REGINA - It looks as if REAL District is on the hook to repay pandemic wage subsidies of $8 million, according to city memos made public this week.
According to details from a memo released on Friday as part of the agenda for Regina's Audit and Finance Committee meeting happening this Tuesday, the city confirmed that Canada Revenue Agency recently completed their audit into the Canada Emergency Wage Subsidy Program in relation to REAL as well as Economic Development Regina.
It was determined both REAL and EDR must pay back wage subsidies of $8 milllion, and $918,000, respectively. That is $8.5 million and $755,000 before interest.
The funds were received under CEWS during the pandemic. According to the city memo, requests to waive the interest have been made by both organizations but these service level partners will likely seek assistance from the City in order to repay the Canada Revenue Agency.
The city memo also noted that while not expected to impact the 2023 General Operating Fund financial results, this will impact the 2023 consolidated financial results and potentially the 2024 General Operating Fund results, depending on decisions council may make in 2024 to financially support REAL or Economic Development Regina. The city memo also states a separate report will be brought forward for council consideration later this spring.
A separate memo dated April 5 from City Manager Niki Anderson has also circulated on social media stating the same figures. According to this memo, the CRA decision that the funds needed to be repaid stemmed from the ownership structure of REAL and EDR, which are solely owned by the City through a Unanimous Membership Agreement. Anderson’s memo further stated that administration is working with the organizations to bring a report to Council in the second quarter of 2024.
