Special Examination Report—Business Development Bank of Canada

At a GlanceSpecial Examination Report—Business Development Bank of Canada

What we examined (see Focus of the audit)

The Business Development Bank of Canada was established in 1974 to support Canadian entrepreneurship. The Corporation focuses particularly on small and medium-sized businesses. It reports to Parliament through the Minister of Small Business and Export Promotion.

Our objective for this audit was to determine whether the systems and practices we selected for examination at the Business Development Bank of Canada were providing it with reasonable assurance that its assets were safeguarded and controlled, its resources were managed economically and efficiently, and its operations were carried out effectively as required by section 138 of the Financial Administration Act.

Overall message

Overall, we found no significant deficiencies in the Corporation’s systems and practices. We found that the Corporation had systems and practices in place to deliver financing, investment, and advisory services to small and medium-sized businesses. We noted, however, that the total compensation range for the President and Chief Executive Officer was lower than the total compensation ranges for some of the senior executive positions. We also found that the Corporation was working to address the recommendations in the 2015 review conducted by the Office of the Superintendent of Financial Institutions. The recommendations concerned the Corporation’s risk management practices, including in the areas of validating financial and risk models and managing information technology risks.

What we found about …

Corporate management practices

Management of operations

Entity Responses to Recommendations

The Corporation agrees with our recommendations and has responded (see List of Recommendations).

Related information

Report of the Auditor General of Canada
Type of product Special Examination
Completion date 25 October 2018
Tabling date 3 December 2018

For more information

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