Item - 2021.AU10.1

The Audit Committee recommends that:

1.  City Council direct that Confidential Attachment 1 to the report (October 20, 2021) from the Auditor General remain confidential in its entirety, as it pertains to the security of property belonging to the City of Toronto or local boards, personal matters about identifiable individuals, including City of Toronto employees, litigation or potential litigation affecting the City of Toronto or a local board and describes criteria to be applied to negotiations that will be carried on by, or on behalf of, the City of Toronto, including information regarding the criteria that should be applied when negotiating and preparing contracts.

This consolidated status report summarizes the 2021 recommendation follow-up results for all City divisions, the City Manager's Office, agencies and corporations, and recommendations issued by the Auditor General's Forensic Unit.

During 2021, we verified 177 recommendations. Since inception, the Auditor General has verified 81 per cent of recommendations as fully implemented or no longer relevant.

We performed a significant amount of follow-up work on verifying high priority recommendations implemented by City Divisions in our last follow-up cycle. The results of our review were reported to Audit Committee at its meeting on July 7, 2021 and later to Council on July 14-16, 2021. The July 2021 status report on outstanding recommendations is available at:

http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2021.AU9.6

Separate Follow-Up Report on Cybersecurity Recommendations

Given the critical nature of recommendations from the report entitled: "Cyber Safety - Critical Infrastructure Systems: Toronto Water SCADA System" we also dedicated resources to verify implementation of the recommendations in that report. The results of that follow-up are being separately reported to the November 2, 2021 Audit Committee and are not included in the results of this report due to the timing of the work performed.

November 2021 Consolidated Status Report on Outstanding Recommendations

This report provides an update on our follow-up results since our last report to Audit Committee. Specifically we are reporting on:

- Results of recommendations verified at major agencies and corporations (Toronto Transit Commission and Toronto Community Housing Corporation);

- Management's actions to implement our recommendations, as of October 1, 2021; and

- High priority recommendations that management still needs to implement, as of October 1, 2021.

Results of recommendations verified at major agencies and corporations

In this round of follow-up, we focused on verifying the status of high priority recommendations management reported as fully implemented at the City's major agencies and corporations. Specifically, at Toronto Transit Commission (TTC) and Toronto Community Housing Corporation (TCHC).

Table 1 - Consolidated Results of the Auditor General's 2021 Recommendation Follow-Up at Major Agencies and Corporations

*FI = Fully implemented, N/A = No longer relevant, NFI = Not fully implemented

**Status of recommendations verified for TTC as of March 2021; status of recommendations verified for TCHC as of June 2021

Management's actions to implement our recommendations (as at October 1, 2021, not yet verified)

As at October 1, 2021, there were 209 recommendations (including 86 high priority) reported by management as fully implemented or no longer relevant. These recommendations (for City divisions, agencies and corporations, and recommendations from fraud and waste investigations) still need to be verified by the Auditor General. This highlights that management is taking action to address our recommendations, according to their assessment.

High priority recommendations that management needs to implement, as of October 1, 2021

Of the 451 not fully implemented recommendations issued to City divisions and agencies and corporations, 202 are considered high priority. Management's actions to implement these high priority recommendations are included in Attachment 2, Attachment 5 or Confidential Attachment 1.