Thursday, June 17, 2010

City Administration and City Auditor agree no Fraud Found in Procurement Audit

In a meeting of The City’s audit committee today City Auditor Tracy McTaggart stated that her audit of The City’s procurement processes found no fraud. The audit initially went to committee on May 20, 2010.

“The audit report does not raise allegations of fraud, I did not say that we had found fraud, I said we have a number of matters related to procurement under investigation in the whistleblowers program,” said McTaggart.

After The City Auditor’s report on May 20, The City’s Chief Financial Officer, Eric Sawyer, led a review of over 600 procurement purchase orders and files that were part of the City Auditor's review, covering the period of January 2006 through April 2009. All Whistle-Blower Program files from inception of the program to May 20, 2010 were also reviewed, based on information provided by the City Auditor.

Sawyer’s review also found no evidence of fraud.

“There was no evidence of fraud found in any of the files that were looked at by The City Auditor,” said City of Calgary Chief Financial Officer Eric Sawyer.

While agreeing that no fraud was found, both the City Auditor and City administration agree that there are steps that need to be undertaken to improve The City’s procurement processes.

To further review The City’s past procurement processes, Council approved the City Manager’s recommendation to bring in external auditors to look at high-risk procurement files, which are those files where substantial dollars are at risk and those that warranted further analysis.

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