Corporate Affairs and Audit Committee (CAAC) Meeting - September 30, 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 July 26, 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 Management

4. Q2 2013 Quarterly Performance Report

Action: Information

CAAC Terms of Reference: Financial Reporting

Pre-read: CAAC:2013-45

Presenter: Director, Strategic Planning & Stakeholder Relations

5. Q2 2013 Review of Board, CEO and Senior Management Expenses

Action: Information

CAAC Terms of Reference: Financial Compliance

Pre-read: CAAC:2013-46

Presenter: Legal Counsel and Assistant Corporate Secretary

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

Action: Information

CAAC Terms of Reference: Internal Audit, Accounting System & Controls

Pre-read: CAAC:2013-47

Presenter: Chief Financial Officer and Manager, Special Projects

7. Internal Audit: 2013 Work Plan Update

Action: Information

CAAC Terms of Reference: Internal Audit, Accounting System and Controls

Pre-read: CAAC:2013-48

Presenter: Chief Internal Auditor

8. Internal Audit – Complaints Received January 1, 2013 to June 30, 2013

Action: Information

CAAC Terms of Reference: Internal Audit, Accounting System and Controls

Pre-read: CAAC:2013-49

Presenter: Chief Internal Auditor

9. Internal Audit Report: Review of OMERS Employer Attestation Program

Action: Information

CAAC Terms of Reference: Internal Audit, Accounting System and Controls

Pre-read: CAAC:2013-50

Presenter: Chief Internal Auditor

TERMINATION

Public Meeting Minutes

The Corporate Affairs and Audit Committee of Toronto Community Housing Corporation held a public meeting on September 30, 2013, in the Main Floor Conference Room, 931 Yonge Street, Toronto and via teleconference, commencing at 1:57 p.m.

Committee Directors present:

Christian Buhagiar, Acting Chair

Brian Kwan (via teleconference)

Karen Newman

Councillor Frances Nunziata

Regrets:

Zahir Bhaidani, Chair

Also present:

Marta Asturi, Legal Counsel and Assistant Corporate Secretary

Jessica Claeys, Manager, Special Projects

Jason Gorel, Chief Financial Officer

Hugh Lawson, Director - Strategic Planning & Stakeholder Relations

Janice Lewkoski, Board Secretary

Michael Vear, Chief Internal Auditor

The Committee elected Mr. Chrisitan Buhagiar as Acting Chair of the meeting in the absence of the Committee Chair.

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

Item 1 – Approval of Agenda

Motion carried

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 July 26, 2013

Motion carried

ON MOTION DULY MADE by Mr. Brian Kwan, seconded by Mr. Christian Buhagiar, the Corporate Affairs and Audit Committee confirmed the minutes of July 26, 2013.

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

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 4 – Q2 2013 Quarterly Performance Report, CAAC:2013-45

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-45) from the President and Chief Executive Officer.

A discussion ensued, including the following highlights:

• The Committee noted that it is not valuable to discuss old and new performance measures in the same report, and recommended that management bring back a report when the new matrix of performance measures has been finalized that relate to the Strategic Plan approved by the Board at its June Board meeting. The Committee requested that, going forward, “Community Management Plan” be replaced with “Strategic Plan.”
• Management reported on arrears and vacancy loss.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 5 – Review of Board, President and CEO and Senior Management Expenses Q2 2013, CAAC:2013-46

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-46) from the President and Chief Executive Officer.

The Committee discussed the annual membership fees of senior management noted in the Q2 2013 expense report.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 6 – Implementation of Auditor General’s 2010 and 2011 Audit Recommendations: Status Report, CAAC:2013-47

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-47) from the President and Chief Executive Officer.

The Committee noted that management is diligently working on the implementation of the Auditor General’s recommendations for the 2013 year end, except for certain recommendations that will be implemented in 2014 due to time constraints and other factors.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 7 – Internal Audit Report: 2013 Work Plan Update, CAAC:2013-48

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-48) from the Chief Internal Auditor.

A discussion ensued, including the following highlights:

• Ombudsman’s review of human resources practices and the role of the Internal Audit team. An internal review has also been initiated by the President and CEO. The Chief Internal Auditor proposed its team’s review of human resources practices be deferred until the Ombudsman and the internal review have been completed.
• Audit Items not yet commenced due to resource allocation of the Internal Audit team on other ongoing items:
  • Internal control recommendations from the January 7, 2010 RSM Richter report.
  • Random review of employee expense claims.
  • Fleet management – follow up review.
  • Mileage – follow up review.

Mr. Brian Kwan left the meeting at 2:10 p.m.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 8 – Internal Audit – Complaints Received January 1, 2013 to June 30, 2013, CAAC:2013-49

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-49) from the Chief Internal Auditor.

A discussion ensued, including the following highlights:

• The Committee raised the following issues and requested management to report back in its subsequent report on complaints received:
  • Data if available, with respect to whether the residents are confused due to the use of the system.
  • Whether there is any consistency around the operating units regarding a pattern for more or less complaints per capita.
  • What management does with this information? It is the Chief Internal Auditor role to determine how management should use this type of information.
• There is a FAQ subsection under the Hot Line section on the TCHC’s external website to which residents may refer to gather more detail with respect to their complaints.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

Item 9 – Internal Audit Report: Review of OMERS Employer Attestation Program, CAAC:2013-50

The Corporate Affairs and Audit Committee had before it the above-captioned report (CAAC:2013-50) from the Chief Internal Auditor.

A discussion ensued, including the following highlights:

• The Committee noted that the review of OMERS Employer Attestation Program is a report required for compliance reporting purposes to OMERS.
• Customer service relationship considerations:
  • Internal audit reported promptly on this matter and how the human resources improved by completing an annual declaration.

Motion carried

The Corporate Affairs and Audit Committee received the report for information.

TERMINATION

ON MOTION DULY MADE by Ms. Karen Newman, seconded by Councillor Frances Nunziata, the public meeting of the Corporate Affairs and Audit Committee terminated at 2:20 p.m.