This audit report recommends the following actions to strengthen controls and oversight of transit revenue processes:

1. Reconciliation of Bus Fare Transactions Between the PDS Subsystem and Central System Needs to be Enhanced
1. Transit uses the TASEAR report to reconcile ridership and fare revenue between the PRESTO Device Software (PDS) subsystem and Metrolinx’s Central System to ensure all fare transactions are captured for reporting and settlement.
2. A review of the 2024 reconciliations found that:
1. The TASEAR report excludes open payment and mobile wallet transactions, which have grown from 9% in Q1 2024 to over 45% in Q2 2025. As a result, Transit cannot reconcile a significant and increasing portion of fare payments between PDS and the Central System.


2. Process for Monitoring and Analyzing Fare Evasion Needs to be Strengthened
1. Bus operators are expected to record when riders do not pay the required fare, and this information is reflected in a monthly farebox report. To manage fare evasion effectively, farebox data should be analyzed and evasion activity should be independently observed to identify trends and high-risk routes.
2. To better understand fare evasion monitoring, Internal Audit rode City buses throughout October to observe instances of non-payment and noted:
1. 17 ride-along trips across 20 routes (1,073 boardings) identified a 2.1% fare evasion rate, compared to the 0.5% rate reflected in the farebox report, with 7 routes ranging from 3%–8%.
2. Transit conducts no formal trend analysis or independent observation of evasion activity and this lack of data may result in the true financial impact of evasion being underestimated.


3. Monthly Revenue Reconciliation Process Needs to be Strengthened
1. PRESTO transactions from bus devices and the website are processed through Metrolinx’s Central System and reported in the Daily Settlement Report (DSR). Transit reconciles DSR revenue to bank deposits and prepares a journal entry to ensure revenue is received and recorded in the correct period by service date.
2. A review of monthly reconciliations and journal entries found:
1. Transactions dated May 1–2 and June 2 were recorded twice, resulting in bank G/L overstatements of $770,048.55 and $475,398.36.
2. June 30 revenue ($284,154.28) was recorded to the wrong period, shifting it from June to July.
3. The errors were not identified through the monthly reconciliation process and impacted 12 G/L accounts.


4. Process for Cash Probing and Reconciliation Variances Need to be Improved
1. Fareboxes on each bus record and secure cash fares. At the transit facilities, staff probe fareboxes, dual-count cash, perform reconciliations and prepare deposits.
2. A review of the cash-handling process found that:
1. Probing was not completed consistently: there were inconsistencies in the probing frequency at the bus and facility level, and the SOP does not define required probing frequency.
2. Cash variances were not investigated consistently: 7 samples showed ±4% variances for three or more consecutive days with no documentation, and 9 single-day variances exceeded 10%, but only one case was investigated. Management has not defined what constitutes a “significant” variance.


5. Advertising Revenue Statements Need to Include Bus Level Traceability
1. A third-party vendor manages advertising on Brampton Transit buses and remits revenue to the City. The agreement requires the vendor to provide quarterly reports showing gross revenue, allowable commissions, net revenue, and an inventory of transit vehicles and advertising space used.
2. A review of the vendor’s 2024 quarterly reports found that:
1. Gross revenue, commissions, net revenue, and payments to the City aligned with contract terms. However, the reports did not include the required inventory of buses used for advertising or the advertising spaces available to the City, limiting Transit’s ability to verify the completeness of reported advertising revenue.


6. System Access Management for A2G and PRESTO Needs Improvement
1. A2G is the City’s payment platform used by Transit terminal and depot staff to process farecard transactions. The PRESTO Web Portal is an external system administered by Metrolinx, which provides reporting and transaction data for farecard activity.
2. A review of A2G user access found:
1. Access was not removed for staff who transferred internally: three General Service Persons still had A2G access after moving from transit terminal roles to maintenance roles in 2023 and 2024.
3. A review of PRESTO Web Portal user access found:
1. Access was not removed for staff who left the City: two former employees who left the City in June 2025, still had access in October 2025.
2. One of these former employees successfully logged into the PRESTO portal on October 25, 2025, despite no longer being an employee.