Building Investment, Finance and Audit Committee (BIFAC) Meeting - May 28, 2015

Agenda

Consent Public Agenda

The Consent Agenda items listed on the Consent Public Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting. The Committee Chair will ask for approval of the following Consent Agenda items. Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item. If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting. 

1. Approval of Agenda  

Action: Resolution to approve the agenda  

Pre-read: Agenda

2. Confirmation of Public Meeting Minutes:

• April 27, 2015 Resolution to confirm the public minutes    
  Minutes

Action: Resolution to confirm the public minutes

Pre-read: Minutes

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

Action: Resolution to receive for information    

Pre-read: Action Item List

Public Meeting Agenda Items

4. Chair’s Poll re:  Conflict of Interest    

Action: Declaration  

Pre-read: Agenda Conflict of Interest Policy  

Presenter: Chair

Report from the BIFAC Chair:

5. Chair’s Report and Remarks

Action: Information    

Pre-read: Verbal Report 

Presenter: Chair

6. External Audits: Auditor General's Report: Toronto Community Housing Corporation – Results of 2015 Follow-Up of Previous Audit Recommendations 

Action: Information

Pre-read: Auditor General’s Report

Presenter: Beverly Romeo-Beehler, Auditor General; Jerry Shaubel, Director, Auditor General’s Office

Building State of Repair and Environmental Sustainability:

7. Stand-Alone Properties Sales and Relocation Update

Action: Information

Pre-read: Verbal Report

Presenter: Interim President and CEO

Information Technology:

8. 2015 IT Strategy Update

Action: Information

Pre-read: BIFAC:2015-66

Presenter: VP, Information Technology Services

Consent Closed Agenda

The Consent Agenda items listed on the Consent Closed Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting. The Committee Chair will ask for approval of the following Consent Agenda items. Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item. If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting.

A. Approval of Agenda     

Recommendation: Resolution to approve the agenda

Pre-read: Agenda

B. Confirmation of Closed and In Camera BIFAC Meeting Minutes:

• April 16, 2015
• April 27, 2015     

Recommendation: Resolution to confirm the closed minutes

Pre-read: Minutes

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

Recommendation: Resolution to receive for information 

Pre-read: Action Item List

Financial Compliance:

D. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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    

Recommendation: Resolution to receive for information  

Pre-read: BIFAC:C2015-56

E. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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 

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-57

F. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-58

Capital Projects, Real Property and Building Revitalization:

G. Confidential report respecting matters involving the security of the property of the Corporation

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-59

H. Confidential report respecting matters involving the security of the property of the Corporation

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-63

I. Confidential reports respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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

Recommendation: Resolution to receive for information

Pre-read: BIFAC:C2015-51, BIFAC:C2015-52, BIFAC:C2015-53, BIFAC:C2015-54, BIFAC:C2015-55

Closed Meeting Agenda Items

J. Chair’s Poll re: Conflict of Interest

Action: Declaration 

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

K. Chair’s Report and Remarks    

Action: Information

Pre-read: Verbal Report

Presenter: Chair

Capital Projects, Real Property and Building Revitalization:

L. Confidential item from the Chief Development Officer

Action: Information  

Pre-read: Verbal Report

Presenter: Chief Development Officer

M. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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

Action: Committee Approval

Pre-read: BIFAC:C2015-60, BIFAC:C2015-61, BIFAC:C2015-62  

Presenter: Vice President, Facilities Management

N. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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

Action: Information

Pre-read: Report to follow

Presenter: Interim President and CEO

O. Confidential report respecting matters:

1. involving the security of the property of the Corporation; and
2. that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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    

Action: Information

Pre-read: BIFAC:C2015-64

Presenter: Interim President and CEO

P. This report deals with a proposed disposition of land by the Corporation

Action: Information 

Pre-read: BIFAC:C2015-65

Presenter: Interim President and CEO

Information Technology:

Q. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, 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

Action: Information

Pre-read: BIFAC:C2015-66

Presenter: VP, Information Technology Services

TERMINATION

Public Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on May 28, 2015, in the Main Floor Conference Room, 931 Yonge Street, Toronto, and by telephone conference commencing at 5:30 p.m.

Committee Directors Present:

Zahir Bhaidani, Chair

Karen Newman

Councillor Ana Bailão – (via teleconference from 6:00 p.m.)

Committee Directors Absent:

None

Other Directors in Attendance:

Catherine Wilkinson

Invitees: 

Auditor General’s Office Representatives:

Jerry Shaubel, Director

Patricia Lee, Senior Audit Manager

Also Present:  

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Jason Gorel, Chief Financial Officer & Treasurer

Liz Reid, Vice President, Information and Technology Services

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

Pamela Spencer, General Counsel and Corporate Secretary

Cynthia Summers, Commissioner of Housing Equity

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

Item 1 - Approval of the Consent Public Agenda

Motion carried 

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Bhaidani and carried, the BIFAC unanimously approved the public meeting agenda and the following consent public agenda items 1-3:

1. Approval of Agenda;
2. Confirmation of the April 27, 2015 Public Meeting Minutes; and
3. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC).

Declaration of Conflict of Interest (Item 4)

The 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 - Confirmation of Public Meeting Minutes

The BIFAC had before it the draft minutes from the April 27, 2015 public meeting.

The consent public agenda Item 2 “April 27, 2015 Public Meeting Minutes” was held for discussion and was addressed at the end of the public meeting.

For clarification purposes, the BIFAC discussed the 2015 OCHE Work Plan, which was recorded as Item 13 in the minutes. The BIFAC recommended that the Commissioner of Housing Equity (COHE) prioritize the 2015 Work Plan items based on the capacity of her office. If additional budget is needed, a formal submission should be provided to the Board of Directors for approval. The BIFAC noted that there was potential for an additional audit of the L1 files and recommended that any additional/ad-hoc audits be included in the 2015 OCHE Work Plan. The BIFAC agreed that the COHE will determine whether to proceed with an additional audit and in that case, the COHE will provide an action plan with respect to the approach taken.

Motion carried

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Bhaidani and carried, the BIFAC unanimously confirmed the April 27, 2015 minutes. 

Item 3 - Business Arising from the Minutes and Committee Action Items Update

The BIFAC had before it the above captioned report. 

Motion carried

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

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

No comments or remarks from the Chair.

Item 6 - Auditor General's Report: Toronto Community Housing Corporation – Results of 2015 Follow-up of Previous Audit Recommendations, Auditor General's Report as of April 15, 2015

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

Mr. Shaubel, Director with the Auditor General’s Office provided the BIFAC with a summary of the April 15, 2015 Auditor General’s report, including the following salient points:

• In 2011 and 2012, the City’s Auditor General issued five reports to the TCHC Board of Directors. Based on the findings by the Auditor General, a total of 80 recommendations were provided to TCHC.
• In 2014, the follow-up audit report determined that out of the original 80 recommendations, 59 recommendations had been implemented, 18 were outstanding and three were no longer applicable.
• The scope of the April 15, 2015 follow-up audit was to review the status of the implementation of the 18 outstanding recommendations.
• The April 15, 2015 review determined that TCHC has fully implemented 15 out of the 18 remaining recommendations while the implementation of the three remaining recommendations is in progress.
• In 2016, there will be a follow-up review by the Auditor General’s Office to determine whether the three remaining recommendations have been fully implemented.

Motion carried

ON MOTION DULY MADE by Ms. Newman, seconded by Mr. Bhaidani and carried, the BIFAC unanimously received the public report for information and resolved to forward the report to the Board of Directors for information.

Item 7 - Stand-alone Properties Sales and Relocation Update (Verbal)

The Interim President and Chief Executive Officer presented an update with respect to the status of the stand-alone properties sales and resident relocation process. He advised that no stand-alone homes have been sold recently. He further advised that a transition plan has been developed for the 21 affected families consistent with the Tenant Relocation Assistance and Implementation Plan approved by the City. A few consultation sessions have been held with the 21 resident families. The relocation process has been scheduled during the school summer break to provide a smoother transition. Ms. Wilkinson requested that the report be a standing report on the Board agenda and be posted on the Board Portal. Management confirmed that a written update will be provided for discussion and information at the next Board of Directors meeting.

Motion carried 

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

Item 8 - 2015 IT Strategy Update, BIFAC:2015-66

The BIFAC had before it the above-captioned report (BIFAC:2015-66) from the Interim President and Chief Executive Officer.

The Vice President, IT Services provided an overview of the IT Strategy and Status, and an update on progress, including the following main points:

• IT governance structure – TCHC is switching from a decentralized governance model in 2014 to a centralized governance framework that was approved by the Executive Leadership Team on February 17, 2015. The centralized model comprises three IT governance sub-committees (Operations, Corporate Service and ACHI Governance) that, while focusing on their specific business requirements, they link the tactical groups to the BIFAC for overall business priority alignment.
• IT Roadmap – the 2013 IT Strategy review concluded with the development of an updated IT Roadmap, comprising five elements. In 2014, the aging infrastructure was completely refreshed on time and under budget. 1,500 laptops and workstations were replaced while the MS Office / Exchange 2013 replaced the 2003 version of the old operating system. A Disaster Recovery Centre is being implemented in Barrie for the first time.
• IT staffing – from 46 full-time positions in 2013 to 53 full-time positions in 2015, while filling 14 full-time new positions needed to address the current functional gaps.
• There were no further findings related to the IT Services division subsequent to the 2013 Auditor General report.
• The BIFAC raised queries with respect to the internal controls for the Disaster Recovery Centre. Ms. Reid confirmed that there is a contract in place for outsourcing data recovery that includes the other party’s own internal controls.

Councillor Bailão joined the meeting by telephone at 6:00 p.m.

• The BIFAC enquired with respect to the status of the implementation of the KPMG IT Report’s recommendations, timelines, five-year forecast and optimum level for IT Services division.
• Management explained that the findings were related to information and data management aspects. The implementation of the 5-year IT Strategy will:
  • Address the gaps identified in the IT security system;
  • mprove the infrastructure by implementing a Disaster Recovery Plan;
  • Consolidate the existing IT applications;
  •  Integrate the Housing Management Systems (HMS) with the Call Centre and the Demand and Preventative Maintenance systems, to provide improved services to residents, reduce/eliminate data duplication and streamline processes
• The BIFAC raised queries with respect to the level of maturity of TCHC’s IT systems.  Ms. Reid advised that she would rate the maturity level at 4. In order to increase this rating, business engagement, financial resources and an integrated Housing Management System are needed.
• The discussion will continue in the closed session to address the confidential information attached to the public report.

Motion carried 

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

TERMINATION

ON MOTION DULY MADE by Mr. Bhaidani, seconded by Ms. Newman and carried, the BIFAC resolved to terminate the public meeting at 6:00 p.m.