PACP Committee News Release
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Standing Committee on Public Accounts |
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Comité permanent des comptes publics |
For immediate release
NEWS RELEASE
Good Practices Observed in Crown Corporations, But Improvements Are Needed in Corporate Governance
Ottawa, June 10, 2013 -
OTTAWA – The Office of the Auditor General of Canada (OAG) noted a number of good practices in its 2011 special examinations of Crown corporations, but it also noted areas where corporate governance could be improved, especially with respect to the range of skills needed for board governance, according to the Standing Committee on Public Accounts’ report presented today in the House of Commons by Committee Chair David Christopherson.
Federal Crown corporations are required to have a special examination carried out by the OAG at least once every 10 years. In its Spring 2012 Report, the OAG included the main points of three special examinations that were completed in 2011. The OAG did not find any significant deficiencies in the corporations’ systems and practices, but did note areas for improvement in corporate governance. In its study, the Committee examined the findings related to two of the Crown corporations audited: the Canadian Dairy Commission and the Canadian Race Relations Foundation.
In order to improve the Canadian Dairy Commission’s corporate governance, the Committee recommends – in its report – that the Commission develop an inventory of skills required of board members, and specify its policies and practices to manage conflicts of interest. As increasing the size of the Commission’s three-member board of directors may help alleviate these issues, the Committee recommends that the Department of Agriculture and Agri-Food review the Canadian Dairy Commission Act with regard to the size of the Commission’s board of directors.
The Canadian Race Relations Foundation also had issues relating to the specific skills and experience required of its board members. The Committee recommends that the Foundation inform it when an individual with appropriate investment expertise has been appointed to its board of directors. As the Foundation relies upon an endowment to finance its operations, the Committee also recommends that the Foundation report to it on the extent to which the Foundation is meeting its investment objectives.
The Committee notes that a number of good governance and administrative practices were observed in both corporations. This finding is particularly impressive for the Foundation, as it was the Foundation’s first special examination and it is a small organization with only six employees.
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