Audit of North End Treatment Plant finds issues with project

A third-party audit of the North End Sewage Treatment Plant has found some issues with the project.

An audit by KPMG found the governance, oversight, and reporting controls in place are not adequate for a job of this size. It also found issues when it comes to risk and cost management practices.

Since the original budget in 2018, the project has seen significant cost increases and is now valued at $2.38 billion.

Mayor Scott Gillingham said the audit was the responsible thing to do, as it allows the city to make any changes to improve oversight and protect ratepayers.

“I’m really pleased with this audit,” he said at a news conference on Wednesday.

“We wanted to do the audit. We wanted the auditor to take a look at what is the biggest, most expensive, most complex capital project the City of Winnipeg has ever undertaken.”

The audit made several recommendations, including bolstering the team size, developing an approach to communication with Indigenous communities, and increasing the frequency of active risk management.

The city said some of these recommendations are already underway or can be implemented quickly, while others would need an overhaul of existing structures and policies, which may require council approval.

“There was a lot of positive findings in that audit that said our staff are doing what they are set out to do and what our policies internally say that they should be doing,” the mayor said.

“It does say clearly, though, that we need to establish a governance model for that project that is fit for purpose.”

The full report can be found online.