City of Toronto Logo Contents

Considered by City Council on
October 26, 2009
October 27, 2009



Audit Committee


Meeting No. 11   Contact Rosemary MacKenzie, Council Administrator
Meeting Date Tuesday, October 20, 2009
  Phone 416-392-8021
Start Time 9:30 AM
  E-mail rmacken@toronto.ca
Location Committee Room 1, City Hall
  Chair   Councillor Doug Holyday  

Item  

AU11.2 Auditor General's Office - Annual Reporting Process (Ward: All)  

AU11.4 Review of Disposal of Surplus IT Equipment - Security, Environmental and Financial Risks (Ward: All)  

AU11.5 Process for Non-Competitive Procurement (Sole Sourcing) Needs Improvement (Ward: All)  

AU11.6 Parks, Forestry and Recreation – Capital Program – The Backlog in Needed Repairs Continues to Grow (Ward: All)  

AU11.7 Auditor General's Status Report on Outstanding Audit Recommendations for City Divisions (Ward: All)  

AU11.8 Auditor General's Status Report on Outstanding Audit Recommendations for City Agencies, Boards and Commissions (Ward: All)  

AU11.12 Responses to Audit Recommendations - City Performance in Achieving Access, Equity and Human Rights Goals (Ward: All)  

AU11.16 Agencies, Boards, Commissions and Corporations - Financial Statements for the Year Ended December 31, 2008  



City of Toronto Logo Committee Report

Considered by City Council on
October 26, 2009
October 27, 2009



Audit Committee


Meeting No. 11   Contact Rosemary MacKenzie, Council Administrator
Meeting Date Tuesday, October 20, 2009
  Phone 416-392-8021
Start Time 9:30 AM
  E-mail rmacken@toronto.ca
Location Committee Room 1, City Hall
  Chair   Councillor Doug Holyday  

AU11.2

 

Adopted 

 

Ward: All 

Auditor General's Office - Annual Reporting Process
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council receive for information, the report (May 29, 2009) from the Auditor General. 

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council receive for information, the report (May 29, 2009) from the Auditor General. 

Origin
(May 29, 2009) Report from the Auditor General
Summary

In considering a report dated April 23, 2009 entitled “A Policy Framework for Toronto’s Accountability Officers”, Council requested that 'the Accountability Officers' inform Council of the requirements, contents and timing of their annual report”.  This report is the Auditor General’s response to the request from City Council.

 

The annual reporting to City Council by the Auditor General consists of a number of different reports.  This report outlines each of the annual reporting processes to City Council by the Auditor General.

Background Information (Committee)
Report (May 29, 2009) from the Auditor General - Annual Reporting Process
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22115.pdf)


AU11.4

 

Amended 

 

Ward: All 

Review of Disposal of Surplus IT Equipment - Security, Environmental and Financial Risks
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council request the Chief Information Officer to re-evaluate the agreement with the vendor who is currently providing information technology asset disposal services.  Such re-evaluation take into account the experience of the vendor particularly in the area of data security and environmental concerns and where appropriate ensure that the vendor is capable of providing the level of service required.

 

2.         City Council request the Chief Information Officer to review all provisions in the agreement with the third party information technology asset disposal vendor and direct the vendor to comply with all provisions in the agreement.  Further policies, procedures be established to ensure that the City is able to confirm compliance.  Regular audits including the development of audit programmes be conducted to confirm compliance.  Documentary evidence of all such compliance audits be retained and approved by supervisory staff.

 

3.         City Council request the Chief Information Officer, on a random basis, to confirm that hard drives submitted to the auctioneer have been successfully erased.  Specialized data recovery tools be used to determine whether or not hard drives have been successfully deleted.

 

4.           City Council request the Chief Information Officer to ensure that disposal processes for surplus information technology assets are in conformance with regulatory procedures and all such disposals are supported by an adequate audit trail for subsequent verification by City staff.

 

5.         City Council request the Chief Information Officer to ensure that receipts from the sale of equipment are reconciled to the actual equipment sold.

 

6.         City Council request the Chief Information Officer to report to the Government Management Committee on the existing policy for the disposal of surplus information and technology equipment, such report to also address the feasibility of amending the City's policy to allow for the sale of surplus information and technology equipment to employees.

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the Chief Information Officer to re-evaluate the agreement with the vendor who is currently providing information technology asset disposal services.  Such re-evaluation take into account the experience of the vendor particularly in the area of data security and environmental concerns and where appropriate ensure that the vendor is capable of providing the level of service required.

 

2.         City Council request the Chief Information Officer to review all provisions in the agreement with the third party information technology asset disposal vendor and direct the vendor to comply with all provisions in the agreement.  Further policies, procedures be established to ensure that the City is able to confirm compliance.  Regular audits including the development of audit programmes be conducted to confirm compliance.  Documentary evidence of all such compliance audits be retained and approved by supervisory staff.

 

3.         City Council request the Chief Information Officer, on a random basis, to confirm that hard drives submitted to the auctioneer have been successfully erased.  Specialized data recovery tools be used to determine whether or not hard drives have been successfully deleted.

 

4.           City Council request the Chief Information Officer to ensure that disposal processes for surplus information technology assets are in conformance with regulatory procedures and all such disposals are supported by an adequate audit trail for subsequent verification by City staff.

 

5.         City Council request the Chief Information Officer to ensure that receipts from the sale of equipment are reconciled to the actual equipment sold.

Origin
(May 4, 2009) Report from the Auditor General
Summary

The objective of this review was to determine whether the City’s management and oversight of the disposal of surplus Information Technology (IT) equipment adequately addresses potential risks such as:

 

-           ensuring information residing on computer equipment such as hard drives is  effectively erased or destroyed

-           ensuring that surplus equipment is disposed of in an environmentally responsible manner, and

-           ensuring the City receives its share of the funds from the disposal of the assets.

 

The review identified the need to address a number of important areas relating to contract compliance.  The City needs to address these issues in order to mitigate the risks pertaining to the inappropriate disposal of surplus IT assets.  There is also a need to ensure that the qualifications of the current third party vendor are re-evaluated.

 

Although recommendations in this report focus on improving controls over the disposal of surplus IT equipment at the City the recommendations may be relevant to the City’s Agencies, Boards, Commissions and Corporations and should be reviewed, evaluated and implemented as deemed appropriate.

Background Information (Committee)
Report (May 4, 2009) from the Auditor General - Review of Disposal of Surplus IT Equipment - Security, Environmental and Financial Risks
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22125.pdf)

Attachment 1 - Auditor General's Office (May 4, 2009) Review of Disposal of Surplus IT Equipment - Security, Environmental and Financial Risks
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22126.pdf)

Appendix 2 - Management's Response to the Auditor General's Review
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22127.pdf)


AU11.5

 

Adopted 

 

Ward: All 

Process for Non-Competitive Procurement (Sole Sourcing) Needs Improvement
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council request the Treasurer to report annually to Government Management Committee a summary of all sole source purchases including divisional purchase orders, as well as sole source purchases reported to the Standing Committees and Council.

 

2.         City Council request the Treasurer to require that staff in the Purchasing and Materials Management Division report significant inappropriate sole source activity to senior divisional staff in order to address performance and training issues of divisional staff.

 

3.         City Council request the Treasurer to require that the reasons for all sole source purchases, including those purchases approved in Standing Committee and Council reports, are recorded in the financial information system on a consistent basis.

 

4.         City Council request the Treasurer to ensure policies and procedures to control and monitor the new $50,000 limit on divisional purchase orders are finalized and issued to divisional staff as soon as possible.  Such procedures should address the justification and documentation requirements for sole source purchases.

 

5.         City Council request the Treasurer to ensure that sole source procedures clearly state that solicitation of informal bids is not permitted.  Similarly, for non emergency situations, vendors should not start work before purchase orders are approved and wherever possible, the first phase of multi-phased projects should undergo a competitive procurement process.

 

6.         City Council request the Treasurer to re-emphasize to divisional management the importance of identifying procurement requirements and ensure that this information is communicated to the Purchasing and Materials Management Division and City Legal on a timely basis.  This process would allow for sufficient lead time, such that both the Purchasing and Materials Management Division and City Legal can schedule their respective resources to meet divisional timelines.

 

7.         City Council request the Treasurer to develop and communicate guidelines to assist divisional staff in identifying contractual relationships where the potential exists that the contractor could be deemed an employee by the Canada Revenue Agency.

 

8.         City Council request the City Manager to direct City divisions to report back to the Treasurer on any consulting/contractor arrangements that may pose a significant risk of being deemed City employees by the Canada Revenue Agency.

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the Treasurer to report annually to Government Management Committee a summary of all sole source purchases including divisional purchase orders, as well as sole source purchases reported to the Standing Committees and Council.

 

2.         City Council request the Treasurer to require that staff in the Purchasing and Materials Management Division report significant inappropriate sole source activity to senior divisional staff in order to address performance and training issues of divisional staff.

 

3.         City Council request the Treasurer to require that the reasons for all sole source purchases, including those purchases approved in Standing Committee and Council reports, are recorded in the financial information system on a consistent basis.

 

4.         City Council request the Treasurer to ensure policies and procedures to control and monitor the new $50,000 limit on divisional purchase orders are finalized and issued to divisional staff as soon as possible.  Such procedures should address the justification and documentation requirements for sole source purchases.

 

5.         City Council request the Treasurer to ensure that sole source procedures clearly state that solicitation of informal bids is not permitted.  Similarly, for non emergency situations, vendors should not start work before purchase orders are approved and wherever possible, the first phase of multi-phased projects should undergo a competitive procurement process.

 

6.         City Council request the Treasurer to re-emphasize to divisional management the importance of identifying procurement requirements and ensure that this information is communicated to the Purchasing and Materials Management Division and City Legal on a timely basis.  This process would allow for sufficient lead time, such that both the Purchasing and Materials Management Division and City Legal can schedule their respective resources to meet divisional timelines.

 

7.         City Council request the Treasurer to develop and communicate guidelines to assist divisional staff in identifying contractual relationships where the potential exists that the contractor could be deemed an employee by the Canada Revenue Agency.

 

8.         City Council request the City Manager to direct City divisions to report back to the Treasurer on any consulting/contractor arrangements that may pose a significant risk of being deemed City employees by the Canada Revenue Agency.

Committee Decision Advice and Other Information

The Audit Committee requested:

 

1.         the Treasurer to report to the Audit Committee:

 

a.         within three months, with a list of all sole source contracts which were awarded for amounts up to $500,000.00 during the period from January 1, 2007 to December 31, 2008, such list to include the names of awardees, dates, amounts and reasons for the sole source awards; and

 

b.         annually thereafter, on amounts awarded through sole source contracts.

 

2.         the Deputy City Manager and Chief Financial Officer to report to the Audit Committee on the advisability of requesting the City's agencies, boards and commissions to include information on sole source contracts as part of their annual reports.

Origin
(May 22, 2009) Report from the Auditor General
Summary

The objective of this review was to determine whether sole source contracts complied with the City’s Municipal Code and purchasing policies and procedures.

 

Our review identified opportunities for improvement in reporting and processing sole source purchases.  Our recommendations will improve the current sole source procurement process and will assist management in minimizing non-competitive procurement. 

 

A management response to each of the recommendations is attached to this report.

Background Information (Committee)
Report (May 22, 2009) from the Auditor General - Process for Non-Competitive Procurement (Sole Sourcing) Needs Improvement
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22122.pdf)

Appendix 1 - Auditor General's Office (May 1, 2009) Process for Non-Competitive Procurement (Sole Sourcing) Needs Improvement
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22123.pdf)

Appendix 2 - Management's Response to the Auditor General's Review
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22124.pdf)


AU11.6

 

Amended 

 

Ward: All 

Parks, Forestry and Recreation – Capital Program – The Backlog in Needed Repairs Continues to Grow
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council request the General Manager, Parks, Forestry and Recreation, to:

 

             a.        develop a comprehensive Master Service and Infrastructure Plan, incorporating the Division’s “Our Common Grounds” strategy and all related studies being developed or planned pertaining to parks and recreation facilities, and report to the  Community Development and Recreation Committee in 2011.  Such Master Plan to include, but not limited to:

 

i.          specific action plans, timelines and responsibility for implementation;

 

ii.          estimated costs and potential funding sources or partnership opportunities to be explored; and

 

iii.         reporting on the status of the master implementation plan as part of the annual capital budget submission; and

 

             b.        submit a Status Update report to the Community Development and Recreation Committee by September 2010 regarding the Master Service and Infrastructure Plan.

 

2.         City Council request the General Manager, Parks, Forestry and Recreation, as part of the development of the Master Service and Infrastructure Plan, consider taking appropriate steps to:

 

a.         develop criteria for determining when a City facility is considered to be no longer cost-effective to maintain, taking into consideration such factors as utilization, ongoing operating and capital maintenance costs, location, and proximity to other facilities, community impact and changing demographics;

 

b.         where practical, incorporate the criteria developed into the capital asset management system;

 

c.         compile a comprehensive inventory of all facilities that are no longer cost-effective to maintain based on criteria developed in (a.);

 

d.         identify opportunities for consolidation of operations within existing facilities or potential new ones and recommend facility closures, if warranted;

 

e.         determine the full financial implications of either maintaining, enhancing or closing facilities, including any potential program changes resulting from each option;

 

f.          where a facility closure is recommended, develop alternate accommodation for viable affected programs; and

 

g.         conduct appropriate community consultations of any planned actions.

 

3.         City Council request the General Manager, Parks, Forestry and Recreation to report to the Executive Committee for its meeting on January 4, 2010 on appropriate guidelines for community consultations with respect to Parks, Forestry and Recreation state of good repair projects.

  

4.         City Council request the City Manager to give priority to the development and implementation of a City-wide prioritization framework for capital repairs, as previously recommended in an Auditor General’s report entitled “Maintenance and Administrative Controls Review – Facilities and Real Estate” dated September 2005.  Further, the priority framework be enhanced by including all new capital projects.

 

5.         City Council request the General Manager, Parks, Forestry and Recreation to report to Budget Committee, as recommended by Council, by November 2009, on the outcome of the Capital Budget Task Force.  Such report to include:

 

a.         issues identified and factors contributing to project delays;

 

b.         recommendations to address issues identified and minimize delays; and

 

c.         status, timelines and responsibility of implementation of each of the recommendations being made.

 

6.         City Council request the City Manager to review the funding allocation between state of good repair projects and service improvement or growth-related projects, both at the division and city-wide levels, and take appropriate steps to develop a sustainable long-term strategy to reduce the current and projected state of good repair backlog.

 

7.         City Council request the Deputy City Manager and Chief Financial Officer to require all major projects for new infrastructure include future capital maintenance costs for reporting under financial implications at the time of project approval.

 

8.         City Council request the Deputy City Manager and Chief Financial Officer, as part of the 2010 Capital Budget Process, to report on the status of the state of good repair backlog, by Division, as compared to total asset value and how the 2010 to 2019 Capital Plan impacts the state of good repair backlog.

 

9.         City Council request the City Manager, in consultation with the General Manager, Parks, Forestry and Recreation and the Director, Toronto Office of Partnerships, to develop, for approval by Council, a comprehensive City-wide policy on naming rights and other private funding arrangements, such policy to:

 

a.         consider all existing policies related to:

 

i.          Parks and Recreation Naming and Renaming Policy

ii.         Donations policy

iii.        Advertising

iv.        Unsolicited bids

v.         Sponsorships and partnerships

 

b.         include guidelines on:

 

i.          eligibility criteria for facilities to be considered for naming rights

 

ii.          responsibility and control processes for securing and accepting naming rights or other private funding arrangements

 

iii.         the creation of endowment, or similar funds, to offset future maintenance and repair costs for new facilities put in place under this policy.

 

10.       City Council request the Director, Toronto Office of Partnerships, in consultation with appropriate divisional staff, to identify all potential projects and facilities that may benefit from naming rights or other private funding arrangements and, with the approval of Council, pursue such funding according to corporate guidelines.

 

11.       City Council request the General Manager, Parks, Forestry and Recreation, to give priority to completing the development and implementation of the work order system for Parks, Forestry and Recreation Division to provide the tracking of both operating and capital costs of each facility.

 

12.       City Council request the City Clerk, in consultation with the City Solicitor, to clarify Council procedures with respect to recommendations at Community Councils on matters that are contrary to Council policy, and consider requiring that such recommendations state explicitly that a Council policy is being contravened.

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the General Manager, Parks, Forestry and Recreation, to develop a comprehensive master service and infrastructure plan, incorporating the Division’s “Our Common Grounds” strategy and all related studies being developed or planned pertaining to parks and recreation facilities, and report to the  Community Development and Recreation Committee by June 30, 2010.  Such master plan to include, but not limited to:

 

a.         specific action plans, timelines and responsibility for implementation;

 

b.         estimated costs and potential funding sources or partnership opportunities to be explored; and

 

c.          reporting on the status of the master implementation plan as part of the annual capital budget submission.

 

2.         City Council request the General Manager, Parks, Forestry and Recreation, to take appropriate steps to:

 

a.         develop criteria for determining when a City facility is considered to be no longer cost-effective to maintain, taking into consideration such factors as utilization, ongoing operating and capital maintenance costs, location, and proximity to other facilities, community impact and changing demographics;

 

b.         where practical, incorporate the criteria developed into the capital asset management system;

 

c.         compile a comprehensive inventory of all facilities that are no longer cost-effective to maintain based on criteria developed in (a.);

 

d.         identify opportunities for consolidation of operations within existing facilities or potential new ones and recommend facility closures, if warranted;

 

e.         determine the full financial implications of either maintaining, enhancing or closing facilities, including any potential program changes resulting from each option;

 

f.          where a facility closure is recommended, develop alternate accommodation for viable affected programs; and

 

g.         conduct appropriate community consultations of any planned actions.

 

3.         City Council request the City Manager to give priority to the development and implementation of a City-wide prioritization framework for capital repairs, as previously recommended in an Auditor General’s report entitled “Maintenance and Administrative Controls Review – Facilities and Real Estate” dated September 2005.  Further, the priority framework be enhanced by including all new capital projects.

 

4.         City Council request the General Manager, Parks, Forestry and Recreation to report to Budget Committee, as recommended by Council, by November 2009, on the outcome of the Capital Budget Task Force.  Such report to include:

 

a.         issues identified and factors contributing to project delays;

 

b.           recommendations to address issues identified and minimize delays; and

 

c.         status, timelines and responsibility of implementation of each of the recommendations being made.

 

5.         City Council request the City Manager to review the funding allocation between state of good repair projects and service improvement or growth-related projects, both at the division and city-wide levels, and take appropriate steps to develop a sustainable long-term strategy to reduce the current and projected state of good repair backlog.

 

6.         City Council request the Deputy City Manager and Chief Financial Officer to require all major projects for new infrastructure include future capital maintenance costs for reporting under financial implications at the time of project approval.

 

7.         City Council request the City Manager, in consultation with the General Manager, Parks, Forestry and Recreation and the Director, Toronto Office of Partnerships, to develop, for approval by Council, a comprehensive City-wide policy on naming rights and other private funding arrangements, such policy to:

 

a.         consider all existing policies related to:

 

i.          Parks and Recreation Naming and Renaming Policy

ii.         Donations policy

iii.        Advertising

iv.        Unsolicited bids

v.         Sponsorships and partnerships

 

b.         include guidelines on:

 

i.          eligibility criteria for facilities to be considered for naming rights

 

ii.          responsibility and control processes for securing and accepting naming rights or other private funding arrangements

 

iii.         the creation of endowment, or similar funds, to offset future maintenance and repair costs for new facilities put in place under this policy.

 

8.         City Council request the Director, Toronto Office of Partnerships, in consultation with appropriate divisional staff, to identify all potential projects and facilities that may benefit from naming rights or other private funding arrangements and, with the approval of Council, pursue such funding according to corporate guidelines.

 

9.         City Council request the General Manager, Parks, Forestry and Recreation, to give priority to completing the development and implementation of the work order system for Parks, Forestry and Recreation Division to provide the tracking of both operating and capital costs of each facility.

 

10.       City Council request the City Clerk, in consultation with the City Solicitor, to clarify Council procedures with respect to recommendations at Community Councils on matters that are contrary to Council policy, and consider requiring that such recommendations state explicitly that a Council policy is being contravened.

Committee Decision Advice and Other Information

The Audit Committee forwarded a copy of the document submitted by David McDonald to the Auditor General with a request that he review the submission and consider reporting back to the Audit Committee with his comments.

Origin
(January 23, 2009) Report from the Auditor General
Summary

The objective of this review was to assess the extent to which the Parks, Forestry and Recreation Division manages its capital program with due regard to economy, efficiency and effectiveness, from a broad high level perspective.

 

Our review identified a number of issues areas relating to the growing state of good repair backlog and management of the capital program.  While the review was focused on Parks, Forestry and Recreation Division, most of the issues identified have broader implications from a corporate perspective and therefore require City-wide solutions.

 

Addressing the recommendations in this report will enhance the Parks, Forestry and Recreation Division’s and the City’s efforts in improving and expanding significant infrastructure assets through more cost-effective management of limited resources.

Background Information (Committee)
Report (January 23, 2009) from the Auditor General - Parks, Forestry and Recreation - Capital Program - The Backlog in Needed Repairs Continues to Grow
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22119.pdf)

Appendix 1 - Auditor General's Office (January 23, 2009) Parks, Forestry and Recreation - Capital Program - The Backlog in Needed Repairs Continues to Grow
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22120.pdf)

Attachment 2 - Management's Response to the Auditor General's Review
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22121.pdf)

Communications (Committee)
(October 20, 2009) Submission from David McDonald, President, Merit Open Shop Contractors Association (AU.New.AU11.6.1)
Speakers (Committee)

Mr. David McDonald, President, Merit Open Shop Contractors Association (Submission Filed)
Councillor Janet Davis
Councillor Denzil Minnan-Wong


AU11.7

 

Amended 

 

Ward: All 

Auditor General's Status Report on Outstanding Audit Recommendations for City Divisions
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council request the City Manager to direct senior management to review documentation supporting the implementation status of all audit recommendations prior to the submission of information to the Auditor General’s Office.

 

2.         City Council request the City Manager to report progress twice yearly to the Executive Committee on the status of outstanding audit recommendations to the Fire Services Division, in view of the Auditor General’s comments, namely:

 

-           "Fire Services Division has implemented less than 50% of our audit recommendations over the past 3 years"; and

 

-           "a significant number of recommendations which staff had indicated were implemented .... were not implemented".

 

3.         City Council request that responses to all outstanding recommendations be submitted to the Auditor General's Office by December 31, 2009.  If there is an objection to the Auditors Recommendations, the reason be stated as to why the recommendations would not be implemented.

 

4.         City Council not authorize the public release of Confidential Attachment 1 to the report (June 1, 2009) from the Auditor General.

 

Confidential Attachment 1 to the report (June 1, 2009) from the Auditor General remains confidential in its entirety, in accordance with the provisions of the City of Toronto Act, 2006, as it contains information related to the security of property belonging to the City or one of its agencies, boards and commissions.

City Council Decision Advice and Other Information

City Council considered the following Items together:

 

-           Item AU11.7, headed "Auditor General's Status Report on Outstanding Audit Recommendations for City Divisions"; and

 

-           Item AU11.8, headed "Auditor General's Status Report on Outstanding Audit Recommendations for City Agencies, Boards and Commissions".

————
Confidential Attachment - The security of property belonging to the City or one of its agencies, boards and commissions
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council request the City Manager to direct senior management to review documentation supporting the implementation status of all audit recommendations prior to the submission of information to the Auditor General’s Office.

 

2.         City Council not authorize the public release of Confidential Attachment 1.

Committee Decision Advice and Other Information

The Audit Committee requested the City Manager to report to the Audit Committee within three months, on what is being done with regard to those recommendations made by the Auditor General since January, 1999, which still have not been implemented.

Origin
(June 1, 2009) Report from the Auditor General
Summary

This report provides information regarding the implementation status of audit recommendations contained in various reports issued by the Auditor General to City divisions.  The report is the fourth such annual report issued by the Auditor General related to follow-up on management efforts to implement outstanding recommendations.

 

Management has made significant progress on implementing outstanding audit recommendations.  Further, we noted that management continues to make progress on many recommendations not yet fully implemented.

 

Since January 1, 1999 the Auditor General has issued various reports containing a total of 1,012 recommendations.  Since that time 125 of these recommendations have been identified by the Auditor General as no longer relevant.  These recommendations are no longer relevant because of changes such as re-organization, modification, reduction or termination of the service provided by the affected division.  Consequently, of the 1,012 recommendations made, 887 continue to have relevance.

 

The results of our review indicate management has fully implemented 790 or 89 per cent of the recommendations made by the Auditor General from January 1, 1999 to June 30, 2008.

 

Continued efforts to implement outstanding recommendations will provide additional benefit to the City through cost savings, additional revenue and enhanced service delivery.

Background Information (Committee)
Report (June 1, 2009) from the Auditor General - Auditor General's Status Report on Outstanding Audit Recommendations for City Divisions
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22143.pdf)

Attachment 2 - City Divisions - Public Recommendations
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22144.pdf)


AU11.8

 

Amended 

 

Ward: All 

Auditor General's Status Report on Outstanding Audit Recommendations for City Agencies, Boards and Commissions
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council receive for information, the report (June 1, 2009) from the Auditor General.

 

2.         City Council request that responses to all outstanding recommendations be submitted to the Auditor General's Office by December 31, 2009.  If there is an objection to the Auditors Recommendations, the reason be stated as to why the recommendations would not be implemented.

City Council Decision Advice and Other Information

City Council considered the following Items together:

 

-           Item AU11.7, headed "Auditor General's Status Report on Outstanding Audit Recommendations for City Divisions"; and

 

-           Item AU11.8, headed "Auditor General's Status Report on Outstanding Audit Recommendations for City Agencies, Boards and Commissions".

————
Committee Recommendations

The Audit Committee recommends that:

 

1.            City Council receive for information, the report (June 1, 2009) from the Auditor General.

Origin
(June 1, 2009) Report from the Auditor General
Summary

This report provides information regarding the implementation status of audit recommendations contained in various reports issued by the Auditor General to the City’s agencies, boards and commissions.  The report is the third annual report issued by the Auditor General related to follow-up on management efforts to implement outstanding recommendations at the City’s agencies, boards and commissions.

 

Management has made significant progress on implementing outstanding audit recommendations.  Further, it appears management continues to make progress on recommendations not fully implemented.

 

The results of our review indicate that on a combined basis, City agencies, boards and commissions have implemented 93 per cent of the 162 recommendations made by the Auditor General from January 1, 1999 to June 30, 2008. 

 

Continued efforts to implement outstanding recommendations will provide additional benefit to the City through cost savings, additional revenue and enhanced service delivery.

Background Information (Committee)
Report (June 1, 2009) from the Auditor General - Status Report on Outstanding Audit Recommendations for City Agencies, Boards and Commissions
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22130.pdf)

Appendix 1 - Toronto Parking Authority - Results of Follow-up of Previous Audit Recommendations
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22131.pdf)

Appendix 2 - Board of Health - Results of Follow-up of Previous Audit Recommendations
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22132.pdf)

Appendix 3 - Toronto Public Library Board - Results of Follow-up of Previous Audit Recommendations
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22133.pdf)

Appendix 4 - Toronto Transit Commission - Results of Follow-up of Previous Audit Recommendations
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22134.pdf)


AU11.12

 

Adopted 

 

Ward: All 

Responses to Audit Recommendations - City Performance in Achieving Access, Equity and Human Rights Goals
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council receive for information, the 28 responses regarding access, equity and human rights policies and procedures, received from the City’s agencies, boards and commissions and attached to the report (June 8, 2009) from the City Clerk.

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council receive for information, the 28 responses regarding access, equity and human rights policies and procedures, received from the City’s agencies, boards and commissions and attached to the report (June 8, 2009) from the City Clerk.

Committee Decision Advice and Other Information

The Audit Committee:

 

1.         forwarded a copy of the responses received from the agencies, boards and commissions, to the City Manager for evaluation as to whether they comply with the City’s human rights policy and procedures; and

 

2.         requested the City Manager to contact those agencies, boards and commissions which have not submitted a response and ensure that they have appropriate human rights policies in place.

Origin
(June 8, 2009) Report from the City Clerk
Summary

The Protocol for Responses to Audit Recommendations by Agencies, Boards and Commissions sets out a formal reporting process whereby responses to an Audit report are co-ordinated through the City Clerk’s Office and forwarded to the Audit Committee.

 

This report provides the Audit Committee with the responses from those agencies, boards, commissions and corporations (ABCCs) which were requested by City Council to report on the development and implementation of human rights policies and complaints procedures by June 2009.  It also notes those ABCCs which have not yet submitted a response.

 

Staff from the City Manager’s Office have been consulted during the preparation of this report.

Background Information (Committee)
Report (June 8, 2009) from the City Clerk - Responses to Audit Recommendations - City Performance in Achieving Access, Equity and Human Rights Goals
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22209.pdf)

Attachment 1 - e-mail (June 8, 2009) from the Manager, 519 Church Street Community Centre
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22183.pdf)

Attachment 2 - e-mail (June 3, 2009) from the Executive Director, Cecil Community Centre
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21873.pdf)

Attachment 3 - e-mail (June 2, 2009) from the Executive Director, Central Eglinton Community Centre
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21863.pdf)

Attachment 4 - e-mail (June 2, 2009) from the Executive Director, Community Centre 55
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21866.pdf)

Attachment 5 - letter (May 19, 2009) from the Chief Executive Officer, Exhibition Place
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21869.pdf)

Attachment 6 - Letter (June 8, 2009) from the Manager, George Bell Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22149.pdf)

Attachment 7 - letter (May 21, 2009) from the Executive Director, Harbourfront Community Centre
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21870.pdf)

Attachment 8 - letter (May 19, 2009) from the General Manager, Leaside Gardens
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21864.pdf)

Attachment 9 - fax (June 8, 2009) from the Manager, McCormick Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22181.pdf)

Attachment 10 - e-mail (June 3, 2009) from the Manager, Moss Park Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22182.pdf)

Attachment 11 - fax (June 4, 2009) from the Manager, North Toronto Memorial Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22148.pdf)

Attachment 12 - e-mail (May 4, 2009) from the Director, Finance and Personnel, Sony Centre for the Performing Arts
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21872.pdf)

Attachment 13 - e-mail (June 2, 2009) from the Executive Director, Swansea Town Hall
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21868.pdf)

Attachment 14 - e-mail (June 3, 2009) from the Manager, Ted Reeve Community Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21862.pdf)

Attachment 15 - letter (June 3, 2009) from the Acting Chief Executive Officer, Toronto Community Housing Corporation
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22001.pdf)

Attachment 16 - letter (June 3, 2009) from the President, Toronto Parking Authority
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22002.pdf)

Attachment 17 - letter (June 1, 2009) from the Chair, Toronto Police Services Board
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22003.pdf)

Attachment 18 - report (June 5, 2009) from the City Librarian
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22150.pdf)

Attachment 19 - letter (June 3, 2009) from the Chief General Manager, Toronto Transit Commission
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21861.pdf)

Attachment 20 - letter (May 26, 2009) from the Chairperson, William H. Bolton Arena
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21865.pdf)

Attachment 21 - letter (June 8, 2009) from the Chief Financial Officer, Waterfront Toronto
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-22176.pdf)

Attachment 22 - Yonge-Dundas Square Board of Management, Human Rights and Anti-Harassment Policy (August 2008)
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-21867.pdf)


12a Additional Responses to Audit Recommendations - City Performance in Achieving Access, Equity and Human Rights Goals
Summary

Five additional responses have been received from agencies, boards, commissions and corporations with respect to their human rights policies and complaints procedures.

Background Information (Committee)
Supplementary report (October 6, 2009) from the Audit Committee Administrator submitting five additional responses from ABCCs
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24185.pdf)

Attachment 23 - e-mail (June 18, 2009) from the Administrator, Heritage Toronto
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24186.pdf)

Attachment 24 - letter (June 3, 2009) from the Acting Chief Executive Officer, Toronto Community Housing Corporation
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24187.pdf)

Attachment 25 - letter (June 29, 2009) from Scadding Court Community Centre
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24188.pdf)

Attachment 26 - e-mail (June 10, 2009) from the Toronto Atmospheric Fund
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24189.pdf)

Attachment 27 - letter (June 12, 2009) from the Chief Executive Officer, Toronto Zoo
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24190.pdf)

Attachment 28 - letter (October 13, 2009) from the Manager, Human Resources, Toronto Centre for the Arts
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24326.pdf)


AU11.16

 

Adopted 

 

 

Agencies, Boards, Commissions and Corporations - Financial Statements for the Year Ended December 31, 2008
City Council Decision

City Council on October 26 and 27, 2009, adopted the following:

 

1.         City Council receive for information, the 2008 Financial Statements and related documents of the following agencies, boards, commissions and corporations:

 

             -    Exhibition Place

             -     Toronto Parking Authority

             -     Toronto Transit Commission.

————
Committee Recommendations

The Audit Committee recommends that:

 

1.         City Council receive for information, the 2008 Financial Statements and related documents of the following agencies, boards, commissions and corporations:

 

            -     Exhibition Place

            -     Toronto Parking Authority

            -     Toronto Transit Commission.

Committee Decision Advice and Other Information

The Audit Committee received for information, the 2008 Financial Statements and related documents of the following corporations:

 

-           Toronto Community Housing Corporation

-           Toronto Hydro Corporation.

Summary

The following agencies, boards, commissions and corporations have submitted 2008 Financial Statements to the Audit Committee for consideration:

 

- Exhibition Place

- Toronto Community Housing Corporation

- Toronto Hydro Corporation

- Toronto Parking Authority

- Toronto Transit Commission

 

Speakers (Committee)

Councillor Paula Fletcher


16a Exhibition Place - 2008 Financial Statements
Summary

Consolidated Financial Statements and Audit Results for Exhibition Place for the year ended December 31, 2008.

Background Information (Committee)
Consolidated Financial Statements - Exhibition Place, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24155.pdf)

Audit Results - Exhibition Place, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24156.pdf)

Report (October 7, 2009) from the Chief Executive Officer, Exhibition Place, headed "2008 Consolidated Financial Statements for Exhibition Place"
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24157.pdf)

Report (September 11, 2009) from the Chief Executive Officer, Exhibition Place, headed "Audit Results for Exhibition Place - December 31, 2008"
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24158.pdf)


16b Toronto Community Housing Corporation - 2008 Audited Consolidated Financial Statements
Origin
(September 8, 2009) Report from the Executive Committee
Summary

The Executive Committee on September 8, 2009, amongst other things, forwarded a copy of the Toronto Community Housing 2008 audited consolidated financial statements to the Audit Committee for its meeting on September 24, 2009, for information.

Background Information (Committee)
Consolidated Audited Annual Financial Statements - Toronto Community Housing Corporation, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24159.pdf)

Transmittal Letter (September 8, 2008) from the Executive Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24160.pdf)

Report (August 18, 2009) from the City Manager, headed "Toronto Community Housing Corporation - Annual Report to Shareholder, 2008 Audited Consolidated Annual Financial Statements and Annual General Meeting"
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24161.pdf)

Report (August 17, 2009) from the Deputy City Manager and Chief Financial Officer, headed "Toronto Community Housing Corporation - Financial Statements 2008"
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24162.pdf)

Letter (October 7, 2009) from the Acting Chief Executive Officer, Toronto Community Housing Corporation, forwarding additional information as requested by the Audit Committee on September 24, 2009
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24180.pdf)

Letter (October 6, 2009) from Ernst & Young, Chartered Accountants with respect to the Audit Results of TCHC
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24181.pdf)

Audit Results - Toronto Community Housing Corporation - December 31, 2009
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24182.pdf)


16c Toronto Hydro Corporation - 2008 Financial Statements
Summary

City Council on August 5 and 6, 2009, referred the Toronto Hydro Corporation's Consolidated 2008 Annual Financial Statements to the Audit Committee for review.

Background Information (Committee)
Transmittal Letter (August 13, 2009) from the Executive Committee, forwarding Toronto Hydro's Financial Statements to the Audit Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24163.pdf)

Financial Statements - Toronto Hydro Corporation, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24165.pdf)

Cover Report (May 19, 2009) from the DCM/CFO, providing Toronto Hydro Corporation's Financial Statements to the Executive Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24164.pdf)

Item EX33.7, Toronto Hydro Corporation - Annual General Meeting and Audited Annual Financial Statements, adopted by Council on Aug 5 and 6, 2009
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24166.pdf)

Report (May 14, 2009) from the City Manager to the Executive Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24167.pdf)

Attachment 1, headed "Toronto Hydro Corporation Report, April 30, 2009", attached to the report (May 14, 2009) from the City Manager
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24168.pdf)


16d Toronto Parking Authority - 2008 Financial Statements
Summary

Audited Financial Statements and Audit Results for the Toronto Parking Authority for the year ended December 31, 2008.

Background Information (Committee)
Financial Statements - Toronto Parking Authority, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24169.pdf)

Audit Results - Toronto Parking Authority, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24170.pdf)


16e Toronto Transit Commission - 2008 Financial Statements
Summary

Consolidated Financial Statements and Audit Results for the Toronto Transit Commission for the year ended December 31, 2008.

Background Information (Committee)
Consolidated Financial Statements - Toronto Transit Commission, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24171.pdf)

Audit Results - Toronto Transit Commission, December 31, 2008
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24172.pdf)

Cover Report (May 28, 2009) to the Toronto Transit Commission submitting Financial Statements
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24173.pdf)

Cover Report (May 28, 2009) to the Toronto Transit Commission submitting Audit Results
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24174.pdf)

Letter (October 2, 2009) from the General Secretary, TTC, forwarding Financial Statements to the Audit Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24175.pdf)

Letter (October 2, 2009) from the General Secretary, TTC, forwarding Audit Results to the Audit Committee
(http://www.toronto.ca/legdocs/mmis/2009/au/bgrd/backgroundfile-24176.pdf)


Submitted Tuesday, October 20, 2009
Councillor Doug Holyday, Chair, Audit Committee