This is the Auditor General’s first review of the Toronto Transit Commission’s (TTC) Telecommunication contracts and payments. A high volume of transactions, frequent service changes and multiple price plans create a high risk of overpayments. Effective management of service plans and telecommunication resources provide opportunities for savings.
An audit of the City of Toronto’s (City) telecommunication expenses by the Auditor General in 2014 resulted in savings of $3.4 million. The report entitled “Controls Over Telecommunication Expenses Need Improvement” was forwarded by the City’s Chief Information Officer to all major City Agencies and Corporations, including the TTC.
Based on the findings of the 2014 audit at the City, we decided to extend the telecommunications audit to the TTC. The audit focused on expenses incurred from 2014 to 2016. The TTC spent $19.3 million during this period. The audit did extend the analysis to 2017 in certain areas where data was readily available.
The objective of this audit was to assess internal controls over telecommunication contracts, payment of invoices and the monitoring of expenses at the TTC. Telecommunication services include phone lines (land lines), wireless phone services, internet, and voice and data communication circuits.
Our audit provides 13 recommendations which will result in improved controls, better use of telecommunication resources and increased due diligence in acquiring telecommunication services.