Alison Redford's so-called "Skypalace" is still under construction, but is going to be used for meetings, says Alberta Auditor General Merwan Saher.
Documents released shortly after Redford's resignation as premier in March showed she had been planning a swank taxpayer-funded penthouse for her and her daughter.
The penthouse was to be on the 11th floor of the Federal Building — an historic structure under renovation that will eventually house offices for all members of the legislature along with other government officials.
In addition to bedrooms, the penthouse was to have a guest and lounge area and a formal dining room for 12.
As of May, the total cost to taxpayers for consultation work on the suite was tallied at $173,000.
Alberta Tory leadership candidate Ric McIver has taken credit for killing the plan to build the suite, but Saher says the plan "continues to be built."
Story continues after the slideshow
The difference however, is that the bedroom furniture will be replaced with office furniture and that the government intends to use it for meeting rooms, reports the Edmonton Journal.
Wildrose leader Danielle Smith told CBC News McIver isn't being truthful with the public about the penthouse plans.
"He claims that he killed the Skypalace. Well, it looks to me like the Skypalace is still very much going ahead. You don't need to have grooming areas and washrooms if you are going to be putting something together as a meeting room."