Item - 2010.AU15.1
Tracking Status
- City Council adopted this item on February 22, 2010 without amendments and without debate.
- This item was considered by Audit Committee on February 12, 2010 and was adopted with amendments. It will be considered by City Council on February 22, 2010.
AU15.1 - 2009 Annual Report - Fraud and Waste Hotline
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on February 22 and 23, 2010, adopted the following:
1. City Council request the City Manager to review the recommendations contained in the Bellamy Report on the Toronto Computer Leasing and Toronto External Contracts Inquiries in order to ensure that all recommendations pertaining to ethics training are addressed. Further, training required as a result of the Bellamy recommendations be required to specifically address conflict of interest issues, and be made mandatory for all City staff.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27130.pdf
Appendix 1 - 2009 Annual Report - Fraud and Waste Hotline, Auditor General's Office
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27131.pdf
Presentation material submitted by the Auditor General - 2009 Fraud and Waste Hotline Report
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27385.pdf
AU15.1 - 2009 Annual Report - Fraud and Waste Hotline
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the City Manager to review the recommendations contained in the Bellamy Report on the Toronto Computer Leasing and Toronto External Contracts Inquiries in order to ensure that all recommendations pertaining to ethics training are addressed. Further, training required as a result of the Bellamy recommendations be required to specifically address conflict of interest issues, and be made mandatory for all City staff.
Decision Advice and Other Information
The Audit Committee requested the Executive Director, Human Resources, to report to the first meeting of the Audit Committee in 2011, on the final outcome of employee terminations which occurred in 2007 to 2009 as a result of fraud, and whether the terminations were upheld if referred to an arbitrator, where a final decision is available.
The Auditor General and the Director, Forensic Unit, Auditor General's Office, made a presentation to the Audit Committee on the 2009 Annual Report - Fraud and Waste Hotline.
The Audit Committee recessed its public session and met in closed session to consider confidential information on this Item as it relates to:
1. personal matters about identifiable individuals, including municipal or local board employees;
2. labour relations and employee negotiations; and
3. litigation or potential litigation affecting the municipality or local board.
Origin
Summary
In June 2000, Audit Committee requested that the Auditor General submit an annual report on the status of fraud and related matters. This report represents the Auditor General’s ninth report on the activities of the Fraud and Waste Hotline program for the period of January 1, 2009 to December 31, 2009.
During 2009, the Fraud and Waste Hotline received 677 complaints, an increase of nine per cent from the 619 complaints received in 2008. This amount represents an increase of 184 per cent from the initial 238 complaints received by the Hotline in 2003, its first full year of operation.
In 2009, there were a number of complaints received which related to contraventions or potential contraventions of the City’s Conflict of Interest Policy. There continues to be a less than clear understanding of circumstances which may constitute a real, potential or perceived conflict.
In 2006, the Auditor General’s Office made a recommendation regarding expediting the implementation of formal ethics training to all City staff. While ethics training, including training on conflicts of interest has been introduced, it has not been provided to all management staff. Further, ethics training continues to be outstanding for all non-union staff.
Madame Justice Bellamy in her report relating to the Toronto Computer Leasing Inquiry and the Toronto External Contracts Inquiry made specific recommendations in relation to staff training. This staff training needs to be extended to all staff and at the same time evaluated to ensure that it is effective.
Background Information
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27130.pdf
Appendix 1 - 2009 Annual Report - Fraud and Waste Hotline, Auditor General's Office
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27131.pdf
Presentation material submitted by the Auditor General - 2009 Fraud and Waste Hotline Report
https://www.toronto.ca/legdocs/mmis/2010/au/bgrd/backgroundfile-27385.pdf
Motions
That the Executive Director, Human Resources, be requested to report to the first meeting of the Audit Committee in 2011, on the final outcome of employee terminations which occurred in 2007 to 2009 as a result of fraud, and whether the terminations were upheld if referred to an arbitrator, where a final decision is available.
That the Audit Committee recommend to City Council adoption of the recommendation contained in the report (January 7, 2010) from the Auditor General.