By conducting performance audits of the operations of local governments, the AGLG aims to provide them with objective information and advice to assist them in being accountable to their communities. Performance audits also help us identify best practices so we can highlight them for the benefit of all local governments. The role of the AGLG is advisory, not supervisory. We do not comment on the policy decisions or objectives of locally elected officials, impose requirements or duplicate existing financial accountability mechanisms.

 

PERFORMANCE AUDITING

Performance audits are not the same as traditional financial audits. The audits undertaken by the AGLG focus on value-for-money and are described in the Auditor General for Local Government Act in section 3(2) as including:

(a) a review of the operations of a local government, as the operations relate to a matter or subject specified by the auditor general, to evaluate the extent to which

  • the operations are undertaken economically, efficiently and effectively,

  • financial, human and other resources are used in relation to the operations with due regard to economy and efficiency,

  • the operations are effective in achieving their intended results, or

  • procedures established by the local government are sufficient for the local government to monitor the economy, efficiency and effectiveness of those operations, and

(b) recommendations to the local government arising from the review referred to in paragraph (a).

In conducting performance audits, the AGLG maintains a robust quality assurance and improvement program to ensure the quality of our reports and compliance with relevant CPA Canadian Auditing Standards.

ECONOMY

The acquisition of the appropriate quality and quantity of financial, human and physical resources at the appropriate times and at the lowest cost.

EFFICIENCY

The use of financial, human and physical resources such that output is maximized for any given set of resource inputs, or input is minimized for any given quantity and quality of output provided.

EFFECTIVENESS

The achievement of the objectives or other intended effects of programs, operations or activities.

 

WHO’S INVOLVED

AGLG performance audits are carried out by audit teams that include AGLG staff members. At times we may also hire consultants and subject matter experts to help us with our work when we do not have the required expertise or resources in-house.

We work with the AGLG Audit Council who provides guidance in the selection of audit themes and topics, reviews and provides comments on our reports and monitors the performance of the office.

We also work with local government staff in the areas being audited, and with key contact persons identified by the local government e.g. the CAO and CFO.