Item - 2018.AU11.1

The Audit Committee recommends that:

1.  City Council receive the report (January 24, 2018) from the Auditor General for information.

The following staff from the Auditor General's Office gave a presentation to the Audit Committee on this Item:

-  Beverly Romeo-Beehler, Auditor General

-  Jane Ying, Assistant Auditor General

-  Niroshani Movchovitch, Acting Senior Audit Manager.

This report provides information on the Auditor General’s 2017 activities and financial and non-financial benefits.

In 2017, the Office issued 30 reports including 13 performance audit reports, five investigative reports, six recommendation follow-up reports, and six other reports. In addition, the Auditor General’s Fraud and Waste Hotline processed 680 complaints or 1,060 allegations in 2017.

The Auditor General's Office calculates the return on every dollar invested in the Office by comparing the ratio of five-year audit costs to the cumulative estimated five-year realized savings. Since 2013, total one-time and projected five-year cost savings and revenue increases are approximately $203.1 million. The cumulative costs of operating the Auditor General’s Office since 2013 were approximately $23.9 million. In simple terms, for every $1 invested in the Auditor General’s Office the return on investment was approximately $8.5.

The identification of cost savings and increased revenue is only one component of the Auditor General’s mandate. Equally important is the ongoing evaluation of governance, risk management and internal controls. However, the benefits resulting from these audits are not easily quantified in financial terms.