Item - 2019.AU1.4

The Audit Committee recommends that:

1.  City Council acknowledge the importance of timely and forthcoming information from City Divisions, Agencies, and Corporations, including the Toronto Transit Commission, to support the work of the Auditor General, and encourage the Auditor General to report to the Audit Committee any instances of delay.

2. City Council receive the report (February 6, 2019) from the Auditor General for information.

The following City staff gave a presentation to the Audit Committee on this Item:

- Beverly Romeo-Beehler, Auditor General

- Jane Ying, Assistant Auditor General

- Niroshani Movchovitch, Senior Audit Manager

This report provides information on the Auditor General’s Office 2018 activities and financial and non-financial benefits.

In 2018, the Auditor General's Office issued 18 reports including 12 performance audit reports, one investigative report, three recommendation follow-up reports, and two annual reports. In addition, the Auditor General’s Fraud and Waste Hotline processed 643 complaints containing approximately 1,000 allegations.

The Auditor General's Office calculates the return on every dollar invested in the Office by comparing the ratio of five-year audit costs to the cumulative estimated five-year realized savings. Since 2014, total one-time and projected five-year cost savings and revenue increases are approximately $303.7 million. The cumulative costs of operating the Auditor General’s Office since 2014 were approximately $25.9 million. For every $1 invested in the Auditor General’s Office, the return on investment was approximately $11.7.

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.