Item - 2015.AU2.3

The Audit Committee recommends that:

1.  City Council request the City Manager, in consultation with the General Manager, Economic Development and Culture, to report through the Economic Development Committee by June 2015 on the recommended approach for the City's efforts to promote Toronto as an investment destination.  Such a report to address:

            a.  The advantages and disadvantages of a regional economic development agency including any impacts on the operations of the City and/or its economic development corporations, specifically Invest Toronto, Build Toronto, and Toronto Port Lands Company.

            b.  The recommended levels of City funding for foreign direct investment promotion and attraction activities, giving consideration to the opportunity for cost savings and operational efficiencies through integration of Invest Toronto's activities into a regional investment promotional agency and/or the Economic Development and Culture Division.

2.  Subject to any decisions or actions taken in the implementation of Part 1 above, City Council request the applicable organization(s) responsible for investment promotion and attraction activities for Toronto to submit a 3-year rolling strategic plan to the City.  The City Manager be requested to forward the plan to the Executive Committee and/or Economic Development Committee for information.

At its meeting on April 8, 2015, the Invest Toronto Inc. Board of Directors considered a report (December 3, 2014) from the Auditor General, entitled "Operational Review of Invest Toronto Inc.'

The Board passed the following motion:

-  That the Value for Money Audit Report from the City of Toronto Auditor General’s Office - Operational Review of Invest Toronto Inc. dated December 3, 2014 be accepted as presented.

-  The Chair of the Audit and Risk Management Committee, Lida Preyma thanked the Auditor General for presenting the results of the audit and for joining the Board at the meeting to answer any questions Board members may have. The employees both in the Auditor General’s office and at Invest Toronto who were involved in the audit were thanked for their hard work, which ensured the positive outcome.

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The Auditor General's report states that at the request of City Council, the Auditor General’s Audit Work Plan included an operational review of Invest Toronto. 

Based on our review, it is our view that the operations, services, and activities performed by Invest Toronto to achieve its mandate were carried out with efficiency, effectiveness, and economy.  However, Invest Toronto has not brought forward a long-term strategic plan because of unresolved calls for a regional approach to economic development. 

This report contains three specific recommendations along with a management response to each of the recommendations.  The first recommendation emphasizes the need for the City to clarify its long-term strategy for investment promotion and attraction activities.  Once this has been done, Invest Toronto can address the second recommendation and develop a long-term strategic plan which contemplates the financial and operational impact of direction given by the City.

The Auditor General also recommends this report be forwarded to the City’s Audit Committee.