Special Examination Report—Canada Post Corporation

At a GlanceSpecial Examination Report—Canada Post Corporation

What we examined (see Focus of the audit)

The Canada Post Corporation was established as a Crown corporation in 1981. It has exclusive privilege to collect, transmit, and deliver letters within Canada.

Our objective for this audit was to determine whether the systems and practices we selected for examination at the Canada Post Corporation 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, during the period covered by this audit, we found that the Canada Post Corporation had in place good practices to oversee the running of the Corporation and to manage its operations.

We were concerned that circumstances outside the Corporation’s control limited its ability to make long-term strategic decisions. The circumstances included delays in several areas that were within the government’s control: appointing new members to the Corporation’s Board of Directors, along with a new President and Chief Executive Officer; approving the Corporation’s annual corporate plans; and providing a definitive, long-term direction on the solvency of the Corporation’s registered pension plan.

These delays had significant impacts on the Corporation. For example, the significant turnover in Board membership—in this case, the appointment of 6 of 11 members within one month—resulted in a loss of corporate knowledge and continuity. This made it challenging for the Board to effectively oversee and guide the activities of a large and complex organization operating in a rapidly changing environment. This difficulty was compounded by the absence of current, government-approved corporate plans to guide the Corporation’s long-term decision making.

In addition, the government publicly communicated a new vision for the Corporation as a result of a review completed in January 2018. Government support to resolve the issues that are outside the Corporation’s control would help the Corporation meet the expectations outlined in the new vision.

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 14 November 2018
Tabling date 7 January 2019

For more information

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