An internal audit of Summerhaven uncovered "numerous inefficiencies, deficiencies and irregularities" in the accounts, according to Acting Minister of Culture and Social Rehabilitation Nelson Bascome.

However, John Powell, Chairman of the Board of Trustees for facility said they would be seeking legal advice and may turn the matter over to Police.

Earlier this year Ianthia Wade, who had been the administrator of the facility for about 21 years, was suspended because of mismanagement and an investigation was initiated.

Yesterday Mr. Bascome stressed that the report, found no financial mismanagement by Mrs. Wade and said the investigation was completed after concerns by Mr. Powell were raised.

Mr. Bascome said: "This report was commissioned by the Minister of Culture and Social Rehabilitation on June 8 2008 amid concerns by the Summerhaven Chairman, Mr. John Powell alleging financial mismanagement by Summerhaven Administrator, Mrs. Ianthia Wade.

"This is a matter of great concern. This report seems to indicate that the Director was removed from her post without the benefit of due process."

According to Mr. Bascome the report also found that Summerhaven's use of the Government Grant for the two year period that ended on March 31, 2008 was in compliance with the letter of offer.

But that the Board of Trustees did not have an accounting system structured for income and expenditure receipts and payments to be properly identified and reported, which is contrary to the Government's General Terms and Conditions relating to grants.

The Summerhaven Trust, which is run by an independent board, receives a government grant to assist with its day-to-day operations. Other financial support comes from donations and a subsidy from the Bermuda Hospitals Board (BHB).

Each of the residents at the facility are responsible for paying their rent for the studio apartments and they are provided with two meals a day and 24-hour attendant care.

In the future, a Government-appointed administrator would oversee the grant and if the organisation wants to receive the funding, Minister Bascome said these other requirements would have to be met by the Board:

— return the administration to the status quo as at the date that the Administrator was purportedly dismissed.

— hold a meeting to elect a Chairman, as the current Chairman was improperly elected as stipulated in the Summerhaven Trust Act 1982.

— Ensure that annual Financial Statements are brought up to date.

— Ensure that proper accounting procedures are established and documented.

— Ensure that accounting inefficiencies, deficiencies and irregularities at Summerhaven are rectified as quickly as possible.

— Be informed of the requirements of the Summerhaven Trust Act 1982 and the stipulations of the General Terms and Conditions relating to Government Grants.

— Establish a procedure whereby minutes are kept, confirmed and signed.

— Reconcile Summerhaven bank accounts and scrutinise the number of accounts and the activity or inactivity of these accounts.

— Establish and implement a regular reporting procedure that requires the Administrator to report to the Board at least quarterly as to the operations and finances of Summerhaven.

— Establish regular meetings between the Administrator and the Chairman of the Board; and determine that such meetings occur not less than once monthly to address matters arising at and pertaining to Summerhaven.

— Investigate complaints of possible maladministration with regard to patient care as made to the Ombudsman.

Mr Bascome added: "I am eager to have all issues and conditions met in order that the Government might have comfort continuing its financial support to an establishment that caters to the well-being, care and housing of our physically challenged citizens."