Item - 2008.AU6.4
Tracking Status
- City Council adopted this item on March 3, 2008 without amendments.
- This item was considered by the Audit Committee on February 22, 2008 and adopted without amendment. It will be considered by City Council on March 3, 2008.
AU6.4 - 2007 Fraud and Waste Hotline
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on March 3, 4 and 5, 2008, adopted the following motion:
1. City Council direct the City Manager to ensure that all management staff are aware of their reporting responsibilities under the Fraud Prevention Policy. Such responsibilities include the reporting of allegations pertaining to fraud and wrongdoing to the Auditor General’s Office on a timely basis.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10712.pdf
Appendix 1 - 2007 Fraud and Waste Hotline
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10713.pdf
Communications (Committee)
AU6.4 - 2007 Fraud and Waste Hotline
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that City Council:
1. Direct the City Manager to ensure that all management staff are aware of their reporting responsibilities under the Fraud Prevention Policy. Such responsibilities include the reporting of allegations pertaining to fraud and wrongdoing to the Auditor General’s Office on a timely basis.
Origin
Summary
Fraud constitutes a business risk that every organization must deal with including the Public Sector. Management has the responsibility to manage this business risk by assessing the likelihood of occurrence and by implementing a strategy that includes prevention controls and detection processes to minimize the incidence of fraud and wrongdoing.
One of the key components of the City’s strategy to manage this business risk has been the establishment of the Fraud and Waste Hotline Program, which was established with Council’s support to provide a practical and anonymous tool for employees and the public to report incidents of fraud and wrongdoing at the City of Toronto. The Hotline Program is operated by the Auditor General’s Office which manages and investigates complaints received and makes recommendations to mitigate the risk of fraud and wrongdoing.
All City of Toronto staff have a responsibility to report improper activity involving City resources. In 2007, we continued to identify instances in which divisions have not reported or delayed reporting incidents of fraud or wrongdoing to the Auditor General’s Office. We recognize that divisions may wish to conduct preliminary enquiries to confirm whether there is merit to the allegations. However, once the division has reason to suspect there has been improper activity involving City resources, then the Auditor General’s Office should be notified on a timely basis. This report recommends the City Manager ensure that all management are aware of their reporting responsibilities under the Fraud Prevention Policy.
Financial Impact
There are no direct financial implications resulting from the adoption of this report.
Investigations or reviews conducted by both Management and the Auditor General’s Office as a result of various communications to the Fraud and Waste Hotline have resulted, in certain cases, in the recovery of funds to the City. More importantly these investigations or reviews have resulted in improved internal controls which will likely mitigate the loss of future funds.
Background Information
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10712.pdf
Appendix 1 - 2007 Fraud and Waste Hotline
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10713.pdf