Auditor General Committee

Summary

• Land Sales and Exchanges Audit: Auditor General Mike McDonnell presented a performance audit covering 16 land transactions between 2016 and mid-2024, representing 90% of total transaction value over that period. The audit concluded the city could not demonstrate it maximized value, citing gaps in documentation, outdated and conflicting policies, extensions granted without council approval, and a $13 million calculation error in the 601 Beach Crescent deal. Staff disputed several findings, arguing that community amenity contributions (CACs) and in-kind benefits were not fully accounted for in the audit's analysis, and that many direct sales were the only viable option given site consolidation requirements. Committee discussion clarified that the audit finding was that value could not be demonstrated, not that money was definitively lost. Committee endorsed all 10 recommendations and added a direction to staff to report back with a proposed response, including updated and consolidated land sale policies and potential annual reporting on transaction value and community benefits.
• 2025 Annual Whistleblower Report: The Auditor General's office received 177 reports in 2025 (containing 204 allegations), resolving 171. Four investigations produced recommendations, covering: delivery of a $6 million in-kind CAC that fell short of a reasonable standard; a Park Board mobile vending permit process that differed substantially from its advertised criteria; a False Creek South planning contract that grew from $50,000 to over $900,000 without competitive procurement or proper approvals; and a procurement conflict-of-interest allegation that was not substantiated but revealed process gaps. No fraud was found. The city reported implementing 82% of prior whistleblower recommendations. Committee endorsed all 21 recommendations.
• 2025 OAG Annual Report and 2026 Operational Plan: The Auditor General reported on office performance, noting two audit reports and two follow-up reports released in 2025. The office estimated $31.3 million in financial benefits to the city against $6.9 million in operating costs since inception, a 453% return on investment. A peer review by the Halifax Regional Municipality Auditor General's office found no significant issues. The item was received for information; no vote required.
• Six members of the public spoke on the land sales audit, generally supportive of the recommendations and calling for broader investigation and greater accountability.