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.
PR3.1adopted
Toronto Parking Authority - 2023 June 30 Year-to-Date Financial Performance
Toronto Parking Authority's net income June 30 2023 Year-to-Date was $21.2 million; +$9.8 million versus plan. Total revenues $69.5 million; +$2.3 million favourable, driven by better than expected parking revenues (87 index vs 2019; +3 points.). Costs were $46.8 million; $4.6 million lower than plan driven by favourability on salaries due to timing of hiring, project consulting programs and facility costs. Financing income was $2.2 million better than plan due to the higher interest rates on the cash balance. The monthly income is expected to decrease throughout the year as capital is deployed. Current 2023 net income outlook is forecasted to be $37 to $41 million vs plan of $25.4 million. Capital spend was $10.8 million as at June 30th with in flight commitments of $31.9 million. Management is forecasting to achieve planned Toronto Parking Authority-led annual capital spend. We are actively engaging our City partners to ensure completion of total planned capital spend of $71.3 million.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (August 24, 2023) 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 the Toronto Parking Authority receive this report for information.
PR3.2adopted
Toronto Parking Authority Enterprise Risk Management Update Report
Enterprise Risk Management is a continuous process to identify and assess risks and opportunities at an enterprise level. The Toronto Parking Authority currently does not have a formal Enterprise Risk Management strategy and after the release of a Request for Proposals in the second quarter of 2023, the successful proponent, KPMG LLP, was engaged to support the setup of the Enterprise Risk Management Program. The purpose of this report is for KPMG to provide an overview of the Enterprise Risk Management Project and to provide a status update.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (August 24, 2023) 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 the Toronto Parking Authority receive this report for information.
PR3.3adopted
In 2019, Toronto Parking Authority embarked on a journey to implement a modernized Enterprise Resource Planning Solution to replace a system that was custom-built and implemented in the mid-1980s. The system had significant limitations and was approaching a state of obsolescence and was impairing the ability of the business to meet its financial mandate. Accordingly, Toronto Parking Authority initiated a comprehensive market scan, through a formal open Request for Information process, while taking into consideration the City of Toronto's "SAP First" policy to examine SAP before other Enterprise Resource Planning products in order to leverage existing investments in technology. Based on the results of the evaluation process, Toronto Parking Authority entered into a non-competitive contract with SAP Canada to provide software licensing and professional services, by leveraging the terms and conditions of the City of Toronto's Master Services Agreement with SAP Canada, for the delivery of a non-customized, single tenant cloud-based software-as-a-service Enterprise Resource Planning to support Toronto Parking Authority's financial and operational growth and transformation with a fully hosted, robust, standardized and scalable platform. In October 2020, Toronto Parking Authority successfully implemented SAP S/4 HANA (Phase One) (SAP) to replace its obsolete financial system. In January 2022, Toronto Parking Authority successfully implemented Phase Two with the launch of SAP SuccessFactors Employee Central and SAP SuccessFactors Pay for Performance applications. These initiatives provide the organization with the capability and fact-based insights necessary to elevate employee performance, drive business literacy, and ensure legislative compliance. Management met its objective of deploying a modern, cloud-based, scalable, Enterprise Resource Planning application which will drive organizational productivity, transparency, and efficiency. The purpose of this report is to provide the Board with a final update to mark the completion of the SAP implementation. A Request for Proposals was released in January 2023 to obtain consultant services to conduct a post-implementation review of the implementation of the SAP S4Hana project with the successful proponent being Deloitte LLP. Deloitte LLP will be providing their findings and opportunities that they were able to identify over the course of their engagement.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (August 23, 2023) 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 the Toronto Parking Authority receive this report for information.
PR3.4adopted
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. The purpose of this report is to provide a summary outlining the Toronto Parking Authority President's use of the increased delegation of authority between March 8, 2023 and August 23, 2023.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (August 23, 2023) 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 the Toronto Parking Authority receive this report for information.
PR3.5adopted
Summary of Legal Disputes - 2023 Third Quarter Update
As part of Toronto Parking Authority's operation of commercial parking, the management of tenanted properties and Bike Share Toronto, Toronto Parking Authority is dealing with a range of legal matters related to supplier disputes, personal injuries, commercial tenancy disputes and the protection of Toronto Parking Authority's registered trademarks. Toronto Parking Authority has suitable insurance in relation to such concerns, such as general liability insurance for all of its facilities; and has assigned/retained legal counsel and insurance adjusters to manage any claims. Details about the specific legal disputes are included in Confidential Attachment 1. This report is a reoccurring update provided to the Board about the status of ongoing legal disputes. The Board will be provided updates on a regular basis as substantive changes occur to the status of the specific legal disputes.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Receive the report (August 23, 2023) from the President, Toronto Parking Authority for information. 2. Direct that Confidential Attachment 1 to the report (August 23, 2023) from the President, Toronto Parking Authority remain confidential in its entirety, as it contains advice about litigation or potential litigation that affects Toronto Parking Authority and contains advice or communications that are subject to solicitor-client privilege.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of the Toronto Parking Authority receive this report for informative purposes only. 2. The Board of Directors of the Toronto Parking Authority direct that Confidential Attachment 1 remain confidential in its entirety, as it contains advice about litigation or potential litigation that affects Toronto Parking Authority and contains advice or communications that are subject to solicitor-client privilege.