The inspector general's 2012 report shows the city saved $9.2 million through the elimination of 44 employees, but spent $1.6 billion on payroll costs for all city departments.
According to the report, investigations since 2008 have led to the termination or resignation of a total of 166 municipal employees and the arrest or indictment of 44 individuals.
"The investment of Philadelphia tax dollars into good government practices has paid off many times over," said Inspector General Amy Kurland in a statement.
City Controller Alan Butkovitz blasted the city's departments for a lack of fiscal oversight.
Butkovitz cited the report's findings that several departments did not provide proper oversight of the payroll. He said 66 percent of the departments did not double check employee's work hours.
“This lack of review could allow for errors to occur and may result in employees being underpaid or overpaid,” Butkovitz said in a statement.