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Canada Post pleased with Special Examination Report

Feb. 1, 2010

Canada Post today 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 significant 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 modernize 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 Jan. 11, 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 $2.5 billion 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.

The special examination report on Canada Post can be found online at canadapost.ca.