SOMBA K'E/YELLOWKNIFE - Work needs to be done on how contracts are administered within the three biggest departments in the GNWT, according to a recent report by the auditor general.

Sheila Fraser, Auditor-General of Canada, speaks at a press conference about her report on how the GNWT contracts for goods and services. - Andrew Livingstone/NNSL Photo

Sheila Fraser, Auditor-General of Canada, met with media Tuesday morning to present the findings of a review on contracting of goods and services by the GNWT's three largest contracting departments – Transportation, Public Works and Health and Social Services.

Fraser said most contracts were awarded fairly: Health received a grade of 75 per cent; Public Works was 83 per cent, and Public Works was rated at 96 per cent. But Fraser said administration of the contracts after they were awarded was weak.

"The policy framework should ensure that contracts are awarded in a fair, open and transparent manner," said Fraser.

"However, we noted some elements that would strengthen the policy framework were missing."

A large number -- 57 per cent of the contracts -- were administered incorrectly. Problems included goods or services that were received before a contract had been issued, contract changes were not issued in accordance with government policy, spending authority was exceeded and payments were approved before obtaining the required go-ahead.

"We found an administrative deficiency or weakness of some kind in a majority of contracts that we audited," Fraser said.

"That is the department's management of controls were not properly applied.

"No single problem was pervasive (and) the significant number indicated that controls were not enforced consistently."

On contract noted in the report, administered by the Department of Transportation, was originally awarded for $66,140, but changes to the contract were made for an additional $258,608, with only $100,000 of that money properly approved.

Fraser's recommendations included an independent dispute resolution process for suppliers be set up, for policy and guidance on contracting be streamlined in order to make it easier for staff to use and quality assurance should be strengthened.

"These issues are relatively easy to resolve," she said. "It's more of a question of employees needing to pay better attention and have a better understanding of the process and if there is a quality assurance system put in place across government it can be resolved very easily." The dispute resolution process would allow for complaints not resolved through already existing departmental processes to be addressed.

Fraser said the GNWT has indicated they agree with the recommendations, however, she would like to see some more specific details on how they will address what she found in the report.

She said the GNWT indicated it has a new independent dispute resolution mechanism, but details on how it will be established were not given. Fraser said she hopes more details will come out.

"It's up to the departments themselves to see how they want to do this and how they want to address the recommendations."