Summary

Under the Financial Administration Act, federal Crown corporations are subject to a special examination by the Auditor General of Canada at least once every 10 years. SAI Canada has conducted a special examination of Defence Construction Canada. The audit focused on Defence Construction Canada’s corporate management practices and its management of operations. The corporation provides infrastructure and contract management services to National Defence and other federal organizations. The examination found that the corporation managed its operations well and had in place good corporate management practices. The audit found no significant deficiencies, but there were opportunities for improvement in the areas of governance and risk management. For example, the audit found opportunities for improvements in the corporation’s process for declaring conflicts-of-interest for members of the Board of Directors and employees. Conflict-of-interest declarations did not include an assessment of potential relationships with companies, contractors, or consultants doing business with the corporation. Including such an assessment will further strengthen the corporation’s ability to manage any real, apparent, or perceived conflicts of interest.