Condominium Management
Regulatory Authority of Ontario

Auditor General of Ontario’s Report

On December 7, 2020, the Office of the Auditor General of Ontario released its annual report, which included a value-for-money audit focusing on condominium oversight in Ontario.

Read the CMRAO's Implementation Plan on the Auditor General of Ontario's Recommendations

Frequently Asked Questions about the Auditor General's Report

What is the value for money audit?

The Auditor General is an independent officer of the Legislature mandated under the Auditor General Act, 1990, to assess government programs, agencies, certain public-sector organizations receiving government grants, Crown-controlled corporations and certain other organizations such as administrative authorities to determine if they are using the money provided efficiently, and to evaluate whether those entities have effective procedures in place to measure and report on their effectiveness.

The OAGO oversees two types of audits: One is called the Attest Audit, and the other the Value-for-Money Audit. Through detailed scrutiny and reporting on government spending and oversight of certain sectors, the Auditor General helps the Legislature hold the government accountable. Results of these audits are published in the Auditor General’s Annual Report.

 

Why was the CMRAO audited by the Office of the Auditor General of Ontario?

The Auditor General’s mandate is to hold public sector organizations accountable to ensure that Ontarians receive value from their public programs and services. Section 22 of the Condominium Management Services Act, 2015, authorizes the Auditor General to conduct an audit of the CMRAO.

In the course of planning their ongoing activities, the OAGO identified condominium oversight as a candidate for the value-for-money audit for the 2019–20 audit year, and began their research, which involved the CMRAO, the Condominium Authority of Ontario (CAO), and the Ministry of Government and Consumer Services.

The Auditor General’s findings and recommendations have now been published in a report that is available on the OAGO website.

 

What are the key recommendations from the Auditor General’s report?

The Auditor General’s report identified four key recommendations for the CMRAO:

  1. Sharing data with the CAO to support proactive identification of unlicensed individuals and businesses, and bringing them into compliance
  2. Enhancing the CMRAO’s complaints handling and resolution process
  3. Enhancing the CMRAO’s inspection program by conducting proactive, risk-based, standardized inspections
  4. Setting targets and publicly reporting on key activities within CMRAO’s legislated mandate

 

What is the CMRAO doing about unlicensed practice?

The Auditor General’s report identified discrepancies between the CMRAO’s list of licensed condominium managers and management companies, and those that are identified as condominium managers and management companies in the CAO’s public registry. The report identified 317 individuals and 156 businesses in the CAO’s public registry that were not licensed.

With respect to the 317 individuals, the discrepancies that were identified in the Auditor General’s report can be classified into the following four categories:

Category

Description

Current Number of Cases

 1. Unlicensed individual with a licensed management provider company  101
 2. Unlicensed individual only (no company listed at condominium)  52
 3. Unlicensed individual and unlicensed company listed at condominium  128
 4. Potential clerical error or other (individual had been removed from CAO’s registry by August 2020 without communication from CMRAO or CAO)  36

The CMRAO has begun reviewing all cases associated with a licensed management company (Category 1). Below are our preliminary findings regarding the 101 individuals identified in this category:

  • In 68 cases, the management company informed the CMRAO that the individual identified was not providing condominium management services and therefore would not require a licence. These individuals typically held a different type of position within the management company, such as administrative assistant.
  • In 21 cases the manager was licensed, but was using their maiden name or another variation in the CAO returns.
  • In 1 case, the individual went on sick leave prior to the licensing requirements coming into effect.
  • In 1 case, the manager’s licence was inactive because the licensee was on maternity leave.
  • In 1 case, the person had applied for a licence after the Auditor General’s analysis was submitted to CMRAO.
  • In 1 case, the person was no longer providing services to the condominium.
  • In 3 cases, the individual was employed directly by the condominium and the management company could not confirm the nature of the individual’s services.
  • In 3 cases, the individual was no longer employed by the management company.
  • In 2 cases, the CMRAO is gathering more information.

The CMRAO will continue to pursue all cases of unlicensed practice in fulfilling its regulatory mandate and ensuring the integrity of the licensing system.

 

When will the CMRAO begin implementing the recommendations from the Auditor General’s report?

The CMRAO will consider the recommendations of the Auditor General as we continue our work to enhance our service delivery and strengthen our role as a modern regulator in Ontario’s rapidly expanding condominium sector.

For media inquiries, please contact communications@cmrao.ca.