Item - 2008.AU6.5

Tracking Status

  • This item was considered by the Audit Committee on February 22, 2008. The Committee received the item for information only. No further action will be taken on this item.

AU6.5 - Auditor Generalís Audit Reports - Benefits to the City of Toronto - Annual Update

Decision Type:
Information
Status:
Received

Committee Decision

The Audit Committee received for information, the report (January 28, 2008) from the Auditor General.

Origin

(January 28, 2008) Report from the Auditor General

Summary

This report responds to a request from the Audit Committee to ďprovide the value added of his department Ö by identifying:

a. actual dollar savings to the City;
b. potential savings to the City of Toronto;
c. at risk dollars to the City of Toronto; and
d. for non-identifiable dollar activities, the impact of the audit review on those items.Ē

At the request of the Audit Committee, attempts have been made to identify the extent of the quantifiable financial benefits which have resulted from the work conducted by the Auditor Generalís Office.

While certain reports have resulted in tangible cost savings, the more important benefits provided relate to the avoidance of future costs, as well as the protection of City assets. Nevertheless, tangible annual cost savings have occurred, or will occur, as a result of the work conducted by the Auditor General. Over the five year period commencing January 1, 2003 the estimated potential savings to the City are in the range of $82 million compared to a cumulative audit expenditure of $15 million. In simple terms, for every $1 invested in the audit process the return on this investment has been $5.50. Many of the estimated cost savings are ongoing and occur on an annual basis.

Background Information

(January 28, 2008) Report from the Auditor General - Auditor Generalís Audit Reports - Benefits to the City of Toronto - Annual Update
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10692.pdf
Appendix 1 - Auditor Generalís Audit Reports - Benefits to the City of Toronto - Annual Update
https://www.toronto.ca/legdocs/mmis/2008/au/bgrd/backgroundfile-10693.pdf
Source: Toronto City Clerk at www.toronto.ca/council