Building Investment, Finance and Audit Committee (BIFAC) Meeting - November 16, 2015

Public Agenda

Consent Public Agenda Items

The Consent Public Agenda items listed on the Consent Public Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting. The Committee Chair will ask for approval of the following Consent Public Agenda items. Committee members must indicate if they wish to request to discuss the item, question the item or register a vote against the item. If an item is removed from the Consent Public Agenda, it will be discussed at the end of the meeting.

1. Approval of Public Meeting Agenda

Action: Resolution to approve the agenda

Pre-read: Agenda

2. Confirmation of Public Meeting Minutes:

• September 24, 2015    

Action: Resolution to confirm the public minutes

Pre-read: Minutes

3. Business Arising from the Minutes and Committee Action Items Update

Action: Resolution to receive for information

Pre-read: Action Item List

Building State of Repair and Environmental Sustainability:

4. Stand-Alone Properties: Sales and Relocation Update

Action: Resolution to receive for information  

Pre-read: BIFAC:2015-132

Internal Audit, Accounting Systems and Internal Controls:

5. Review of Board, President and CEO and Senior Management Expenses – Q2 2015

Action: Resolution to receive for information

Pre-read: BIFAC:2015-133

Public Meeting Agenda

6. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

7. Chair’s Report and Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

Internal Audit, Accounting Systems and Internal Controls:

8. Chief Internal Auditor: Q3 2015 Internal Audit 2015 Work Plan Status Update

Action: Information

Pre-read: BIFAC:2015-134

Presenter: Chief Internal Auditor

9. Internal Audit: Report on Complaints Received Jan 1 – August 30, 2015 (semi-annual reporting)

Action: Information

Pre-read: Verbal Report

Presenter: Chief Internal Auditor

10. Internal Audit: 2016 Budget

Action: Committee and Board Approval

Pre-read: BIFAC:2015-135

Presenter: Chief Internal Auditor

11. Internal Audit: 2016 Work Plan

Action: Committee and Board Approval

Pre-read: BIFAC:2015-136

Presenter: Chief Internal Auditor

12. Rent-Geared-to-Income Calculation Review 2015

Action: Information

Pre-read: BIFAC:2015-137

Presenter: Chief Internal Auditor

13. 2015 Follow Up on Previous Internal Audit Recommendations

Action: Information

Pre-read: BIFAC:2015-138

Presenter: Chief Internal Auditor

Commissioner of Housing Equity:

14. OCHE – Quarterly Performance Report (Q3 2015)

Action: Information

Pre-read: BIFAC:2015-140

Presenter: Commissioner of Housing Equity

15. Review of OCHE Terms of Reference

Action: Committee and Board Approval

Pre-read: Report to follow

Presenter: Working Group

16. OCHE- 2016 Work Plan

Action: Committee and Board Approval

Pre-read: BIFAC:2015-142

Presenter: Commissioner of Housing Equity

Capital Projects, Real Property and Building Revitalization:

17. ReSet Capital Renewal and Community Transformation Strategy Update

Action: Information

Pre-read: Verbal Report

Presenter: Vice President, Facilities Management

Reports from Management:

18. Accessibility in the Built Environment Policy

Action: Committee and Board Approval

Pre-read: BIFAC:2015-143

Presenter: Vice President, Facilities Management

TERMINATION

Consent Closed Agenda Items

The Consent Closed Agenda items listed on the Consent Closed Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting. The Committee Chair will ask for approval of the following Consent Closed Agenda items. Committee members must indicate if they wish to request to discuss the item, question the item or register a vote against the item. If an item is removed from the Consent Closed Agenda, it will be discussed at the end of the meeting.

A. Approval of Closed Meeting Agenda

Recommendation: Resolution to approve the agenda 

Pre-read: Agenda

B. Confirmation of Closed BIFAC Meeting Minutes:

• September 24, 2015    

Recommendation: Resolution to confirm the closed minutes

Pre-read: Minutes

C. Receipt of Closed Investment Advisory Committee Minutes:

• July 17, 2015    

Recommendation: Resolution to receive for information

Pre-read: Minutes

D. Business Arising from the Minutes and Committee Action Items Update

Recommendation: Resolution to receive for information

Pre-read: Action Item List

Financial Compliance:

E. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-146

F. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-147

G. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-148

Capital Projects, Real Property and Building Revitalization:

H. Confidential report respecting matters involving the security of the property of the Corporation

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-149

I. Confidential reports respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-96, BIFAC:C2015-123, BIFAC:C2015-124, BIFAC:C2015-125, BIFAC:C2015-126, BIFAC:C2015-127, BIFAC:C2015-128, BIFAC:C2015-129, BIFAC:C2015-130, BIFAC:C2015-131

Closed Meeting Agenda

J. Chair’s Poll re:  Conflict of Interest

Action: Declaration

Pre-read: Agenda Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

K. Chair’s Report and Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

Capital Funds and Investments:

L. This report deals with matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed

From the September 25th IAC meeting

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-150

Presenter: IAC Chair

Capital Projects, Real Property and Building Revitalization:

M. Confidential reports respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to matters about a proposed or pending transaction with a third party

Action: Committee Approval

Pre-read: BIFAC:C2015-151, BIFAC-C2015-159, BIFAC-C2015-160, BIFAC-C2015-161, BIFAC-C2015-162, BIFAC-C2015-163, BIFAC-C2015-164

Presenter: Vice President, Facilities Management

N. Confidential item from the Chief Development Officer

Action: Information

Pre-read: Verbal Report

Presenter: Chief Development Officer

O. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including, but not limited to, personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Committee Approval

Pre-read: BIFAC:C2015-152

Presenter: Development Director

P. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including, but not limited to, personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-153

Presenter: Development Director

Budget, Financial Reporting and Financial Statements:

Q. Confidential report respecting matters of proposed policy or processes

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-155

Presenter: Chief Financial Officer and Treasurer

R. Confidential report respecting matters that are or may be the subject of litigation or potential litigation, including matters before administrative tribunals, affecting the Corporation; and legal advice that is subject to solicitor-client privilege including communications necessary for that purpose

Action: Information  

Pre-read: BIFAC:C2015-156

Presenter: Chief Financial Officer and Treasurer

Commissioner of Housing Equity:

S. Confidential report respecting personal matters about an identifiable individual, including an employee

Action: Information

Pre-read: BIFAC:C2015-157

Presenter: Commissioner of Housing Equity

Management Reports:

T. Confidential report respecting matters:

1. involving the security of the property of the Corporation; and
2. that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes    

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-158

Presenter: President and Chief  Executive Officer (Interim)

TERMINATION

Public Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on November 16, 2015 in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 9:03 a.m.

Committee Directors Present:

Councillor Frank Di Giorgio, Chair

Councillor Ana Bailão

Catherine Wilkinson

Committee Directors Absent:

Karen Newman, Vice Chair

Other Directors in Attendance:

Norman (Bud) Purves 

Also Present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Valesa Faria, Senior Manager, Commercial Business Unit

Jason Gorel, Chief Financial Officer and Treasurer

Ismail Ibrahim, Interim General Counsel and Corporate Secretary

Graham Leah, Vice President, Asset Management

Sheila Penny, Vice President, Facilities Management

Trevor Shaw, Sr. Advisor to Commissioner of Housing Equity

Greg Spearn, Interim President and Chief Executive Officer/ Chief Development Officer

Cynthia Summers, Commissioner of Housing Equity

Michael Vear, Chief Internal Auditor

A quorum being present, the Chair called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

Item 1 - Approval of the Consent Public Agenda Items & Public Agenda

The Consent Public Agenda is comprised of the following items:

1. Approval of Public Meeting Agenda;
2. Confirmation of the September 24, 2015 Public Meeting Minutes; 
3. Business Arising from the Minutes and Committee Action Items Update; 
4. Stand-Alone Properties: Sales and Relocation Update; and
5. Review of Board, President and CEO and Senior Management Expenses – Q2 2015.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously amended the agenda order to address Public Agenda 18 “Accessibility in the Built Environment Policy” as the first item for discussion and approved the following items that were not held for discussion:

• Consent Public Agenda Item 1: “Approval of Public Meeting Agenda;”
• Consent Public Agenda Item 2: “Confirmation of the September 24, 2015 BIFAC Public Meeting Minutes;”
• Consent Public Agenda Item 3: “Business Arising from the Minutes and Committee Action Items Update;”
• Consent Public Agenda Item 5: “Review of Board, President and CEO and Senior Management Expenses – Q2 2015;” 
• Public Agenda Item 9: “Internal Audit: Report on Complaints Received January 1 – August 30, 2015 (semi-annual reporting);” 
• Public Agenda Item 14: “OCHE – Quarterly Performance Report (Q3 2015);”
• Public Agenda Item 15: “Review of OCHE Terms of Reference;” and
• Public Agenda Item 16: “OCHE – 2016 Work Plan.” 

The Public Agenda Items 4, 6-8, 10-13, 17 and 18 were held for discussion.

Item 2 - Confirmation of Public Meeting Minutes

The BIFAC had before it the draft minutes from the September 24, 2015 public meeting.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously confirmed the September 24, 2015 public minutes. 

Item 3 - Business Arising from the Minutes and Committee Action Items Update

The BIFAC had before it the above captioned report.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously received the report for information. 

Item 5 - Review of Board, President and CEO and Senior 

The BIFAC had before it the above-captioned report (BIFAC:2015-133) from the Chief Internal Auditor.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously received the report for information.

Item 6 - Declaration of Conflict of Interest

The Chair requested members of BIFAC to indicate any agenda item in which they had a conflict of interest, together with the nature of the interest.  None were declared.

Deputations

The RSC Chair polled for any deputations to be heard at the meeting and explained the deputation process. The Chair noted that there was one written deputation received prior to the meeting and one verbal deputation was received at the meeting with respect to Public Item 18 “Accessibility in the Built Environment Policy.” 

Item 18 - Accessibility in the Built Environment Policy, BIFAC:2015-143

The BIFAC had before it the above-captioned report (BIFAC:2015-143) from the Interim President and Chief Executive Officer.

Ms. Cathy Birch, Chair of the Responsible Personal Accessibility in Toronto Housing (“R-Path”) Committee, provided a written deputation prior to the meeting and made a verbal deputation at the meeting on this matter. R-Path booklets were distributed as handouts at the meeting.

R-Path has been working jointly with TCHC and has brought a significant contribution to the development of Accessibility in the Built Environment  Policy (“Policy”) and  the Building Standards for Accessibility (“Standards”).

Management confirmed that the Policy and Standards meet the  requirements as set by the provincial government in the Accessibility for Ontarians with Disabilities Act (“AODA”). The BIFAC and Management discussed the communication plan  to residents, including posting on TCHC’s external website the Policy and Standards once approved and posters in different languages within TCHC buildings.

In response to questions raised from BIFAC, Management explained that the Accessibility in the Built Environment Procedure has been drafted. It will be finalized in collaboration with R-Path and will be brought to the Executive Leadership Team in 2016 for approval.

Action item:

The BIFAC requested Management to report back to the Committee with respect to:

• Modifying existing units for compliance with the  Standards.
• Timelines to achieve full implementation of the Standards by 2025 (as part of the 10 Year Financial Plan). 

Carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously adopted the report and resolved to:

1. Adopt the Accessibility in the Built Environment Policy (“the Policy”) appended to this report (Attachment 1) and forward it to the Board of Directors for approval. 
2. Accept for information the Building Standards for Accessibility (“the Standards”) appended to this report (Attachment 2) and forward to the Board of Directors for information.

Item 4 - Stand-alone Properties: Sales and Relocation Update, BIFAC:2015-132

The BIFAC had before it the above-captioned report (BIFAC:2015-132) from the Interim President and Chief Executive Officer.

The BIFAC enquired with respect to the status of the 15 properties (multi-unit dwellings) that are subject to regulatory restrictions. Management explained that 7 out of 15 are vacant properties and 8 are occupied. While efforts are continuing to resolve the regulatory issues, the 7 vacant houses are subject to repairs to be rented at full market rates as an interim measure, which will prevent their further deterioration. A business case on this matter was provided in 2014 to the former Building and Investment Committee (BIC). There has been progress in resolving this matter with the City of Toronto, but TCHC needs further assistance.

Action item:

Management will report back to the BIFAC on the status of the 15 properties subject to regulatory restrictions.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously resolved to:

1. Receive the body of this report for information purposes and forward to the Board of Directors for their information; 
2. Approve the request to provide market households with the option to purchase the homes that they currently occupy in accordance with the process outlined in Appendix ‘I’ attached; and
3. Authorize the President and Chief Executive Officer (Interim) or designate to negotiate and settle additional and customary terms, execute all documents and to do all things necessary to implement and complete the above.

Item 7 - Chair's Report and Remarks (Verbal)

No comments or remarks from the Chair.

Item 8 - Internal Audit: 2015 Work Plan Update, BIFAC:2015-134

The BIFAC had before it the above-captioned report (BIFAC:2015-134) from the Chief Internal Auditor.   

The BIFAC discussed with the Chief Internal Auditor the challenges he encountered in 2015 to address the items in the work plan.  The Chief Internal Auditor noted that the 5 items that have been deferred to the 2016 work plan are due to staff shortages and additional resources required to complete the RGI calculations review and the review of contract managed buildings which is currently in process.

The BIFAC noted its role to support the work of the Internal Audit Department and requested the Chief Internal Auditor to present future challenges to the BIFAC for its assistance with better project prioritization.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously received the report for information.

Item 9 - Internal Audit: Report on Complaints Received January 1 – August 30, 2015 (Semi-Annual Reporting) (Verbal)

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC did not hold this item for discussion.

Item 10 - Internal Audit: 2016 Budget, BIFAC:2015-135

The BIFAC had before it the above-captioned report (BIFAC:2015-135) from the Chief Internal Auditor.  

The BIFAC requested further information on the internal audit software program noted in the report.  In 2015, the Internal Audit Department made a strategic decision to purchase an internal audit software program that will enable increased audit efficiencies and increased quality control standards. 

The BIFAC noted that the forecasted amount for Other Expenses was $43,075 higher than the amount budgeted for 2015 and asked whether the software funding was part of the Internal Audit budget versus the IT budget. The Chief Internal Auditor explained that the software funding was shared between the Internal Audit and IT budgets. While the costs for software itself were provided by the Internal Audit budget, the annual licensing fee for its usage was provided by the IT budget.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously approved the 2016 Internal Audit Department budget and resolved to forward the report to the Board of Directors for approval.

Item 11 - Internal Audit 2016 Work Plans, BIFAC:2015-136

The BIFAC had before it the above-captioned report (BIFAC:2015-136) from the Chief Internal Auditor.

In order for the BIFAC to assist the Internal Audit Department with facilitating the achievement of the 2016 Work Plan items, the BIFAC requested the Chief Internal Auditor that going forward, written reports be presented to the Committee instead of verbal updates on any issues, challenges or delays encountered with the Work Plan items.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously approved the 2016 Internal Audit Work Plan and resolved to forward the report to the Board of Directors for approval.

Item 12 - Internal Audit Report: Rent Geared to Income Calculation Review 2015, BIFAC:2015-137

The BIFAC had before it the above-captioned report (BIFAC:2015-137) from the Chief Internal Auditor.  

A discussion ensued, including the following main points:

• Internal Audit Report:
  • One of the  report’s findings (page 4) was that 48% (36 out of 75) of the sampled files were in compliance with the documentation requirements set out in the  RGI Manual  and the remaining 52% had documentation deficiencies. The Chief Internal Auditor noted the cause of the deficiencies may be due to a lack of system and resources to facilitate proper records management practices, and/or lack of or improper documentation provided by tenants.
  • During the course of the review, the Internal Audit Department developed an RGI calculation review tool (page 3 of the cover report) that was provided to the Asset Management Division and the Office of the Commissioner of Housing Equity to use in their RGI calculation review program. 

Action item:

The BIFAC requested Management to report back with detailed information with respect to the newly developed RGI calculation review tool, including effective calculation review and improvements to the process.

• Management’s update on the approved process regarding  RGI calculation review:
  • October 19, 2015, 13 newly hired Administrative Audit Assistants commenced the RGI calculation review process in each of TCHC’s operating units.
  • A training session on RGI calculation review has been offered by the City of Toronto that will end on November 23, 2015.
  • TCHC has been reviewing the RGI calculations for 2015 and 2014. The review process is expected to end in 2016.
  • There have been ongoing discussions between Management and other levels of government (provincial and federal) with respect to improving the RGI calculation review.  For example, discussions are taking place with OD/ODSP and Management to develop a Memorandum of Understanding (MOU) for sharing information and simplifying receipt of housing allowance.
  • Management has been working with the Canada Revenue Agency (CRA) to move towards an automated data transfer system. 

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information.

Item 13 - Status Update on Audit Recommendations from Internal Audit Reports, BIFAC:2015-138

The BIFAC had before it the above-captioned report (BIFAC:2015-138) from the Chief Internal Auditor.  

A discussion ensued with respect to the following:

• Timelines to complete the implementation of all the recommendations made by the Internal Audit LDepartment:
  • In response to queries raised by the BIFAC, the Chief Internal Auditor explained that some audit matters required more time to complete. 
  • 22 recommendations out of 25 in total made by the Internal Audit Department have been implemented. Three recommendations are still outstanding as follows:
    • Two recommendations [nos. (5) and (6)] regarding cell phone usage compliance audit; and 
    • One recommendation [no. (6)] regarding the review of TCHC payroll processing. The Chief Internal Auditor noted this review impacted 3 employees.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Mr. Purves and carried, the BIFAC unanimously received the report for information.

Item 14 - OCHE – Quarterly Performance Report (Q3 2015), BIFAC:2015-140

The BIFAC had before it the above-captioned report (BIFAC:2015-140) from the Commissioner of Housing Equity (COHE).

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously received the report for information and recommended that the report, including the Overview and the Quarterly Performance Report, be forwarded to the Board of Directors for information.

Item 15 - Terms of Reference – Office of the Commissioner of Housing Equity, BIFAC:2015-139

The BIFAC had before it the above-captioned report (BIFAC:2015-139) from the Chair of the BIFAC.  

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously adopted the report and recommended that the report, including the amended Terms of Reference of the OCHE (Attachment 1), be forwarded to the Board of Directors for approval.

Item 16 - OCHE – 2016 Work Plan, BIFAC:2015-142

The BIFAC had before it the above-captioned report (BIFAC:2015-142) from the Commissioner of Housing Equity. 

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously approved the Office of the Commissioner of Housing Equity’s (“OCHE”) 2016 Work Plan (“2016 Work Plan”) and recommended that the report including the 2016 Work Plan be forwarded to the Board of Directors for approval.

Item 17 - Reset Capital Renewal and Community Transformation Strategy Update Presentation

The Vice President, Facilities Management provided the BIFAC with a verbal update on the status of the above-captioned matter as follows:

• Resident Community Services Division has been working with TCHC youth to identify opportunities for them.
• TCHC has conducted accessibility audits, with involvement from the R-Path Committee
• Consultants have been hired and met with the 3 communities.
• The pilot project of the three communities is progressing well.
• A presentation “Swansea Mews” by D’Angelo Gordon was distributed at the meeting.

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Councillor Bailão and carried, the BIFAC unanimously received the verbal update and the presentation for information.

TERMINATION 

The BIFAC resolved to terminate the public meeting at 10:00 a.m.