The purpose of this report is to provide City Council with an overview of the work the Auditor General plans to conduct in 2018.
The Auditor General’s annual Audit Work Plan is based on projects identified from the latest risk assessment, as well as consultations with City Councillors and City management.
In response to the Council approved increase of $1.0 million to the Auditor General’s 2017 Operating Budget, five new audits were added to the 2017 Audit Work Plan. Additional audits have been planned for 2018 in anticipation of a further funding increase of $1.5 million in 2018. These audits are described in Attachment 1. Planning activities for some of the audits on the 2018 Audit Work Plan will start as early as November 2017.
With the additional funding, the Auditor General can now address the high priority projects on a timelier basis by including more projects in her annual Audit Work Plan. This will result in a gradual decline of backlogged projects that have been constrained by prior years’ operating budgets.
The Auditor General’s Forensic Unit will also be undertaking more major investigations with the additional resources. Further, the Auditor General intends to continue with her focus on critical information technology risks across the City and its agencies and corporations. The Office will expand the use of data analytics in applicable audits and transition high-risk areas identified to its Continuous Controls Monitoring Program to provide ongoing reporting to management and City Council.
The additional funding will enable the Auditor General to acquire services of specialists on audits and investigations where subject matter expertise is required.
According to Chapter 3 of the Municipal Code, City Council may add to the annual audit plan by a two-thirds vote of all Council members. The Auditor General may amend the Audit Work Plan if new priorities arise.