BREAKING: 'Inappropriate culture of spending' found in TNRD audit

Forensic investigators are presenting their findings of the forensic audit into spending at the Thompson Nicola Regional District today, but the full report is being withheld from the public.

What began as a thorough forensic audit of expenses eventually expanded to investigations into contract procurement and vendor contracts.

Simon Padgett, director of forensic disputes and investigations with BDO Canada LLP, said there was an "inappropriate culture of spending" at the regional district.

"(The regional district) has promised a fulsome and transparent result of these findings," chief administrative officer Scott Hildebrand said ahead of the presentation. "Our lawyers have advised that a full copy cannot be released at this time."

Padgett presented the forensic audit report and BDO's recommendations a regional district board meeting today, Dec. 16.

The forensic audit was sparked by the retirement of former chief administrative officer Sukh Gill and a subsequent Kamloops This Week investigation.

The year-long investigation revealed around $500,000 in credit card spending over five years on dinners, alcohol and lavish gifts for staff from Gill's corporate credit card.

The board of directors approved up to $75,000 for the independent forensic audit, in an effort to reveal where spending policies need improvements and to restore public trust after the spending scandal.

BDO Canada LLP was contracted to conduct the forensic audit, which is a deeper dive into expenses and spending practices than a typical audit. Over the months of investigation, it included interviews with employees and contractors.

Investigators conducted over 20 interviews during the investigation. They also reviewed 45,000 emails and 12,000 documents at the regional district, along with investigating hundreds of expense and remuneration reports.

There were inconsistencies and incomplete information "all over the place" related to invoices for Gill's expenses, according to Padgett.

There were times when different corporate credit cards were used at events instead of strictly Gill's. During subsequent interviews, Padgett said regional district staff whose credit cards were used would later say they did not attend the event.

BDO Canada LLP initially expected to present the final report of the audit in September, but current regional district chief administrative officer Scott Hildebrand told iNFOnews.ca the scope of the investigation widened, extending the time it took to complete.

More to come.

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