Mr. Chair, thank you for this opportunity to discuss our report on Sustainable Development Technology Canada.

I want to begin by acknowledging that we are gathered on the traditional unceded territory of the Algonquin Anishinabe people.

This audit examined whether the foundation, Sustainable Development Technology Canada, managed public funds in accordance with the terms and conditions of contribution agreements and its legislative mandate. It also examined Innovation, Science and Economic Development Canada's oversight and administration of public funds. Between March 2017 and December 2023, the foundation approved $856 million of funding to 420 projects.

We found that there were significant lapses in Sustainable Development Technology Canada's governance and stewardship of public funds. Specifically, the foundation awarded $59 million to 10 projects that did not meet key requirements set out in the contribution agreements between the government and the foundation.

I am also very concerned by breakdowns in the foundation's governance. The foundation was not always following its conflict of interest policies, and it failed to comply with the Canada Foundation for Sustainable Development Technology Act. The act requires the foundation to have a group of 15 members, separate from its board of directors, to represent Canadians and appoint most of the foundation's board. We found that the foundation did not comply with the legislation because it had only two such members instead of the required 15.

On the conflict of interest issue, the Canada Foundation for Sustainable Development Technology did not have an effective system for recording conflict of interest declarations or the measures taken in that regard. While we found 96 cases in which members of the board of directors complied with the conflict of interest policy by declaring their conflict and recusing themselves from the vote, there were 90 cases in which the foundation's records showed that the conflict of interest policy was violated. Those 90 cases were associated with funding decisions that granted almost $76 million to projects.

We also found that Innovation, Science and Economic Development Canada did not adequately evaluate whether the foundation was complying with the contribution agreements. Because of its limited oversight activities, the department was unable to ensure that the funds were spent in accordance with the terms of the contribution agreement. As well, it did not conduct any compliance audits of the foundation and did not monitor conflicts of interest.

Like any organization funded out of public moneys, Sustainable Development Technology Canada must operate transparently, responsibly and legally. Our findings show that when there are failings in that regard, it becomes difficult to show that the funding decisions made on behalf of the Canadian public are appropriate and justified.

This concludes my opening statement. We will be pleased to answer questions from committee members.