Item - 2015.AU3.15

The Audit Committee recommends that:

1.  City Council receive the report (May 5, 21015) from the Auditor General for information.

Continuous Controls Monitoring Program

Since 2011 the Auditor General’s Work Plan has included a project in relation to continuous controls monitoring of 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 involves the ongoing and regular identification of transactions exceeding predetermined criteria.  The objective is to provide periodic reports to management to assist in proactively monitoring financial transactions, detecting unusual expenses and identifying areas where internal controls could be strengthened.

Program Evolution

-  2011 - initiated continuous monitoring of employee overtime and mileage reimbursements

-  2012 - program expanded to include standby pay

-  2013 - initiated review of staff absenteeism for selected ill, ill dependent leave and bereavement leave

-  2014 - initiated review of telecommunication expenses

Staff Absenteeism

In May 2013 the Auditor General issued the initial report on staff absenteeism.  This report can be accessed using the link below.

http://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-59791.pdf

The Auditor General’s second report on staff absenteeism was issued in May 2014.  This report provided a breakdown of several categories of absenteeism.  The report can be accessed using the link below.

http://www.toronto.ca/legdocs/mmis/2014/au/bgrd/backgroundfile-69293.pdf

This current report includes our summary of 2014 staff absenteeism due to illness, ill dependent leave and bereavement leave for over 35,000 City employees.  The purpose of the review is to highlight absenteeism trends, related costs and provide management with exceptions warranting further review.

The report results indicate staff absences increased by over 7 per cent compared to 2013.  However, compared to 2012 absenteeism has decreased by two per cent.  From a financial perspective, when staff salaries are applied to days absent, the cost of these absences amounted to just under $105 million in 2014.

Appendix 1 of this report provides a summary of staff absences by City division.