The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor An audit that found debatable spending practices within the NRHA helped prompt provincial reforms to the regional health authority system. In addition to cutting six RHAs through amalgamations, the NDP government is set to cap RHA executive salaries and require their CEOs to post their expenses online. Health Minister Theresa Oswald told the Winnipeg Free Press that the province was motivated, in part, by a financial audit of the NRHA released last year. 'Nor-Man, and what we saw there, did contribute to our decision-making, absolutely,' she said. The Free Press detailed the audit last week, more than four months after The Reminder reported at length on the 40-page document. Among the costs singled out in the audit: a $968 dinner for staff and board members, a $1,058 gym membership in Winnipeg for former CEO Drew Lockhart and undocumented vehicle expenses of $1,100. The audit, ordered by Oswald herself, urged a number of changes to address financial concerns identified within the NRHA. Doug Lauvstad, chair of the NRHA board, told the Free Press the RHA has accepted and implemented all of those recommendations. See 'Examp...' on pg. 6 Continued from pg. 1 'We know that policies needed to be tightened up and certain actions taken to ensure that appropriate approvals were done and in the right order,' he said. For her part, Myrna Driedger, PC health critic, told the Free Press that the audit 'is a glaring example of government failure to properly provide oversight over health-care spending.' The province is merging the NRHA with the Thompson-based Burntwood RHA to create the Northern Health Region for all of northern Manitoba minus Churchill. The Northern Health Region and the other amalgamated RHAs should be established by the end of May, Oswald said in a news release. Along with the mergers and new rules for executive pay and CEO disclosure, the province is legislating the creation of new 'Local Health Involvement Groups.' Give voice The groups will be designed to give communities a voice in health-care decisions. RHAs will also have to consult with residents in their regions on community health assessments to identify the health needs of communities. There will also be restrictions on the rehiring of former senior executives in RHAs, hospitals and other health corporations. And any financial surpluses generated by health organizations will have to be funneled back into health services. All RHA boards affected by the mergers _ including those of the NRHA and Burntwood _ have approved the pending amalgamations. Had they not, the mergers would have been forced. Once the new RHAs are in place, interim boards will be established in each region to begin work such as appointing new CEOs. Permanent boards, composed of members of existing RHA boards, will be appointed soon after to govern the new RHAs as they move forward. The province says the amalgamations will save $10 million over three years as up to 35 high-level RHA employees are laid off and the number of board members are reduced. Financial practices Conducted by the Manitoba government's Finance department, the NRHA audit examined the 2009-10 financial practices of the Flin Flon-based organization. 'Some of the expenses claimed were not as fiscally prudent as would generally be expected and were far in excess of allowable meal allowances,' read the report. The report cited as an example a $915.21 expense for nine NRHA officials and one of their relatives to dine at an upscale restaurant in Winnipeg in June 2010. The taxpayer-funded tab worked out to $91.52 per person. According to the report, Lockhart, said the dinner was attended by himself, his wife, who was also a senior NRHA employee at the time, two senior managers, five board members and a relative of a board member. Added to the dinner tab was another $42.93. Initially auditors were informed this bought supper for the Lockharts, but after questioning why there was a second dinner expense for the same night, they were told it was in fact for pre-dinner appetizers for Drew Lockhart and three senior managers. The audit also found Lockhart, who quit as CEO in May 2011, 'inappropriately' claimed and received reimbursement for a $1,058.40 family membership at the Winnipeg YMCA/YWCA. 'We were informed that the claim was submitted and approved based on a provision in the CEO's contract to be paid an allowance of up to $1,200 for the cost of professional dues and memberships,' wrote the auditors, 'as (the) NRHA indicated that no other professional membership dues had been submitted by the CEO for reimbursement.' The report said the gym membership, claimed in February 2010, 'may be questionable' as an allowable professional expense. Lockhart further claimed $1,100 in 'unsupported' vehicle expenses between April and June of 2010 without submitting a statement of vehicle mileage, the audit states. 'Not maintained' But Lockhart 'has indicated that a detailed mileage log is not maintained.' His claim was based on the NRHA's mileage reimbursement policy. Moreover, the audit uncovered a 'duplicated' claim for a hotel room where Lockhart and his wife stayed in May 2009. The money has since been repaid. Nonetheless, the report said no 'improprieties' were disclosed, even though the gym membership reimbursement may be debatable. But auditors 'were unable to review details of the CEO's 2009/10 expense claims due to the overall lack of documentation.'
