Item - 2012.AU6.3
Tracking Status
- City Council adopted this item on April 10, 2012 without amendments.
- This item was considered by the Audit Committee on February 29, 2012 and adopted without amendment. It will be considered by City Council on April 10, 2012.
AU6.3 - Continuous Controls Monitoring - Review of Employee Overtime and Mileage Reimbursements
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on April 10 and 11, 2012, received the report (February 7, 2012) from the Auditor General, for information.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45255.pdf
Motions (City Council)
Vote (Adopt Item) Apr-10-2012 3:44 PM
| Result: Carried | Majority Required - AU6.3 - Adopt the item |
|---|---|
| Total members that voted Yes: 23 | Members that voted Yes are Maria Augimeri, Shelley Carroll, Raymond Cho, Josh Colle, Glenn De Baeremaeker, Sarah Doucette, Doug Ford, Mary Fragedakis, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Adam Vaughan, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 22 | Members that were absent are Paul Ainslie, Ana Bailão, Michelle Berardinetti, Gary Crawford, Vincent Crisanti, Janet Davis, Mike Del Grande, Frank Di Giorgio, John Filion, Paula Fletcher, Rob Ford, Mark Grimes, Pam McConnell, Peter Milczyn, Ron Moeser, Cesar Palacio, John Parker, Anthony Perruzza, Jaye Robinson, David Shiner, Karen Stintz, Michael Thompson |
AU6.3 - Continuous Controls Monitoring - Review of Employee Overtime and Mileage Reimbursements
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council receive the report (February 7, 2012) from the Auditor General, for information.
Origin
Summary
The Auditor General’s Audit Work Plan included the development of a system of Continuous Controls Monitoring for selected City expenses. The objective of the Continuous Controls Monitoring Project is to develop reports on a regular basis to assist management in proactively monitoring financial transactions, detect expenses that appear unusual and identify areas where internal controls may be inadequate.
The Continuous Controls Monitoring process involves the ongoing and regular identification of unusual transactions in the City’s SAP financial information system. The Auditor General uses specialized proprietary audit data extraction software to assist in the continuous controls monitoring process.
The use of continuous controls monitoring was initiated by the Auditor General’s Office in early 2011. The initial expenses selected for the application of continuous controls monitoring were employee overtime and employee mileage reimbursements.
For 2011, employee overtime amounts in excess of 50 per cent of annual base salary and mileage reimbursement amounts exceeding $10,000 were identified and reviewed.
For the period January 1, 2011 to December 31, 2011, overtime expense decreased from approximately $45 million in 2010 to $41 million in 2011. Similarly, mileage reimbursement payments were reduced from approximately $4.2 million in 2010 to $3.9 in 2011.
As part of the continuous controls monitoring process, the City Manager was requested to review unusual levels of overtime and mileage reimbursements identified by the Auditor General. The City Manager was requested to report back to the Auditor General on the reasons for the overtime and mileage reimbursements identified. Management responses indicated that divisions are currently monitoring the level of overtime and mileage reimbursements on an ongoing basis as part of an effort to reduce operating budgets.
Background Information
https://www.toronto.ca/legdocs/mmis/2012/au/bgrd/backgroundfile-45255.pdf