Toronto Transit Commission - Audit, Finance and Risk Management Committee
The full agenda, as filed
All 3 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.
TTA5.1adopted
Audit, Risk, and Compliance - Audit Plan Status Update
Proposed Addition to the 2026 Audit Plan We propose conducting a targeted audit of areas exhibiting significant growth in overtime expenditures, with particular attention to functions showing high variances or unbudgeted overtime. This review aims to reinforce governance and support more effective oversight and optimization of overtime practices. Audit Plan Status Update The Audit, Risk, and Compliance Department (ARC) 2025 Audit Plan was presented to and approved by the Audit & Risk Management Committee (ARMC) on March 24, 2025. The ARC 2026 Audit Plan was also presented and approved on December 1, 2025. As of this update, final reports have been issued for the two remaining 2025 projects. For the 2026 Audit Plan, fieldwork is currently underway for one project, and planning activities are in progress for three others. This report provides an update on ARC's progress against the 2025 and 2026 Audit Plans and includes details on the two final reports issued since ARC's last update. ARC Follow-Up Activities Status Update ARC continues to support Management in validating the completion of Management Action Plans addressing recommendations issued by the City of Toronto Auditor General (AG) and third-party consultants involved in the work car hydraulic leak investigation. ARC also independently validates the completion of Action Plans arising from ARC's Internal Audit Findings. In addition, ARC provides advisory support to Management, including the Revenue Protection Team, across several initiatives aimed at improving fare compliance and operational performance throughout 2025 and beyond.
The Audit & Risk Management Committee: 1. Approved the inclusion of the proposed Overtime Review to the 2026 Audit Plan. 2. Received the Confidential Attachment and authorized that the information 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. Approve the inclusion of the proposed Overtime Review to the 2026 Audit Plan. 2. Receive the Confidential Attachment and authorize that the information remain confidential as it relates to the security of the property of the municipality or local board.
TTA5.2adopted
In September 2025, the International Association of Public Transport (UITP) delivered its peer review of the TTC's streetcar and subway assets and maintenance programs. The review resulted in 32 recommendations aimed at improving asset management, maintenance performance, and customer service reliability. Of the 32 recommendations, the TTC accepted 20, reserved 10 for further assessment, and considered two to require no further action. This report: Provides progress updates on the 30 outstanding UITP recommendations; Identifies those recommendations that are considered High Priority by the TTC because they have the potential to significantly impact safety or service, require additional funding, or depend on partnering with the City of Toronto; Includes timelines for management actions; and Identifies whether additional resourcing over and above approved budgets is required.
The Audit & Risk Management Committee 1. Authorized that the information in Confidential Attachment 1 remain confidential as it contains information about the security of the property of the TTC.
Staff recommendation as filed
That the Audit & Risk Management Committee 1. Authorize that the information in Confidential Attachment 1 remain confidential as it contains information about the security of the property of the TTC.
TTA5.3received
Audit, Risk and Compliance - Executive Compliance Certificates - General Counsel Submission (2025)
The Audit & Risk Management Committee (ARMC) Terms of Reference establishes the ARMC as having oversight responsibility for compliance with laws and regulations. As such, it is the responsibility of the TTC CEO, General Counsel and ARMC to maintain the public's trust by demonstrating transparency and accountability over legal compliance to reduce the risk of liability to the organization, its employees, officers, and directors. To assist the ARMC, CEO, and General Counsel in fulfilling their compliance oversight responsibilities, the Audit, Risk and Compliance Department (ARC) developed an Executive Compliance Certificate (ECC) in collaboration with the Legal Department. The ECC is conducted annually and is intended to provide a mechanism for demonstrating Executive accountability for compliance with statutes and by-laws through formal compliance assertion reporting. ARC's role is to initiate discussions on reported matters and facilitate the development and completion of appropriate Management Action Plans (MAPs). All ECCs were submitted and signed by TTC Executives for the period covering January 1 to December 31, 2025, stating that they had exercised due diligence to meet the obligations set out in the statutes, regulations, and by-laws applicable to the TTC. No new matters were identified during this period. This report summarizes the results and insights derived from ARC and the TTC General Counsel's review of signed 2025 ECCs and provides an overview of the various ECC-related activities conducted throughout 2025.
The Audit & Risk Management Committee received this item for information.