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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.

    - 30 -

    Media contacts:

    Tara Power
    Director of Communications
    Department of Education
    709-729-0048, 727-5953
    tarapower@gov.nl.ca
    Roger Hulan
    Communications Specialist
    College of the North Atlantic
    709-643-7938
    roger.hulan@cna.nl.ca

    2010 10 12                                                      11:35 a.m.
     


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