In all honesty, I can't answer that question. I'm not inside the organization, and I do not yet have a full understanding of the decisions that lie behind the organization's accounting.
I do know that the administration of the Canada Council is approximately 14% of the budget. I do know from my experience at the Ontario Arts Council that this is a very respectably low number and that it's not viewed on the international scene as in any way being an eyebrow-raising percentage.