IWK’s Chief Financial Officer resigns amid expense scandal
Posted Sep 25, 2017 07:47:23 PM.
Last Updated Sep 25, 2017 10:59:45 PM.
This article is more than 5 years old.
HALIFAX – The IWK Health Centre confirmed Monday evening its Chief Financial Officer has resigned.
Stephen D’Arcy had been on paid leave from the Health Centre since a third-party review of its expenses was released last month, which found CEO Tracy Kitch expensed over $40,000 in personal charges to the hospital.
D’Arcy submitted his resignation to the board during its meeting Monday, which was accepted and said to be effective immediately.
Kitch resigned the week before the review was released with the hospital’s board citing personal reasons.
An email from Board Chair Karen Hutt sent to staff Monday evening and obtained by News 95.7 informed staff of that the board had accepted Darcy’s resignation “in order for the organization to move forward and ensure confidence around both the Nova Scotia Auditor General’s review and the police investigation.”
The email said Amanda Whitewood would continue to serve as Interim CFO for the next six months.
Nova Scotia Auditor General Michael Pickup announced last week his office is investigating finances at the IWK and Regional Police also confirmed they’re looking into potential financial mismanagement at the request of the board.
Pickup said his report should be ready by spring, while Regional Police would not comment on any aspects of the ongoing investigation, including potential suspects. A complaint is being investigated by HRP’s Financial Crime Unit.
Hutt wrote that a police investigation team is being assigned and “we are handing over all related files.”
She said a review is underway on how to implement all 14 recommendations made in an external review of finances by Grant Thornton, with the board expecting weekly updates from management on progress.
A review of the hospital’s travel and hospitality policy is also underway, according to Hutt, who said training will be set up in the future when the new policy is in place.
In her email, Hutt thanked “every single member of the IWK community – for all that you do to ensure the best care for the children, youth and women we serve.”
“This has been a difficult time, however we have the collective strength to get through this together, learn from it and make the organization better,” she wrote.
