Item - 2014.AU15.6

The Auditor General’s Work Plan includes the development of a system of continuous controls monitoring for selected City expenses.  The Continuous Controls Monitoring Program was initiated in 2011.  Initial expenses selected for continuous 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 program to include staff absences.  Our review includes staff absences resulting from staff sick time, sick time for staff dependents and bereavement.  In July 2013, we presented our first report on staff absenteeism covering the period January 1 to December 31, 2012.  The report is available at:  http://www.toronto.ca/legdocs/mmis/2013/au/bgrd/backgroundfile-59791.pdf 

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. 

This current report includes the results of our analysis of staff absenteeism due to sickness, sick dependent and bereavement time for over 35,000 City employees during 2013.  The purpose of our analysis is to review absentee trends and costs and provide management with exceptions warranting further review. 

Our analysis indicates that 2013 paid staff absences declined by $8.7 million or nine per cent when compared with 2012.

Staff absences have a direct impact on divisional productivity and staff costs.  Additional staff costs result from staff replacement and overtime costs. 

Staff absentee information is provided to management in the form of exception reports on a periodic basis for comment and follow-up on unusual instances.  A summary of management comments received on the reports for 2013 is provided in the ‘Comments’ section of this report.