Capital Health uncovers $170K 'discrepancy'
2nd worker suspended in separate case
Last Updated: Thursday, June 17, 2010 | 9:38 PM AT
CBC News
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Amanda Whitewood, CFO of Capital Health, said the larger sum of money has not been recovered. (CBC)Nova Scotia's largest health authority has fired one of its business office employees and called for a police investigation after an internal audit revealed a financial "discrepancy" of nearly $170,000.
Amanda Whitewood, the chief financial officer for the Capital District Health Authority, said a second employee has been suspended without pay following the discovery of a discrepancy worth less than $5,000 in the accounts payable department.
The authority issued a statement Thursday saying the incidents are unrelated.
"After informing our community at Capital Health today, I have received tonnes of emails describing the level of shock that is prevalent throughout our community today," Whitewood told reporters Thursday afternoon.
The alleged theft of just under $170,000 was caught by an internal spot check within the organization. Whitewood said Capital Health had been investigating since March and turned the file over to the Halifax Regional Police on Wednesday.
The employee in that incident has been fired.
Whitewood would not comment on whether the alleged theft was a lump sump or over a number of incidents.
"I can't comment on the amounts in any detail or how they may have been portioned," she said.
The chief financial officer also would not comment on whether it was a cash theft, or whether the discrepancy was caught through a weekly, monthly or yearly audit.
She said the missing money would have no impact on patient care.
"If we are in a position where we are unable to recover any amount of those funds, then, we are a large organization and we'll find a way to absorb it that doesn't impact patient care," Whitewood said.
Smaller amount recovered
The second "discrepancy" of less than $5,000 was caught by a bank. They contacted Halifax Regional Police at the end of May, who in turn informed the Capital District Health Authority.
The employee in that case has been suspended without pay.
Whitewood said the organization is waiting for more information from the police before they decide whether to take further disciplinary action. She said the money in the second case had been recovered.
"We'll continue to ensure our internal processes are as rigorous and as well known as possible, because part of the equation on internal discrepancies is to ensure that people know that you're watching," she said. "The organization is watching."
Both employees were interviewed by Capital Health staff, but provided no explanation for the discrepancies, Whitewood said. She said the employees would have been subject to criminal record checks and the organization is exploring whether it should also do credit checks for workers in its financial offices.
This is not the first time there have been financial discrepancies in Nova Scotia's health authorities.
In April, a Nova Scotia man pleaded guilty to defrauding three health boards of nearly $400,000. Cary Lee Hollett, 42, will return to court July 21 to be sentenced in that case.
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