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2003 November Report of the Auditor General of Canada

November 2003 Report—Chapter 3

Case Study 3.2—Tour Cyclist Trans Canada

The earliest documentation in the file on the Tour Cyclist Trans Canada was a letter from CCSB's Executive Director to the event organizer, saying that the Government of Canada supported and was proud to be associated with the event. The letter went on to say, "The minimum amount of the sponsorship which will be allocated to this project will be in the amount of $1.4 million." The file contained no letter of request, no application for sponsorship funds, and no documentation or other analysis supporting the decision to enter into a contract with a communications agency to spend $1.4 million.

CCSB subsequently amended the contract, adding $400,000 to the $1.4 million sponsorship, plus agency commissions and taxes. We found no documented rationale for the additional amount. The communications agency had already certified that the event had taken place and that all aspects of the agreement had been respected. That being the case, it is hard to find a basis for the subsequent adding of $400,000 and associated commissions.