2005 Audit Recommendations  -  Status Tracking
Document 3
Audit:  Overtime  (EMC Lead:  S. Finnamore / 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 successful 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. Completed     No Complete

Section 5:10 of the Collective Agreement dictates that a Captain shall be in charge at each Station on every shift. Fire Services management challenged the union on its interpretation of Section 5:10 through the Arbitration Process in support of the Auditor General's recommendation to review the requirement of a Captain for each platoon of each station. The City was not successful in the Arbitration award issued by the Arbitrator on May 11th, 2006. The crux of the decision handed down was that mgt. will have to bring Captains in on overtime when there is insufficient numbers on duty to provide a Captain at each station. As a result of the lost arbitration there are no further options to pursue and this recommendation cannot be implemented.  
  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. Completed     No Complete

The position has been filled on a permanent basis as of March 2006. Subsequent absenteeism has been reduced from 15.88 days/year to 10.68 days/year since the Fire Services' Attendance Improvement Program was implemented as a Pilot Project in 2004.
1 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. Completed     No Complete

Management has enforced the importance of submitting forms and  98% are currently being received by month end.
1 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. Completed     No Complete
In an effort to implement the recommendation of the Auditor General, OFS staff met with SAP resources to review the functionality of SAP in support of OFS’ resource monitoring and control. It was determined that SAP currently does not have the functionality to support OFS given the issues surrounding the timeliness of inputs to the system, the complexity of the branch’s staffing and shift schedules and the way in which information must be inputted into SAP. Until SAP is reconfigured to meet the needs of OFS, which cannot be predicted given the capacity issues within the SAP teams, this recommendation cannot be implemented. It is anticipated that implementation of the electronic rostering module within OFS' Records Management System (RMS) may assist in the monitoring, control and reporting on absences and overtime. This implementation has been identified as part of the OFS 2007 work program.
1 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 Completed     No Complete
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. Completed 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 Complete

In an effort to implement the recommendation of the Auditor General, OFS staff met with SAP resources to review the functionality of SAP in support of OFS’ resource monitoring and control. It was determined that SAP currently does not have the functionality to support OFS given the issues surrounding the timeliness of inputs to the system, the complexity of the branch’s staffing and shift schedules and the way in which information must be inputted into SAP. Until SAP is reconfigured to meet the needs of OFS, which cannot be predicted given the capacity issues within the SAP teams, this recommendation cannot be implemented. It is anticipated that implementation of the electronic rostering module within OFS' Records Management System (RMS) may assist in the monitoring, control and reporting on absences and overtime. This implementation has been identified as part of the OFS 2007 work program.
2 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. Completed     No Complete

Management has enforced the importance of submitting forms and  98% are currently being received by month end.
2 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. On-going     No August 27, 2007 - This item is still at arbitration.

This issue is currently being addressed as part of the 2006 collective bargaining process. Once negotiations are complete and the requirement for arbitration is determined more information will be available.
2 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. On-going     No Complete
This has been done to the fullest extent possible.
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 Complete

Depending on Mother Nature and other factors, we may overspend the budget in order to deliver the expected level of service
3 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 Complete

We may already be at the most effective levels, no savings expected.
3 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 Complete
3 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 Complete
3 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 Complete

We may already be at the most effective levels, no savings expected.
3 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 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. Jan-07   $0.00 No Complete.
August 27, 2007
3 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 Complete

No issues.
3  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 Complete

No issues.
3  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. 2008 Small components of a very large project
Involves Corporate IT
Involves many stakeholders outside USB		 ?? No Complete.

Implementation of this recommendation requires completion of the MMS-ITX replacement project.  This project is proceeding, but is not expected to be complete until 2008.
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 Completed       Complete
4 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 during annual budgeting process and adjusted accordingly. Will be done in budget process Q3 - Q4 None None No Complete
4 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 Complete
4 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 actually has already been directed to staff and will be incorporated into documented procedures. Being done Q2     No Complete
4 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 Complete
4 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 Complete
4 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 2008     No August 27, 2007 - no additional comments.

Implementation of this recommendation requires completion of the MMS-ITX replacement project.  This project is proceeding, but is not expected to be complete until 2008.
4 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 2008 Small components of a very large project
Involves Corporate IT
Involves many stakeholders outside USB		 ?? No Complete.

Implementation of this recommendation requires completion of the MMS-ITX replacement project.  This project is proceeding, but is not expected to be complete until 2008.
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 COMPLETE     Complete
5 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 COMPLETE     Complete
5 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 Complete     Complete
5 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     Complete
5 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     Complete
5 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     Complete
5 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     Complete
5 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 Almost Complete     Complete.
29 May 2007 - Process completed and in effect.
90% complete.  Process will be completed and in effect Q2 2007.
5 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 Complete
As indicated in the management response, the recommendation was considered, but no action is warranted.
    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 Complete

Review complete. Results are part of upcoming comprehensive corporate report on Overtime Review to be tabled at Coucil in January 07.
6 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 Complete

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 Comment with respect to Corporate Security overtime:   Corporate Security took over this function (security services for facilities used by Transit Services)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. 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 Complete

Reason for OT has been incorporated into activity sheets.
7 b) require that staff (OC Transpo facility) sign the daily Maintenance Activity Sheets and that any use of signature stamp be stopped. 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. 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

This recommendation has been carried out 		                                                 
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
8 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
8 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." Aug 07:  
Surface Operations portion completed

Paramedic Services - Overtime budgetting must clearly reflect/account for cost recovery activities and other special events (planned or unplanned) such as the US Presidential visit or a Blackout/Ice Storm event.

Transit Services - Additional refinement of the Overtime cost element in 2007 with the segregation of "Stat Holiday Worked" into its own cost element. This has provided more clarity to the Overtime expense.
    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.           May 31, 2007: The new corporate overtime policy states clearly that managers are responsible for managing overtime costs. This policy will be communicated and released in June 2007.

Adjustments to the overtime budgets were made in 2006 and included in the report to Council that accompanied the 2006 Branch-by-Branch Overtime Review conducted by Deloitte Consulting. This report was tabled at CSEDC on Feb 6, 2007. Adjustments were made in consultation with directors and were based on historical data. 		                                                 
    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 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.		 Management will establish clear protocols around the specific criteria for overtime. This will be part of the comprehensive review.     None That the CSEDC Cttee recommend Council approve the implementation of all of Deloitte Consulting's recommendations effective immediately, via Council's Audit Working Group; That the implementation of all the recommendations be complete by June 1, 2007. Complete. Aug 2007.

May 31, 2007: The new corporate overtime policy states clearly that managers are responsible for managing overtime costs. This policy will be communicated and released in June 2007.
Adjustments to the overtime budgets were made in 2006 and included in the report to Council that accompanied the 2006 Branch-by-Branch Overtime Review conducted by Deloitte Consulting. This report was tabled at CSEDC on Feb 6, 2007. Adjustments were made in consultation with directors and were based on historical data. 		                                                 
  All the recommendations from the Deloitte report will be implemented including the development and implementation of a corporate-wide and branch-specific overtime policies and procedures. 
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 That the CSEDC Cttee recommend Council approve the implementation of all of Deloitte Consulting's recommendations effective immediately, via Council's Audit Working Group; That the implementation of all the recommendations be complete by June 1, 2007. Aug 2007 - ongoing.

The 2006 Branch-by-Branch Overtime Review conducted by Deloitte Consulting was tabled at CSEDC on Feb 6, 2007. All the recommendations from this report will be implemented.
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 That the CSEDC Cttee recommend Council approve the implementation of all of Deloitte Consulting's recommendations effective immediately, via Council's Audit Working Group; That the implementation of all the recommendations be complete by June 1, 2007.  Complete.

May 31, 2007: Employee Services developed Corporate Overtime Policy that requires each Branch to develop complimentary procedures.  New Corporate Overtime Policy was presented to CAWG on April 17, 2007.
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 That the CSEDC Cttee recommend Council approve the implementation of all of Deloitte Consulting's recommendations effective immediately, via Council's Audit Working Group; That the implementation of all the recommendations be complete by June 1, 2007. Complete
Adjustments to the overtime budgets were made in 2006 and included in the report to Council that accompanied the 2006 Branch-by-Branch Overtime Review conducted by Deloitte Consulting. This report was tabled at CSEDC on Feb 6, 2007. Adjustments were made in consultation with directors and were based on historical data.

  2006 Deloitte Branch-by-Branch Overtime Review
  CITY WIDE              
1 Develop Overtime Policies.

The Employee Services branch should develop a corporate-wide overtime policy. This policy should identify the overall direction for City managers with regard to the acceptable use of overtime, the expectations for how City managers are to budget, manage and control for the use of overtime, and the requirements for reporting on the use of overtime in their branches and divisions.		  
The Employee Services branch has developed a draft corporate-wide policy and accompanying procedures regarding the City’s overall management of overtime. This document is scheduled to go to the Management Advisory Committee in March, 2007.

Q1 to the Management Advisory Committee		       Complete.

Draft policy went to the Management Advisory Committee in March. It now goes to EMC for approval.

Policy was approved by EMC. (May update)
2 Develop Overtime Procedures.
 
The Employee Services branch should develop corporate-wide overtime procedures. These procedures should include definitions of discretionary versus non-discretionary overtime, procedures for requesting and approving overtime, procedures for overtime recording/coding, and procedures for overtime tracking and reporting. Some branches may need to further develop branch-specific overtime procedures in order to address specific operational requirements.		  
The draft policy includes the requirement for branches to develop a branch-specific guideline/procedure/protocol to complement the corporate document. 

Q1 to Management Advisory Committee		  

$20,000		   Complete.
Aug 2007. Corporate Policy was approved by EMC in April and by CAWG July 25, 2007.

Draft policy went to the Management Advisory Committee in March.It now goes to EMC for approval.

Policy was approved by EMC. (May update)
3 Develop Overtime Base Budgets.

Appropriate overtime base budgets need to be established and implemented in order to more accurately account for and justify the overtime requirements of the branches.		   In response to the Council Motion No. 47/86 that, “the City Manager be delegated the authority to adjust overtime budgets within the total compensation envelope to reflect actual spending where necessary” adjustments have been made.  Adjustments have been made in consultation with directors and were based on historical trends and forecasted needs. 2008  
$70,000. This does not include subsystem costs which are to be determined. 		  Complete
4 Adjust Overtime Base Budgets. 

For fiscal year 2006, each branch should be granted a one time base budget adjustment to more accurately reflect actual overtime costs. After this one time adjustment, further changes should be made on a case-by-case basis.		   In response to the Council Motion No. 47/86 that, “the City Manager be delegated the authority to adjust overtime budgets within the total compensation envelope to reflect actual spending where necessary” adjustments have been made.  Adjustments have been made in consultation with directors and were based on historical trends and forecasted needs.         Complete
5 Track Overtime to Revenue Earned/Costs Recovered.

New cost codes should be established on timesheets and in SAP to more accurately track and link overtime directly to the revenue earned and/or the costs recovered. 		 
If the creation of cost codes is deemed to be feasible, it will be incumbent on operational departments to work with Finance to establish the nature and extent of the cost codes required to better understand the relationship between overtime and revenue/cost recovery for business planning and decision making.  The Payroll Division would then work with operations to incorporate this into the time entry process.


TBD

Will require the cooperation of all branches across the City.		     Complete.
Aug 2007 - Since Finance can provide this information, it is not considered to be cost-effective to automate this.
May 1, 2007 - Payroll Division has met with Financial Services and the Support Centre. The belief is that overtime costs are not materially offset with increases in revenue to the City and thus it is not efficient for the City to pursue an automated solution to this request, as it would be difficult to do. Finance has gone back to discuss  this with their clients and is to report back to Payroll Manager in May 2007.

E.S. has begun work with Finance and the SAP technical team to investigate whether cost codes can be established in SAP to link OT to revenue/cost recovery.
6 Define Service Levels.

Service level requirements for each branch should be more clearly defined to enable branch management to more accurately plan for and manage overtime costs that are incurred to achieve targeted service levels. 		 
Branch managers will determine the appropriate balance between maintaining service levels and overtime usage as part of the development of a branch-specific guideline/procedure/protocol. Branches will outline when important but non-mandated service activities will be approved for overtime (e.g. requests to attend meetings or events outside of regular working hours).
TBD at Management Advisory Committee 		      Complete
This has been included in the approved Corporate Overtime Policy. (May 2007)
7 Record/Code Overtime.

Common procedures for recording/coding of overtime should be implemented across all branches to ensure that overtime costs are being consistently tracked and reported. 		 
It was determined during the Review that for some branches, statutory holiday pay premiums were being incorrectly coded in the SAP system. As a result, overtime expenditures for 2005 were overstated by over $1 million. If statutory holiday overtime had been reported consistently and/or correctly across the branches then total overtime on statutory holidays would decrease approximately 55%, from $2.7 million to $1.2 million. This did not result in any employees being overpaid for working on a statutory holiday.

Q2		       Complete.

May 1, 2007 -  The changes have been completed in SAP and all corrections to 2007 cost elements will occur by May 2007.
8 Track Overtime Causes.

New cost codes should be established on timesheets and in SAP to track and report overtime causes. 		 
A project started in Q4 2006 with Payroll Division working with operational groups to develop a standard list of cost codes that will track and report overtime causes within SAP.

 Project started in Q4 2006
Stage 1 (for branches that input directly to SAP): Q3 

Stage 2 (where input is done via sub-systems); TBD		 This may be a significant project where subsystems are feeding SAP, as those systems will require enhancing if the requirement is to have all information housed within the SAP system.     Complete.
Aug 2007 - Paramedic and Fire Services have confirmed that they are unable to use codes to same extent as other groups due to unique operational procedures.

May 1, 2007 -  This project is nearing completion for all time recorded directly into SAP.  Anticipated roll -out date is June 1, 2007. There are two issues outstanding:
1. The subsystem that loads time worked for Bus Operators does not include overtime. All time worked is downloaded and SAP automatically determines the hours that are overtime. It would be impossible to identify the causes of overtime without significant system development both in the subsystem and in SAP.
2. The Paramedics have indicated that they cannot use some of the codes. Payrolls is meeting with them to better understand their issues and make recommendations on how to proceed.
  Trasit Services (TS)                
TS
1		 Reduce Absenteeism

 Transit Services should continue to focus on reducing absenteeism.		             Aug 2007 - ongoing

Application of the Corporate AMP is in effect.  Regular monitoring  and followup of employees with high absences  rates is ongoing within Transit Operations to identify culpables and/or patterns. Shifts are cancelled versus OT where service is not affected.
TS
2		 Improve Process to Fill Vacancies

Transit Services should continue to focus on improving its process for recruiting and filling vacancies for Bus Operators.		             Complete - Aug 2007

Transit services continues to work closely with Employee Services branch to refine and fine tune the Bus Operator recruitment, selection and hiring process . Hiring is limited to training capacity.
TS
3		 Review Target Service Levels on Overtime

Transit Services should review target service level of 99.5% against similar organizations so they can assess the appropriateness of this targeted service-level benchmark.		             August 2007 - In progress.

Target service levels have a direct impact on revenue potential and ridership. Work with Planning will be initiated identify execution failures which generate OT as opposed to service failure increases.
TS
4		 Review Collective Agreements

Transit Services should consider re-negotiating the collective agreements in regards to the use of overtime on weekends by senior staff. 		            Aug 2007 - Plans will begin for development of our 'package' in October 2007 for exchange with ATU 279 in December.

To be considered for the next round of negotiations in 2008. 
  Fleet Services (FS)                
FS
1		 Track Overtime to Costs Recovered

 In order to accurately reflect overtime expenditures, Fleet Services should track and report all overtime related cost-recoveries in conjunction with overtime costs.		             Complete.
20 August 2007 - The use of Overtime Codes in Transit Fleet Maintenance was implemented in June 2007.

Employee Services has begun work with Finance and the SAP technical team to investigate whether cost codes can be established in SAP to link overtime to revenue/cost recovery. Awaiting the outcome of those discussions.
FS
2		  Reduce Absenteeism

Fleet Services should continue to focus on reducing absenteeism.		             August 2007 - no additional comments.

• Implemented the City's Attendance Improvement Program (AIP).  2005 absenteeism at 12.2 days / employee.
• Implemented a new recruitment and hiring process to start recruiting in February in order to have the new mechanics trained to replace senior mechanics for summer vacation and to be ready to work on the additional buses that go into service in the autumn.
• Developed work procedures that include a safety component and kick-off meetings are held at the beginning of each shift where staff is reminded of safety in the workplace.
FS 3 Develop Overtime Policies and Procedures

 Fleet Services should develop and document overtime policies and procedures.  Employees should be properly trained on the use of these policies and procedures and managers and supervisors should ensure compliance with these policies and procedures.		             August 2007 - no additional comments.

• Provided Managers and Supervisor with increased accountability to plan and pirioritize overtime to cover only essential work.
• Established overtime reduction target of $200,000.  Will work to reduce in-house Warranty work.
- The Branch will work on developing policy/procedures to complement the Corporate Overtime Policy that will be reviewed by CAWG on June 19th.  Once the Corporate Policy is approved the Branch will finalize its work on the complementary document.
FS 4  Restructure Shift Schedules

 Fleet Services should continue to review and change shift schedules, as necessary, in order to keep more buses on the road and improve service levels.		             20 August 2007 - As the opportunity arises, staff are being redeployed from day shifts where productivity improvements can be made.

• Implementing new Fleet Information Management System to be complete by end of 2007.  The ability to plan, schedule and measure performance will be greatly improved.  The system will lead to a better level of preventative maintenance and a decrease in unplanned work.
• Conducting optimization studies, resulting in fewer defects and increased distance between failures.
  Surface Operations (SOP)                
SOP
1		 Reduce Absenteeism

Surface Operations should continue to monitor and reduce absenteeism in the branch.		             August 2007 - Ongoing

The Branch monitors absenteeism through the Attendance Management Program which has been implemented and is on-goin.g
SOP
2		 Improve Process to Fill Vacancies

Surface Operations should continue to reduce the number of vacant positions within the branch.		             Complete.
August 2007

• Continuing to fill vacancies.
• Complementing workforce with contracted services.
• Working to address scheduling, but still struggling with issues related to Collective Agreement restrictions.
• Working with the Union to implement alternate schedules with a goal to decrease overtime while maintaining 24 / 7 operations.
SOP
3		 Improve Overtime Tracking

Surface Operations should continue to ensure that more detailed overtime tracking capabilities are developed.		             Complete.
August 2007

• Implementing strategic project to improve efficiencies by having detailed reporting available on a weekly basis.
• Increasing accountabilities for planning and forecasting to the front-line.
• Implementing GPS technology for the deployment of equipment.
SOP
4		 Develop Overtime Policies and Procedures

 Surface Operations should develop and document overtime policies and procedures.  Employees should be properly trained on the use of these policies and procedures and managers and supervisors should ensure compliance with these policies and procedures.		             Complete.
August 2007

• Developing an overtime policy and procedures.
• $200,000 reduction target in 2007 for Branch
• Awaiting recommendations of audit of summer operations (roads, parks, forestry and sports field maintenance)
  Utility Services (US)                
USB
1		 Track Overtime to Costs Recovered

To accurately reflect overtime expenditures, Utility Services should track and report all overtime related cost-recoveries in conjunction with associated overtime costs.		             Complete.
Aug 20, 2007
The Branch FSU receives the information from the MMS/ITX systems and this information is used to process secondary recoveries from the various capital projects. 

Employee Services has begun work with Finance and the SAP technical team to investigate whether cost codes can be established in SAP to link overtime to revenue/cost recovery. Awaiting the outcome of those discussions.
  Ottawa Paramedic Services (OPS)                
OPS
1		 Review Staffing Needs

Paramedic Services should fully assess its appropriate staffing needs in order to meet call volumes and should receive budgetary approvals to meet these needs. 		    Q2-2007       August 2007 - Report to Committee in September 2007 to match staffing requirements with call volume and response time.

The Ottawa Paramedic Service monitors its staffing needs.  Currently, our report to Committee and Council will delineate the Service's staffing requirements for the near term. Report to Committee in May 2007.
OPS
2		 Reduce Absenteeism

 Paramedic Services should continue to monitor and reduce absenteeism in the branch. 		    Q2-2007 The new AMP program will need to be tested to forecast results.  Optimistically, the Ottawa Paramedic Service hopes to see a more robust program to support staff in their desire to attend work.     August 2007 - We have implemented the new Attendance Management Program (AMP).

The Ottawa Paramedic Service monitors absenteeism on an ongoing basis.  Weekly reports through Telstaff, our staffing and rostering application gathers the information.   Weekly, a report is generated on all absenteeism.   Also, the Ottawa Paramedic Service has followed all Attendance Improvement Program (AIP) and applied the rules therein.  We await the implementation of the new Attendance Management Program (AMP).
OPS
3		 Track Overtime to Costs Recovered

To accurately reflect their overtime expenditures, Paramedic Services should track and report all overtime related cost-recoveries in conjunction with the associated overtime costs.		   COMPLETED   No cost   Complete
Telestaff, the Ottawa Paramedic Service staffing and rostering application gathers overtime information.  Cost recovery overtime is appropriately recorded and tracked.
  Real Property Asset Management (RPAM)                
RPAM 1 Track Overtime to Costs Recovered

 To accurately reflect overtime expenditures, RPAM should track and report all overtime related cost-recoveries in conjunction with the associated overtime costs.		             Complete
  Traffic and Parking Operations (TPO)                
TPO
1		 Track Overtime to Costs Recovered

In order to accurately reflect overtime expenditures, Traffic and Parking Operations should track and report all overtime related cost-recoveries in conjunction with the associated overtime costs. 		            Aug 2007 -For its largest overtime-generating division (Traffic Operations), TPO has developed mechanisms that allow for reporting how much overtime is cost recovered.  With regards to the remainder of the branch, opportunities are being explored to facilitate and enhance the tracking of recoverable staff time.

Employee Services has begun work with Finance and the SAP technical team to investigate whether cost codes can be established in SAP to link overtime to revenue/cost recovery. Awaiting the outcome of those discussions.
TPO
2		 Reduce Absenteeism

Traffic and Parking Operations should continue to monitor and reduce absenteeism in the branch.		             August 2007 - No additional comments.

Work has begun with Employee Services to look at tracking absenteeism at the branch and division level with a view to undertaking specific actions to address it.
TPO
3		 Develop Overtime Policies and Procedures

Traffic and Parking Operations should develop and document overtime policies and procedures.  Employees should be properly trained on the use of these policies and procedures and managers and supervisors should ensure compliance with these policies and procedures. 		            August 2007 - No additional comments.

•The Branch will work on developing overtime policy/procedures that will complement the Corporate Overtime Policy that is being reviewed by CAWG on June 19th.  Once the Corporate Policy is approved, the Branch will finalize its work on the complementary document.
  Infrastructure Services (IS)                
IS
1		 Track Overtime to Costs Recovered

To accurately reflect overtime expenditures, Infrastructure Services should track and report all overtime related cost-recoveries in conjunction with associated overtime costs. 		            Complete.
August 2007 - Also in 2005 ISB implemented a Time Reporting System (TRS) that allows for cost recovery against capital accounts for overtime. 

Employee Services has begun work with Finance and the SAP technical team to investigate whether cost codes can be established in SAP to link overtime to revenue/cost recovery. Awaiting the outcome of those discussions.
IS
2		 Develop Overtime Policies and Procedures

Infrastructure Services should develop and document overtime policies and procedures.  Employees should be properly trained on the use of these policies and procedures and managers and supervisors should ensure compliance with the policies and procedures.		             August 2007 - No additional comments.

• The Branch is working on and developing an Overtime Procedures document that will complement the Corporate Overtime Policy that is being reviewed by CAWG on June 19th.  Once the Corporate Policy is approved, the Branch will finalize its work on the complementary document.
  Fire Services (FS)                
FS
1		 Reduce Absenteeism

Fire Services should continue to monitor and reduce absenteeism in the branch.		             August 2007 - Subsequent absenteeism has been reduced from 15.88 days/year at the time the Fire Services Attendance Improvement Program Pilot Project was introduced in 2004 to 10.57 days/year for the OPFFA for 2006.

Management has already implemented a very aggressive approach with its Attendance Management Program. An Attendance Improvement Program Managers' position was filled on a permanent basis as of March 2006. Subsequent absenteeism has been reduced from 15.88 days/year to 10.68 days/year since the Fire Services' Attendance Improvement Program was implemented as a Pilot Project in 2004.
FS
2		 Track Overtime to Costs Recovered

To accurately reflect the overtime expenditures, Fire Services should track and report all overtime related cost-recoveries in conjunction with the associated overtime costs.		             August 2007 - ongoing

Since the completion of this Audit, Fire Services in conjuction with the Financial Services Unit have been tracking and reporting monthly on overtime expenditures by cost centre. In, addition Fire Services continues to diligently recover eligible overtime expenditures such as highway incidents or private special events.