Item - 2026.AU11.2

The Auditor General recommends that:

1. City Council receive this report for information.

The Auditor General’s 2025 annual report on fraud, waste and wrongdoing at the City highlights information about Fraud and Waste Hotline (the Hotline) activity, including background information, detailed statistics, and complaint summaries. It represents an overview of fraud that was reported to us through the Hotline.

In 2025, the Auditor General’s Fraud and Waste Hotline received 697 complaints representing approximately 1,150 allegations. This is similar to the number of complaints received in 2024 (679 complaints and 1,050 allegations). We continue to manage a high volume of allegations, which has remained relatively consistent over the past five years, averaging approximately 1,210 allegations per year.

With almost 15,350 complaints received since 2002, the Hotline has helped reduce the City’s losses and protect its assets. The actual and potential losses from complaints received from 2021 to 2025 are $6.3 million (actual losses) plus $4 million (potential losses) had fraud not been detected. Additional non-quantifiable benefits include:

- the deterrence of fraud or wrongdoing

- strengthened internal controls

- policy and procedure improvements

- increased operational efficiencies

- using complaint data to identify trends and emerging issues, make results-oriented recommendations to management, and inform our Audit Work Plan

The recommendation in this report has no financial impact.