City responds to Auditor General’s Fraud and Waste Annual Report

HAMILTON, ON – The City of Hamilton appreciates the Office of the Auditor General’s dedication to promoting transparency, accountability and continuous improvement through the 2025 Fraud and Waste Annual Report. 

The City takes these findings seriously and is committed to acting on the recommendations, with a particular focus on addressing challenges related to cyber and vendor imposter fraud, construction material usage, contractor performance and conflicts of interest. The Auditor General’s recommendations will guide additional measures to strengthen internal controls, improve oversight and better protect municipal services and resources. 

The City is committed to implementing the Auditor General’s recommendations and fostering a culture of accountability and integrity at every level of our organization.

Key Steps the City is Taking

The City has already begun implementing several measures in response to the report’s findings and recommendations:

• Strengthening financial controls and verification procedures, including implementing more rigorous approval processes and verification procedures for vendor banking changes. Staff training focused on fraud prevention has taken place throughout the year, with additional training scheduled for December 2025. Training topics include fraud risk awareness, business email compromise and recognizing red flags in financial transactions.    
• Enhancing contractor oversight and accountability, including issuing warning letters and enforcing penalties in accordance with contract provisions.
• Strengthening quality control and assurance processes, by ensuring alignment between material estimates and actual quantities, and by maintaining robust mechanisms to identify and address discrepancies. 
• Implemented stronger cash-handling controls, including more secure storage for cash on-site and enhanced procedures for deposits and reconciliation. 
• Reinforcing a culture of accountability, led by senior leadership and supported across all departments.

“The City is thankful to staff across all departments for their ongoing dedication to continuous improvement,” said Marnie Cluckie, City Manager. “Their commitment to upholding City policies and delivering value to residents is vital as we strengthen our processes and build public trust. Continuous improvement and service excellence are at the core of everything we do. We are committed to learning from these findings to ensure the City operates with integrity, resilience and transparency.”

Commitment to Continuous Improvement

The City extends its appreciation to the Office of the Auditor General for its ongoing efforts to safeguard public resources and enhance transparency. The City will continue to report on progress as these recommendations are implemented and improvements take effect. 

Together, we remain dedicated to protecting public funds, improving service delivery, strengthening accountability and fostering a high-performing organization that meets the needs of Hamilton residents.

Quick Fact

The Fraud and Waste Hotline, launched in 2019 and made permanent in 2023, remains a cornerstone of the City’s commitment to transparency and responsiveness. It provides the public, employees, contractors and vendors with a confidential and anonymous way to report suspected fraud and waste.