The City’s Hotline Program has provided several benefits. One of the key benefits of the permanent Fraud and Waste Hotline Program is that complaints received have resulted in actions that have reduced losses attributed to incidents of fraud, waste or other irregularities by terminating substantiated incidences, and by strengthening controls to reduce the risk of future losses. Even when a finding of fraud or irregularity is not substantiated, investigations conducted have identified areas where internal controls need to be strengthened (to improve City operations) or better protection of City resources. Research also indicates that a further benefit of operating a hotline is that it may assist in deterring irregular conduct by increasing the perception of being detected.
This report represents the Auditor General’s annual report to the Audit Committee on the status of fraud and related matters, including the operation and activities of the Fraud and Waste Hotline Program.