Office of the City Auditor

The City Auditor encompasses the examination and evaluation of the adequacy and effectiveness of the City’s governance, risk management process, system of internal control structure and the quality of performance in carrying out assigned responsibilities to achieve the organization’s goals and objectives.  This includes conducting value-for-money audits.  The City’s processes should function in a manner to help ensure that:

• risks are appropriately identified and managed. 
• significant financial, managerial and operating information is accurate, reliable      and timely. 
• actions are in compliance with policies, standards, procedures and applicable laws and regulations. 
• resources are acquired economically, used efficiently and are adequately protected. • programs, plans and objectives are achieved. 
• significant legislative and regulatory issues impacting the City are recognized and addressed properly. 
• quality and continuous improvement are fostered in the organization’s control processes. 

The City Auditor has been appointed by by-law as an Auditor General under Section 223.19 of the Municipal Act, 2001, with the responsibilities, including the powers, duties and protections, under Sections 223.19 to 223.23 of the Municipal Act, 2001.  These responsibilities apply to the extent authorized by Sections 223.19 to 223.23 of the Municipal Act, 2001.

The added powers and protections provided to the City Auditor (by appointment as an Auditor General) strengthens the position of independence and institutional security of the City Auditor  while providing information to Council for its oversight role.

Consulting

In addition to audit engagements, City Auditor staff provide advisory or other consulting services, as appropriate, or at the request of Council or senior management.  These types of services may include:

• conducting special projects, reviews or investigations.
• conducting risk assessment workshops.
• performing research.
• providing training on audit related topics such as risk assessment and internal controls.
• providing counsel or advice (e.g. on the adequacy of draft procedures)

Access

The City Auditor is granted full, free and unrestricted access to any and all records, property and personnel relevant to any function under review.  Access to personal information is provided for under the Municipal Freedom of Information and Protection of Privacy Act (in particular, Subsections 31(c) and 32(d)). 

The City Auditor has the authority to conduct audits and reviews of all City departments, Members of Council, agencies, boards and commissions, as well as other entities the City is related to or has an interest in. All employees shall assist the City Auditor in fulfilling its objectives.

The City Auditor, through the appointment by Council  as an Auditor General, has the responsibilities, including the powers, duties and protections, under Sections 223.19 to 223.23 of the Municipal Act, 2001 for:

• City departments
• Members of Council
• Local boards (not including the Board of Health, the Hamilton Public Library Board, the Police Services Board or other local boards in accordance with the definition of “local board” under Section 223.1 of the Municipal Act, 2001).:
• Municipally-controlled corporations (a corporation that has 50 per cent or more of its issued and outstanding shares vested in the City or that has the appointment of a majority of its board of directors made or approved by the City, no including a corporation established in accordance with Section 203 of the Municipal Act, 2001). 
• Grant recipients

These responsibilities under Section 223.19 to 223.23 of the Municipal Act, 2001 include the powers to access information and to examine persons under Section 33 of the Public Inquiries Act, 2009; the duty to preserve secrecy with respect to all matters that come to its knowledge in the course of performing its functions; and the protection of not being a competent or compellable witness in a civil proceeding.

Independence

Independence is an essential component to building public trust and preserving objectivity and integrity associated with the audit function.

To provide for the independence of Office of the City Auditor, its personnel report to the City Auditor, who reports administratively to the City Manager, and functionally to the Audit, Finance and Administration Committee of Council.  Audit and review reports are sent directly to the Audit, Finance and Administration Committee for discussion and approval and then to Council.  These reporting relationships help ensure independence, promote comprehensive audit objectivity and coverage and assure adequate consideration of audit recommendations.

All City Auditor activities shall remain free of influence by any element in the organization, including matters of audit selection, scope, procedures, frequency, timing or report content to permit maintenance of an independent and objective attitude necessary in rendering reports.

The City Auditor shall have no direct operational responsibility or authority over any of the activities it reviews.  Accordingly, it shall not develop nor install systems or procedures, prepare records or engage in any other activity which would normally be audited.

Responsibilities

The City Auditor has the responsibility to:

• Review operations within the City at appropriate intervals to determine whether planning, organizing, directing and controlling are in accordance with management instructions, policies and procedures and in a manner that is consistent with both City objectives and high standards of administrative practice.
• Determine the adequacy and effectiveness of the systems of internal accounting, financial and operating controls.
• Review the reliability, utility and integrity of financial information and the means used to identify measure, classify and report such information.
• Review the established systems to ensure compliance with those policies, plans, procedures, laws and regulations which would have a significant impact on operations and reports and determine whether the organization is in compliance.
• Review the means of safeguarding assets and, as appropriate, verify the existence of such assets.
• Carry out value-for-money (VFM) / performance audits to determine the efficiency and effectiveness of services and evaluate attainment of corporate objectives and value to citizens.
• Report to those members of management who should be informed or who should take corrective action, the results of audit examinations, the audit opinions formed, and the recommendations made.
• Evaluate any plans or actions taken to correct reported conditions and provide timely follow-up to ensure satisfactory disposition of audit findings in the manner and timeframe committed to by management in the original audit report.  If the corrective action is considered unsatisfactory, hold further discussions to achieve acceptable disposition.
• Develop flexible annual work plans, including any risks or control concerns identified by management or other audits as well as appropriate special tasks or projects requested by management.
• Undertake investigations or refer issues to other appropriate parties as a result of disclosures under the Whistleblower By-law.
• Maintain a professional audit staff with sufficient knowledge, skills and experience.

Each term of Council, the City Auditor prepares a multiyear work plan, setting out the proposed schedule of audits and other undertakings proposed for the term.

The following sources are considered:

• Prioritization of the audit universe using a risk-based methodology
• Requests from Members of Council, senior management and staff
• Any audits planned for the past year but delayed or not completed
• Any conditions or concerns discovered or communicated throughout the past year
• Inputs from members of the public
• Areas likely to provide significant payback in terms of increased revenues, reduced costs, operational efficiencies and quality of services will be considered