Item - 2013.AU13.15

The Audit Committee requested the Auditor General to include in future monitoring reports the divisional breakdown of the City of Toronto's overtime, standby pay and mileage expenses.

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 Auditor General initiated the Continuous Controls Monitoring Program in early 2011.  Initial expenses selected for the application of continuous controls monitoring were employee overtime and mileage reimbursements. 

In 2012, the program was expanded to include standby pay.  In January 2013, the Auditor General further expanded the Continuous Controls Monitoring Program to include staff absenteeism.  Staff absenteeism is covered in a separate report. 

In 2011 and 2012 City overtime and mileage reimbursement expenses decreased a combined total of $7 million.  This latest report provides overtime and mileage reimbursement information for the six months from January 1, 2013 to June 30, 2013. 

During the past six months overtime costs increased over the same period in 2012 by approximately $300,000.  Standby pay decreased by $200,000 and staff mileage reimbursements decreased by $100,000.  Management indicates that City divisions are monitoring overtime, standby pay and mileage reimbursements on an ongoing basis as part of ongoing efforts to reduce operating budgets.