City of Chestermere inspection reveals ‘irregular, improper and improvident’ financial management: province

A third-party examination of the City of Chestermere revealed “significant gaps” in the financial management, the province said Friday.

Minister of Municipal Affairs Ric McIver said a Deloitte inspection that took place from Jan. 17 to May 3, involving ;more than 10,000 items, found that Chestermere’s finances were managed in a way he described as “irregular, improper and improvident.”

McIver said the report determined that the city didn’t have appropriate tools or policies to properly log transactions or compile data, both of which are crucial to “an effective control environment.”

In one test, an inspector examined 565 council expenses submitted by the mayor and town councillors. They determined that only one was “documented, reviewed and approved in accordance with city policy.”

The other 564 were not.

He added that there were actions taken by city council and administration that didn’t follow relevant legislation or common practices, such as the mayor executing an agreement to sell municipal land without an approved council resolution.

Overall, the report made 94 recommendations and issued two binding directives to the city.

McIver said council and the city’s chief administrative officer (CAO) are required to review all 94 recommendations and provide a report to the minister on the city’s plan to address each recommendation, or explain why there won’t be action taken. The report must be discussed in an open session of council and approved by council resolution following the restoration of council quorum.

The CAO must make printed copies of the report available to the public upon request, as well as posting it on the city’s website until all directives have been met.

An official administrator is acting as council for the City of Chestermere and an interim CAO is responsible for city administration and operations. Future byelections “are the purview of the acting council and administration.”

In a press conference, McIver urged Chestermere residents to read the report.

Backstory

In February, the city abandoned an “unauthorized” judicial review into the provincial government’s report on its government that cost taxpayers $300,000.

The province's report, led by third-party inspector George Cuff, found various issues and concerns with the activities of then-mayor Jeff Colvin and his council.

The document included 12 directives for its members to follow or risk losing their jobs.

A couple months after the report was released, Municipal Affairs Minister Ric McIver's office issued a directive to remove Colvin and three city councillors – Stephen Hanley, Mel Foat and Blaine Funk – from office.