The Department of Finance and Treasury Board’s decision to withdraw from a federal accommodation program and revise its travel policy has been called into question by the Auditor General of New Brunswick. The 2024 audit report found the department failed to provide adequate analysis for the policy change, potentially missing out on annual savings of $632,169 by not using the Government of Canada’s negotiated accommodation rates.
The department ceased participation in the Government of Canada’s Accommodation Directory Program (GCADP) in January 2023, citing insufficient value for the $14,850 annual participation fee. However, the audit revealed the decision lacked a documented business case and quantitative analysis.
“The return on investment was deemed insufficient due to the lack of demonstrated evidence of cost savings or measurable benefits,” the department said.
The GCADP offered federally negotiated hotel rates and contractual protections for overcharges or poor service. The audit showed that had the department remained in the program, it could have saved the province up to 32 times the annual participation fee. Auditor General Paul Martin said the lack of analysis demonstrated a failure in prudent fiscal management.
Additionally, the Treasury Board did not approve the policy change as required under Policy AD-1101. This omission raises concerns about oversight and adherence to governance protocols. “Policy changes of a financial, personnel, or administrative nature must be approved by the Treasury Board,” the report said.
The audit also criticized the updated travel policy for being unclear and potentially misleading. Employees are still instructed to seek “government employee rates,” but it is not specified which rates they are eligible to use. The report noted instances where employees booked rates above those listed in the federal directory, including a conference in Toronto where foregone savings exceeded $10,000.
The Auditor General recommended the department reassess its decision to withdraw from GCADP, develop comprehensive business cases for policy changes, and ensure clear policy guidance for employees. The Department of Finance and Treasury Board has agreed to implement these recommendations by March 2025.