1997 Management Letter - Toronto Hydro

 The Strategic Policies and Priorities Committee submits, for the information of Council, the following transmittal letter (July 8, 1998) from the Audit Committee and reports having received same:

 Recommendation:

 That the report (June 24, 1998) from the City Auditor attaching the management letter of Toronto Hydro, be received and forwarded to Council for information.

 Background:

 On July 7, 1998, the Audit Committee had before it a report (June 24, 1998) from the City Auditor attaching the management letter of Toronto Hydro prepared jointly by the Auditor of the former City of Toronto and Ernst & Young, which includes management's response.

 The Audit Committee advises that it received the aforementioned report and directed that a copy be forwarded to your Committee and City Council for information.

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 (Report dated June 24, 1998, addresed to

the Audit Committee, from the City Auditor)

 Recommendation:

 It is recommended that the management letter of Toronto Hydro dated March 13, 1998, be received for information.

 Comments:

 The audit of the 1997 financial statements of the Toronto Hydro was conducted jointly by Ernst & Young and the Auditor of the former City of Toronto. As a normal bi-product of the audit, management letters are usually issued which contain comments on systems and procedures arising from the audit. Included in the attached management letter are management's responses to the observations and recommendations.

 Conclusion:

 I have reviewed the management letter, as well as the responses from management. The proposed mandate of the City Audit function extends to Toronto Hydro and as a result, the issues raised by the statutory auditors will be followed up in 1998 by the City Auditor.

 Contact Name and Telephone No.:

 John Woods, 392-7172.

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 (A copy of the communication dated March 13, 1998, addressed to Ms. Catherine David Nolan, Director of Finance, Toronto Hydro, from K.M. Hartwick, Ernst & Young, Chartered Accountants, has been forwarded to all Members of Council with the agenda of the Strategic Policies and Priorities Committee for its meeting on July 24, 1998, and a copy thereof is also on file with the City Clerk.)