This report provides information on the Auditor General’s 2014 activities and financial and non-financial benefits. Specific responsibilities of the Auditor General are set out in Chapter 3 of the Toronto Municipal Code. The Code requires that the Auditor General report annually to Council on the activities of the Office and savings achieved.
In 2014, the Office issued a total of 26 reports including 11 performance audit reports, 3 continuous controls monitoring reports and 12 other reports. In addition, the Auditor General’s Fraud and Waste Hotline Program processed 687 complaints in 2014.
The return on investment for the Auditor General’s Office is based on estimated cost savings and revenue increases relating to audit reports and fraud investigations during the five-year period from 2010 to 2014. Cost savings and revenue increases from audit reports issued or investigations conducted prior to 2010 are not included in the current calculation of return on investment, even though these amounts are significant.
Since 2010, total one-time and projected five-year cost savings and revenue increases are approximately $235.6 million. The cumulative costs of operating the Auditor General’s Office since 2010 were approximately $19.9 million. In simple terms, for every $1 invested in the Auditor General’s Office the return on investment was approximately $11.8.
The identification of cost savings and increased revenue is only one component of the Auditor General’s mandate. Equally important is the ongoing evaluation of governance, risk management and internal controls. However, the benefits resulting from these audits are not easily quantified in financial terms.