City of Hamilton taking action to protect funds, reduce fraud risk

HAMILTON, ON – The City of Hamilton continues to strengthen internal controls and systems to protect against ongoing fraudulent threats.

At today’s Audit, Finance and Administration Committee Meeting, the Office of the Auditor General (OAG) presented information on its Special Investigation undertaken in response to a $274,000 fraud that occurred against the City of Hamilton and reported to Hamilton Police Service. This matter was initially profiled within the OAG’s 2024 Fraud and Waste Hotline Report. 

The City is pleased to report it has now completed five out of six of the initial OAG recommendations and all four follow-up recommendations. 

“Fraudulent attacks are a significant threat to both the public and private sectors. Hamilton residents deserve strong protection of the funds entrusted to City staff,” said City Manager Marnie Cluckie. “This investigation and the Auditor General’s recommendations gave us a clear path forward. I am grateful for the diligence and dedicated response from our staff. I want to thank the staff involved for their hard work and professionalism. Their dedication to strengthening our safeguards and protecting public resources reflects our commitment to building public trust.” 

As part of the work to complete the OAG recommendations, City staff worked diligently to implement more rigorous processes, including strengthened approvals processes and verification procedures for vendor information changes and annual staff training focused on fraud prevention. Training topics include fraud risk awareness, business email compromise, and red flags to watch for in financial transactions. 

The final outstanding recommendation for enhanced vendor communications related to requests for information changes is on track to be complete by the end of June 2025.

“I want to thank the Office of the Auditor General for its comprehensive investigation and recommendations,” said Mike Zegarac, General Manager, Finance and Corporate Services, City of Hamilton. “City procedures will continue to be strengthened to limit the risk of fraudulent attacks in line with the audit’s findings and recommendations – with an aim to keep us one step ahead of wrongdoers.”