THEBACHA/FORT SMITH - The Town of Fort Smith has received a long-awaited forensic audit report.

Mayor Janie Hobart: some residents of Fort Smith may be frustrated that details of forensic audit can't be released. - NNSL file photo

The audit's recommendations to ensure proper financial oversight in the future were released to the public on Aug. 30 via the town's website.

However, the detailed results – known as Part 1 – of the audit will remain confidential.

The previous town council commissioned the forensic audit last year as a result of controversial payments to Roy Scott, its former senior administrative officer (SAO).

Mayor Janie Hobart said the details of the audit cannot be released because it deals with personnel issues and because of a settlement agreement with Scott.

"We have to honour that agreement," she said. "That's a legal and binding document."

A Town of Fort Smith news release noted no future legal action is available due to the agreement between Scott and the former mayor and council.

Hobart said she could not discuss what's in that agreement, but it does not allow the town to reveal certain information.

"I would say there will be some people frustrated by the fact we can't release Part 1," she said, although she added others will want the town to move forward.

As highlights, Hobart points to recommendations dealing with town council and its roles and responsibilities, and its need for more training to carry out its oversight responsibilities.

She also said there are recommendations that checks and balances be in place for financial matters.

"To me, those are the two big ones that come out of this report," she said.

Hobart said the town has to realize there were problems with compliance to administrative practices, policies and bylaws in the past and to make sure it doesn't happen again.

Some of deficiencies identified in the report have already been addressed by the town. An action plan is being created to implement the remaining recommendations.

The audit was conducted by Yellowknife accounting firm MacKay Financial Services Limited.

It looked at the period from Jan. 1, 2000, to March 27, 2009.

Scott was suspended as SAO in March of last year and dismissed last May after 16 years in the position.

That was after it came to light he had received a number of unusual severance payments, bonuses, education allowances and other payments since 2000 totalling nearly $500,000.

Scott is now administrator with the District of 100 Mile House in British Columbia.