2008 ANNUAL REPORT March 11, 2009 CHICAGO TRANSIT AUTHORITY OFFICE OF INSPECTOR GENERAL OFFICE OF INSPECTOR GENERAL 2008 Annual Report Presentation SLIDE: OIG Mission Statement The mission of the Office of Inspector General is to promote and ensure economy, efficiency, effectiveness, and integrity in the administration of the programs and operations of the CTA. SECTION TITLE: Audit Highlights SLIDE: Peer Review Conducted September 2008 • Performed by American Public Transportation Association using three transit professionals (LA, DC and Atlanta) • Tested for compliance with the Government Auditing Standards • OIG received the highest possible rating—was found to be in full compliance with the standards • Certain aspects found to be industry “best practices” • Link to APTA’s report on CTA website SLIDE: Audits and Reviews Performed • 13 Audits Completed • 15 Audits Opened • Areas reviewed included: Brown Line, Legacy Payroll Conversion, Express Vending Machines, Bus and Rail Car Cleanliness, Customer Parking Facilities, Fuel Purchase and Distribution Controls, and Controls Related to the Purchase of Electric Service SLIDE: Audits/Initiatives 2000-2008 CHART: 2000-2008 Audit Comparison 2000: 13 opened, 3 closed 2001: 15 opened, 7 closed 2002: 17 opened, 15 closed 2003: 12 opened, 21 closed 2004: 17 opened, 10 closed 2005: 11 opened, 18 closed 2006: 15 opened, 19 closed 2007: 8 opened, 8 closed 2008: 15 opened, 13 closed SECTION TITLE: Investigation Highlights SLIDE: Fare Media Theft by Vendor • CTA fare media vendor defaulted on payments to CTA for fare cards • CTA halted distribution of new cards to vendor • Vendor created three fictitious business identities which were approved as distributors of fare media • Vendor received additional fare media and defaulted on payments totaling over $200,000 • Vendor arrested and charged with felonies—case pending • CTA seeking monetary recovery SLIDE: Investigations 2000-2008 Chart: 2000-2008 Open/Closed Investigations Comparison 2000: 58 opened, 21 closed 2001: 69 opened, 78 closed 2002: 74 opened, 56 closed 2003: 122 opened, 499 closed 2004: 175 opened, 367 closed 2005: 313 opened, 183 closed 2006: 334 opened, 113 closed 2007: 401 opened, 232 closed 2008: 475 opened, 335 closed SLIDE/CHART: Administrative Actions January 1– December 31, 2008 37 Employee Discharges 5 Employee Suspensions 23 Employee Retirements/Resignations 24 Employee Reprimands/Warnings 3 Contractor Debarments 92 Totals SECTION TITLE: Statistics SLIDE/CHART: Hotline Contacts-2006-2008 Email 2006 404, 2007 426, 2008 85 Telephone 2006 270, 2007 353, 2008 360 Online 2008 147 Total Contacts 2006 950, 2007 1144, 2008 592 SLIDE/CHART: 2008 Contacts Cases Opened 475 Online Survey 147 Customer Commendations 7 Referrals to Management 145 Cases Declined 9 Request for Information 18 Hotline Calls 360 SLIDE/CHART: Hotline-Nature of Allegations Assist Law Enforcement 22 Assist CTA Department 40 Bribery/Kickbacks/Bid Rigging 2 Conflict of Interest 2 Criminal Record 14 DBE Violations 2 Drug Violations 3 Falsifying Documents 4 Fare Card Related 12 FMLA/Time Abuse 123 Harrassment 5 Misuse of CTA Resources 2 Mismanagement 5 Procedural 17 Official Misconduct 2 Residency 2 Secondary Employment 74 Theft 15 Fraud 4 Other 161 Customer Service 631 SLIDE/CHART: Source of Referrals Manager 258 Employee 35 Law Enforcement 55 OIG Initiative 56 Anonymous 27 Contractor 1 Customer 19 Other 34 SLIDE: Other Significant Accomplishments • Implemented AutoAudit—an interactive real-time database for OIG staff and CTA Management • Improved communications with the Chicago Police Department regarding arrested employees and contractors • Designed and implemented an electronic hotline survey form • Developed and published a brochure for CTA employees on how to respond to OIG findings SLIDE: Look Ahead for 2009 • Completion of Risk Assessment/Process Mapping by Crowe Horwath—a joint project with the Comptroller’s Office • Augment audit services through use of IT specialist as recommended by the APTA Peer Review Team • Enhancement of audit QA processes • Additional staff professional certifications SLIDE: Contact Information Phone (773) 282-8463 E-Mail hotline@ctaoig.net U.S. Mail P.O. Box 641075 Chicago, IL 60664-1075 Fax (312) 681-3797