Item - 2020.AU5.1

The Audit Committee recommends that:

1. City Council receive the report (January 27, 2020) from the Auditor General for information.

2. City Council direct that the confidential information contained in Confidential Attachment 1 to the report (January 27, 2020) from the Auditor General remain confidential in its entirety, as it involves the security of property belonging to the City of Toronto.

The Auditor General's Office conducts an annual follow-up review to determine the implementation status of recommendations in previously issued audit reports. The results of the review are reported to City Council through the Audit Committee.

This report provides information regarding the implementation status of audit recommendations issued to City divisions in Community and Social Services, the City Manager's Office and the People and Equity Division. Our 2020 follow-up review included 82 outstanding recommendations from audit reports issued between 2009 and 2018 for the following divisions:

- City Manager's Office
- Children's Services
- Court Services
- Parks, Forestry and Recreation
- People and Equity 
- Shelter, Support and Housing Administration
- Social Development, Finance and Administration
- Toronto Paramedic Services

Our review verified that 30 recommendations (37 per cent) have been fully implemented, 51 recommendations (62 per cent) have not been fully implemented and one recommendation (1 per cent) is no longer applicable. While a number of the recommendations have not been fully implemented, we recognize management's efforts to implement these recommendations. We also recognize that audit recommendations in recently issued reports may need more time to be fully implemented. Of the 51 outstanding recommendations, 37 are outstanding from the audit reports issued in 2018.

Continued efforts to implement outstanding recommendations will provide additional financial and non-financial benefits to the City. These benefits include cost savings, additional revenue, enhanced service delivery and improved controls. The Auditor General reports to the Audit Committee each year on the implementation status of outstanding recommendations.

Recommendations reported by management as implemented that the Auditor General determined as not fully implemented

During the current follow-up process, management reported that 55 out of 82 outstanding recommendations were fully implemented. However, based on our review we determined that 25 (45 per cent) of those recommendations have not been fully implemented because the steps undertaken or the extent of the improvement did not fully address the issue or the intent of the recommendation, or management was unable to provide sufficient appropriate evidence of action taken. Management agreed with our assessment and will take additional actions to fully implement these recommendations.