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Audit Committee · 2026-07-10 · 2026.AU13.2

City of Toronto 2025 Audit Report; Clean opinion with no fraud or control deficiencies found

KPMG presented its external audit of the city's consolidated 2025 financial statements, including Toronto Hydro, the TTC, and Toronto Community Housing. The auditors issued a clean opinion, found no fraud or significant control deficiencies, and confirmed a major financial-system conversion went well with no material misstatements.

amendedAudit Committee · Fri, Jul 10On the Toronto City Council agenda for 2026-07-29

From the floor

“As a result of our audit, we did not identify any unusual or fraudulent transactions that should be reported to you. We also did not identify any significant control deficiencies that should be reported to you.”Speaker not identified
“The financial information that has been transferred over to the new system is complete and accurate and there are no significant issues to report.”Speaker not identified
“We will be issuing a clean audit opinion on the consolidated financial statements.”Speaker not identified

Also in this item

• The city completed a major financial-system conversion in 2025; auditors confirmed data transfer was complete and accurate with no significant IT issues

• No fraud, no significant control deficiencies, and no material misstatements identified across the city proper, Toronto Hydro, TTC, and Toronto Community Housing

The journey

Fri, Jul 10 · Audit Committee · amended
Wed, Jul 29 · Toronto City Council · scheduled, not yet heard

You can still act

On the Toronto City Council agenda for 2026-07-29

Decision

Clean audit opinion issued on consolidated financial statements; no material adjustments required

Watch it happen

Jump to this item in the meeting video

Why is this story here?
RoutineThis is a routine annual audit presentation confirming the prior year's financial statements are accurate. Nothing in the city changes in substance; the audit discloses what already happened. It is required governance and procedurally necessary, but housekeeping by the test: if this item vanished from the agenda, the city's financial position and authority would be identical.Invisible to residentsNo resident experiences this directly. It is an internal accounting and governance procedure. The system conversion is a staff undertaking with no daily-life effect on residents despite its scale to the organization. The clean audit opinion is reassurance, not a change to anyone's week.

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Official title: City of Toronto Audit Findings Report for the Year Ended December 31, 2025 · meeting video