Audit Committee
The full agenda, as filed
All 13 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
AU10.1adopted
Auditor General's 2021 Consolidated Status Report on Outstanding Recommendations
This consolidated status report summarizes the 2021 recommendation follow-up results for all City divisions, the City Manager's Office, agencies and corporations, and recommendations issued by the Auditor General's Forensic Unit. During 2021, we verified 177 recommendations. Since inception, the Auditor General has verified 81 per cent of recommendations as fully implemented or no longer relevant. We performed a significant amount of follow-up work on verifying high priority recommendations implemented by City Divisions in our last follow-up cycle. The results of our review were reported to Audit Committee at its meeting on July 7, 2021 and later to Council on July 14-16, 2021. The July 2021 status report on outstanding recommendations is available at: http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2021.AU9.6 Separate Follow-Up Report on Cybersecurity Recommendations Given the critical nature of recommendations from the report entitled: "Cyber Safety - Critical Infrastructure Systems: Toronto Water SCADA System" we also dedicated resources to verify implementation of the recommendations in that report. The results of that follow-up are being separately reported to the November 2, 2021 Audit Committee and are not included in the results of this report due to the timing of the work performed. November 2021 Consolidated Status Report on Outstanding Recommendations This report provides an update on our follow-up results since our last report to Audit Committee. Specifically we are reporting on: - Results of recommendations verified at major agencies and corporations (Toronto Transit Commission and Toronto Community Housing Corporation); - Management's actions to implement our recommendations, as of October 1, 2021; and - High priority recommendations that management still needs to implement, as of October 1, 2021. Results of recommendations verified at major agencies and corporations In this round of follow-up, we focused on verifying the status of high priority recommendations management reported as fully implemented at the City's major agencies and corporations. Specifically, at Toronto Transit Commission (TTC) and Toronto Community Housing Corporation (TCHC). Table 1 - Consolidated Results of the Auditor General's 2021 Recommendation Follow-Up at Major Agencies and Corporations Status of Recommendations Verified by the Auditor General** Status of Open Recommendations as Reported by Management as of October 1, 2021 Agencies and Corporations FI* N/A* NFI* Total FI (not verified by AGO) N/A NFI Total Toronto Transit Commission 39 2 5 46 35 1 80 116 TCHC 11 1 2 14 3 0 8 11 Total 50 3 7 60 38 1 88 127 *FI = Fully implemented, N/A = No longer relevant, NFI = Not fully implemented **Status of recommendations verified for TTC as of March 2021; status of recommendations verified for TCHC as of June 2021 Management's actions to implement our recommendations (as at October 1, 2021, not yet verified) As at October 1, 2021, there were 209 recommendations (including 86 high priority) reported by management as fully implemented or no longer relevant. These recommendations (for City divisions, agencies and corporations, and recommendations from fraud and waste investigations) still need to be verified by the Auditor General. This highlights that management is taking action to address our recommendations, according to their assessment. High priority recommendations that management needs to implement, as of October 1, 2021 Of the 451 not fully implemented recommendations issued to City divisions and agencies and corporations, 202 are considered high priority. Management's actions to implement these high priority recommendations are included in Attachment 2, Attachment 5 or Confidential Attachment 1.
The Audit Committee recommends that: 1. City Council direct that Confidential Attachment 1 to the report (October 20, 2021) from the Auditor General remain confidential in its entirety, as it pertains to the security of property belonging to the City of Toronto or local boards, personal matters about identifiable individuals, including City of Toronto employees, litigation or potential litigation affecting the City of Toronto or a local board and describes criteria to be applied to negotiations that will be carried on by, or on behalf of, the City of Toronto, including information regarding the criteria that should be applied when negotiating and preparing contracts.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it involves the security of property belonging to the City or local boards, personal matters about identifiable individuals, including City employees, litigation or potential litigation affecting the City or a local board, or describes criteria to be applied to negotiations that will be carried on by or on behalf of the City of Toronto, including information regarding the criteria that should be applied when negotiating and preparing contracts.
AU10.2adopted
Auditor General's Office 2022 Operating Budget
The attached report provides information supporting the Auditor General's 2022 Operating Budget request of $7.658 million. This includes $675,000 to restore the Auditor General's budget to pre-pandemic (2020) levels and an additional $325,000 in temporary funding for a pandemic related audit requested by City Management. The Auditor General's budget request reflects funding needed to help address some of the following: - responding to an expanded mandate and inflow of requests for audits; - providing valuable independent oversight of critical systems to ensure the City is well-positioned to detect, mitigate, and respond to IT and cybersecurity risks; - conducting investigations on serious, time-sensitive issues; and - undertaking the City-wide COVID-19 Continuous Improvement Audit. In light of funding issues brought on by the pandemic, the Auditor General worked on delivering a larger mandate within a reduced 2021 budget. While she and her dedicated staff accomplished important work on this expanded mandate in 2021, some of that work carries on and more issues are being identified, so support is needed to meet critical emerging issues, in addition to working on projects in this expanded mandate. The Auditor General is requesting a return to her 2020 budget level by adding back $675,000 to her budget. The Auditor General is also considering an audit that stems from a special request from the City Manager, the Fire Chief and General Manager of Emergency Management and COVID-19 Incident Commander, and the Medical Officer of Health. They have requested an audit of how the City performed during the pandemic, with a goal of also identifying how to be better prepared in the future. Should City Council support this request, the Auditor General would need additional temporary funding of $325,000 to conduct this work. This amount is already included in the Auditor General's 2022 budget request. The Auditor General's Office provides City Council with an independent assessment of the safeguarding of public funds and whether the City is achieving value for money in operations by conducting performance, cybersecurity, financial, operational and compliance audits and reviews, and forensic investigations of City divisions and certain City agencies and corporations. As reported in her past Annual Reports, the Auditor General continues to demonstrate her value to City Council through the net positive return on quantifiable and non-quantifiable benefits to the City. The Auditor General's 2022 Work Plan is being presented to the Audit Committee at the same meeting as her 2022 Operating Budget. The 2022 budget request supports 11 in-progress and ongoing projects that will be completed in 2022, and five new projects to commence in late 2021 or 2022. City Council's support to restore the Auditor General's budget to pre-pandemic (2020) levels and provide additional temporary funding for an audit of the City's COVID-19 response, helps to address the 2022 Work Plan, including the requested audit of the City's COVID-19 response, as well as commence projects in the following areas: - cybersecurity assessment of a critical system - possibly the 911 system; - Information Technology - Enterprise Work Management System; and - additional investigations related to allegations of fraud or other wrongdoing.
The Audit Committee recommends to the Budget Committee that: 1. City Council approve the 2022 Operating Budget for the Auditor General's Office in the amount of $7.658 million gross and net, as outlined in Attachment 1 to the report (October 19, 2021) from the Auditor General. 2. City Council approve the 2022 staff complement for the Auditor General's Office of 44.0 positions, as outlined in Attachment 1 to the report (October 19, 2021) from the Auditor General.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council approve the 2022 Operating Budget for the Auditor General's Office in the amount of $7.658 million gross and net, as outlined in Attachment 1 to this report. 2. City Council approve the 2022 staff complement for the Auditor General's Office of 44.0 positions, as outlined in Attachment 1 to this report. 3. The Audit Committee direct that this report be forwarded to the Budget Committee for consideration during the 2022 Budget process.
AU10.3amended
Auditor General's Office 2022 Work Plan
The purpose of this report is to provide City Council with an overview of the work the Auditor General plans to conduct in 2022. Audit projects included in the Annual Work Plan are identified through a risk assessment process conducted periodically, a review of emerging issues, and an analysis of trends in allegations made to the Fraud and Waste Hotline. The Auditor General also considers the views and experience of City Councillors and City management. The Auditor General may amend the Annual Work Plan if new priorities arise. The Auditor General's 2022 Budget Request is being presented to the Audit Committee at the same meeting as this 2022 Work Plan. The Auditor General is asking for Council's continued support by restoring her office budget to pre-pandemic levels to help address critical emerging issues and an expanded mandate. The Auditor General's budget request reflects funding needed to help address the following: 1. Responding to an expanded mandate and inflow of requests for audits; 2. Providing valuable independent oversight of critical systems to ensure the City is well-positioned to detect, mitigate, and respond to IT and cybersecurity risks; 3. Conducting investigations on serious, time-sensitive issues; and 4. Undertaking the City-wide COVID-19 Continuous Improvement Audit. In light of audit requests from the Toronto Police Services and Toronto Public Library Boards, both of which are restricted boards, an influx of City Council requests for specific audits, and the need to address emerging risks including cyber security, the Auditor General must prioritize the projects she can carry out now (Table 1), versus those that need to be delayed into future years. Projects that can only be considered if additional budget funding is received are included in Table 2. The Auditor General has explained the implications of these additional demands through her 2022 Operating Budget, which is also being tabled at the same Audit Committee. Both reports should be considered together. Where Council requests an audit, the Auditor General considers potential risks to the City before deciding whether it can be prioritized over another project on her Work Plan. However, completing requests in a timely manner is not always feasible with her limited staff resources, so work is prioritized. The Auditor General was able to incorporate some important City Council requests into her 2022 Work Plan, including: cybersecurity critical system reviews, Toronto Police audits and an audit of affordable rental replacement units. The Work Plan includes projects that have been identified through the risk and opportunities assessment. The projects are organized as follows: - projects currently in progress or soon to be initiated (Table 1); - projects that can be added to our 2022 Work Plan if Council approves our budget request to restore to 2020 budget level (Table 2); - projects on the horizon for 2022-2023 (Table 3); and - backlog list of projects that we would like to complete over the longer term (Attachment 3).
The Audit Committee recommends that: 1. City Council receive the Auditor General's 2022 Work Plan, as outlined in the report (October 19, 2021) from the Auditor General, for information. 2. City Council request the Auditor General to consider adding an assessment of Toronto Hydro cybersecurity or any other operating technology in any City division, agency or corporation to the Auditor General's 2022 Work Plan.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the Auditor General's 2022 Work Plan for information.
AU10.4amended
Auditor General's Cybersecurity Review: Toronto Fire Services Critical Systems Review
Cyberattacks are widely considered to be one of the most critical operational risks facing organizations. This Phase 1 report includes the results of a review of critical systems in Toronto Fire Services (TFS). This report contains two administrative recommendations. The confidential findings and recommendations from our review are contained in Confidential Attachment 1.
The Audit Committee recommends that: 1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (October 25, 2021) from the Auditor General. 2. City Council request the Fire Chief and General Manager - Emergency Management, Toronto Fire Services to report to the Audit Committee by the end of the first quarter of 2022 with an update on the implementation status of the Auditor General's recommendations in Confidential Attachment 1 to the report (October 25, 2021) from the Auditor General. 3. City Council request the City Manager to report to the next meeting of the Audit Committee on the ongoing governance structure that will be in place to effectively identify, plan for and mitigate cybersecurity risks across the City of Toronto, including all City divisions, agencies and corporations, and the governance framework to ensure that City divisions, agencies and corporations are effectively managing their cybersecurity risks and responding as new risks arise. 4. City Council direct that Confidential Attachment 1 to the report (October 25, 2021) from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate City Officials. 5. City Council direct that the confidential presentation (November 2, 2021) from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate City Officials. 6. City Council direct that the confidential presentation (November 2, 2021) from the Fire Chief and General Manager - Emergency Services, Toronto Fire Services remain confidential in its entirely, as it pertains to the security of the property of the City of Toronto or one of its agencies and corporations.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to this report from the Auditor General. 2. City Council direct that Confidential Attachment 1 to this report from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate City Officials.
AU10.5amended
In 2019, the Auditor General became aware of attacks on critical water systems in the U.S. and other jurisdictions. In addition, there were a number of alerts issued by the U.S. Department of Homeland Security (DHS), the U.S. Federal Bureau of Investigation (FBI), the Canadian Centre for Cyber Security, and other agencies. These alerts included attacks and ransomware campaigns by foreign states, including an alert in March 2018 from the DHS and the FBI about a multi-stage intrusion campaign by Russian government cyber actors who targeted small commercial facilities' networks. The attackers staged malware, conducted spear phishing, and gained remote access into energy sector networks. After obtaining access, the cyber actors conducted network reconnaissance, moved laterally, and collected information pertaining to Industrial Control Systems (ICS). The Auditor General became particularly concerned when she learned of a threat published by the U.S. Attorney General Cyber Digital Task Force describing that: "Iranian hackers… gained access to the Supervisory Control and Data Acquisition ("SCADA") system of a dam in New York, allowing him to obtain information regarding the dam's status and operation. Had the system not been under maintenance at the time, the hacker would have been able to control the dam's sluice gate." The Auditor General's concern was that if hackers could gain access and remotely move the doors on a dam, they could possibly also do other damage like manipulating chemicals in a water system. After considering the increased risks, the increased number of alerts and the importance of cybersecurity at our own critical systems, the Auditor General fast-tracked an audit of the Toronto Water SCADA network in November 2019. The Auditor General had just completed a cybersecurity assessment of the City's overall IT infrastructure. The audit of Toronto Water's SCADA system was the Office's first audit of the City's critical infrastructure Operational Technology (OT) systems. The objectives of the audit were to assess the adequacy of controls in place to address potential threats to the SCADA network, systems and applications. The results were tabled at the February 10, 2020 Audit Committee through a confidential report. Following the initial audit, there were increased attacks on water facilities and other critical infrastructure systems. Those attacks are becoming more sophisticated and focused. Recent Cybersecurity Incidents on Water Facilities/SCADA Systems: 1. Compromise of U.S. Water Treatment Facility An alert from the U.S. Cybersecurity and Infrastructure Security Agency warned water system operators that there was a remote attack where the attacker tried to change the chemicals in the water supply. According to the Agency: "On February 5, 2021, unidentified cyber actors obtained unauthorized access to the supervisory control and data acquisition (SCADA) system at a U.S. drinking water treatment facility. The unidentified actors used the SCADA system's software to increase the amount of sodium hydroxide, also known as lye, a caustic chemical, as part of the water treatment process. Water treatment plant personnel immediately noticed the change in dosing amounts and corrected the issue before the SCADA system's software detected the manipulation and alarmed due to the unauthorized change… The cyber actors likely accessed the system by exploiting cybersecurity weaknesses, including poor password security, and an outdated operating system. Early information indicates it is possible that a desktop sharing software, such as TeamViewer, may have been used to gain unauthorized access to the system, although this cannot be confirmed…" 2. Ransomware Attack on SCADA Systems at Three Water Facilities in U.S. The October 14, 2021, alert from the above-referenced U.S. government agencies describes recent ransomware attacks that impacted industrial control systems (ICS) at water facilities: - In the first incident, cybercriminals used unknown ransomware to target a water facility in Nevada in March 2021. The malware affected SCADA and backup systems. - In the second incident, hackers deployed the ZuCaNo ransomware, which made its way onto a wastewater SCADA computer in Maine in July 2021. The treatment system was run manually until the SCADA computer was restored using local control and more frequent operator rounds. - In the third incident, threat actors deployed a piece of ransomware named Ghost on the systems of a water plant in California in August 2021. The ransomware was discovered roughly a month after the initial breach, after the organization noticed three SCADA servers displaying a ransomware message. Following up on Toronto Water's progress The Auditor General regularly reviews the implementation status of recommendations and reports the results to City Council through the Audit Committee. This follow-up review assessed Toronto Water's progress towards addressing issues and recommendations raised in the February 2020 report so that the SCADA network, systems and applications remain protected. To verify the implementation of audit recommendations, we undertook significant work to re-test the physical security at selected water facilities, network security and user access management of the SCADA network, systems and applications to identify any remaining gaps. Testing Results - Progress made by Toronto Water The initial audit was timely, and based on our testing, we found that Toronto Water has implemented many recommendations and made substantial progress in many areas. The following are some key areas where the Auditor General found significant progress: - Physical security at water facilities and IT equipment; - Implementation of technical fixes related to cybersecurity; - Discontinuation of outdated systems and devices; and - Staff training and awareness. The results of the testing will be provided to City Council through the Audit Committee in a separate confidential report. Of note, we noticed a culture shift at Toronto Water in the level of awareness and importance of staying vigilant for cybersecurity risks. Going forward, however, cybersecurity risks will continue to evolve and change. Toronto Water needs to finish implementing the recommendations and directly monitor for and address any new security risks.
The Audit Committee recommends that: 1. City Council direct that the confidential presentation (November 2, 2021) from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate City Officials.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive this report for information.
AU10.6adopted
Status of Audit Recommendations for Children's Services
At its meeting of July 7, 2021, the Audit Committee directed staff to report back on the status of outstanding recommendations from the Auditor General's reports that relate to Children's Services. This report responds to this request and presents an overview of actions that Children's Services has undertaken and will continue to take to fully implement all of the Auditor General's recommendations. The outstanding recommendations related to Children's Services are contained in the Auditor General's report: "Children's Services Division: Opportunities to Achieve Greater Value for Child Care from Public Funds".
The Audit Committee: 1. Received the report (October 19, 2021) from the General Manager, Children's Services for information.
Staff recommendation as filed
The General Manager, Children's Services recommends that: 1. The Audit Committee receive this report for information.
AU10.7adopted
The purpose of this report is to provide an update to the Audit Committee on Fleet Services' recommendations on a fully integrated, enterprise-wide telematics solution and implementation plan for City of Toronto and contracted vehicles. During its meeting on April 7 and 8, 2021, City Council adopted the Audit Committee's recommendation in Item AU8.11, Audit of Winter Road Maintenance Contracts - Fleet Services Division's Update, requesting the General Manager, Fleet Services to report to the Audit Committee in the fourth quarter of the same year with recommendations on a fully integrated, enterprise-wide telematics solution and implementation plan for City of Toronto and contracted vehicles.
The Audit Committee: 1. Received the report (October 19, 2021) from the General Manager, Fleet Services for information.
Staff recommendation as filed
The General Manager, Fleet Services recommends that: 1. The Audit Committee receive this report for information.
AU10.8amended
Status of Audit Recommendations for the Technology Services Division
This report is pursuant to an Audit Committee motion on Item AU9.6, "Auditor General's Status Report on Outstanding Recommendations", at its meeting on July 7, 2021. At this meeting, the Audit Committee directed the Chief Technology Officer to report to the November 2, 2021 meeting of the Audit Committee with an update on the status of completed and uncompleted recommendations and explanations for why recommendations have not been completed. In 2020, the Auditor General's Office (AGO) introduced an online audit management system, which allows Divisional management to view the audit recommendations assigned to their Divisions. Audit Management System includes all recommendations that are not fully implemented by the Division. Audit recommendations, closed as fully implemented prior to introduction of Audit Management System, are not part of Audit Management System. Technology Services Division (TSD) has been assigned 87 recommendations in Audit Management System. These audit recommendations include recommendations directly assigned to TSD as well as those that are assigned to other Divisions with TSD in a supporting role. Table 1 below provides a summary of all the audit recommendations assigned to TSD in Audit Management System. Table 1 - Number of Audit Recommendations Based on the Assigned Division as of October 1, 2021 Audit Recommendations assigned to TSD (as part of TSD Audit Reports) 73 Audit Recommendations supported by TSD (as part of Other Divisions'* Audit Reports) 14 Total Audit Recommendations for TSD in Audit Management System 87 *Other Divisions include PMMD, People and Equity, Toronto Water, Financial Planning Division, Toronto Court Services, SSHA, and Toronto Transit Commission. This report focuses on a status update and analysis of 73 audit recommendations assigned to TSD as part of TSD Audit Reports. Details of the 14 audit recommendations where TSD is in a supporting role are provided in Confidential Attachment 2. Audit recommendations assigned solely to Office of Chief Information Security Officer are not included in this report, as they are not assigned to TSD in Audit Management System.
The Audit Committee recommends that: 1. City Council request the City Manager to report to the Audit Committee in the second quarter of 2022 with information from each City of Toronto division, agency and corporation on their IT Disaster Recovery Plan should the City's systems, technology, communications or backups be made unavailable. 2. City Council request the Chief Technology Officer to report to the Audit Committee in the second quarter of 2022 on the status of the City of Toronto's Corporate Technology Services Disaster Recovery Plan, including implementation, testing and a full project plan for any outstanding work. 3. City Council direct that Confidential Attachments 1 and 2 to the report (October 19, 2021) from the Chief Technology Officer remain confidential in their entirety, as they pertain to the security of the property of the City of Toronto.
Staff recommendation as filed
The Chief Technology Officer recommends that: 1. City Council direct that Confidential Attachments 1 and 2 remain confidential in their entirety, as they involve the security of the property of the City of Toronto.
AU10.9adopted
Status of Implementation of Recommendations - Ted Reeve Community Arena
This report transmits materials submitted by the Ted Reeve Community Arena Board of Management to the City. These materials provide an update on the status of recommendations in the report from Welch LLP to the Board of Management of Ted Reeve Community Arena resulting from the audit of December 31, 2019 financial statements. No independent review or analysis has been performed by City staff.
The Audit Committee: 1. Received the report (October 19, 2021) from the City Manager for information.
Staff recommendation as filed
The City Manager recommends that: 1. The Audit Committee receive this report for information.
AU10.10amended
The purpose of this report is to provide the Audit Committee and City Council with the 2020 audited financial statements of McCormick Playground Arena and the status of 2020 audited financial statements for Arenas. The 2020 audited financial statements for the eight City Arenas are presented to the Audit Committee after approval by their respective Boards or Committees of Management. At the time of preparation of this report, the 2020 audit for one Arena had been completed. Of the remaining seven Arenas, the audits of four are in progress, two have not yet started and one is completed but pending approval. Depending on when the remaining audits are completed, the Independent Auditor's Reports, accompanying financial statements and management control letters (if applicable) will be presented at a subsequent meeting of the Audit Committee.
The Audit Committee recommends that: 1. City Council direct the City of Toronto's Arena Boards of Management to submit their outstanding Audited Annual Financial Statements to the City of Toronto, through the Auditor General, no later than December 15, 2021, or where this is not possible, to send a letter to the Audit Committee by December 15, 2021 on the status of their Audited Annual Financial Statements, the reason(s) for the delay and the date they will be submitted. 2. City Council request the City Manager to report back to City Council, through the Audit Committee, in the first quarter of 2022 on any instances of non-compliance with Recommendation 1 above and remedies and recommendations to be considered by City Council. 3. City Council direct that, effective in 2022, the City of Toronto's Arena Boards of Management submit their Audited Annual Financial Statements and related documents directly to the Audit Committee through the City Clerk. 4. City Council receive the 2020 Audited Financial Statements for McCormick Playground Arena in Attachment 1 to the report (October 18, 2021) from the Auditor General for information.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2020 audited financial statements of McCormick Playground Arena for information attached to this report.
AU10.11adopted
The purpose of this report is to provide the Audit Committee and City Council with the 2020 audited financial statements of Swansea Town Hall Community Centre and the status of 2020 audited financial statements for Community Centres. The 2020 audited financial statements for the 10 Community Centres are presented to Audit Committee after approval by their respective Boards of Management. Of the 10 City Community Centres, the audited financial statements for eight Community Centres were previously presented at the July 2021 Audit Committee. This report presents the Independent Auditor's Report, accompanying financial statements and management letter for one additional Community Centre. Depending on when the last remaining audit is completed, the Independent Auditor's Reports, accompanying financial statements and management control letters (if applicable) of that Community Centre will be presented at a subsequent meeting of the Audit Committee.
The Audit Committee recommends that: 1. City Council receive the 2020 Audited Financial Statements and Management Letter for Swansea Town Hall Community Centre in Attachment 1 to the report (October 18, 2021) from the Auditor General for information.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2020 audited financial statements and management letter of Swansea Town Hall Community Centre for information attached to this report.
AU10.12adopted
Consolidated Entities - 2020 Audited Financial Statements
The purpose of this report is to present the City of Toronto's (City) Business Improvement Areas' (BIAs) audited financial statements and management letters for approval. For the 2020 fiscal period, there were a total of 82 active BIAs. This report contains the 2020 audited financial statements and management letters for 59 entities. In July 2021, the Audit Committee approved the 2020 audited financial statements and management letters of 2 entities. The 2020 audited financial statements and management letters for 21 other BIAs are in the process of being prepared, audited, or awaiting approval of the respective Boards. All of the in-scope BIAs have received an unqualified audit opinion for their financial statements. Several BIAs received audit recommendations for minor internal control and process improvements that have been accepted by the respective BIA Boards of Management - these audit recommendations can be found in the attached management letters.
The Audit Committee recommends that: 1. City Council approve the 2020 Audited Financial Statements and Management Letters for the 59 Business Improvement Areas in Appendices A to BH to the report (October 19, 2021) from the Controller and the Interim General Manager, Economic Development and Culture.
Staff recommendation as filed
The Controller and the Interim General Manager, Economic Development and Culture recommend that: 1. City Council approve the 2020 audited financial statements and management letters of the 59 Business Improvement Areas as attached in Appendices A to BH to this report.
AU10.13received
City Council has received and forwarded the 2019 and 2020 Financial Statements and related documents for the years ended December 31, 2019 and December 31, 2020 from the following City of Toronto Corporations and Partnered Corporation to the Audit Committee for information: - Build Toronto - Casa Loma Corporation - Lakeshore Arena Corporation - Toronto Community Housing Corporation - Toronto Hydro Corporation - Toronto Pan Am Sports Centre - Toronto Port Lands Company
The Audit Committee: 1. Received the 2019 and 2020 Financial Statements and related documents for the years ended December 31, 2019 and December 31, 2020 for the following City of Toronto Corporations and Partnered Corporation for information, having regard that the 2019 and 2020 Financial Statements and related documents have previously been considered by City Council: - Build Toronto - Casa Loma Corporation - Lakeshore Arena Corporation - Toronto Community Housing Corporation - Toronto Hydro Corporation - Toronto Pan Am Sports Centre - Toronto Port Lands Company
Staff recommendation as filed
That: 1. The Audit Committee receive the 2019 and 2020 Financial Statements and related documents for the years ended December 31, 2019 and December 31, 2020 for the following City of Toronto Corporations and Partnered Corporation for information, having regard that the 2019 and 2020 Financial Statements and related documents have previously been considered by City Council: - Build Toronto - Casa Loma Corporation - Lakeshore Arena Corporation - Toronto Community Housing Corporation - Toronto Hydro Corporation - Toronto Pan Am Sports Centre - Toronto Port Lands Company