Audit at a Glance—Special Examination Report—Canadian Tourism Commission
Audit at a Glance Special Examination Report—Canadian Tourism Commission
What we examined (see Focus of the audit)
This audit examined whether the systems and practices we selected for examination at the Canadian Tourism Commission 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. We selected systems and practices based on our assessment of risks in the following areas:
- corporate governance;
- strategic planning, performance measurement, and risk management;
- marketing activities;
- tourism research; and
- human resource management.
What we concluded
We concluded that that based on the criteria established, there is reasonable assurance that during the period covered by the examination, there were no significant deficiencies in the Canadian Tourism Commission’s systems and practices that we selected for examination. The Commission has maintained these systems and practices in a manner that provides it with reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively.
What we found
Corporate governance
Overall, we found that the Canadian Tourism Commission had in place elements of good governance that meet the expectations of sound practices in board stewardship, shareholder relations, and communications with the public.
This is important because good governance practices help ensure the Commission can fulfill its mandate and meet the statutory objective outlined in the Financial Administration Act. This objective is to maintain systems and practices in a manner that ensures that
- assets are safeguarded and controlled,
- resources are managed economically and efficiently, and
- operations are carried out effectively.
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The Canadian Tourism Commission had in place key elements of good governance
Recommendation. We made no recommendations in this area of examination.
Strategic planning, performance measurement, and risk management
Overall, we found that the Canadian Tourism Commission had systems and practices in place that clearly defined strategic direction in its planning, and specific and measurable goals and objectives to achieve its mandate. Its strategic direction and goals took into account government priorities, identified risks, and the need to control and protect its assets and manage its resources economically and efficiently. The Commission identified performance indicators to measure the achievement of its mandate and statutory objectives. The Commission had an Enterprise Risk Management system in place, but lacked a formal assessment of the risk of fraud.
Long-term strategic planning, performance measurement, and risk management are important management tools that support the Commission in achieving its legislated objective and mandate. Performance measurement is also important for informed decision making and accountability.
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The Commission had in place strategic planning and performance measurement processes
Recommendation. We made no recommendations in this area of examination.
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Risk management was embedded in the Commission’s practices, with one gap
Recommendation. The Canadian Tourism Commission should add a formal fraud risk assessment to its Enterprise Risk Management processes.
Marketing activities
Overall, we found that the Canadian Tourism Commission had systems and practices in place for its marketing activities to clearly define operational objectives and targets. It was also able to plan, design, implement, and monitor the marketing of Canada in a manner that safeguarded and controlled assets, enabled economical and efficient use of resources, and operated effectively to achieve its mandate of marketing Canada as a desirable tourist destination. However, there were some weaknesses in contracting.
This is important because the Commission markets Canada abroad as a desirable tourism destination to fulfill its mandate of sustaining a profitable tourism industry. The Commission uses third-party agreements both to deliver its marketing and sales activities and to raise funds and other contributions for marketing through partnership agreements.
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Marketing activities were planned, delivered, and monitored for results
Recommendation. We made no recommendations in this area of examination.
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Procurement and contracting practices were in place, with some weaknesses
Recommendation. The Canadian Tourism Commission should ensure the appropriate and consistent use of memoranda of understanding. In addition, it should take steps to improve partnership agreements.
Tourism research
Overall, we found that the Canadian Tourism Commission had systems and practices in place for its tourism research operations to clearly define operational objectives and targets. It was also able to plan, design, implement, and monitor operations in a manner that safeguarded and controlled assets, enabled economical and efficient use of resources, and operated effectively to achieve its mandate of providing information about tourism in Canada to the private sector and to the governments of Canada, the provinces, and the territories.
This is important because many parties, including the Commission, rely on the information and insight from its tourism research to make important business decisions. To fulfill its mandate, the Commission must ensure its research remains relevant to a changing industry and to government’s needs. Its products must be reliable and up to date on emerging topics and practices.
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Tourism research was planned, delivered, and monitored for results
Recommendation. We made no recommendations in this area of examination.
Human resource management
Overall, we found that Overall, we found that human resources were managed in a manner that provided the Canadian Tourism Commission with the human resource capacity and the work environment it needed to achieve its goals and objectives.
This is important because the Commission’s success in achieving its mandate depends largely upon having the right people with the right skills. Having an effective framework for managing human resources (HR) enables the Commission to align human resource planning, training and development, compensation, and performance management with the Commission’s long-term strategic direction.
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Human resource management supported the Commission’s needs
Recommendation. We made no recommendations in this area of examination.
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Recommendation. We made no recommendations in this area of examination.
Entity Responses to Recommendations
The audited entities agree with our recommendations, and have responded (see List of Recommendations).
Related Information
Report of the | Auditor General of Canada |
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Type of product | Special Examination |
Topics | |
Audited entities | |
Completion date | 9 January 2015 |
Tabling date | 20 February 2015 |
Related audits | Report 2—Required Reporting by Federal Organizations, 2015 Spring Reports of the Auditor General of Canada |
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