Auditor General Says Alberta’s Bad Cash Management Costing Millions

This article was last updated on April 16, 2022

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auditor general says alberta’s bad cash management costing millionsAlberta’s auditor general, Merwan Saher, revealed in a report issued on Wednesday that the province is lacking intuitive cash management systems and policies. The report highlights that the government has failed to effectively pool its money to maximize returns and often lost money to avoidable bank fees, unnecessary interest payments and other financial administration costs.

The report mentioned that “managing the government of Alberta’s cash without an integrated treasury management system is like driving a car without a fuel gauge,” adding “you can drive the car, but you don’t know how much gas you have, when to fill up or how much further you can go.” The 120-page report issued by Saher also provided recommendations on how the value of Alberta’s royalty reduction programs, assess the risk of cyber-attacks on the oil and gas industry can help the province come up with a plan to address surplus funds in the Victims of Crime program and the public trustee’s office.

Furthermore, the auditor general revealed that Municipal Affairs “did not have the capacity” to readily process disaster recovery program claims when it took over governance of the program during the 2013 flooding in southern Alberta and as a result, some claims were not processed in an orderly fashion. Commenting on the province’s cash management processes, Saher found Alberta Treasury Board and Finance has failed to implement modern banking practices. He highlighted that the province maintains bank accounts across various ministries, more than 120 in Alberta Energy alone, and “they create risks, such as misappropriation of funds or fraudulent cheques.”

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