What we examined (see Focus of the audit)

The Canadian Museum of Nature is a federal Crown corporation established in 1990. It reports to Parliament through the Minister of Canadian Heritage. Its enabling legislation, the Museums Act, sets out the Corporation’s mandate:

to increase, throughout Canada and internationally, interest in, knowledge of and appreciation and respect for the natural world by establishing, maintaining and developing for research and posterity, a collection of natural history objects, with special but not exclusive reference to Canada, and by demonstrating the natural world, the knowledge derived from it and the understanding it represents.

Our objective for this audit was to determine whether the systems and practices we selected for examination at the Canadian Museum of Nature 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.

What we concluded

In our opinion, based on the criteria established, there were no significant deficiencies in the Canadian Museum of Nature’s systems and practices that we examined for corporate management and operations management. We concluded that the Corporation has maintained these systems and practices during the period covered by the audit in a manner that provided the reasonable assurance required under section 138 of the Financial Administration Act.

What we found

Corporate management practices

Overall, we found that the Corporation had good management practices in place for strategic and operational planning and for performance measurement and reporting, but that improvements were needed in some areas. We found that the Board of Trustees did not fully perform its compliance monitoring role. We also found weaknesses related to filling positions on the Board of Trustees, which were beyond the control of the Corporation; and in the Corporation’s risk reporting and information technology (IT) security.

These findings matter because the Corporation relies on sound management practices to operate efficiently and effectively. Complete and timely information supports decision making by the Corporation’s Board of Trustees. It is in the Corporation’s interests to have in place sound practices, notably on risks and information technology. Continuity in the Board membership maintains corporate memory and supports effective oversight.

• The Corporation had good corporate management practices, but improvements were needed in governance, risk reporting, and the implementation of its policy on information technology security

  Recommendation. To enhance the monitoring of the Board of Trustees, the Corporation should establish a process for ensuring that the Board periodically receives the necessary information on the Corporation’s compliance with laws and regulations, key corporate policies, and its code of values and ethics.

  Recommendation. The Corporation should continue to engage with the Minister of Canadian Heritage on the need for sufficient and timely appointments to the Board of Trustees, continue to provide the Minister with profiles of potential candidates, and reinforce the need for staggered terms of office.

  Recommendation. The Corporation should ensure that information on the implementation of risk mitigation strategies is provided regularly to senior management and the Board of Trustees.

  Recommendation. The Corporation should ensure that its IT security policy requirements are met. It should also test its Business Continuity Plan, as well as the critical information technology applications identified as part of the IT Disaster Recovery Plan.

Operations management practices

Overall, we found that the Corporation had in place good systems and practices for managing its operations. However, we found that the Corporation had not set priorities for reducing the backlogs in identifying and digitizing its collections. While conservation priorities were based on a risk assessment performed for its collections, the Corporation did not have a conservation plan, and had not fully documented its preservation practices and activities. In the planning of public offer activities, the Corporation had not entirely adhered to its project management process. In addition, there were weaknesses in project management practices followed for the replacement of the admission and collections management systems.

These findings matter because the Corporation’s collections have significant scientific value. They therefore need to be conserved and managed in perpetuity, and to be accessible. Good management of public offer activities is important to ensure that the Corporation succeeds in achieving its mandate of increasing knowledge of the natural world, and appreciation and respect for it. Systems used for collections management and admission are important for providing access for researchers and services to visitors.

• The Corporation managed its operations well, but improvements were needed in collections and in project management practices

  Recommendation. To reduce backlogs, the Corporation should develop a plan that would establish priorities, with achievable milestones for identification and digitization of specimens in its collections.

  Recommendation. The Corporation should develop a plan that would set priorities for addressing conservation needs for its collections, and regularly monitor progress toward implementing the plan. It should also ensure that preservation practices and activities are documented in accordance with its Collections Conservation Policy.

  Recommendation. The Corporation should review its project management process for public offer activities, and its procedures for travelling exhibitions and Web content, to ensure that they are complete, still appropriate to the Corporation’s needs, and followed.

  Recommendation. The Corporation should put in place formal project management practices for the replacement of systems supporting its operations, including the preparation and approval of a business case, the establishment of project timelines, monitoring of costs, and periodic reporting to senior management.

Entity Responses to Recommendations

The Canadian Museum of Nature 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
Topics	Crown Corporations Financial Management and Government Spending
Entities	Canadian Museum of Nature
Completion date	6 January 2017
Tabling date	13 January 2017

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