Corporate Affairs and Audit Committee (CAAC) Meeting - June 7, 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 April 19, 2013

Action: Approval

Pre-read: Minutes

Presenter: All

3. 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

4. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

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

Action: Information

Pre-read: CAAC:2013-25

Presenter: Chief Financial Officer and Manager, Special Projects

6. Chief Internal Auditor’s 2012 Annual Report

Action: Information

Pre-read: CAAC:2013-26

Presenter: Chief Internal Auditor

7. Internal Audit: 2013 Work Plans Status Update

Action: Information

Pre-read: CAAC:2013-27

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 April 19, 2013

Action: Approval

Pre-read: Minutes

Presenter: All

C. 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

D. Chair's Report and Remarks

Action: Information

Pre-read: -

Presenter: Chair

Reports from Management

E. Confidential item respecting recommendations of proposed policy or processes

Action: Information

Pre-read: CAAC:C2013-28

Presenter: Chief Financial Officer

F. Confidential item respecting but not limited to a proposed or pending transaction with a third party (WITHDRAWN)

Action: Approval

Pre-read: CAAC:C2013-29

Presenter: Vice President, Information and Technology Services

G. Confidential item respecting contracts and contract values

Action: Information

Pre-read: CAAC:C2013-30

Presenter: Director, Procurement

H. Confidential item respecting correspondence with City of Toronto staff

Action: Information

Pre-read: CAAC:C2013-31

Presenter: Chief Financial Officer and Senior Director, Finance

I. Confidential item respecting recommendations of proposed policy or processes

Action: Information

Pre-read: CAAC:C2013-32

Presenter: Chief Financial Officer and Manager, Special Projects

J. Confidential item respecting recommendations of proposed policy or processes (NEW ITEM)

Action: Approval

Pre-read: CAAC:C2013-34

Presenter: Chief Financial Officer

In Camera Agenda Items

Committee Only

Confidential item respecting confidential information related to identifiable individuals – Discussion

TERMINATION

Public Meeting Minutes

The Corporate Affairs and Audit Committee of Toronto Community Housing Corporation met on June 7, 2013, in the Main Floor Conference Room, 931 Yonge Street, commencing at 7:32 a.m.

Committee Directors present:

Zahir Bhaidani, Chair

Christian Buhagiar

Brian Kwan

Karen Newman

Councillor Frances Nunziata

Regrets:

None

Also present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary 

Jessica Claeys, Manager, Special Projects

Megan Filey, Project Coordinator

Jason Gorel, Chief Financial Officer

Michelle Haney-Kileeg, Vice President, Resident Services

Hugh Lawson, Director of Strategic Planning and Shareholder Relations

Janice Lewkoski, Board Secretary

Roman Mesec, Interim Vice President, Facilities Management

Michael Vear, Chief Internal Auditor

Bora Zekavica, Senior Director Finance

Siew Wong, Corporate Controller

The Chair called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

At 7:32 a.m., the Committee and the Chief Financial Officer met in camera. At 8:47 a.m., the public meeting resumed

Item 1 - Confirmation of Agenda

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Mr. Zahir Bhaidani, the Corporate Affairs and Audit Committee approved the agenda as presented.

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.

Item 2 - Confirmation of Public Minutes of April 19, 2013

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Mr. Brian Kwan, the Corporate Affairs and Audit Committee confirmed the minutes of April 19, 2013.

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

The Committee discussed the report, including the following matters:

• LawPro Insurance – page 1:
  • Discussion on whether the LawPro insurance is a benefit for the legal staff and part of the salary disclosure on the Sunshine List.
• Whistle Blower Policy – page 2:
  • Discussion on the Board’s and CAAC’s responsibilities with respect to the Whistle Blower Policy: management providing a certificate of compliance to the GRHRC with respect to whistle blower policy (according to the GRHRC’s Terms of Reference: GRHRC oversees the policies and processes by which management achieves and reports to the Board on corporate compliance) while the CAAC monitors and reports, as necessary, to the Board any referrals of financial whistleblower issues with recommendations for addressing the issues.
• Unit consolidation – page 4: not pursuing unit consolidation at this time:
  • The Committee requested clarification with respect to unit consolidation and not enough demand for bachelor units.
  • Management confirmed that while there is enough demand for all TCHC units, more effective marketing and communications are needed.
  • A report was presented recently to the City Council with respect to unit allocation using the choice-based letting system.
  • Discussion on whether bringing back senior residents in buildings designated as “seniors buildings” is part of the unit consolidation process. Management to report back to the Committee.

Motion carried

ON MOTION DULY MADE by Mr. Brian Kwan, seconded by Ms. Karen Newman, the Corporate Affairs and Audit Committee received the report for information.

Item 4 - Reports from the Committee Chair

None.

Item 5 - Implementation of Auditor General’s 2010 and 2011 Audit Recommendations: Status Report, CAAC:2013-25

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-25) from the President and Chief Executive Officer.

Motion carried

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

Item 6 - Chief Internal Auditor’s 2012 Annual Report, CAAC:2013-26

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-26) from the President and Chief Executive Officer.

The Committee discussed the following matters:

• Transparency and accountability:
  • Internal Audit Division will establish a section on the TCHC’s website within the Transparency and Accountability section.
• Whether the Internal Audit Division has the requisite knowledge to audit IT issues.
  • Subsequent to consultations between the Chief Internal Auditor and VP, Information Technology, it has been determined that hiring an IT internal auditor will be now premature. This matter will be revisited when the IT system has been upgraded.
• State of Internal Audit article by PWC:
  • TCHC’s current position versus the eight (8) points raised in the PWC article with respect to the Internal Audit Division.
• The Committee noted that some Operating Units (OUs) have more complaints than other properties and requested details and rationale with respect to the meaning of the data included in the report.
  • The Chief Internal Auditor confirmed that the data provided to the Committee is only for the Executive Leadership Team’s information at this time.
  • The Committee requested the Chief Internal Auditor to follow up with management and provide the Committee with update on the responses to the complaints and/or audit items raised in the Annual report.
• 823 (87.8%) of the complaints received in 2012 were related to tenants. The most numerous were about:
  • Unreported extra members in a TCHC unit (356 complaints).
  • Subletting a unit or room(s) within a unit (202 complaints). In some instances, property searches are performed and if the complaint is proven valid, the tenant loses their RGI status and their rent reverts to the market rent level, retroactively to the date the tenant misrepresented their financial status to TCHC.
    • The Committee noted that only $35,000 out of the total retro payments amount of $529,000 has actually been collected by TCHC and requested that the Chief Financial Officer report back to the Committee on ways of collecting the balance of the retro payments.
  • A tenant not reporting all or part of their income (148 complaints).
• In response to a question, the Chief Internal Auditor informed the Committee that the Internal Audit Division does complete follow up reviews of recommendations made in previous Internal Audit reports. The follow up reviews will be reported to the Committee.
• Though the Committee suggested quarterly statistical reports from the Chief Internal Auditor, it was decided that the Chief Internal Auditor will consult with the Committee Chair on the format and frequency of the statistical reports.

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Ms. Karen Newman, the Corporate Affairs and Audit Committee received the report for information.

Item 7 - Internal Audit: 2013 Work Plans Status Update, CAAC:2013-57

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-27) from the President and Chief Executive Officer.

The Chief Internal Auditor indicated that an internal mid-year review of the 2013 Work Plan status, vis-à-vis the items expected to be completed by the end of the year, will be undertaken in the near future.

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Ms. Karen Newman, the Corporate Affairs and Audit Committee received the report for information.

PUBLIC MEETING PROCEEDINGS

The Corporate Affairs and Audit Committee adjourned the public meeting at 9:20 a.m.

CLOSED MEETING PROCEEDINGS

Motion carried

ON MOTION DULY MADE by Mr. Christian Buhagiar, seconded by Ms. Karen Newman, the Corporate Affairs and Audit Committee resolved to meet in closed meeting at 9:20 a.m. to consider items A to E and G to J.

TERMINATION

The meeting of the Corporate Affairs and Audit Committee terminated at 1:00 p.m.