Pride Toronto repaying over $505K after federal grant controversy

Pride Toronto is repaying just over $505,000 in grant funding after an accounting firm found the organization could not prove that it completed several projects despite receiving $1.85 million from the federal government.

In a statement sent to CBC News, Pride Toronto Executive Director Sherwin Modeste said the organization is repaying $505,504 total to the federal department of Canadian heritage.

This comes after KPMG, which was hired by the organization in 2021 to review its compliance with agreements for three federal grants, found that documentation was lacking.

Pride "encountered challenges in locating supporting documents for certain expenditures spanning the years 2017 to 2021," Modeste said in his statement.

"It's important to note that since that time, we have implemented significant improvements in our financial practices since the KPMG report to ensure transparency and accountability," he said.

In a statement, Canadian Heritage spokesperson David Larose said the government is "satisfied with Pride Toronto's response to the audit," adding that the organization still owes a balance of $424,780.63. 

Modeste, meanwhile, said Pride had paid back slightly more than that, with $100,000 of the $505,504 already paid. 

Pride Toronto received $600,000 from the Department of Canadian Heritage in 2019 to organize an exhibition of Indigenous two-spirit artwork and $1 million from Public Safety Canada in 2018 to develop community safety strategies for LGBTQ+ communities. 

The organization also received $250,000 from the Department of Canadian Heritage in 2018 to develop bilingual tools to tell the story of the 50th anniversary of the decriminalization of homosexuality in Canada.

"A key condition of the grants was that Pride Toronto should use the funding to deliver certain outputs and reporting to the funders," KMPG said in its review. "Pride Toronto could not provide some evidence to show that they had completed several of the proposed deliverables."

In January 2022, Pride Toronto cancelled its grant with Public Safety Canada and the organization received only $1.2 million in federal grants due to the cancellation, Modeste previously said.

Tom Hooper, an assistant professor in the department of equity studies at York University, accused Pride Toronto of "misdirection" of funds in a 2022 investigative report that he said highlighted problems with organization's grant applications, as well as inconsistencies in how it reported progress to the federal government.

The organization had also been accused of using Indigenous artist Kent Monkman's name to obtain grant funding.

"This is a huge financial penalty for Pride Toronto and it is unprecedented in 2SLGBTQ history," Hooper said in a statement. "And yet, it appears Pride's misuse of various organizations' letterhead and signatures still has not been investigated by the Department of Canadian Heritage.