Canada Post commended in audit
Canada Post has welcomed the findings of a 2009 special examination by the Office of the Auditor General of Canada and KPMG. In the report, the auditors commended Canada Post for its many good systems and practices in several key areas. These include corporate governance, customer relationships and human resources management.
Canada Post has made progress addressing the auditors’ main observation about the funding required for Postal Transformation. This is the Corporation’s multi-year initiative to replace aging facilities and modernise operations in order to improve service, reduce long-term costs, improve workplace safety, increase productivity and maintain financial self-sufficiency.
The progress includes a five-year rate increase that began to take effect 11 January 2010, and receiving approval from Parliament in December for an increase in Canada Post’s borrowing limit from outside sources. This will allow Canada Post to borrow up to $2.5bn to fund the project, on terms and conditions to be approved by the Minister of Finance.
Canada Post has agreed with and responded to suggested improvements in the special examination report for establishing longer-term performance targets, managing facilities and entering into contracts with related companies within The Canada Post Group.
The Financial Administration Act requires Crown corporations to undergo a special examination of their financial and management systems and practices at least once every 10 years.
