Special Examination Report—Canadian Museum for Human Rights

At a Glance Special Examination Report—Canadian Museum for Human Rights

What we examined (see Focus of the audit)

The Canadian Museum for Human Rights is a federal Crown corporation established under the Museums Act to explore the subject of human rights, with special but not exclusive reference to Canada, to enhance the public’s understanding of human rights, promote respect for others, and encourage reflection and dialogue. The Corporation reports to Parliament through the Minister of Canadian Heritage.

In early 2008, the Government of Canada entered into an agreement with public sector, private sector, and charity organizations leading to the creation of the Canadian Museum for Human Rights in Winnipeg, Manitoba, with a budget of $265 million, including $100 million from the federal government. Later that year, Parliament created the Corporation through amendments to the Museums Act.

Our objective for this audit was to determine whether the systems and practices we selected for examination at the Canadian Museum for Human Rights 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 significant deficiencies in the Corporation’s strategic direction setting and board appointments, but there was reasonable assurance there were no significant deficiencies in the other systems and practices that we examined. We concluded that, except for these significant deficiencies, the Corporation maintained its 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 about…

Corporate management practices

Overall, we found two significant deficiencies in corporate governance that were outside the Corporation’s control. First, though the Corporation had submitted its corporate plans to the Minister of Canadian Heritage for the past four years, none received Government of Canada approval, leaving the Corporation without an updated strategic direction supported by the Government of Canada. Second, there were vacancies on its Board of Trustees as the Corporation waited for the Government of Canada to make appointments. We also found weaknesses in risk mitigation and in risk monitoring and reporting. Additionally, we found that the Corporation had several good practices, such as in performance measurement, monitoring, and reporting.

These findings matter because the Corporation relies on sound corporate management practices to operate efficiently and effectively. Without government approval of corporate plans, the Corporation cannot plan its strategy or operations for the long term. This is especially important at this time, because the Corporation is facing funding uncertainties that might necessitate a reduction of the museum’s offerings to the public. Also, because the Board membership should include the skills and qualifications needed to oversee the Corporation effectively, vacancies make it more difficult for the Board to fulfill its role. Furthermore, until the Corporation strengthens its practices to monitor actions that mitigate risks, it cannot be sure that potential threats to its operations, assets, and reputation are being handled appropriately.

  • There were significant deficiencies in strategic direction setting and board appointments

    Recommendation. The Corporation should continue to work with the government to address its financial issues and to get its annual corporate plans approved in a timely manner.

    Recommendation. The Corporation should continue to engage with the Minister of Canadian Heritage for the timely appointment of members to its Board of Trustees. It should also reinforce the need for staggered terms of office.

    Recommendation. The Corporation should continue to put in place the policies that it needs; management should work with the Board to define monitoring requirements, to ensure that its policies function as intended.

    Recommendation. The Corporation should define its risk mitigation responses and ensure that related actions are specific, time-bound, and measurable.

Management of exhibits and programs

Overall, we found that the Corporation managed its presentation of exhibits and delivery of programs to visitors well. It also monitored its operations. However, it did not plan exhibits and programs far enough in advance, or consider the human resources needed to carry out its projects. Furthermore, project planning for developing new programs was not detailed. We also found weaknesses in how the Corporation ensured the balance and accuracy of its exhibit content, as it lacked some of the related policies and procedures, and the information it needed to address potential errors was incomplete.

These findings matter because the museum’s exhibits and programs are the Corporation’s primary means of enhancing the public’s understanding of human rights, promoting respect for others, and encouraging dialogue. Sound operational planning contributes to employee well-being and helps the Corporation meet its strategic objectives by presenting new offerings to the public. Balanced and accurate exhibits are vital to the museum’s reputation, which affects visitor numbers and revenues.

Entity Responses to Recommendations

The Canadian Museum of Human Rights 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
Entities
Completion date 22 November 2017
Tabling date 17 January 2018

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