Audit Committee
The full agenda, as filed
All 6 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.
AU12.1adopted
Part 1 of the Audit of Emergency Shelters: A Focus on Case Management
The Auditor General's Annual Work Plan includes a series of audits along the housing continuum. This series of audits is timely as the City continues to move forward with delivering its priority actions identified in the Homelessness Solutions Service Plan and the HousingTO 2020-2030 Action Plan. Our audit of emergency shelter operations, overseen by the City's Shelter, Support and Housing Administration (SSHA) Division was conducted in several parts. · This report addresses the City's delivery of housing case management supports at emergency shelters. · A separate report addresses the City's use of hotels to provide emergency shelter. According to SSHA's 2020 Annual Report, permanent housing solutions for homelessness recognize that housing is inherent to the dignity and well-being of a person, a determinant of health, and an efficient and a cost-effective use of resources. Housing First focuses on helping people to find permanent housing as quickly as possible, with the supports they need to live as independently as possible. The underlying philosophy of Housing First is that people are more successful in moving forward with their lives if they first have housing. SSHA is committed to achieving the priority goals set out in its 2021 Homelessness Solutions Service Plan. This report provides a roadmap to support SSHA to more effectively guide each client on their journey towards stable housing. The recommendations outline the need for consistency and robust infrastructure to ensure a more efficient and effective approach to improving outcomes for shelter clients. The audit results align with SSHA's "pivot to housing" 1 , and the priority actions identified in its Homelessness Solutions Service Plan and in the HousingTO 2020-2030 Action Plan. Our report draws attention to three key areas to help set up SSHA and its clients for success: 1. Increasing the focus on case management 2. Improving the homelessness and housing information system 3. Focusing on housing is an efficient and cost-effective use of resources Implementing the 12 recommendations in this report supports SSHA in its "pivot to housing" as it shifts from a focus on emergency response to homelessness to a focus on permanent housing solutions which recognizes that Housing First can achieve better outcomes for people experiencing homelessness.
The Audit Committee recommends that: 1. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with key stakeholders including shelter providers, to review and update the Toronto Shelter Standards and shelter provider operating agreements, in order to clarify the City's minimum expectations related to, but not limited to, the following areas: a. the extent to which shelter providers must use the City's homelessness and housing information system to record case management activities; b. case notes, documentation, or other records on the client's "service plan", "financial plan", and "housing plan", that shelter staff (case workers) are required to record in the City's homelessness and housing information system to ensure there is a complete record of service provided to clients, and to facilitate information sharing in support of continuity of approach or care going forward; and c. standardized processes and tools that can be used to support consistent adoption of good practices for case management by all shelter providers to engage clients in developing individualized goals and making an ongoing commitment to work towards achieving those goals and housing outcomes. 2. City Council request the General Manager, Shelter, Support and Housing Administration to ensure the City's homelessness and housing information system is configured to be able to collect data, with a client's consent, that will then be analyzed at a system- and program-wide level, in order to develop targeted approaches to addressing and improving outcomes for people experiencing homelessness, and to inform decisions about how much space must be added to the shelter system to accommodate clients where staying in shelters is not a short-term, temporary measure; such data could include: a. age, nature and degree of supports for mental and physical health conditions, and other factors, which may be determinants of chronicity; b. system trigger, flag, or other means in the information system to identify if shelter clients are unwilling to participate in case management or are not making significant progress in their case management goals, the reason(s), and whether a service restriction has been implemented, to see if there are solutions that can be found; and c. system trigger, flag, or other means in the information system to identify shelter clients that move frequently between programs and/or shelter locations, and the reasons, to help ensure continuity of approach or care. 3. City Council request the General Manager, Shelter, Support and Housing Administration to: a. conduct cost-benefit analysis on creating a permanent housing solution, potentially in situ, for seniors and others with significant physical and mental health support needs, including the potential for converting shelter programs for long-term shelter clients who require significant physical and mental health supports, into permanent supportive housing or long-term care facility; and b. seek to have any long-term shelter programs with characteristics of a long-term care home designated as such, with ongoing and sustainable funding requested from the Province to operate the facility as a long-term care home specializing in providing appropriate primary health care, harm reduction, overdose prevention and mental health case management services for people experiencing homelessness. 4. City Council request the General Manager, Shelter, Support and Housing Administration to ensure all eligible shelter clients are added to the City's centralized social housing waiting list system and are designated priority status applicants for faster access to social housing and rent geared-to-income assistance. 5. City Council request the General Manager, Shelter, Support and Housing Administration to: a. review whether it would be more effective to centralize responsibility for case management of clients that move frequently within the shelter system to support continuity of approach or care and improve outcomes; and b. clarify in the Toronto Shelter Standards and shelter provider operating agreements the City's minimum expectations related to housing, case management and other support services to be provided to shelter clients who move frequently from shelter to shelter or only use respite and/or extreme weather programs, to ensure consistency, quality and completeness of case management activities in alignment with a Housing First approach. 6. City Council request the General Manager, Shelter, Support and Housing Administration to: a. establish expectations, targets and outcomes for post-housing follow-up support services; b. clarify in the Toronto Shelter Standards and shelter and homelessness service provider operating agreements who is responsible for post-housing follow-up and the City's minimum expectations related to the nature, extent, and timing of follow-up activities, as well as documentation requirements of post-housing follow-up services within the City's homelessness and housing information system to support continuity of approach or care and improve outcomes; and c. determine the funding requirements and sources to adequately support shelter and homelessness service providers to deliver the necessary post-housing follow-up services. 7. City Council request the General Manager, Shelter, Support and Housing Administration to implement robust program accountability standards and monitoring of the quality, efficiency and effectiveness of case management by shelter providers; such monitoring to include: a. reviewing of case files to assess whether shelter providers adequately comply with the Toronto Shelter Standards service requirements for case management; b. benchmarking of actual staff to client service ratio for like programs, based on the level of support and intensity of case management required according to a common assessment of needs; and c. assessing outcomes achieved by shelter providers. 8. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with key stakeholders including shelter providers, to: a. continue to develop and implement consistent criteria or method of assessment tool and approaches, which can be used by all shelter staff to determine client needs and prioritize supports and service delivery; where all shelter providers will be required to use the Service Triage, Assessment, and Referral Support (STARS) common assessment tool, Shelter, Support and Housing Administration to develop and implement engagement and change management plans to support effective adoption of the tool; b. review and update the Toronto Shelter Standards and shelter provider operating agreements, in order to clarify expectations related to the intensity of case management (level, nature, and extent) to be provided to each client by shelter staff to support better outcomes for clients and better align with a Housing First approach based on the common assessment criteria; c. define expected outcomes from case planning, taking into consideration of needs and limitations of specific client groups (e.g. chronic, seniors, families, youth, transient, etc.); d. develop targets and measures against which to assess outcomes based on the different needs and limitations of specific client groups (e.g. chronic, seniors, families, youth, transient, etc.), taking into consideration the assessment of client vulnerability and necessary intensity of case management; and e. benchmark performance and outcomes across programs and shelter providers. 9. City Council request the General Manager, Shelter, Support and Housing Administration to continue to define, implement, track, and improve the quality and reliability of key data points within the City's homelessness and housing information system, and analyze such data to improve performance monitoring, evaluate program outcomes at a program- and system-wide level, and publicly report on results; such data to also be used to make informed decisions on how to better support homelessness service delivery including, but not limited to, prioritization of funding, staffing and resourcing, as well as priorities for developing and implementing targeted approaches to improve outcomes. 10. City Council request the General Manager, Shelter, Support and Housing Administration to review the City's homelessness and housing information system to: a. expedite the introduction of necessary operational, policy, and technical enhancements in the information system to enable all City-funded shelter providers to more effectively provide collaborative case management and seamless supports to their clients, whether the shelter provider uses the City's information system or not; and b. determine whether the system can continue to effectively meet the Division's requirements for data-informed decision-making regarding homelessness and housing services and for developing and implementing data-informed and targeted approaches for improving outcomes for specific client groups experiencing chronic homelessness. 11. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the City Solicitor, and with guidance from the Information and Privacy Commissioner of Ontario, to: a. review how information collected for people experiencing homelessness, with their consent, can be shared by the City's shelter and homelessness service providers to support continuity of approach or care from intake, through case management at any shelter, and post-housing follow-up while housed; b. develop a common consent to be used by all the City's shelter and homelessness service providers to enable sharing of information for the common purpose of providing homelessness and housing services including the appropriate information relevant to providing supports for mental and physical health conditions and to helping shelter clients navigate the health system; and c. review how to share common information needed or used to provide homelessness and housing services to people experiencing homelessness and information needed or used to provide other services addressed through the Human Services Integration initiative, so that this information only needs to be collected once, resulting in a better experience and greater efficiency in providing service for the client. 12. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the Executive Director, Housing Secretariat, to: a. continue to look for ways to accelerate the "pivot to housing" and increase the stock of affordable permanent housing options; b. work with shelter providers to develop service plans including housing plans, and financial plans that help to prioritize people experiencing chronic homelessness for permanent housing opportunities that arise from the "pivot to housing"; and c. complete a detailed analysis of cost savings from the "pivot to housing" and how funding from efficiencies and cost avoidance can be best redirected towards providing more wraparound supports which help people to be more successful at staying in permanent housing.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with key stakeholders including shelter providers, to review and update the Toronto Shelter Standards and shelter provider operating agreements, in order to clarify the City's minimum expectations related to, but not limited to, the following areas: a. the extent to which shelter providers must use the City's homelessness and housing information system to record case management activities; b. case notes, documentation, or other records on the client's "service plan", "financial plan", and "housing plan", that shelter staff (case workers) are required to record in the City's homelessness and housing information system to ensure there is a complete record of service provided to clients, and to facilitate information sharing in support of continuity of approach or care going forward; and c. standardized processes and tools that can be used to support consistent adoption of good practices for case management by all shelter providers to engage clients in developing individualized goals and making an ongoing commitment to work towards achieving those goals and housing outcomes. 2. City Council request the General Manager, Shelter, Support and Housing Administration, to ensure the City's homelessness and housing information system is configured to be able to collect data, with a client's consent, that will then be analyzed at a system- and program-wide level, in order to develop targeted approaches to addressing and improving outcomes for people experiencing homelessness, and to inform decisions about how much space must be added to the shelter system to accommodate clients where staying in shelters is not a short-term, temporary measure. Such data could include: a. age, nature and degree of supports for mental and physical health conditions, and other factors, which may be determinants of chronicity; b. system trigger, flag, or other means in the information system to identify if shelter clients are unwilling to participate in case management or are not making significant progress in their case management goals, the reason(s), and whether a service restriction has been implemented, to see if there are solutions that can be found; and c. system trigger, flag, or other means in the information system to identify shelter clients that move frequently between programs and/or shelter locations, and the reasons, to help ensure continuity of approach or care. 3. City Council request the General Manager, Shelter, Support and Housing Administration, to: a. conduct cost-benefit analysis on creating a permanent housing solution, potentially in situ, for seniors and others with significant physical and mental health support needs, including the potential for converting shelter programs for long-term shelter clients who require significant physical and mental health supports, into permanent supportive housing or long-term care facility; and b. seek to have any long-term shelter programs with characteristics of a long-term care home designated as such, with ongoing and sustainable funding requested from the Province to operate the facility as a long-term care home specializing in providing appropriate primary health care, harm reduction, overdose prevention and mental health case management services for people experiencing homelessness. 4. City Council request the General Manager, Shelter, Support and Housing Administration to ensure all eligible shelter clients are added to the City's centralized social housing waiting list system and are designated priority status applicants for faster access to social housing and rent geared-to-income assistance. 5. City Council request the General Manager, Shelter, Support and Housing Administration, to: a. review whether it would be more effective to centralize responsibility for case management of clients that move frequently within the shelter system to support continuity of approach or care and improve outcomes; and b. clarify in the Toronto Shelter Standards and shelter provider operating agreements the City's minimum expectations related to housing, case management and other support services to be provided to shelter clients who move frequently from shelter to shelter or only use respite and/or extreme weather programs, to ensure consistency, quality and completeness of case management activities in alignment with a Housing First approach. 6. City Council request the General Manager, Shelter, Support and Housing Administration, to: a. establish expectations, targets and outcomes for post-housing follow-up support services; b. clarify in the Toronto Shelter Standards and shelter and homelessness service provider operating agreements who is responsible for post-housing follow-up and the City's minimum expectations related to the nature, extent, and timing of follow-up activities, as well as documentation requirements of post-housing follow-up services within the City's homelessness and housing information system to support continuity of approach or care and improve outcomes; and c. determine the funding requirements and sources to adequately support shelter and homelessness service providers to deliver the necessary post-housing follow-up services. 7. City Council request the General Manager, Shelter, Support and Housing Administration, to implement robust program accountability standards and monitoring of the quality, efficiency and effectiveness of case management by shelter providers. Such monitoring to include: a. reviewing of case files to assess whether shelter providers adequately comply with the Toronto Shelter Standards service requirements for case management; b. benchmarking of actual staff to client service ratio for like programs, based on the level of support and intensity of case management required according to a common assessment of needs; and c. assessing outcomes achieved by shelter providers. 8. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with key stakeholders including shelter providers, to: a. continue to develop and implement consistent criteria or method of assessment tool and approaches, which can be used by all shelter staff to determine client needs and prioritize supports and service delivery. Where all shelter providers will be required to use the Service Triage, Assessment, and Referral Support (STARS) common assessment tool, Shelter, Support and Housing Administration to develop and implement engagement and change management plans to support effective adoption of the tool; b. review and update the Toronto Shelter Standards and shelter provider operating agreements, in order to clarify expectations related to the intensity of case management (level, nature, and extent) to be provided to each client by shelter staff to support better outcomes for clients and better align with a Housing First approach based on the common assessment criteria; c. define expected outcomes from case planning, taking into consideration of needs and limitations of specific client groups (e.g. chronic, seniors, families, youth, transient, etc.); d. develop targets and measures against which to assess outcomes based on the different needs and limitations of specific client groups (e.g. chronic, seniors, families, youth, transient, etc.), taking into consideration the assessment of client vulnerability and necessary intensity of case management; and e. benchmark performance and outcomes across programs and shelter providers. 9. City Council request the General Manager, Shelter, Support and Housing Administration, to continue to define, implement, track, and improve the quality and reliability of key data points within the City's homelessness and housing information system, and analyze such data to improve performance monitoring, evaluate program outcomes at a program- and system-wide level, and publicly report on results. Such data to also be used to make informed decisions on how to better support homelessness service delivery including, but not limited to, prioritization of funding, staffing and resourcing, as well as priorities for developing and implementing targeted approaches to improve outcomes. 10. City Council request the General Manager, Shelter, Support and Housing Administration, to review the City's homelessness and housing information system to: a. expedite the introduction of necessary operational, policy, and technical enhancements in the information system to enable all City-funded shelter providers to more effectively provide collaborative case management and seamless supports to their clients, whether the shelter provider uses the City's information system or not; and b. determine whether the system can continue to effectively meet the Division's requirements for data-informed decision-making regarding homelessness and housing services and for developing and implementing data-informed and targeted approaches for improving outcomes for specific client groups experiencing chronic homelessness. 11. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the City Solicitor, and with guidance from the Information and Privacy Commissioner of Ontario, to: a. review how information collected for people experiencing homelessness, with their consent, can be shared by the City's shelter and homelessness service providers to support continuity of approach or care from intake, through case management at any shelter, and post-housing follow-up while housed; b. develop a common consent to be used by all the City's shelter and homelessness service providers to enable sharing of information for the common purpose of providing homelessness and housing services including the appropriate information relevant to providing supports for mental and physical health conditions and to helping shelter clients navigate the health system; and c. review how to share common information needed or used to provide homelessness and housing services to people experiencing homelessness and information needed or used to provide other services addressed through the Human Services Integration initiative, so that this information only needs to be collected once, resulting in a better experience and greater efficiency in providing service for the client. 12. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the Executive Director, Housing Secretariat, to: a. continue to look for ways to accelerate the "pivot to housing" and increase the stock of affordable permanent housing options; b. work with shelter providers to develop service plans including housing plans, and financial plans that help to prioritize people experiencing chronic homelessness for permanent housing opportunities that arise from the "pivot to housing"; and c. complete a detailed analysis of cost savings from the "pivot to housing" and how funding from efficiencies and cost avoidance can be best redirected towards providing more wraparound supports which help people to be more successful at staying in permanent housing.
AU12.2amended
Part 2 of the Audit of Emergency Shelters: Lessons Learned from Hotel Operations
The Auditor General's Annual Work Plan includes a series of audits along the housing continuum. This series of audits is timely as the City continues to move forward with delivering its priority actions identified in the Homelessness Solutions Service Plan and the HousingTO 2020-2030 Action Plan. Our audit of emergency shelter operations, overseen by the City's Shelter, Support and Housing Administration (SSHA) Division was conducted in several parts. · This report addresses the City's use of hotels to provide emergency shelter. · A separate report addresses the City's delivery of housing case management supports at emergency shelters. SSHA has traditionally contracted with various hotels across the city to supplement its shelter capacity for individuals experiencing homelessness. With the onset of the COVID-19 pandemic there was a need for increased physical distancing, which reduced bed capacity at existing shelter and respite sites. In response, SSHA needed to significantly expand the number of hotel rooms purchased to be able to provide a safe place for people experiencing homelessness to sleep indoors. As at March 9, 2022, the shelter system included over 3,900 people staying in 2,900 rooms across 29 hotel locations. SSHA will likely continue to use hotels as a temporary housing solution to meet the demand for emergency shelter beds, winter respite, refugee resettlement, or for other emergencies that may arise. Putting in place the right strategies to effectively oversee and manage hotel operations allows SSHA to stretch the value achieved from each shelter dollar further and to free up more rooms to support those in need. Implementing the 15 recommendations in the following three main areas can help strengthen SSHA's oversight and management of hotel operations: A. Strengthening Contract Management Stretches Funding Further - SSHA, like other City divisions, needs a stronger internal control framework to effectively manage its contracts. This audit highlights an opportunity to transfer responsibility for hotel contracting to CREM so SSHA can focus on core service delivery. B. Leveraging Data to Identify Opportunities to Stretch Funding Further - Getting the right data in place to be able to focus on available capacity within the system is one way SSHA can continuously improve the coordinated and cost-effective use of available space in the system. Going forward, SSHA should enhance its use of data to develop targeted strategies to help reduce the number of hotel rooms going unused and to look for ways to make more space in hotels available as client rooms. C. Building Confidence in the Safety of the Shelter System - SSHA has a responsibility for ongoing monitoring and reinforcement of IPAC measures implemented by its contracted service providers. With a focus on making sure no dollar and no room goes to waste, SSHA can provide more emergency shelter spaces or can re-direct more funds towards creating more permanent housing solutions for those experiencing homelessness - solutions that recognize that housing is inherent to the dignity and well-being of a person, that housing is a determinant of health, and that housing is an efficient and cost-effective use of resources.
The Audit Committee recommends that: 1. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the Controller, to develop an internal control framework to effectively manage hotel contracts being used to provide emergency shelter services; such internal control framework to include the following measures: a. clear policies and procedures that define the roles and responsibilities for both internal and third-party program staff as well as program support staff who review invoices and authorize payments for hotel shelter services; and b. perform periodic reviews to verify that key contract monitoring and management controls are operating effectively. 2. City Council request the General Manager, Shelter, Support and Housing Administration to consult with the City Solicitor when undertaking negotiations to change existing contract terms and to ensure any changes to terms of agreements follow proper contracting practices, including proper amending of contracts where applicable. 3. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the City Solicitor, to review the express terms of hotel contracts and to communicate to applicable hotel operators to stop invoicing for charges not in compliance with the express terms of the contracts. 4. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the Controller and the City Solicitor, to assess the amounts charged on invoices and to take action to recover any amounts paid to hotel operators and other service providers that are not in accordance with the express terms of contract, including: a. "DMF" and Marketing Service Fees; b. "facility surcharge" and gratuities applied for meal services; c. vacant room charges less any credits received to date; and d. any other charges identified that are not in accordance with the express terms of the agreement. 5. City Council request the General Manager, Shelter, Support and Housing Administration to ensure that, going forward, invoices are appropriately reviewed such that payments are only authorized for charges that are in accordance with the express terms of the contract. 6. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with the City Solicitor, to ensure that hotel contracts clearly describe the applicable charges for the services being delivered and clarify if other charges such as gratuities and other surcharges or fees should be excluded from payment where not described in the contract. 7. City Council request the General Manager, Shelter, Support and Housing Administration to clarify for each hotel the applicable rate for each specific space in the hotel (other than client rooms), be it offices, programming rooms, banquet rooms, storage rooms, or other areas. 8. City Council request the General Manager, Shelter, Support and Housing Administration to review all invoice charges in addition to hotel rooms (such as printer fees, storage costs), to see if there are more cost-effective options for addressing the operational requirement needed to operate emergency shelter programs in hotels. 9. City Council request the General Manager Shelter, Support and Housing Administration, in consultation with the Corporate Real Estate Management Division, to: a. implement processes to support the Division's ability to enforce the contract requirements related to repairs of any damages caused by the City's occupancy of hotels; and b. ensure the appropriate review of charges by hotels for damages prior to authorizing payments to ensure the charges are in accordance with the express terms of contract. 10. City Council request the General Manager, Shelter, Support and Housing Administration and the Executive Director, Corporate Real Estate Management to review roles and responsibilities for identifying potential locations for emergency shelter programs, procuring and negotiating pay-per-use agreements and room block leases, and managing contracted hotel space used for emergency shelter purposes; such review to determine how Shelter, Support and Housing Administration can best leverage Corporate Real Estate Management real estate service delivery, wherever possible. 11. City Council request the General Manager, Shelter, Support and Housing Administration to reduce costs associated with vacant and unused rooms by prioritizing assignment of rooms in leased facilities before incurring additional room costs at hotels with more flexible arrangements. 12. City Council request the General Manager, Shelter, Support and Housing Administration to ensure that the Shelter Management Information System accurately reflects contracted room capacity and the rooms available in hotels, including rooms with a recent discharge. 13. City Council request the General Manager, Shelter, Support and Housing Administration to review the cost-effectiveness of the portfolio of contracted hotels, using reliable data to assess the demand for shelter beds and any need to open up more rooms or alternatively reduce the number of rooms the City is purchasing. 14. City Council request the General Manager, Shelter, Support and Housing Administration to ensure the Shelter, Support and Housing Administration Division: a. keeps the Infection Prevention and Control manual for shelters settings up-to-date and available to all shelter service providers; b. monitors shelter service providers' Infection Prevention and Control plans are up-to-date and that Infection Prevention and Control principles and procedures are properly and consistently being implemented at each shelter on an ongoing basis to reduce the risk of spreading any infection in the shelter system; c. on an ongoing and regular basis, obtains independent assessments of Infection Prevention and Control procedures in place to effectively prevent, detect, and manage outbreaks, in consultation with the Medical Officer of Health or third-party Infection Prevention and Control specialist and works with shelter service providers to remedy areas that may require improvement for each facility and/or agency; and d. reports transparently to City Council, through the Economic and Community Development Committee, on Infection Prevention and Control areas requiring improvement, including corrective action plans to strengthen Infection Prevention and Control measures in the shelter system. 15. City Council request the General Manager, Shelter, Support and Housing Administration, in consultation with Accounting Services Division and the City Solicitor, to review and determine the accurate and consistent application of Harmonized Sales Tax on hotel services when the City is leasing space for emergency shelter on a long-term basis; such review to include: a. determining if room, meal, or any other relevant services being provided are exempt from the Harmonized Sales Tax; b. determining if the City can obtain a recovery or rebate of the Harmonized Sales Tax already paid, should it be determined that the services are exempt; and c. providing direction to hotel operators for emergency shelter services on the expected treatment for the Harmonized Sales Tax going forward. 16. City Council direct the General Manager, Shelter, Support and Housing Administration and the City Solicitor to report back to the July 11, 2022 meeting of the Audit Committee on further progress of recovery of all charges that are not in accordance with the terms of the contract, such report to also include the terms and conditions of the agreements and how they work.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the General Manager, Shelter, Support and Housing Administration Division, in consultation with the Controller, to develop an internal control framework to effectively manage hotel contracts being used to provide emergency shelter services. Such internal control framework to include the following measures: a. clear policies and procedures that define the roles and responsibilities for both internal and third-party program staff as well as program support staff who review invoices and authorize payments for hotel shelter services; and b. perform periodic reviews to verify that key contract monitoring and management controls are operating effectively. 2. City Council request the General Manager, Shelter, Support and Housing Administration Division, to consult with the City Solicitor when undertaking negotiations to change existing contract terms and to ensure any changes to terms of agreements follow proper contracting practices, including proper amending of contracts where applicable. 3. City Council request the General Manager, Shelter, Support and Housing Administration Division, in consultation with the City Solicitor, to review the express terms of hotel contracts and to communicate to applicable hotel operators to stop invoicing for charges not in compliance with the express terms of the contracts. 4. City Council request the General Manager, Shelter, Support and Housing Administration Division, in consultation with the Controller and City Solicitor, to assess the amounts charged on invoices and to take action to recover any amounts paid to hotel operators and other service providers that are not in accordance with the express terms of contract, including: a. "DMF" and Marketing Service Fees; b. "facility surcharge" and gratuities applied for meal services; c. vacant room charges less any credits received to date; and d. any other charges identified that are not in accordance with the express terms of the agreement. 5. City Council request the General Manager, Shelter, Support and Housing Administration Division, to ensure that, going forward, invoices are appropriately reviewed such that payments are only authorized for charges that are in accordance with the express terms of the contract. 6. City Council request the General Manager, Shelter, Support and Housing Administration Division, in consultation with the City Solicitor, to ensure that hotel contracts clearly describe the applicable charges for the services being delivered and clarify if other charges such as gratuities and other surcharges or fees should be excluded from payment where not described in the contract. 7. City Council request the General Manager, Shelter, Support and Housing Administration Division, to clarify for each hotel the applicable rate for each specific space in the hotel (other than client rooms), be it offices, programming rooms, banquet rooms, storage rooms, or other areas. 8. City Council request the General Manager, Shelter, Support and Housing Administration Division, to review all invoice charges in addition to hotel rooms (such as printer fees, storage costs), to see if there are more cost-effective options for addressing the operational requirement needed to operate emergency shelter programs in hotels. 9. City Council request the General Manager Shelter, Support and Housing Administration Division, in consultation with the Corporate Real Estate Management Division, to: a. implement processes to support the Division's ability to enforce the contract requirements related to repairs of any damages caused by the City's occupancy of hotels; and b. ensure the appropriate review of charges by hotels for damages prior to authorizing payments to ensure the charges are in accordance with the express terms of contract. 10. City Council request the General Manager, Shelter, Support and Housing Administration Division and the Executive Director, Corporate Real Estate Management Division, to review roles and responsibilities for identifying potential locations for emergency shelter programs, procuring and negotiating pay-per-use agreements and room block leases, and managing contracted hotel space used for emergency shelter purposes. Such review to determine how Shelter, Support and Housing Administration can best leverage Corporate Real Estate Management real estate service delivery, wherever possible. 11. City Council request the General Manager, Shelter, Support and Housing Administration Division, to reduce costs associated with vacant and unused rooms by prioritizing assignment of rooms in leased facilities before incurring additional room costs at hotels with more flexible arrangements. 12. City Council request the General Manager, Shelter, Support and Housing Administration Division, to ensure that the Shelter Management Information System accurately reflects contracted room capacity and the rooms available in hotels, including rooms with a recent discharge. 13. City Council request the General Manager, Shelter, Support and Housing Administration Division, to review the cost-effectiveness of the portfolio of contracted hotels, using reliable data to assess the demand for shelter beds and any need to open up more rooms or alternatively reduce the number of rooms the City is purchasing. 14. City Council request the General Manager, Shelter, Support and Housing Administration Division, to ensure the Division: a. keeps the Infection Prevention and Control manual for shelters settings up-to-date and available to all shelter service providers; b. monitors shelter service providers' Infection Prevention and Control plans are up-to-date and that Infection Prevention and Control principles and procedures are properly and consistently being implemented at each shelter on an ongoing basis to reduce the risk of spreading any infection in the shelter system; c. on an ongoing and regular basis, obtains independent assessments of Infection Prevention and Control procedures in place to effectively prevent, detect, and manage outbreaks, in consultation with the Medical Officer of Health or third-party Infection Prevention and Control specialist and works with shelter service providers to remedy areas that may require improvement for each facility and/or agency; and d. reports transparently to City Council, through the Economic and Community Development Committee, on Infection Prevention and Control areas requiring improvement, including corrective action plans to strengthen Infection Prevention and Control measures in the shelter system. 15. City Council request the General Manager, Shelter, Support and Housing Administration Division, in consultation with Accounting Services Division and the City Solicitor, to review and determine the accurate and consistent application of Harmonized Sales Tax on hotel services when the City is leasing space for emergency shelter on a long-term basis. Such review to include: a. determining if room, meal, or any other relevant services being provided are exempt from Harmonized Sales Tax; b. determining if the City can obtain a recovery or rebate of the Harmonized Sales Tax already paid, should it be determined that the services are exempt; and c. providing direction to hotel operators for emergency shelter services on the expected treatment for Harmonized Sales Tax going forward.
AU12.3adopted
Auditor General’s Cybersecurity Review: Toronto Fire Services Critical Systems Review Phase 2
Cyberattacks are widely considered to be one of the most critical operational risks facing organizations. The Auditor General has taken a proactive approach in planning her audits and has included them in her annual work plans 1 . This Phase 2 report is an extension of our work that was underway when we issued our first report entitled "Auditor General's Cybersecurity Review: Toronto Fire Services Critical Systems Review" 2 and completes our review of critical systems at Toronto Fire Services (TFS). At the February 2022 Audit Committee, TFS provided a public report with a confidential attachment on the implementation status of our Phase 1 recommendations. 3 This report contains two administrative recommendations. The findings and recommendations from our Phase 2 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 (May 20, 2022) from the Auditor General. 2. City Council direct that Confidential Attachment 1 to the report (May 20, 2022) 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 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.
AU12.4adopted
Auditor General’s Cybersecurity Review: Open-Source Internet Data Intelligence Review
Cyber threats are on the rise and continue to evolve. Many municipalities in Canada and the U.S. have been affected by cyberattacks in recent years. The Toronto Transit Commission was recently hit by a ransomware attack in October 2021. 1 In Canada, the estimated average cost of a data breach is $6.35 million. 2 As cybersecurity threats expand and become more complex, the Auditor General continues to proactively examine the controls and evolving cyber threats to the City, its agencies and corporations, and make recommendations to improve cybersecurity. Cyber attackers leverage the data available over the internet for an organization and its staff to launch cyberattacks. It is important that the data available over the internet is monitored, and actions are taken to reduce the cyberattack surface. We used Open-Source Intelligence (OSINT) gathering for data available on the internet to perform this review. The objective of this review was to identify information available over the internet that may present cybersecurity risks to the City and its agencies and corporations. The organizations reviewed included: · City of Toronto · Toronto Police Service · Toronto Public Library · Toronto Transit Commission (TTC) · Toronto Hydro This report contains two recommendations. The confidential findings and recommendations from our review are contained in the Confidential Attachment 1 to this report.
The Audit Committee recommends that: 1. City Council adopt the confidential instructions to staff in Confidential Attachment 1 to the report (May 20, 2022) from the Auditor General. 2. City Council direct that Confidential Attachment 1 to the report (May 20, 2022) from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate officials at the City and 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 officials at the City and its agencies and corporations.
AU12.5amended
At its meeting on Thursday, April 14, 2022, the TTC Board considered the attached report entitled "Toronto Transit Commission Cybersecurity Audit Phase 1: Critical IT Assets and User Access Management". The Board adopted the recommendations in the staff report, as follows: The Auditor General recommends that: 1. The Toronto Transit Commission Board adopt the confidential instructions to staff in Confidential Attachment 1 to this report from the Auditor General. 2. The Toronto Transit Commission Board forward this report to City Council for information through the City's Audit Committee. 3. The Toronto Transit Commission Board 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 Toronto Transit Commission and City Officials. The recommendations of the Toronto Transit Commission Board as set out above are submitted for City Council consideration through the Audit Committee.
The Audit Committee recommends that: 1. City Council direct that Confidential Attachment 1 to the report (March 22, 2022) from the Auditor General be released publicly at the discretion of the Auditor General, after discussions with the appropriate Toronto Transit Commission and City Officials.
Staff recommendation as filed
The Toronto Transit Commission recommends that: 1. City Council receive this report for information.
AU12.6amended
On February 9, 2021, the Auditor General released a report entitled "Getting to the Root of the Issues: A Follow-Up to the 2019 Tree Maintenance Services Audit", which was tabled at the Audit Committee meeting on February 16, 2021. Council provided direction to Parks, Forestry and Recreation (PFR) to report to each meeting of the Audit Committee on experiences and data collected on the performance of Urban Forestry Contractors and City crews. The purpose of this report is to provide the third performance update of Urban Forestry Contractors and City crews. This report highlights the continual improvement in productivity and operational efficiency being exhibited by the crews as a result of the implementation of the Auditor General's recommendations and PFR's increased oversight and enhanced contract management. When issues of unproductive time are found, PFR has tools to take immediate action to hold Contractors and City crews accountable in accordance with contract terms and the collective agreement. The performance update data presented in this report reflects the current arboricultural services contracts which came into effect on July 1, 2021.
The Audit Committee directed the General Manager, Parks, Forestry and Recreation to provide the next Performance Update of Urban Forestry Contractors and City Crews to the first meeting of the Audit Committee in the 2022-2026 Term of Council, in lieu of a report to the July 2022 Audit Committee meeting given the limited additional data available since the June 2022 Audit Committee meeting will not result in a significant update in one months' time.
Staff recommendation as filed
The General Manager, Parks, Forestry and Recreation recommends that: 1. The Audit Committee receive this report for information.