Failure to implement 12-year-old recommendations leaves future projects at risk: audit Oversight, communication lacking, report released at police HQ inquiry states By: Joyanne Pursaga Posted: 6:02 PM CDT Wednesday, Apr. 15, 2026 Last Modified: 11:20 PM CDT Wednesday, Apr. 15, 2026 Updates

The City of Winnipeg has added oversight on major projects since construction wrapped up a decade ago on the Winnipeg Police Service headquarters but a trio of “urgent” changes are still needed, an auditing firm says.

The details of a 2026 KPMG report were released at a public inquiry into the headquarters project Wednesday, which finds some safeguards are still lacking long after the company released a highly critical audit of the project in 2014.

KPMG’s initial audit found the project was severely mismanaged, due to the city sometimes failing to follow its own policies, weak project management, unclear project roles and inadequate reporting, which it linked to budget overruns, schedule delays and a reduced project scope.

“The City of Winnipeg’s policies, procedures, and systems… lack adequate rigor and guidance for large-scale, complex projects.”

The firm’s update finds the city has made “substantive advancements” in delivering large projects since 2014 but still needs improvement.

“The City of Winnipeg’s policies, procedures, and systems to deliver projects provide adequate guidance for small to medium routine projects, but lack adequate rigor and guidance for large-scale, complex projects… in the range of $100 million to $500 million,” the report states.

It calls on the city to implement three “urgent” changes for projects in that price range, which include: tailoring “fit-for-purpose” governance structures to large projects; developing a matrix for project approvals and clarifying who has the authority to make decisions; and revising quarterly reports to ensure key performance indicators include more cost and schedule details. That measure calls for monthly, instead of quarterly reports, for the largest, most complex projects.

The report says these steps would address issues that present “a financial or reputational risk to the city and/or (a) project.”

Serious concerns with the headquarters project at 245 Smith St. have plagued the City of Winnipeg for years. The building opened in June 2016 at a cost of $214 million, well above its original $135-million price tag.

“Manitobans should have confidence that their hard-earned money is being invested in large public projects properly.”

The provincial government called the public inquiry into the project with a goal to ensure the same problems are not repeated on other major projects, such as the $3.1-billion north end sewage treatment plant upgrade.

“Manitobans should have confidence that their hard-earned money is being invested in large public projects properly and our government is acting to ensure future transparency and accountability. It’s important for the public to have a better understanding of what went wrong here and how we can prevent these situations from happening in the future,” said Manitoba Justice Minister Matt Wiebe, in an emailed statement Wednesday.

A request for the city to respond to the three new KPMG recommendations requests was not granted Wednesday.

That morning, a city manager told the inquiry the municipal government has implemented the 2014 audit recommendations.

“This (overall) audit is considered implemented from the city’s perspective. We work with our city auditor and they determine we meet the intent,” said Danny Tooth, the city’s acting manager of major capital projects oversight.

The new KPMG report assessed 25 recommendations from 2014, deeming 14 partially completed and three not addressed.

“Seven of these not addressed and partially addressed recommendations represent a high risk to future projects delivered by the city,” the report states.

For example, KPMG found the city still lacks frequent reporting on major projects’ key performance indicators.

Tooth said the city includes as much information as possible in its current reports and is seeking a consultant to provide new software that can quickly compile detailed reports, including the indicators.

“The monthly report is taking 28 days and three people … there’s a lot of information … so this is going to automate us,” he said.

“Seven of these not addressed and partially addressed recommendations represent a high risk to future projects.”

In December 2025, city council approved measures to better track megaprojects, those with cost estimates of $500 million or more, requiring monthly reports on them to city council’s executive policy committee.

KPMG also called for elected officials to have better access to independent subject matter experts on major projects. The city hired a chief construction officer in 2025 to address that concern, said Tooth.

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In an email, Winnipeg Mayor Scott Gillingham’s office said he believes the inquiry will highlight how much the city has improved its practices since the headquarters’ construction.

“The city has strengthened its procurement and project management practices, including commissioning multiple external audits and implementing their recommendations,” wrote spokesman Colin Fast.

Fast said the mayor has not yet reviewed the new KPMG recommendations.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga

Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.