Item - 2011.AU3.2

The Audit Committee recommends to the Budget Committee that the Auditor General's Office budget for 2012 be maintained at the same level as the 2011 Auditor General's Office budget.

This report provides information relating to the 2012 budget for the Auditor General’s Office and a budget for approval by the Audit Committee.

In relation to the Budget of the Auditor General’s Office, three separate reviews are underway which may have an impact on the Auditor General’s 2012 budget.  These reviews are as follows:

In May 2009, City Council approved a report entitled “A Policy Framework for Toronto Accountability Officers”.  One of the recommendations contained in the report directs that:

“City Council authorize the City Manager and Deputy City Manager and Chief Financial Officer, in consultation with the accountability officers, to review and research best practices respecting setting aside a percentage of the City’s budget for Toronto’s accountability functions and report back to Executive Committee”.

On June 14, 2011 City Council adopted the following:

          “City Council request the City Manager to review, and report to the Audit Committee on October 20, 2011, on the operations of each one of the internal audit functions that report to management, and ascertain whether there may benefits to consolidating those functions, such a review to consider the reporting structure particularly in the context of ensuring that all functions are able to operate independently from management.

City Council request that, during the review, the City Manager review the level of resources for each entity in order to ensure that levels are commensurate with responsibilities and make recommendations for reallocation of staff if appropriate.  In consultation with the Auditor General, such a reallocation give consideration to the resource requirements of the Auditor General's Office.”

It is anticipated that these reviews will be finalized in 2011.

The Auditor General's 2012 budget request prior to the completion of the above reviews is for $4,176,200 which is $107,000 (2.5 per cent) less than the Office's 2011 Council approved budget.