Regina's REAL required to pay feds $8M after CRA audit of pandemic relief program

A City of Regina memo posted on social media shows that Regina Exhibition Association Limited (REAL) will be required to pay the federal government $8 million in wage subsidies stemming from a 2020 pandemic relief program it applied for.

The memo says that after the Canada Revenue Agency (CRA) completed an audit of the funding given to the organization through the Canada Emergency Wage Subsidy (CEWS), it was determined that REAL and Economic Development Regina (EDR), who also applied for the program, were not eligible and all the money provided to them along with interest will need to be repaid.

CEWS was a program introduced by the federal government in 2020. It was intended to help businesses affected by required shutdowns and restrictions during the pandemic pay and retain employees.

An email sent to CTV News from the City of Regina on Friday afternoon confirmed the leaked memo, that was shared on X (formerly Twitter), was legitimate.

“This a legitimate internal document that was shared with City Council in advance of the upcoming Audit and Finance Report on April 9th to make them aware of the audit findings in the report that is to be released this afternoon for the public agenda,” the city's email read.

The memo says the CRA’s decision stems from the ownership structure of REAL and EDR.

“These entities are solely owned by the City through Unanimous Membership Agreement. Similar organizations across the country were also required to repay the funds,” the memo says.

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According to the memo, REAL used the federal dollars provided to support ongoing operations through the pandemic.

That included supporting the Saskatchewan Health Authority’s (SHA) drive-thru COVID-19 test and vaccination centres that were located on REAL grounds.

“The funds helped REAL provide sport & [and] rec opportunities to the community and the safe entertainment options such as parking lot events,” the memo says.

According to the memo, REAL also performed maintenance, deep cleans and upgrades to some of its buildings, “at a time when they were not fully utilized.”

The memo says the money owed by REAL is $6.5 million before interest and $8 million after. EDR is required to pay $755,000 before interest and $918,000 after.

“Both of the organizations are currently considering options on how they will fund the repayment,” the memo says.

The memo also indicated that city administration is currently working with both organizations on repayment options that will be presented to city council in the second quarter of 2024.