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.
PR8.1adopted
Audit and Risk Management Committee - Auditor's 2024 Work Plan
This report presents the Auditor's 2024 Audit Work Plan for the audited financial statements for the Toronto Parking Authority for the year ended December 31, 2024. KPMG Audit Partner, Kevin Travers, will be attending the November 5, 2024 Audit and Risk Management Committee meeting to review with the Committee, the work plan to deliver the audit for the Toronto Parking Authority's 2024 Financials (see Attachment 1).
The Toronto Parking Authority - Audit and Risk Management Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Receive the report (October 22, 2024) 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.
PR8.2adopted
Toronto Parking Authority Enterprise Risk Management
Enterprise Risk Management (ERM) is a continuous process to identify and assess risks and opportunities at an enterprise level. The Toronto Parking Authority completed the setup of the Enterprise Risk Management program in April 2024. With the support of KPMG, in line with industry good practices, Toronto Parking Authority has designed and implemented an Enterprise Risk Management program following a five-step risk management process of: 1. Risk Identification 2. Risk Prioritization 3. Risk Assessment and Treatment 4. Risk Governance Structure 5. Risk Monitoring and Reporting The purpose of this report is for the Executive Leadership team to provide a semi-annual Enterprise Risk Management update report to the Audit and Risk Management committee on the status of ongoing and completed action plans (mitigation strategies).
The Toronto Parking Authority - Audit and Risk Management Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Receive the report (October 22, 2024) 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.
PR8.3adopted
In today's digital age, cyber threats have become increasingly sophisticated, presenting unprecedented challenges to organizations worldwide. The Toronto Parking Authority stands at a crucial intersection where protecting our digital infrastructure is not just about preventing attacks - it's about safeguarding our operational integrity and maintaining public trust. As we navigate this complex landscape, our proactive approach to cybersecurity has become more vital than ever. Our ongoing collaboration with the City of Toronto's Chief Information Security Office (CISO) and Chief Technology Officer (CTO) and our commitment to regular independent security audits have revealed both challenges and opportunities. While cyber-attacks continue to evolve - attempting to breach systems, compromise confidential data, and disrupt essential services - our defensive capabilities have matured significantly. The stakes are exceptionally high: a single successful breach could impact operational systems, compromise sensitive data, and potentially erode public confidence in our services. However, with these challenges come opportunities for transformation. Our strategic investments in cybersecurity are not merely defensive measures; they represent a commitment to operational excellence and digital innovation. By strengthening our security infrastructure, we're not only protecting against threats but also building a more resilient, efficient, and trusted organization. Our proactive threat detection systems, coupled with advanced incident response capabilities, position us to not just react to threats but to anticipate and neutralize them before they materialize. The path forward is clear: by continuing to invest in and enhance our cybersecurity measures, we're not just protecting against threats - we're building a foundation for sustainable digital operations that our customers and stakeholders can trust. Our security initiatives represent a crucial investment in Toronto Parking Authority's future, ensuring we remain resilient and adaptable in an ever-evolving digital landscape. The confidential attachment accompanying this report outlines our technology investments and security enhancements critical to maintaining our defensive posture. Given the sensitive nature of these security matters relating to City assets and infrastructure, this presentation will take place in a closed session.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Direct that Confidential Attachment 1 to the report (October 21, 2024) 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, Toronto Parking Authority, recommends that: 1. The Board of Directors of the 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.
PR8.4adopted
Toronto Parking Authority - 2025 Operating Budget and 2025-2027 Capital Budget
The Board received the proposed budget for information at its meeting on October 18, 2024. The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors with Management's recommended 2025 Operating Budget and 2025 - 2027 Capital Budget in further detail. Formal approval will be requested at the November 29, 2024 Board meeting where Management will also present the 2025 Annual Operating Plan. This timeline affords both the Board and Management sufficient opportunity to discuss the proposed budget and the 2025 Annual Operating Plan, while adhering to the City's Budgetary process. Building off a strong performance through the first two quarters of 2024, Management is forecasting full year net income of $41.1 million and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of $54.2 million which is +$9.2 million and +$6.5 million, respectively, versus 2024 plan. Revenues are forecasted at a historic high of $166.4 million, +$6.8 million versus plan while operating expenses are forecasted at $112.3 million which is $0.4 million unfavorable due to higher volume related costs. As expected, cash reserves will end the year at $28.3 million, representing a $36.2 million decline versus 2023 due to execution of our 2024 capital expenditures of $65.7 million and settlement of intercompany transfers with the City. Capital delivery highlights in 2024 include the continued expansion of Bike Share Toronto with 78 new stations, 350 new e-docks and 160 e-bikes added to the network. With a focus on driving the productivity of Toronto Parking Authority's off-street facilities, Management continues to prioritize the expansion of Toronto Parking Authority's electric vehicle (EV) charging network by adding 38 off-street EV chargers in 2024, increasing the overall network size from 407 to 445 EV chargers. In Q4 2024, Toronto Parking Authority will welcome the transfer of two (2) new parking garages, including St. Lawrence Market North (Car Park 72) and 121 St. Patrick Street (Car Park 221). These acquisitions together account for more than $20 million of the forecasted capital spend in 2024. A further $20+ million was invested to address health & safety issues and state-of-good-repair (SOGR) projects at three (3) of Toronto Parking Authority's high-velocity parking garages, while 339 new Pay-by-Plate machines have been deployed in support of equipment modernization and improved customer experience. Management remains on track to deliver 94%+ of the Toronto Parking Authority-led capital spend, while reducing the enterprise risk profile by actioning targeted spend. Total capital spend for 2024 is forecasted to be $65.7 million versus the Board-approved plan of $71.3 million. In 2025, Management is forecasting record top line performance with planned revenues of $182.6 million (+$16.2 million versus 2024 Forecast). Growth in revenues will be driven by rate changes on the parking channel of the business, Toronto Parking Authority's monthly permit campaign with a focus on B2B customer acquisitions and incremental inventory. Full year Earnings before Interest, Taxes, Depreciation and Amortization of $60.8 million is planned which is +$6.7 million versus 2024 Forecast and +$13.1 million versus 2024 Plan. 2025 Net income is forecasted at $41.9 million, which includes $3.4 million in finance income and $22.3 million of amortization resulting from capital spend. The proposed 2025 Capital plan of $55.6 million is designed to support Management's continued execution against Toronto Parking Authority's five (5) Strategic Objectives: Build a Great Place to Work; Drive Sustainable Growth; Strengthen the Core, Execute with Excellence; Connect with our Customers; and Engage and Innovate with our Strategic Partners. Furthermore, our capital investments will serve to reduce many of our enterprise risks outlined in our Enterprise Risk Management Strategy. Management is not anticipating any carry forward amounts from 2024 to be included in the attached budget submission. In June of 2024, City Council approved the terms and conditions of a new City of Toronto - Toronto Parking Authority Net Income Share Agreement that will ensure that Toronto Parking Authority has access to sufficient retained earnings to both fund its Capital Program and continue to make annual contributions to the City of Toronto. Under the new framework, the net income sharing formula has been adjusted to increase the percentage of net income that Toronto Parking Authority retains from its operations from 15 percent to 25 percent consistent with pre-2017 levels. This adjustment will provide Toronto Parking Authority with the incremental net income over the next three (3) years to support the execution of Toronto Parking Authority's state-of-good-repair program and continued investments in equipment modernization supporting our growth strategy. In addition, the City will provide $48 million over the next three (3) years in direct funding for the continued capital expansion of Toronto Parking Authority's Bike Share Toronto and Off-Street EV Charging programs.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Approve the proposed 2025 Operating Budget and 2025 - 2027 Capital Budget for Toronto Parking Authority. 2. Approve the modified rates for on-street parking locations identified in Attachments 2 and 2-2 to the report (October 22, 2024) from the President, Toronto Parking Authority. 3. Direct the President, Toronto Parking Authority, to request the City Solicitor to submit bills to City Council to make amendments to the appropriate Chapters of the Toronto Municipal Code to implement the rates for on-street parking locations identified in Attachments 2 and 2-2 to the report (October 22, 2024) from the President, Toronto Parking Authority. 4. Approve the rates at the off-street parking facilities identified in Attachment 3-2 to the report (October 22, 2024) from the President, Toronto Parking Authority. 5. Provide authority for the President, Toronto Parking Authority to establish market rates for special event parking at off-street parking facilities and at off-street facilities that Toronto Parking Authority operates for private landowners, on an as-needed basis.
Staff recommendation as filed
The President, Toronto Parking Authority, recommends that the Board of Directors of the Toronto Parking Authority: 1. Approve the proposed 2025 Operating Budget and 2025 - 2027 Capital Budget for Toronto Parking Authority. 2. Approve the modified rates for on-street parking locations identified in Attachments 2 and 2-2. 3. Direct the President, Toronto Parking Authority, to request the City Solicitor to submit bills to City Council to make amendments to the appropriate Chapters of the Toronto Municipal Code to implement the rates for on-street parking locations identified in Attachments 2 and 2-2 to this report. 4. Approve the rates at the off-street parking facilities identified in Attachment 3-2 to this report. 5. Provide authority for the President, Toronto Parking Authority to establish market rates for special event parking at off-street parking facilities and at off-street facilities that Toronto Parking Authority operates for private landowners, on an as-needed basis.
PR8.5adopted
Delegation of Authority Update
At its meeting of November 8, 2021, the Board of Directors of the 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. At its meeting of July 19, 2024, Toronto Parking Authority Board of Directors approved proposed amendments to Toronto Parking Authority Policy Resolution 5-10: Delegation of Authority as outlined in Appendix B to the report (June 11, 2024) from the President, Toronto Parking Authority. The approved amendments recognize the authorities under Toronto Parking Authority Policy Resolution 5-7: Procurement for the President to award a contract through a non-competitive procurement process in an amount not exceeding $250,000. Where the President uses this authority, Management has committed to providing a summary of the purchasing activity in its regular Delegation of Authority update to the Audit and Risk Management Committee. 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 September 7 and October 22, 2024.
The Toronto Parking Authority - Audit and Risk Mangement Committee recommends that the Board of Directors of the Toronto Parking Authority: 1. Receive the report (October 19, 2024) 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.