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.
AU13.1adopted
2021 Audited Financial Statements - Consolidated City, Sinking Funds, and Consolidated Trust Funds
This report presents the City of Toronto's (City) Audited Consolidated Financial Statements (Consolidated Statements), the Audited Sinking Fund Financial Statements (SF Statements) and the Consolidated Trust Funds Financial Statements (TF Statements) for the year ended December 31, 2021, for approval, to the Audit Committee and City Council. The report provides highlights of financial performance and financial condition as at December 31, 2021. All City financial statements are prepared in accordance with Public Sector Accounting Standards (PSAS) established by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants (CPA) of Canada. The Consolidated Statements include all City divisions and entities within the City's control; a full list is included in Note 1 accompanying the Consolidated Statements. Highlights of 2021's financial results are as follows: - Statement of Financial Position: the City recognized financial assets of $14.9 billion, liabilities of $23.3 billion, net debt of $8.4 billion, and non-financial assets, comprised mainly of the City's tangible capital assets used to support the delivery of City services, of $38.8 billion. - Although the City's net debt decreased by $0.2 billion, the balance of $8.4 billion continues to signify that the City will need to identify future sources of revenue to settle its liabilities given that the City does not currently have sufficient financial assets to settle anticipated expenditures in future fiscal periods; and - Statement of Operations: the City recognized revenues of $15.2 billion, which included $1.8 billion of government grants provided by senior levels of government, such as those provided under the Safe Restart arrangement and the Province of Ontario's vaccination program, to support the City's pandemic efforts, in addition to supportive housing and refugee costs. . The City also incurred expenses of $13.2 billion, which reflects costs incurred in 2021 to provide critical frontline services to residents and businesses within public health guidelines. Consistent with other Canadian municipalities, the City is legislatively required to have a balanced budget and therefore, is prohibited to budget for a deficit. In order to comply with these legislative requirements, the City uses a cash basis of accounting for budgeting purposes; however, the Consolidated Statements are prepared and presented using an accrual basis of accounting, which is required under PSAS. As the City uses a different methodology to prepare the budget versus the financial statements, financial statement users may note that the way in which the City calculates its budget in each of these financial documents is different. As a result, the City includes a separate reconciliation to illustrate key differences in accounting principles, such as the recognition of tangible capital assets and associated amortization costs on the Consolidated Statements, and explains why an accounting surplus is recognized. In the Consolidated Statements, the City recognized an accounting surplus of $2.0 billion in the current year. The Sinking Funds, which form part of the City's consolidated cash balances, are a significant financial resource for the City, especially as these assets are ultimately used to discharge the City's debt in accordance with the timing of when its loans mature. The Sinking Funds are accumulated and invested throughout the year and reduce the City's reliance on its own-source cash when making its debt repayments. The Trust Funds are assets benefiting the City and its Agencies and Corporations, mainly held in cash and investments and administrated through the City and the Toronto Police Services Board. Although these trust funds are assets to the City and its consolidated entities, they represent liabilities to third parties and therefore, are not included in the City's Consolidated Statements. The City's management team is responsible for preparing the Consolidated Statements (Appendix A), SF Statements (Appendix B), and the TF Statements (Appendices C and D) in accordance with PSAS, as well as ensuring that appropriate internal controls are in place to safeguard the City's assets and financial information. The City's external auditors, KPMG LLP (KPMG), are responsible for providing an opinion on the fair presentation of the above financial statements in accordance with PSAS. KPMG executes audit procedures in order to gather sufficient and appropriate audit evidence with which to form an opinion on the City's financial statements. In performing their work, KPMG may recommend adjustments to the City's balances or note disclosures included in its financial statements, or improvements to management's internal processes and internal controls. KPMG's Year End 2021 Audit Findings Report comprises a separate submission to the Audit Committee. KPMG has issued an unqualified audit opinion on the City's 2021 Consolidated Statements, SF Statements, and TF Statements. The Audit Committee is responsible for approving the financial statements prior to City Council's approval.
The Audit Committee recommends that: 1. City Council approve the 2021 Audited Consolidated Financial Statements in Appendix A to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller. 2. City Council approve the 2021 Audited Sinking Fund Financial Statements in Appendix B to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller. 3. City Council approve the transfer of the surplus cash balance of $14 million in response to the maturity of the 5 percent sinking fund to the active 3.5 percent sinking fund. 4. City Council authorize the Chief Financial Officer and Treasurer, or designate, to reallocate surplus cash resulting from the closure of any sinking funds after the debt for which the sinking fund was established has been fully paid, to another active sinking fund. 5. City Council approve the 2021 Audited Consolidated Trust Funds Financial Statements in Appendix C to the report (June 24, 2022) from the Chief Financial Officer and Treasurer and the Controller.
Staff recommendation as filed
The Chief Financial Officer and Treasurer and the Controller recommend that: 1. City Council approve the 2021 Audited Consolidated Financial Statements in Appendix A to this report. 2. City Council approve the 2021 Audited Sinking Fund Financial Statements in Appendix B to this report. 3. City Council approve the transfer of the surplus cash balance of $14 million in response to the maturity of the 5 percent sinking fund to the active 3.5 percent sinking fund. 4. City Council authorize the Chief Financial Officer and Treasurer, or designate, to reallocate surplus cash resulting from the closure of any sinking funds after the debt for which the sinking fund was established has been fully paid, to another active sinking fund. 5. City Council approve the 2021 Audited Consolidated Trust Funds Financial Statements in Appendix C to this report.
AU13.2amended
The City of Toronto Audit Findings Report for the Year Ended December 31, 2021
Kevin Travers, Lead Audit Engagement Partner, KPMG LLP and Maria Khoushnood, Project Management Partner, KPMG LLP will give a presentation on The City of Toronto Audit Findings Report for the Year Ended December 31, 2021.
The Audit Committee recommends that: 1. City Council request the Auditor General to direct the City's external auditor to promptly report to the Audit Committee any identified control deficiencies determined to be of significant importance to merit the attention of management or those charged with governance. 2. City Council direct the City Manager to implement the 55 recommendations in the Management letter (December 15, 2021) from KPMG LLP (for the year 2020), in alignment with implementation timelines. 3. City Council request the Chief Financial Officer and Treasurer to track the progress, in consultation with the responsible divisional leaders, on addressing the 55 recommendations in the Management letter (December 15, 2021) from KPMG LLP (for the year 2020), and any subsequent recommendations, and to report at least twice annually through the Variance Report to City Council, until such time as implementation is complete.
AU13.3adopted
Financial Statements for the Year Ended December 31, 2021 - Agencies
The following agencies have submitted 2021 Financial Statements and related documents for the year ended December 31, 2021 to the Audit Committee for consideration: - Exhibition Place - Heritage Toronto - TO Live - Toronto Parking Authority - Toronto Public Library - Toronto Transit Commission - Toronto Zoo - Yonge-Dundas Square
The Audit Committee recommends that: 1. City Council receive the 2021 Financial Statements and related documents for the year ended December 31, 2021 from the following City of Toronto Agencies for information: a. Exhibition Place; b. Heritage Toronto; c. TO Live; d. Toronto Parking Authority; e. Toronto Public Library; f. Toronto Transit Commission; g. Toronto Zoo; and h. Yonge-Dundas Square
Staff recommendation as filed
That: 1. City Council receive for information the 2021 Financial Statements and related documents for the year ended December 31, 2021 for the following agencies: a. Exhibition Place; b. Heritage Toronto; c. TO Live; d. Toronto Parking Authority; e. Toronto Public Library; f. Toronto Transit Commission; g. Toronto Zoo; and h. Yonge-Dundas Square
AU13.4adopted
The purpose of this report is to provide the Audit Committee and City Council with the status of financial statement audits of the City's Agencies and Corporations for the year ended December 31, 2021.
The Audit Committee recommends that: 1. City Council receive the report (June 24, 2022) from the Auditor General on the status of the financial statement audits of the City of Toronto's Agencies and Corporations for the year ended December 31, 2021 for information.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive this report on the status of the financial statement audits of the City's Agencies and Corporations for the year ended December 31, 2021.
AU13.5amended
Toronto Police Service (TPS) operates a Communications Centre (call centre) that acts as the Public Safety Answering Point (PSAP) for the City of Toronto. The communications operators at the call centre answer all emergency 9-1-1 calls across the City. Depending on the emergency response needed, the operators transfer the calls to fire services, ambulance, and/or other agencies, and dispatch police services when needed. As the 9-1-1 PSAP for the City, the TPS call centre has a crucial role in ensuring the safety and security of the people of Toronto and their properties. It is the first point of contact for those who call for emergency assistance during times of distress. The timeliness of call answering is critical so that people receive the appropriate emergency response needed as soon as possible, as a person's life or safety can often be at risk. The assessment made by communications operators determines the priority level, which impacts the timeliness of emergency response. Also, the decision on whether a call is dispatched or not for police services has a direct impact on the first level of front-line police resourcing required. The Toronto Police Services Board (TPSB) requested the Auditor General to complete a risk assessment of TPS to develop a risk-based audit plan. The audit of the TPS's 9-1-1 operations was included in the Auditor General's 2021 Audit Plan. In the February 2021 meetings, as part of City Council's decisions discussing the Community Crisis Support Service, City Council requested the Auditor General to prioritize her planned 2021 audit of the TPS's 9-1-1 operations. City Council also directed the City Manager for an overview of 9-1-1 operations and an analysis of the feasibility of moving 9-1-1 operations from TPS to a non-police City service. Further, that the City Manager's analysis be informed by any findings made by the Auditor General in the context of her audits of TPS. We have completed the audit of 9-1-1 operations. The audit was to assess whether the TPS's 9-1-1 Communications Centre provides access to emergency services in an effective and timely manner and identifying potential areas of improvement to the efficiency and economy of operations. The audit made 26 recommendations to the TPSB in the following five key areas. Five of these recommendations were also made to the City Manager's Office and relevant City's Divisions. 1. Answering calls 2. Assigning call event types and priority levels 3. Dispatch and response times to emergency events 4. New technology, 9-1-1 levies, and other opportunities 5. Community education and awareness This report contains five recommendations made to the City Manager's Office and applicable City divisions for consideration by City Council that are relevant to the City's management response. The list of these recommendations referenced between the review report and this report can be found in Attachment 2 (Appendix 2 with references). The full list of the Auditor General's recommendations made to both City Council and the Toronto Police Services Board can be found in Appendix 1 to this report. The audit report was tabled at the June 22, 2022 Toronto Police Services Board meeting. The agenda for the meeting and the report are available at: https://tpsb.ca/jdownloads-categories?task=download.send&id=733&catid=32&m=0 The Toronto Police Services Board will forward a transmittal on its actions to the Audit Committee for information.
The Audit Committee recommends that: 1. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to regularly review the information on timeliness of transferred 9-1-1 calls to Toronto Paramedic Services and Toronto Fire Services, with the view to working together to meet the 9-1-1 emergency call service level standards. The entities should meet, when needed, to determine if any changes are needed to established protocols to ensure the safety of citizens. 2. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with Toronto Paramedic Services and Toronto Fire Services, to achieve live-time interconnectivity in communication on 9-1-1 calls and events amongst these entities, both currently, and in the implementation of the Next Generation 9-1-1 solution moving forward; this should include consideration of an interface of the Intergraph Computer Aided Dispatch system to allow for improved communication during 9-1-1 call transfers and events, and to specifically assist with communication where Toronto Police Service are no longer required by Toronto Paramedic Services and/or Toronto Fire Services as applicable, so as to avoid unnecessarily committing police resources. 3. City Council request the City Manager, in consultation with Toronto Police Services Board, Toronto Police Service, and City's Legal Services, to include the following to inform its feasibility review of whether to move the 9-1-1 operations to a non-police City Service: a. fulsome cost/benefit analysis that includes the potential impact to call answer and call response time of police, fire, and ambulance, and the other related functions of the call centre such as audio and data requests including for court proceedings, and maintenance of radio communications; b. cost impact and feasibility with regards to staffing, given the current collective agreement of communications operators; c. legislative feasibility given the current draft and forthcoming legislative requirements related to the delivery of policing and related services, in particular, the involvement of the police service in the Public Safety Answering Point dispatching function; d. legal risk and who would be responsible for those 9-1-1 calls and/or alternate non-police response where police are not dispatched, and it results in a negative outcome; e. governance model for Public Safety Answering Point with the view to enhance interoperability and coordination of emergency response services delivered; and f. the goals and outcomes that are intended through a potential move of the 9-1-1 operations, and whether other strategies may be more effective, efficient, and economical to achieve those, such as offering another phone number for non-police response such as 2-1-1, and/or working together with Toronto Police Services on other strategies, including but not limited to, updating the 9-1-1 communications operators manual, additional training, data and technological supports for communications operators and police officers, and increased public education and awareness. 4. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to undertake public education campaigns (including targeted awareness programs) and ongoing public education initiatives to improve public awareness and understanding on distinguishing between the various lines and the proper use of 9-1-1, the non-emergency line (416-808-2222), online police reporting, and other non-police alternative resources, including promotion of 2-1-1 (assistance in connecting people with community and social service resources) and 3-1-1 and City Council request that an assessment be made to evaluate the effectiveness of these campaigns and initiatives on call behaviours; such campaign and/or initiatives should: a. include strategies to increase public awareness on what to do when the caller dials 9-1-1, including the specific information that needs to be provided to the call taker in order to shorten police response time, how to prevent pocket dials, and what to do when an individual dials 9-1-1 by mistake; b. be multi-lingual; and c. be refreshed and refocused periodically to address the 9-1-1 call analysis results to reduce unnecessary or avoidable non-emergency related calls to 9-1-1. 5. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to consider a shorter and easier to remember number (if possible three digits) for Toronto Police Service's dedicated non-emergency line. 6. City Council direct the Deputy City Manager, Community and Social Services to play both a leading and coordinating role for City divisions in implementing the recommendations directed at the City, and that they engage with the Toronto Police Service to collaborate on recommendations whose implementation will be led by the Toronto Police Service, where the Auditor General indicated such collaboration would be necessary. 7. City Council direct the Deputy City Manager, Community and Social Services to report back on the City's progress at the beginning of the next term (approximately six months' time) and to provide regular updates following that to ensure that progress on the recommendations directed at the City is being made.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to regularly review the information on timeliness of transferred 9-1-1 calls to Toronto Paramedic Services and Toronto Fire Services, with the view to working together to meet the 9-1-1 emergency call service level standards. The entities should meet, when needed, to determine if any changes are needed to established protocols to ensure the safety of citizens. 2. City Council request the Chief, Toronto Paramedic Services and Chief, Toronto Fire Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with Toronto Paramedic Services and Toronto Fire Services, to achieve live-time interconnectivity in communication on 9-1-1 calls and events amongst these entities, both currently, and in the implementation of the Next Generation 9-1-1 solution moving forward; this should include consideration of an interface of the Intergraph Computer Aided Dispatch system to allow for improved communication during 9-1-1 call transfers and events, and to specifically assist with communication where Toronto Police Service are no longer required by Toronto Paramedic Services and/or Toronto Fire Services as applicable, so as to avoid unnecessarily committing police resources. 3. City Council request the City Manager, in consultation with Toronto Police Services Board, Toronto Police Service, and City's Legal Services, to include the following to inform its feasibility review of whether to move the 9-1-1 operations to a non-police City Service: a. fulsome cost/benefit analysis that includes the potential impact to call answer and call response time of police, fire, and ambulance, and the other related functions of the call centre such as audio and data requests including for court proceedings, and maintenance of radio communications; b. cost impact and feasibility with regards to staffing, given the current collective agreement of communications operators; c. legislative feasibility given the current draft and forthcoming legislative requirements related to the delivery of policing and related services, in particular, the involvement of the police service in the Public Safety Answering Point dispatching function; d. legal risk and who would be responsible for those 9-1-1 calls and/or alternate non-police response where police are not dispatched, and it results in a negative outcome; e. governance model for Public Safety Answering Point with the view to enhance interoperability and coordination of emergency response services delivered; and f. the goals and outcomes that are intended through a potential move of the 9-1-1 operations, and whether other strategies may be more effective, efficient, and economical to achieve those, such as offering another phone number for non-police response such as 2-1-1, and/or working together with TPS on other strategies, including but not limited to, updating the 9-1-1 communications operators manual, additional training, data and technological supports for communications operators and police officers, and increased public education and awareness. 4. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to undertake public education campaigns (including targeted awareness programs) and ongoing public education initiatives to improve public awareness and understanding on distinguishing between the various lines and the proper use of 9-1-1, the non-emergency line (416-808-2222), online police reporting, and other non-police alternative resources, including promotion of 2-1-1 (assistance in connecting people with community and social service resources) and 3-1-1 and City Council request that an assessment be made to evaluate the effectiveness of these campaigns and initiatives on call behaviours; such campaign and/or initiatives should: a. include strategies to increase public awareness on what to do when the caller dials 9-1-1, including the specific information that needs to be provided to the call taker in order to shorten police response time, how to prevent pocket dials, and what to do when an individual dials 9-1-1 by mistake; b. be multi-lingual; and c. be refreshed and refocused periodically to address the 9-1-1 call analysis results to reduce unnecessary or avoidable non-emergency related calls to 9-1-1. 5. City Council request the City Manager and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in collaboration with the City, to consider a shorter and easier to remember number (if possible three digits) for Toronto Police Service's dedicated non-emergency line.
AU13.6amended
Toronto Police Service (TPS) plays a key role in ensuring the safety and well-being of the people of Toronto through its delivery of policing services. As first responders, TPS officers are on the front lines and respond to a variety of situations. However, we found TPS has effectively become the default response in some situations, responding to some calls for service that are not police matters, due in part to the lack of available effective alternate responses at the times they are needed. Furthermore, a lack of adequate social service supports for vulnerable individuals including people experiencing homelessness, mental health and substance use challenges, has resulted in a default police response to some calls for service. Supporting the complex needs of these individuals is not something that a police emergency response was intended to resolve and alternative community-based responses, if in place and available when needed, can help to provide the needed social supports for people. Modernizing and enhancing the way data is captured and leveraged provides the opportunity for TPS to work with the City and stakeholders in an informed way to divert some non-emergency 9-1-1 calls, as well as some calls for service to alternative responses that may be able to provide better outcomes for vulnerable individuals. In our view, based on the results, it is not a 'lift and shift' of calls for service and funding, but a strategy of gradual transition for alternative non-police responses where appropriate, with the shared goal to improve outcomes for the people of Toronto. These are complex matters needing better information to support transition. Opportunities for alternative responses may grow over time as better information is captured and analyzed, and while alternative responses are piloted and evaluated for potential further roll-out. Once the pilots for alternative non-police responses have been established and evaluated, which will likely take several years, funding levels and sources should be re-assessed. Other factors impacting both TPS and the City should also be considered, including the population growth, the demand level to meet the needs of vulnerable individuals, strategic priorities and resourcing to achieve them, as well as other considerations such as the impact of mandated NG9-1-1 requirements. This review also highlights that a whole-of-government and a whole-of-community commitment and approach is needed. Strategic investment by all levels of government in social service infrastructure and alternative strategies is necessary in order to create long-term value for the City, for individuals and the community. The need for funding supports from other levels of government for social infrastructure is also supported by our recent audits of the City's shelters and affordable housing program. Ensuring community safety and well-being will require active leadership and commitment from the City, and multi-sector collaboration and partnership in pursuing alternative responses that will allow TPS to focus on achieving its mandate and provide the best possible outcomes for the people of Toronto. It will be important for TPS, the City, and other stakeholders to develop concrete community-wide plans that include the desired outcomes and a framework to capture data, and track, evaluate and report out publicly on the progress of pilot outcomes. This will help the City, TPS, and other stakeholders to make evidence-based decisions and ensure transparency and accountability as all stakeholders move forward together. The following will be important to achieve the change needed: · identifying key and shared outcomes as part of strategic planning and collaboration and use evidence-based data to inform decisions · being transparent and accountable by tracking and reporting out publicly on progress against agreed plans and outcomes · being committed and building trust and support between stakeholders as they move through any barriers and difficulties towards common goals. The recommendations for change are in three key areas. 1. Re-thinking Call for Service Response to Support More Efficient and Effective Outcomes 2. Improving and Further Leveraging Data and Technology 3. Increasing Integration and Information Sharing The review contains 25 recommendations for change in 3 key areas and 11 of these are relevant to the City's management response. The recommendations provide key stakeholders with a starting point that will support them on their journey of long-term change as TPS works with the City and stakeholders to move forward together. This report contains 11 recommendations made to the City Manager's Office and applicable City divisions for consideration by City Council that are relevant to the City's management response. The list of these recommendations referenced between the review report and this report can be found in Attachment 2 (Appendix 2 with references). The full list of the Auditor General's recommendations made to both City Council and the Toronto Police Services Board can be found in Appendix 1 to this report. The public report was tabled at the June 22, 2022 TPSB meeting. The agenda for the meeting and the report are available at: https://tpsb.ca/jdownloads-categories?task=download.send&id=733&catid=32&m=0 The Toronto Police Services Board will forward a transmittal on its actions to the Audit Committee for information.
The Audit Committee recommends that: 1. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration along with other agencies, to determine the feasibility of setting up adequately resourced, non-time restrictive, alternative responses for events where police are currently attending and where such attendance is likely not essential; and City Council request staff and the Toronto Police Services Board, in doing so to: a. identify call for service event types, including but not limited to, the six event types discussed in our report that may be suitable for an alternative response; b. develop reasonable criteria for each event type to assess the calls for service within those event types that may be suitable for an alternative response, including defining the level of acceptable risk and liability and how these factors will be managed; c. consider alternative response pilot programs (e.g. community dispute mediation), with adequate evaluation mechanisms, to provide information and insights on the effectiveness of any established responses; this should include an assessment of the feasibility and cost-effectiveness of providing these alternative responses; d. consider existing City or other community programs that could provide an alternative response and where needed, the feasibility and cost-effectiveness of changing the approach and resourcing to provide a timely and effective non-police response (e.g. Municipal Licensing and Standards Division for noisy small gatherings, Shelter, Support and Housing Administration Division street outreach teams); e. consider a gradual and informed approach to establishing responses and assess the factors that would be needed for an effective and efficient full transition, including consultation with the public; and f. develop and regularly update a plan that includes key milestones and targets so that progress can be tracked. 2. City Council request the City Manager, in consultation with the Toronto Police Services Board, to reiterate the City's requests for funding commitments from the Government of Canada and the Ontario Government to support permanent housing options and to provide supports to address Toronto's mental health and addictions crises, and in doing so, to communicate to the other governments that a "whole-of-government" funding approach in these areas will be critical to building the infrastructure needed to support effective alternative response delivery and ensure the best possible outcomes for the people of Toronto. 3. City Council request the Chief, Toronto Paramedic Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to review current protocols for when Priority Response Unit officers are requested for See Ambulance calls for service; such review should include: a. determining if there are any opportunities to further refine the See Ambulance protocol so that the attendance of Priority Response Unit officers is based on an articulable risk to paramedic safety, specific to the unique circumstances of each call for service; b. re-evaluating the criteria for when police are requested; this evaluation should specifically consider, but not be limited to, if the presence of alcohol, in absence of other risk factors, requires an automatic Priority Response Unit response; c. ensuring that the rationale for requesting Priority Response Unit attendance and other important information is clearly documented in the Toronto Paramedic Services call for service details, both entities should also consider documenting which entity initiated the request for attendance from the other entity; d. in situations where Toronto Police Service would have sent Priority Response Unit officers to calls for service irrespective of a request from Toronto Paramedic Services, Toronto Police Service should consider documenting this in its call for service system; e. regular, joint evaluation of calls for service where Priority Response Unit attendance is requested, to assess the effectiveness and efficiency of the revised protocol and consider any changes as necessary; and f. considering if additional training is needed for Toronto Police Service and Toronto Paramedic Services call takers to ensure requests for police attendance are well documented and comply with policies and procedures. 4. City Council request the City Manager, and request the Toronto Police Service's Board to direct the Chief, Toronto Police Service to work in collaboration along with other agencies to analyze low priority, non-emergency calls for service (e.g. Unwanted Guests, Check Address etc.) to identify instances where officers are repeatedly attending the same locations; to determine if an alternative resolution can be implemented; in developing solutions, Toronto Police Service should consider if a call for service volume can be reduced through implementing Recommendation 1 above. 5. City Council request the City Manager, to work in collaboration with the President and Chief Executive Officer, Toronto Community Housing Corporation and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to determine if strategies can be implemented to reduce instances of Priority Response Unit officers repeatedly dispatched to the same locations within Toronto Community Housing Corporation properties. 6. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to: a. conduct joint program assessments of the outcomes from current mental health call for service diversion pilots, including the Gerstein Crisis Centre call for service diversion pilot, and the City's Toronto Community Crisis Service, to assess the effectiveness and outcomes of these programs; b. ensure mechanisms are in place so that both the City and Toronto Police Service have access to the necessary data, including Toronto Police Service call for service data (e.g. number of calls for service received, diverted) and relevant call for service details to complete effective evaluations of the current and any future pilots; and c. ensure planning for future pilot programs are coordinated, involve both the City and Toronto Police Service, and consider the recommendations from Section A.1 of the report (June 24, 2022) from the Auditor General, to ensure they are achieving the desired outcomes in the most efficient and effective way. 7. City Council request the Chief, Toronto Paramedic Services and request the Toronto Police Services Board to direct the Chief, Toronto Police Service, in consultation with Toronto Paramedic Services and the Chief Executive Officers (or other appropriate executive liaisons) of Toronto hospitals to: a. leverage technology and/or the use of data to identify the most appropriate hospital for an officer to transport an individual in custody, with the view of minimizing wait times and travelling the least possible distance; and b. develop police-hospital liaison committees and transfer of care protocols with all hospitals where Toronto Police Service transports apprehended persons, to minimize wait times and develop protocols to create a workflow which will benefit both Toronto Police Service and the hospitals. 8. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to: a. assess if current call for service diversion strategies to the City, through 3-1-1 Toronto, are working as intended, and if Toronto Police Service and City staff clearly understand the roles and responsibilities; such assessment to include evaluation of call volumes and outcomes at both Toronto Police Service's Communications Centre and 3-1-1 Toronto for relevant call for service types; and b. assess if there are opportunities to increase call for service diversion from Toronto Police Service to the City. 9. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to consider through an interface or other means, increasing the information shared between City divisions (e.g. Municipal Licensing and Standards Division, 3-1-1 Toronto, etc.) and Toronto Police Service on a per call for service basis (e.g. addresses where police respond to noisy parties) so that trends can be identified and the City can help address the root cause of issues that are not police matters and City Council request that, before undertaking any data sharing, Toronto Police Service and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act. 10. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to leverage 2-1-1 Central data in conjunction with call for service data, at an aggregate level, to identify neighbourhoods where there are a high number of low priority calls for service, and where community resources may exist to help divert front-line police resources and City Council request that before undertaking any data sharing, Toronto Police Service and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act. 11. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service to work in collaboration to consider implementing public awareness campaigns addressing the public's perceptions on people experiencing mental health challenges and/or homelessness and what type of response (e.g. police or non-police response) would be most appropriate and such process should include mechanisms for campaign evaluation (e.g. key metrics that will be measured), a process for including community engagement in the planning process and determining the most appropriate target audience. 12. City Council direct the Deputy City Manager, Community and Social Services to play both a leading and coordinating role for City divisions in implementing the recommendations directed at the City, and that they engage with the Toronto Police Service to collaborate on recommendations whose implementation will be led by the Toronto Police Service, where the Auditor General indicated such collaboration would be necessary. 13. City Council direct the Deputy City Manager, Community and Social Services to report back on the City's progress on Recommendation 3 above at the beginning of the next term (approximately six months' time) and to provide regular updates following that to ensure that progress on the recommendation directed at the City is being made.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration along with other agencies, to determine the feasibility of setting up adequately resourced, non-time restrictive, alternative responses for events where police are currently attending and where such attendance is likely not essential; and City Council request staff and the Toronto Police Services Board, in doing so to: a. identify call for service event types, including but not limited to, the six event types discussed in our report that may be suitable for an alternative response; b. develop reasonable criteria for each event type to assess the calls for service within those event types that may be suitable for an alternative response, including defining the level of acceptable risk and liability and how these factors will be managed; c. consider alternative response pilot programs (e.g. community dispute mediation), with adequate evaluation mechanisms, to provide information and insights on the effectiveness of any established responses. This should include an assessment of the feasibility and cost-effectiveness of providing these alternative responses; d. consider existing City or other community programs that could provide an alternative response and where needed, the feasibility and cost-effectiveness of changing the approach and resourcing to provide a timely and effective non-police response (e.g. Municipal Licensing and Standards Division for noisy small gatherings, Shelter, Support & Housing Administration Division street outreach teams); e. consider a gradual and informed approach to establishing responses and assess the factors that would be needed for an effective and efficient full transition, including consultation with the public; and f. develop and regularly update a plan that includes key milestones and targets so that progress can be tracked. 2. City Council request the City Manager, in consultation with the Toronto Police Services Board, to reiterate the City's requests for funding commitments from the Government of Canada and the Ontario Government to support permanent housing options and to provide supports to address Toronto's mental health and addictions crises, and in doing so, to communicate to the other governments that a "whole-of-government" funding approach in these areas will be critical to building the infrastructure needed to support effective alternative response delivery and ensure the best possible outcomes for the people of Toronto. 3. City Council request the Chief, Toronto Paramedic Services, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to review current protocols for when Priority Response Unit (PRU) officers are requested for See Ambulance calls for service; such review should include: a. determining if there are any opportunities to further refine the See Ambulance protocol so that the attendance of PRU officers is based on an articulable risk to paramedic safety, specific to the unique circumstances of each call for service; b. re-evaluating the criteria for when police are requested. This evaluation should specifically consider, but not be limited to, if the presence of alcohol, in absence of other risk factors, requires an automatic PRU response; c. ensuring that the rationale for requesting PRU attendance and other important information is clearly documented in the Toronto Paramedic Services call for service details. Both entities should also consider documenting which entity initiated the request for attendance from the other entity; d. in situations where TPS would have sent PRU officers to calls for service irrespective of a request from Toronto Paramedic Services, TPS should consider documenting this in its call for service system; e. regular, joint evaluation of calls for service where PRU attendance is requested, to assess the effectiveness and efficiency of the revised protocol and consider any changes as necessary; and f. considering if additional training is needed for TPS and Toronto Paramedic Services call takers to ensure requests for police attendance are well documented and comply with policies and procedures. 4. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration along with other agencies to analyze low priority, non-emergency calls for service (e.g. Unwanted Guests, Check Address etc.) to identify instances where officers are repeatedly attending the same locations; to determine if an alternative resolution can be implemented. In developing solutions, TPS should consider if call for service volume can be reduced through implementing Recommendation 1 of this report. 5. City Council request the City Manager, to work in collaboration with the President & CEO, Toronto Community Housing Corporation (TCHC) and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to determine if strategies can be implemented to reduce instances of Priority Response Unit officers repeatedly dispatched to the same locations within TCHC properties. 6. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to: a. conduct joint program assessments of the outcomes from current mental health call for service diversion pilots, including the Gerstein Crisis Centre call for service diversion pilot, and the City's Toronto Community Crisis Service, to assess the effectiveness and outcomes of these programs; b. ensure mechanisms are in place so that both the City and TPS have access to the necessary data, including TPS call for service data (e.g. number of calls for service received, diverted) and relevant call for service details to complete effective evaluations of the current and any future pilots; and c. ensure planning for future pilot programs are coordinated, involve both the City and TPS, and consider the recommendations from Section A.1 of this report, to ensure they are achieving the desired outcomes in the most efficient and effective way. 7. City Council request the Chief, Toronto Paramedic Services and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS), in consultation with Toronto Paramedic Services and the Chief Executive Officers (or other appropriate executive liaisons) of Toronto hospitals to: a. leverage technology and/or the use of data to identify the most appropriate hospital for an officer to transport an individual in custody, with the view of minimizing wait times and travelling the least possible distance; and b. develop police-hospital liaison committees and transfer of care protocols with all hospitals where TPS transports apprehended persons, to minimize wait times and develop protocols to create a workflow which will benefit both TPS and the hospitals. 8. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to: a. assess if current call for service diversion strategies to the City, through 3-1-1 Toronto, are working as intended, and if TPS and City staff clearly understand the roles and responsibilities; such assessment to include evaluation of call volumes and outcomes at both TPS's Communications Centre and 3-1-1 Toronto for relevant call for service types; and b. assess if there are opportunities to increase call for service diversion from TPS to the City. 9. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to consider through an interface or other means, increasing the information shared between City divisions (e.g. Municipal Licensing and Standards Division, 3-1-1 Toronto, etc.) and TPS on a per call for service basis (e.g. addresses where police respond to noisy parties) so that trends can be identified and the City can help address the root cause of issues that are not police matters and City Council request that, before undertaking any data sharing, TPS and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act. 10. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to leverage 2-1-1 Central data in conjunction with call for service data, at an aggregate level, to identify neighbourhoods where there are a high number of low priority calls for service, and where community resources may exist to help divert front-line police resources and City Council request that before undertaking any data sharing, TPS and the City perform a legal review, which includes consideration of any relevant privacy considerations, specifically the requirements outlined in the Municipal Freedom of Information and Protection of Privacy Act. 11. City Council request the City Manager, and request the Toronto Police Services Board to direct the Chief, Toronto Police Service (TPS) to work in collaboration to consider implementing public awareness campaigns addressing the public's perceptions on people experiencing mental health challenges and/or homelessness and what type of response (e.g. police or non-police response) would be most appropriate and such process should include mechanisms for campaign evaluation (e.g. key metrics that will be measured), a process for including community engagement in the planning process and determining the most appropriate target audience.
AU13.7adopted
Installation and Maintenance of Traffic Signs Contract - Follow up on Complaints Received
The purpose of this report is to provide an update on a fraud and waste complaint received, the subsequent action taken on the allegations and that management continues to work on the matters raised. In mid-2016, the City's Fraud and Waste Hotline (operated by the Auditor General's Office) received a complaint alleging a utility contracting services vendor ("the Vendor") of overbilling and a lack of oversight by Division management for not taking action against the Vendor. The Vendor provides installation and maintenance services regarding traffic signs. The Auditor General's Office conducted preliminary inquiries and determined that it was appropriate to refer the complaint to the Transportation Services Division ("the Division") for review and suggested leveraging the Internal Audit ("IA") Division to conduct an analysis to help address the allegations. In 2017, the IA Division issued a report of their analysis and outlined four recommendations for the Division to consider. They noted input errors by the Vendor, and credits for those amounts were received by the Division but no intentional overbilling was found. Divisional management agreed to implement the IA Division's recommendations by Q3 of 2018. IA Division's recommendations are outlined below, and the full report is attached. In December 2021, the Auditor General received another complaint that there were still concerns with the same vendor with additional allegations. The Auditor General's Office conducted preliminary inquiries, referred the complaint to the Division to review and followed up on the status of the IA Division's recommendations from 2017. The Division reviewed the new allegations and concluded one of the allegations was substantiated. The Auditor General's Office also met with the Division and were informed that some of the IA recommendations from 2017 were not implemented due to extenuating circumstances. The Division is continuing to work on the recommendations and future follow up may be required. This report presents an overview of the complaints received, actions taken and current status of the past recommendations and potential new recommendations in advance of the contract for installation and maintenance of traffic signs being procured for January 1, 2023. The Auditor General's Office is summarizing the information and has not audited the results presented. This report does not constitute an audit conducted in accordance with Generally Accepted Government Auditing Standards (GAGAS).
The Audit Committee recommends that: 1. City Council request the General Manager, Transportation Services to ensure the following for the upcoming contract: a. the vendor is required to document streets patrolled for non-site travel time; and b. the vendor is required to submit a daily log of activities to be performed. 2. City Council request the General Manager, Transportation Services to ensure that all areas of improvement identified through the complaints are incorporated into the upcoming contract. 3. City Council request the General Manager, Transportation Services to report back to the Audit Committee by the end of third quarter of 2023 on the outcome of the review by the Corporate Compliance Unit in Transportation Services on the initial Internal Audit recommendations.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the General Manager, Transportation Services to ensure the following for the upcoming contract: a. the vendor is required to document streets patrolled for non-site travel time; and b. the vendor is required to submit a daily log of activities to be performed. 2. City Council request the General Manager, Transportation Services to ensure that all areas of improvement identified through the complaints are incorporated into the upcoming contract. 3. City Council request the General Manager, Transportation Services to report back to the Audit Committee by the end of third quarter of 2023 on the outcome of the review by the Corporate Compliance Unit in Transportation Services on the initial Internal Audit recommendations.
AU13.8forwarded without recommendation
Part 2 of the Audit of Emergency Shelters: Lessons Learned from Hotel Operations - Update
This report is in response to a direction from the Audit Committee to 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. Shelter, Support and Housing Administration (SSHA) appreciates and welcomes the findings of the Auditor General (AG). The City of Toronto implemented the most comprehensive response to the COVID-19 pandemic for people experiencing homelessness in Canada. SSHA moved quickly in 2020 to open 48 new temporary shelter sites to provide additional space for physical distancing, avert potential outbreaks in shelters, save lives and minimize the spread of COVID-19 in shelters and the community. SSHA is deeply proud of our frontline staff and community partners for their ongoing efforts to protect people experiencing homelessness in Toronto. This unprecedented and significant expansion of the emergency shelter system required new approaches and rapid responses to emerging and urgent issues as they arose to ensure critical frontline operations were maintained. Learning from those experiences will continue to inform SSHA's approach to ongoing continuous improvement in service delivery and oversight. SSHA supports the recommendations from the AG and sees this review as an opportunity for ongoing continuous service improvement, as well as an opportunity to review and strengthen processes.
The Audit Committee submits the Item to City Council without recommendation.
Staff recommendation as filed
The City Solicitor and the Acting General Manager, Shelter, Support and Housing Administration recommends that: 1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains advice which is subject to litigation and solicitor-client privilege.
AU13.9amended
Status Update of the IT Disaster Recovery Plan
This report provides status update of IT Disaster Recovery Plan pursuant to a City Council decision under AU10.8 - Status of Audit Recommendations for the Technology Services Division at its meeting on November 9, 2021. At this meeting, City Council requested 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 Information Technology Disaster Recovery Plan should the City's systems, technology, communications, or backups be made unavailable. In that meeting, City Council also requested the Chief Technology Officer to report to the Q2 2022 Audit Committee with an update on the status of City of Toronto's Corporate Technology Services Disaster Recovery Plan, including implementation, testing and a full project plan for any outstanding work. The City creates and manages large volumes of electronic information or data. The impact of data loss or corruption of data from hardware failure, human error, hacking, malware, or a natural disaster could be significant. In such a case, a Technology Disaster Recovery Plan is designed to assist an organization in executing recovery processes in response to a disaster to protect business IT infrastructure and promote recovery. The Technology Services Division (TSD) has collaborated with multiple Divisions, Agencies and Corporations to gather inputs related to the status of their IT Disaster Recovery Plan should the City's systems, technology, communications, or backups be made unavailable. This information is documented in 'Section 1: City-wide assessment of Information Technology Disaster Recovery Plans' of this report and analysis is provided in Confidential Attachment # 1 - Status Update of the IT Disaster Recovery Plan. 'Section 2 - TSD Disaster Recovery Plan' of this report details the status of the Technology Services Division's Disaster Recovery Plan, including implementation, testing and a full project plan for outstanding work that will highlight the road map for the transition from current state to the future state, based on best practices that have been identified by the project team. The analysis and details of implementation plan are provided in Confidential Attachment # 1.
The Audit Committee recommends that: 1. City Council request the City Manager, in co-ordination with the Chief Technology Officer, the Chief Information Security Officer, the Director, Office of Emergency Management and the Director, Internal Audit, to report to the Audit Committee in the third quarter of 2023 with a City-wide Risk Governance Model addressing risks related to business continuity, cyber major incident and technology disaster recovery. 2. City Council request the Chief Technology Officer, in co-ordination with the Chief Information Security Officer and the Director, Office of Emergency Management to report to the Audit Committee in the third quarter of 2023 on the status of the Information Technology Disaster Recovery Plan from each City of Toronto division, agency and corporation; the status update should also be reported for City of Toronto's Corporate Technology Services Disaster Recovery Plan, including business continuity and cyber major incident. 3. City Council direct that Confidential Attachment 1 to the report (June 24, 2022) from the Chief Technology Officer remain confidential in its entirety, as it involves the security of the property of the City.
Staff recommendation as filed
The Chief Technology Officer 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 the property of the City.
AU13.10adopted
Community Centres - 2021 Audited Financial Statements
The purpose of this report is to provide the Audit Committee and City Council with the 2021 audited financial statements of Community Centres. The 2021 audited financial statements for the 10 Community Centres are presented to Audit Committee after approval by their respective Boards of Management. At this time, the audits of nine community centres have been completed and one has not yet started. Depending on when the remaining audit is completed, the Independent Auditor's Report, accompanying financial statements and management control letter (if applicable) will be presented at a subsequent meeting of the Audit Committee. For the nine completed Community Centres, each Community Centre's Independent Auditor's Report, accompanying financial statements, and internal control letter (where applicable) is attached to this report.
The Audit Committee recommends that: 1. City Council receive the 2021 audited financial statements for the Community Centres in Attachments 1 to 9 to the report (June 24, 2022) from the Auditor General.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2021 audited financial statements of Community Centres attached to this report.
AU13.11amended
Welch LLP Report on Arena Board Financial Controls and Governance
This report transmits and provides an overview of the special report on Financial Controls and Governance at the City's eight Arena Boards of Management (Arena Boards) conducted by Chartered Public Accounting firm Welch LLP (Welch) on the request of the Chief of Staff, outlines recommendations arising from the report, and directs the City Manager to report back in Q2 2023 with options for implementation. Welch is currently under contract by the City of Toronto to conduct financial statement audits for its controlled entities for five fiscal years (2018 - 2022), including the City's eight Arena Boards of Management (Arena Boards) with responsibility for the following City-owned arena facilities: Forest Hill Memorial Arena George Bell Arena Leaside Memorial Community Gardens Arena McCormick Playground Arena Moss Park Arena North Toronto Memorial Arena Ted Reeve Community Arena William H. Bolton Arena Welch has experienced delays in auditing and issuing audit opinions for many of the Arena Boards over the past several years, exacerbated and highlighted by the COVID-19 outbreak and mandatory arena closures under provincial emergency orders. At the November 2, 2021 meeting of the Audit Committee, the Chair asked what could be done to improve Arena Board performance. In response, staff requested Welch look back at issues encountered during audits of the Arena Boards over the past several years and identify any key findings, with a view to highlighting key areas of risk with respect to governance and financial oversight over the Arenas. In its report, Welch found that delays in financial reporting stem from underlying issues at the Arena Boards with respect to internal controls, capacity, knowledge, processes and technology. The report summarizes the issues found and notes areas for improvement. The report makes two key recommendations: 1) Evaluate new governance structures. In particular, the report recommends centralizing accounting, reporting and documentation processes. This could be achieved by having all Arena Boards use the same services or systems for accounting, cash management and payroll, while remaining independent entities. Alternatively, the report notes that the City could achieve improved coordination by bringing Arena operations under City management. 2) Evaluate different levels of assurance. Welch notes that the status quo is for the Arenas to meet the highest possible level of assurance by preparing general-purpose financial statements that are audited by an independent audit firm, as required under the City of Toronto Act, 2006. Welch notes that other audit procedures, such as a Financial Statement Review or Special Purpose Procedures (e.g. auditing only certain transactions or balances), may provide a reasonable level of assurance with less administrative burden on the Arenas and the City proportional to the level of financial risk. This report is a transmittal of findings by Welch LLP and does not constitute City staff's advice with regard to Welch's recommendations. The City Manager will review and evaluate the recommendations provided by Welch in its report, engage key stakeholder at the City and at the Arena Boards of Management on viable actions, and report back to Audit Committee in Q1 2023 with options for implementation.
The Audit Committee: 1. Received the report of Welch LLP titled "Financial Controls and Governance: Report on Toronto City Arenas" attached as Attachment 1 to the report (June 24, 2022) from the Chief of Staff, City Manager's Office and the Controller. 2. Directed the City Manager to consider the report of Welch LLP titled "Financial Controls and Governance: Report on Toronto City Arenas" attached as Attachment 1 to the report (June 24, 2022) from the Chief of Staff, City Manager's Office and the Controller and to report back to the Audit Committee in the second quarter of 2023 with proposed actions to address the findings in the report and any other common findings or opportunities which may be of benefit to the Boards of Community Centres which report through the Audit Committee. 3. Requested the City Manager to review the status of missing audits and recommendations not yet implemented contained in management letters for Boards of Arenas and Community Centres, and to report to the Audit Committee in the second quarter of 2023 with recommendations on how to address any outstanding issues of concern.
Staff recommendation as filed
The Chief of Staff, City Manager's Office and the Controller recommend that: 1. Audit Committee receive the report of Welch LLP titled "Financial Controls and Governance: Report on Toronto City Arenas" attached to this report as Attachment 1. 2. Audit Committee direct the City Manager to consider the report of Welch LLP titled "Financial Controls and Governance: Report on Toronto City Arenas" and report back to Audit Committee in the second quarter of 2023 with proposed actions to address the findings in the report.
AU13.12adopted
The purpose of this report is to provide the Audit Committee and City Council with the 2020 audited financial statements of Arenas and a status update on the 2021 and prior audited financial statements of Arenas. The 2021 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, there were no 2021 audited financial statements available for arenas. This is because the audits of eight entities had not yet started. Depending on when the 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 2020 audited financial statements for six arenas were previously presented at the June 2021 and February 2022 Audit Committee meetings. This report presents the Independent Auditor's Report, accompanying financial statements, and management control letter for one additional City Arena. The audit of the 2020 audited financial statements of the other remaining one Arena has not yet started and the 2019 audited financial statements of that same Arena started but was not in progress at the time of preparation of this report.
The Audit Committee recommends that: 1. City Council receive the 2020 audited financial statements of the Ted Reeve Community Arena attached as Attachment 1 to the report (June 24, 2022) from the Auditor General.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2020 audited financial statements of the Arena attached to this report.
AU13.13amended
In recent years, the Auditor General has completed a number of comprehensive and complex audits and investigations that covered a broad range of programs and services across the City and its agencies and corporations. The Auditor General's 2022 Work Plan included 20 in-progress projects and upcoming projects for 2022 and another 16 projects to be initiated in 2022 or 2023, contingent upon availability of audit resources and consideration of emerging risks. To date, the Auditor General has completed ten projects in 2022. There are currently more than seven projects [1] , including recommendation follow-up of certain high priority recommendations and two information technology projects, as well as several investigations underway. The purpose of this report is to: 1. provide an update on the status of the Auditor General's 2022 Work Plan 2. highlight staffing challenges impacting the Work Plan 3. request carryover of operating funding for key audit projects through the creation of a new discretionary reserve fund for the Auditor General's Office. In the first half of 2022, the Auditor General's Office was impacted by unanticipated staff leaves, turnover, and vacancies which has led to staffing and capacity constraints. The lower than expected staff complement is expected to continue through the next several months. Consequently, certain projects in the 2022 Work Plan will likely need to be delayed or deferred.
The Audit Committee recommends that: 1. City Council forward the report (June 24, 2022) from the Auditor General to the Budget Committee for consideration during the 2023 Budget process.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council establish a discretionary reserve fund entitled 'Auditor General Reserve Fund' in Appendix B, Schedule 7, Corporate Discretionary Reserve Funds of the City of Toronto Municipal Code Chapter 227, Reserves and Reserve Funds, the purpose of which is to hold any unused funds from City Council's approved Auditor General Operating Budgets such that it can fund planned projects and investigations that have to be delayed, or to honour commitments to contracts with experts and specialists that provide assistance with the Auditor General's work. 2. City Council authorize the necessary amendments to Chapter 227, Reserves and Reserve Funds, in accordance with Recommendation 1 and direct the City Solicitor to introduce any necessary bills to give effect to City Council's decision. 3. City Council direct that the newly established Auditor General Reserve Fund be funded from the 2022 operating surplus for professional services and temporary funding of the Auditor General's Office at the end of 2022, having no impact on the 2022 Approved Net Operating Budget of the City.