Item - 2016.AU5.1

Beverly Romeo-Beehler, Auditor General, and Jane Ying, Assistant Auditor General, gave a presentation to the Audit Committee on this Item.

This report provides information on the Auditor General’s 2015 activities and financial and non-financial benefits.  Specific responsibilities of the Auditor General are set out in Chapters 3 and 192 of the Toronto Municipal Code.  The Code requires that the Auditor General report annually to Council on the activities of the Office and savings achieved.  

In 2015, the Office issued a total of 35 reports including 14 performance audit reports, five Continuous Controls Monitoring reports and 16 other reports.  In addition, the Auditor General’s Fraud and Waste Hotline Program processed 572 complaints or 800 allegations in 2015.

The return on investment for the Auditor General’s Office is based on estimated cost savings and revenue increases as a result of previous and current audit reports and fraud investigations conducted by the Office.  Since 2011, total one-time and projected five-year cost savings and revenue increases are approximately $229.7 million.  The cumulative costs of operating the Auditor General’s Office since 2011 were approximately $20.6 million.  In simple terms, for every $1 invested in the Auditor General’s Office the return on investment was approximately $11.2.

The identification of cost savings and increased revenue is only one component of the Auditor General’s mandate.  Equally important is the ongoing evaluation of governance, risk management and internal controls.  However, the benefits resulting from these audits are not easily quantified in financial terms.