What we examined (see Focus of the audit)

Standards affect many aspects of our lives, including the food we eat, the cars we drive, and the electronic devices we use. According to the Standards Council of Canada, standards help ensure better, safer, and more efficient methods and products, and they are essential elements of technology, innovation, and trade. For example, a standard exists specifying performance requirements and test methods for helmets marketed, sold, and intended for ice hockey.

The Standards Council of Canada is a federal Crown corporation established under the Standards Council of Canada Act in 1970. It reports to Parliament through the Minister of Innovation, Science and Economic Development. According to the Act, the Corporation’s mandate is to promote efficient and effective voluntary standardization in Canada, where standardization is not expressly provided for by law and, in particular, to

• promote the participation of Canadians in voluntary standards activities;
• promote public-private sector cooperation in relation to voluntary standardization in Canada;
• coordinate and oversee the efforts of the persons and organizations involved in the National Standards System;
• foster quality, performance, and technological innovation in Canadian goods and services through standards-related activities; and
• develop standards-related strategies and long-term objectives.

Our objective for this audit was to determine whether the systems and practices we selected for examination at the Standards Council of Canada 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, we found that the Corporation had good operations management practices, but improvements were needed in some areas. In corporate management practices, we found a significant deficiency in Governing Council appointments. This, combined with weaknesses in Governing Council independence and oversight, led us to conclude that there was a significant deficiency in corporate governance as a whole. We also found that improvements were needed in risk management.

What we found about …

Corporate management practices

• There was a significant deficiency in corporate governance, and improvements were needed in corporate management

Management of operations

• The Corporation had good operations management practices, but improvements were needed in some areas

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
Topics	Crown Corporations
Entities	Standards Council of Canada
Completion date	11 February 2019
Tabling date	8 July 2020

For more information

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