Contents
- About Internal Audit
- Our Services
- Independence and Governance
- 2026 Audit Work Plan
- Reports to Council
- Contact Us
About
The Internal Audit Division provides independent, objective assurance and consulting services designed to add value and improve the City of Thunder Bay’s operations. We help the City achieve its objectives by applying a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, internal controls, and governance processes.
Established by City Council, the Internal Audit Division has authority to access all City records, systems, facilities, and personnel relevant to the performance of audit work. This authority extends to all City departments, divisions, programs, and operations. The Division is guided by the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors (IIA). Our activities are governed by the Internal Audit Charter, which is reviewed annually and approved by City Council.
Our mission: To provide independent and objective assurance and consulting services that add value and improve the City of Thunder Bay’s operations, supporting Council and Administration in achieving the City’s objectives with integrity and accountability.
Key Statistics
247 Recommendations issued since 2012
85% Overall recommendation implementation rate
49 Audit reports issued since 2012
10 Audits planned for 2026
Download the Internal Audit Charter (PDF)
Our Services
Internal Audit delivers a range of assurance and advisory services across all City departments, divisions, and operations. Our work is planned annually using a risk-based approach and is approved by the Finance and Administration Standing Committee.
| Service Types |
| Performance and Operational Audits
Assess how well City programs, functions, and processes are achieving their objectives and using public resources efficiently and effectively.
Compliance Audits Review whether City activities comply with applicable legislation, municipal by-laws, City Council directives, and corporate policies and procedures.
Financial Audits Evaluate the accuracy, completeness, and reliability of financial information and the controls that safeguard City assets and resources.
Continuous Auditing Ongoing monitoring activities — such as duplicate vendor payment detection — that provide real-time assurance over high-risk transactions throughout the year.
Advisory and Consulting Services Independent advice on risk management, internal controls, operational efficiency, and emerging issues, provided at the request of Council or senior management.
Follow-Up Reviews Verify that management has implemented agreed-upon recommendations from past audits, and report unresolved issues to the Finance and Administration Standing Committee and City Council. |
| How an Audit Works |
| 1. Plan
We develop a risk-based annual audit plan, approved by the Finance and Administration Standing Committee and presented to City Council for information.
|
Independence & Governance
Independence is the foundation of effective internal auditing. The Internal Audit Division operates free from interference in determining the scope of audit work, performing audit procedures, and communicating results. Auditors are prohibited from engaging in activities that could impair, or reasonably be perceived to impair, their objectivity.
To ensure organisational independence, the Internal Audit Division maintains a dual reporting structure:
Functional reporting
Internal Audit reports functionally to the Finance and Administration Standing Committee for approval of the annual audit plan and oversight of audit activity, and to City Council for approval of the Internal Audit Charter and receipt of audit reports for information.
Administrative reporting
The Division reports administratively to the Commissioner of Corporate Services for human resources, budgeting, and office resource allocation.
The Manager of Internal Audit has unrestricted access to the City Manager, Commissioners, and Members of City Council as required to fulfil audit responsibilities. Any situation that may compromise the independence or objectivity of the Internal Audit Division is disclosed to the Finance and Administration Standing Committee and City Council.
Internal auditors are prohibited from designing or implementing internal controls, developing policies or procedures they may later audit, assuming operational responsibilities, or auditing areas for which they had operational responsibility within the previous 12 months.
The Internal Audit Charter, which establishes the mandate, authority, and independence of the Division, is reviewed annually by the Manager of Internal Audit, endorsed by the Finance and Administration Standing Committee, and formally approved by City Council.
2026 Audit Work Plan
The 2026 Internal Audit Work Plan was developed using a structured, risk-based methodology that considers financial materiality, inherent risk, operational complexity, potential for savings or improvement, and time since the last review. The plan was endorsed by the Finance and Administration Standing Committee on April 14, 2026, and presented to City Council for information.
The plan may be updated during the year to respond to emerging risks, Council requests, or changing operational priorities. Any changes are reported to the Finance and Administration Standing Committee.
Mandatory/Legislated Audits
| Audit Project | Key Focus | Schedule | Status |
|---|---|---|---|
| Credit Card Compliance Audit | Annual review of corporate credit card compliance, controls, and authorisation practices. | Q1 – Q3 | In progress |
| Eye on the Street Program Audit | Quarterly compliance audit of the City’s downtown CCTV program under the Code of Practice and MFIPPA. | Q1 – Q4 | Year-round |
| PCI DSS Point-of-Sale Device Audit | Quarterly inspection of merchant POS devices to confirm tamper controls and cardholder data protection under PCI DSS v4.0.1. | Q1 – Q4 | Year-round |
Risk-Based Audits
| Audit Project | Key Focus | Schedule | Status |
|---|---|---|---|
| Fuel Management Audit | Controls over fuel sites and fleet cards to ensure fuel is safeguarded, tracked accurately, and used in compliance with City policies. | Q1 – Q2 | In progress |
| Beverage Management Audit — Golf Courses & Fort William Gardens | Alcohol inventory, sales controls, Smart Serve compliance, and adherence to provincial regulations at municipally operated venues. | Q1 – Q2 | In progress |
| Vending Machine and ATM Operations Audit | Revenue leakage, contract oversight, and operational risks across decentralised City locations. | Q2 – Q3 | Planned |
| Duplicate Vendor Payments (Continuous Auditing) | Year-round automated detection of duplicate or erroneous vendor payments and identification of control weaknesses. | Q1 – Q4 | Year-round |
| Property Lease Revenue Audit | Accuracy of lease billing, indexing, and contract tracking for leases totaling over $4 million annually. | Q3 – Q4 | Planned |
| Cash Handling Audit — Phase 1 | Segregation of duties, deposit practices, and safeguarding controls at high-volume City cash locations. | Q4 | Planned |
| Follow-Up on Past Recommendations | Implementation status of outstanding recommendations from all prior audit reports. | Q4 | Planned |
Corporate Initiatives
| Audit Project | Key Focus | Schedule | Status |
|---|---|---|---|
| BMA Municipal Comparative Study | Co-ordination of the City’s participation in the annual BMA Management Consulting comparative study covering financial, service, and tax indicators. | Q3 – Q4 | Planned |
| PCI DSS Compliance Initiative | Supporting the City’s PCI DSS compliance program in partnership with Finance and Corporate Information and Technology (CIT). | Ongoing | Year-round |
Download the 2026 Internal Audit Work Plan (PDF)
Reports to Council
Upon completion of each audit engagement, Internal Audit presents a final report to the Finance and Administration Standing Committee. Reports are provided to City Council for information. Each report outlines findings, recommendations, and the agreed Management Action Plan, including management’s response and implementation timelines.
Internal Audit Charter and 2026 Internal Audit Work Plan
- Finance and Administration Standing Committee
April 14, 2026
Report No. 123-2026-Corporate Services-Internal Audit
All completed audit reports are included in Finance and Administration Standing Committee meeting agendas and are publicly available through the City’s meeting records.
View Finance and Administration Standing Committee agendas and minutes
Finance and Administration Standing Committee
Internal Audit reports are presented to the Finance and Administration Standing Committee, which provides oversight of audit activity on behalf of City Council. Meeting schedules, agendas, and minutes are available on the City of Thunder Bay website.
Contact Us
The Internal Audit Division welcomes enquiries from City Council, management, staff, and members of the public. We are committed to acknowledging all enquiries in a timely manner.
John Tyson
Manager, Internal Audit Division
Phone: 807-631-8319
Email: john.tyson@thunderbay.ca
Khanh Nguyen
Internal Audit Analyst
Phone: 807-632-4545
Email: Khanh.Nguyen@thunderbay.ca
Internal Audit Division, Corporate Services Department
City of Thunder Bay
2nd Floor, 500 East Donald Street
Thunder Bay, ON. P7C 5K4
Contact Us
Connect
