Skip to content

In June 2000, Audit Committee requested that the Auditor General submit an annual report on the status of fraud and related matters. This report represents the Auditor General’s seventh annual report on the activities of the Fraud and Waste Hotline Program for the period January 1, 2007 to December 31, 2007.

Fraud constitutes a business risk that every organization must deal with including the Public Sector. Management has the responsibility to manage this business risk by assessing the likelihood of occurrence and by implementing a strategy that includes prevention controls and detection processes to minimize the incidence of fraud and wrongdoing.

One of the key components of the City’s strategy to manage this business risk has been the establishment of the Fraud and Waste Hotline Program, which was established with Council’s support to provide a practical and anonymous tool for employees and the public to report incidents of fraud and wrongdoing at the City of Toronto. The Hotline Program is operated by the Auditor General’s Office which manages and investigates complaints received and makes recommendations to mitigate the risk of fraud and wrongdoing.

All City of Toronto staff have a responsibility to report improper activity involving City resources. In 2007, we continued to identify instances in which divisions have not reported or delayed reporting incidents of fraud or wrongdoing to the Auditor General’s Office. We recognize that divisions may wish to conduct preliminary enquiries to confirm whether there is merit to the allegations. However, once the division has reason to suspect there has been improper activity involving City resources, then the Auditor General’s Office should be notified on a timely basis. This report recommends the City Manager ensure that all management are aware of their reporting responsibilities under the Fraud Prevention Policy