Toronto Parking Authority - Audit and Risk Management Committee
The full agenda, as filed
All 5 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.
PR2.1adopted
Toronto Parking Authority - 2021 Audited Financial Statements
The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors of Toronto Parking Authority and Board of Directors of Toronto Parking Authority with the audited financial statements and highlights of the 2021 financial results for the year ended December 31, 2021. KPMG LLP has completed their audit of Toronto Parking Authority's financial statements for the year ended December 31, 2021. A draft of the financial statements along with a copy of KPMG's year-end report to the Audit and Risk Management Committee is provided in Attachments 1 and 2. KPMG Audit Partner, Kevin Travers, will be attending the May 10, 2022 Audit and Risk Management Committee meeting to provide a summary on significant accounting and financial reporting matters dealt with during the audit process.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority approve the Audited Financial Statements for the year ended December 31, 2021.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of Toronto Parking Authority approve the Audited Financial Statements for the year ended December 31, 2021.
PR2.2adopted
Toronto Parking Authority - 2022 First Quarter Financial Update
Toronto Parking Authority's operating profit for the first quarter of 2022 is $1.1 million: $0.7 million better than plan. Operating revenues missed plan by $(3.1) million, however are $8.7 million higher than 2021. Bike Share operating losses for the first quarter of the year are $(1.5) million, +$0.1 million favourable versus our plan. Operating and administration expenses were lower by $3.6 million compared to budget as spending was adjusted to meet the requirements of the business. Despite unexpected Covid-19 restrictions during the first quarter, Toronto Parking Authority's full year operating profit is forecasted to be $15.1 million or $0.7 million favourable versus plan. Performance for the remainder of the year is expected to be on plan. As the pandemic continues to evolve. Toronto Parking Authority management has, and will continue to closely manage its discretionary costs to limit negative effects on net income. To ensure Toronto Parking Authority remains a stable source of reliable dividends, management will continue to invest in safety and maintenance. In addition, prudent investments in our key strategic mobility pillars will further ensure modern, safe and customer centric mobility solutions.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority receive the report (April 26, 2022) from the President, Toronto Parking Authority, for information.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of Toronto Parking Authority receive this report for information.
PR2.3amended
Toronto Parking Authority is North America's largest municipal operator of public parking. Toronto Parking Authority is unique from most City Agencies in that it fully funds its operations from revenues. It also contributes significant amounts to the City's general revenues. Based on the current Net Income Sharing Agreement, Toronto Parking Authority remits to the City 85 percent of its net annual income and since 2002 has contributed more than $1.3 billion to the City of Toronto to fund other municipal services and programs, including, affordable housing, transit and parks development. Throughout the pandemic, Toronto Parking Authority has aggressively managed its head count, operating expenses and capital spending to maintain its cash reserves. In fact, the Toronto Parking Authority delivered positive net income throughout the pandemic with over $19.7 million provided to the City of Toronto in 2021; virtually unheard of in the transportation sector. In addition, Toronto Parking Authority's Bike Share program achieved record ridership numbers in 2021 while squarely positioning itself as the trusted executional arm responsible for delivering the public network of Electric Vehicle Charging Infrastructure that will contribute to meeting the City's TransformTO policy objectives. As the City continues to recover from the pandemic, the Toronto Parking Authority is focused on becoming the world's best provider of sustainable parking, bike share and last mile mobility experiences for our customers, our partners and our City. Achieving this vision will require that Toronto Parking Authority change its value proposition to create a seamless customer experience that delivers on choice, ease and speed through the City. Conceptually, our new go to market proposition will position Toronto Parking Authority as an integrator of mobility services across an expanded array of channels in both the B2C and B2C sectors. Toronto Parking Authority is well positioned to capture and monetize these opportunities in 2022 and beyond; however, it requires a modernization of its mandate to reflect a changing city landscape. The risk statements included in Toronto Parking Authority's 2022 Annual Operating Plan (and 2023 - 2031 Capital Plan) identified a number of issues that could negatively impact the Toronto Parking Authority's ability to execute its strategy. In particular, the absence of an integrated City-wide parking strategy defining our winning aspirations and establishing clarity of responsibilities and accountabilities remains a barrier to fully realizing our objectives. Secondly, the welcome expansion of the Toronto Parking Authority's scope including Bike Share and Electric Vehicle Charging has placed an incremental burden on the Toronto Parking Authority's capacity to fund the required capital infrastructure and opex associated with these initiatives. Thirdly, the planned re-purposing of 40 Toronto Parking Authority parking assets for other city-building purposes will have a negative impact on our top line performance over the mid-term. Notwithstanding the foregoing, management remains confident these challenges are manageable and can be resolved satisfactorily within our current financial envelope. The Toronto Parking Authority business generates substantial net income each year - averaging $65 million annually pre-pandemic, which is more than sufficient to meet our long-term requirements. Fundamentally, Management's task is to engage our City partners and develop an updated revenue sharing model that not only reflects current market conditions, but more importantly, supports the ambitious growth strategy of the Toronto Parking Authority while providing the City with a sustainable source of financial dividends. The current revenue sharing model assigns an 85percent/15percent net income split with the city. This change was executed in 2017; prior to 2017 the dividend distribution was 75percent/25percent. Toronto Parking Authority has conducted a financial analysis that assesses various revenue, operating expense and capital spending scenarios over the next five years. This analysis will be presented to Toronto Parking Authority Board of Directors via an in-camera presentation in order to protect commercially sensitive information.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority receive the report (April 26, 2022) from the President, Toronto Parking Authority for information. 2. The Board of Directors of Toronto Parking Authority direct that the confidential presentation from the Vice President, Business Development, Toronto Parking Authority, and the Chief Financial Officer, Toronto Parking Authority, remain confidential in its entirety, as it pertains to positions, plans, procedures, criteria or instructions to be applied to negotiations to be carried on by the Toronto Parking Authority.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of Toronto Parking Authority receive this report for information.
PR2.4adopted
The purpose of this report is to present an update on the status of Toronto Parking Authority's action plans which mitigate the cyber security risks identified from the cyber threat risk assessment conducted in 2021, as well as those identified in the submission to the City's Chief Security Officer under the City's Cyber Security Confirmation Program. This report contains a confidential attachment which describes the status of the mitigation and remediation plans from the 2021 cyber security risk assessment and the risks identified in Toronto Parking Authority's submission to the City's Cyber Security Confirmation Program. Bindesh Rach, Vice President, Finance and Chief Financial Officer, will provide a presentation to the Committee at its meeting of May 10, 2022. These matters will require a closed session discussion, as they relate to the security of property belonging to the City or one of its agencies or corporations.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority receive the report (April 25, 2022) from the President, Toronto Parking Authority, for information. 2. The Board of Directors of Toronto Parking Authority direct that Confidential Attachment 1 to the report (April 25, 2022) from the President, Toronto Parking Authority, remain confidential in its entirety, as it involves the security of property belonging to the City or one of its agencies or corporations.
Staff recommendation as filed
The President recommends that: 1. The Board of Directors of Toronto Parking Authority receive this report for information. 2. The Board of Directors of Toronto Parking Authority direct that the confidential information contained in Confidential Attachment 1 remain confidential in its entirety, as it involves the security of property belonging to the City or one of its agencies or corporations.
PR2.5adopted
Delegation of Authority Update
At its meeting of November 8, 2021, the Board of Directors, Toronto Parking Authority reviewed, approved and endorsed an update to Toronto Parking Authority Policy Resolution 5-10: Delegation of Authority, as amended by resolution. Among other things, these amendments increased the Toronto Parking Authority President's authority to make commitments on behalf of Toronto Parking Authority from an amount not exceeding $250,000 to an amount not exceeding $500,000. At the same meeting, the Board of Directors also established an Audit and Risk Management Committee and adopted the mandate and Terms of Reference presented in Item PA27.13. Under the Roles and Responsibilities adopted by the Board, the Audit and Risk Management Committee shall review a list prepared by Management that summarizes the items where the Toronto Parking Authority President has used the increased delegation of authority to make commitments on behalf of Toronto Parking Authority. The purpose of this report is to provide a list of the commitments made by the President using the increased delegation of authority that were made between November 9, 2021 and April 22, 2022. Further updates will be provided to the Audit and Risk Management Committee on a semi-annual basis.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority receive the report (April 26, 2022) from the President, Toronto Parking Authority, for information.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that 1. The Board of Directors of Toronto Parking Authority receive this report for information.