More than $58K missing from North West River town council

North West River, a central Labrador town of about 550 people, is trying to understand how so much of its money could go missing.

It's selling off assets to cover the cost of the investigation.

CBC News has obtained copies of financial audits from 2014 and 2015 that show $58,147 unaccounted for.

Results of a 2016 audit, expected later in February, will likely push that figure higher.

Coun. Gordon Rendell said when council talks about the total amount, it usesan estimate of $80,000.

Problem noted 2 years ago

The problemwas brought up on public record for the first time at a specially called council meeting on March 7, 2016.

"Cash is coming into the office, but not going into the bank," state minutes from that meeting.

The challenge for auditors is to find out if it's a matter of poor record-keeping, but records are missing too.

According to the minutes of the March 2016 meeting, council noted that it's part of the town manager/clerk's job to find the documentation,"as she is responsible for collecting the money."

When a councillor asked, "Where is the information is it in the safe?" the manager/clerk responded, "Yes, some is in the safe and some stuff I bought with the cash," according to the minutes.

The auditors said that there is no accounting for a lot of the cash that should have been deposited.- Council minutes May 2016

The issue was discussed again at a town council meeting two months later, in May 2016.

"There has been no petty cash book or Excel journal and the manager/clerk did not know she had to keep this record.Therefore the proper procedure[s] for cash disbursements were not carried out for 2014, 2015 and 2016," the minutes from that meeting state.

"The town Visa had some questionable expenditures and lacks some receipts," the minutes continue.

"The auditors said that there is no accounting for a lot of the cash that should have been deposited It is going to be very difficult to piece this together."

According to the council minutes, the town manager/clerk could not provide the records.

During the document recovery process, "She quit, without notice, saying it was too stressful," the May 2016 minutes read.

Auditing costs add up

The North West River council hasn't filed a complaint with police, according to the RCMP.

However, a police spokesperson said an individual had filed a report indicating tax money paid to the town had been "redirected."

Meanwhile, the cost of auditing the town's finances is adding up.

Grant Thornton receipts available in council meeting minutes amount to roughly $120,000, so far.

The province has chipped in $8,100 to help. But the town needs big money, fast. In October 2017, council passed a motion to auction off parcels of serviced land.

"We need to sell those two lots on the sliding hill a.s.a.p. to satisfy our obligations with paying the auditors," minutes from that month read.

The minimum bid was set at $40,000. Bids were set to close Nov 15.

"Council was advised that time is of the essence, as the monies from the sale of these lots is earmarked for a specific bill payment," the October minutes said.

Confirmation of the sale hasn't been documented in subsequent meeting minutes and council wouldn't confirm the sale of any property.

The mayor and councillors refused to do a recorded interview.

Nearly two years after resigning, the former town manager/clerk in North West River is now employed at a similar job in Rigolet.

CBC News called the woman to ask about the ongoing audit in North West River and was told, "No comment."