Auditor general finds some P.E.I. COVID aid delivery didn't get proper oversight

Prince Edward Island's independent financial watchdog has taken a look at more COVID-19 aid programs delivered by the Dennis King government, and noticed a few problems.

Auditor General Darren Noonan's office was asked to make sure the government complied with its own financial safeguards as it started to offer citizens and businesses financial aid as the pandemic was still in its first weeks, back in April of 2020.

In all, the province spent $67 million from its $88.6-million contingency fund between April 1, 2020, and March 31, 2021, Noonan's report noted.

The assessment work was broken down into three phases, and Noonan delivered his report on Phase II this week.

It includes an assessment of provincial loan programs, "as well as the remaining program payments funded by the COVID-19 Emergency Contingency Fund with application deadlines after Aug.31, 2020."

The conclusion?

"The Province of Prince Edward Island obtained appropriate authorizations for financial support programs initiated in response to COVID-19," Noonan wrote.

However, the report added:"Appropriate oversight and controls were not always maintained over disbursements made under these programs."

Findings included:

• Five programs were not approved before they were either announced or implemented.
• The province didn't have Treasury Board approval before making changes in eligibility criteria and granting program extensions for two programs.
• "For one program, our testing found two applicants who were approved, and funding was provided, even though eligibility criteria were not met." The organizations or individuals involved were not named in Noonan's report.
• Where third-party vendors helped deliver programs, "service contracts were not in place for eight of the nine vendors tested."
• A formal assessment required on the delivery of all COVID-19 financial support programs was not done in the case of five programs.

The auditor general's office made two recommendations after examining the books on these programs.

It wants P.E.I.'s Treasury Board to follow up with the departments involved to make sure they know they need to follow official policy at all times.

The second recommendation urges Treasury Board and cabinet to formally assess all COVID-19 aid programs with an eye to improving "the design and delivery of future government emergency programs."