Past conduct was ‘not acceptable’
Wood Buffalo commits to change after audit
On the morning after KPMG presented a scathing review of the municipality, political leaders in Wood Buffalo said they regret lapses in governance that led to questionable practices that cost taxpayers millions of dollars.
“Our reputation and our brand have suffered,” Coun. Sheldon Germain told a Wednesday news conference in Fort McMurray. “We want to send a clear message that the conduct of the past was not acceptable.
“Some of the findings are alarming, and we are committed to ensure those practices will no longer be tolerated. It might have been cheaper to do a report on the policies we have in place than the ones we don’t.”
Enlisted to do an audit in March, KPMG found policies lacking in a number of areas and made 46 recommendations to improve local government.
“There was no evidence of anything criminal, but I would say a significant number of issues were identified,” said John Stelter, a partner in the accounting firm in Edmonton. “There were more than we would expect for any organization.”
Ordered after concerns were expressed by residents, the review found the municipality had no policy regarding job performance or severance, which contributed to $7 million being paid over two years to more than 80 employees.
The audit also found no documented policies covering land acquisitions and expropriations, travel and living expenses, taxable benefits and honorariums.
In addition, policies for tenders and proposals were out of date, and changes to performance contracts were made without proper authorization.
“The political leadership and gov-
There is a lot of work to do and it’s a hard mountain to climb, but this is a motivated group that wants to serve the taxpayers
COUNCILLOR SHELDON GERMAIN
ernance structure was so fractured that information wasn’t getting to people in a meaningful way,” said Germain, chairman of council’s audit committee. “I am happy we now have a jumping-off point.
“I want to make sure taxpayers are protected and this never happens again.”
The municipality was rocked by scandals earlier this year, including revelations about severance, travel, living and housing expenses.
Three senior employees were provided with flight passes or had travel costs paid for by the municipality as part of the terms and conditions of their employment.
One manager was allowed to commute to and from another province while also receiving $10,000 in relocation expenses and a $12,000 north- ern cost-of-living allowance even though he was never a resident.
“I feel quite devastated,” Fort McMurray Mayor Melissa Blake said. “The question was raised during the election campaign and I said no, that we do not pay for staff to fly in and fly out.
“I’m not sure how it occurred, but I got the information wrong. It is an unacceptable practice for our municipality.”
Germain said council and administrators will act on the recommendations as quickly as possible.
“There is a lot of work to do and it’s a hard mountain to climb, but this is a motivated group that wants to serve the taxpayers,” he said. “It is unfortunate it go to this, but the report will serve as a bench point to move forward.”
Municipal Affairs Minister Diana McQueen said Wednesday the findings are a concern, but she believes the municipality has been provided with recommendations that address the issues that were identified.
“I’m encouraged that council is taking the appropriate steps to address public concerns and the findings of the audit by committing to implementing the recommendations and providing the public with regular updates on their progress,” McQueen said.