Let The Investigation Begin

DEAR READER. WARNING!!

DO NOT HOLD A CUP OF HOT LIQUID WHEN READING THIS NEXT COMMENT. YOU MAY LAUGH SO HARD THAT YOU MAY SPILL THE LIQUID AND SCALD YOURSELF.

Do you know what the Dunbar Audit of the 400 Building is now called:

• "Preliminary 400 CHS draft."

It is not even a draft now but a preliminary draft!

Poor Angela Berry, Windsor's Lead Auditor on the 400 Buuilding Audit. Can you imagine the pressure she is under. She has a law firm and KPMG looking over her shoulder all the time. In a recent report to the Audit Committee she wrote these two absolutely conflicting statements:

1. Administration has been extremely cooperative providing timely support and resources whenever requested.


2. we identified and have received a significant volume of information comprised of 11 banker boxes of physical records (data) as well as a large volume of soft (electronic) files...
   
   The 6 boxes of information reviewed to date appears to include many of the project files that we require to conduct much of the planned fieldwork and analysis.
   
   Other information suggests that the data will be helpful in answering many of the outstanding questions raised by the former City Auditor in his summary of work to date submitted prior to his retirement...
   
   This information may have a significant impact on previous tentative findings in the project management area...
   
   There is a significant amount of work that needs to be done which has been compounded by the fact that we have recently received 11 boxes of data as well as a large volume of electronic files"

Come on Angela....who forced you to write that BS about Administration or did you do it to keep your job? Get real. You just got information that Mike Dunbar asked for years ago and never received!

Here was another strange statement she made:

• "Communicated to CAO and established CAO support for conducting the requisite interviews of City Staff to complete the engagement. "

Why does she need HIS support to do internal audit interviews? He should have no role in this whatsoever.

I read this interesting comment about internal audits from the British Columbia Ministry of Finance that I thought was applicable in Windsor:

• "The purpose of an internal audit is to:
  
  --provide comfort to management that operations are well-managed, efficient, and within the bounds of applicable laws, regulations and policies;
  
  --identify weaknesses in business practices and management systems and recommend improvements; and,
  
  --identify opportunities to reduce expenditures, increase revenues and better protect government's assets."

We do not need an internal audit in Windsor to take a look at how this City is run. The 400 Building audit fiasco makes it clear. It should be obvious now that Windsor operations are in a mess, there are obvious weaknesses in business practices and we definitely need protection of our assets!

It would be nice for taxpayers to know that the 400 Building project was managed properly since the East End Arena project is also being managed by the City. As I have said before, if the 400 Building project is messed up, then how can we have any confidence whatsoever in the numbers that are being put forward on this $65 million and counting project?

The 400 Building Audit has turned into a comedic farce. No one seems to care that the audit is taking forever to be completed in the first place and that there are excuses after excuses about why it is not being done, excuses that change over time. Moreover, no one seems to be concerned that if the previous Auditor did such a poor job on this audit then one ought to be concerned about what other work that he did.

Even the Ministry of Municipal Affairs does not seen to be concerned about how this City is being run suggesting that we should rely upon a bunch of weak-kneed Councillors as our salvation. Please!

Here is the latest on the 400 Audit from the Star. No one would ever believe this if I wrote a story about it. They would say I made it up. It is too far-fetched:

• "Officials from the city auditor's office overseeing completion of the audit of the 400 building in City Hall Square say 11 boxes of new information have been turned over by city administration and guessed it will take at least until November before a final report can be completed...
  
  A report by the city's lead internal auditor Angela Berry to the audit committee last week revealed that "11 banker boxes of physical records as well as a large volume of soft (electronic) files have been turned over" for the new analysis.
  
  "We have catalogued all of this information and have gone through about half of it in a more detailed review to identify what is relevant," her report said.
  
  "The six boxes of information reviewed to date appear to include many of the project files that we require to conduct much of the planned fieldwork and analysis."
  
  Other information she has received answers some of the questions raised by Dunbar in his original report, said Berry in her report."

It completely mystifies me that after all that has gone on that the CAO has not ensured months ago that the City Auditor was provided with all of the relevant documentation and that all of the people that she needed to speak with were immediately put at her disposal. That boxes of documents and electronic files were only released recently suggests gross incompetence on the part of Administration. Or perhaps worse.

Moreover it is shameful disrespect and an insult not only to the Audit group and to Council but to the citizens of this City. Has Administration no respect whatsoever for taxpayers? I cannot believe that a private business for example would be allowed to run this way, one with a budget of over a half a billion dollars.

The CAO, John Skorobohaczhas, has to take the responsibility for this failure on the part of Administration. He gets the big bucks and the buck stops with him.

As for Mr. Zalev, the Chair of the Audit Committee, what is he doing to protect citizens? He appears to be nothing more than a figurehead who has no idea what is going on. The process seems totally out of his control. He has applied no discipline to what is going on and has provided no sanctions to Administration for their delays. Mind you, what can you expect when the Audit Committee was totally invisible on the Windsor Utilities Commission matter.

I asked almost 3 months ago in one of my BLOGs if a Police Investigation is required or if action should be taken under the Municipal Affairs Act to make an inquiry into the affairs of Windsor. Or both! My view has not changed. In fact, I feel even more strongly now that a forensic audit has to be undertaken as well as bringing in the authorities if any wrong-doing is uncovered.

What I said was

• "The audit of the 400 Building is getting stranger and uglier the more it goes on. It cannot be allowed to continue. The Audit Committee has known for some time that that there are serious matters that need investigation and that could give rise to litigation. It is inexcusable that they have sat on the report for so long with these matters outstanding. I'm disappointed in our Councillors who are members of the Audit Committee that they have not yet released the report a long time ago."

It is always interesting to take a look at a timeline because it puts events into a proper perspective. In this timeline, you will see how this process has been extended to who knows when and you will see all of the different excuses that are being utilized to delay the release of the report. In fact, after one of the meetings, it is not clear that the public will ever see the complete report but only a sanitized version of it.

In other words, we will only see our own whitewashed audit of the 400 Building. We will only be allowed to see what others determine is right and proper for the poor taxpayer to know about.

Remember how this all began... the positive story that we were told. In February, 2006, the Star reported:

• "Councillors approved a report by an independent consultant who found the building was constructed under budget and filled an important need by bringing several city departments under one roof. "Overall, the assessment was that it was done well" and it met the objectives of the city, said John Skorobohacz, the city's chief administrative officer...
  
  Skorobohacz said the project came in under budget and the city will have an extra $1 million, based on projected revenues and operating expenses.
  
  "Because we're paying ourselves, the entire building gets paid in 20, 21 years time," he said."

Keep on reading and there is a lot of it as well so that you will get the full picture

• 03-05-2008 Release of audit delayed; 2 councillors say they're frustrated
  
  “Two city councillors who sit on the audit committee -- Bill Marra and Alan Halberstadt -- expressed dismay Tuesday over delays that have kept an audit of the recently constructed 400 City Hall Square government building under wraps.
  
  "It's been in front of administration and legal for a long time now," Marra said. "We don't have a good explanation for the delay.
  
  "There is no good excuse, no good response to why this has been delayed, but the reality is it has been. I think a lot of people are anxious to see the results of this."
  
  On Tuesday, the audit commitee decided behind closed doors to delay the release of the audit for at least another month. City administrators had called for more time to respond to the audit and for city lawyers to go over it to determine what names and details should remain confidential and what details should be made public…
  
  City administration is being given one final chance to respond to the audit, completed last fall by former city auditor Mike Dunbar and his staff. Dunbar resigned from the city on Dec. 31…
  
  Helga Reidel, the city's general manager of corporate services, spoke for administration at the meeting, suggesting it would take at least another month -- maybe two -- before a response could be completed and the legal department gets a full look at what should be kept confidential in the report.
  
  But after the meeting, the city's lead internal auditor Angela Berry vowed that with or without administration or legal response to issues and recommendations in the audit, it will be released at a committee meeting on April 23. Despite ongoing delays, Bailey said there has been no changes made to the report. “
  
  
• 04-24-2008 Ex-auditor says report on building long overdue; City CAO says more time needed
  
  “Skorobohacz was first given a draft of his audit report in December 2006, and audit committee members have had it in their hands for almost a year, Dunbar said.
  
  "Ask them why has it taken so long. Certainly the report is not subject to change," Dunbar said. "The public should have the complete report as soon as possible. The complete report tells the whole story -- including questions we could not get answers to -- and the public deserves to see that…"
  
  Skorobohacz said the ongoing delays in the audit's release are linked to the committee members having concerns that need to be investigated.
  
  "You have to give some consideration that there were a lot of staff changes both during the time of construction and then when the audit was conducted," he said.
  
  "With changes in staff you still have to provide opportunity for people to provide comment.
  
  "I know the audit committee requested a legal opinion with respect to certain issues and that was presented (behind closed doors) to the committee today…"
  
  The latest delay, after the hour-long audit committee discussion Wednesday behind closed doors, is due to "substantial" new information being handed over last week by city administrators to the city's lead internal auditor, Angela Bailey, that requires her to conduct further investigation…
  
  "We are not certain of the length of time for the city auditor's office to go through the process," Zalev said.
  
  "The types of information (provided by administration) are significant in terms of depth and scope.”
  
  Zalev … could not answer why the new information only came forward last week.”
  
  
• 06-25-2008 City audit faces new delay; KPMG to examine results of probe into 400 building
  
  Accounting firm KPMG will be hired to examine an audit -- kept under wraps for more than a year -- of the construction of the 400 building in City Hall Square.
  
  The decision made Tuesday by the city's audit committee, following an hour-long closed-door discussion, means the long- awaited audit won't be released to the public for at least several more months.
  
  "We have to make sure the work is done properly," said Max Zalev, chairman of the audit committee. "In terms of timetables, it's more important to get the process right and make sure the report is supportable…
  
  It was suggested by Zalev that once the final audit report is released -- in November or December at the earliest -- there will be two versions.
  
  Due to litigation fears, an in-camera report -- not to be made public -- will be provided to the committee, while the public version is likely not to include potential litigious references or names of certain individuals, he said.
  
  
• 07-02-2008 400 building cost defended
  
  “Marra said he understands taxpayers are feeling frustrated the audit has not been released, "but the bottom line is it's not complete." He cited several interviews with those close to the project's construction were not included as part of Dunbar's report, including project manager John Micelli, city manager of faculty operations. The former city auditor resigned on Dec. 31.
  
  "Flaws in the draft audit report were concerning," Marra said. "At the very least things have to be done properly."
  
  There were several new revelations around the delayed audit Monday, most notably that Mayor Eddie Francis has seen several portions of Dunbar's report. He said it was necessary to review much of the audit to determine whether it should be discussed by council this past spring following an outside legal opinion on its contents.
  
  Several senior members of city administration have seen the full Dunbar report, while others have only seen parts pertinent to their roles, said Helga Reidel, the city's general manager of corporate services.”
  
  
• 07-30-2008 More scrutiny for secret audit; Under wraps until lawyer, accountants eye contents
  
  The long-delayed release of the audit of the city's recently constructed 400 building took another turn Tuesday when it was revealed an outside accounting firm and an out-of-town law firm have been hired to analyze the audit before it can be made public.
  
  The city's audit committee, which has had the audit for more than a year without revealing its contents, will pay up to $15,000 for accounting firm KPMG and $10,000 for legal advice from a Toronto law firm.
  
  "We have done this to make sure the lead internal auditor (Angela Berry) has all the resources necessary to complete the full report," said Max Zalev, chairman of the audit committee, following a 90- minute discussion behind closed doors.
  
  "By bringing in this professional horsepower we will have the third-party expertise we need so the report will withstand the scrutiny we expect it will be under by a variety of stakeholders."
  
  One reason audit committee members believed they needed to call in outside help is because several key city administrators and staff members associated with the 400 project, including project manager John Micelli, have not been interviewed as part of the audit.
  
  "The real reason for the delay is information the committee and the lead internal auditor has is incomplete," said Zalev. "We need to make sure the final audit report can withstand scrutiny in the public eye and court of law."
  
  All the extra work and due diligence adds up to at least another 90 to 120 days before the audit could possibly be released, Zalev said.
  
  "There is a possibility it could go on longer, also a possibility it could take less time," he said. "
  
  KPMG will help Berry determine what added documents are needed and what additional interviews should take place, while law firm Miller Thompson -- which has municipal and audit expertise -- will play a role in determining which parts of the final audit report should be made public and what should stay secret.”
  
  
• 08-16-2008 Audit full of holes, lawyer argues
  
  A long-awaited audit of the city's 400 building is so full of holes that it can't be considered an audit at all, a legal adviser told the city's audit committee Friday.
  
  Andrew Roman said gaps in the report assembled by former city auditor Mike Dunbar are so frequent that it should be considered a draft for a component of an audit to come.
  
  "It's premature and incomplete ... not a document that's ready for release," Roman said…
  
  Other gaps in Dunbar's report include missing documents that weren't filed and interviews that have yet to be conducted, Roman said.”
  
  
• 09-05-2008 City wants $354,650 for FOI request
  
  The City of Windsor says it needs $354,650 from a local taxpayers group to process a freedom of information request.
  
  WeACT -- and its president Chris Schnurr -- has also been informed in a letter from the city that it will take 11,000 hours of search time to dig up records related to an audit of the 400 City Hall Square building and to a proposed tunnel deal with Detroit. The group has been told it must pay a $177,325 deposit -- 50 per cent of the fee estimate -- before the city will proceed with the FOI request…
  
  The city has requested a 500-business day extension to comply with the request, according to a Sept. 2 letter sent to Schnurr.

You tell me when we're going to see the report. Do citizens have to wait 500 days and pay $350K? You figure out the reasons and excuses for the delay. The time period keeps being extended from month to month. Now it is November when a sanitized version will be released after it has been picked apart by the outside lawyer and KPMG. The excuses keep changing and new documents are suddenly found and released even though Administration was told that they only had one final chance to respond on to the original Audit Report months ago.

The purpose of everything is to wear out citizens, to expect we will go away and that we will not bother. When we are crushed, then the sanitized Report will be distributed and we will get an "I told you so. There is nothing there. Why were you so upset? It's the usual Naysayers again causing problems."

Mike Dunbar is being made to be the fall guy in this. He's being made to look like a fool. He's being made to look incompetent. He's not.

For around two years, 11 boxes of key data were not provided to the Internal Audit group. How can that possibly be? It is only now that interviews are being undertaken of relevant personnel. How can that possibly be? People outside of the Audit committee, the Mayor and members of Administration, were provided with copies of the Dunbar report but not members of the public? How can that possibly be?

We are told that there is a litigation concern. I have been racking my brains trying to figure out who might sue. Who are the various stakeholders that may scrutinize the report and then start a lawsuit?

I doubt very much that it would be an employee. I thought that the claims of the builder of the building were resolved at Council so it would not be that company.

The only people that I can think of that would be an interested stakeholder, and would have money to start a lawsuit would be one of the tenants in the building, the Federal or Provincial Government, or perhaps St. Clair College who backed out at the last minute. Perhaps an interested party might be one of the contractors that did not get the job if something strange went on. Who knows?

The Star has written Editorial after Editorial on the subject and has gotten nowhere. The best they could do today was write:

• "It was startling and disconcerting to learn that city administrators only recently sent to the city auditor's office 11 boxes of documents and additional computer files related to the 400 building in City Hall Square...
  
  Did someone in the auditor's office drop the ball or did administrators refuse, for whatever reason, to throw it to them?"

What a cute play on words by the literary genius. What the Star should have said is that Council must take control of this financial embarrassment and undertake a proper forensic audit of this entire matter. (The Mayor being conflicted since he has already seen a copy of the Dunbar Report). Once that is done and a report issued, then the appropriate action must be taken, including termination of the responsible people, if this process has been mishandled to the detriment of citizens or calling in the Police.

Enough is enough!