The federal auditor general’s report identified a number of strengths
and weaknesses at the grain marketing agency.
Strengths:
- Marketing grain – The board has a solid reputation as a strong and
capable marketer, with good market intelligence, well-developed annual
sales strategies and plans, tough and competent negotiators and good
customer relations. Longer-term planning and documentation of the sales
process could be improved.
- Managing financial operations – The board has proper financial
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accounting and reporting systems in place, is properly reporting pool
account results and is managing financial risk appropriately. More
information should be published regarding the revenues and costs of
pool accounts, and the agency should consider sharing net interest
earnings equally across all pool accounts.
- Transportation and country operations – The board has appropriate
systems and practices in place to manage the orderly delivery and
transportation of grain to optimize returns to farmers. It should
publicize targets and performance indicators.
- Communications and corporate policy – Communication with farmers has
improved, as has the board’s ability to discuss its position on key
policy issues. Long-term plans and strategies and performance measures
are lacking.
- Price pooling – The board is calculating total net pooled returns to
farmers in accordance with the CWB Act. More detailed information on
pool accounts could be provided to farmers.
Weaknesses:
- Governance – The board of directors has been too involved in
day-to-day management issues at the expense of providing oversight and
strategic direction. The board and senior management must clarify their
respective roles and responsibilities.
- Strategic planning – Corporate plans and budgets have been based on a
one-year time frame, although a five-year plan is now in the works,
identifying strategic direction and long-term goals and objectives.
Operating goals must be closely linked with the strategic plan.
- Performance measurement and reporting – The board needs a
comprehensive and balanced set of performance measures, along with
improved reporting, in order to assess whether it is achieving desired
outcomes. The goal is to ensure the agency is more accountable to
farmers and stakeholders.
- Information technology – There are many significant weaknesses in the
board’s IT systems and practices compared to organizations of a similar
size and complexity. The board has prepared a detailed action plan and
introduced a number of measures to improve the situation.
