The Auditor General’s Work Plan included the development of a system of continuous controls monitoring for selected City expenses. The objective of the Continuous Controls Monitoring Program is to provide periodic reports to management which assist in proactively monitoring financial transactions, detecting unusual expenses and identifying areas where internal controls could be strengthened.
The Continuous Controls Monitoring Program was initiated in 2011. Initial expenses selected for the application of continuous controls monitoring were employee overtime and mileage reimbursements.
Since the initiation of this project in 2011, there has been a consistent decrease in overtime and mileage expenses. Management indicates that City divisions are monitoring overtime and mileage reimbursements on an ongoing basis as part of its initiative to reduce operating budgets.
The following chart provides three years statistics for staff overtime and mileage payments:
|Total Overtime||$38.8 million||$41 million||$45 million|
|Overtime Hours||907,500||984,400||1.08 million|
|Number of Staff with Overtime > 30% of Annual Pay||124||146||212|
|Staff Mileage||$3.4 million||$3.9 million||$4.2 million|
|Total Kilometers paid||6.5 million||7.5 million||8 million|
|Number of Staff > 10,000 km of mileage in Annual Claims||17||37||53|
There has been an overall reduction of $7 million in overtime and staff mileage payments since December 2010.
The Auditor General’s Continuous Controls Monitoring Program was initiated with an intent to expand it to include other operational areas within the City including Agencies and Corporations. In July 2012, continuous controls monitoring was initiated at the Toronto Transit Commission. We anticipate that similar reductions in overtime will occur.
While it is not possible to accurately attribute these reduced costs to the Auditor General’s continuous controls monitoring program, it is likely that such costs would not have occurred without the level of scrutiny by the Auditor General’s Office.