Corporate Affairs and Audit Committee (CAAC) Meeting - July 27, 2012

Public Agenda

Chair’s Poll re: Conflict of Interest

Confirmation of Corporate Affairs Committee Public Minutes –  May 29, 2012

Approval of Agenda and Review of Agenda Order

Review of Agenda (all items not held will be voted together without discussion)

For Approval:

1 – Toronto Community Housing 2012 United Way Campaign

For Information:

2 – Access Housing Connections Inc. Q1 2012 Performance Report

3 – Implementation of Auditor General’s 2010 Procurement and Employee Expense Recommendations: Status Report

4 – Implementation of Auditor General’s 2011 Audit Recommendations: Status Report

5 – Internal Audit – Complaints Received Q212 (April 1, 2012 to June 30, 2012)

Closed Meeting Agenda

For Approval:

Chair’s Poll re: Conflict of Interest

(A) Confirmation of Corporate Affairs and Audit Committee Closed Meeting Minutes

• May 29, 2012 and June 11, 2012

Business Arising from the Closed Meeting Minutes and Action Item List

Approval of Agenda and Review of Agenda Order

Review of Agenda (all items not held will be voted together without discussion)

(B) Confidential item respecting the business of the corporation

(C) Confidential item respecting the business of the corporation 

For Information:

(D) Confidential item respecting the business of the corporation

(E) Confidential item respecting the business of the corporation

(F) Confidential item respecting the business of the corporation

(G) Confidential item respecting litigation matters

Public Minutes

The Corporate Affairs and Audit Committee of Toronto Community Housing Corporation met on July 27, 2012, in the Main Floor Conference Room, 931 Yonge Street, commencing at 9:28 a.m.

Committee Directors present:

Christian Buhagiar, Chair

Brian Kwan

Councillor John Parker

Regrets:

none

Additional Directors present:

Ms. Catherine Wilkinson

Also present:

Marta Asturi, Assistant Corporate Secretary and Legal Counsel

Paul Chisholm, General Manager, Access Housing Connections Inc.

Jason Gorel

Michelle Haney-Kileeg, General Manager

Ismail Ibrahim, Legal Counsel

Eugene Jones Jr., President and Chief Executive Officer

Hugh Lawson, Director - Strategic Planning & Stakeholder Relations

Roman Mesec, Senior Director of Strategic Procurement

Josie Scioli, Chief Executive Officer, Housing Services Inc.

Michael Vear, Chief Internal Auditor

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

Declaration of Conflict of Interest

The Chair requested members of the Corporate Affairs and Audit Committee to indicate any agenda item in which they had a conflict of interest, together with the nature of the interest. The Chair, Mr. Christian Buhagiar, and Mr. Brian Kwan, in their capacity as directors of Housing Services Inc. (HSI), declared a conflict of interest with respect to the agenda item related to HSI. The Committee agreed that Mr. Christian Buhagiar and Mr. Brian Kwan may continue to be part of the dialog, but refrain from voting, unless a quorum is required.

Confirmation of Agenda

Motion carried

ON MOTION DULY MADE by Councillor John Parker, seconded by Mr. Brian Kwan, the Corporate Affairs and Audit Committee unanimously approved the agenda as presented.

Minutes – Confirmation of Corporate Affairs and Audit Committee Minutes: May 29, 2012

The Committee had before it the draft Corporate Affairs and Audit Committee minutes for the May 29, 2012 public meeting.

Motion carried

ON MOTION DULY MADE by Councillor John Parker, seconded by Mr. Brian Kwan, the Corporate Affairs and Audit Committee confirmed the above-captioned minutes subject to the following amendments and recommended they be forwarded to the Board of Directors for information.

Page 4, Item 2 “2012 Operating Plan”: first paragraph from the bottom of the page, first sentence was amended as follows:

• • “The Committee Chair requested that the revenues from the sale of the houses be segregated from operating cash flows.”

Page 13, Item 11 “Internal Audit: 2012 Work Plan Status Update”: Second paragraph, second sentence, the word “management” replaced with “internal auditor”.

Item 1 – Toronto Community Housing 2012 United Way Campaign, CAAC:2012-48

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-48) from the President and Chief Executive Officer.

A discussion ensued, including the following highlights:

• The Committee recommended a cap amount of $65,000 to match employee contributions (same as in 2011).
• Last year’s contribution was directed to organizations and institutions supporting the Toronto Community Housing tenants. The same was recommended for the 2012 contribution.

Motion carried

ON MOTION DULY MADE by Councillor John Parker, seconded by Mr. Brian Kwan, the Corporate Affairs and Audit Committee adopted the report with the recommendation to match employee contributions to a cap of $65,000 and requested it be forwarded to the Board of Directors for approval. The Committee further recommended that funds be directed to Toronto Community Housing’s communities and programs.

Item 2 – Access Housing Connections Inc. Q1 2012 Performance Report, CAAC:2012-49

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-49) from the President and Chief Executive Officer.

AHCI Management introduced the report, including the following highlights:

• AHCI management will report to the September 2012 Committee meeting on systemic matters.
• Staff is working towards their targets.
• A significant improvement is expected by the end of 2012. • Dealing with increased work volume and demand for social housing.

There was a request for educating councillors and tenants on how AHCI process works. AHCI management will proceed as follows:

• Educating councillors and tenants with respect to the upcoming system changes.
• Councillors and their staff will be provided with information to better understand their constituents.
• Information sessions will be held at AHCI offices.
• Communications will be sent in advance to eliminate confusions and to present the reality as it is.

The AHCI Board of Directors asked for plans for performance improvement and to comply with the Board’s request, AHCI management is looking for changes in the system that will address performance measures.

The Committee noted that AHCI’s management retained a third party to assist in the review and assessment of performance, and report on how to achieve recommended targets. The third party looked at customer service to ensure its alignment with the legislated governance requirement.

The Committee requested clarification with respect to the Q1 2012 Performance Scorecard, Culture of Services and Continuous Improvement, in relation to the industry standard for call centre responsiveness versus AHCI’s responsiveness time of 6 minutes. AHCI management explained that while the average industry standard is 4 minutes, AHCI calls last longer due to the nature of enquiries. Management prefers to connect with people and explain why they are not eligible and to whom they should address to get the necessary assistance. E-mail response within 72 hours will be included in the customer service strategy in September (Q3 2012). AHCI management will re-think the work flow in order to achieve the desired improvement.

The Committee expressed its concerns with respect to attaining performance higher than 26% (as per the latest performance report) related to the Culture of Services and Continuous Improvement, and the target deadline when the performance indicators related to this matter will turn from red to green. AHCI management explained that the performance measures are expected to turn into green in Q4 2012. The Committee recommended that due to issues of staffing AHCI employees, any changes in performance reporting be postponed after the end of the current fiscal year. AHCI management will adjust the performance reporting in Q1 2013.

There were concerns raised with respect to calls and call centre: there is no control over the volume of calls received and the average duration of a call. AHCI management explained that a call lasts in average 20 minutes. The call centre staff shifts the conversations with applicants towards solution delivery model. Management is reviewing to assess whether the duration of calls can be completed in less than 20 minutes.

The Committee recommended a process change to achieve more efficient and effective results. It further recommended that the Chair of the AHCI Board of Directors be in attendance at the August 10, 2012 Committee meeting for an in depth discussion with respect to the AHCI performance activity.

Motion carried

ON MOTION DULY MADE by Mr. Brian Kwan, seconded by Councillor John Parker, the Corporate Affairs and Audit Committee received the report for information and recommended that the Chair of the AHCI Board of Directors be in attendance at the August 10, 2012 Committee meeting.

Item 3 – Implementation of Auditor General’s 2010 Procurement and Employee Expense Recommendations: Status Report, CAAC:2012-50

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-50) from the President and Chief Executive Officer.

Management introduced the report, including the following highlights:

• Some of the directives, subsequent to the Auditor General’s recommendations, are not yet fully implemented.
• Management is refreshing rosters of vendors for procurement that will completely replace the old rosters of vendors by the end of 2012.
• Management explained how the process is managed as follows:
  • The Risk and Compliance Workgroup has expanded to include legal risk assessment and for the time being, IT strategy implementation. It includes the most senior executives of the Corporation and it has been tasked to report back to the executive team on the procurement process.
  • The project manager reports back to the Workgroup on the status of initiatives, including staff members who are designated for each task, resources available and reporting timelines.
• The Committee expressed concerns with respect to the directives not being issued immediately, but sitting around for 15 months.
• Management explained that the directives were issued last year, but some directives will be subject to changes due to changes in the procurement policy. Other directives may remain unchanged, while there will be new directives issued as well.

The Committee recommended that staff ensure that all tasks are completed and adequately reported, so nothing gets lost. Management advised the Committee that the review of the procurement process, including the issuance of directives and the necessary staff training can be completed and reported upon at the November Committee meeting.

Motion carried

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

Item 4 – Implementation of Auditor General’s 2011 Audit Recommendations: Status Report, CAAC:2012-51

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-51) from the President and Chief Executive Officer.

Management introduced the report and the following discussed ensured:

• The Committee will review the subsidiaries’ governance framework. A management task force is underway to coordinate the subsidiary review and business case assessment, including the compilation of 2008-2010 financial statements.
• Completion of the TCHC fleet transfer from TCHC to the City’s Fleet Services is expected at the end of 2012 or possibly Q1 2013. A joint fleet report from the City Manager and TCHC is on the agenda of the October 2012 City’s Government Management Committee for approval of the fleet transfer. Staff from both parties will be contributing to the joint report.
• TCHC fleet inspection has been completed, revealing the need for a capital and replacement plan.

The Committee requested more information with respect to the completion of recommendation no. 8 from the TCHC’s Subsidiaries Report. Management explained that recommendation no. 8 will be completed by September 2012.

There were concerns expressed as to the format of the status table attached to the report. As this is a standing report to be reported at future Committee meetings, the Committee recommended that the colour legend be moved to the beginning of the report and that the updates are underlined or shown in tracked changes to illustrate items completed to date as last reported at a prior meeting.

Motion carried

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

Item 5 – Internal Audit: Complaints Received Q212 (April 1, 2012 to June 30, 2012, CAAC:2012-52

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-52) from the Chief Internal Auditor.

A discussion ensued, including the following main points:

• The Committee requested detail with respect to the number of leads to investigate and how many were resolved. The Chief Internal Auditor provided the information requested.
• The Chief Internal Auditor will talk to operations and technicians with respect to increasing the access to the Hotline through the Hotline Internet portal.
• The Committee agreed that is a good report, but it missed the scope: what is management going to do with the data presented? The President and CEO will discuss with the Chief Internal Auditor and his team to improve the way of reporting, providing meaningful data.
• The Committee requested clarification with respect to whistle blowing process and whether the Board of Directors gets involved when the whistle blowing occurs at the highest level of the management team. The Chief Internal Auditor explained that the scenario will likely become a legal matter and the General Counsel will report the matter to the Board of Directors.

The Committee recommended that the Chief Internal Auditor and his team provide the Committee with a report on the Board of Directors’ level of involvement in the whistle blowing process that relates to a senior employee or executive at a future meeting.

Motion carried

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

The Committee noted the great benefit brought to the entire TCHC Board of Directors through this Committee’s former Chair, Mr. Jason Gorel. On July 20, 2012 Mr. Jason Gorel resigned from the TCHC Board of Directors and accepted the Chief Financial Officer position with the TCHC. The Committee thanked Mr. Jason Gorel for his phenomenal leadership as the Chair of this Committee, wishing him well as the new Chief Financial Officer of TCHC.

Closed Meeting Proceedings

The Corporate Affairs and Audit Committee resolved to meet in closed meeting at 11:49 a.m. to consider items A to G.

Public Proceedings

At 12:35 p.m. the Committee Chair announced the resumption of the public proceedings and the public meeting reconvened at that time.

The Corporate Affairs and Audit Committee ratified the actions authorized during the closed meeting.

Termination

The meeting of the Corporate Affairs and Audit Committee terminated at 12:35 p.m.