The Nunavut Housing Trust was set up in 2006 to build more than 700 affordable housing units by 2010. Officials say they plan to build those units this year. (CBC)

Federal Auditor General Sheila Fraser says she's surprised by the size of the Nunavut Housing Trust's cost overruns, and will be following an independent audit that has resulted.

The Nunavut Housing Corp. announced last week that its housing trust, which was set up to build more than 700 affordable housing units in the territory, has overspent by $60 million over the past five years.

Fraser, who found many issues with the housing corporation in a 2008 audit, said she will watch the results of a full independent audit that is expected to produce more details about what happened at the housing trust.

"We will be looking to see the review that's going on now. We have indicated to government that we would like to be involved to some extent, at least to see the planning that's being done and obviously to see the results of this," Fraser said Monday.

"We would incorporate that into a follow-up audit that we would do eventually."

Housing corporation president Alain Barriault said poor budgeting, poor expenditure tracking and high labour costs led to the cost overruns.

Labour costs for the trust were, on average, 72 per cent higher than forecast, according to the housing corporation.

Officials say training 50 apprentices fell under the labour costs, and they had underestimated how much that would add to the total costs.