The province has delivered a message to the board of directors of Iris Kirby House and its fundraising foundation: answer questions, and meet an array of conditions, or run the risk of losing government financial support.

"We have had concerns around the management and governance of Iris Kirby House," Health Minister John Haggie said in a late afternoon press release.

"Over the past few months, we have met with the boards to resolve these issues; however, they have not yet been resolved."

'The issues are around tracing where the public money has gone. It may simply be a matter of accounting and auditing, and that's why we've suggested putting their auditors in a room with our comptroller general.' - Health Minister John Haggie

In an interview with CBC News, Haggie shed more light on exactly what those issues are.

"The issues are around tracing where the public money has gone," Haggie said. "It may simply be a matter of accounting and auditing, and that's why we've suggested putting their auditors in a room with our comptroller general."

The province says "several conditions must be met" before any additional funding is provided to the shelter.

They include:

  • finalizing a service agreement with Eastern Health, which hands out the cash;
  • providing answers to questions on financial reports to the satisfaction of the province;
  • having auditors for the boards meet with the comptroller general;
  • submitting a report by an independent facilitator on workplace issues at the shelter; 
  • expanding board membership to include additional members of the public acceptable to both the province and boards.

Cathy Bennett, the minister responsible for the Women's Policy Office, said she hopes the province's questions will be easily answered by the board.

"And that will help us ensure, as the minister has said, that there is accountability to the funds that Iris Kirby House is provided, to do the very important work that they do," Bennett said in an interview.

Last year, Iris Kirby House received $2 million through the public purse to fund the operations of two shelters, in St. John's and Carbonear.

Iris Kirby House had asked for that amount to be bumped to $3 million this year.

Government officials say that hasn't happened.

Instead, Iris Kirby House has received basic operational funding that will last up to the end of September.

Iris Kirby House logo CBC

Iris Kirby House operates transition houses in St. John's and Carbonear for women and children escaping violence. (CBC)

Past stories about financial accountability

CBC News first reported on financial transparency issues at Iris Kirby House a year and a half ago.

The most recent story ran this week.

Iris Kirby House's board of directors told CBC News late Wednesday afternoon that it was working on a press release in response to the statements by the ministers.

Meanwhile, the government won't say at this point what will happen if its conditions aren't met.

"Certainly we'll have to cross that bridge when we get to it," Bennett said.

"But I'm very optimistic after the meeting we had with the board today, as I'm sure the (health) minister is, that the board is eager to provide the answers to the questions that we've asked."    

CBC News Investigates