Office of the Auditor General
September 12, 2018

Release of Special Report on the Management of the Procurement of Goods and Services at the Newfoundland and Labrador English School District

Auditor General, Julia Mullaley, today released a special report on the Management of the Procurement of Goods and Services at the Newfoundland and Labrador English School District (NLESD). The audit covered the period July 2011 to June 2016, and was focused on the Facilities Branch in the Eastern region of NLESD. This report was completed in response to Government’s request to the Auditor General in April 2016.

The report highlights pervasive non-compliance with NLESD procurement policies and the Public Tender Act. There was a lack of an open and transparent procurement process, including in the selection of vendors and establishment of fair and reasonable prices, or best value, for public goods and services. Significant deficiencies in internal controls were identified, and a number of known indicators of unethical behaviours and/or possible fraud were highlighted. The report further noted that the Board of Trustees and senior management had not exercised the required oversight over NLESD’s internal control environment.

“The lack of oversight of NLESD’s control environment and lack of action over the years to address known internal control deficiencies and disregard of policies, significantly increased the risk of errors, unauthorized actions, unethical behaviour and fraud.” – Julia Mullaley, Auditor General of Newfoundland and Labrador

The full report is available on the Office of the Auditor General website at

www.ag.gov.nl.ca/ag/allReports.htm

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Media contact
Nancy King
Office of the Auditor General
709-729-2700
nking@oag.nl.ca
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2018 09 12                              10:35 a.m.