Corporate Affairs and Audit Committee (CAAC) Meeting - January 28, 2013

Public Agenda

1. Approval of Agenda and Review of Agenda Order

Action: Approval

Pre-read: Agenda

Presenter: All

2. Confirmation of Public Meeting Minutes of October 12, 2012

Action: Approval

Pre-read: Minutes

Presenter: All

3. Confirmation of Public Meeting Minutes of November 23, 2012

Action: Approval

Pre-read: Minutes

Presenter: All

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

Action: Discussion

Pre-read: Action Item List

Presenter: All

Reports from the Corporate Affairs and Audit Committee Chair

5. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

6. Implementation of Auditor General’s 2010 and 2011 Audit Recommendations: Status Report

Action: Information

Pre-read: CAAC:2013-01

Presenter: Chief Financial Officer

7. Internal Audit: 2013 Work Plan and Budget

Action: Approval

Pre-read: CAAC:2013-02

Presenter: Chief Internal Auditor

Closed Meeting Agenda

A. Approval of Agenda and Review of Agenda Order

Action: Approval

Pre-read: Agenda

Presenter: All

B. Confirmation of Closed Meeting Minutes of October 12, 2012

Action: Approval

Pre-read: Minutes

Presenter: All

C. Confirmation of Closed Meeting Minutes of November 23, 2012

Action: Approval

Pre-read: Minutes

Presenter: All

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

Action: Discussion

Pre-read: Action Item List

Presenter: Chief Financial Officer

Reports from the Corporate Affairs and Audit Committee Chair

E. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

F. Confidential item respecting recommendations of proposed policy or processes

Action: Information

Pre-read: Memo CAAC:C2013-03

Presenter: Chief Financial Officer

G. Confidential item respecting recommendations of proposed policy or processes

Action: Information

Pre-read: CAAC:C2013-04

Presenter: Chief Financial Officer

H. Confidential item respecting recommendations of proposed policy or processes

Action: Information

Pre-read: CAAC:C2013-05

Presenter: Chief Financial Officer

I. Confidential item respecting recommendations of proposed policy or processes

Action: Approval

Pre-read: CAAC:C2013-06

Presenter: Chief Financial Officer

In Camera Agenda Items

J. Confidential item respecting employment matters

Action: Information

Pre-read: CAAC:C2013-07

Presenter: Chief Internal Auditor

K. Committee Only

Action: -

Pre-read: -

Presenter: -

TERMINATION

Public Meeting Minutes

The Corporate Affairs and Audit Committee of Toronto Community Housing Corporation met in public session on January 28, 2013, in the Main Floor Conference Room, 931 Yonge Street, commencing at 12:28 p.m.

Committee Directors present:

Christian Buhagiar 

Brian Kwan

Regrets:

N/A

Additional Directors present:

Ms. Catherine Wilkinson

Also present:

Marta Asturi, Assistant Corporate Secretary and Legal Counsel 

Jason Gorel, Chief Financial Officer

Hugh Lawson, Director - Strategic Planning & Stakeholder Relations

Janice Lewkoski, Board Secretary

Roman Mesec, Senior Director, Procurement

Liz Reid, Senior Director, ITS

Michael Vear, Chief Internal Auditor

The Committee and the Chief Financial Officer met in camera at 12:10 p.m.

Mr. Christian Buhagiar, the Chair, called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

Confirmation of Agenda

The Corporate Affairs and Audit Committee unanimously approved the agenda as presented with the recommendation that items 2 and 3, with respect to the confirmation of the minutes, be discussed together.

Declaration of Conflict of Interest

The Chair requested members of the Corporate Affairs and Audit Committee to indicate any item on the public agenda in which they had a conflict of interest, together with the nature of the interest. None were declared.

Minutes - Confirmation of Corporate Affairs and Audit Committee Minutes - October 12, 2012 and November 23, 2012

The Committee had before it the draft Corporate Affairs and Audit Committee minutes for the October 12, 2012 and November 23, 2012 public meetings.

Motion carried

ON MOTION DULY MADE by Ms. Audrey Wubbenhorst, seconded by Ms. Karen Newman, the Building and Investment Committee received the above-captioned minutes.

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

Motion carried

The Corporate Affairs and Audit Committee confirmed the above-captioned minutes.

Item 6 - Implementation of Auditor General’s 2010 and 2011 Audit Recommendations: Status Report, CAAC:2013-01

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-1) from the President and Chief Executive Officer.  

A discussion ensued including the following highlights:

• Subsidiary Oversight.
  • The subsidiary component is in flux with the Shareholder Direction under review and to be amended by the Shareholder, which currently has yet to be finalized by the City as Shareholder.
  • The Committee recommended that the Chief Financial Officer work together with the Director of Strategic Planning and Stakeholder Relations and his team on the draft amendments to the Shareholder Direction with the City, to provide input on reporting requirements from the finance perspective.
• Time challenges as TCHC has three different purchase order systems, and working towards streamlining the purchasing system by combining the three existing purchasing systems into one integrated purchasing system.
  • Management confirmed that:
    • End of 2013 is the target date for completion.
    • Subsequent to the December 20, 2012 planning meeting between Management, Internal Audit team, and staff of the Auditor General’s Office, there is no new audit expected in the near future.
  • Moving forward, the Committee agreed with simplified reporting on incomplete items only (removal of completed items from future reports).

Motion carried

ON MOTION DULY MADE by Mr. Brian Kwan, seconded by Mr. Christian Buhagiar, the Corporate Affairs and Audit Committee unanimously received the report for information.

Item 7 - Internal Audit: 2013 Work Plan and Budget, CAAC:2013-02

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-2) from the Chief Internal Auditor.  

A discussion ensued including the following highlights:

• Maintaining an equitable balance between audit and investigations.
  • Numerous investigations are initiated by various departments and need to avoid getting overburdened with investigations versus important internal audit issues.
  • Maintaining an equitable balance between financial and human resources allocated to the Internal Audit Department.
  • Consultations are recommended between the Internal Audit team, General Counsel and Corporate Secretary, President and Chief Executive Officer, Human Resources and Chief Financial Officer to determine the enterprise’s view of investigations and whether:
    • the investigations should be done internally or outsourced.
    • more resources are required to be allocated to the Internal Audit Department.
• The Committee noted that 896 complaints received in 2012 is an overwhelming number and expressed their concerns that staff may not be able to keep up with such a trend (151% more complaints received in 2012 than in 2011). 161 files were closed in 2012, 346 are undergoing reviews and the balance of the files have not yet been addressed.
  • It was suggested that by changing the investigation model, management consider investigation as a tool to monitor the results and progress from divisions.

Deferred

The Corporate Affairs and Audit Committee unanimously deferred the report and requested that the report be brought forward at the next Committee meeting.

PUBLIC MEETING PROCEEDINGS

The Corporate Affairs and Audit Committee adjourned the public meeting at 12:58 p.m.

CLOSED MEETING PROCEEDINGS 

The Corporate Affairs and Audit Committee resolved to meet in closed meeting at 1:03 p.m. to consider items A to K.

TERMINATION

The meeting of the Corporate Affairs and Audit Committee terminated at 2:43 p.m.