Toronto Auditor General's 2026 Follow-up Report: Status of Outstanding Recommendations for City Divisions, Agencies & Corporations

Accountability and Value from Audit Recommendations

The Toronto Auditor General's 2026 Consolidated Follow-up Report underscores the critical role of the audit follow-up process in ensuring accountability and transparency for both City Council and the public. This process tracks the implementation of recommendations, which, when acted upon, yield substantial financial and non-financial benefits. For the current cycle, an estimated $14 million in financial benefits were realized, primarily from improvements in fare evasion protection at the Toronto Transit Commission (TTC), better contract management at the Toronto Parking Authority (TPA), and enhanced controls over utility payments and overpayment recovery.

Persistent Challenges with High-Priority Recommendations

Despite the demonstrated benefits, the report reveals a persistent challenge with the timely implementation of high-priority recommendations. These recommendations are crucial as they address significant potential for savings, mitigate health and safety risks, or have been outstanding for an extended period. Alarmingly, 163 out of 227 high-priority recommendations have remained outstanding for five or more years. This indicates a systemic issue, particularly in implementing recommendations that require city-wide action across various divisions. The Auditor General stresses the need to expedite these implementations to achieve the greatest value for the City.

Overview of Implementation Status and Future Focus

During the 2025 follow-up cycle, management reported 186 out of 587 outstanding recommendations as either fully implemented or no longer applicable, leaving 401 recommendations not fully implemented. Since 1999, the Auditor General has issued 3,755 recommendations, with 3,292 (88%) successfully closed. The Auditor General's office will continue to rigorously review management's actions, particularly focusing on high-priority recommendations, to ensure that audit findings lead to improved internal controls, more effective and efficient operations, and ultimately, greater savings for the City and its entities.

• Financial Benefits: $14 million estimated from implemented recommendations.
• Long-Outstanding High-Priority Recommendations: 163 out of 227 have been outstanding for five or more years.
• Overall Implementation: 186 out of 587 outstanding recommendations were fully implemented or no longer applicable in the last cycle.
• Historical Success: 88% of all recommendations since 1999 have been closed.