The province won't be conducting any audit of the Niagara Peninsula Conservation Authority.
In a letter to local councils, Ontario's Minister of Natural Resources Kathryn McGarry says she doesn't have the authority to conduct such an audit.
A number of local municipalities asked the province to step in after the release of a report done by a local citizen alledging mismanagement and suspect business practices at the authority.
Pelham, St. Catharines, Niagara-on-the-Lake, Port Colborne, Welland and Hamilton asked the province to step in.
The town of Wainfleet and City of Niagara Falls asked the NPCA board of directors to hire a third party to conduct an audit.
The NPCA board of directors cancelled their December meeting so they have yet to discuss the request made by Wainfleet and Niagara Falls.
They are set to resume meeting in January.