Item - 2013.AU11.3
Tracking Status
- City Council adopted this item on June 11, 2013 without amendments and without debate.
- This item was considered by the Audit Committee on May 29, 2013 and adopted without amendment. It will be considered by City Council on June 11, 2013.
AU11.3 - Follow Up of Previously Implemented Audit Recommendations
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on June 11, 12 and 13, 2013, adopted the following:
1. City Council request the City Manager to direct the Internal Audit Unit to conduct periodic and random reviews of recommendations previously reported as implemented. Such a review ensure that such recommendations continue to be effectively implemented. Further, the City Manager advise all Divisions, and major Agencies and Corporations that recommendations contained in reports issued by the Auditor General be reviewed in order to determine their applicability to their own entity.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-58412.pdf
AU11.3 - Follow Up of Previously Implemented Audit Recommendations
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the City Manager to direct the Internal Audit Unit to conduct periodic and random reviews of recommendations previously reported as implemented. Such a review ensure that such recommendations continue to be effectively implemented. Further, the City Manager advise all Divisions, and major Agencies and Corporations that recommendations contained in reports issued by the Auditor General be reviewed in order to determine their applicability to their own entity.
Origin
Summary
Our annual audit follow up process includes an evaluation of the status of recommendations made in audit reports issued. Once we determine that recommendations have been implemented, we conduct no further follow up on these recommendations.
However, it is becoming apparent through a number of sources, generally through the Fraud and Waste Hotline that circumstances which led to the original recommendation have reoccurred. Such situations have resulted in internal control deficiencies which had originally been rectified.
While it is not practical to conduct specific follow up work on all recommendations previously implemented, one of the objectives in developing our audit work plan is to revisit areas that have not been audited for a number of years. This is an effective method of identifying re-emerging control weaknesses. However, for the most part, we have not been able to do this due to audit resource limitations.
To compensate for resource constraints we have attempted to leverage our work to the extent possible. For example, in our November 7, 2011 report entitled “Previous Audit Reports – Common Themes and Issues” one of the issues identified pertained to:
“Audit recommendations which are specific to individual Divisions, Agencies, Boards and Commissions need to be considered on a City-wide basis. Recommendations generally have applicability not only to the entity subject to audit but also to other entities throughout the City.”
Again, in the case of a number of recent audits, it is clear that this recommendation has not received adequate attention.
Background Information
https://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-58412.pdf