This report responds to a request from the Audit Committee that the Auditor General provide on an annual basis the “value added of his department”.
This report contains the Auditor General’s estimate of the quantifiable financial benefits which have resulted from the work conducted by the Auditor General’s Office and identifies estimated cost savings and revenue increases relating to audit reports issued during the five year period from 2007 to 2011. Since 2007, the one-time and projected 5- year cost savings and revenue increases are approximately $194 million. The cumulative costs of operating the Auditor General’s Office since 2007 have been in the range of $19 million. In simple terms, for every $1 invested in the Auditor General’s Office the return on this investment has been $10.
The identification of cost savings and increased revenues is only one component of the role of the Auditor General. Equally important is the ongoing evaluation of internal controls, risk management, and governance processes. However, the benefits of this particular work are not quantifiable in financial terms.