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Newfoundland and Labrador Auditor Genreral John Noseworthy released his annual report on government departments on Jan. 26. ((CBC))

Newfoundland and Labrador is failing to properly diagnose and treat diabetes, according to an annual report released by the province's auditor general Wednesday.

Information from the National Diabetes Surveillance System and The Canadian Diabetes Association shows that 9.3 per cent of the province's population has diabetes - the highest of any jurisdiction in Canada.

Those sources suggest that number will increase to more than 14 per cent by 2020.

But John Noseworthy's report on government departments for the fiscal year ending March 31 said those estimates are probably low.

"Information from physicians relating to diabetes diagnosis and treatment is not tracked. As a result, the prevalence and cost information is understated," wrote Noseworthy. "The Department of Health and Community Services is not doing a good job of fulfilling its leadership role in preventing and managing diabetes."

The province, which has second highest rate of obesity and physical inactivity in Canada, spent about $254 million in 2010 on health care costs related to diabetes.

Noseworthy suggests the cost of diabetes in the province will to balloon to $322 million by 2020, an increase of 27 per cent.