Korean Association Audit Report

 

(November 18, 2023)

 

 

 

Kim Jae-kyoung, President of the Korean Association

 

 

 

(2022. 10. ~ 2023. 9.)

 

 

 

 

 

Korean Association Auditor Choi  Woon-ha

 

 

 

First, in order to present a settlement plan at the general meeting based on the bylaws, prior approval from the Korean Association auditor and me is required. Submission without approval is invalid.

 

We will conduct an audit of the audit data received for the period from October 2022 to September 2023 as follows and inform you of the results.

 

1. Subject to accounting audit for the relevant period

 

    - Korean Association President: Kim Jae-kyoung

 

    - Head of Finance: Park Seong-jang

 

 

 

2. Audit of location payment account: Suspension of audit

 

    - Refusal to submit meeting minutes and member list (impossibility to determine accuracy of amount or legality of expenditure)

 

    - Evidence of expenditure appears to have been submitted faithfully, but was discontinued due to refusal of audit.

 

    - Transfer $60,000 of the balance of the location payment account to the development fund.

 

 

 

3. Audit of scholarship fund account: Suspension of audit

 

 

 

    - Check history of scholarship fund account: There was definitely no misappropriation of public funds by Kim Jae-kyoung.

 

      * This is the result of confirming the existence and increase/decrease of the account balance from December 2014 until recently.

 

 

 

    - Some questions regarding the scholarship fund account: Confirmation is not possible due to the suspension of auditing, and if confirmation from the bank is required, absolute assistance from the current Korean Association is required.

 

      * 2022. 8. 11. Korean Association Scholarship Fund Account Bank Signing Officer changed (President: Cho kyuhyon, Treasurer Kim Jae-kyoung), the basis for the change could not be confirmed (change is not possible if the bank requested the latest Company Offices data - confirmation by the bank) (required)

 

      * 2022. 9. 12. Visit to TD Bank by then-Korean Association President Yang Ki-gug: Change of Signing Officer (Yang Ki-gug, Kim Hyeong-tae) of the Korean Association's account and confirmation of account in the name of the Korean Association (unintelligible as it was confirmed that only the deposit account exists, but with the bank's cooperation) Re-confirmation required)

 

      * 2022. 9. 27. Scholarship fund account withdrawal in the names of Kyuhyon Cho and Jae-Kyoung Kim (since the Signing Officer change has already been registered as Ki-Gug Yang and Hyeong-Tae Kim, withdrawal under that name is incomprehensible. Signing Officer records must be reconfirmed with the cooperation of the bank)

 

      * On October 13, 2022, an email was received from a TD Bank manager confirming that there were no additional accounts other than the location payment account (unintelligible, re-confirmation required with the bank's cooperation)

 

 

 

      ☞ When issuing bank checks at TD Bank, even if it is an organization, the Purchaser must only issue it in the name of the organization's Signing Officer, which added to the confusion (CIBC and Scotia Bank issue it in the name of the organization).

 

 

 

    - Transfer $40,000 of the balance of the scholarship fund account to the development fund.

 

     

 

4. Request for audit data and granting opportunity for explanation

 

    - 2023. 11. 7. Email requesting additional data required for audit

 

    - Email sent on November 8, 2023 with the date and location of the meeting for explanation (Korean Community Center on November 14, 2023)

 

    - 2023. 11. 14. Jae-kyoung Kim, Byeong-cheol Jo, and Seong-jang Park attended but refused audit (Attachment: Notice)

 

    - 2023. 11. 15 ~ 16: Submission of some data (related to scholarship fund)

 

 

 

5. Final audit opinion: Unable to audit (declaration of inability to audit)

 

    - The audit was refused, and the audit cannot be conducted solely with the submitted data.

 

 

 

6. Illegality of extraordinary general meeting (May 6, 2023) and others

 

    - Expulsion of members not stipulated in the by-laws: invalid.

 

       * Restoration to original condition (reinstatement of members and Korean Association board of directors)

 

    - Lack of publicity for notice of holding extraordinary general meeting

 

       * There was no notice posted at the meeting location.

 

       * There was no notification or guidance to auditors and other related parties.

 

    - Former Korean President Cho Kyuhyon joins the board of directors: There are problems.

 

    - Problem of revision of by-laws: The by-laws must be notified in advance before and after the change.

 

    - Failure to submit Criminal Record Checks

 

 

 

Attachment: Notice

 

end.

 

 

 

 

 

Notice

 

 

 

The decision has been made as follows and I am hereby notified of this fact.

 

 

 

1. Woonha Choi seriously violated the security principles of the audit data provided, which is most important as an auditor. The data provided for the audit was provided to an unqualified external organization without permission, and the data was shared with a person who was not qualified to audit.

 

 

 

2. Woonha Choi is not qualified to carry out the work assigned to the auditor. The reason is that, as an auditor, he showed himself unqualified by asking others for help with tasks that he should have performed myself.

 

 

 

For this reason, at the board of directors meeting held on November 11, 2022, it was determined that Mr. Woonha Choi did not have the qualifications and ability to perform his duties as an auditor, and the board of directors decided to suspend Auditor Choi Woonha from his duties as an auditor.

 

 

 

Accordingly, the Korean Association of Manitoba notifies Woonha Choi that his audit duties have been suspended in accordance with the decision of the Board of Directors.

 

 

 

November 14, 2023

 

Manitoba Korean Association