Audit Committee - General - May 12, 2014

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

• TTC Audit Report – Audit Observation of 2014 Fare Change Process, Service Delivery Group, Stations Department – Collectors (For Information) (This report involves the security of property belonging to the Commission)

Nil

Minutes from February 11, 2014

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1. Reports with Confidential Attachments
• TTC Audit Report – Audit Observation of 2014 Fare Change Process, Service Delivery Group, Stations Department - Collectors (For Information)
2. Presentations
3. Other Business
• Accounts Receivable Considered Uncollectible (For Information)
• Auditor General’s Report – Toronto Transit Commission – Results of Follow-up of Previous Audit Recommendations (For Action)
• Auditor General’s Report – Continuous Controls Monitoring Program – Toronto Transit Commission, 12-Month Review of Employees Overtime and Related Expenses, 2013 (For Action)
• TTC Audit Recommendation Performance Scorecard Report (October 2013 – March 2014) (For Information)
• TTC Audit Department Report – Quarterly Update for the Period January – March 2014 (For Information)
• TTC Audit Report – Audit of Quality Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section (For Information)
• TTC Audit Report – Audit of Central Inventory Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section (For Information) 
• TTC Audit Report – Audit of Cycle Counts and Divisional Stores Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section (For Information)
4. New Business
5. Correspondence

A correspondence summary will be distributed at the meeting.

J. Parker and A. Heisey (TTC Audit Committee), V. Rodo (Chief Financial and Administration Officer), J. Kennelly (Head of Audit), M. Roche (Head of Finance/Treasurer), J. Lee (Head of Materials and Procurement), J. Griffiths (Auditor General), and D. McDonald (Co-ordinator – Secretariat Services) were present.

J. Parker was in the Chair

C. Evoy (J. Parker’s Office) and J. Shaubel (Auditor General’s office) were also present.

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.

Commissioner Heisey moved that the TTC Audit Committee approve the minutes of the meeting held on Tuesday, February 11, 2014.
The motion by the Commissioner Heisey carried.

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

1. TTC Audit Report – Audit Observation of 2014 Fare Change Process, Service Delivery Group, Stations Department - Collectors
   The TTC Audit Committee received the confidential information as set out in Confidential Attachment 1, noting that the information is to remain confidential in its entirety as it contains information that involves the security of property belonging to the Commission.

2. Presentations

Nil

3. Other Business

1. Accounts Receivable Considered Uncollectible
   It is recommended that the Audit Committee receive this report for information.
   Received
2. Auditor General’s Report – Toronto Transit Commission - Results of Follow-Up of Previous Audit Recommendations
   J. Griffiths, Auditor General, City of Toronto, provided a high level overview of the report noting that of the 22 recommendations in the audit report 13 were considered partially implemented.
   Chair Parker noted that the TTC Board approved a report in June 2013 whereby staff concurred with the ACAT recommendation to maintain the current Wheel-Trans application process.
   The Auditor General agreed to close recommendation #4(a) based on the TTC’s position on the item.
   The TTC Audit Committee received the Auditor General’s report for information and approved forwarding the report to a regular meeting of the TTC Board for information and then to the Audit Committee of the City of Toronto.
3. Staff Response to Auditor General’s Report – Continuous Controls Monitoring Program – Toronto Transit Commission, 12-Month Review of Employees Overtime and Related Expenses, 2013
   The TTC Audit Committee approved the recommendation in the report as follows:
   “It is recommended that the TTC Audit Committee:
1. Receive the information in the attached report from the Auditor General’s Office City of Toronto on the update status of the Continuous Controls Monitoring Program – Toronto Transit Commission, 12-Month Review of Employees Overtime and Related Expenses, 2013; and
2. Approve the forwarding of the attached report to a regular meeting of the TTC Board for information and then to the Audit Committee of the City of Toronto.”
   Commissioner Heisey moved the following two ancillary motions:
1. As part of the 2015 budget process, that staff report back on possible ways to reduce overtime, including a review of Operator work rules and the spareboard complement.
2. With the reduction in subway passenger traffic on Fridays of summer long weekends, the TTC Audit Committee directed staff to report back to the June TTC Board meeting on the feasibility of starting subway closures earlier for summer long weekends.
   The motions by Commissioner Heisey carried.
   The Chair moved adoption of the report as amended.
   The motion by Chair Parker carried.
4. TTC Audit Recommendation Performance Scorecard Report (October 2013 – March 2014)
   It is recommended that the TTC Audit Committee receive the information as set out below which provides the implementation status of outstanding audit recommendations.
   Received
5. TTC Audit Department Report – Quarterly Update for the Period January – March 2014
   It is recommended that the TTC Audit Committee receive for information the attached TTC Audit Department report covering the period from January – March 2014.
   Received
6. TTC Audit Report - Audit of Quality Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section
   It is recommended that the TTC Audit Committee receive for information the attached TTC Audit Report.
   Received
7. TTC Audit Report – Audit of Central Inventory Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section.
   It is recommended that the TTC Audit Committee receive for information the attached TTC Audit Report.
   Received
8. TTC Audit Report – Audit of Cycle Counts and Divisional Stores Control – Corporate Services Group, Materials and Procurement Department, Materials Management Section.
   It is recommended that the TTC Audit Committee receive for information the attached TTC Audit Report.
   Received

4. New Business

Nil

5. Correspondence

Nil

The meeting adjourned at 3:35 p.m.