Building Investment, Finance and Audit Committee (BIFAC) Meeting - November 17, 2016

Public Agenda

1. Chair's Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

2. Consent Agenda

A) Approval of Public Meeting Agenda

Action: Approval

Pre-read: Agenda

Presenter: Chair

B) Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair

C) Confirmation of the Public Meeting Minutes of October 19, 2016

Action: Approval

Pre-read: Minutes

Presenter: Chair

D) Business Arising from the Public Meeting Minutes and Action Items Update

Action: Information

Pre-read: Action Item List

Presenter: Chair

E) Stand Alone Properties Update

Action: Information

Pre-read: BIFAC:2016-152

Presenter: President and Chief Executive Officer (Interim)

3. Internal Audit Reports

A) 2017 Internal Audit Budget

Action: Information

Pre-read: BIFAC:2016-151

Presenter: Chief Internal Auditor

B) Status Update on Audit Recommendations from Internal Audit Reports

Action: Information

Pre-read: BIFAC:2016-153

Presenter: Chief Internal Auditor

TERMINATION

Public Meeting Minutes

The Building Investment, Finance and Audit Committee (“BIFAC” or “Committee”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on November 17th, 2016 in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 8:36 a.m.

Committee Directors Present:

Colin Lynch, Chair

Councillor Ana Bailão, Vice Chair

Vincent Gasparro

Kevin Marshman (via teleconference) (arrived at 8:40)

Ex-officio Director in Attendance:

Norman “Bud” Purves

Other Director in Attendance:

Catherine Wilkinson

Management Present:

Leslie Gash, Acting Vice President, Development

Ismail Ibrahim, Director of Compliance and Legal Counsel

Mark Johnson, General Counsel and Corporate Secretary

Sylvia Kobal, Senior Director, Procurement

Graham Leah, Vice President, Asset Management

Rose-Ann Lee, Acting Chief Financial Officer and Treasurer 

Ted Millward, Legal Counsel, Corporate

Sheila Penny, Vice President, Facilities Management

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

Wayne Tuck, Chief Operating Officer (Interim)

Michael Vear, Chief Internal Auditor

A quorum being present, the Chair called the meeting to order and Mr. Steven Iserhoff served as recording secretary.

Item 1 - Chair's Remarks

No remarks were made by Chair at this time.

Item 2A - Consent Agenda

Motion carried

ON MOTION DULY MADE by Mr. Marshman, seconded by Mr. Gasparro and carried, the BIFAC unanimously approved Consent Agenda Items 2A, 2C and 2D as presented.

Item 2B -  Declaration of Conflict of Interest

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

Item 2E - Stand Alone Properties Update, BIFAC:2016-152

The BIFAC had before it the above-captioned report (BIFAC:2016-152)

Regarding the chart on page 3 of the report the Committee asked why TCHC is incurring overhead costs on the vacant units. The Committee commented that  vacant units would not alter  overhead costs. Management indicated they will provide a breakdown and description of the figure for “Estimated Vacancy Loss”.

The Committee discussed the report in light of the opportunity cost of these units having been closed and requested that Management report back with a determination of the total costs of these closed units, including the opportunity costs.

The Committee discussed when Management should notify the Board of unit closures. The Committee noted that the Board does not require notification of all unit closures but agreed a policy is required for those circumstances when the Board does need to be notified. It was requested that Management bring a draft policy to the next Committee meeting. 

Action items

1. For the three properties in the report that were vacant provide a brief public report for the next meeting that includes the following information:
   • a calculation of the opportunity cost of the units   having been left vacant;
   • details on the 40% of gross rents as operating expenses and overhead costs factored into the estimated vacancy loss calculation;
   • Consideration of whether the annual budgeted amount for the repair of single family homes is sufficient. 
2. Bring a draft policy for consideration that addresses when to notify the board that units will be closed.  The draft policy should address when to provide notification for closing individual units and multiple units. 
3. Bring a report in 2017 on units in the portfolio that are closed that includes a fixed cost and opportunity cost calculation. 

Motion carried

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

Item 3A - Internal Audit Reports: 2017 Internal Audit Budget, BIFAC:2016-151

The BIFAC had before it the above-captioned report (BIFAC:2016-151)

Clive Williams deputed the item.

The Committee discussed the employee salary increases reflected in the budget and Management noted the increase of 2.6% was typical of past increases for the Internal Audit department.

Action items

The BIFAC requested that Management report to the GCHRCC at its next meeting on the number of employees retiring before the end of November to avoid upcoming changes to the pension benefit plan. 

Motion Carried

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

Item 3B - Status Update on Audit Recommendations from Internal Audit Reports, BIFAC:2016-153

The BIFAC had before it the above-captioned report (BIFAC:2016-153)

The Committee noted there are a number of recommendations listed as in progress, and asked if Management could provide a status report at the next meeting on when the recommendations will be implemented. Management noted this.

Action items

Provide general status update on target dates for the 10 in-progress recommendations at next BIFAC meeting.

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

TERMINATION

The BIFAC resolved to terminate the public meeting at 9:25 a.m.