An audit was completed in 2019 and followed up on in 2024. (Derek Cornet/larongeNOW Staff)

By Derek Cornet

education

Auditor finds non-compliance with international trip, credit card and expense claims at Northlands College

Dec 11, 2024 | 9:47 AM

Northlands College staff are not complying with travel and expense claims, and corporate credit cards policies.

That’s according to a report released this month by the Provincial Auditor of Saskatchewan, which flagged a number of concerns at the regional college based in Air Ronge but serving Northern Saskatchewan

For instance, the report states 18 reimbursed senior management expense claims were tested by independent auditors of Legislative Assembly and they were found to not fully comply with the college’s own policy. There were claims approved without adequate support attached such as meal expenses claimed for meetings with no indication of who attended the meeting or the business purpose, and a car rental claimed for multiple days with no invoice or receipt.

There was also overnight travel without evidence of prior board approval, with one international trip claimed to cost the Northlands about $19,000. The board subsequently approved this May 2024 trip, which likely was a University of the Arctic conference attended by former president and CEO Karsten Henriksen, at its September 2024 meeting.

Henriksen recently resigned from the role and Michael McCormick, the vice president of finance and administration, will serve in the interim.

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Former CEO and President Karsten Henriksen is pictured at a University of the Arctic meeting in Norway which began on June 1. (University of the Arctic/Valeriia Makeionok)

“Additionally, Northlands College’s corporate credit card policy states that credit cards are not to be used for personal transactions,” the report notes.

“We found two instances where a corporate credit card was used for personal reasons. For these two items, the individual reimbursed the College.”

The audit also found examples of the use of a personal vehicle for travel instead of one of the College’s fleet vehicles without evidence of prior approval, per diems claimed for the same day multiple times or per diem claimed along with a receipt for a meal claimed on the same day, as well as an instance of the same receipt for a laptop purchase used as support for two separate business expense claims.

“Not following the College’s established travel and expense claims policy, and credit card policy, increases the risk of fraudulent or inappropriate purchases, as well as creates a culture of tolerated non-compliance,” the report adds.

Issues were also flagged in fleet card statements, purchasing requirements, and with transaction limits on credit cards not being enforced. Northlands spent $590,000 on credit card purchases in 2023–2024.

During that same period, it had revenues of $20.3 million and expenses of $19.2 million. Approximately 58 per cent of expenses relate to salaries and benefits.

In an email to larongeNOW from Northlands chairperson Nick Daigneault, the college remains committed to a quality, continuous improvement approach in addressing audit findings.

He wrote over the past fiscal year, Northlands College has successfully filled key staff vacancies within the finance department, enhancing its capacity for robust fiscal management. Additionally, it has implemented comprehensive updates to its policies, procedures, and processes, aimed at strengthening internal controls and eliminating previously identified gaps.

Northlands College has plans to conduct additional audit testing sessions throughout 2025 to serve as a measure of due diligence, ensuring the effectiveness and sustainability of the enhancements made.

“We are dedicated to maintaining the highest standards of fiscal responsibility and transparency,” Daigneault remarked. “Our ongoing efforts reflect our commitment to continuous improvement and accountability.”

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derek.cornet@pattisonmedia.com