Building Investment, Finance and Audit Committee (BIFAC) Meeting - February 5, 2015

Public Agenda

1. Chair’s Poll re: Conflict of Interest

Action: Declaration

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair

2. Approval of Agenda and Review of Agenda Order

Action: Committee Approval

Pre-read: Agenda

Presenter: Chair

3. Receipt of Public Meeting Minutes: CAAC- November 27, 2014 and BIC- December 1, 2014

Action: Receipt

Pre-read: Minutes

Presenter: Chair

4. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC)

Action: Discussion

Pre-read: Action Item List

Presenter: Chair

5. Reports from the BIFAC Chair: Chair’s Report and Remarks

Action: Information

Pre-read: Verbal Report

Presenter: Chair

6. Report from Management: 2015 BIFAC Work Plan

Action: Discussion

Pre-read: BIFAC:2015-01

Presenter: Interim President and Chief Executive Officer

Internal Audit, Accounting Systems and Internal Controls:

7. Internal Audit Report: Petty Cash Compliance Audit

Action: Information

Pre-read: BIFAC:2015-02

Presenter: Chief Internal Auditor

8. Internal Audit Report: Tenant and Employee Cash Advances Compliance Audit

Action: Information

Pre-read: BIFAC:2015-03

Presenter: Chief Internal Auditor

9. Commissioner of Housing Equity Report: Deferred

Action: Committee Approval

Pre-read: BIFAC:2015-04

Presenter: Commissioner of Housing Equity

10. External Audits: Implementation of Auditor General’s 2010 and 2011 Audit Recommendations Status Report

Action: Information

Pre-read: BIFAC:2015-05

Presenter: Chief Financial Officer & Treasurer

TERMINATION

Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on February 5, 2015, in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at  7:32 p.m

Committee Director in Attendance:

Jennifer Wood, Vice Chair

Karen Newman

Committee Directors Absent:

Zahir Bhaidani, Chair

Councillor Ana Bailao 

Other Directors Present: 

Norman (Bud) Purves, Board Chair

Catherine Wilkinson

Management Present: 

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Lenna Bradburn, Vice President, Resident and Community Services 

Jason Gorel, Chief Financial Officer and Treasurer

Graham Leah, Vice President, Asset Management

Sheila Penny, Vice President, Facilities Management

Ken Scott, Seior Director, Procurement

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

Pamela Spencer, General Counsel and Corporate Secretary/ Interim Vice President, Human Resources

Michael Vear, Chief Internal Auditor

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

Item 1 - Declaration of Conflict of Interest

The Vice 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.

Item 2 - Approval of Public Meeting Agenda

The BIFAC unanimously approved the agenda as presented. 

Item 3 - Receipt of Public Meeting Minutes

The BIFAC had before it the draft minutes from the following public meetings:

• November 27, 2014 Corporate Affairs and Audit Committee (CAAC).
• December 1, 2014 Building and Investment Committee (BIC).

Motion carried 

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Purves and carried, the BIFAC unanimously received the above-captioned minutes. 

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

The BIFAC had before it the above captioned report. 

A question was raised with respect to the status of the first item on the report related to the access to parking facilities within TCHC communities for outside companies at no cost. Management has considered leasing some parking spaces where applicable and is continuously assessing all possible opportunities for saving money or generating new revenues. Fruition is expected at the next meeting.

Motion carried 

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

Item 5 - Chair's Report and Remarks (Verbal)

No comments or remarks from the Vice Chair.

Item 6 - 2015 BIFAC Work Plan, BIFAC:2015-01

The BIFAC had before it the above-captioned report (BIFAC:2015-01) from the Interim President and Chief Executive Officer.  

A discussion ensued, including the following salient points:

• Fraud and internal controls: BIFAC requested Management add to the workplan Management’s assessment of fraud and risk. 

Motion carried

ON MOTION DULY MADE by Ms. Newman, seconded by Ms. Wood and carried, the BIFAC unanimously received the report as amended.

Items 7 and 8

Item 7 - Internal Audit Report: Petty Cash Compliance Audit, BIFAC:2015-03

Item 8 - Internal Audit Report: Tenant and Employee Cash Advances Compliance Audit, BIFAC:2015-02

The BIFAC had before it the above-captioned reports (BIFAC:2015-02 and BIFAC:2015-03) from the Chief Internal Auditor.  

A discussion ensued, including the following salient points:

• Both reports were discussed jointly.
• No significant internal control weaknesses were identified during the Petty Cash Compliance Audit. Seven recommendations have been made for improvement, starting with the review and updating of the TCHC Petty Cash Policy (last review was performed in December 2010 / January 2011).
• Many of the internal audits completed to date were initiated for compliance purposes with the Auditor General’s recommendations, such as the Tenant and Employee Cash Advances Compliance Audit. No recommendations were made with respect to Employee Cash Advances and two recommendations were made with respect to the Tenant Cash Advances, related to tenant cash advance application forms and the follow up process by TCHC staff.
• High priority was allocated to addressing the Auditor General’s Recommendations versus other matters that needed to undergo an internal audit process. 
• BIFAC recommended Management to prioritize the processes in need of an internal audit and develop a five-year cycle.
• A follow up process on the internal audit recommendations will be initiated next year to determine the status of implementation.

Motion carried 

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Wood and carried, the BIFAC unanimously received the above-captioned reports for information. 

Item 9 - OCHE – 2015 Work Plan, BIFAC:2015-04

The BIFAC had before it the above-captioned report (BIFAC:2015-04) from the Commissioner of Housing Equity.  

Deferred

The BIFAC deferred the report to the next meeting.

Item 10 - Implementation of Auditor General's 2010 and 2011 Audit Recommendations: Status Report, BIFAC:2015-05

The BIFAC had before it the above-captioned report (BIFAC:2015-05) from the Interim President and Chief Executive Officer.

A discussion ensued, including the following salient points:

• The former Auditor General delivered five reports to the TCHC Board of Directors (two reports at the March 3, 2011 meeting and three reports at the February 23, 2012 meeting) that contained 80 recommendations in total, with respect to TCHC Procurement, TCHC AP, TCHC Employee Expenses, TCHC Subsidiaries, and HSI Procurement.
• At the April 16, 2014 former CAAC meeting the former Auditor General’s review indicated that 18 out of the 80 recommendations contained in the five reports were outstanding.
• The newly appointed Auditor General will perform an assessment of the status of implementation of the 18 outstanding recommendations in the first quarter of 2015.
• Management’s opinion is that the 18 outstanding recommendations are fully implemented, subject to the Auditor General’s acceptance of a work plan with respect to the TCHC Subsidiaries.
• PWC has been engaged to conduct an assessment with respect to the level of completion of the 18 outstanding recommendations.
• Management confirmed that TCHC is neither on the Auditor General’s 2015 audit plan nor on an audit plan for the near future.
• Management’s intent is to establish a good relationship with the newly appointed Auditor General in a similar way as it was established with the former Auditor General.

Motion carried 

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

TERMINATION

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Purves and carried, the BIFAC resolved to terminate the public meeting at 7:55 p.m.