The province is asking the RCMP to investigate the financial affairs of Cumberland County's former development authority.
HALIFAX – The province has called in the RCMP to investigate the financial affairs of the former Cumberland Regional Development Authority.
The referral comes as PricewaterhouseCoopers has completed its independent forensic examination of the development authority's financial transactions between fiscal years 2007-08 and 2011-12.
The development authority stopped operating in June 2013.
PricewaterhouseCoopers found gaps in controls and governance at the Cumberland Regional Development Authority and the Department of Economic and Rural Development and Tourism during the period examined.
The 700-page report contains the firm's findings and recommendations for improving the authority's governance, financial oversight and project management, processes at the Department of Economic and Rural Development and Tourism, and the evolution from regional development authorities to regional enterprise networks.
Government has accepted and is acting on the recommendations in its responsibility and control.
Regional development authorities are being replaced by six new regional enterprise networks, which government and municipalities are establishing throughout Nova Scotia. Recommendations about governance, financial oversight and project management are being incorporated in these new organizations.
The forensic examination was one of the recommendations of a report on the regional development authority from the Office of the Ombudsman in August 2012.
The department has improved processes, controls and financial oversight based on recommendations in previous reports, including the Ombudsman's report, the South West Shore Development Authority forensic examination, and auditor general reports on the Jobs Fund and other funding programs.
The PricewaterhouseCoopers report is available at www.novascotia.ca/econ/publications .