Deloitte Audit Clears Procurement Issues in Calgary

Lucas Gilmore, “Big 4″ observer
February 11, 2011 /

CALGARY, Canada – Contrary to the initial report by city auditor alleging impropriety in the city hall’s procurement process, consultants from Deloitte found that there was no evidence of fraud and that city officials have handled the issues accordingly.

City auditor Tracy McTaggart alleged in an audit report that the procurement process has been tarnished by impropriety and that the municipal contracts of Calgary were improperly awarded. McTaggart claimed that the documentations connected to the contracts and projects between 2005 and 2009 were missing.

Furthermore, the city auditor said she found problems with the 740 purchasing orders, which allegedly increased by more than half to $747 million.

However, city manager Owen Tobert denied the report of McTaggart, saying the report was not complete and was fraught with errors. The city auditor was then relieved of service two months after a separate evaluation that challenged her other reports found lapses on her part.

When Deloitte conducted its own audit, the issues about the procurement process and awarded contracts turned out to have been handled properly by city officials, although Deloitte’s report found slight indications of noncompliance with procurement rules.

“Deloitte has carried out their investigative review and they will be discussing their findings with Council. I have just received the report, and following my first review of the findings, I am satisfied this report should bring closure to any outstanding concerns, subject to Council’s acceptance of the report,” Tobert said in a statement.

Meanwhile, Deloitte has advised the city to work closely on any procurement process issues to avoid oversight of responsibilities.


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