Saskatoon Lighthouse, board members battle in court about financial control – Saskatoon

Saskatoon Lighthouse representatives are still fighting in court after two members of the board filed affidavits and sought an interim trustee.

Jerome Hepfner and Twila Reddekopp allege that Lighthouse’s board is not making decisions in the organization’s best interests.

Hepfner and Reddekopp are co-managers of Lighthouse, replacing executive director Don Windels after he took leave.

The pair were removed from positions last month.

They now want their accounting firm, NMP LLP, to temporarily control the organization’s finances and handle any issues that arise.

In Saskatoon state court on Tuesday, NMP LLP questioned whether they even had the authority to assume such a role and what would happen to the company’s job as interim trustee.

Lighthouse sought a supplemental order that the current board, including Heppner and Redekop, resign and an entirely new board be elected.

The lighthouse has recently faced funding cuts, fire and building code violations, and board members using lighthouse funds for personal loans.

Court documents show that Windels received $287,000 in personal loan shelter funds between 2008 and 2013.

Some of these have been recorded and approved by the board, but there is little to no evidence of board approval of the $60,000 loan Windels requested so he could buy a home for his daughter.

Reddekopp claimed this was hidden from the board. Windells disagreed.

Lighthouse eventually purchased the property, paid the utility bills, and named the property as a capital asset.

Windels was temporarily dismissed and replaced by Hepfner and Reddekopp.

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Recently, the lighthouse faced the financial burden of 42 different fire violations identified by the Saskatoon Fire Department.

Last winter, the lighthouse was dealing with frozen pipes, burst sprinklers, and back-up sewers. At this property, the sink broke and the water heater failed during the coldest time of the year.

In the event of a similar event in the future, beleaguered shelters will have to contend with funding cuts brought about by distrust from the Saskatchewan government.

In the summer of 2022, the decision by Social Services Minister Gene Makowski, local MLAs, and community leaders to suspend homeless assistance services at the facility after highlighting concerns about Lighthouse’s inability to produce a large number of financial records was dropped.

The state government has raised over $100,000.

In September 2022, the lighthouse officially announced that it would close the beds it was providing after the government began withholding funds.

The bed was then transferred to the Salvation Army and Wellness Center.

Wayne Pederson, an attorney representing Affinity Credit Union, confirmed that Lighthouse only has $43,000 left in its open credit line, insufficient to cover future payments to its employees.

Affinity Credit Union said it will step up and help Lighthouse cover costs, but only if it supports Hepfner and Reddekopp.

Pederson suggested that one of the only ways to cover the debt would be to sell the Lighthouse assets.

The parties tried to reach an agreement on Tuesday to keep the credit union happy, but were unable to do so.

Lighthouse representatives requested an extension to get back on the new deal.

The judge issued a preservation order, preventing layoffs, destruction of records, or sale of assets before the trustee’s decision was made unless four of the five board members approved it.

Both parties are scheduled to appear in court again on Friday.

— Using files from Ryan Kessler of Global News

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