August 4, 1998

AUDIT COMMITTEE:

The Board of Directors of The Metropolitan Toronto Housing Company Limited on July 27, 1998, had before it a communication (July 21, 1998) from the Corporate Secretary advising that the Financeand Audit Committee on July 20, 1998, had before it a report dated July 20, 1998, from the General Manager, MTHCL, advising that as part of the annual audit process, the City of Toronto Auditors provide management of the Housing Company with observations and recommendations relating to internal control or other matters that come to their attention as a result of the audit; providing the General Manager's response to the observations and recommendations; wherein it recommends that the Finance and Audit Committee receive the Auditor's Report and Management's Response on the review of internal controls and accounting procedures of the Housing Company; and that the report be submitted to the Board of Directors for information; and further advising that the Committee:

(1)received the aforementioned report from the General Manager, and directed that a copy thereof be forwarded to the Board of Directors for information; and

(2)requested the General Manager to submit a report to the next meeting of the Finance and Audit Committee on the improvements identified by Housing Company staff during their review of internal controls.

The Board of Directors of The Metropolitan Toronto Housing Company Limited received, as information, the aforementioned report from the General Manager, together with the Auditor's Report and Management's Response on the review of internal controls and accounting procedures of the Housing Company; and directed that a copy thereof be forwarded to the City of Toronto AuditCommittee for information.

Corporate Secretary

R. MacKenzie/in

Item No. M-8

Attachment

Sent to:City of Toronto Audit Committee

Chief Operating Officer, Housing Company

City Auditor, Attention: Mr. J. Shaubel