Internal auditors: Key city-building players
Sponsored by the City of Vaughan
City building is traditionally associated with skyscrapers, transit, and roadways. But it also includes maintaining public confidence, operating a transparent government, and implementing municipal best practices. A well-run administration depends on this, which is what makes internal auditors key players in city building.
Before you build, you must start with a solid foundation. Internal auditors can provide assurance that the administration has the appropriate governance framework in place to manage the variety of risks municipalities encounter.
At the City of Vaughan, internal audit practices go above and beyond to deliver a quality service for taxpayers that is second to none. The city’s internal audit practices uphold the municipality’s commitment to accountability by:
- evaluating department-specific programs, services, and processes
- providing recommendations to improve the efficiency of operations and effectiveness of risk management and control activities
The following are five best practices Vaughan’s Internal Audit Department undertakes.
1. Conduct Audits
Internal auditors conduct many forms of audits. In Vaughan, risk-based, performance/operational audits examine city programs, functions, and activities. These audits include measuring and assessing the ongoing performance and operation of a departmental and/or business process while focusing on key objectives and risks.
Compliance audits review and evaluate whether staff are adhering to established policies and procedures, as well as any relevant statutory and/or legal requirements.
In-year requests for audit services may examine a specific component of an operation or a program. These requests may include forensic or special investigations, and can come from council, the city manager, deputy city managers, employees, vendors, or residents.
2. Raise Awareness
The city recognizes Fraud Awareness Week every November to educate staff and provide resources to help them recognize and report suspected fraud in the workplace.
International Internal Audit Awareness Month is also bookmarked every May to reiterate to staff the important function internal auditors provide and how they employ best practices to ultimately serve and support them.
3. Complete an External Quality Assessment
Vaughan’s team received the highest ranking achievable for every standard audited in its 2021 external quality assessment. This is the first time an external assessment was performed on the department. The next will be in 2026.
4. Have an Anonymous Reporting System
An anonymous reporting system enables staff to confidentially report suspected misconduct; abuse; false claims and fraud, such as forgery; misuse of city property, equipment, or materials; or inappropriate time reporting that may be happening in the workplace. Vaughan’s system is available 24/7 by phone or online, and all reports are thoroughly investigated.
5. Establish an Audit Committee
Comprised of members of council and the public, an audit committee further promotes governance and accountability by ensuring risks are addressed through a compliance framework and appropriate stewardship. Vaughan’s committee meets at least five times each year.
These are a few of the many ways Vaughan’s internal audit team helps the municipality build the city with integrity, accountability, and respect. Visit https://www.vaughan.ca/about-city-vaughan/departments/internal-audit to learn more about the team.
✯ Municipal World Executive and Essentials Plus Members: You might also be interested in George Cuff’s article: The value of a comprehensive audit.
Kevin Shapiro is the director of the internal audit team at the City of Vaughan.
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