Audit Committee - General - April 25, 2013

Resolution to conduct a portion of the meeting in the absence of the public (Committee of the Whole) in accordance with

Section 29 of the TTC By-law to Govern Commission Proceedings and Section 190 of the City of Toronto Act

1. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2012 (For Action) (This report contains advice that is subject to solicitor-client privilege.

2.  Audit Report – January 1, 2013 Fare Change (For Information)(This report involves security of property belonging to the Commission)

3. Audit Report – Revenue Operations – Main Vault Controls Review (For Information)(This report involves security of property belonging to the Commission)

Requests to speak must be registered in writing by 12:00 Noon of day preceding meeting day.

1. Reports with confidential attachments
• PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission
• Audit Report – January 1, 2013 Fare Change
• Audit Report – Revenue Operations – Main Vault Controls Review
2. Presentations
3. Other business
• Draft Consolidated Financial Statements of Toronto Transit Commission for the Year
• Accounts Receivable Considered Uncollectible (For Information)
• Draft Annual Report for the Toronto Transit Commission for 2012
• TTC Audit Recommendation Performance Scorecard Report (October 2012 – March 2013) (For Information)
• TTC Audit Department Report – Quarterly Update For The Period January To March
• Auditor General’s Report – TTC Employees Overtime and Related Expenses – Continuous Controls Monitoring (For Action)
• Staff Response – Auditor General’s Report – Review of Wheel-Trans Services – Sustaining Level and Quality of Service Requires Changes to the Program (For Action)
4. New Business
5. Correspondence

A correspondence summary will be distributed at the meeting.

J. Parker and P. Milczyn (TTC Audit Committee), V. Rodo (Chief Financial and Administration Officer), D. Dixon (Chief Operating Officer), C. Upfold (Acting Chief Service Officer), J. Kennelly (Head of Audit), M. Roche (Head of Finance/Treasurer), P. Buttigieg (Director – Budgets/Costs/Financial Reporting), S. Tippett (Manager – Financial Statements), E. Thomas (Supervisor – Accounting Policy & Financial Reporting), C. Russell and E. Mascoll (PricewaterhouseCoopers Inc.) A. Ash (City Auditor General’s office), and D. McDonald (Co-ordinator – Secretariat Services) were present.

J. Parker was in the Chair

Nil

Chair Parker moved that the Committee recess to meet as the Committee of the Whole to receive advice which is subject to solicitor-client privilege and to deal with issues involving the security of property belonging to the Commission.

The motion by Chair Parker carried.

Reconvened
Meeting Open to the Public – 2:05 p.m.
Committee Room 3, City Hall

P. Milczyn moved that the TTC Audit Committee approve the minutes of the meeting held on Tuesday, February 19, 2013.

The motion by Commissioner Milczyn carried.

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1. Reports with Confidential Attachments (Committee Of The Whole)

(a) PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2012

Cathy Russell of PricewaterhouseCoopers presented a summary of the report to the Committee.

The TTC Audit Committee:

1) Received the report from PricewaterhouseCoopers LLP (“PWC”), including the information noted in the confidential attachment, regarding the audit of the consolidated financial statements of the Toronto Transit Commission for the year ended December 31, 202, for information;

2) Approved the forwarding of the report to a regular meeting of the Board for information and then to the City Council through the Audit Committee of the City of Toronto; and

3) Noted that the information as set out in Confidential Attachment is to remain confidential in its entirety as it contains information which is subject to solicitor-client privilege.

(b) Audit Report – January 1, 2013 Fare Change

The TTC Audit Committee received the confidential information as set out in Confidential Attachment1, noting that the information is to remain confidential in its entirety as it involves the security of property belonging to the Commission.

(c) Revenue Operations – Main Vault Controls Review

The TTC Audit Committee received the confidential information as set out in Confidential Attachment1, noting that the information is to remain confidential in its entirety as it involves the security of property belonging to the Commission.

2. Presentations

Nil

3. Other Business

(a) Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2012

The TTC Audit Committee:

1) Approved the draft consolidated financial statements of the Toronto Transit Commission for the year ended December 31, 2012; and

2) Approved forwarding the consolidated financial statements to a regular meeting of the Board for formal approval, then to the City Council for information through the Audit Committee of the City of Toronto.

(b) Accounts Receivable Considered Uncollectible

The TTC Audit Committee received the report for information.

(c) Draft Annual Report for the Toronto Transit Commission for 2012

The TTC Audit Committee approved the draft Annual Report of the Toronto Transit Commission for the year 2012.

(d) TTC Audit Recommendation Performance Scorecard Report (October 2012 – March 2013)

The TTC Audit Committee received the report, which provides the implementation status of outstanding audit recommendations, for information.

(e) TTC Audit Department Report – Quarterly Update for the Period January to March 2013

The TTC Audit Committee received for information, the Audit Department report covering the period from January to March 2013.

(f) Auditor General’s Report – TTC Employees Overtime and Related Expenses – Continuous Controls Monitoring
A. Ash, City Auditor General’s office, participated in a brief discussion of the report.

The TTC Audit Committee:

1) Received the report from the Auditor General’s Office, City of Toronto on the update status of the TTC Employees Overtime and Related Expenses – Continuous Controls Monitoring, for information; and

2) Approved forwarding the report to a regular meeting of the City Audit Committee.

J. Kennelly advised the Committee that the report would be submitted to a regular meeting of the TTC Board prior to it being forwarded to the City Audit Committee.

(g) Staff Response to Auditor General’s Report – Review of Wheel-Trans Services – Sustaining Level and Quality of Service Requires Changes to the Program

The TTC Audit Committee:

1) Received for information the staff response to the Auditor General’s Report; and

2) Approved forwarding the report to the City Audit Committee.

J. Kennelly advised the Committee that the report would be submitted to a regular meeting of the TTC Board along with ACAT’s final comments prior to it being forwarded to the City Audit Committee.

4. New Business

Nil

5. Correspondence

Nil

The meeting adjourned at 3:10 p.m.