SERVICE NOVA SCOTIA/MUNICIPAL RELATIONS/TOWN OF BRIDGETOWN---Financial Audit Findings Released

A forensic audit commissioned by the province gives the Town of Bridgetown a clear understanding of its finances and gives council clear direction for the future of Bridgetown.

Based on the review of hundreds of customer accounts, the Grant Thornton audit, released today, Nov. 9, found the town lost $221,000 over five years.

"The people of Bridgetown now have a clear and accurate understanding of the true state of their town's finances," said Mr. MacDonell. "I hope these findings can help the town move toward a more positive and sustainable future."

One-hundred-and-thirteen-thousand dollars was misappropriated, $34,000 of which was subsequently returned. The town submitted an insurance claim for the remaining $79,000. Additional losses came from uncollected water and tax bills, poor record-keeping practices, and interest that cannot be collected.

The current town council submitted a five-year plan to pay off the deficit, which was approved by the province.

Bridgetown Council handed over all evidence related to the misappropriation to the RCMP.

"When we arrived in Bridgetown five months ago, there was an understandable sense of confusion and frustration," said Bridgetown Mayor Bob Fowler. "Since that time, residents and council have come together, passed a budget, and set a new tax rate. With the release of the forensic audit, we can now focus on the future of Bridgetown."

The forensic audit also provided comments on general issues, oversight protocols and best practice policy that may have reduced the risks for fraud in Bridgetown.

"Over the coming weeks, I will review these recommendations and share them with our town's task force," said Mr. MacDonell. "By sharing the lessons learned in Bridgetown, we can ensure that other small towns put the right policies and protocols in place to protect themselves and their residents."

In June, financial irregularities in Bridgetown's books were uncovered, including questions about recording payments of some residents' tax and water bills. These findings prompted the province to order, and pay for, a forensic audit.

The report can be found online at <a href+"http://www.gov.ns.ca/snsmr">www.gov.ns.ca/snsmr</a> .