Alberta Government Initiates Forensic Audit of Chestermere’s Financial Affairs

In a bid to shed light on lingering financial concerns within the heart of Chestermere, the Alberta government has sanctioned a comprehensive forensic audit of the City’s financial operations, further delving into the controversies that have arisen during the tenure of the recently ousted Mayor, Jeff Colvin.
The relentless pursuit of accountability in municipal affairs has been set in motion by Municipal Affairs Minister Ric McIver, who formally initiated this inspection just last week. Remarkably, this marks the second extensive investigation into Chestermere’s municipal dealings within a mere two-year span—the previous inquiry culminated in the removal of Colvin, half of the city council, and three prominent city officials just last month.
Deloitte, a reputable auditing firm, has been entrusted with spearheading this in-depth probe. Their primary focus will be on the city’s financial transactions, spanning from the last municipal election on October 18, 2021, to the series of dismissals that unfolded on December 4, 2023.
Minister McIver underscored the gravity of this action, stating, “An inspection is an extraordinary measure that is not undertaken lightly. I am aware this is the second inspection the city has undergone in two years; however, I consider it to be necessary to address identified concerns with the financial management of the city.” This sentiment was expressed in a letter dated January 19, directed to the official administrator, Doug Lagore, who has taken up the mantle of Chestermere’s city council after overseeing the beleaguered city government for over a year.
The minister had made assurances of a thorough financial examination while announcing the dismissals last month. In a statement released on Tuesday, McIver’s office confirmed that this inspection, which was prompted by concerns over financial irregularities raised by Lagore and a careful assessment of the city’s financial reporting by Municipal Affairs, is now underway.
Scott Johnston, McIver’s press secretary, provided insights into the audit’s scope, explaining, “The inspection will scrutinize various aspects of the city’s financial landscape, including its policies, reporting mechanisms, internal controls, and governance. Furthermore, it will encompass an examination of expenses incurred by the chief administrative officer and the city council, as well as the city’s practices in hiring and procurement.”
Of particular interest within this financial examination are the credit card statements of former Mayor Colvin. Documents presented in court last month revealed that the former mayor had accrued a total of $8,651.83 in charges on his city-issued credit card. Notably, Colvin had dined out a staggering 84 times between March and June 2023, the only period for which information has been publicly disclosed. Questions have also been raised by the province concerning city expenditures and the state of financial documentation.
Furthermore, the city faced challenges in submitting its audited financial statements for the past two years, partially stemming from a dispute with its former auditor, KPMG, in late 2022. This dispute had escalated to the point where the city had threatened legal action against the auditing firm.
Anticipated to be unveiled to the public before the upcoming byelection, the findings of this financial review will be eagerly awaited. Chestermere’s administration has vowed full cooperation with the investigation.
Minister McIver articulated his intentions for this audit, stating, “It is my intent that this inspection will provide the city with valuable feedback regarding the appropriateness of its financial controls. Furthermore, it will offer additional clarity to the public regarding the financial standing of the city, in preparation for future byelections. This level of transparency is vital in ensuring that our residents are fully informed and have confidence in the measures being taken to establish effective governance and management.”
In response to their dismissal, Mayor Colvin and former councillors Stephen Hanley, Mel Foat, and Blaine Funk have affirmed their intentions to participate in the upcoming byelection should their ongoing legal challenges prove unsuccessful. They have vehemently rejected the province’s allegations against their government, characterizing them as false and biased. Allegations of misinformation and conspiracy against them have also been raised.
The specific date for the byelection is yet to be determined, with vacancies present for the mayoral position and four councillor seats. One of the three councillors spared by the province’s directive, Sandy Johal-Watt, has since resigned. However, Councillors Shannon Dean and Ritesh Narayan are expected to resume their council roles following the byelection.