A report published by the Yukon government's audit services branch says officials have not met expectations when it comes to improving the territory's pharmacare and extended health benefits program.

The most recent audit follows up on 14 recommendations made in 2008 related to management, program costs and claims processing.

Overall, six of the 14 recommendations are considered fully implemented, while four are listed as partially implemented.

"With eight of the 14 recommendations not implemented in full, we cannot report that progress has been made in line with planned expectations,” the audit concludes.

Of the recommendations which are not currently in place, three relate to the territory's agreement with the Pharmacy Society of Yukon.

The original report recommended the Department of Health and Social Services make a concerted effort to negotiate a new pharmacy agreement with the Pharmacy Society of Yukon.

It also suggested the department review the reasonableness of the mark-up costs which can be billed by retail pharmacies for drugs in the Yukon.

Thirdly, it recommended the pharmacare office conduct periodic on-site audits of pharmacies across the Yukon, once the department has a new agreement.

The scope of these reviews would include drug pricing and supplier pricing arrangements, the audit said.

The territory has been without a new pharmacy agreement since its original agreement expired in May 1997.

Pharmacies and the department continue to operate as if an agreement was in place.

The original 2008 audit found that under the terms of this agreement, the Yukon government is paying a higher mark-up rate on the cost of drugs than other jurisdictions.

According to the audit, management has reported that a final options paper on an agreement with the Pharmacy Society of Yukon will be presented to government for consideration in the current 2011-12 fiscal year.

The last recommendation to have not been implemented suggested that the department develop a plan to integrate all drugs purchased through various programs into the check and control processes of the new pharmacare system.

Recommendations which are now it place following the original report include improvements to invoice processing speed, improved security messures for records and documets and improvements in the classification of records.

Given the number of audit recommendations still in progress, the report asks the Department of Health and Social Services provide a status update to the audit committee at the end of the 2011-12 fiscal year.

Both the Liberals and NDP have pointed to the report as an example of the government's mismanagement of the health care system.

"I think this is one more example of a Yukon government that prides itself in public as being good managers and continues to be told by both internal and external audits that they are not,” said Liberal leader Arthur Mitchell.

This internal audit comes on the heels of the February 2011 report on the Yukon's health care system by the auditor general. It recommended the Department of Health and Social Services institute a process for monitoring departmental and program costs.

"The audit points out the need to get a greater handle on rising drug costs and their impact on the sustainability of our health care system,” NDP Leader Liz Hanson said in a statement Tuesday.

"This government has a track record of neglect and denial when it comes to stewardship of health care.”

Despite a request to do so, the government did not make Health and Social Services Minister Glenn Hart available for comment to the Star either Tuesday afternoon or today.