The P.E.I. government is doing an inadequate job of keeping track of contracts it has with outside information technology companies, and that is costing the province money, says the auditor general.

Auditor General Jane MacAdam tabled her annual report in the Legislature Wednesday, and one of the focuses of the report was IT contracting.

MacAdam noted the province spends $12 million a year on IT contracts.

In particular, MacAdam noted flaws in how the province dealt with companies when there was a long-term relationship. For example, MacAdam found expiry dates for contracts were not monitored, forcing government to continue service with a provider without a contract.

Lack of attention to expiry dates also led the government to renew a contract worth almost $1 million a year without a competitive process. In another case, MacAdam found the government could have saved $200,000 by providing services internally, rather than contracting them out, if it had time to properly review services as a contract expired.