Education
October 12, 2010
Findings of Review into Over-billings at
College of the North Atlantic - Qatar Released
The Honourable Darin King, Minister of Education, today released the
findings of a review of over-billings made to the State of Qatar by
College of the North Atlantic. Minister King was joined by Bruce
Hollett, interim President of College of the North Atlantic, who
outlined the college's response to the recommendations in the report.
The Provincial Government initiated the review to find out exactly
what led to the errors occurring at College of the North Atlantic's
Qatar campus. The review found that the college paid employees in
accordance with signed contracts, however some salary offers were higher
than allowed under the Comprehensive Agreement with the State of Qatar.
As a result, the State of Qatar was over-billed by the college by $5.5
million.
"Essentially the review found that the college made errors in the
interpretation and application of the Comprehensive Agreement," said
Minister King. "Some employees were offered more than the Comprehensive
Agreement allowed and the State of Qatar was charged fees based on these
salaries. Discussions are taking place with officials in Qatar to
determine how this money will be repaid."
The errors made by staff of the college were the result of a combination of
factors including:
The need to offer competitive salaries;
Certain language and terms in the Comprehensive Agreement
being vague and open to interpretation;
Certain decisions made on the varying interpretations of the
Comprehensive Agreement were not documented or discussed with
Qatar;
Matters of interpretation of the Comprehensive Agreement were
not brought forward to the Joint Oversight Board for
consultation and clarification; and,
Audit requirements provided for under the Comprehensive
Agreement were not met.
The report also found weaknesses in the college's oversight,
management and approval practices related to the billings as well as
clerical errors in spreadsheets and manual calculations. The review
found no evidence of deliberate misstatement of the amounts under
review.
The report includes recommendations to correct the weaknesses
identified within College of the North Atlantic as it relates to
operations at the Qatar campus. The Provincial Government also released
the official response by the college to the recommendations which
include a detailed breakdown of action items.
"Recommendations on process and practice have been made. In fact,
many have already been implemented and we are working to implement the
remainder," said Mr. Hollett. "Our partners with the State of Qatar
understand this was an unfortunate mistake, and appreciate that the
college is making the appropriate adjustments and putting processes in
place to avoid any future occurrences. They have thanked us for
identifying the issue."
Minister King also announced additional safeguards that will be put
in place by the Provincial Government regarding the college's Qatar
campus. The Provincial Government will require regular updates on the
status of implementation of the recommendations and will require the
college to submit annual audited financial statements and management
letters for the Comprehensive Agreement and the Qatar operation.
"I have full confidence that the protocols within College of the
North Atlantic will be stronger because of this process," said Minister
King. "They have been fully cooperative during this review and have
shown their commitment to addressing the issues identified in the
report. In addition, the new safeguards we are requiring of the college
will give us and our residents another level of protection against these
types of errors happening within the college in the future."
Chartered accountant Gerry Shortall was selected by the Provincial
Government in May 2010 to oversee the review which included a review of
contracts, identification of how the errors occurred, and verification
of the overpayment calculations.
The reports, which include a summary of findings and recommendations,
can be viewed at www.gov.nl.ca/edu.
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