Risky post-secondary ventures, uncollected corporate taxes and a lack of expense documentation from Travel Alberta executives are some areas of concern outlined by Alberta's Auditor General.

In a report released Tuesday, Auditor General Merwan Saher recommends that the Alberta government develop guidelines and expectations for when post-secondary institutions enter into for-profit and cost recovery ventures as well as oversight processes requiring institutions to conduct risk assessments and regularly report on venture results.

"Without effective department oversight of whether a board is overseeing that its institution's management has appropriote policies and controls to mitigate risks on these ventures, there is an increased likelihood of unjustifiable exposure and cost to Albertans," wrote Saher, highlighting a risk of "financial loss, reputational damage and legal exposure."

While the lack of oversight leaves room for risk, auditors found no mismanagement at any current ventures. Existing ventures include land trusts such as those held by the University of Calgary, as well as cost recovery ventures such as livestock sales from Lakeland College's agricultural program or alcohol sold from Olds College's brewmaster program.

The report also says the government's tax and revenue administration must improve its systems to deal with unfiled corporate income tax returns. The government does not have a plan to collect a "significant" amount of outstanding corporate tax, auditors found, and some of the files are more than eight years in arrears.

Auditors also found that senior executives at Travel Alberta, the government's tourism marketing arm, did not provide documentation explaining the business reasons for select hotel and hospitality expenses, including a five-night hotel stay in Calgary.

The report did commend Alberta Health Services for implementing recommendations regarding their handling of healthcare waste products and said Alberta's post-secondary institutions have improved their financial reporting overall.

Highlights from the Alberta Auditor General's Report:

Risky Business:Auditor General Merwan Saher highlighted a need for better guidance and oversight of the for-profit and cost recovery ventures entered into by Alberta's post-secondary institutions. While no mismanagement of specific ventures was highlighted, Saher said institutions are leaving themselves open to "financial loss, reputational damage and legal exposure."

Travel Alberta Expenses:Auditors found no documentation of business reasons for Travel Alberta executives expensing a five-night accommodation in Calgary or a $700 reimbursement to a board member for attending the Institute of Chartered Accountants' Lifetime Achievement Award Gala. Saher recommends Travel Alberta document its business reasons.

Uncollected Corporate Tax: Saher said the government has no strategy for collecting corporate taxes from a "significant" number of outstanding files, some in arrears for more than eight years. Saher said the government's tax and revenue administration must improve its compliance systems to deal with unfiled corporate income tax returns.

Healthcare Cards: Alberta Health needs to develop a proactive check to determine if Alberta healthcare cardholders are current residents of Alberta. Alberta lacks complete migratory information of the population, said Saher, meaning the department may pay healthcare costs for non-residents. Unlike many jurisdictions, Alberta health cards do not have an expiry date.

School Surpluses: Auditors found that Alberta's 74 school board jurisdictions have a combined surplus of $1.1 billion, but have not identified plans for the money. Saher said school board trustees need to be held accountable for how the funds are used. Some common uses include investments in classrooms, new capital assets or the funding of future deficits.

matthew.dykstra@sunmedia.ca

@SunMattDykstra