2005 Audit Recommendations  -  Status Tracking
Document 7
Audit:  Overtime  (EMC Lead:  G. Geddes / Staff Lead:  L. Pearce)
  Audit Recommendation Management Response Comments  Budget Implications
2007 or Beyond		 Related Council Motions Status Update
    Audit Management Response Action Required Based on DCM Implementation Plan  Management Timelines    (Q1- Q4) (Risks, issues regarding implementation, etc) ($$ if known)    
1 In order to better monitor and manage overtime, Fire Services Branch (Fire Suppression - Urban Fire Fighting Division) should: a) review their staffing practice of requiring a captain for each platoon of each station in order to reduce overtime. Management disagrees with this recommendation.  This recommendation cannot be implemented at this time since it is a requirement under the collective agreement.  Section 5:10 of the Collective Agreement dictates that a Captain shall be in charge at each Station on every shift.  Should a Captain not be available an eligible acting Captain may be put in place.

In 2004, Captains in the Ottawa Fire Services incurred an average of 14.75 days of sick leave, in 2005 the number is 18.42.  However, the dollars spent on overtime to address this were reduced from $452,000 to $187,000 because management took action to promote Captains and Lieutenants ahead of time as retirements became known and improved scheduling of vacation and sick leave management.

Management has challenged the union on its interpretation of the collective agreement (currently at arbitration) which if unsuccessful will result in further reduction of overtime costs.  (Also reference below the efforts made under the AIP that are addressing this audit concern).		 This recommendation cannot be implemented at this time because it is a requirement under the collective agreement. Section 5:10 dictates that a Captain shall be in charge at each Station on every shift.       No The Arbitration award was issued on May 11th, 2006 and the crux of the decision is that mgt. will have to bring Captains in on overtime when there is insufficient numbers on duty to provide a Captain at each station.
  b) adopt a more aggressive attendance initiative and aim to decrease its usage of sick leave days in particular at the captain's level and higher. Management agrees with the intent of this recommendation.  However, Management has already implemented a very aggressive approach with its Attendance Management Program.

An Attendance Improvement Program Managers' position has recently been finalized and will be going to Job Evaluation mid-December for final rating and will subsequently be posted.  The position has been filled in an acting capacity since September 2003.  Over the past two years the program has been developed in conjunction with the Corporate Program.  Subsequently absenteeism has been reduced from 15.88 days per year to 10.68 days per year since the Attendance Improvement Program (AIP) was implemented 2 years ago.		 Management has already implemented a very aggressive approach with its Attendance Management Program. An Attendance Improvement Program Managers' positions has recently been finalized and will be going to job evaluation mid-December for final rating and will subsequently be posted. On-going     No The position has been filled in an acting capacity since September 2003. Over the past two years the program has been developed in conjunction with the Corporate Program. Subsequent absenteeism has been reduced from 15.88 days per year to 10.68 days per year since the Attendance Improvement Program was implemented 2 years ago.
  c) addresses the time-lapse by members in submitting the required leave/overtime form in order to insure the corporate financial system information is timely and accurate. Management agrees with this recommendation.  This will be addressed before Q3 2006. Management agrees with this recommendation. To be addressed before Q3 2006     No  
  d) stop maintaining an Excel sub-system and, monitor, control and report on total branch absences and overtime using the corporate financial system. Management is deferring its response to this recommendation.  The comprehensive review will examine the best reporting methods in each service.  The Excel sub-system for overtime is used for analytical purposes to determine why overtime is being used.  It tracks the reasons for overtime and the SAP system only tracks the use of overtime by cost center for budget and accounting purposes. Management is deferring its response to this recommendation. The comprehensive review will examine the best reporting methods in each service. The Excel sub-system for overtime is used for analytical purposes to determine why overtime is being used. It tracks the reasons for overtime and SAP system only tracks the use of overtime by cost centre for budget and accounting purposes.       No  
  e) provide additional training as required, on the corporate financial system to facilitate the monitoring and controlling of staff overtime and absences. Management agrees with this recommendation.  This will be implemented during Q2 2006. Management agrees with this recommendation To be implemented during Q2 2006     No  
2 That Fire Services Branch (Prevention, Training, Special Operations and Communications) monitor and manage overtime within the limits of established budget including the following:  a) start using the corporate financial system's full functionalities to monitor, control and report on total Branch overtime and leave as well as overtime and leave by employee.  Management agrees with this recommendation. Management agrees with this recommendation.   If the shift premium is backed out of the overtime cost centre, the OFS will have actually under spent its 2004 overtime budget by one (1%).   No  
  b) address the time-lapse of members to submit the required leave/overtime form in order to insure the corporate financial system information accuracy. Management agrees with this recommendation.  The comprehensive review will need to establish reasonable timelines given the large contingent of staff operating from a large number of decentralized stations there are time lapses experienced with respect to the time for the form to make its way from the station back to Administration and collect all the necessary signatures. The comprehensive review will need to establish reasonable timelines given the large contingent of staff operating from a large number of decentralized stations there are time lapses experienced with respect to the time for the form to make its way from the station back to Administration and collect all the necessary signatures.       No  
  c) explore the possibility of modifying the collective agreement to alter Fire Prevention staff work/shift schedule to reflect job requirements, as is the practice in other areas within the Fire Services Branch. Management agrees with this recommendation.   The comprehensive review will assist in determining optimal levels of overtime for this service. The comprehensive review will assist in determining optimal levels of overtime fore this service.       No  
  d) review its work assignment, and if required train additional resources, to ensure that there is a sufficient pool of resources with the necessary skills to do repairs during regular working hours to the extent possible. Management agrees with the intent if this recommendation. However, Management has been addressing the situation by getting much if the work done on shift as possible. Management agrees with the intent if this recommendation. However, Management has been addressing the situation by getting much if the work done on shift as possible.     No  
3 That the Customer Services and Operational Support Division of the Utility Services Branch:

a) monitor and manage overtime within the limits of the established overtime budget, independently from the compensation envelope.		 Management agrees with this recommendation.  The Financial Support Unit will adjust the line items in the overall compensation budget to better reflect actual spending, as was indicated during the 2006 Budget process.  However, it should be noted that, given the 24/7 nature of City services and the unpredictability of some significant service drivers, Management will continue to work within the total compensation envelope to continue to provide front-line services where and when they are needed.  The overtime review will help determine where efficiencies can be found within this line item. FSU to adjust OT budget in 2006 Budget submission to reflect actual spending. After release of Overtime Review report, will review opportunities for efficiencies as identified. Q2   $0.00 No Aug. 31 - COMPLETE
Depending on Mother Nature and other factors, we may overspend the budget in order to deliver the expected level of service
  b) conduct a more detailed review of the overtime budget annually, in conjunction with FTE levels and service levels, to reflect anticipated/optimum overtime expenditures. Management agrees with this recommendation.  Efforts will be made in documenting and analyzing the relationship between FTEs, overtime and service levels. Evaluate the possibility to replace overtime with regular staff. Q3   $0.00 No Aug. 31 - COMPLETE
We may already be at the most effective levels, no savings expected.
  c) for employees using the MMS-ITX system, ensure a 3-way match at time of approval for overtime - work order, time sheet, and ELR/TR form. Management agrees with this recommendation.  The recommendation mirrors the procedure already in place to approve and sign off overtime. Ensure a 3-way match. Q1   $0.00 No Aug. 31 - COMPLETE
  d) for employees not using the MMS-ITX system, ensure sufficient detail is included on the ELR/TR form as to the overtime worked. Management agrees with this recommendation. Include details on ELR/TR form. Q1   $0.00 No Aug. 31 - COMPLETE
  e) review shifts on a regular and ongoing basis to ensure most effective use of overtime. Management agrees with this recommendation. Review use of overtime on shift. Q2   $0.00 No Aug. 31 - COMPLETE
We may already be at the most effective levels, no savings expected.
  f) formalize the delegation of authority to the appropriate operational level that may authorize and approve overtime. The delegation of  authority is already delegated to the appropriate operational level.  Management will formalize and document the current procedure. No action required. Q2   $0.00 No Aug. 31 - COMPLETE
  g) formalize Service Level Agreements between Divisions as to what activities can be performed on overtime. Management agrees with this recommendation.  Service level agreements exist but are not formalized.  The division has been formalizing these agreements since early 2005 and will continue this process. Develop the First Response procedure manual. Q3   $0.00 No Aug. 31 - 50% complete
  h) review and update First Response Manual on a regular and ongoing basis.  Include specific guidelines as to which situations need immediate response and which can be deferred. Management agrees with the recommendation.  The First Response Manual, developed 3 years ago, already includes specific guidelines to that effect.  These guidelines will be reviewed and updated in 2006. Prepare a repository (the plan) for all procedures in First Response. Q3   $0.00 No Aug. 31 - COMPLETE.  No issues.
   i) review corporate financial system data on overtime hours monthly as a mechanism to track high overtime users and reconcile the data to MMS-ITX to ensure high levels or data integrity. Management agrees with this recommendation.  Since early 2005, a data quality assurance plan is being developed.  Data reconciliation between SAP and ITX-MMS is included on this project work plan. Development of a report to reconcile SAP to ITX . Q2   $0.00 No Aug. 31 - 50% Complete
No issues
   j) explore the opportunity to have one point of data entry with next MMS system to reduce data entry workload and data entry errors. Management agrees with this recommendation. Feasibility study to be undertaken under the ITX replacement project. Q4 Small components of a very large project
Involves Corporate IT
Involves many stakeholders outside USB		 ?? No Aug. 31 - 0% Complete
4 That the Wastewater & Drainage Services Division of the Utility Services Branch: 
a) monitor and manage overtime within the limits of the established overtime budget, independently from the compensation envelope.		 Management agrees with this recommendation.  Overtime will be specifically monitored and managed as part of the overall budget review process. Being done         Aug. 31 - Completed and now ongoing
  b) conduct a more detailed review of the overtime budget annually, in conjunction with FTE levels and service levels, to reflect anticipated/optimum overtime expenditures. Management agrees with this recommendation.  Overtime budget will be analysed as part of the comprehensive overtime review, then reviewed and adjusted as part of the annual budgeting process. Will be done in budget process Q3 - Q4 None None No Aug. 31
  c) for employees using the MMS-ITX and MMS-SAP systems, ensure work orders and ELR/TR forms are matched at time of approval. Management agrees with this recommendation.  This will be incorporated into documented procedures. Being done Q2     No Aug. 31 - Completed and now ongoing
  d) for employees not using the MMS systems, ensure sufficient detail is included on the ELR/TR form as to the overtime worked. Management agrees with this recommendation.  This has already been directed to staff and will be incorporated into documented procedures. Being done Q2     No Aug. 31 - Completed and now ongoing
  e) formalize the delegation of authority to the appropriate operational level that may authorize and approve overtime. Management agrees with this recommendation.  This will be incorporated into new procedures. Completed Q2     No Aug. 31
  f) complete and formalize the "Guidelines for Overtime Call-Outs".  Include specific guidelines as to which situations need immediate response and which can be deferred. Management agrees with this recommendation.  This will be incorporated into documented procedures. Completed Q1     No Aug. 31
  g) review corporate financial system data on overtime hours monthly as a mechanism to track high overtime users and reconcile the data to MMS-ITX and MMS-SAP ensure high levels of data integrity. Management agrees with this recommendation.  Reconciliation of SAP Financial with MMS will form part of the monthly budget review. Requires ITX Replacement Ongoing     No Aug. 31
  h) explore the opportunity to have one point of data entry with next MMS system to reduce data entry workload and data entry errors. Management agrees with this recommendation.  The ability to link the replacement for ITX MMS to the SAP payroll system will be requested in the new system requirements.  It should be noted that the responsibility for this project is with the Corporate IT group in effecting this system linkage. Michel Chevalier on ITX Replacement TAC 2007 Small components of a very large project
Involves Corporate IT
Involves many stakeholders outside USB		 ?? No Aug. 31 - 0% Complete
5 That the Solid Waste Services Division of the Utility Services Branch: 
a) monitor and manage overtime within the limits of the established overtime budget, independently from the compensation envelope.		 Management agrees with this recommendation.  The Branch has requested an adjustment to the overtime line item and regular reporting of both compensation and overtime line items for management review. Overtime is being monitored and managed monthly. Ongoing 2006       Aug. 31 - 70% completed
  b) conduct a more detailed review of the overtime budget annually, in conjunction with FTE levels and service levels, to reflect anticipated/optimum overtime expenditures. Management agrees with this recommendation.  The work schedule review was undertaken in 2005 and a new rotating start time has been implemented as of August 2005 to attempt to optimize resources to operational demands from incoming waste.  This process will be reviewed when the staff complement is filled. 2007 budget consideration- adjustments made, fully staffed. Q2 - Q3 2006       Aug. 31 - 50% completed
  c) review resource levels at Landfill Operations and identify more optimal work schedules to reduce levels of overtime. Work schedules were revised in 2005 with rotating start times to ensure optimal use of staff.  Solid Waste Disposal has yet to be fully staffed which affects the full effectiveness of the work schedule. Resource levels being reviewed with the development of the Development and Operations report for the Operations of the Expanded Site and the requirements of the new C of A. Q3 - Q4 2006       Aug. 31 - 10% completed
  d) for Landfill Operations, implement more rigorous processes and controls for authorizing and approving overtime. Management have already implemented written instruction to Supervisors and Program Managers regarding authorization for sign off of overtime.  The Manager is signing off on all overtime for the Solid Waste Disposal Section until the Program Manager position is filled. Signing authority revised and implemented. Q1 2006 COMPLETE     Aug. 31 - COMPLETED
  e) ensure corporate standards are met with regard to completing and submitting ELR/TR forms. Management agrees with this recommendation.  Solid Waste Disposal staff have already received a training refresher session on the completion of ELR/TR forms. Staff have been retrained on the proper ELR TR forms completion. Q2 2006 COMPLETE     Aug. 31 - COMPLETED
  f) ensure sufficient detail is included on the ELR/TR form as to the overtime worked. Management agrees with this recommendation.  ELR/TR forms are now being completed with the rationale for overtime. Ongoing ongoing COMPLETE     Aug. 31 - COMPLETED
  g) formalize the delegation of authority to the appropriate operational level that may authorize and approve overtime. Management agrees with this recommendation.  A formal documented process will be developed detailing delegated authority including staff in an "acting" role. All overtime being approved by an MPE level employee,  i.e. manager, program manager or section manager. Q2 2006 COMPLETE     Aug. 31 - COMPLETED
  h) review corporate financial system data on overtime hours monthly as a mechanism to track high overtime users.  For Waste Collection Operations, reconcile the data to the Excel database to ensure high levels of data integrity. Management agrees with this recommendation.  A process will be put into effect in 2006. Monthly review of overtime hours per employee. ongoing 75% Complete     Aug. 31 - 75% completed
  i) consider revising the practice of letting Waste Collectors leave early. The In-house Waste Collection Group was created to prepare a competitive bid for solid waste collection with an In-house Bid Team in a Public/Private Competitive Service Bid in 1998.  The financial success of the Public Sector In-house Waste Collection Group in a competitive waste management industry is attributed to management's abillity to retain good employees and provide efficient and effective services.  The Solid Waste Administrative Services Collection Division has delivered over $1.7 million dollars of accumulated additional savings over the past 7 years of service provision.  Waste Collection staff have provided a tendered bid on the basis of a staf wage rate that is linked to the waste industry standards, rather than the higher CUPE 503 Heavy Equipment Operator wage rates.  Our working conditions, effectiveness, and reduced  costs in delivery service have provided efficiency and value to the residents of Ottawa throughout this service delivery timeframe. We are continuing to operate the solid waste in-house collection activities as bid.  Our working conditions, effectiveness and reduced costs in delivery service have provided efficiency and value to the residents of Ottawa throughout this service delivery timeframe.  Waste Collection Services operate consistent with the private sector and industry practices of ensuring that the team completes the entire pick-up zone each day.  If a crew completes their route early, they are reassigned to other locations until the entire daily route of solid waste and recycling pick-up is complete.

The existing procedures have not generated any additional overtime to complete the daily solid waste pick-up.		 No change     No Aug. 31 - No change
    Waste Collection Services operates consistent with the private sector and industry practices of ensuring that the team completes the entire pick-up zone each day.  If a crew completes their route early, they are reassigned to other locations until the entire daily route of solid waste and recycling pick-up is complete.

The existing procedures have not generated any additional overtime to complete the daily solid waste pick-up.		            
6 In order to better monitor and manage overtime, Real Property Asset Management, Program Properties Division, should: 
a) continue its efforts to monitor and manage overtime within the limits of their established overtime budget		 The comprehensive review will examine the best reporting methods in each service.  The input of the Maintenance Activity Sheets is driven numerically with fixed codes assigned to the leave types.  Incidence reporting parallels the time sheet process whereby a "reason" is documented, approved, and reported with respect to overtime and on call usage.  Continued emphasis will be placed on this information source for the purposes of overtime management. The comprehensive review will examine best reporting methods in each service.     None No Review complete. Results are part of upcoming comprehensive corporate report on OT.
  b) require that staff provide a rationale and justification on the daily Maintenance Activity Sheets as to the reason for any overtime claimed. The input of Activity Sheets is numerically driven with fixed codes assigned to the leave types. Continued emphasis will be placed on this information source.     None No Reason for OT has been incorporated into activity sheets.
7 In order to better monitor and manage overtime, Real Property Asset Management Branch, Venture Property, should: 
a) require that staff provide a rationale and justification on the daily Maintenance Activity Sheets as to the reason for any overtime claimed.		 Management agrees with this recommendation.  The two operational supervisors will be directed to process and approve overtime paperwork using their signature versus a signature stamp.  Follow-up by the data input personnel to monitor compliance will commence immediately. Corporate Security overtook this function as part of UPR.  Corporate Security would not have incurred this expense (which was covered by Bridge Financing) was it not for this transfer.  Since this change, there have not been any further  overtime charges.     None No There is no OT in Corporate Security. All staff are MPE.
  b) require that staff (OC Transpo facility) sign the daily Maintenance Activity Sheets and that any use of signature stamp be stopped. Two operational supervisors will be directed to process and approve overtime paperwork using their signature versus a signature stamp. Follow-up by the data input personnel to monitor compliance will commence immediately.     None No Complete
8 That Payroll Division ensure appropriate controls are in place for processing of all ELR/TR forms including: 
a) ensure appropriate authorization is present.		 Although there is a limited audit sample.  Payroll has and will be taking action to expand its control procedures.  The time/leave forms have been revised to incorporate a designated area where authorizing supervisors or managers will print their name and title.  This will aid in the identification of signatures.  In addition, Payroll will prepare a current list of managers and supervisors who are authorized to sign time/leave forms as a further control measure. Payroll has and will be taking action to control its procedures. Time/leave forms have been revised to incorporate a designated area where supervisors or managers will print the name and title.  Payroll will prepare a list of managers eligible to do this.   Payroll has requested and received a list of individuals who are authorized to sign OT forms. This list is used by Payroll to verify signing authority. Changes to the list must be made in writing to Payroll by the responsible manager. None No Complete
  b) ensure incomplete, or ELR/TR forms with errors, are not accepted and returned to the Client Group for complete information before processing. In the past, an informal process was used to return timesheets that were not complete.  Although the audit found few forms with missing information and some of that information was not significant (e.g. missing the date of signature of the employee), adjustments will be made in payroll procedures.  In the future, a more formal approach will be implemented.  Forms that are not completed properly will be returned to the relevant area for correction with an explanation of why the form is being returned.  Due to the volume of forms (Payroll processes approximately 400,000 lines of data entry per year), minor changes will continue to be made further to telephone conversations with the authorized supervisor / manager. Adjustments will be made in this area.  In the future a more formal  approach will be taken.   Forms are returned to the responsible manager with a covering memo if they are not properly completed.  When a form is returned to a manager  a copy of the form and the covering memo are BF'd to ensure forms are being returned and completed correctly. None No Complete
  c) in cases where the system will not accept the data being entered (e.g., on-call time being claimed on the same dates as annual leave, IPP, or time off in lieu), Data Entry Clerks should not create "work-arounds" by entering the time on different dates. There are situations where on-call pay may be claimed while an employee is on leave.  This would include situations where an employee has a specific skill set or emergency situations.  As the  system does not currently allow the entry of this time, it is necessary to do "work-arounds".  In the future, the City will investigate the feasibility of adjusting the pay system to allow the entry of this legitimate time. The City will investigate the feasibility of adjusting the pay system to allow the entry of legitimate time.   Payroll data entry clerks have been provided with the correct procedure to enter On-Call hours on days where a full day absence has been entered.  None No Complete
9 For the areas covered in the 2002 Audit of Overtime Costs (Transit Services, Fleet Maintenance, Paramedic Services and Surface Operations), Management should monitor and manage overtime expenditures within the limits of their established budgets. Management agrees with this recommendation.  Management acknowledges that the budgeting for overtime has been flawed, and that overtime budgets should have been revised to more closely reflect actual requirements.

 The comprehensive review will help identify the optimal levels of overtime in these areas and budgets will reflect those levels.   Deloitte is currently conducting an OT Branch by Branch Review. None Council motion #9: "And be it further resolved that the report on the comprehensive overtime review include complete information on overtime budgets and actual spending, including any adjustments that are recommended as a result of Council's direction." Report will be delivered to Council.
    Management has taken aggressive attendance management measures in each of these service areas, as indicated by the Auditor General, and will continue to monitor and manage attendance to help keep overtime as low as possible.  It should be noted, however, that these are 24/7 on the street services and overtime will continue to be a necessary part of operations for a number of reasons:  overtime must be paid to those who provide service on statutory holidays and to those who respond to emergency/weather-related situations.  These are services that must be provided so, when the City has hiring freezes in effect the service is provided by existing staff working overtime.  In some cases, as in Paramedic Services and Transit Services, overtime is accrued for contracted services that the City receives revenues for.  In Transit Services, the 2004 KPMG Transit Operator Establishment Review stated that within limits (total work hours), overtime is more cost effective than straight time for the City, because  benefits are not paid on overtime wages.            
    The comprehensive review will help identify the optimal levels of overtime in these areas and budgets will reflect those levels.            
10 Departments should better monitor and manage overtime within the limits of their established overtime budget.  This would include modification of shifts to address expected workload, better management of absenteeism, and an active budget review process. Management agrees with this recommendation. Management will establish clear protocols around the specific criteria for overtime. This will be part of the comprehensive review.     None No As above.
    Management will establish clear protocols around the specific criteria for overtime on a service-by-service basis, and this will be part of the comprehensive review.  Overtime budgets will continue to be managed as part of the overall compensation budget, rather than as a single line item.  Overtime is generally not viewed in isolation of the overall compensation budget and it is management's view that it should not be viewed in isolation given both the 24/7 nature of many City services, the unpredictability of some significant service drivers (i.e. weather conditions, infrastructure failure like water mains or traffic lights, etc.) and the hiring freezes that have been put in place over the past three years.  All of these factors are managed within the total compensation envelope to continue to provide front-line services where and when they are needed.            
11 Departments should utilize the corporate financial system's full functionalities to monitor, control, and reduce total overtime as well as individual employee overtime and that where required, staff be provided with additional training.  In addition, that any use or maintenance of sub-systems other than the corporate financial system should be discontinued.  In order to ensure the corporate financial system's information accuracy, departments should address the time lapse of employees submitting the required leave/overtime forms. Management agrees with the intent of this recommendation. 

This will be part of the comprehensive review.  Given the number of different facilities, however, management expects that there will always be some time lapse in many services.  The review will address methods of minimizing that lapse.		 This will be part of the comprehensive review. Given the number of different facilities, management expects that there will always be  some time lapses in many services. The review will access methods of minimizing this.     None No As above.
12 That Employee Services develop clear policies and guidelines regarding the management of overtime. Management agrees with the intent of this recommendation.

However, management believes most policies and guidelines will be developed on a service-by-service basis rather than a corporate basis given the number of operational variables between branches e.g. service commitments, staffing and budget levels and applicable collective agreements.		 Management agrees with the intent of this recommendation.  Most policies and guidelines will be developed on a service-by-service basis rather than a corporate basis given the large number of operational variables between branches.     None No Following corporate review, as above.
13 That the report on the comprehensive overtime review include complete information on overtime budgets and actual spending, including any adjustments that are recommended as a result of Council's direction, and that for the remainder of 2006, the Operating Status and Forecast Report provide City Council with a detailed accounting of compensation, including actual allocations for overtime, salary and benefits.       As above. Deloitte is conducting Branch by Branch overtime review. None No As above. (#9)