KPMG is requesting the City of Chestermere remove misleading 2021 financial audit information from the city’s website.
KPMG issued a letter, dated for Feb. 21, explaining that auditors became aware of council agenda package information which indicates KPMG audited the city’s financial statements for 2021.
“That is not the case,” the letter said.
KPMG sent a letter to the city’s audit committee resigning from the city’s audit in December 2022, for the previous year.
“As a result of our resignation, we did not complete an audit of the city’s 2021 financial statements, and accordingly, have not issued an audit report expressing an opinion on these 2021 financial statements,” the letter said.
The letter went on to explain that the council meeting information package dated for Dec. 7, 2022, six days after KPMG’s resignation.
“The package incorrectly states on two occasions that KPMG audited the city’s 2021 financial statements, first in the cover letter and second in the management report, both signed by Kim Wallace,” the letter said.
The information package also contains an unsigned independent auditors’ report.
“Which is misleading when read in the context of a package of information that refers to the 2021 financial statements as having been audited by KPMG,” the letter said.
The information package also includes a management representation letter to KPMG dated for Nov. 29, 2022, and a management representation letter to KPMG dated for Nov. 30, 2022. Both letters also have a signature page.
“KPMG was provided with one signed management representation letter, the one dated for Nov. 29, 2022,” the letter said. “KPMG was specifically advised, at the time, that management was unable to sign the version of the management representation letter dated for Nov. 30, 2022, and KPMG did not receive a signed version of that letter.”
Going forward, KPMG is requesting that city administration remove the information package from the city’s website, and issue a statement posted to the city’s website expressing that the city’s financial statements for 2021 have not been audited by KPMG.
Lastly, KPMG is requesting the city provide written confirmation from city council that no parties were directly advised by the city that KPMG had audited the city’s financial statements for 2021.
If any parties were advised, KPMG is requesting a written confirmation from the city that those parties have been contacted, and instructed to return any copies of the city’s financial statements that contain an unsigned independent auditor’s report.
The City of Chestermere was unavailable for comment.
KPMG declined to comment.
