‘Creative accounting’ to promote SAAQclic: former internal auditor

Those in charge of the SAAQclic project had “ambitious targets” and used “creative accounting” to boost the platform’s profitability, according to the former director of internal audit at the Société de l’assurance automobile du Québec (SAAQ).

Retired accountant Daniel Pelletier began his testimony Monday morning to the Gallant commission, which is attempting to shed light on the failures of the Crown corporation’s digital shift.

Pelletier headed the SAAQ’s internal audit department from 2016 to 2024. He recalled that his team had “hung up on certain elements” concerning projections of the profits that the SAAQclic platform could generate, following the conclusion of the contract in 2017.

In particular, the project team presented a figure of $175 million based essentially on budget forecasts that had never taken place in the past.

“We didn’t agree with them,” said Pelletier. We felt, to use our expression, that it was a bit of creative accounting.” An outside firm later came along and proved them right about these claims, the former director pointed out.

“We didn’t agree with them,” said Pelletier. We felt, to use our own expression, that it was a bit of creative accounting.” An outside firm later came along and proved them right about these claims, the former director pointed out.

At that time and in subsequent years, Pelletier and his team also often expressed reservations about the project’s schedule and costs, speaking of “ambitious targets”.

Before he took office, his predecessor warned the Board of Directors of the risks associated with the solution SAAQ had chosen to modernize its IT systems, namely a software package (ERP), according to a document submitted to the commission.

The Internal Audit and Program Evaluation Department based its decision on a study carried out by a consulting firm specializing in ERP. This showed that “cost overruns and delays are very frequent (…) and that the expected benefits are not always forthcoming”.

According to the Auditor General’s report, the SAAQ’s technological modernization project, also known as CASA, could cost a minimum of over $1.1 billion by 2027, or $500 million more than forecast.

During his testimony, Pelletier also mentioned the difficulties encountered by internal auditors as early as 2017 in obtaining information “at the right time” in order to carry out their oversight work on the project.

–This report by La Presse Canadienne was translated by CityNews