Corporate Affairs and Audit Committee (CAAC) Meeting - April 16, 2014

Public Agenda

1. Approval of Public Meeting Agenda and Review of Agenda Order 

Action: Approval

Pre-read: Agenda

Presenter: Chair

2. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read

• Agenda
• Conflict of Interest Policy

Presenter: Chair

3. Confirmation of the Public Meeting Minutes of March 6, 2014

Action: Approval

Pre-read: Minutes

Presenter: Chair

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

Action: Discussion

Pre-read: Action Item List

Presenter: Chair

Reports from the Management

5. Auditor General’s Report: Results of Follow up of Previous Audit Recommendations

CAAC Terms of Reference: External Audits

Action: Information

Pre-read: -

Presenter: Auditor General

Closed Meeting Agenda

A. Approval of Agenda and Review of Agenda Order 

Action: Approval

Pre-read: Agenda

Presenter: Chair

B. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read

• Agenda
• Conflict of Interest Policy

Presenter: Chair

C. Confirmation of Closed Meeting Minutes of March 6, 2014

Action: Approval

Pre-read: Minutes

Presenter: Chair

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

Action: Discussion

Pre-read: Action Item List

Presenter: Chair

Reports from the Management

E. Confidential item respecting matters that are or may be the subject of litigation or potential litigation, and recommendations of proposed policy or processes.

CAAC Terms of Reference: Financial Reporting and Financial Statements

Action: Approval

Pre-read: CAAC:C2014-17

Presenter: Chief Financial Officer and External Auditor

F. Confidential item respecting matters that are or may be the subject of litigation or potential litigation, and recommendations of proposed policy or process.

CAAC Terms of Reference: Financial Reporting and Financial Statements

Action: Information

Pre-read: CAAC:C2014-18

Presenter: Chief Financial Officer

G. Confidential item respecting recommendations of proposed policy or processes

CAAC Terms of Reference: Financial Compliance

Action: Approval

Pre-read: CAAC:C2014-19

Presenter: Chief Financial Officer

H. Confidential item respecting matters 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.

CAAC Terms of Reference: Financial and Fraud Risk

Action: Information

Pre-read: CAAC:C2014-20

Presenter: CFO, CDO, and VP of Facilities Management

I. Confidential item respecting recommendations of proposed policy or processes

CAAC Terms of Reference: Financial and Fraud Risk

Action: Approval

Pre-read: Report not yet available

Presenter: Director, Strategic Planning & Stakeholder Relations; and Director of Strategic Communications

In Camera Agenda Items

Committee Only

TERMINATION

Public Meeting Minutes

The Corporate Affairs and Audit Committee (CAAC or the “Committee”) of Toronto Community Housing Corporation (TCHC) held a public meeting on April 16, 2014, in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 12:02 p.m.

Committee Directors Present:

Zahir Bhaidani, Chair

Christian Buhagiar

Brian Kwan

Karen Newman

Councillor Frances Nunziata

Also Present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Jason Gorel, Chief Financial Officer

Graham Leah, Vice President, Asset Management

Bruce Malloch, Director, Strategic Communications

Sheila Penny, Vice President, Facilities Management

Liz Reid, Vice President, Information Technology 

Pamela Spencer, General Counsel and Corporate Secretary

Anna Tramontozzi, Corporate Controller

Michael Vear, Chief Internal Auditor

Auditor General’s Office

Jeffrey Griffiths, Auditor General

Jerry Shaubel, Director, Auditor General’s Office

External Auditor – PricewaterhouseCoopers LLP (PWC)

Daniel D’Archivio, Partner, Audit and Assurance Group, PWC

Allen Topaloglu, Senior Manager, PWC

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

Item 1 - Approval of Agenda

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Mr. Brian Kwan and carried, the CAAC unanimously approved the agenda as presented.

Item 2 - Declaration of Conflict of Interest

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

Item 3 - Confirmation of Public Minutes of March 6, 2014

The Committee had before it the draft Corporate Affairs and Audit Committee minutes for the March 6, 2014 meeting.

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Mr. Brian Kwan and carried, the CAAC unanimously confirmed the March 6, 2014 public minutes as presented.

Item 4 - Business Arising from the Minutes and Committee Action Items Update

The Committee had before it the above captioned report.

The Committee asked for clarification with respect to the rationale of bringing “seniors buildings” as part of the unit consolidation process at the CAAC level rather than being discussed at the Building Standards and Neighbourhood Safety Committee (BSNSC). Management explained that this matter was presented in the context of addressing vacancy throughout TCHC’s portfolio through the unit consolidation strategy. TCHC staff are having advanced discussions on this matter with the City of Toronto, and will transfer this item to the BSNSC work plan.

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Mr. Brian Kwan and carried, the CAAC received the report for information.

Item 5 - Auditor General’s Report: Results of Follow up of Previous Audit Recommendations

The Committee had before it the above-captioned report from the Auditor General.

The Auditor General presented the report and a discussion ensued, including the following highlights:

• The Office of the Auditor General initiated two audits in 2011, containing a total of 41 recommendations, and three audits in 2012, containing 39 additional recommendations.
• The Auditor General reported that 19 out of the 37 outstanding recommendations have been fully implemented. The implementation of the 18 remaining recommendations is in progress and the status of their implementation will be carried forward to the next Auditor General’s follow-up review that will occur in approximately 12 months.
• The Auditor General expressed his satisfaction with respect to the status of the implementation of his audit recommendations and commended the Chief Financial Officer for his effort and work committed to the implementation process.

Karen Newman joined the meeting at 12:10 p.m.

• The Committee noted that 9 out of the 10 Auditor General’s total number of recommendations on “Controls Over Employee Expenses Are Ineffective” have been fully implemented and only one recommendation is still outstanding. The Auditor General confirmed the great improvement of the TCHC’s practices in this respect and informed the Committee that the only outstanding recommendation will be fully implemented subject to the issuance of the Chief Internal Auditor’s report on cash advances and petty cash.
• In response to a question raised by the Committee, the Auditor General informed the Committee that he will be reporting the findings to the City of Toronto’s Audit Committee. 
• The Committee noted that due to transferring the TCHC vehicle fleet over to the City of Toronto, currently, TCHC has to lease all vehicles from the City. The Committee requested clarification on the financial efficiencies achieved for TCHC through the implementation of the recommendations related to fleet management.
  • The Auditor General explained that financially, the fleet transfer from TCHC to the City is generating $500,000 in savings per year for TCHC. Operationally, there is a better control of the fleet under City’s management versus TCHC’s management. 
  • Management explained that the savings are reflected in the amount of money that would have cost TCHC to properly maintain the fleet at the same level as the City currently does.
• The Committee requested that the Auditor General provide an itemized list of cost savings for TCHC that have been generated subsequent to the implementation of the Auditor General’s recommendations and identification of internal efficiencies.

Motion carried

ON MOTION DULY MADE by Councillor Frances Nunziata, seconded by Ms. Karen Newman and carried, the CAAC received the report for information and requested that the Auditor General provide the Board of Directors with a list of all cost savings generated through the efficiencies found subsequent to the implementation of the Auditor General’s recommendations.

TERMINATION

ON MOTION DULY MADE by Mr. Brian Kwan, seconded by Mr. Christian Buhagiar and carried, the public meeting of the CAAC terminated at 12:25 p.m.