The Auditor General of Newfoundland and Labrador, Denise Hanrahan, today delivered a performance audit of the Innovation and Business Investment Corporation to the House of Assembly. The audit reports on findings and recommendations regarding the Corporation’s grant, loan, investment, and COVID-19 support programs and whether the programs were effectively managed and administered. The audit period was June 1, 2018 to December 31, 2021.
The audit concluded that the Corporation did not effectively manage all aspects of its grant, loans, and investment programs, thereby increasing the risk that ineligible businesses were supported or that funds were used for incorrect purposes. It was found that grant programs were not effectively managed and that applicants’ eligibility was not always confirmed, clearance checks not always completed, and cross-departmental coordination lacking.
The Corporation did manage its loan and investment assessment processes well. However, it did not manage executing and issuing loans and investments effectively. It was found that the required documentation to ensure applicants were not in arrears with government was not always obtained nor were financial checks always completed.
It was found that COVID-19 programs did not receive effective oversight, and as a result, some businesses received more funding then they were entitled to, while financial support was also given to ineligible organizations. There were also inconsistencies between the Corporation’s public and internal guidelines, which resulted in inconsistency across applicant funding decisions.
The audit full report, as well as an audit overview, can be found by visiting: www.ag.gov.nl.ca.
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“The public trusts that government departments, agencies, and Crown Corporations are conscientious stewards of public funds. The public also assumes that there are policies and guidelines in place that ensure programs operate effectively and efficiently. My hope is that the Innovation and Business Investment Corporation, as well as the Departments of Industry, Energy and Technology, and Tourism, Culture, Arts and Recreation, will pursue the recommendations outlined in my report in order to avoid similar issues with existing and future programming.”
Denise Hanrahan
Auditor General of Newfoundland and Labrador
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Chrysta Collins
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Office of the Auditor General
709-730-1568
chrystacollins@oag.nl.ca