The Auditor General’s Audit Work Plan included a review of City telecommunication expenses and controls. This review was selected due to the significant amount of funds involved and the fact that the Auditor General’s Office had not reviewed this area since 2005. In 2013, telecommunication costs for the City were $19.2 million.
The objective of this review was to assess internal controls over the management of telecommunication contracts, payment of vendor invoices, telecommunication device inventory, and oversight of telecommunication expenses.
This report includes results reported through a public report enclosed as Appendix 1 and a confidential report attached as Attachment 1. The public report and the confidential attachment combined contain 20 recommendations that will result in reduced telecommunication costs and improved controls over telecommunication expenses, and the management of telecommunication contracts.
This report also includes one recommendation to City Agencies and Corporations. The recommendation relates to the need for City Agencies and Corporations to evaluate the feasibility of converting telephone landlines to Voice Over Internet Protocol (VOIP). Our review indicates significant savings can be achieved through the conversion of existing landlines to VOIP.