Item - 2012.AU6.2
Tracking Status
- City Council adopted this item on April 10, 2012 without amendments.
- This item was considered by Audit Committee on February 29, 2012 and was adopted with amendments. It will be considered by City Council on April 10, 2012.
AU6.2 - 2011 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General’s Office
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on April 10 and 11, 2012, adopted the following:
1. City Council authorize the City Manager and the 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 to Executive Committee.
2. City Council request the City Manager to review, and report to the Audit Committee on October 25, 2012, on the operations of each one of the internal audit functions that report to management both in City Divisions and the ABCs, and ascertain whether there may be 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.
3. 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.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45248.pdf
(January 10, 2012) Appendix 1 - 2011 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General’s Office
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45249.pdf
(February 29, 2012) Presentation Material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45466.pdf
Motions (City Council)
Vote (Adopt Item) Apr-10-2012 3:33 PM
| Result: Carried | Majority Required - AU6.2 - Adopt the item |
|---|---|
| Total members that voted Yes: 26 | Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Shelley Carroll, Raymond Cho, Josh Colle, Gary Crawford, Glenn De Baeremaeker, Doug Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Frances Nunziata (Chair), Cesar Palacio, James Pasternak, Gord Perks, Anthony Perruzza, Karen Stintz, Michael Thompson, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 19 | Members that were absent are Michelle Berardinetti, Vincent Crisanti, Janet Davis, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, John Filion, Paula Fletcher, Rob Ford, Chin Lee, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, John Parker, Jaye Robinson, David Shiner |
AU6.2 - 2011 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General’s Office
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council authorize the City Manager and the 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 to Executive Committee.
2. City Council request the City Manager to review, and report to the Audit Committee on October 25, 2012, on the operations of each one of the internal audit functions that report to management both in City Divisions and the ABCs, and ascertain whether there may be 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.
3. 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.
Decision Advice and Other Information
The Auditor General made a presentation to the Audit Committee on the 2011 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General's Office.
Origin
Summary
This report responds to a request from the Audit Committee that the Auditor General provide on an annual basis the “value added of his department”.
This report contains the Auditor General’s estimate of the quantifiable financial benefits which have resulted from the work conducted by the Auditor General’s Office and identifies estimated cost savings and revenue increases relating to audit reports issued during the five year period from 2007 to 2011. Since 2007, the one-time and projected 5-year cost savings and revenue increases are approximately $194 million. The cumulative costs of operating the Auditor General’s Office since 2007 have been in the range of $19 million. In simple terms, for every $1 invested in the Auditor General’s Office the return on this investment has been $10.
The identification of cost savings and increased revenues is only one component of the role of the Auditor General. Equally important is the ongoing evaluation of internal controls, risk management, and governance processes. However, the benefits of this particular work are not quantifiable in financial terms.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45248.pdf
(January 10, 2012) Appendix 1 - 2011 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General’s Office
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45249.pdf
(February 29, 2012) Presentation Material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45466.pdf
Speakers
Motions
That:
1. City Council authorize the City Manager and the 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 to Executive Committee.
2. City Council request the City Manager to review, and report to the Audit Committee on October 25, 2012, on the operations of each one of the internal audit functions that report to management both in City Divisions and the ABCs, and ascertain whether there may be 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.
3. 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.