Item - 2013.AU10.3

The Auditor General made a presentation to the Audit Committee on the 2012 Annual Report Requested by the Audit Committee - Demonstrating the Value of the Auditor General's Office.

This report responds to a 2004 request from the Audit Committee that the Auditor General provide on an annual basis the “value added of his department”.

This report contains the Auditor General’s estimate of the quantifiable financial benefits resulting from the work conducted by the Auditor General’s Office during the five-year period from 2008 to 2012.  Since 2008, total one-time and projected five-year cost savings and revenue increases are approximately $209 million.  The cumulative costs of operating the Auditor General’s Office since 2008 have been $19.1 million.  In simple terms, for every $1 invested in the Auditor General’s Office the return on this investment has been approximately $11.  

The identification of cost savings and increased revenues is only one component of the role of the Auditor General.  Equally important is the ongoing evaluation of internal controls, risk management, and governance processes.  However, the benefits of audits of this nature are not quantifiable in financial terms.