Nova Scotia

Richmond County council agrees to forensic audit

Some members of the public have been calling for a forensic audit to examine the expenses of councillors and senior staff.

An annual audit by Grant Thorton flagged 20 issues of concern

Coun. Steve Sampson voted against conducting a forensic audit in December, but now says one should be done because of demands by the public. (Gary Mansfield/CBC)

Richmond County council has decided to go ahead with a forensic audit of its expenses after all, following several months of public pressure and concerns flagged by the municipality's auditing firm.

At a meeting Tuesday night, councillors voted unanimously in favour of a forensic audit that will examine expense claims and credit card charges made by council and senior staff going back five years.

The decision pleases St. Peters resident Germaine MacDonald. She led the effort to obtain 3,000 pages of credit card statements and receipts from the municipality.

"Whatever comes of that I think will give the residents of Richmond County a better idea of what we're spending our money on, and give us more confidence in our councillors," she said.

The issue first came up late last year, following an annual audit by Grant Thornton, which noted 20 issues of concern.

They included restaurant meal and hotel claims with too little detail, and claims for liquor, which are not reimbursable expenses under county policy.

Coun. Gilbert Boucher made the first motion for a forensic audit in December. The vote was tied 5-5, and so was defeated.

Councillor and former warden Steve Sampson was one of the most vocal critics of the motion at the time, arguing the county couldn't afford the cost of an audit.

"I certainly, for one, felt very strongly about the fact that both our auditing firm and Municipal Affairs officials felt that a forensic audit was not warranted," he said.

Public pressure for audit

In the meantime, a group of residents filed a freedom of information request in a bid to examine the books for themselves, and launched an online petition, pushing for the forensic audit.

Sampson said he now feels it's time to clear the air.

"I believe that we need to respond, yes largely to a public who continuously were demanding a more detailed audit, forensic or otherwise," he said.

"We have said all along, and I maintain, that there has been no criminal activity, there's been no fraud. And I certainly hope that at the end of the day that that's the conclusion that will come — I'm optimistic that it will be — and it will clear the air for everyone."

Sampson said the issue needs to be put to rest for the county to move forward.

"I think it is stalling the progress of the municipality and certainly relations amongst councillors and staff has been, for want of a better word, rather toxic."

Cost of audit unknown

He said there seemed to be consensus at Tuesday night's meeting to have municipal auditor Grant Thornton conduct the forensic audit. He doesn't know at this point what it will cost.

MacDonald said she believes it's worth it.

"If there's money that was spent and shouldn't have been, I for one would like to see that money come back into our coffers," she said.  

"Maybe if that is the case we'll have enough money to cover a forensic audit, or the forensic audit will be something that will help us as council and taxpayers going forward in terms of less wasteful spending, if there is such."  

Expenses under the microscope

The audit will be one of two examinations of Richmond council's expenses. At the request of St. Peters resident Gary Gibson, the Office of the Nova Scotia Ombudsman launched its own investigation.

Gibson said the forensic audit is also necessary.

"The reason being because with the ombudsman's office they don't have to release it, I don't believe," he said. "Whereas if there was one done by the county, that's public information and that has to be released."

Gibson is also hoping the audit will allow a new council to start work this fall with a clean slate. October's municipal elections will see Richmond County's council size cut from 10 councillors to five.

"This is a new start, a new beginning I guess for Richmond County," said Gibson. 

ABOUT THE AUTHOR

Holly Conners is a reporter and current affairs producer who has been with CBC Cape Breton since 1998. Contact her at holly.conners@cbc.ca.