Auditor general defers examination of asphalt procurement practices05 December 2013
FREDERICTON (GNB) – Auditor general Kim MacPherson reported on her preliminary work in the area of pre-mixed asphalt procurement in her latest annual report, released in the legislative assembly today.
The report reflects audited financial statements for the fiscal year ending March 31, 2013. The objective of her examination was to determine if purchases of pre-mixed asphalt made by the Department of Transportation and Infrastructure were made with due regard for economy and transparency.
In explaining her selection of the project, she noted the significant level of expenditures in this area, the limited oversight and control through central purchasing, concerns raised by the public and private sector, and previous findings by her office.
"Purchases of pre-mixed asphalt for use in road repair and maintenance are exempt from the rules under the Public Purchasing Act," said MacPherson. "Pre-mixed asphalt purchases accounted for 54 per cent of the total $19.5 million in exempt purchases made by the Department of Transportation and Infrastructure during fiscal 2011-12."
MacPherson noted the department is developing a performance evaluation tool and implementing a process improvement project for its asphalt procurements. Given the changes underway by the department, and to add more value to the examination, MacPherson decided to defer a review until 2016.
Today's report contains two volumes. Volume I focuses on matters arising from the annual financial audit of the provincial government and Crown agencies. Volume II reports the results of Value for Money projects completed during 2013. Both volumes are on the Office of the Auditor General website.
● Office of the Auditor General