June 22, 1998

  To:Audit Committee

 From:City Auditor

 Subject:1997 Management Letters of the Former Municipalities of Metropolitan Toronto,

City of Toronto, City of Scarborough, City of Etobicoke,

City of York and Borough of East York

  Recommendation:

 It is recommended that the 1997 management letters of the former municipalities of Metropolitan Toronto, City of Toronto, City of Scarborough, City of Etobicoke, City of York and Borough of East York, be received for information and forwarded to Council.

 Comments:

 The former Councils of the amalgamating municipalities of Metropolitan Toronto each appointed statutory auditors to audit the 1997 financial statements of their respective municipalities. As a normal bi-product of the audit process, management letters are usually produced identifying areas of control and/or administrative weaknesses, along with recommendations for improvement. The following management letters have been prepared by the auditors of each municipality:

 MunicipalityAuditor

 Municipality of Metropolitan TorontoJeffrey Griffiths, CA

City of TorontoJohn Woods, CA

City of ScarboroughKPMG

City of Etobicoke and Borough of East YorkDeloitte & Touche

City of YorkKPMG

  A management letter for the City of North York was not issued by Coopers and Lybrand although a letter was received from them indicating that there were no issues that required reporting.

 Conclusion:

 Each of these management letters has been reviewed by the City Auditor of the new City of Toronto. As part of the work plan of the Audit Division, ongoing reviews will be conducted in order to ensure that the issues identified in these letters have been addressed satisfactorily.

 Contact Name and Telephone No.:

 Jeff Griffiths, 392-8461

 Jeff Griffiths

City Auditor