City Auditor releases Hamilton Future Fund Audit findings

HAMILTON, ON – Today, the City Auditor shared findings from the Hamilton Future Fund Audit with the City of Hamilton’s Audit, Finance and Administration Committee.

The Council-approved Audit Work Plan 2019 to 2022 (AUD19007) included the completion of a compliance and Value for Money (VFM) Audit of the Hamilton Future Fund (HFF).

The Audit assessed the HFF’s effectiveness relating to fund governance and oversight, adequacy of processes and performance measures, and ensuring sufficient and transparent financial reporting.

The Office of the City Auditor (OCA) brought forward ten recommendations to strengthen fund governance, including:

• The development of a strategic plan for the use of funds, which incorporates public consultation;
• Formalizing the roles of City employees supporting the HFF, which includes a fund administrator;
• Improvements in the processes for grant awards; and
• Monitoring performance measures for projects that receive funding.

All ten recommendations were agreed upon by HFF Management and as a next step, will provide a comprehensive action plan to the OCA by June 2022.

“The Hamilton Future Fund plays a significant role in supporting projects that build and enhance the community. It is critical that fund governance be strengthened through a strong focus on strategic planning, fund administration, process improvement and performance measurement to realize the HFF’s full potential while ensuring accountability and transparency.” -  Charles Brown, City Auditor & Auditor General, Office of the City Auditor

Quick facts

• The Hamilton Future Fund was established in 2002 when Hamilton Hydro was sold for $137M, resulting in the creation of two reserve funds:
  • Fund A, $100M: investments in various capital projects that provide permanent community benefit and improve the economic prosperity of residents in Hamilton
  • Fund B, $37M: grants for capital projects for various City and community organizations and initiatives
• The HFF Board of Governors is a sub-committee of the General Issues Committee of City Council and makes recommendations regarding the use of HFF reserves
• The HFF preliminary reserve balance was approximately $49M (Fund A) and $1.8M (Fund B) as of December 31, 2019

Additional resources

• Hamilton Future Fund Audit report
• Hamilton Future Fund