Item - 2021.AU8.4

The Audit Committee recommends that:

1.  City Council receive the report (February 3, 2021) from the Auditor General for information.

The Acting Director, Forensic Unit, Auditor General's Office gave a presentation on 2020 Annual Report - Fraud and Waste Hotline.

The Audit Committee recessed its public session to meet in closed session to consider this item, as it relates to personal matters about an identifiable individual, including a City or local board employee.

This report represents the 2020 annual report on fraud, waste and wrongdoing at the City including the activities of the Fraud and Waste Hotline Program (the Hotline Program). It highlights the complaints that have been communicated to the Auditor General's Office. It does not represent an overall picture of fraud or other wrongdoing across the City.

In 2020, 848 complaints comprised of approximately 1,350 allegations were received by the Auditor General's Office.

The Hotline Program has helped to reduce losses and resulted in the protection of City assets. The actual and potential losses from complaints received from 2016 to 2020 is more than $36.9 million (actual losses) plus $3.4 million (potential losses) had the fraud not been detected. Additional benefits that are not quantifiable include:

-  the deterrence of fraud or wrongdoing;

-  strengthened internal controls;

-  improvements in policies and procedures;

-  increased operational efficiencies; and

-  the ability to use complaint data to identify trends, address risks, make action-oriented recommendations to management and inform our audit work plan.