Corporate Affairs and Audit Committee (CAAC) Meeting - October 12, 2012

Public Agenda

In Camera - Committee Only

Chair’s Poll re: Conflict of Interest

Confirmation of Corporate Affairs Committee Public Minutes – July 27, 2012  and August 10, 2012

Approval of Agenda and Review of Agenda Order

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

For Information:

1 – Q2 2012 Quarterly Performance and Progress Reports

2 – Vacancy Management

3 – Financial Performance Report Q2 2012

4 – Access Housing Connections Inc. Q2 2012 Performance Report

5 – 2011 Annual Review – Access Housing Connections Inc.

6 – Review of Board, President and CEO and Senior Management Expenses Q2 2012

7 – Implementation of Auditor General 2010 Procurement and Employee Expense Recommendations: Status Report

8 – Implementation of Auditor General 2011 Audit Recommendations: Status Report

Closed Meeting Agenda

In Camera - Committee Only

Chair’s Poll re: Conflict of Interest

For Approval:

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

• July 27 and August 10, 2012

Business Arising from the In Camera 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 (Verbal Update)

(G) Confidential item respecting the business of the corporation (Verbal)

In Camera Agenda

(H) Internal Audit

(I) In Camera - Committee Only

Public Minutes

The Corporate Affairs and Audit Committee of Toronto Community Housing Corporation met on October 12, 2012, in the Main Floor Conference Room, 931 Yonge Street and via teleconference, commencing at 12:48 p.m.

Committee Directors present:

Christian Buhagiar

Brian Kwan – via teleconference

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.

Chuck Dowdall, Vice President, Operations (Interim)

Jason Gorel, Chief Financial Officer

Michelle Haney-Kileeg, General Manager

Eugene Jones Jr., President and Chief Executive Officer

Hugh Lawson, Director - Strategic Planning & Stakeholder Relations

Janice Lewkoski, Board Secretary

Michael Vear, Chief Internal Auditor

Bora Zekavica, Director, Budget & Financial Services

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 item on the public agenda in which they had a conflict of interest, together with the nature of the interest. Mr Brian Kwan, in his capacity as a director of Access Housing Connections Inc. (AHCI), declared a conflict of interest with respect to the agenda items related to AHCI, specifying that he has no financial interest in regards to the ACHI reports other than serving on its Board of Directors. The Committee agreed Mr. Brian Kwan may continue to be part of the dialog, but refrain from voting.

Confirmation of Agenda

The Corporate Affairs and Audit Committee unanimously approved the agenda as presented with the recommendation that items 4 and 5, with respect to Access Housing Connections Inc., and items 7 and 8, with respect to the Auditor General’s recommendations, be discussed together.

Minutes – Confirmation of Corporate Affairs and Audit Committee Minutes: July 27, 2012 and August 10, 2012

The Committee had before it the draft Corporate Affairs and Audit Committee minutes for the July 27, 2012 and August 10, 2012 public meetings.

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 and recommended they be forwarded to the Board of Directors for information.

Business Arising from the Public Minutes and Action Item List

There was a discussion with respect in the continued value of having quarterly reporting to the committee on the performance measures for Access Housing Connections Inc. (AHCI)and other similar subsidiaries versus ongoing reporting by the subsidiaries into TCHC Management. The Committee requested that management report back at a future meeting on this issue.

Item 1 – Q2 2012 Quarterly Performance and Progress Reports, CAAC:2012-60

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-60) from the President and Chief Executive Officer.

A discussion ensued and the Committee asked questions for clarification with respect to vacancy loss. The Committee reviewed with management the assumptions regarding non-rentable units and the rationale for not including in the vacancy loss calculations. The following was discussed:

• Not a feasible performance measure as beyond the control of staff.
• Finance unit will review the costs of refurbishment to make units more attractive. Vacancy loss will be reviewed in conjunction with the 2013 Operating Budget.
• Scattered homes are not included in the vacancy loss calculations.
• Target determination for vacancy loss will be reviewed by the Finance Unit.

Motion carried

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

Item 2 – Vacancy Mangement, CAAC:2012-61

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-61) from the President and Chief Executive Officer.

Management presented the report. A discussion ensued including the following highlights:

• $1 million decrease in vacancy loss is projected for 2012 versus 2011.
• Two bachelor units conversion into one bedroom unit is being analyzed.
• The internal transfer process in currently under review which has an effect on the rental process.
• The Rental Task Force has been tasked to assess the implementation of the virtual tours of the properties. There is no target date established for this project. Management had initial and ongoing discussions with the City of Toronto.

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 3 – Financial Performance Report Q2 2012, CAAC:2012-62

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-62) from the Chief Financial Officer.

The Committee noted that it was not provided with a forecast for the year end. Management advised that a forecast would be provided in the Q3 2012 Financial report.

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 4 – Access Housing Connections Inc. Q2 2012 Performance Report, CAAC:2012-63

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-63) from the President and Chief Executive Officer.

AHCI Management introduced the report and a discussion of the results ensued, including the following highlights:

• Moving forward with information technology upgrades that are not supported by the City of Toronto.
• Call centre responsiveness. A customer service survey will be sent to applicants at the end of the year.
• The Committee noted an overall decline in the quarterly performance in the second quarter of 2012 versus the first quarter of 2012.
• AHCI management analyzed the cost of placing people and determined that costing would not be an appropriate approach. Assessing eligibility and priority status would be a more appropriate way of addressing this matter. Considering the number of applications addressed would be a better indicator.
• Eligibility reviewed and letters sent within 30 days. AHCI Management will report back with respect to the timeframe of responsiveness if it takes more than 30 days to respond.
• Request for priority – terminally ill. The Committee noted that there was a decline in the percentage of assessments made in 14 days or less and respectively in 28 days or less, from Q4 2011 (90%, respectively 100%) to Q2 2012 (84%, respectively 85%). The Committee also noted that while the time doubled, the difference between the 14 day and 28 day periods is only 1% and asked for clarification on this matter.
  • AHCI management explained that is a typical issue as after 28 days the fraud application incidence increases.
  • AHCI staff will get feedback from the support workers from other agencies and will review the difference in percentages to report back.
• Length of vacancy. The Committee noted that while the service standard is to fill 50% of vacancies within 30 days, only 39% of units were rented in 30 days or less. The Committee and AHCI management discussed ways to improve the system to get people housed quicker.

Motion carried

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

Item 5 – 2011 Annual Review: Access Housing Connections Inc., CAAC:2012-64

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-64) from the President and Chief Executive Officer.

AHCI Management introduced the report, including the following highlights:

• 2011 AHCI Annual Review was presented at the AHCI’s Annual General Meeting held on October 3, 2012.
• Supply is not matching demand.
• The AHCI Board of Directors approved an information technology system that decreases the volume of paper.
• Examining the work flow process to address issues in 2012. Targets are under review to be changed.
• Working towards better performance and improving the system.

A discussion ensued.

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 6 – Review Of Board, President And Ceo And Senior Management Expenses Q2 2012, CAAC:2012-65

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2012-65) from the President and Chief Executive Officer.

The Committee discussed expenses of Board members that reflected membership fees. Questions were also raised regarding expenses of a former employee and the status of an employee currently on secondment to HSC.

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.

Items 7 – Implementation of Auditor General 2010 Procurement and Employee Expense Recommendations: Status Report, CAAC:2012-66

and

Item 8 – Implementation of Auditor General 2011 Audit Recommendations: Status Report, CAAC:2012-67

The Corporate Affairs and Audit Committee had before it the above-captioned reports (CAAC:2012-66 and CAAC:2012-67) from the President and Chief Executive Officer.

The following discussion ensued between the Committee and Management:

• The possibility of implementing all recommendations by the end of this fiscal year. Management would conduct best efforts to work towards all recommendations being completed by Q1 2013.
• The external auditor, PricewaterhouseCoopers, will provide assistance with implementing the changes.
• Management will provide an update to the Auditor General’s office with respect to the status of completion of his recommendations, and will report back to the Committee on its meeting with the Auditor General’s Office.
• The Auditor General’s follow up visit is expected in February or March 2013 to check the status of the implementation of his recommendations.

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.

Public Proceedings

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 2:21 p.m.