Item - 2011.AU1.6

The Audit Committee recommends that City Council:

1.                  request the City Manager, in consultation with the City Solicitor and Executive Director, Human Resources, take immediate action to provide guidance and reinforce staff’s awareness of the Whistleblower Protection provisions in the Fraud Prevention Policy.

2.         require the City Manager to add to the Fraud Prevention Policy specific details relating to the consequences of non-compliance with the policy, in particular, contravention of the Whistleblower Protection provision.

3.                  request the City Manager to give consideration to directing management to notify the City Manager of instances where proposed action against an employee may contravene the Whistleblower Protection afforded under the Fraud Prevention Policy.

The Audit Committee recessed its public session to ask questions of staff in closed session as the item relates to:

-           personal matters about an identifiable individual, including municipal or local board employees;  

-           labour relations or employee negotiations; and

-           the receiving of advice that is subject to solicitor-client privilege.

The Auditor General’s Office received a complaint, through its operation of the City’s Fraud and Waste Hotline Program, involving allegations of retribution in contravention of the City’s Fraud Prevention Policy.  The complainant, who had been terminated without cause, alleged that the termination was related to a complaint made to the Auditor General’s Office.  Given the nature and sensitivity of the retribution complaint, the Auditor General escalated the matter directly to the City Manager for his review and attention.

Our Office coordinated the investigation and the resolution of this complaint in consultation with the Executive Director of Human Resources and the City Solicitor’s Office.

The complaint of retribution has been substantiated and the employee’s termination has since been rescinded.

In a separate letter to management, the Auditor General requested that the City Manager review the Auditor General’s finding of retribution with relevant management staff and take appropriate action.