2.10	Determine the funds released from the City to CHAA in the current lease period, the nature of the allocation and the Auditor General powers thereover.	IA inquired with management regarding funds released from the City to CHAA in the current lease period and noted that for the current lease period i.e., 2015 to 2019, CoW has paid $235,000.The annual amount of $50,000 was approved by Council in 2016. Prior to this approved amount from previous years was less than $50,000.IA inspected the Financial supporting documentation for the payments made to CHAA.The funds allocated from the City to CHAA are a City Operating line item. The funds are not administered via the grant process at the City and as such the Auditor General, under the associated powers outlined in the Municipal Act, does not have authority to conduct audit work related to the use of these funds by CHAA.

Conclusion: The City is providing rental space to Canadian Historical Aircraft Association (CHAA). CHAA is restoring the Lancaster using funds raised by the CHAA. The City provides funding to CHAA up to $50,000 per annum to cover lease and other utility type costs, not to fund restoration activities. The restoration is in progress and a 3rd party has provided perspective on that restoration indicating that, while significant work remains, the restoration elements communicated to City Council correspond to the condition of the aircraft and are in line with its intended use. Two key components of the restoration are (1) available funds and (2) volunteer time. With both of these items being hard to forecast the City would be challenged to define a formal restoration timeline or plan. As for missing parts, our focus was on the specific allegation in #1 (stablizers). As the investigators are not aeronautical engineers, and given the age of the plane, it is not possible for us to ascertain if parts are actually missing. However, two mitigating factors were noted: 1. an independnet review of restoration progress engaged by management and the stewardship agreement that was in force and that both parties show behaviours of operating under. As such, parts, if missing, would still need to be provided by CHAA as part of the restoration to the intended use - if they were to be missing.

We noted that while historically there was a legal agreement between CHAA and the City as to the restoration and stewardship elements there is currently no formal agreement in place. Both parties appear to be operating as if the original 10 year agreement was extended.