The TNRD board members listening to BDO Canada's forensic audit highlights on Thursday (Image Credit: CFJC Today)

By Chad Klassen

TNRD FORENSIC AUDIT

TNRD relieved spending details revealed, knows there’s work ahead to regain public’s trust

Dec 17, 2021 | 10:21 AM

KAMLOOPS — For a couple hours on Thursday, the TNRD board sat and listened to BDO Canada outline the ‘inappropriate culture of spending’ that came to be under former CAO Sukh Gill.

Board chair Ken Gillis said it wasn’t easy to listen to, but there’s a sense of relief now that it’s out there.

“We’ve been anticipating the result of this forensic audit for some considerable time. We had it extended at least twice, perhap it was three time, so it’s good to have it over, it’s good to have the results,” said Gillis. “No, it wasn’t an easy day, but it was a day we knew was coming and it was a day we knew we would have to deal with.”

The TNRD has been dealing with the fallout of Gill’s overspending for nearly a year since a Kamloops This Week investigation at the time revealed the former CAO racked up more than $500,000 of credit card bills.

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During the audit presentation on Thursday, it was revealed that Gill spent more than double, and in some years triple, from 2015 to 2019 compared to his counterparts elsewhere in B.C.

BDO Canada analyzed more than 12,000 documents during the audit, looking into $755,000 in spending. His most visited restaurant revealed on Thursday was Nandi’s Flavours of India, where he spent more than $27,000 over five years. Ninety per cent of the receipts there were not itemized, compared to 26 per cent of the overall spending. The public also learned Gill purchased $6,400 worth of gift cards.

Current CAO Scott Hildebrand didn’t expect the amount of detail in the report that was provided by BDO Canada.

“The detailed analysis and how deep they went, and rightfully so,” said Hildebrand. “I think this is important for our constituents to know exactly what happened, and again that will come out in the full report. But for me, I was excited to see the recommendations. There’s going to be a lot of work ahead of us.”

The recommendations were laid out in five parts, including a “Zero Tolerance Tone” from the top, ensuring there are policies in place to crack down on overspending.

It also recommended a whistleblower program to allow employees to express concerns without fears of retribution, and it’s suggested there be internal audits of spending in the future.

“We should expand the scope of our audit committee and I’m sure the steps along those lines will be taken right away, but we will act on [the recommendations] for sure,” said Gillis.

Changes were made immediately after the Kamloops This Week report came to light, including a reduction of the CAO’s credit card limit from $30,000 to $5,000. Alcohol is now no longer allowed to be expensed by TNRD staff or directors.

Hildebrand knows it’s going to take more than a forensic audit to gain the public’s trust again, but he’s determined to make the necessary steps to do it.

“It starts with our team and the expectations I have of our administrative team. I think the board is very aware of what happened in the past and I think together we can move forward to ensure there’s transparency and accountability throughout the entire organization,” said Hildebrand. “For me with my team, it’s about inspecting what I expect and that’s kind of the tone throughout the organization and throughout our senior management.”

The TNRD says the public can expect the full forensic audit report early in the new year. Hildebrand is pushing for January. The regional district hasn’t released the full report due to legal reasons.

Directors called by CFJC Today wouldn’t speak to the audit due to concerns of possible legal action.