Senate final report on Senator Pamela Wallin's expenses

7/27/2019 Senate final report on Senator Pamela Wallin's expenses

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SENATESTANDING COMMIT I EE ON

INTERNAL ECONOMY. BUDGETS AND ADMINISTRATION

S E N ATCOMITE PERMANENT DE LA REGIEINTERNE. DES BUDGETS El DE L'ADMINISTRATION

CANADA

TUESDAY , AUGUST 13, 2013 E MAR DI 13 AOUT 2013

The Standing Committee on InternalEconomy, Budgets and Administration has thehonour to present its

TWENTY-SEVENTH REPORT

On November 29, 2012, a subcommittee ofthis Committee ordered an external review ofthe unusual travel pattern of Senator PamelaWallin. The travel pattern included frequentstopovers in Toronto, as well as return travelfrom Ottawa to Toronto and fromSaskatchewan to Toronto. While travel fromOttawa to a senator's province or territory ofappointment for purposes of going home is a

usual practice and the foundation of the PointsTravel System, travel to a destination inCanada other than one's provincial or territorialresidence may only be claimed if a senator isattending to parliamentary business at thatdestination.

Le Comite permanent de la regie interne,des budgets et de l'administration a l'honneurde deposer son

VINGT-SEPTIEME RAPPORT

Le 29 novembre 2012, un sous-comite dece Comite a ordonne la tenue d'un examenexterne des habitudes de &placementsinusitees de la senatrice Pamela Wallin. Ceshabitudes consistent en de frequents arretsToronto, ainsi que des trajets de retour entreOttawa et Toronto et entre la Saskatchewanet Toronto. Les &placements des senateursentre Ottawa et la province ou le territoire

qu'ils representent pour qu'ils puissentretourner a leur domicile sont pratiquecourante et constituent en fait le fondementdu systeme des points de &placement.Toutefois, les &placements vers d'autresdestinations au Canada que la province ou leterritoire de residence ne peuvent etrerembourses que si le senateur participe a desactivites parlementaires a ces destinations.

A formal contract was entered into withDeloitte on January 3, 2013. Deloitte wasengaged to conduct a review of SenatorWallin's expense claims and supportingdocumentation in order to categorize them as:appropriate in keeping with Senate practice;subject to reimbursement to the ReceiverGeneral; or subject to interpretation anddetermination by the Standing Committee onInternal Economy, Budgets andAdministration; as well as to review Senator

Un march a ete officiellement concluavec Deloitte le 3 janvier 2013. Deloittedevait, d'une part, effectuer un examen desdemandes de remboursement de lasenatrice Wallin et des pieces justificativesfournies afin de determiner si elles sont soitconformes aux pratiques du Senat, soitsujettes a remboursement au receveur generalou soumises a l'interpretation et a la decisiondu Comite permanent de la regie interne, desbudgets et de l'administration et, d'autre part,


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Wallin's living allowance claims in theN ational Capital Region (NC R).

Deloitte's findings in the attached Report

relate to Senator Wallin's travel patterns andthe appropriateness of the related claims, aswell as to the appropriateness of her livingexpense claims, as Senator Wallin had claimedprivately owned accommodations in the NCRfrom April 2009 to the end of June 2011. ThisReport of your Committee providesrecommendations on actions to be taken inresponse to Deloitte's findings.

The review period for the examination wasJanuary 2009 to September 30, 2012. Theunusual pattern that required examinationrelated to frequent stopovers in Toronto, whereSenator Wallin maintains a residence. Over theperiod, Deloitte concluded that the Senator hadmade 94 trips between Saskatchewan andOttawa, and that 75 of them involved stopoversof one or more nights in Toronto. Where these

stopovers had evidence of parliamentarybusiness or were made to avoid a late arrival atfinal destination, Deloitte deemed the claims asappropriate; where assessed as not having suchbusiness, the incremental costs of stopovershave been designated as reimbursable. Othertravel claims were deemed reimbursable intheir entirety. The full amount assessed asreimbursable is $121,348, of which SenatorWallin has already reimbursed $38,369following her own review. As a comparison,

$390,182 of the total travel expenses of the$532,508 were determined to be appropriate(73 percent).

examiner les depenses de subsistanceengagees par la senatrice Wallin dans laregion de la capitale nationale (RCN ).

Les conclusions contenues dans le Rapport

de Deloitte en annexe portent sur leshabitudes de &placement de lasenatrice Wallin et la conformite de sesdepenses connexes ainsi que sur laconformit de ses frais de subsistance, etantdonne que la senatrice a declare des fraisd'hebergement prive dans la RCNd'avril 2009 a la fin juin 2011. Le Rapport devotre comite contient des recommandationssur les mesures a prendre a la lumiere desconclusions de D eloitte.

La periode d'examen s'etendait dejanvier 2009 au 30 septembre 2012. Leshabitudes de &placement inusitees visees parl'examen consistaient en des arrets frequentsa T oronto, oil la senatrice Wallin possede uneresidence. Deloitte a conclu que, au cours dela periode d'examen, la senatrice a effectue94 voyages entre la Saskatchewan et Ottawa,et que 75 d' entre eux comportaient un arret

d'une nuit ou plus a Toronto. Dans les caso u

it a ete prouve que l'arret &ail motive par desactivites parlementaires ou effectue poureviter une arrivee tardive a la destinationfinale, Deloitte a determine que la demandede remboursement &ail conforme. Dans lescas contraires, les surcoilts engendres par lesarrets ont ete designes commeremboursables. D'autres frais de &placementont ete designes comme entierementremboursables. Le montant total a

rembourser s'eleve _ a 121 348 $. De cemontant, la senatrice Wallin a djrembourse 38 369 $, d'apres les conclusionsd' un exam en qu'elle a elle-m'eme effectue. Atitre de comparaison, 390 182 $ du total desfrais de &placement, soit 532 508 $, ont etedesignes comme conformes (73 p. 100).

Deloitte has also categorized a number of eloitte a egalement design certains fraistravel claims and events as subject to e deplacement et activites comme etantinterpretation and determination by the oumis a l'interpretation et a la decision du


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Steering Committee of the Internal EconomyCommittee. The total amount of claims subjectto determination is $20,978.

Over the course of its review, Deloitte

encountered inconsistencies between theinformation obtained from Senator Wallin andher Executive Assistant, and what theysubsequently obtained through research andOutlook calendar back-ups. Examples of theseinconsistencies provided by Deloitte in itsReport elicit serious concerns that yourCommittee considers cannot be addressed andresolved internally.

With regard to living expenses, Deloitte hasreported that Senator Wallin submitted aDeclaration of Primary and SecondaryResidence on March 26, 2009, providing anaddress for privately owned accommodationsin Ottawa (proof of ownership followed onJune 26, 2009), and including an address forher primary residence in Wadena,Saskatchewan. The status of Senator Wallin'saccommodations in the National Capital

Region did not change until June 25, 2011,when she submitted a new Declarationindicating that she no longer owned privateaccommodations in Ottawa. From that time on,Senator Wallin's living expense claims inOttawa have been for the reimbursement ofcommercial accommodations. Over this 26-month period from April 2009 to June 2011, atotal of $22,960 was reimbursed to SenatorWallin in living allowances as may be claimedfor privately owned accommodations.

comite directeur du Comite permanent de laregie interne, des budgets et del'administration. Ces frais s'elevent a 20 978 $.

Au cours de son examen, Deloitte a releve

des manques de coherence entre lesrenseignements fourths par lasenatrice Wallin et son adjointe de directionet les renseignements subsequemmentobtenus par des recherches et dans lessauvegardes du calendrier Outlook. Lesdivergences citees dans le Rapport Deloittesoulevent de serieuses preoccupations et lecomite estime que celles-ci ne peuvent etrereglees a l' interne.

En ce qui concerne les frais desubsistance, Deloitte a indique dans sonrapport que la senatrice Wallin a presente unedeclaration concernant ses residencesprincipale et secondaire le 26 mars 2009.Celle-ci contenait les coordonnees d'uneresidence privee a Ottawa (la preuve depropriete a ete presentee le 26 juin 2009) etcelles de sa residence principale a Wadena,en Saskatchewan. La residence de la

senatrice Wallin dans la RCN est demeureela meme jusqu'au 25 juin 2011, date oit elle apresente une nouvelle declaration indiquantqu'elle ne possedait plus de residence priveea Ottawa. A partir de ce moment, lesdemandes de remboursement des frais desubsistance de la senatrice visaient des fraisd'hebergement commercial. Au cours decette periode de 26 mois, du mois d'avril2009 au mois de juin 2011, la senatrice arecu au total 22 960 $ en remboursement de

depenses de subsistance, conformement auxdispositions sur le remboursement desdepenses d'hebergement prive.

In its consideration of living expense claims,Deloitte conducted a detailed review of SenatorWallin's location, following the samemethodology used in their examinations ofSenators Brazeau, Harb, and Duffy's livingexpenses. Senate documentation such as theSenate Attendance Register and Travel Claims

Dans le cadre de son analyse desdemandes de remboursement des frais desubsistance, Deloitte a effectue un examenexhaustif de la localisation de lasenatrice Wallin, empruntant la mememethodologie que celle utilisee pourl'examen des depenses de subsistance des


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(with receipts from commercial carriers, etc.),and additional third party documentation suchas cellular telephone invoices and credit cardstatements, were used to determine SenatorWallin's location over the period of review,which covered January 2009 to September 30,2012. Deloitte was able to confirm with 93percent accuracy and another six percentlikelihood (99 percent total) Senator Wallin'slocation over the review period, i.e., Ottawaversus her declared primary residence inSaskatchewan, or elsewhere. This informationhas guided our determination on whetherSenator's Wallin's claims for "secondary" orNCR residence were appropriate.

Deloitte ascertained that over the 1,369 daysof the review period, Senator Wallin had spent22 percent of her time in Ottawa on Senate

business; 27 percent of her time inSaskatchewan; and 35 percent of her time inToronto some of which is attributable toparliamentary business. She spent theremainder of her time in other locations,including 6 percent of it on Senate business and9 percent private. Deloitte noted that, given theSenator's travel pattern, the fact that she didnot m aintain a residence in Ottawa for 19 of the45-month review period, and that she rarelyspent time in Ottawa when not on Senate

business, they were able to conclude that herprimary residence was more than 100kilometres from the NCR and that livingallowance claims appeared to b e appropriate.

senateurs Brazeau, Harb et Duffy. Desdocuments du Senat, comme le registre despresences du Senat et les demandes de fraisde &placement (appuyees par des reps detransporteurs commerciaux, etc.), et desdocuments de tierces parties comme lesfactures de service de telephonie cellulaire etdes releves de carte de credit ont ete utilisespour determiner 1' emplacement de lasenatrice Wallin au cours de la perioded'examen, qui s' etendait de janvier 2009au 30 septembre 2012. Deloitte a ete enmesure d ' etablir avec certitude la localisationde la senatrice Wallin c' est-a-dire Ottawa,sa residence principale declaree enSaskatchewan ou ailleurs pour 93 p. 100des jours de la periode d'examen et dedeterminer son emplacement probable pour6 p. 100 des jours (99 p. 100 des jours entout). Ces renseignements nous ont permis dedeterminer si la declaration de residence secondaire (ou residence dans la RCN) dela senatrice Wallin etait exacte.

Deloitte a determine qu'au cours des1 369 jours de la periode d'examen, lasenatrice Wallin a pass 22 p. 100 de son

temps a Ottawa pour affaires du Senat;27 p. 100 de son temps en Saskatchewan; et35 p. 100 de son temps a Toronto, dont unepartie pour des activites parlementaires. Ellea pass le restant de son temps dans d'autreslieux, dont 6 p. 100 pour des affaires duSenat et 9 p. 100 pour des affaires privees.Compte tenu des habitudes de &placementde la senatrice, du fait qu'elle ne possedaitpas de residence a Ottawa au cours de 19 des45 mois de la periode d'examen et du fait

qu'elle a rarement pass du temps a Ottawapour des affaires autres que celles du Senat,Deloitte a pu conclure que la residenceprincipale de la senatrice se trouvait a plus de100 km de la RCN et que les demandes deremboursement des frais de subsistancesemb laient conformes.

In conclusion, this Committee is in n conclusion, votre comite est d'accordagreement with the assessments that Deloitte vec l'analyse presentee par Deloitte dans


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has made in its Report. We wish toacknowledge that Deloitte's application of theSenate's policy framework and principles, withconsideration to general practices whereavailable, has been fair with regard to theclaims in question.

Your Committee therefore determines andrecommends:

1. That the reimbursements of travelexpenses submitted by Senator Wallinto date have b een properly received;

2. That the Standing Committee onInternal Economy, Budgets andAdministration order Senator Wallin toreimburse additional amounts asidentified by Deloitte in its Report, andthat the Senate do order thereimbursement of interest on saidamounts at prime rate plus one percent;

3. That further amounts for claimsidentified as "subject to interpretationand determination by the Committee"be reviewed, advising Senator Wallin ofany further reimbursable amountsresulting therefrom at the earliestopportunity;

4. That the Standing Committee onInternal Economy, Budgets andAdministration uspends enator

Wallin's right to the use of Senateresources for travel in the followingmanner:

son rapport. Nous tenons a souligner que,dans le cadre de son examen, Deloitte aappliqu les principes et le cadre strategiquedu Senat avec rigueur et que la firme a tenucompte, lorsque necessaire, des pratiquesgenerales du Senat.

Par consequent, votre comite determine etrecommande :

1. Que les demandes de remboursementdes frais de &placement presenteespar la senatrice Wallin jusqu'a ce jouront ete revues adequatement;

2. Que le Comite permanent de la regieinterne, es udgets t el' administration ordonne a lasenatrice Wallin de rembourser lesmontants additionnels releves dans leRapport Deloitte, et que le Senatordonne le remb oursement des interetsau taux preferentiel plus 1 p. 100;

3. Que les montants designs comme soumis a l'interpretation et a ladecision du Comite soient examineset que l'on avise dans les plus brefsdelais la senatrice Wallin de toutremboursement upplementairedecoulant de cet examen;

4. Que le Comite permanent de la regieinterne, des budgets et del'administration suspend le droit de

la senatrice Wallin d'utiliser lesressources du Senat pour les&placements de la fawn suivante :

only direct or immediatelyconnecting lights etweenSaskatchewan and Ottawa to attendS enate business are authorized;

sont uniquement admissibles lesvols irects u veccorrespondances immediates entreSaskatchewan et Ottawa pourparticiper a des affaires du Senat;


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all other itineraries must bepreapproved by the Subcommitteeon Agenda and Procedure(Steering); and

travel laims ubmitted orreimbursement by Senator Wallinwill continue to be monitored fromthe date of the adoption of thisReport for a period of not less thanone year;

5. Notwithstanding usual Senate practice,

that the Standing Committee on InternalEconomy, Budgets and Administrationrequest that the proper authoritiesexamine the matters dealt with in theDeloitte Report and related information,and that the Committee refer suchdocuments, as it considers appropriate,to the proper authorities for thepurposes of the investigation; and

6. That, upon adoption by yourCommittee, this Report be depositedwith the Clerk of the Senate, whereby itshall be deemed presented in thechamber and placed on the Orders ofthe Day for consideration at the nextsitting of the Senate, in accordance withthe Order adopted by the Senate onJune 20, 2013.

Respectfully submitted,

tout autre itineraire doit etreapprouve au prealable par leSous-comite du programme et dela procedure (directeur);

les frais de &placement reclamespar a enatrice Wallincontinueront de faire l'objet d'uncontrole constant pour uneperiode d'au moins un an suivantla date d'adoption du presentrapport;

5. Nonobstant la pratique usuelle du

Senat, que le Comite permanent de laregie interne, des budgets et del' administration emande uxautorites competentes d' examiner lesquestions faisant l'objet du RapportDeloitte et les renseignementsconnexes, et que le Comite renvoieles documents qu'il juge appropriesaux autorites competentes aux fins deson enquete;

6. Que, suite a l'adoption par votreComite, ce rapport soit depose aupresdu greffier du Senat et, de ce fait, soitrepute avoir ete depose a la Chambre,et que son etude soit inscrite a l'ordredu jour de la prochaine sance duSenat, conformement a l'ordre duSenat du 20 juin 2013.

Respectueusement soumis,

Le president,

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GERALD J. COMEAUChair

Senate final report on Senator Pamela Wallin's expenses

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Transcript of Senate final report on Senator Pamela Wallin's expenses