Trust and Confidence Report

Audit Services Profile

Audit Services are delivered by the Office of the City Auditor and utilizes a systematic, disciplined approach to evaluate and improve effectiveness of risk management, control, and governance processes. The Office of the City Auditor determines whether the City of Hamilton’s network of risk management, control, and governance processes, as designed and represented by management, is adequate and functioning in an appropriate manner, the extent to which public funds are expended economically and efficiently and the extent to which the related programs are effective in meeting their objectives.

Service Details

Related Subservices

  • Compliance Auditing
  • Value for Money Auditing
  • Consulting
  • Risk Assessment
  • Special Investigations (Fraud and Waste, Whistleblower)

Type of Service

  • Both public facing and internal corporate service

Rationale

  • Compliance and Value for Money audits are essential in order to run and operate municipal government more effectively and efficiently in the long term. They are performed to ensure effective internal controls, sound risk management and offer the taxpayer assurance that their tax dollars are well spent.

Primary Funding Sources

  • Net Levy

Service Level

  • At standard

Service Level Source

  • Council approved policy or service standard
  • City Auditor By-law (19-180)
  • Whistleblower By-law (19-181)
  • Fraud Policy and Protocol (www.hamilton.ca/fraud)

 

Performance Measures

How much did you do? (volume)

2020

  • Number of Total Reports to Committee: 10
  • Number of Audit and Consulting Recommendations: 69
  • Number of Serious Matters Reported to Council: 3 (policy introduced July 2020)
  • Number of Risk Summaries Completed: n/a
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 99 (for the period January 1, 2019 to June 30, 2020)
  • Number of Follow Up Reports: 2

Note: In 2016-18 Audit Services placed greater emphasis on an expanded set of services including proactive risk management by initiating Enterprise Risk Assessments and a higher volume of larger, complex value for money audits were in progress at the end of 2018.

  • Number of Total Reports to Committee: 15
  • Number of Recommendations: 14
  • Number of Risk Summaries Completed: 38
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 66
  • Number of Follow Up Reports: 0
  • Number of Total Reports to Committee: 7
  • Number of Recommendations: 0
  • Number of Risk Summaries Completed: n/a
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 12
  • Number of Follow Up Reports: 3

* In 2016-18 Audit Services placed greater emphasis on an expanded set of services including proactive risk management by initiating Enterprise Risk Assessments and a higher volume of larger, complex value for money audits were in progress at the end of 2018.

  • Number of Total Reports to Committee: 32
  • Number of Recommendations: 110
  • Number of Risk Summaries Completed: n/a
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 2
  • Number of Follow Up Reports: 19+

* In 2016-18 Audit Services placed greater emphasis on an expanded set of services including proactive risk management by initiating Enterprise Risk Assessments and a higher volume of larger, complex value for money audits were in progress at the end of 2018.

+ Two follow up reports were included in a new report

  • Number of Total Reports to Committee: 23
  • Number of Recommendations: 29*
  • Number of Risk Summaries Completed: n/a
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 5
  • Number of Follow Up Reports: 13

* In 2016-18 Audit Services placed greater emphasis on an expanded set of services including proactive risk management by initiating Enterprise Risk Assessments and a higher volume of larger, complex value for money audits were in progress at the end of 2018.

  • Number of Total Reports to Committee: 32
  • Number of Recommendations: 74
  • Number of Risk Summaries Completed: n/a
  • Number of Whistleblower/Fraud and Waste Reports Assessed: 3
  • Number of Follow Up Reports: 7

How well did you do it? (quality)

2020

  • % of Recommendations Accepted by Management for Implementation: 99%
  • % of staff with professional certification: 100%
  • % of staff meeting CPE requirements: 100%
  • % of Recommendations Accepted by Management for Implementation: 100%
  • % of staff with professional certification: 100%
  • % of staff meeting CPE requirements: 100%
  • % of Recommendations Accepted by Management for Implementation: n/a
  • % of staff with professional certification: 83%^
  • % of staff meeting CPE requirements: 100%

^There was one staff member that is not yet certified but is currently pursuing professional certification.

  • % of Recommendations Accepted by Management for Implementation: 93%
  • % of staff with professional certification: 83%^
  • % of staff meeting CPE requirements: 100%

^There was one staff member that is not yet certified but is currently pursuing professional certification.

  • % of Recommendations Accepted by Management for Implementation: 90%
  • % of staff with professional certification: 100%
  • % of staff meeting CPE requirements: 100%
  • % of Recommendations Accepted by Management for Implementation: 96%
  • % of staff with professional certification: 100%
  • % of staff meeting CPE requirements: 100%

Is anyone better off? (impact)

2020

For the period January 1, 2019 to June 30, 2020

31 Investigations Launched:

  • 8 Fraud
  • 15 Waste/Mismanagement, and
  • 8 Combined Fraud and Waste/Mismanagement

$202K Loss and Waste Substantiated:

  • $100K Fraud
  • $45K Waste
  • $57K Unable to determine most appropriate category

45 Reports with Management Memos Issued and Advice Given