By Kerri-Anne Mesner
THEfinancially distressed Sydenham Community Centre has been taken over by Brimbank City Council after two recent audits found the centre’s committee was operating while insolvent.
The council put in one of its employees to run the community rooms at the centre, while the Brimbank Preschool Association (BPA) took over the long-day childcare operations on Monday.
Brimbank councillor and community centre manager Marilyn Zukalski resigned from the centre on Thursday and it is believed the centre’s committee was in the process of winding up.
The centre’s management committee president, Lina Vermeulen, said the committee was grateful for the work Ms Zukalski had done during the 10 years she worked there.
She said the committee was in the process of winding up and working with the council for a smooth transition.
The childcare centre and community rooms shared the one committee.
The centre’s management committee made a $61,000 emergency funding request on 26 June.
Council rejected the request until the committee provided further information.
“We jut wanted BPA to take over the childcare,” Ms Vermeulen said. “Council decided to take over everything.”
The centre’s committee last month stated it would owe $195,000 by the end of the financial year.
The council and the Department of Planning and Community Development both carried out audits in recent months, with the State Government department’s audit completed recently.
Brimbank City Council’s chief executive officer, Nick Foa, told Star that the council had been informed by the Department of Planning and Community Development that it would be terminating funding to the Sydenham Community Centre from 30 September.
“In advice from the Victorian Government, the cancelling of funding is attributed to ‘serious issues about the accounting and management practices of the centre and its financial viability due to insolvency’,” he said.
“Findings from the Victorian Government’s independent audit of the centre correlate with those of the independent auditor provided by the council.
“The auditor found that ‘the centre is not financially viable into the financial year ending 30 June 2008’. Further, the auditor has cited the committee of management as insolvent.”
Mr Foa said council’s number one priority throughout this process has been to ensure the provision of daylong childcare was maintained.
He said the Brimbank Preschool Association, which already managed 15 preschool centres and five childcare centres, took over the childcare operations from Monday 13 August.
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“The council has also placed a senior staff member at the centre to work on the appropriate Neighbourhood House related activities during the transfer,” Mr Foa told Star last week.
“The second priority of the council has been to ensure staff entitlements are protected and provided for – this hasn’t been undertaken by the committee.
“The matter of provision of entitlements for previous financial years is in the hands of the Australian Taxation Office (ATO) and the council will assist where possible.”
The ATO would not comment on the Sydenham Community Centre situation.
Mr Foa said the council would help the BPA manage any shortfalls for staff that were taken on.
“The council is also working on a report detailing the costs and implications involved in bringing the centre “in-house” on a permanent basis,” he said.
Cr Zukalski told Star she had officially resigned on Thursday after working at the centre for 10 years and was looking forward to concentrating on other ventures.
“It will give me more time to be more politically now,” she said.
