Auditor General Finds City of Toronto Wasted Nearly $11 Million on Unused Software
The City of Toronto is spending millions of dollars on software that is never used, or is underused, according to a new report from the city’s auditor general.
The Dec. 2 audit by Tara Anderson looked at the cost of seven software applications used across Toronto. It found the city spent $10,983,716 on unused licences or underutilized software for five of the applications.
It included $7,943,392 for Microsoft M365, $1,932,376 for SAP S/4 HANA, $316,421 for SAP ECC used on premises, $657,177 on Public Digital Access, and $134,350 for Adobe Acrobat.
The auditor general also noted that unused or underutilized software was not always identified and dealt with in a timely manner.
In 2023, the city spent $44 million on software, and another $34 million on maintenance of software it currently owns, Anderson said.
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“Three major software products, M365, SAP, and PDA, had licences purchased in bulk to secure upfront discounts offered by the vendors,” she wrote, noting that the number of unused licenses that had been purchased was “significant.”Anderson said that one of the reasons for the high number of unused licences was a project being delayed due to COVID-19.
However, the report concluded that the city needed to improve its project planning and ensure that licenses are not wasted when making bulk purchases.
Anderson also noted that employees who no longer work for the city need to have access to the software discontinued, which she said has not been done quickly. She said the city also lacks reliable software inventory management, and she recommended a clear data strategy and plan be developed for the city’s software.
It’s not the first time the auditor general has looked into how the city is spending money on software.
“Software acquisition and licence management has been the subject of several Auditor General’s reports,” Anderson said. “The issues identified in this report have been raised by the Auditor General in previous reports as well.”
She noted there were 12 recommendations from such reports that are still in the process of being implemented, even though many recommendations were made more than five years ago.
“Benefits from Auditor General recommendations can only be realized when they are implemented in a timely manner,” she wrote.
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