The review of St. Albert city council's expense claims is already sparking calls for a secondary, independent look.
The review of St. Albert city council's expense claims is already sparking calls for a secondary, independent look.
A city-staff conducted review of council's expenses – not a true audit, as the report notes, since it reviewed all the claims instead of just a sampling – was due back at council on Tuesday night.
The report, made public when the city council meeting agenda for Tuesday was posted online, reviewed the mayor's expense claims to both the City of St. Albert and the Capital Region Board for 36 months, from October 2011 to September 2014, and the six councillors' expenses for one year, from October 2013 to September 2014.
The review did not name the city staffers involved in preparing the review. City manager Patrick Draper declined an interview request for this story.
The report says there is evidence of inconsistency between policy and the actual standards practised. Many of the items flagged in the review have to do with questions of policy, like what business supplies qualify for reimbursement or whether conference-bound councillors can claim travel days.
The report calls for clarification on other policies, like whether or not fundraisers should be a council expense.
“I'm very happy with the whole process,” said Mayor Nolan Crouse. He liked the fact that it was a full review, and said the results show a need for good policy and clarification around allowable expenses.
The process was sparked after questions were raised about Crouse's expenses by Coun. Sheena Hughes, particularly mileage, with some entries being claimed as an expense to both the city and the regional board.
After debate, council opted to go with an internal, staff-led review rather than paying for an independent audit.
Crouse
Following the review, staff flagged 37 items within Crouse's $188,241 of expenses. Among those were the double mileage claims, some double meal claims and overbilling of daily meeting fees. Crouse claimed two per diems on days he attended multiple meetings. Under CRB policy councillors and the mayor can only claim one per diem per day regardless of the number of meetings attended.
But Crouse said none of the findings on the review of his expenses were surprising after the reviews last fall.
He's cross-referenced the review to the expense sheets and said that according to his math, between his errors and money that turned out to be owed to him, he'll come out with a positive balance.
“This whole issue of the CRB, I don't want to get emotional about this, but when the CRB and the city did an audit together, $48. Give me a break. This whole thought that I was doing something that was, I don't know what the right word is, but refer it to the RCMP to see if it's criminal, come on, give me a break. It's $48 difference,” Crouse said.
The report does note that the review was referred to the RCMP, and that the RCMP found no criminal investigation was warranted.
Heron
There was only one item flagged in Coun. Cathy Heron's expenses, and that was a question around travel days.
Heron said she'd have some questions ready for her council colleagues on Tuesday night, including asking why Crouse had signed off on some of the claims.
She noted there's a clear difference between what various councillors would claim. Heron said she, for instance, would never bother with claiming a coffee she'd bought as a council expense.
“It's unclear in policy and it's a different mindset,” Heron said.
Brodhead
Coun. Wes Brodhead thought the review has identified some weaknesses in the current expense policy and has some process change recommendations.
However, he has questions about how some of the recommendations would work in reality, wondering how pre-approval for a year's worth of training would work.
The audit of his expenses flagged conference travel days and a claim for paper and printer toner. He said he'd been told he could either get those supplies through the city or expense it, and since he had a different machine than the city, expensed it.
He and his colleagues don't answer to each other, though, he said.
“I've looked them over, and there's some things I wouldn't have submitted as claims, but like I say they don't answer to me, they answer to the voting public … I don't think there's anybody who can stake out the moral high ground here and pitch rocks at anybody else,” Brodhead said.
Hughes
Less satisfied with the results of the audit were Hughes and Coun. Cam MacKay, who both trumpeted the need for both an independent auditor to look at the expenses and the installation of a long-term internal auditor.
The review of Hughes' expenses resulted in items like a shredder, cellphone long-distance plan, a blanket and what the report assumed was a jacket being flagged.
Hughes said the assumed jacket was actually a briefcase she uses for council, the cellphone long distance plan was so she could call into council while on vacation outside of Canada and the blanket is under her desk in the council chambers to help deal with the fluctuating temperatures in that room.
She said that she wasn't asked for any explanations for the items during the review at all. She's concerned that more context and validation wasn't sought for expenses like meal claims.
It makes Hughes question the checks and balances in place at the city, and she said if her expenses weren't allowable, those should have been questioned when she submitted them, not months after the fact.
Crouse signs off on councillor claims and whichever councillor is serving as deputy mayor signs off on his.
Hughes said that while there are needed clarifications of policy, the errors on Crouse's expenses are “beyond just trying to interpret policy.”
“Those are things that aren't mistakes or interpretations of policy,” Hughes said.
She said she's considering making another motion to have an independent auditor take a look at the expenses.
MacKay
MacKay was also concerned about an apparent lack of checks and balances.
The review of his expenses flagged items like purchases of business supplies such as a printer, a briefcase, freedom of information requests, potential mileage and meal over claims and said some items were missing receipts.
MacKay said he always submits receipts, and between that and an expense form of his that has gone missing from the city's files, “it doesn't appear anyone's checking anything.”
He had hoped the review would take a more in-depth look at items like meal claims and travels.
He's previously said the city needs an internal auditor, and said he might make such a motion in the coming weeks. MacKay said the review might give some evidence for why one is needed.
MacKay has filed an information request with city staff about the “rationale used to determine there were no reasonable and probable grounds to lay a charges” based on the evidence in the review, news coverage and public statements.
MacKay would have preferred the RCMP review of the report had been conducted outside of the “St. Albert bubble.”
He said he's “on the fence” on whether he believes anything criminal occurred, but thinks more investigation and context is warranted. He gave the example of Crouse receiving his honorarium from the Capital Region Board through a company rather than paid to him personally as one issue needing more scrutiny.
Prefontaine
Coun. Gilles Prefontaine noted the three items flagged on the review of his claims were the result of “vagueness in policy.” The items were around pay for travel days and software purchased for his council-issued iPad.
He said the review, which identifies potential process and policy changes, shows why staff had to be involved.
“Somewhere along the line they needed to be part of the audit,” he said of staff involvement, and this review will allow the policy deficiencies to be addressed.
Osborne
Coun. Tim Osborne noted while he did vote in favour of having an independent auditor take a look at the expenses, he has no concerns about the job staff did with the review.
“It's pretty clear they've done an extensive and thorough review,” he said.
Osborne's review results saw travel days and missing receipts flagged.
He said for one of the conferences he attended a pre-conference workshop that wasn't accounted for. A missing receipt for the flight was listed, but Osborne said city staff had actually booked that flight for him and would have the receipt.
He also plans to provide receipts for the home Internet charges.
Osborne hoped now that the review is completed, council's focus would return to other issues, like growth management, a community vision and advocating during the coming provincial and federal elections.
“We've got a lot of work to do governing this community and I think we need to put our focus there,” Osborne said.
The staff recommendations in front of council on Tuesday night recommended the draft report be received for information and that each council member provide written comments on their individual findings by April 17.
If the recommendations are approved as they appear in the report, the city manager would bring the report back by May 25 for council review and new policies and process suggestions back by Aug. 31.
