Item - 2019.AU3.6

The Audit Committee recommends that:

1.  City Council receive the report (June 3, 2019) from the Auditor General for information.

2.  City Council direct that the confidential information contained in Confidential Attachment 1 to the report (May 31, 2019) from the Auditor General remain confidential in its entirety, as it pertains to a proposed or pending acquisition of land by the Toronto Parking Authority Board.

The Audit Committee:

1.  Requested the Auditor General to provide an update on the outstanding recommendations highlighted in Item AU3.6, to the October 25, 2019 meeting of the Audit Committee.

The Auditor General's Office conducts an annual follow-up review to determine the implementation status of recommendations in previously issued audit and investigation reports. This report provides information regarding the implementation status of recommendations issued to City agencies and corporations. The review results are reported to the respective Board of City agencies and corporations and then to City Council through the Audit Committee.

Our 2019 follow-up review included 96 outstanding recommendations from the following three City agencies and corporations:

- TO Live*
- Toronto Parking Authority
- Toronto Transit Commission
 

*The report to the Board of Directors of TO Live relates to recommendations from an audit of the Sony Centre for the Performing Arts.

As of December 31, 2017, there were 13 audit reports to agencies and corporations with 96 outstanding recommendations. Among the 96 recommendations, our review verified that 19 recommendations have been fully implemented, 61 recommendations have been partially implemented, and three recommendations are no longer applicable.

The Auditor General has decided that the 13 recommendations arising from the 2015 audit of Toronto Parking Authority (TPA) real estate activities will no longer be included in her annual follow up process. Although, the recommendations are still relevant, as a result of the adoption of the City-wide real estate model, TPA no longer carries out real estate transactions on an independent basis. Given the extent of changes being made to the TPA real estate operations, the Auditor General would need to conduct an entirely new audit to be able to have a reasonable basis to form conclusions to confirm that the recommendations have been implemented.

Continued efforts to implement all outstanding recommendations will provide additional benefits to City agencies and corporations such as cost savings, additional revenue and enhanced service delivery. The remaining 61 outstanding recommendations will be included in the next year's follow-up review together with the 37 recommendations included in audit reports issued to these agencies and corporations in 2018.

Detailed results of our individual follow-up reviews of City agencies and corporations, as presented to their respective Boards, are enclosed as Attachments 1 through 3 and the Confidential Attachment 1. These reports provide further details regarding their respective recommendations and current implementation status.

We express our appreciation for the co-operation and assistance we received from the management and staff of City agencies and corporations.