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.
AU5.1adopted
2023 Audited Financial Statements - Consolidated City, Sinking Funds, and Consolidated Trust Funds
This report presents the City of Toronto's (City) Consolidated Financial Statements, the Sinking Funds Financial Statements and the Consolidated Trust Funds Financial Statements for the year ended December 31, 2023. All City financial statements are prepared in accordance with Public Sector Accounting Standards established by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Management is highlighting the following items in relation to the City's financial statements: - The Sinking Funds Financial Statements have now been prepared in accordance with Public Sector Accounting Standards as a result of the introduction of PS 3450 - Financial Instruments. - The City's tangible capital asset balances detailed in the City's Consolidated Financial Statements contain corrective adjustments recommended by the City's external auditors, KPMG LLP (KPMG), during the 2023 year-end audit; - The City's 2023 Consolidated Financial Statements have incorporated only those entities significant to the City's overall financial position and performance; and The City's external auditors, KPMG, are responsible for providing an opinion on the fair presentation of the above financial statements in accordance with Public Sector Accounting Standards. KPMG has issued a clean audit opinion (also referred to as an unqualified audit opinion) on the City's 2023 Consolidated Financial Statements, Sinking Funds Financial Statements, and Consolidated Trust Funds Financial Statements. The Audit Committee is responsible for adopting the financial statements prior to City Council's approval.
The Audit Committee recommends that: 1. City Council approve the 2023 Consolidated Financial Statements i n Appendix B to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services. 2. City Council approve the 2023 Sinking Funds Financial Statements in Appendix C to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services. 3. City Council approve the 2023 Consolidated Trust Funds Financial Statements in Appendix D to the report (June 20, 2024) from the Chief Financial Officer and Treasurer and the Interim Controller and Executive Director, Finance Shared Services.
Staff recommendation as filed
The Chief Financial Officer and Treasurer and Interim Controller and Executive Director, Finance Shared Services recommend that: 1. City Council approve the 2023 Consolidated Financial Statements i n Appendix B to this report. 2. City Council approve the 2023 Sinking Funds Financial Statements in Appendix C to this report. 3. City Council approve the 2023 Consolidated Trust Funds Financial Statements in Appendix D to this report.
AU5.2amended
City of Toronto Audit Findings Report for the Year Ended December 31, 2023
At its meeting of June 29, 2020, in item 2020.AU5.7, City Council appointed KPMG LLP as the auditor licensed under the Public Accounting Act, 2004 responsible for annually auditing the accounts and transactions of the City and certain of its local boards and expressing an opinion on the financial statements of these bodies based on the audit. KPMG LLP presents the City of Toronto Audit Planning Report for the Year Ended December 31, 2023 for the 2023 audit of the consolidated financial statements for the City of Toronto.
The Audit Committee recommend that: 1. City Council receive the City of Toronto Audit Planning Report for the Year Ended December 31, 2023 (June 20, 2024) from KPMG LLP for information.
AU5.3amended
Financial Statements for the Year Ended December 31, 2023 - Agencies
The following 2023 Financial Statements and related documents for the year ended December 31, 2023 have been submitted to the Audit Committee for consideration: - CreateTO - Exhibition Place - Heritage Toronto - TO Live - Toronto Atmospheric Fund - Toronto Parking Authority - Toronto Public Library - Toronto Transit Commission - Toronto Zoo - Yonge-Dundas Square
The Audit Committee recommend that: 1. City Council receive item AU5.3 - Financial Statements for the Year Ended December 31, 2023 - Agencies, for information.
AU5.4adopted
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, 2023.
The Audit Committee recommends that: 1. City Council receive the report (June 20, 2024) from the Auditor General on the status of the financial statement audits of the City's Agencies and Corporations for the year ended December 31, 2023 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, 2023.
AU5.5amended
The Auditor General follows up on her reports to review management actions taken to implement the recommendations and to ensure that intended benefits are being achieved. At the beginning of this follow-up cycle in July 2023, management reported 294 recommendations as fully implemented or no longer applicable. We selected 128 across multiple City divisions and 63 Toronto Transit Commission recommendations to review in this follow-up cycle. The number of high priority recommendations included were 88 for the City and 44 for Toronto Transit Commission. The assessments for the 191 recommendations concluded that 136 are fully implemented, 15 are no longer applicable, and 40 are not fully implemented. Since 1999 to April 30, 2024, the Auditor General has verified 86 per cent of the 3,534 recommendations as fully implemented or no longer applicable. The detailed results from this follow-up review are discussed in Attachment 1.
The Audit General recommends that: 1. City Council direct that the confidential information contained in Confidential Attachment 1 to the report (June 21, 2024) from the Auditor General remain confidential in its entirety, as it contains information that involves the security of property of the City of Toronto or one of its agencies and corporations, or the information is about labour relations or employee negotiations, or is about criteria to be applied to any negotiations carried on or to be carried on by or on behalf of the City of Toronto or one of its agencies and corporations. 2. City Council direct that the confidential information contained in Confidential Attachment 1 to the letter (July 4, 2024) from the Toronto Transit Commission Board remain confidential in its entirety, as it involves the security of property belonging to the Toronto Transit Commission.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it contains information that involves the security of property of the City of Toronto or one of its agencies and corporations, or the information is about labour relations or employee negotiations, or is about criteria to be applied to any negotiations carried on or to be carried on by or on behalf of the City of Toronto or one of its agencies and corporations.
AU5.6amended
As mandated by the Ambulance Act, R.S.O. 1990 (the Act), Toronto Paramedic Services provides paramedic-based healthcare services 24 hours a day, seven days a week, 365 days a year in Toronto. Its services encompass emergency medical dispatch, paramedic care and land ambulance transportation to hospital, and community paramedicine. Toronto Paramedic Services manages its own ambulance communications centre to receive and dispatch calls, including 9-1-1 calls transferred to it by the Toronto Police Service. On average, Toronto's ambulance communications centre handles about 910 emergency calls per day. The centre is the busiest of all the 22 ambulance communications centres in the province, receiving approximately 16 per cent of the medical emergency calls in Ontario. The ongoing shortage of doctors is putting added pressure on paramedic services. The Ontario College of Family Physicians reported that more than 516,000 Torontonians are currently without a family doctor. It further forecasts that nearly one million Torontonians could be without a family doctor by 2026. With the ongoing shortage of doctors, more people rely on paramedic services (and hospital emergency departments) as a safety net to access basic healthcare services they need when other options are unavailable. This audit assesses whether Toronto Paramedic Services is providing ambulance emergency response services in a timely manner across the City of Toronto, while optimizing the use of its resources. In assessing this objective, our audit aimed to answer the following questions: - Is Toronto Paramedic Services meeting its legislated and internally approved targets for providing a timely emergency response to persons requesting ambulance service? - Is Toronto Paramedic Services effectively measuring, monitoring, and reporting on how well it meets its targets and using these results to inform management decisions? - Are there opportunities for Toronto Paramedic Services to optimize its use of resources, including the use of vehicles and staff, to improve its performance and response time? Our report highlights opportunities for Toronto Paramedic Services to improve the efficiency and effectiveness of its operations by: a. Reviewing response time targets, improving overall response times particularly for higher acuity calls, and monitoring response times by geographic area. b. Requesting further provincial support to address the healthcare system pressures. Determining optimal staffing and ambulance resources and implement strategies to help manage the daily, weekly, and seasonal peaks in demand that contribute to the low availability of staffed ambulances. c. Implementing strategies to free up resources for higher acuity calls by employing innovative approaches to address low acuity calls, diverting some mental health calls to partners in the future, and understanding the needs of frequent 9-1-1 users better through data analysis.
The Audit Committee recommends that: 1. City Council request the Chief, Toronto Paramedic Services to: a. Review its performance plan and its response time targets to see if any updates are needed; and b. Improve overall response times to ensure it meets its response time targets and performance plan, particularly for the highest acuity calls. 2. City Council request the Chief, Toronto Paramedic Services to: a. Monitor and report out on performance by geographic areas to better inform future decision-making; and b. Reassess the designations of priority post stations, taking into consideration hospital locations, frequent dispatch locations, and areas with greatest needs by level of acuity and the type of hospital care required. 3. City Council request the City Manager, in consultation with the Chief, Toronto Paramedic Services, to request the Ontario government to: a. Consider establishing a provincial mandated target for wait time to offload a patient to encourage hospitals to better manage offload delays; b. Invest in a centralized database of integrated healthcare, to facilitate paramedic referrals to alternate healthcare providers and the transport of patients to non-hospital facilities; and c. Provide the requested staffing increases to address the resource needs in the Central Ambulance Communications Centre. 4. City Council request the Chief, Toronto Paramedic Services, to conduct a detailed staffing analysis that includes call volume, workload demand throughout the day, inactive staff, and response time targets to determine the optimal staffing level for frontline staff. 5. City Council request the Chief, Toronto Paramedic Services, to explore and implement strategies to help manage the daily, weekly, and seasonal peaks in demand that contribute to the low availability of staffed ambulances. 6. City Council request the Chief, Toronto Paramedic Services, to: a. evaluate the effectiveness of its retention strategies and initiatives and consider additional strategies if needed, to ensure it remains competitive in retaining frontline staff, including call takers and dispatchers, considering burnout and wellness; and b. consult union representatives and subject matter experts as part of this evaluation. 7. City Council request the Chief, Toronto Paramedic Services, to conduct a cost-benefit / risk analysis of innovative approaches for responding to low acuity calls to free up resources for higher acuity calls. 8. City Council request the Chief, Toronto Paramedic Services, to collaborate with Toronto Police Service and Toronto Community Crisis Service, to: a. Improve data collection and communication channels to enable paramedics to directly refer calls that would benefit from the attendance of Toronto Community Crisis Service or alternate City agencies; and b. Develop a more comprehensive plan for call diversion and consider if joint training is necessary to enhance each workforce's understanding of roles, responsibilities, limitations, and awareness of available mental health programs and resources. 9. City Council request the Chief, Toronto Paramedic Services, to improve the analysis of data on frequent 9-1-1 users, to: a. Identify more patients who can benefit from the community paramedicine programs; and b. Consider developing targeted public education and awareness campaigns to reduce non-emergency call volume. 10. City Council request the Chief, Toronto Paramedic Services to: a. Determine the optimal level of ambulances it requires in its fleet to meet its needs and response time targets; and b. Compare this to its existing fleet to determine the level of surplus and consider selling the vehicles not needed.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the Chief, Toronto Paramedic Services to: a. Review its performance plan and its response time targets to see if any updates are needed; and b. Improve overall response times to ensure it meets its response time targets and performance plan, particularly for the highest acuity calls. 2. City Council request the Chief, Toronto Paramedic Services to: a. Monitor and report out on performance by geographic areas to better inform future decision-making; and b. Reassess the designations of priority post stations, taking into consideration hospital locations, frequent dispatch locations, and areas with greatest needs by level of acuity and the type of hospital care required. 3. City Council request the City Manager, in consultation with the Chief, Toronto Paramedic Services, to request the Ontario government to: a. Consider establishing a provincial mandated target for wait time to offload a patient to encourage hospitals to better manage offload delays; b. Invest in a centralized database of integrated healthcare, to facilitate paramedic referrals to alternate healthcare providers and the transport of patients to non-hospital facilities; and c. Provide the requested staffing increases to address the resource needs in the Central Ambulance Communications Centre. 4. City Council request the Chief, Toronto Paramedic Services, to conduct a detailed staffing analysis that includes call volume, workload demand throughout the day, inactive staff, and response time targets to determine the optimal staffing level for frontline staff. 5. City Council request the Chief, Toronto Paramedic Services, to explore and implement strategies to help manage the daily, weekly, and seasonal peaks in demand that contribute to the low availability of staffed ambulances. 6. City Council request the Chief, Toronto Paramedic Services, to evaluate the effectiveness of its retention strategies and initiatives and consider additional strategies if needed, to ensure it remains competitive in retaining frontline staff, including call takers and dispatchers. 7. City Council request the Chief, Toronto Paramedic Services, to conduct a cost-benefit/risk analysis of innovative approaches for responding to low acuity calls to free up resources for higher acuity calls. 8. City Council request the Chief, Toronto Paramedic Services, to collaborate with Toronto Police Service and Toronto Community Crisis Service, to: a. Improve data collection and communication channels to enable paramedics to directly refer calls that would benefit from the attendance of Toronto Community Crisis Service or alternate City agencies; and b. Develop a more comprehensive plan for call diversion and consider if joint training is necessary to enhance each workforce's understanding of roles, responsibilities, limitations, and awareness of available mental health programs and resources. 9. City Council request the Chief, Toronto Paramedic Services, to improve the analysis of data on frequent 9-1-1 users, to: a. Identify more patients who can benefit from the community paramedicine programs; and b. Consider developing targeted public education and awareness campaigns to reduce non-emergency call volume. 10. City Council request the Chief, Toronto Paramedic Services to: a. Determine the optimal level of ambulances it requires in its fleet to meet its needs and response time targets; and b. Compare this to its existing fleet to determine the level of surplus and consider selling the vehicles not needed.
AU5.7adopted
Short-term rental services have disrupted housing markets across Canada, with apartments and houses being converted from traditional long-term housing rentals into short-term rentals. The City's Short-Term Rental Program aims to limit short-term rental activity to principal residences and safeguard long-term rental residential housing. City Council approved regulations to govern short-term rentals in late 2017 and 2018, following public consultations. Toronto Municipal Code Chapter 547, alongside zoning regulations, requires individuals to register if they want to offer short-term rentals and short-term rental companies to obtain licenses. Under these rules, individuals can host short-term rentals on their principal residence for less than 28 consecutive days. The Municipal Licensing and Standards Division is responsible for administering the Short-Term Rental Program and ensuring that the short-term rental operators and licensed short-term rental companies comply with the City's short-term rental and zoning bylaws. As of February 29, 2024, there were approximately 8,400 registered operators and three (one with no active listings) licensed short-term rental companies in the City. Revenue Services Division is responsible for collecting and processing the Municipal Accommodation Tax on short-term rental transactions. From 2021, when the Municipal Accommodation Tax came into effect, to February 29, 2024, Revenue Services Division has collected an estimated total of approximately $20 million in short-term rental Municipal Accommodation Tax. Our report highlights opportunities for the Municipal Licensing and Standards Division and Revenue Services Division to enhance the Short-Term Rental Program and collection of the Municipal Accommodation Tax revenue, as well as to ensure the goals of the Short-Term Rental Bylaw are being achieved as intended by: a. Strengthening the risk-based compliance framework to help achieve the bylaw's intended goals b. Improving program effectiveness and efficiencies c. Ensuring Municipal Accommodation Tax Remittance is accurate, complete, and processed in a timely manner d. Enhancing key performance indicators and targets to evaluate program effectiveness and efficiency
The Audit Committee recommends that: 1. City Council request the Executive Director, Municipal Licensing and Standards, to expand the use of data analytics to reduce non-compliant short-term rentals and enforce compliance with the bylaw. 2. City Council request the Executive Director, Municipal Licensing and Standards, to develop and implement effective risk indicators to identify non-compliant short-term rental operators who use property managers to operate a commercial short-term rental. 3. City Council request the Executive Director, Municipal Licensing and Standards, to: a. Complete the implementation of an Application Programming Interface solution allowing licensed short-term rental companies to verify the registration information of short-term rental operators and minimize the number of non-compliant listings; and b. Hold licensed short-term rental companies accountable for identifying and removing non-compliant listings. 4. City Council request the Executive Director, Municipal Licensing and Standards, to develop a process for proactively identifying and addressing illegally short-term rentals advertising online and unlicensed short-term rental companies. 5. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the Legal Services Division, to clarify the roles and responsibilities of all involved parties regarding landlord-tenant matters and consider adopting risk-based sampling procedures for verifying landlord consent for short-term rental registrations. 6. City Council request the Executive Director, Municipal Licensing and Standards, to implement risk-based sampling procedures to proactively verify that the short-term rental operators are permitted by their condominium bylaws to engage in short-term rentals of their principal residence. 7. City Council request the Executive Director, Municipal Licensing and Standards, to develop a comprehensive, proactive, and risk-based framework for compliance and enforcement to assist staff in enforcing the bylaw. 8. City Council request the Executive Director, Municipal Licensing and Standards, to develop service level targets for processing applications and renewals; and create system reports to monitor if the service level targets are met. 9. City Council request the Executive Director, Municipal Licensing and Standards, to triage the emails in the short-term rentals mailbox and ensure information provided by applicants about their application is reviewed on a timely basis; or consider an alternative automated method to improve the efficiency and effectiveness of processing information. 10. City Council request the Executive Director, Municipal Licensing and Standards, to: a. Work with the Chief Technology Officer to centralize short-term rental case management to the short-term rental database; and b. Improve tracking of investigation referrals, streamline the compliance and investigation processes, and improve coordination between Enforcement and Compliance teams. 11. City Council request the Executive Director, Municipal Licensing and Standards, to regularly conduct validity checks to ensure that the short-term rental transaction and property information data collected is complete and accurate. 12. City Council request the Executive Director, Municipal Licensing and Standards, to develop, implement, and comply with standard procedures for file documentation and retention for the Short-Term Rental Program, aligned with the City's policy on record retention. The procedures should specify the documents to be retained and their retention length, especially for any information supporting the calculation of the Municipal Accommodation Tax and nightly fees. 13. City Council request the Director, Revenue Services, to: a. Establish a quarterly reconciliation process that compares Municipal Accommodation Tax remittances with the detailed transaction data provided by licensed short-term rental companies that have also signed a Voluntary Collection Agreement with the City; and b. Develop procedures for sampling and comparing Municipal Accommodation Tax remittances with the detailed transaction data to be provided by the short-term rental operator upon request and / or by those licensed short-term rental companies without a Voluntary Collection Agreement with the City. 14. City Council request the Director, Revenue Services, in consultation with the Executive Director, Municipal Licensing and Standards, to ensure that short-term rental operators file quarterly reports in a timely manner and consider appropriate remedial actions against non-compliant short-term rental operators, including but not limited to charging interest on late Municipal Accommodation Tax payments and / or revoking their permits. 15. City Council request the Executive Director, Municipal Licensing and Standards, to develop and implement key performance indicators and targets for periodically evaluating the effectiveness and efficiency of the Short-Term Rental Program.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the Executive Director, Municipal Licensing and Standards, to expand the use of data analytics to reduce non-compliant short-term rentals and enforce compliance with the bylaw. 2. City Council request the Executive Director, Municipal Licensing and Standards, to develop and implement effective risk indicators to identify non-compliant short-term rental operators who use property managers to operate a commercial short-term rental. 3. City Council request the Executive Director, Municipal Licensing and Standards, to: a. Complete the implementation of an Application Programming Interface solution allowing licensed short-term rental companies to verify the registration information of short-term rental operators and minimize the number of non-compliant listings; and b. Hold licensed short-term rental companies accountable for identifying and removing non-compliant listings. 4. City Council request the Executive Director, Municipal Licensing and Standards, to develop a process for proactively identifying and addressing illegally short-term rentals advertising online and unlicensed short-term rental companies. 5. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the Legal Services Division, to clarify the roles and responsibilities of all involved parties regarding landlord-tenant matters and consider adopting risk-based sampling procedures for verifying landlord consent for short-term rental registrations. 6. City Council request the Executive Director, Municipal Licensing and Standards, to implement risk-based sampling procedures to proactively verify that the short-term rental operators are permitted by their condominium bylaws to engage in short-term rentals of their principal residence. 7. City Council request the Executive Director, Municipal Licensing and Standards, to develop a comprehensive, proactive, and risk-based framework for compliance and enforcement to assist staff in enforcing the bylaw. 8. City Council request the Executive Director, Municipal Licensing and Standards, to develop service level targets for processing applications and renewals; and create system reports to monitor if the service level targets are met. 9. City Council request the Executive Director, Municipal Licensing and Standards, to triage the emails in the short-term rentals mailbox and ensure information provided by applicants about their application is reviewed on a timely basis; or consider an alternative automated method to improve the efficiency and effectiveness of processing information. 10. City Council request the Executive Director, Municipal Licensing and Standards, to: a. Work with the Chief Technology Officer to centralize short-term rental case management to the short-term rental database; and b. Improve tracking of investigation referrals, streamline the compliance and investigation processes, and improve coordination between Enforcement and Compliance teams. 11. City Council request the Executive Director, Municipal Licensing and Standards, to regularly conduct validity checks to ensure that the short-term rental transaction and property information data collected is complete and accurate. 12. City Council request the Executive Director, Municipal Licensing and Standards, to develop, implement, and comply with standard procedures for file documentation and retention for the Short-Term Rental Program, aligned with the City's policy on record retention. The procedures should specify the documents to be retained and their retention length, especially for any information supporting the calculation of the Municipal Accommodation Tax and nightly fees. 13. City Council request the Director, Revenue Services, to: a. Establish a quarterly reconciliation process that compares Municipal Accommodation Tax remittances with the detailed transaction data provided by licensed short-term rental companies that have also signed a Voluntary Collection Agreement with the City; and b. Develop procedures for sampling and comparing Municipal Accommodation Tax remittances with the detailed transaction data to be provided by the short-term rental operator upon request and / or by those licensed short-term rental companies without a Voluntary Collection Agreement with the City. 14. City Council request the Director, Revenue Services, in consultation with the Executive Director, Municipal Licensing and Standards, to ensure that short-term rental operators file quarterly reports in a timely manner and consider appropriate remedial actions against non-compliant short-term rental operators, including but not limited to charging interest on late Municipal Accommodation Tax payments and / or revoking their permits. 15. City Council request the Executive Director, Municipal Licensing and Standards, to develop and implement key performance indicators and targets for periodically evaluating the effectiveness and efficiency of the Short-Term Rental Program.
AU5.8adopted
Investigation into Allegations of Reprisal for Reporting a Conflict of Interest
This report provides the results of an investigation into an allegation of reprisal from a City of Toronto employee in the Municipal Licensing and Standards Division. The employee claimed they were facing reprisal by management for disclosing a conflict of interest to the Fraud and Waste Hotline. In accordance with the Toronto Public Service By-law, Chapter 192, the Auditor General's Office (AGO) has the responsibility to investigate reprisal, in consultation with the City Manager or designate. Reprisal investigations are complex, and therefore the Auditor General initiated an investigation into the allegations. Under the City of Toronto Act, the Auditor General is also responsible for assisting City Council in holding itself and City administrators accountable for the quality of stewardship over public funds and for achievement of value for money in City operations. Ensuring that employees can come forward in a safe environment to report potential wrongdoing is a key internal control that helps to safeguard City assets and ensure value for money. Based on the work performed, the Auditor General has concluded that the employee was not subjected to reprisal for reporting a conflict of interest to the Fraud and Waste Hotline. No further action is recommended with respect to the alleged reprisal. With regards to the conflict of interest allegation, the Auditor General has concluded that the allegation is substantiated, including a violation of a related section in the Toronto Municipal Code. We have made two recommendations to strengthen the process for reporting and documenting conflicts of interest within the Division to supplement the overarching Conflict of Interest and Confidentiality provisions.
The Audit Committee recommends that: 1. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the Chief People Officer, to develop and implement a framework for Municipal Licensing and Standards staff when declaring conflicts of interest to ensure that there is a standardized process that includes: a. conflict of interest declarations are completed in writing; b. the appropriate people are notified of the conflict so that proper controls are in place to mitigate and manage the conflict appropriately; and c. the documentation is stored in a central location. 2. City Council request the Executive Director, Municipal Licensing and Standards, to ensure staff members have an up-to-date and clear understanding of the Divisional conflict of interest policy and procedure requirements, as well as providing periodic refresher training.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council request the Executive Director, Municipal Licensing and Standards, in consultation with the Chief People Officer, to develop and implement a framework for Municipal Licensing and Standards staff when declaring conflicts of interest to ensure that there is a standardized process that includes: a. conflict of interest declarations are completed in writing; b. the appropriate people are notified of the conflict so that proper controls are in place to mitigate and manage the conflict appropriately; and c. the documentation is stored in a central location. 2. City Council request the Executive Director, Municipal Licensing and Standards, to ensure staff members have an up-to-date and clear understanding of the Divisional conflict of interest policy and procedure requirements, as well as providing periodic refresher training.
AU5.9adopted
Community Centres - 2023 Audited Financial Statements
The purpose of this report is to provide the Audit Committee and City Council with the 2023 audited financial statements of Community Centres. The 2023 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 eight Community Centres have been completed, one was still in progress and another one awaiting final sign-off by the board. Depending on when the remaining audits are completed, the Independent Auditor's Reports, accompanying financial statements and management control letters (where applicable) of those Community Centres will be presented at a subsequent meeting of the Audit Committee.
The Audit Committee recommend that: 1. City Council receive the 2023 audited financial statements and management letters, where applicable, for the Community Centres in attachments 1 to 8 to the report (June 27, 2024) from the Auditor General for information.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2023 audited financial statements and management letters, where applicable, for the Community Centres in attachments 1 to 8 to this report for information.
AU5.10adopted
The purpose of this report is to provide the Audit Committee and City Council with a status update on the 2023 and prior audited financial statements of Arenas. The 2023 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 two 2023 audited financial statements available for Arenas. This is because the 2023 audits for five entities had not yet started, and the audit of the Larry Grossman Forest Hill Memorial Arena was in progress. 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. This report also provides City Council with the 2022 audited financial statements for Leaside Memorial Community Gardens Arena, Ted Reeve Community Arena, and William H. Bolton Arena. The draft 2022 audited financial statements for the Moss Park Arena are currently pending board approval. The Independent Auditor's Report, accompanying financial statements and management control letter (where applicable) for this Arena will be presented at a subsequent meeting of the Audit Committee.
The Audit Committee recommends that: 1. City Council receive the 2023 audited financial statements and management letters, where applicable, for the Arenas in Attachment 1 and Attachment 2 to the report (June 27, 2024) from the Auditor General for information. 2. City Council receive the 2022 audited financial statements and management letters, where applicable, for the Arenas in Revised Attachment 3, Attachment 4 and Attachment 5 to the report (June 27, 2024) from the Auditor General for information.
Staff recommendation as filed
The Auditor General recommends that: 1. City Council receive the 2023 audited financial statements and management letters, where applicable, for the Arenas in attachments 1 to 2 to this report for information. 2. City Council receive the 2022 audited financial statements and management letters, where applicable, for the Arenas in attachments 3 to 5 to this report for information.
AU5.11adopted
Business Improvement Areas - Update on 2022 Audited Financial Statements
The purpose of this report is to present the Audit Committee and City Council with the audited financial statements and management letters of 69 Business Improvement Areas (BIAs) for fiscal 2022. In 2022, City Council dissolved the Bloor Street Business Improvement Area and authorized for its assets to be transferred to the Bloor-Yorkville Business Improvement Area. Based on City Council's direction, the formal dissolution and asset transfers were completed in 2023 - the financial impacts associated with these activities will be reflected and disclosed in the Bloor-Yorkville Business Improvement Area's 2023 audited financial statements. As a result, the Bloor Street Business Improvement Area's 2022 year-end financial statements are not included as part of this report. All of the audited financial statements and management letters included in this report have been previously approved by their respective Boards of Management (Board).
The Audit Committee recommends that: 1. City Council approve the 2022 audited financial statements and management letters of the Business Improvement Areas as attached in Appendices A to CD to the report (June 17, 2024) from the Chief Financial Officer and Treasurer.
Staff recommendation as filed
The Chief Financial Officer and Treasurer recommends that: 1. City Council approve the 2022 audited financial statements and management letters of the Business Improvement Areas as attached in Appendices A to CD to this report.
AU5.12amended
Enterprise Work Management Solution (EWMS) Program Status
This report updates the Audit Committee on the City's Enterprise Work Management Solution (EWMS) Program, fulfilling recommendation 4 from 2023.AU3.4 - Audit of the Enterprise Work Management Solution (EWMS): Lessons Learned for Future Large Information Technology Projects. This status update covers the implementation cost, benefits realized as of the first quarter of 2024 and outlines the City's continued implementation and monitoring plan.
The Audit Committee: 1. Requested the Chief Technology Officer, in collaboration with the General Manager, Transportation Services, the General Manager, Solid Waste Management Services, the General Manager, Parks, Forestry and Recreation, the General Manager, Toronto Water, and the Executive Director, Customer Experience, to report back to Audit Committee on the status of the Enterprise Work Management Solution Program's 2023 audit recommendations by June 30, 2025.
Staff recommendation as filed
The Chief Technology Officer, the General Manager, Transportation Services, the General Manager Solid Waste Management Services, the General Manager, Parks, Forestry and Recreation, the General Manager, Toronto Water, and Executive Director, Customer Experience Division recommends that: 1. Audit Committee receive this report for information.
AU5.13amended
Bob Gore, Robert Gore & Associates, Chartered Professional Accountants, reporting on the Auditor General's Office of the City of Toronto - Report on the Results of Applying Specified Auditing Procedures to Financial Information Other Than Financial Statements for the Year Ended December 31, 2023.
The Audit Committee recommend that: 1. City Council receive the report (July 2, 2024) from Robert Gore and Associates on the 2023 Compliance Audit for the Auditor General's Office of the City of Toronto for information.