Missing money total climbing in North West River, now $71K

The central Labrador town of North West River is missing $71,851 and the RCMP suspects the money was stolen.

CBC News previously reported $58,147 was missing from 2014 and 2015, but a newly-released audit shows another $13,704 disappeared in 2016.

"It was a little bit shocking," said Mayor David Kieser.

Council commissioned Grant Thornton to audit the town's books for the years 2014-2016. The auditors offer no speculation about the missing money; describing it only as "bad debt" money which is unlikely to be returned.

Money not making it tobank

Town officials first noticed financial discrepancies in 2016 and then-mayor Ernie McLean called aspecial meeting in March of that year.

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

Minutes from a May 2016 meeting show the town manager/clerk was pressed to produce receipts and other documentation. She couldn't do so and quit her job without notice.

Cash-strapped town

Finding the missing money has proved an expensive task for the town, population 547.

"The audits were astronomical," said Mayor Kieser."It was a huge burden for us and it was a lot to ask of the townspeople."

• More than $58Kmissing from North West River town council

To cope with the costs, which are over $120,000, council advertised parcels of town-owned land for sale and agreed to forgo councillor remuneration in 2018.

The provincial government gave the town $76,585 to help with the auditbills.

"That's a massive help for us. It gives us a lot of room to breathe," said Kieser.

Investigation continues

The mayor says the council turned over copies of the audits to the RCMP earlier this year.

"I can confirm that the Town of North West River did lodge a complaint with the RCMP in Sheshatshiu on March 14th, 2018 with respect to theft of money during the time period between 2014-2016," RCMP Cpl. Rick Mills said in an email.

We hope to find whether it is theft, whether it isn't, but we also want to learn from this experience.- Mayor David Kieser

Mills said the investigation is ongoing.

Kieser, who became mayor in September 2017, said dealing with the audits has been stressful for all members of the council.

"You think about the townspeople, you think about how hard it is to earn money, you think about how meaningful every dollar is," he began. "You immediately feel a sense of responsibility and an urge to make things right."

But the mayor isn't holding out hope the missing money will ever turn up.

"We hope to find whether it is theft, whether it isn't, but we also want to learn from this experience."

Kieser said the council sought recommendations from Grant Thornton on how to better manage its money. They've also begun monthly bank reconciliations to ensure funds are accounted for.

In March, council passed a motion to require a criminal record check from all future town employees.

"We're going to try and make every effort to protect what money comes in," Kieser said.