City council will float the St. Albert Public Library some extra cash to undertake a third-party internal audit, should they so choose.
The $100,000 audit would be funded through the city’s stabilization reserve. As an organization external to council, the decision to pursue an internal audit is ultimately up to the library board, who must inform council of their decision by March 31.
In 2020, St. Albert hired consultant firm Ernst & Young for a $1-million fiscal and operational review. According to the review, taking a second look at the grants the city provides its library could save $7.3 million over five years.
Peter Bailey, St. Albert Public Library CEO, described the review as off-base, arguing it demonstrated a misunderstanding of the library’s operations, during an interview with The Gazette in August.
“The key problem was they were not comparing apples to apples,” Bailey said, noting while the library doesn’t have the full data of the report, he understands Ernst & Young compared the library to larger libraries in Ontario which are based on different funding models.
On Dec. 7, Coun. Sheena Hughes brought forward the motion to fund a potential external audit as part of the city’s budget process, arguing the audit is a way to seek clarity.
“If there are efficiencies, we’ll know where the efficiencies can be found … and we’re not just slashing because we had someone tell us the budget was too high,” Hughes said on Dec. 7.
Hughes noted it’s “very possible” the third-party auditor could come back to council and say the library’s budget is reasonable, which will also provide the city with certainty.
“We can also reassure the public … [the library] is running as efficiently as possible,” Hughes said.
When asked by Coun. Ken MacKay whether the audit would be helpful, Bailey — who was present to answer questions at the Dec. 7 meeting — said hopefully the audit could provide the library with a better understanding of what Ernst & Young was recommending.
“It’s possible the results of such a review would say, ‘yes, there are some efficiencies that can be gained by looking at best practices at other libraries,’ so it’s a possibility,” Bailey said.
Councillors voice support
Coun. Wes Brodhead said the library has been “a bit of a lightning rod as of late” and noted the audit would be an opportunity to potentially “put a little bit of that to rest.”
“To me, the critical nature of this process is the scope of the audit the library board defines,” Brodhead said. “I would challenge them to be very careful in defining what the scope of the audit is, so the results are what you need.”
Coun. Natalie Joly said the audit was a “great idea” and “probably overdue,” but noted she would not be voting in support of the motion because she was wary of council over-directing the library board.
“The library board is an independent entity,” Joly said. “I’m uneasy about voting in favour of any funding they didn’t request or that isn’t part of their strategy.”
Joly said if the audit interests the new board, she would support the request at a future date.
“I don’t think it’s appropriate to hit them with a stick, if you will,” Joly said. “This really feels like the provincial government telling St. Albert how to run our business and I would rather a more collaborative kind of relationship.”
In closing debate, Hughes said the intention behind the motion was to go forward with an educated decision, rather than a “slash and burn” approach.
“The library board just didn’t think of it, that doesn’t mean it’s wrong,” Hughes said. “I’m not getting the impression [the board] is taking this as adversarial.”
The motion passed 5-2, with Joly and Coun. Shelley Biermanski opposed.
Reached by phone Tuesday, Bailey said once the library understood what council was looking for, it was a “game changer.”
"Once we understood that … it was more along the lines of an operational review, I was on board,” Bailey said, noting he recommended the library board accept the funds for the audit.
With four new members coming onto the library board for 2022, the board tabled the decision to undergo the audit at their December meeting, Bailey said.
The decision to pursue the audit will come before the board Jan. 19.
