elected to their positions as a result of a Court OrderedStudent Election from October 17 to 19,2006. The Court Order stipulated that the newlyelected Council would assume office on November 1, 2006.On November 1,2006, Andy Joyce ofPwC and I attended at the Surrey Campus of the KSAto take copies of the computer hard drives, prepare an inventory ofmajor items and assist insecuring the premises.

4.2 November 1, 2006 Activities On November 1,2006 at 8:00 AM Andy Joyce ofPwC and I attended at the Surreycampus ofKwantlen University College. I met Mat Huff and Laura Anderson,recently elected Directors of the KSA. The KSA main office was locked. I entered theKSA cafe at approximately 8:30 AM and noted the cafe was open for business. The Surrey Campus Council ("SCC") office is another office of the KSA accessedthrough the cafe. It was opened at approximately 9: 15 AM by a person referred to as"Shameel" by Mat Huff.

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I had been advised by Mat Huff that an employee of the KSA, Deepkamal, would beattending to unlock the KSA main office. Andy Joyce and I waited for Deepkamal toamve.

As Deepkamal had not yet appeared, Andy Joyce and I entered the SCC office atapproximately 9:55 AM. I took an inventory ofmajor items and Andy Joyce took a bitstream image of one of the computers located in the SCC office. Andy Joyce and I leftthe SCC office at approximately 11 :45 AM in anticipation of accessing the KSA mainoffice.

The KSA main office was unlocked by Stafford Richter at approximately 1:05 PM.Andy Joyce and I entered the KSA main office with Stafford Richter, his brotherSterling, Mat Huff, Johnny Woo, Sean Tutt and Duncan Keist. The KSA main officeconsisted of a waiting area, front desk, meeting room, photocopy area and five lockedinner offices. The KSA main office was very disorganized.

At approximately 1:30 PM Mark Bell, Director of Security for Kwantlen UniversityCollege, attended at the KSA main office to unlock the five inner offices. At approximately 3: 10 PM Aaron Takhar attended at the KSA main office andproceeded to his inner office. Mat Huff asked Mr. Takhar to leave. Mr. Takhar agreed

to leave but removed the following items that he maintained were his personalbelongings: a photograph and a box of stationary with the letterhead "AST VenturesLtd.". Mr. Takhar stated that AST Ventures was his friend's company. Mr. Takharleft the KSA main office at approximately 3:30 PM.

Andy Joyce proceeded to take a bit stream image of the computer hard drives locatedin the KSA main office.

I entered the office ofYasser Ahmad which was completely disorganized. I located acash register till placed on top of one of the cabinets with accounting records piled ontop of it. The cash register till contained $1,834 worth of cash, Cineplex and Faresavertickets. There was a locked safe located in Mr. Ahmad's office which I did not haveaccess to; however, none of the cash was stored in the safe.

I entered the office ofAaron Takhar which was very disorganized. There were boxesof old accounting records piled beside one of the desks; accounting records werestrewn all over one desk, in disarray. Some miscellaneous cancelled cheques werepiled on top of the boxes of accounting records. I found endorsed, post-dated chequesaddressed to the KSA in one of the desk drawers. I found unopened bank statementson the bookcase shelves.

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I entered the other inner offices of the KSA main office and found them completelydisorganized with some accounting records on the desks rather than filed, dirty clothesleft in one comer and some boxes ofpromotional material for students piled againstone wall. I spoke with Mat Huff, Steve Lee and Johnny Woo concerning the state ofthe office records. I advised them to go through every office and desk to properlyorganize the accounting records. I also indicated that this would be a time consumingproject that was better performed by the KSA staff rather than hiring accountants suchas Pwc.

During the evening a locksmith, who had been hired by Mat Huff attended andchanged the locks on the KSA offices and lounges on all Kwantlen University Collegecampuses. He provided the new keys to Mat Huff.

I stayed at the KSA main office until approximately 8:50 PM when the KSA mainoffice was secured by Johnny Woo. While securing the KSA main office three menwalked up to the door and demanded access to the KSA office to retrieve certainpersonal belongings. The three individuals were not granted access to the officehowever Johnny Woo did retrieve some clothing and a gym bag and gave those itemsto the three gentlemen.

4.3 Electronic DocumentsThe computer forensic analysis was performed by Rob Wilson under the direction ofDavidIverson, both ofPwC. A summary of the work performed is attached in Appendix B. Thenames for the computer searches were provided by me to Mr. Wilson.I was instructed by David Borins of Farris to recover all documents deleted from the computerhard drives and computer servers of the KSA. Rob Wilson ofPwC performed the computerforensic analysis and found a large number of records that had been deleted on October 31,2006. In particular, Mr. Wilson found that 4,495 emails had been deleted from the emailserver, referred to as the Shadow, on October 31,2006. Mr. Wilson was able to recoverpreviously deleted emails and documents, or portions of them.I spoke with Deepkamal Sarang on January 10,2007. Mr. Sarang informed me that he wasinstructed to delete emails and did so because the instructions came from his boss. Mr. Sarangwas reluctant to name the person who instructed him but eventually advised me that theinstructions came from "Danish Butt and those individuals".All emails referred to in this report were recovered by Rob Wilson ofPwC who discoveredthat they had been deleted from the KSA's computers. Throughout this report where I refer to

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email correspondence recovered from the KSA's computers, I identify the individualconnected with that specific email address.

4.4 Paper DocumentsPwC Tasks PerformedI was informed by Steve Lee that he would organize all of the documents in the KSA mainoffice. Steve Lee told me that he had organized all ofthe documents in the KSA main officeexcept for the records in the former office ofYasser Ahmad. I reviewed the boxes preparedby Steve Lee at the KSA. There were very few electronic accounting printouts, some bankstatements, a few expense reports and some correspondence.In addition to the documents described above, I obtained the bank statements, cancelledcheques and deposit books from Rolando Navarro, the financial administrator of the KSA.Rolando was working out of the former office of Yasser Ahmad and had located those recordsin that office. At my request Rolando also provided some supplier invoices, that were not yetfiled, and payroll information from Ceridian, the payroll provider for the KSA.On January 11, 2007, I reviewed the documents in the former office ofYasser Ahmad, thathad not been reviewed by Steve Lee. I located a box of supplier invoices. These invoiceswere in addition to the invoices previously located by Mr. Navarro. I also located otherrelevant 2006 fiscal year records such as cash control sheets, cheque stubs andcorrespondence.On March 14,2007, I reviewed additional documents organized by Steve Lee during hisreview of the KSA office, and filed by Rolando Navarro, which had not been previouslyprovided to me. I did not locate any additional expense reports, general ledger accountingrecords or missing invoices.Expense ReportsI spoke with Desmond Rodenbour, Rolando Navarro, Steve Lee and Deepkamal Sarang aboutexpense reports relating to the period January 1 to November 1,2006. Messrs. RodenboUf,Navarro and Lee indicated that they had not found any additional expense reports that had notalready been provided to me. Mr. Sarang, an employee with the KSA since 2005, informedme that the expense reports for 2006 did exist and were filed in a black filing cabinet in theformer office ofAaron Takhar. Mr. Sarang searched the former office of Aaron Takhar andthe former office ofYasser Ahmad but could not locate these records.Based on Mr. Sarang's insistence that he submitted expense reports in 2006, it seems thatexpense reports did exist for 2006 but that some of these documents were removed beforeNovember 1, 2006.

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4.5 KSA accounting records and supporting documents - PWC F"indingsAs described in sections 4.3 and 4.4 above, I could not locate significant records of the l(SA.I would expect the following records to be maintained by the KSA:

a. Electronic copy of the accounting records for the 2006 fiscal 'year maintained in anaccounting software program. The software program would identify the financialtransactions of the KSA and be used to generate the financial statements and reportssuch as the general ledger;

b. Paper copies of the electronic accounting records for the 2006 fiscal year such as thecheque ledger, general ledger, accounts payable listing and payroll ledger;

c. Expense reports, signed and approved, with the original receipts attached and filed byname for 2006;d. All invoices approved and filed by supplier name for 2006;e. Minutes for the meetings of the Board ofDirectors or Council and the Executive

Council filed in a binder with approval of the minutes evident; alldf. Employee files for all staff including wages, hOllrs paid and regulatory formscompleted.

During my review I did not locate the 2006 fiscal year electronic acco'unlting records. I ldidlocate one electronic spreadsheet identifying the KSA transactions from January to April 1,2006; however, in comparing some transactions in that spreadsheet tC) the actual b a n k i n 1 ~ activity I found discrepancies. I would expect the KSA to maintain and update the electronicaccounting records, on a regular basis; updated accounting records w'ould assist the KS)\. inmaking operating decisions, ensuring their suppliers/Government are paid on time and toensure that they have sufficient funds in the bank at any' point in t i m t ~ . I recreated the KSA's bank account activity in the four CIBC bank accounts (operating, cafe,capital, health and dental) using the cancelled cheques, lbank statemeJnts and deposit booksfrom January to November 2006. The cafe fund bank account did not have any activity otherthan the initial transfer into the bank account of $1 ,000.I only found a few expense reports, other than a file fol(ler c o n t a i n i n ! ~ expense reports for JoeBajwa, in various places in the office. I organized these expense reports by name in a box keptat the KSA main office. I could not locate any expense reports for sonle of the KSA staff, inparticular Mohammad Hussain, Yasser Allmad, Jaivin Khatri and Jatinder Atwal.

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I did locate a box in the fonner office ofYasser Ahmad with invoices addressed to the KSA,filed by name for fiscal 2006 (such as suppliers for the cafe, office supplies etc) but there weresome invoices missing, in particular, there was no folder of invoices frani AS1' Ventures orAaron Takhar.I did find electronic copies of some minutes and agendas for the Council, Board of Directorsand the Executive Board and some minutes put together in a file folder in the desk of AaronTakhar; however, I would have expected the Councilor Board of Directors' minutes and allresolutions and special resolutions, to be filed chronologically in a binder.I understand that a number of KSA employee files could not be located by the KSA staff.It appears that the Prior Council were either not keeping proper records or they deliberatelyremoved these documents from the KSA main office. I base tllis observation on e:mails Ifound indicating the Prior Council 's poor record keeping and previous attempts to destroyemail correspondence:

1. Email correspondence between the email address.aaron.takhar(@kusa.ca. identified asAaron Takhar and email addresses identified as KSA staff and Directors, d.atecl May21, 2006 discussing the destruction of emails regarding the referendum question (seeAppendix C):

"deep, danish said hes [sic] already spoken to you about the emailfrom the kusa.ca domain to gallivan's anonomous [sic] feedbackservice about the leak of the referendum question. what [sic] is thestatus o fyour search into this leak ofin/ormation? did [sic] it indeedcome from our email system? let [sic] me know, thanksAlso, this is a reminder to all ofyou that Gallivan's lawyer has askedus to "turn over" any emailslmemos on THIS system to them so thatthey can know whether or not the referendum WAS INDEED IJre-planned... make sure to delete ANY AND ALL gallivan materielI fromyour INBOX, DRAFT and SENTfolders (including this email and anyreplys [sic] to it in your SENTfolder)

we [sic] cannot continue to underestimate gallivan, lets [sic] showthem some respect and nail them to the wall!D.ELETE EVERYTHINGIdeep, can you please make sure that even once its [sic] deleted thatthey can't get to it? i [sic] don't know what the chances are but wedont [sic] want to take ANY chances!

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thanks"

2. Email correspondence from the email [email protected]. identified asAaron Takhar to the email [email protected]. identified as Danish Butt datedApril 24, 2006 with the title "young parents program" (see Appendix D):

" ... this needs to be taken care ofbecause there are a lot ofchequesgoing out and no proper recor(1 keeping ... "3. Email correspondence from the email [email protected]. identified as

Aaron Takhar to email addresses iclentified as KSA staff and Directors dated June 7,2006 with the title "EFFICIENCY?!?!" (see Apl)endix E):

" .. .people secretly "borrowing" money. i J{sicJ know you say to MEwell YOU dont [sic] need to "borrow" monl:y because you ,alreadyhave it...well to that I say, "well, was I "borrowing" mOne)l last yearwhen I was making LESS than :vou are this year? "the borrowers: Jaivin, danish andjoey ....all in different w a ~ v s , alsokulvir i [sic] might add, but hes [sic] paid his dues (at least in dollarterms).. .BTW: yasser and menu, not so bad, but dont [sic] get swept into thestupidity when you can avoid it ... "

The organization of the accounting records, missing records and lack of any 2006 electronicaccounting records has cost the KSA unnecessary expense. The missing accounting recordsalso calls into question whether any professional accounltant can provid.e an unqualified auditopinion on the 2006 financial statements of the KSA.

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4.6 Bank Signatories and AuthorizationsThe KSA Regulations require a minimum of two signatures on all c h e ~ l u e s and threesignatures on any cheques of $3,000 or more. This two signature n1inimum requirement is abasic internal control to ensure that all expenses are properly approved before payment ismade. Navdeep Bains of CIBC provided the following documents, regarding changes to theKSA signature requirements:

Letter from AarOl1 Takhar, Danish Butt, Jatinder Atwal and Pa\ran Bassi of the KSA toShirley Straumford of the CIBC dated January 26, 2006 informing CIBC that:"Please be aware ofour policy changes effective immediately:

Transactions of less than ($1,000) one-thousand dollars vvill requireonly one signature. Transactions of($1,000) one-thousand dollars ormore will require two signing officers to sign. In the case D.-fonlinetransactions to be setup [sic] shortly by CIBC, only one individual,Aaron Takhar, will have authority over all online transactions.Details regarding the implementation of this plan requirefurtherdiscussion. It is in the primary stages ofdevelopmerlt. "

Letter from Aaron Takhar, Danish Butt, Jatinder Atwal and Yasser Ahmad of the KSAto Navdeep Bains ofCIBC dated February 6,2006 informing the CIBC that:H please be advised of the following changes in relation to ourinternal policies:We no longer require t)lVO signing officers fo r amounts 0.[$1,000 ormore. All transactions will require only the authority ofone signing~ f f i c e r . We would also like to setup [sic] our online accounts andhave them in full operation. Our contact person for all onlinetransactions wil l be Aaron Takhar. This will enhance our ability topay bills and transferfunds electronically. Ule appreciate .yourfullcooperation in the setup [sic] ofthis service. "

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Letter from Aaron Takhar, Danish Butt, Jatinder Atwal and Pavarl Bassi of the KSA toN avdeep Bains ofCIBC dated March 8, 2006 informing the CIBe tllat:

" .. .please be advised of the follovving changes in relation to ourinternal policies:We no longer require two signing officers for amounts of$1,000 ormore. All transactions will require only the authority ofone signingofficer. We would also like to setup [sic] our online accounts andhave them in full operation. Our contact person for all onliYletransactions will be Aaron Takhar. This will enhance our ability topay bills and transfer funds electronically. We appreciate your fullcooperation in the setup [sic] of this service. The resolution of theExecutive is as follows: Resolved that all online transactions behandled by Aaron Takhar. Further Resolved that Yasser Ahrned [sic]be granted authority to view "read only" accounts also online. PassedMarch 1, 2006. "

The change in the bank signatory to one signature for all transactions is in contravention of theKSA Regulations. From my detailed review of the bank transactions the KSA began to issuecheques with only one signature in late December 2005.

5 Documents Reviewed and Interviews Condl1ctedIn Appendix A, I list the documents reviewed and indivitluals contacted for this report. IIIaddition to the individuals identified in Appendix A, I attempted to interview certainindividuals, listed below, but these individuals refused an intervie"r with me.Interviews AttemptedWe attempted to arrange interviews with the following parties:

1. Aaron Takhar, former Director of Finance of the KSA and former employee of tlleKSA: Mr. Takhar refused an interview with me. Mr. Takhar provided somecomments on the January 25,2007 interim reporting letter ofPwC (see Appendix. R);2. Vasser Ahmad, fanner employee of the KSA: Nlr. Ahmad refused an interview 1vVithme. Mr. Ahmad provided some comments on the January 25, 2007 interim repol1:ingletter ofPwC (see Appendix S);

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3. Da:nish Butt, former President of the KSA: Mr. Butt refused all interview with me.Mr. Butt was included in a "Group Response" sent via email from Aaron Takhar to me(see Appendix T);

4. Andrew Westlund, owner of Apex Cornmunications Inc.: I was refused an interviewwith Andrew Westlund. Mr. Westlund.'s assistant cancelled an appointment with meanel directed me to Edmund Lim. Edmund Lim insisted I speak with him instead ofAn,drew Westlund, although Mr. Lim was not involved in the mortgage negotiationsbetween Westlund Properties Corp. an


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I recreated the bank account activity for the KSA from January to November 2006 anel notedcertain payments.Transactions With Individuals Or Companies Not ~ t e l a t e d To The K ~ ~ A : The KSA was involved in the following transactions with individuals or companies, notrelated to the KSA, which up to this point in my investigation I found ll0table:

$580,000 loan to Westlund Properties Corp. and $40,00() promissory loan to A.pexConlmunications Inc. and Andrew Westlund (Section 6.1) $200,000 loan to Inderjit Johal out of the Heal th alld Delltal Fund (Section 6.2) $1,053 paid to Rogers Wireless on the account of Gurpreet Cheema and $10,202 paidto Rogers Wireless on the account of the KSA (Section 6.3) $5,000 paid to Bilal Cheema (Section 6.4) $1,776 paid to Dolo Investigations (Section 6.5) $20,050 paid to Vancouver RMR Station, Harpreet H e i r ~ , Dalji t Sandhu and I-IarjitSandhu for an event called the "After Party" (Section 6.6)

6.1 Mortgage with Westlund Properties and Promissor':y Note from ApexCommunicationsIt appears that the KSA withdrew over $620,000 from their C I E ~ C investments in December2005 and lent the funds to Westlund Properties Corp., Apex COlnmunications Inc. aIldl AndrewWestlund.The KSA loaned Westlund Properties Corp. ("Westlund") $580,,000 on December 21, 2005for two years at 5% interest per year. This loan is secured. by a second mortgage on acommercial building located in Surrey and a personal guarantee by Andrew WestluTIld.In addition to the second mortgage, the KSA also loaned Apex ( ~ o m m u n i c a t i o n s I n c ~ ("Apex.")and. Andrew Westlund $40,000 on January 1,2006 for two years at 5% per year, as describedin a prolnissory note. There was no security for tIle promissory note.I reviewed the Apex Website and found that Apex is a telecomrIlunications company foundedby Andrew Westlund, who is also the company President. A p e : ~ ~ operates retail outlets inBritish Columbia providing telecommunications and security services. Edmund Lim is the

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Vice President Finance of Apex. I reviewed a corporate search for W t ~ s t l u n d and fOUIld thatAndrew Westlund is the President.For the following reasons I consider these loans to be high risk investnlents:

a. The promissory note from Apex and Mr. Westlund is urlsecure(i: andb. The KSA second mortgage securing the $580,000 loan rnay not be fully securedbecause the property located at 13734 104th Avenue in Surrey (the "Surrey p r o ~ p e r t y " ) has an assessed value of $1.277 million (according to t h ( ~ 2006 City of Surrey taxassessnlent) and was assessed at $1.142 million in 2005; however there is a RoynatInc. first mortgage with a principal value of $1.1 milliorl registered against it. The

tenn of the Roynat Inc. mortgage is April 15, 2004 to March 15,2009. We do notknow the amount owing on the first mortgage.

The KSA Regulations prohibit high risk investmeIlts.Section VIII, Article 7.6 of the KSA Regulations states:

"The Society shall not invest in high-risk investments, such as stockspeculation, junk bonds or unregulated commodities. n

I was advised by James Broad, the lawyer who registered the W ~ e s t l u n d second mortgage, thata "special resolution" was passed and signed by the Board of Directors approving thisinvestment. I did not find a copy of this special resolution in the KSA lnain office (as noted inSection 4.5 above, I would expect all resolutions and m1.l1utes to be filed in a binder). I wasprovided with the following documents from Mr. I ~ r o a d ' s workiJng paper files by Farris:

December 19,2005 letter from Aaron Takh.ar as Chairperson and Director of Fi.nanceof the KSA to James Broad instructing Mr. Broad to proceed with the loan;

Minutes of the Executive Board Meeting dated Decenlber 6, 2005 that includes thefollowing resolution:"Investments - As mentioned before, Aaron, Jaivin and .loey havebeen in talks with a private investment firm and htlVe approved thedeal. It is now up to this Board to rnake a final decision.Motion: EBOD 2005-307 Jaivin/Joey

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BIRT allfunds not required to be held as liquid security by theAssociation's mortgage be prepared for transferBIRT the details of the transaction be handled b}' the Director ofFinanceCarried"

January 5, 2006 letter from Aaron Takhar as Chairpersoll and Director of Fina:nce ofthe KSA to James Broad instructing as follows:"The difference in the amount of the mortg"age to ApexCommunications Inc., $40,000 and the actual arnount given intrust to you, $580, 000 can be given to Apex C o m ~ m u n i c a t i o n s Inc.based on them signing a promissory note in the amount of$40, 000. An amendment to the mortgage is not ) ~ ~ e c e s s a r y . "

Navdeep Bains of the CIBC provided the following docurnents to me: December 7, 2005 letter from Aaron Takhar as Chairperson and Director of Finance toMr. Bains instructing the CIBC to transfer $580,000; December 14, 2005 letter from the KSA Executive Boar'ld ofDirectors to Navdleep

Bains instructing the CIBC to transfer $580,000 from the investment portfolio;, and Minutes of the Executive Board Meeting dated Decembler 6, 2005 that includes theresolution for an investment with a private investment firm.

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Aaron Takhar refused to attend an interview with me and Bob Sandy. Bob Sandy arid. Iinvited Mr. Takhar to provide comments on the January 25, 2007 interim report ing letter ofPwC and those comments are attached as Appendix R. M[r. Takhar disagreed with m)'reference to the applicability of the February 18, 2005 regulatiollS of the KSA; howev,er Iunderstand from a review of the affidavit of Desmond Rodenbollr, dated November 22,2006,that Mr. Justice Tysoe ordered that the correct regulations governing the KSA are theregulations dated February 18,2005. Mr. Takhar did not :provid.e me with a copy oftlleregulations he claims were in effect at the time of this mortgage: so I cannot comment on thoseregulations.I received, from Titus Gregory of the KSA, a copy of KSA regullations dated January 6, 2006("January Regulations"), found in the former office of Aaron Takhar. It\.lthough the date(JaIluary 6, 2006) on the January Regulations is after the date (I)ecember 21, 2005) of themortgage with Westlund, it's possible that these are the KSA r e ! ~ l a t i o l 1 s that Mr. Takharreferred to in his comments to me. I reviewed this document anJd have the followingobservations:

Section I, Article 1.4 of the January Regulations includes a definition for the positionof Executive Advisor (a position not defined in the KSA Regulations) with duties suchas advice on "financial matters and investments, in addition to other duties. Thisposition may be contracted out i fdeemed necessary. ";

Section I, Article 1.4 of the January Regulations includes a definition entitled ~ ) u t ofMeeting Motion (this definition is not included in the KSA Regulations) with thefollowing definition "shall mean the resolution sig'ned a.rId passed by at least three (3)Executive members. Executive members being one of thefollowing: President,Treasurer, Vice President Internal Affairs, Vice President External Affairs, VicePresident Events & Student Life. The resolution must be presented to the Boar,d ofDirectors i fanother voting Board member wishes to challenge it. The Board n ~ a y entertain a motion to disprove it by a majority vote ";

Section II Artic le 7.8 of the KSA Regulat ions inclu.des trLe following text whicll wasnot included in the January Regulations "While in camert;l, Council shall not consideror vote on motions that require a Two-thirds (2/3) Resolution, including chancges to theRegulations or Policies of the Society ";

Section VIII Article 4.4(vi) of the KSA Regulations provjdes for Council to apI>rovethe Executive Board minutes in which a contract is appro'ved before a contract ean besigned. The January Regulations do not require this approval of Council b e f o r e ~ acontract can be signed;

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Section VIII Article 4.6 of the January Regulations allo,;v contracts to be approved withan out of meeting motion approved by the President, Treasurer and Vice P r e s i ~ d e n t External Affairs. The KSA Regulations require a Two-thirds resolution of Council. Inaddition the KSA Regulations include subsections 7 to 11 regarding contracts. Thesesubsections were not included in the January Regulations;

Section VIII Article 7.1 of the January Regulations states that the Executive Advisorand the Treasurer co-manage the financial investments of the KSA. The KSARegulations states that the General Manager and the Director of Finance co-managethe financial investments of the KSA; and

Section VIII Article 7.4 of the January Regulations state "The Executive Advisor andthe Treasurer, on their joint approval, mayt purchase or Jplace the Societys [sic.l assetsin investments such as Realestate [sic] or reasonably secure land investments, as wellas any other investment yvith a reasonable [sic] secure rate ofreturn ". The samesection in the KSA Regulations state "The General Manager and the Director ofFinance, on their joint approval, may purchase or place the Society's assets in securedinvestments such as deposit accounts, c e r t ~ f i c a t e s ofdeposit, savings bonds, investmentgrade bonds and investments, government treasury bills and guaranteed invest,mentcertificates. ".

It seems that the January Regulatons provide significant financial decision makingresponsibilities with the Executive Advisor anel the Treasurer. These January Regtllationsalso specifically refer to real estate investments requiring the approval of only theExeclltive Advisor and the Treasurer. It seems that these inclusions in tIle JanuaryRegulations may be a retroactive method to ensure that the ITlortgage with Westlun.d would"be an acceptable investment according to the regulations of the KSA..Mr. Takhar disagreed with my conclusion that the mortgage and promissory note are highrisk, Mr. Takhar stated that it was at the discretion of the KSJA to determine what VIashigh-risk. My reasons for considering the loans high risk are: described above. Mr. Takharindicated that the commercial property assessment available to the KSA at the t i m t ; ~ wasoutdated and that the value of the property was not accurately reflected. Mr Takhar statedthat the KSA did its own research; I have not been provided ~ N i t h or located any of theresearch performed by the KSA, at the time the loan was approved. I have not beerLI)rovided with any information to support the assertion that the Surrey property was11ndervalued at the time of the loans.

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I also reviewed the following documents:

a. Mortgage document from a company named Kultak Financial II1C. ("Kultak") toWestlund in the amount of $150,000 dated October 11, 1996 for a one year term andsigned and filed by James Broad, Barrister & Solicitor. The mortgage document liststhe address of James Broad as 9337 Scott Road I)elta BC V4C 6R8;b. BC Company Search for Kultak Financial II1C. dated November 8, 2006, showing AlanTakhar and Kuldip Takhar as directors. The address for Alan alld Kuldip Takllar islisted as 13862 56A Street Surrey BC V3S 2X5. The registered address for Kultak islisted as 9337 Scott Road Delta BC V4C 6R8;c. Insurance document for Westlund, as the insurecl, dated May 30, 2005 showing Kultak

as a creditor on the Surrey property;d. Ceridian payroll printout of the KSA listing the address ofAaron Takhar as 13862 56AAve. Surrey BC;I have the following observations:

The December 6, 2005 Executive Board. Meeting minutes refer to a privateinvestment firm but the mortgage is with a telecommunications company;

The December 6, 2005 Executive Board Meeting minutes did not m.ention the totalamount of ftlnds to be loaned to Apex trLerefore the KSA Board Members may nothave realized the amount of the loan; Correspondence between Aaron Takhar and CIBC indicates tIlat the amount of thefunds to be transferred was $580,000; it is ul1certain why the additional $40,000was loaned as a promissory note instead of increasing the mortgage to $620,000;and Kultak loaned money to Westlund in 1995. Alan and Kuldip Takhar are tb.eshareholders ofKultak. The addresses for Alan and Kuldip Takhar and Aaron

Takhar are listed as the same. It seems l i k e l ~ y that Alan and Kuldip Takhar arerelated to Aaron Takhar. It seems that the KSA nlay have been introduce(l toWestlund and Apex through the Takhar family's prior relationship.

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Section VIII, Article 7.6 of the KSA Regulations states:

"The Society shall not invest in high-risk investments, such as stockspeculation, Junk bonds or unregulated commodities. "This loan appeared to be a high-risk investment. I base this on tIle following:

There was no documented due diligence on Inderjit Johal (unknown to thecurrent Council) in particular, nothing to indicate the credit history ofInderjit Johal; there is no approval by the KSA Board ofDirectors; there was no security for this loan; and the loan was a significant amount, representing 29% of the total funds inthe Health and Dental bank account on March 13, 2006 (the date the fundscleared the KSA bank account).

Section VIII, Article 1.7 of the KSA Regulations states:"Cheques and other officialfinancial instruments dealing withexpenditures shall be signed by two (2) signing officers, once theappropriate level ofauthority has approved the expenditure.However, if the cheque or other officialfinancial instrumentrepresents an expenditure of three thousand dollars ($3000.00) ormore, it shall require the signatures of three (3) signing officers. "

The $200,000 cheque addressed to Inderjit Johal dated March 11, 2006 wassigned by only two parties; Danish Butt and Joey Atwal. The KSA Regulationsrequired three signatures on this cheque.Inderjit Johal is not known to the current KSA council members. I was unable tolearn anything about Inderjit Johal from the Prior Council. Danish Butt refused toattend an interview with me. Joey Atwal never responded to my requests for aninterview; however Mr. Atwal did send me email correspondence on April 23,2007, a copy of the email correspondence is attached as Appendix U. In ernailcorrrespondence with Danish Butt and Joey Atwal, I was not provided witll anexplanation for the loan to Inderjit Johal.

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6.3 Rogers WirelessNovember 2006 to March 2007During the period November 2006 to March 2007, the KSA's account with Rogers Wirelesswas charged $6,015.66 (see Schedule 4 for details), with.out the knowledge of the current KS ACouncil, as follows:Cell Phone User NameMeenuDanishJoeyJaivinVasserNo specified user nameAbeer AhmadTotal Charged

Cell Phone #604-765-0649604-765-1251604-807-2252778-995-3730778-995-6173778-996-5544780-901-6173

Amount$ 441$2,646$ 267$ 874$1,461$ 183$ 143$6,015

There is a current outstanding bill as of March 2007 of $6,526.48 with Rog,ers Wireless. Inote that Danish, Joey and Jaivin are former Directors of the KSA who left office on October31, 2006. I understand that no cell phones were retumetl to the current KSi\. Council membersby former KSA Council members or former employees.The Rogers Wireless account was in the name Kwantlerl College (Yasser Ahmad) and VasserAhnlad was the person who authorized all of the cell phones, usage and billing for thisaccount, according to Rogers Wireless. According to Rogers W"ireless, the KS.A's accountwas set up for online billing, meaning that there were no paper bills sent to the KSA office. Idid not locate any Rogers Wireless invoices at the KSA main office, other than the first pageof the Rogers Wireless invoice addressed to Gurpreet C:heema and orle invoice addressed toKwantlen College (Yasser Ahmad).I spoke with Kulvir Gill, fonner Richmond Director, who informed me that Aaron Takharoffered him a cell phone paid for by the KSA in exchange for extra hours worked by :Mr. Gill.I note that the employment contract for Yasser Ahmad provides for the use of a cell phone, atno charge to Mr. Ahmad. Therefore, it appears that the Prior COUI1Cil used cell phones as afonn of remuneration for staff and Directors.February to October 2006During the period February to October 2006 the KSA paid $11,255 to Rogers Wireless for cellphone services (see Schedule 3). These payments can be broken down as follows:

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Rogers Wireless account in the name of Gurpreet Cheema $ 1,053 lRogers Wireless account in the name of Kwantlen College (Yasser Ahmad) $10,202JTotal Roger Wireless Payments by the KSA $11,255The average monthly cellular phone bill was over $1,100. This seems high. because the KSAalso mainta ins regular telephone lines to be used for business purposes.Section I, Article 5 of the KSA Regulations states:

"The mission statement of the Kwantlen Student Association (KSA) isto support its members during their time ofstudy by ensuring adequateprovision for their welfare, activities, poli tical and social needs"

It seems unlikely that the business of the KSA would require monthly cellular bills of over$1,100.I did not locate any nlinutes approving the payment of the cell phone bills for GurpreetCheema or the KSA.I did locate the following enlail corresponden.ce r e ~ ~ a r d i n g phone bills:

a. Email correspondence from the email address [email protected]. identified asAaron Takhar to email addresses identified as KSA staff and Directors on April 28,2006 (see Appendix F):

" ...joey - just WORK... and stay offthe phone (you know what Imean) calls to the middle east are too expensive for us ... "

b. Email correspondence from the email address.aaron.takhar@l


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6.4 Bilal Cheema

The KSA paid Bilal Cheema $5,000 on August 10, 2006. The cheque was signed by "bothDanish Butt and Yasser Ahmad. I could not locate any supporting docurne:ntation. for thisamount at the KSA main office.Bilal Cheema attended an interview with me and Bob Sandy on March 6, 2007 to discuss thework he performed for the KSA. Mr Cheema made the following comments:

Bilal Cheema was approached by Danish Butt in February 2006 to provide assistancewith communications issues and image consulting regardin.g (a) a special generalmeeting in the Fall 2005 (b) perceptions of irregularities around student elections (c)expenditures (d) cafe closure due to renovations;

Mr. Cheema's work period covered March to Allgust 2006; Mr. Cheema destroyed his notes from the meetirlgs but he provided me with (i) a copy

of a contract between the KSA and Bilal Cheema, signed by Bilal C ~ h e e m a , DanishButt and Jaivin Khatri, (ii) Mr. Cheema's inlvoice to the KSA and (iii) a log of meetingdates. I did not locate a copy of the contract, in,roice or log of meeting dates that Mr.Cheema provided to me, at the KSA's main office; Mr. Cheema would meet with Danish Butt and on occasion Jaivin Khatri but l1e never

met with other KSA Directors or staffor knew whether there was Board approval forhis work; The meetings between Mr. Cheema and Danish Butt woulel be held at the Starbucks inSurrey; Mr. Cheema never attended at the KSA office; Mr. Cheema never provided a specific work product such as a repoli, letter or pressrelease. Mr. Cheema provided verbal advice in Ineetings with Danish Butt andsometimes Jaivin Khatri; Mr. Cheema charged the KSA sixty-seven (67) 110urs at $75/hour which totals $5,025

but the invoice was rounded to $5,000; Mr. Cheema was contacted more than once by Danish Butt for assistance with theOctober 2006 student campaign but Mr. Cheema refused;

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Mr. Cheema vaguely recalled the email from Danish Butt ( A t ~ p e n d i x I) andacknowledged providing Jacques Leger's name as a possible ~ C h i e f R e t u m i n g Officer("CRO") candidate; and

Mr. Cheema has never had any d e a l i n ~ g s with Aaron Takhar, [,ut knows of him.I found the following deleted email corresponldence, suggesting that the Prior Councilattempted to secure Jacques Leger as the CRC) for the KSA election ()ctober 17 to 19, 2006al1d attempted to organize and provide indivicluals to campaign in t h e ~ election:

a. An email from Don Crane ofRush Crane Guenther to Marika Giles ofHungerfordTomyn Lawrenson and Nichols, datedl August 31, 2006 discussing Messrs Schiffnerand Bouwman as possible candidates for CRO with a preferetlce for Mr. Bouwn1an(see Appendix H);

b. Return email from Ms. Giles to Mr. Crane on September 1, 2006 indicating that theyare consulting with their client (see A]ppendix H);

c. An email to Aaron Takhar (at the email [email protected].) from Mr. Crane,dated September 1, 2006, forwarding the above emails (see A.ppendix H);

d. An email from the email [email protected]. ideIltified as Aaron Takhar tothe email address 'president @kusa.ca' identified as Danish Butt and the email address'[email protected]' identified as Jaivin Khatri forwarding all 3 of the above emails,dated September 1, 2006 (see Appendix H):

"keep updated, read below ...our fInal surprise will be, guesswho ...Jaques [sic] II DELETE THlS EMAIL RIGHT N O U ~ andfromyour trash folderII"

e. An email from the email [email protected] . identified as Danish Butt to BilalCheema, dated September 6, 2006, with the subject "Jaque [sic]" (see AI)pendix I):

"Bilal, What in the Y1/orlds going on with Jaque [sic]? AClrron 's spoke[sic] to him on several occasions, so has our legal counsel Don Crane,and it seems to us that he isjust not interested anymore. l ~ u t again I'mclose to 100 percent sure that fron'1 [sic] a little pressure from you,you're able to convince him. Tell him all he needs to do is beat theother guys price and a n ~ v of the diJ.rerence [sic] we'll give him underthe table. Man I can't even tell you how HUGE it would lJe to get himonside, it would save of[sic] tons oftime and effort. Lemme [sic]

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know man I realize you're busy, but brotha[sic] tell me what else 1need to do to make this happen. Flopefully t{ilk to you soon. SincerestRegards, Danish Butt President K"wantlen University College StudentAssociation"

f. Email correspondence from Aaron Ta]khar (a deleted documellt found by Rob Wilsonon the hard drive ofAaron Takhar). l'he email discusses J a c ~ l u e s Leger as thepreferred candidate ifhe can provide the senrice significantly cheaper due to the poorfinancial position of the KSA. This elnail appears to be in response to an email fromDon Crane to Aaron Takhar on Septernber 6,2006 (see Appendix J);

g. Facsimile from Don Crane to Aaron T'akhar, dated September 15, 2006 including anemail from Don Crane addressed to Aaron Takhar discussing the eRO appointment ofMr. Schiffner instead ofMr. Leger, including a concern by Mr. Crane that Mr. Legerhad to be prodded into submitting an application (see Appendix K); and

h. An email from the email [email protected]. iderltified as Aaron Takhar tothe email a d d r e s s . p r e s i d e n t @ k u s a . c a ~ . identified as Danish B"utt, dated September 17,2006 with no subject line (see Appendlix L):

"we gave hilal $5,000 so what the [expletive] is he going to dofor us?Lets [sic] si t down with him closer to the election, but ma!,e sure youmake clear to him NOW ins tead oJrlater, that we simply need manpower come election time, and that he shoul(} have at least 4-6 peoplecampaigning as students (even if they don't go to school) lduring thethree polling days!! Make this point very clear!! and THEN we );i;'illmake his Hcontract" fo r the 5,000 and what services he performed!!tell him to clear schedules o fhis people fo r those says [sic] inparticular! give him notice!! DELl!:TE TiflS EMAlL< and delete itfrom your trash folder after!!"

Bob Sandy and I showed the above email con*espondence (Appendix L) to BilalCheema. Mr. Cheema stated that he had neve:r had any dealings with . L ~ a r o n Takhar and that this email wassentalmostarnonthafterhiscontractenlded.Mr.Cheema stated that he had a contract with the KSA and did not perfolID any worJkfor the KSA past that date or during the Octor)er electiorls.I spoke with Jacques Leger who stated that:

Mr. Leger was approached by Bilal Cheema regarding the KSA Octoberelection;

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Mr. Leger was contacted by another i]tldividual (Mr. Leger could notremen1ber the person's name) who as]k.ed Mr. Leger ifhe WOllld bewilling to have his name submitted for the election;

Mr. Leger stated that no one suggested that he ]Jllatch another bid and "getpaid under the table". Mr. Leger s t a t t ~ d that he 'ould never clo anythinglike that; Mr. Leger spoke with the lawyer, he could not remember the lawyer'sname, regarding the election in about August or September; and Mr. Leger recalled that he was very busy at the time of the KSA electiol1therefore he submitted his resume an(l an "outrageous bid" price to the

lawyer. Mr. Leger never heard back from the lawyer. Mr. L,eger does nothave a copy of the email with the amount of the bid submitted.In his email correspondencetome(seeAppelldixR).Mr. Takhar stated that he did not recallthe above emails.

6.5 Dolo InvestigationsThe KSA paid $1,776 to Dolo Investigations on October 26,2006. 1"1he cheque was signed byYasser Ahn1ad. The invoice is addressed to )\'aron Takllar without allY' reference to the KSA.The invoice indicates that surveillance work 'Nas perfonned on Octol)er 19, 2006. The KSAelection occurred on October 17 to 19,2006.Desmond Rodenbour contacted Dolo I n v e s t i ~ ~ a t i o n s to obtain a copy of the report but wasrefused.I understand that pursuant to the Court Order dated August 21, 2006, the Irlterim Councilcannot approve or disburse any funds nor enter into contracts out of the ordinary course ofbusiness. The payment of an invoice for surveillance w'ork addresse,i to Aaron Takhar doesnot seem to be in the ordinary course ofKSA business.In his email correspondencetome(seeAppen.dixR).Mr.Takhar indicated that the serviceswere for the KSA but he did not provide any ,details as to how these services relate to the KSAmandate.

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6.6 AfterpartyOn November 1, 2006 when I entered KSA office 0'1244 (located in the KSA's main office) Ifound copies of cheque stubs tacked to a board. T h ( ~ s e cheques, paid Ollt of the KSA bankaccount, are as follows:

Cheque # Cheque Cheque PayeeDate

13701 March 10,2006

Vancouver RMR Station I

13750 March 30,2006 Vancouver RMR Station I

13751 March 30,2006 Harpreet Heir

13777 April 13,2006 Daljit Sandhu

13778 April 13,2006 Harjit Sandhu

Total Paid by the KSA

-ltd.

Date Cheque ChequeCleared SignatoJ[ AmountBank y

April 28,2006

JaivinKhatri

$ 2,750

April 28,2006 JaivinKhatri $ 4,300

April 28,2006 JaivinKhatri$ 3,000

April 17,2006 DanishButt $ 8,000

April 13, I Danish $ 2,0002006 Butt

$20,050

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I found a contract between the KSA and Harjit and Daljit Sandhu in the amount of $20,050 foran event held on April 29, 2006 called the "After Party". The contract was signed by DanishButt and Joey Atwal on behalfof the KSA. 1'he contract states "Whereas the KSA waspromoted to its membership at Kwantlen University College promoted [sic] a youth event,partly organized b)J the KSA, at other youth locations around the low'er mainland". There isno other description of the event or what exactly the event was supposed to prornote.The contract also states "Whereas all receipts must be provided to the KSA on or before May15, 2006, by Daljit Sandhu for any and all eXj7enSeS directly or indirectly related to the AfterParty". I did not locate any receipts for the Alfier Party at the office of the KSA..I found one reference to the "After Party" in the May 22, 2006 Eee lneeting minutes asfollows:

"VP Events Report After party with B21 on A p r i I 2 ~ l h . An organized water balloonfig'htl and se t up

few pools and sprinklers for a better sumrner environment"I did not locate any reference to Board of D i r ( ~ c t o r approval for this e'vent ill the minutes of themeetings of the Board ofDirectors of the KS1\. I did locate the following email exchangerelated to the "After Party" dated May 22, 2006 with the subject "Re: afterparty and health"(see Appendix W). From email address.aaro:[email protected]. identified as Aaron Takhar toemail address '[email protected]' identified as Danish Butt and email address'[email protected]' identified as Jaivin Khatri:(1) An y money from the afterparty' guys? I've already reminded you

danish, [sic] and your [sic] l e a v i n ~ 5 f o r ottawa [sic] on tues [ s i ~ l so itdoesn't look like anything is going to happen before then, where haveyou guys been over the pastfew weeks? almost [sic] 20K to theseguys? I?!"

Reply from email address '[email protected]' identified as Danish Butt to emailaddress '[email protected]' identified as l\aron Takhar dated May 22, 2006(see Appendix W):

HI 'II ge t on the formal guys, he's su,pposed to come see me Afonliay, Icalled him afew times he picked UJ7 once by accident because i [sic]blocked the number 101 worst case scenario i 'II [sic] go to his housewe have some mutual friends from teh [sic] community, i 'II [sic] ge tthe money. "

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I found a deposit into the KSA bank account on No,rem"ber 17, 2007 for $3,000from D. Sandhu. It's possible that this is a re:payment of a portion of the $20,050paid by the KSA for this "After Party" event.I spoke with Kulvir Gill, former Richmond D i r e c t o r ~ , WIlO stated the following:

that he attended the "After Party" event at a club in Vancouver. MrGill could not recall the name of the club; that the event was promoted on campus and was attended by otherKSA board members as well; that the KSA wanted publicity because of bad press; that he recalled on.e meeting where the group organizing the "AfterParty" made a presentation to the KSA board of directors. Mr. Gillcould not recall the name of the group organizing the "After Party";and that the event was approved by Aaron r[akhar and Danish Butt.

I also spoke with Bikram Gill, former Vice President Events, who stated thefollowing: that he never organized or attended the: "After Party" event, even thoughMr. Gill was the Vice President Events for the KSA; that he was involved in the organizatio:n of the "Moonshine Dance", anevent planned for Spring 2006, that was cancelled because of an issue withthe liquor licence; that he thought the "After Party" event was a conlbined event that was co-hosted with another orgal1ization, Douglas College; and that any KSA event has to be approved before the event can happen so the"After Party" must have been approved.

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The "After Party" cost of $20,050 seems higbl for a KSA event becau.se:

Bikram G-ill stated that he had a budget of $1 0,000 for events for allthe KSA campuses for the year; and I reviewed a document containin.g a b u d g t ~ t of $20,170 for theWelcome Week events in the Fall of 2006. The Weicollle Weekevents included activities at t h r t ~ e campuses, Surrey, RichmoIld andLangley.

I was not able to contact Rarjit Sandhu and Daljit Sandh.u as I had no contact in.formation forthem. As I've indicated before, Prior Council members Danish Butt refused an interview withme and latinder Atwal never replied to my re(luests for an interview. 'rherefore I did not haveany additional infonnation from them concerrling the pu.rpose of the "After Party".Danish Butt, Jatinder Atwal and Jaivin Khatri appear to 'be the KSA Directors w'ho approvedthe "After Party" expenses since they signed the cheques and/or contract related to the "AfterParty".Transactions With Former E m p l o y e 4 ~ s And Former Council :Melnbers OfThe KSA And Related Companies:The KSA was involved in the following transactions with former employees and formerCouncil members of the KSA and related conlpanies, wllich up to this point in l l lyinvestigation I found notable:

$67,794 in estimated unsupported paYlnents to A.aron Takhar an.d AST vrentures(Section 6.7) $897 overpayment to New Concept Renovators (Section 6.8) $16,676 in estimated unsupported payrnents to Mohammad Hussain (Section 6.8) $17,252 in estimated unsupported payrnents to Vasser Ahmad (Section 6.9) $21,087 in estimated unsupported payrnents to Danish Butt (Section 6.10) $10,997 in estimated unsupported payrnents to Jaivin Khatri (Sectioll 6.11) $9,017 in estimated unsupported paymtents to Jatinder Atwal (Sectio:n 6.12)

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6.7 Aaron Takhar and AST VenturesKSA made estimated unsupported payments of$67,794 for the services ofAaron Takhar asExecutive Advisor. My analysis is set out as follows:Paid to Aaron Takhar:

Cheques out of the KSA operating account in September 2006 (Sch.edule 1) $ 10,000Paid to AST Ventures:

Cheques out of the KSA operating account (Schedule 1) $103,436Total payments by the KSA for the services of ..Aaron Takhar $113,436Amount Due for the Services ofAaron Takhar:Salary as Director ofFinance for January 2006 $ 1,993Estimated Salary as Executive Advisor February to October 2006 $ 43,650

$ 45,643Estimated Unsupported Payments by the KS)\. $ 67,794Aaron Takhar was the former Director of Finance of the KSA from approximately May 2005to January 2006 and became the Executive Aldvisor of tIle KSA from approximately February2006 to November 1, 2006. Desmond Rodenbour, (Jeneral Manager of the KSJ\.,subsequently terminated Mr. Takhar's emplo:yment witll the KSA. AST Ventures Inc. is aconsulting company that invoiced the KSA for the services ofAaron Takhar (discussed furtherbelow).Aaron TakharSchedule 1 identifies the KSA payments to Aaron Takhar and AST VeJntures from January toNovember 2006.There were two payments of $5,000 each pai(l to Aaron Takhar in September 2006. The

r$5,000 cheques to Mr. Takhar were signed by Jatinder Atwal and Yasser Ahmad, respectively.The employment contract, dated August 1, 2006, between the KSA a:nd Aaron 1"'akhar statesthat Mr. Takhar is to be paid $4,850 per month. It's unc:,ertain why N[r. Takhar received thesetwo $5,000 payments; however we did locate the following email on tIle hard drive ofAaronTakhar addressed to "Yasser", not dated (see .Appendix M):

"yasser, a couple of things: ...also, please cut me a chq [sic] for$5,000 for the month ofaugust... n1Y name should be on i t thats [sic]

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it. I'm at $5,OOO/monthjust like you now...L:)ELETE THI..'i EAMIL[sic}, and then empty your trash!!"

In email correspondence with me, Mr. Takhar states that the $150 difference between each ofthe $5,000 cheques paid to him by the KSA aJt1d his morlthly gross salary of $4,850 are regularexpenses incurred during the course of emplo:yment. Mr. Takhar did not provide any detail orsupporting documentation for these amounts. I did flot find any expense reports for Mr.Takhar for these amounts.I reviewed the employment contract between Aaron Takhar and the KSA, dated August 1,2006. Based on the contract Aaron Takhar would be entitled to an amlual salary of $58,200Mr. Takhar did not have a written employmerlt contract for the periocl I ~ e b r u a r y to July 2006.Therefore, to detemline the estimated amount due to Aaron Takhar for the Febru.ary to July2006 period I assume that Mr, Takhar would l)e entitled to the same level of compensation asin the contract dated August 1, 2006 The amount dlle to Aaron Takhar for the nine months is$43,650.The employment contract stipulates that no payroll d.eductions be withheld yet refers to Mr.Takhar as an 'employee'. This is in contraveIltion o f t h t ~ Employment Insurance Act, IncomeTax Act and the Canada Pension Plan. The KSA may be liable for payroll deductions on thewages ofAaron Takhar as well as any assessed penalties and interest on unremitted payrolltaxes.

Mr. Takhar did not provide any comment on the lack of :payroll taxes withheld on theamounts paid to him by the KSA. I understan,d from Rolando Navarro that Mr. l ~ a k h a r has notoffered to repay the witholding taxes to the KSA.AST VenturesThe KSA paid AST Ventures $103,436 from l ~ e b r u a r y to August 2006 (see Schedule 1).It appears that these payments by the KSA to i\ST Ventllres relate to the services ofAaronTakhar as Executive Advisor. Based on the following I believe that Aaron Takhar has aninterest in and/or controls AST Ventures:

a. Aaron Takhar's full name is Aaronjeet Singh Takhar. Mr. Takhar's initials AST arethe same as the company name AST Ventures;b. Mr. Takhar removed a box of stationary with the AST V e n t u r t ~ S letterhead from hisdesk in the KSA offices on November 1, 2006;

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c. Rob Wilson ofPwC found various "AST Ventures Ltd." logos on the computer harddrive ofAaron Takhar;

d. Aaron Takhar resigned as a Director ofAST Ventures on August 1, 2006. AaronTakhar's employment contract with trle KSA is dated August 1, 2006. It seems thatAaron Takhar intended to sever his t i t ~ S with AST Ventures the sam.e day he signed anemployment agreement with the KSA; and

e. I spoke with Jaideep Pannu, who is listed as the Director ofAST Ventures, on January17, 2007. Mr. Pannu confirmed tllat the AST Ventures' invoices to the KSA were forthe services ofAaron Takhar. I attempted to ask Mr. Pannu further questions; howeverhe ended the phone call after agreeing to contact me again. I never received any phonecalls from Mr. Pannu.

In addition to the above facts, we found ttle following emails indicating that AarOIl Takharcontrols AST Ventures:1. Email exchange between the email a d ~ J r e s s a a r o n . t a k h a r @ k u s a . c a iderltified as Aaron

Takhar and Joseph Tupaz ofCreative Insignia, dated April 7, 2006 with the heading"AST Logo Design" (see Appendix N):

"Joseph,I like one of the logos, please give me a call (lnd we can talk about adesign to go on a letterhead and business cards. Thanks, aaron 604-537-1503 "

2. Email exchange between the email ad


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receive the AST VENTURES logo to put on lny letterhead. You hadindicated that you would send a one [siclin proper format that I cO'ulduse in WORD or EXCEL etc...thanks,~ 4 a r o n TakharExecutive AdvisorKwantlen University Student Association"

4. Email exchange between the en1ail address'[email protected]' identified as Yasser Alunad and the emailaddress '[email protected]' identified as Aaron Takhar datedAugust 5, 2006 (see Appendix Q):

"yasser... AST chqs are neededfor July, three of them (less GST thistime) that's the only difference also, please let me know what sourcesare needed and I will start getting them. ~ A n d re-print the appropriatestubs ... "

In email correspondencewithme.Mr. Takhar disagreed with my assessment th.at he has aninterest in and/or controls AST Ventures. S e t ~ Appe:ndix R for Mr. Takhar's emailcorrespondence with me.Supporting DocumentsI could not locate any supporting documentation for the payments to AST Ventures.All but three of the cheques to AST Ventures were signed by both Danish I ~ u t t and latinderAtwal or Yasser Ahmad. Three of the c h e q u e ~ s datecl Al1gust 3, 2006, each for $4,240, wereonly signed by Yasser Ahmad. This contravenes the KSA Regulations, which required threesignatures on all cheques above $3,000.

Section VIII, Article 1.7 of the KSA Regulations states:"Cheques and other ofjicialfinancial instruments dealing Yi'ithexpenditures shall be signed by !li'o (2) si,gning ofjicers, once theappropriate level ofauthority has tlpproved the expenditure.However, if the cheque or other ofjicialfinancial instrumentrepresents an expenditure of three thousand liollars ($3000.00) ormore, it shall require the signatures of three (3) signing ofjicers. "

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I I I email correspondence with me, Mr. Takhar states that this was a mistake on thepart of the KSA.

6.8 New Concept Renovators and Mohammad "Elijah" Hussain.The KSA overpaid New Concept Renovators $897 and made $16,676 in estimatedunsupported payments to Mohammad Hussain, Corrunercial Services Manager for the KSA.New Concept RenovatorsThe KSA paid New Concept Renovators ("New COllcept") $11,879 in September 2006 (seeSchedule 2) for the following:

Tinting the KSA cafe windows ($3,841); Counter tops for the cafe ($3,022); Re-upholstering the bar stools in the cafe ($1,043); Purchase/installation of new blinds in the cafe ($2,035); and Installation of a new screen television al1d projector in the cafe ($1,938).

David Borins provided me with the affidavit of Desmond Rodenbour dated January 23, 2007.From Mr. Rodenbour's affidavit, I understand that a different company called NewindowFilms Ltd. ("Newindow") actually performed the tinting of the KSA cafe windows. I furtheruIlderstand that Newindows has invoiced New Concept for $2,944 but has flot been paid;however, I found New Concept invoiced the I < ~ S A $3,841 for the same work. The KSA wasovercharged by $897.

Tinting charged on New Concept Rerlovators invoice $3,841Tinting charged on Newindow Films Ltd statemlent i.2,944Overpayment by the KSA i 897

Mohammad Hussain is listed as a partner in New COllCel)t Renovators on a Statem.ent ofRegistration of General Partnership or Sole Proprietorship document filed l ~ p r i l 13, 2006 withthe Registrar of Companies.Tile overpayment by the KSA for window tinting calls into question the legitimacy of theother amounts charged on the New Concept in'voices, in particular the installation charges. Iwas unable to determine who perfonned the work identified on the New COIlcept invoices and

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whether the work had been completed since there was no documentation, other th.an the NewConcept invoice.I attempted to contact Mohammad Hussain for an interview. I was able to contact Mr.Hussain's father but I never heard directly from Mohammad Hussain. Mr. Hussain's namewas included on a group en1ail sent to me by .Aaron Takhar (see Appendix. T).Mohammad Hussain

I understand that Mohammad Hussain is also known as Elijah.The KSA has made estimated unsupported payments of$16,676 to Mohammad Hussainduring the period September to November 2006, calculated as follows:Payments to Mohammad Hussain (see Schedule 2) $25,649Estimated amount due to Mohammad Hussaill (see l)elow) $ 8,973Estimated Unsupported Payments to Mohanunad Hllssain $16,676' - - - - - - - - = - = - - - - ~ - - - - - - - - - - - - - - - - - - - - - - - ~ ~ ~ ~ Mohan1mad Hussain was the Commercial Services Manager from approximately September 1,2006 to October 31, 2006, when he was put on paid leave.I understand from Desmond Rodenbour, actirLg in his Cllrrent position as General Manager,that during an interview with Mohammad Hussain, Mr. Hussain advised that he did not signan employment contract with the KSA. In oreier to t ~ s t i m a t e the amount due to MohammadHussain for his services to the KSA from September 1 to October 31, 2006, I considered theemployment contract for Desmond Rodenboulr, when he was working as the commercialservices manager in 2003.I estimated the amount due to Mohammad HILssain as $8,973. I calculated this amount usingthe base salary of$46,509 in Desmond Roderlbour's 2003 KSA employment contract,increased by 5% per year and prorated for the 2 months September 1 to October 31, 2006.I could not locate any expense reports for Mo]hammad I-Iussain or Elijah. The abovecalculation includes all the payments to Mohammad Hussain from Janllary 1 to October 31,2006 (see Schedule 2). It is likely that some paymerlts may be expense reimbursen1ents butthere was no supporting documents, such as e:xpense reports with the origin.al receiptsattached, to identify these payments.I also note on Schedule 2 that Mohammad Hussain was paid $8,498 (includ.ed in the total paidof $25,649 above) on October 31, 2006. This is the last day that the Prior C:ouncil had controlover the KSA's finances.

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On Schedule 2 I also include a cheque addressed to .AkifHussain for $7,588 dated August 10,2006; the back of the cheque has the name "lv1uham:ma


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maintaineli. Member of the current ksa[sic] may very well have deliberately misplaced,m i s h a n d l e ~ 1 or Destroyed [sic} the Documents [sic] in Questions [sic}.. " Mr. Ahmad statesthat the proper records were maintained by the KSA, however, as discllssed in Section 4above, I could 110t locate many of the standard accounting documents ..

6.10 Danish IluttThe KSA tnade estimated unsupported payments of$20,893 to Danish. Butt from January 1 toOctober 31, 2006, calculated as follows:Paid to Da:nish ~ B u t t by the KSA:Cheques out of the KSA Operating Account ( S c h e d u l e ~ 6) $11,092Payroll payments through Ceridian (gross wages) $31,510

$42,602Alnount D ~ u e to Danish Btltt:Estimatecl Salary as Executive Ad.visor (January 1 to F ~ e b r u a r y 2) $ 1,946Estimated Salary as President (February 3 to October 31) $18,329Expense ] ~ e p o r t Reimbursement LlA34$21,709Estimated Unsupported Payments to Danish Butt mB21Danish Butt was elected President of the KSA and took office on February 3, 2006. Prior tothat I understand that Mr. Butt was employed as the E X t ~ c u t i v e Advisor of the KSA ..

The KSA Regulations provide the I ~ x e c u t i v e Board witll bi-weeklyrenlurleration of$412.The Board ofDirectors passed a resolution on June 6, 2005 increasing the Executive Boardmembers r t ~ m u n . e r a t i o n to $750 bi-,;veekly and $850 bi-\veekly for the ( ~ h a i r p e r s o n . IThecurrent COllncil located amended regulations of the KSA Regulations dated Janua!)' 6, 2006providing bi-weekly remuneration to the Executive Board of$953.In the calculation above I d e t e r m i n t ~ d the amount due to Danish Butt as follows:

I understand that Danish Butt took office as President on February 3, 2006; I calculatedMr. But t's salary as Preside]lt from Febnlary 3 to October 31, 2006 at $953 biweekly,; I understand that Danish Butt was employed by the KSA as the Executive Advisorfronl January I to February 2,2006. Based on the payroll records with Ceridian(pa)rroll service to the KSA), Mr. Butt was paid $720 biweekly to January 20, 2006and $923 biweekly from Jan.uary 21 to March 31, 2006. I calclliated Mr. But t's salary'as Executive Advisor from January 1 to Februar)T 2, 2006 using the bi-weekly salary inthe C:eridian records; and

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I located one expense report for Danish Butt in the amount of $1,434.16 with a date ofAugust 16, 2006. The expense report did not have any evidence of signed approvaland also included an amount of $1 ,000 dated August 16, 2006 described as "Float forCFS provincial meeting". There were no receipts attached. The cheque paid to DanishButt for this expense report was dated August 10, 2006 (before the date on the expensereport), so it appears the expense report was completed after Mr. Butt was already paidfor these expenses.

I reviewed the cheques paid to Danish Butt by the KSA (see Schedule 6) and found 5 chequesthat were addressed to Danish Butt and signed only by Danish Butt. This is a serious internalcontrol issue. The payee and signatory on a KSA cheque should not be the same person; at aminimum there should be two signatures on the cheque when one of the signatories is thepayee. KSA cheques with only one signature are in contravention of the KSA Regulationsthat require two or more signatures on all cheques.It is likely that some payrnents on Schedule 6 may be expense reimbursements but there are nosupporting documents, such as expense reports witll the original receipts attached, to identifythese payments.I attempted to contact Danish Butt for an interview. Mr. Butt refused an interview with mebut was included in a "Group Response" sent to me by email correspondence from AaronTakhar (see Appendix T). Since Mr. Butt refused an interview, I asked him to submitcomments on the January 25, 2007 interim reporting letter ofPwC; but I did not receive an.ycomments from Mr. Butt (see Appendix V).

6.11 Jaivin KhatriThe KSA made estimated unsupported payments of $1 0,997 to Jaivin Khatri from January 1 toOctober 31, 2 0 0 6 ~ calculated as follows:Paid to Jaivin Khatri by the KSA:Cheques out of the KSA Operating Account (Schedule 7)Payroll payments from Ceridian (gross wages)Amount Due to Jaivin Khatri:

Estimated Salary Vice President Internal Affairs (January 1 to October 31)

$10,038$21,509$31,547

Estimated Unsupported Payments to Jaivin Khatri $10,997Jaivin Khatri was re-elected as Vice President of Internal Affairs of the KSA on February 3,2006.In the calculation above I determined the amount due to Jaivin Khatri as follows:

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I used a bi-weekly pay of $750 from January 1 to 6 and a bi-weekly pay of $953 fromJanuary 7 to October 31. As discussed in 6.10 above, an amendment to the regulationsof the KSA dated January 6 2006 provided bi-weekly remuneration of $953 tomembers of the Executive Board.

I reviewed the cheques paid to Jaivin Khatri by the KSA (see Schedule 7) and found 4 chequesthat were addressed to Jaivin Khatri and signed only by Jaivin Khatri. As discussed above,this is a serious internal control issue and a contravention of the KSA Regulations.It is likely that some payments on Schedule 7 may be expense reimbursements, but there areno supporting documents, such as expense reports with the original receipts attached, toidentify these payments.I attempted to contact Jaivin Khatri for an interview. Mr. Khatri never responded to myrequests for an interview but was included in a "Group Response" sent to me by emailcorrespondence from Aaron Takhar (see Appendix T).

6.12 Jatinder AtwalThe KSA made estimated unsupported payments of$9,017 to Jatinder Atwal from January 1to October 31, 2006, calclliated as follows:Paid to Jatinder Atwal by the KSA:Cheques out of the KSA Operating Account (Schedule 8) $13,313

Payroll payments from Ceridian (gross wages) $16,254$29,567Amount Due to Jatinder Atwal:Vice President Internal Affairs January 1 to October 31, 2006 $20,550Estimated Unsupported Payments to Jatinder Atwal $ 9,017Jatinder "Joey" Atwal was re-elected as Treasurer of the KSA on February 3, 2006.In the calculation above I determined the amount due to latinder Atwal as follow'S:

I used a bi-weekly pay of $750 from January 1 to 6 and a bi-weekly pay of$953 fromJanuary 7 to October 31. As discussed in 6.10 above, an amendment to the regulationsof the KSA dated January 6,2006 provided bi-weekly re

Kwantlen Student Association (KSA) - Forensic Audit - July 23, 2007

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