Item - 2017.AU9.13

The Audit Committee recommends that:

1.  City Council receive the report (June 12, 2017) from the Auditor General for information.

On an annual basis, the Auditor General reviews the implementation status of outstanding audit recommendations and reports the review results to the City Council through the Audit Committee.

From January 1, 2011 to December 31, 2015, the Auditor General issued 17 reports to City agencies and corporations containing a total of 204 recommendations. Seven of these recommendations are no longer applicable due to either re-organizations or changes to business practices. Of the remaining 197 recommendations, City agencies and corporations have implemented, as of April 2017, 76 per cent or 149 of the applicable recommendations.

This report provides information regarding the implementation status of audit recommendations issued to City agencies and corporations. This report also provides information on the potential cost savings from outstanding audit recommendations in response to a motion adopted by the Audit Committee at its July 4, 2016 meeting.

A total of 68 outstanding recommendations from the following six City agencies and corporations were included in the 2017 follow-up review:

-  Toronto Police Service
-  Toronto Transit Commission
-  Sony Centre for the Performing Arts
-  Build Toronto
-  Invest Toronto
-  Toronto Parking Authority
 
Among the 68 recommendations, our review verified that 19 recommendations (28 per cent) have been fully implemented and one recommendation is no longer applicable. There are 48 recommendation (71 per cent) that remain not fully implemented.

Continued efforts to implement outstanding recommendations will provide additional benefits to City agencies and corporations such as cost savings, additional revenue and enhanced service delivery.

The results of this review indicate management continues to make progress in implementing outstanding audit recommendations. A number of fully implemented and partially implemented audit recommendations have resulted in significant cost savings for the agencies and corporations. The outstanding recommendations will be included in the next year's follow-up review.

We express our appreciation for the co-operation and assistance we received from the management and staff of City agencies and corporations.