City audit eyes gift-card rules

Summary#

On May 26, 2026, Council approved this audit report on the consent agenda, receiving it for the Corporate Record. The decision did not adopt new expense rules; the report’s goal is to record the audit’s findings and City staff’s planned corrective actions.

  • The audit examined about 69,000 corporate credit-card transactions worth $53.2 million from January 26 to August 25, 2025.
  • City staff accepted recommendations to set clearer rules for gift cards, improve records and oversight, and update credit-card guidance. Their commitment date is September 30, 2026; the City Auditor’s Office will monitor follow-up.
  • Council’s decision passed 15 to 0. It did not itself require employees to follow new rules.

What it means for you#

  • City employees and cardholders: The decision does not directly change expense rules. City staff plan to clarify rules for employee-recognition gift cards and gift cards more broadly, including permitted uses, record-keeping, oversight and exceptions.
  • Taxpayers and the public: The report is now part of the City’s Corporate Record. The audit found that some gift-card purchases lacked recipient information, while most other tested expense controls were working as intended.

Money#

No cost estimate for the planned corrective work is available.

  • The $53.2 million is the value of transactions audited, not new spending approved by Council.
  • The audit reviewed $98,000 in gift-card purchases, including $30,352 for employee-recognition gift cards. The report gives no estimate of staff time or other costs to carry out the recommendations.

What is unclear#

  • The final gift-card policy and updated guidance are not included, so the exact rules and exceptions are not yet known.
  • The report sets September 30, 2026, as the commitment date but does not specify how completion will be reported publicly.
  • The audit used AI-assisted text extraction and keyword searches; the report does not explain how those methods may affect the findings.

Case for#

  • A case for receiving the report is that it puts audit findings and staff commitments on the public record, while leaving the City Auditor’s Office to monitor follow-up.
  • The audit found that most tested transactions had suitable documentation, travel and tips generally followed policy, and supervisors approved all transactions, though some approvals were late.

Case against#

  • The audit found that 38% of gift-card purchases lacked recipient information; for recognition gift cards, 13% lacked recipient information and 55% exceeded the guideline’s suggested $25 value. It also found no City policy specifically governing gift cards.
  • One concern is that Council’s action only records the report. The promised changes depend on City staff completing their commitments; the decision itself does not put new gift-card controls in force.

Votes

Calgary City Council, item 7.7 (Employee Expenses Continuous Auditing Project, AC2026-0321): That the Consent Agenda be adopted as follows: 7.7 Employee Expenses Continuous Auditing Project, AC2026-0321

For (100%)

Audit Committee, item 7.8 (Employee Expenses Continuous Auditing Project, AC2026-0321): That with respect to Report AC2026-0321, the following be approved: That the Audit Committee: - Receive this report for the Corporate Record; and - Recommend that Council receive this report for the Corporate Record.

For (100%)