Toronto Transit Commission - Audit, Finance and Risk Management Committee
The full agenda, as filed
All 6 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.
TTA2.1adopted
This report appends the Audit Findings Report from KPMG LLP's (KMPG) audit of the TTC's consolidated financial statements for the year ended December 31, 2024. The KPMG Audit Findings Report, in addition to providing an overview of the audit results, specifically details any key audit risks identified, testing procedures performed to address them, and resulting conclusions. KPMG proposes to issue an unqualified Independent Auditor's Report on the TTC's consolidated financial statements for the year ended December 31, 2024.
The TTC Audit & Risk Management Committee: 1. Received the KPMG LLP Audit Findings Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2024, in Attachment 1; and 2. Forwarded a copy of this report to the TTC Board for its meeting on June 23, 2025, and subsequently to the City Clerk for appropriate handling to the next City Audit Committee meeting.
Staff recommendation as filed
It is recommended that the TTC Audit and Risk Management Committee: 1. Receive the KPMG LLP Audit Findings Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2024, in Attachment 1; and 2. Forward a copy of this report to the TTC Board for its meeting on June 23, 2025, and subsequently to the City Clerk for appropriate handling to the next City Audit Committee meeting.
TTA2.2adopted
The TTC is required to prepare audited annual financial statements under Public Sector Accounting Standards and to forward them to City Council for information through the City's Audit Committee. Effective January 1, 2024, the TTC implemented PS 3400 Revenue, PS 3160 Public Private Partnerships, and PSG-8 Purchased Intangibles. PS 3400 Revenue was adopted on a prospective basis, as permitted by the transitional provisions. As a result, no prior period amounts were restated for comparative purposes. For PS 3160 Public Private Partnerships and PSG-8 Purchased Intangibles, the TTC determined that the adoption did not have an impact on the amounts presented in the Financial Statements. The 2024 accounting surplus is $503.2 million, which reflects an increase of $49.3 million over the 2023 accounting surplus and is comprised mainly of the value of subsidy revenue earned on capital asset additions, and other expenses funded through capital programs, such as environmental liabilities and asset retirement obligations, partially offset by the depreciation of assets in use. Operating activities do not generally contribute to the accounting surplus or shortfall, as operating expenses are funded in full by operating revenues and subsidies received.
The TTC Audit & Risk Management Committee: 1. Received the appended Draft Consolidated Financial Statements of Toronto Transit Commission for the year ended December 31, 2024; and 2. Forwarded this report and the appended Draft TTC Consolidated Financial Statements for approval at the June 23, 2025 Board meeting, and subsequently to the City Clerk for submission to the next City Audit Committee meeting.
Staff recommendation as filed
It is recommended that the TTC Audit and Risk Management Committee: 1. Receive the appended Draft Consolidated Financial Statements of Toronto Transit Commission for the year ended December 31, 2024; and 2. Forward this report and the appended Draft TTC Consolidated Financial Statements for approval at the June 23, 2025 Board meeting, and subsequently to the City Clerk for submission to the next City Audit Committee meeting.
TTA2.3adopted
Draft Annual Report for the Toronto Transit Commission for 2024
Each year, the TTC prepares an Annual Report, which presents the consolidated financial statements of the TTC and its subsidiaries as well as non-financial statement information, including: Chair's Message, CEO's Message, Annual Highlights, Management's Statement, Statistical Information, and Management Directory. This report presents the materials other than the financial statements, which will be included in the 2024 TTC Annual Report. The 2024 Consolidated Financial Statements have been submitted for Audit and Risk Management Committee consideration through the companion report, "Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2024".
The TTC Audit & Risk Management Committee: 1. Approved the non-financial statement information to be published in the 2024 TTC Annual Report.
Staff recommendation as filed
It is recommended that the TTC Audit and Risk Management Committee: 1. Approve the non-financial statement information to be published in the 2024 TTC Annual Report.
TTA2.4referred
2024 Uncollectible Accounts Receivable
The Uncollectible Accounts Receivable report is submitted annually to the Audit and Risk Management Committee for its information in accordance with the TTC's Authorization for Expenditures and Other Commitments Policy. The total value of uncollectible accounts written off for 2024 amounted to $635,252.34, and the total annual receivables amounted to $335 million, yielding a collection rate of 99.82%. This report provides information on accounts receivable amounts written off as uncollectible in 2024 under delegated authority.
The TTC Audit & Risk Management Committee referred this item to staff for additional information, to be reported to the Audit & Risk Management Committee at its next regular meeting.
TTA2.5adopted
Annual Review of TTC’s Safety, Health & Environment (SH&E) Management System
The Toronto Transit Commission (TTC) continues to manage and mitigate occupational health and safety, operational safety as well as environmental risks due to its operations, activities, and services in a systematic manner through the implementation and maintenance of its Safety, Health & Environment (SH&E) Management System. A SH&E Management System is a comprehensive and proactive approach to managing SH&E risk. The system goes beyond a simple sum of individual or isolated safety and environmental management programs and activities, such as investigation, inspection, or training. It is designed to improve SH&E performance and reduce risk by integrating all its processes into a continuous improvement cycle of Plan, Do, Check, and Act. A review of the TTC's SH&E Management System is conducted by the TTC's internal Safety, Security, and Environment Executive (SX) Committee on an annual basis. The purpose of the review is to evaluate the suitability, adequacy, and effectiveness of the SH&E Management System, ensuring the ongoing management of SH&E risk. The current review assessed the TTC's SH&E performance in 2024. The review was completed through analysis of the following inputs: Key Performance Indicators related to occupational health and safety, customer and public safety, operational safety, security, fire and life safety, and capital projects safety; Status of key SH&E projects and initiatives, highlighting significant developments in 2024; Audit and investigation findings, including the American Public Transportation Association's (APTA's) safety peer review conducted by a team of transit professionals; and Regulatory oversight, including legislative changes, regulatory agency interactions, and compliance status. This report also includes updates on the TTC's corporate-level SH&E goals and objectives for 2024 to 2028. The goals and objectives have been updated and restructured to better support the continuous improvement of the SH&E Management System. The TTC also completed an annual review of the TTC Safety, Health, and Environment Policy and TTC Workplace Violence Policy, as required under the Ontario Occupational Health & Safety Act (OHSA). No changes were made to the policies as a result of this review. The TTC also reviewed and updated its Respect and Dignity Policy, effective March 31, 2025. The TTC's Safety and Environment Department engaged with Union executives in December 2024 to discuss opportunities to strengthen communication regarding safety policy and program development. In 2025, additional information was shared with Union executives, including an update on the annual review process. This report summarizes the full report of the annual review, which was approved by the SX Committee on April 17, 2025.
The TTC Audit & Risk Management Committee: 1. Reaffirmed support for the approach to continuously improving the effectiveness of the TTC's Safety, Health & Environment Management System, identifying priority safety, health, and environment issues, and developing the TTC's safety, health, and environment goals and objectives, as described in this report.
Staff recommendation as filed
It is recommended that the Audit & Risk Management Committee: 1. Reaffirm support for the approach to continuously improving the effectiveness of the TTC's Safety, Health & Environment Management System, identifying priority safety, health, and environment issues, and developing the TTC's safety, health, and environment goals and objectives, as described in this report.
TTA2.6adopted
Fare Compliance Action Plan - Update
The Audit & Risk Management Committee will receive an in-camera presentation, providing an update on the Fare Compliance Action Plan.
The TTC Audit & Risk Management Committee: 1. Received the Confidential Attachment and authorized that the information contained in the Confidential Attachment remain confidential as it relates to the security of the property of the municipality or local board.
Staff recommendation as filed
It is recommended that the Audit & Risk Management Committee: 1. Receive the Confidential Attachment and authorize that the information contained in the Confidential Attachment remain confidential as it relates to the security of the property of the municipality or local board.