The city of Toronto was defrauded of $939,000 in 2011, auditor-general Jeff Griffiths said in his annual report – and the city has only recovered about $60,000.

He estimates the city received about 1,700 complaints to its fraud and waste hotline.

Griffiths noted that 822 calls were made to the line – a 44 per cent increase over 2010 – but many of those callers reported two or more incidents of fraud.

Of those complaints, 53 were substantiated – and that number is expected to increase as the city continues to investigate incidents from 2011.

Among them:

• A city employee received payments for false benefit claims. York Regional Police are now investigating.
• A city employee was found to be working a second job outside the city, during his regular city work hours. He was allowed to resign.
• A city employee was abusing sick leave for the purpose of working at a second job. This represented 28 hours for a total of $970. The employee was fired.

The hotline was brought in in 2002, and has since been implemented in other cities, including Calgary, Edmonton, Montreal, Ottawa, and Windsor.

Griffiths’ report will be considered at an audit committee meeting on Feb. 29.