Thank you, Mr. Speaker. The Standing Committee on Government Operations held its public review of the Report of the Auditor General on Contracting for Goods and Services in the Northwest Territories and commends it to the House.

The Standing Committee on Government Operations held its public review of the Report of the Auditor General on Contracting for Goods and Services on August 17, 18, and 19, 2009. The committee would like to thank the Auditor General, Ms. Sheila Fraser, and her staff for their work in preparing the report and in assisting the committee with its review. The committee would also like to thank the deputy ministers and staff from the departments of Finance, Health and Social Services, and Public Works and Services; and the assistant deputy minister of Transportation and staff for their presentations.

General Comments

The committee’s mandate includes the examination of the annual financial statements and Public Accounts of the Government of the Northwest Territories (GNWT) and the reports of the Auditor General. The committee wants to ensure that the GNWT demonstrates its accountability to the public. With regard to procurement and contract administration, the committee is pleased to report that the Auditor General’s review is favourable. Nonetheless, the Auditor General identified some errors and omissions and provided departmental

management with very useful information to inform future actions related to procurement and contract administration. This is an opportune time to improve systems given the implementation of a new System for Accountability and Management (SAM).

The Auditor General’s Report on Contracting for Goods and Services is based on a review of the fiscal year 2007-2008. It was tabled on June 2, 2009, during the Third Session of the 16th Legislative Assembly.

The Office of the Auditor General reviewed the GNWT’s process of awarding and administering contracts. The Auditor General assessed a sample of 120 contracts for goods and services, 40 from each of three departments -- Public Works and Services, Health and Social Services, and Transportation. These departments account for 77 percent of the total dollar value and 44 percent of the total number of all contracts the GNWT issued that are over $5000.

The Auditor General found some shortcomings in the administration of contracts and made five recommendations addressing contracting policy and the legislative framework, and performance and quality assurance. The government agreed to all of the audit recommendations and prepared an action plan to address the recommendations.

The committee was pleased with the government’s action plan but found that some of the management responses were vague. The committee anticipates more details in future action plans provided to the committee. The committee wants to ensure that the intent of the recommendations in the report is addressed.

Mr. Speaker, I would now like to pass the floor over to my colleague, Mr. Abernethy.