Item - 2013.AU10.4

The Director, Forensic Unit, Auditor General's Office, made a presentation to the Audit Committee on the 2012 Annual Report on Fraud Including the Operations of the Fraud and Waste Hotline.

In June 2000, Audit Committee requested that the Auditor General submit an annual report on the status of fraud and related matters.  This report represents the 2012 annual report relating to fraud activities at the City that have been communicated to the Auditor General.  It does not represent an overall picture of fraud or other wrongdoing at the City as fraud, by its very nature, is concealed and often difficult to detect.

In 2002, the City established a Fraud and Waste Hotline Program with Council’s support to be operated by the Auditor General’s Office.  The Hotline Program provides an independent resource for employees or members of the public to report wrongdoing involving City resources, anonymously if preferred.  Since that time the activities of the Fraud and Waste Hotline Program have been included in the annual report.

In adopting last year’s 2011 annual report on fraud and hotline activity, the Audit Committee requested that the Auditor General report back on dollar amounts recovered as a result of investigations conducted.  This information has also been included in this year’s annual report.

In 2012, 774 complaints were received representing a six per cent decrease in the number of hotline complaints received in 2011.  It should be noted however, that a significant number of complaints received included at least two or more allegations.  As such, we estimate the actual number of complaints is more than 1,500.