Audit and Risk Management Committee - May 29, 2017

That the Committee recess as the Committee of the Whole to deal with litigation or potential litigation matters, labour relations, employee negotiations, security of the property, to receive advice which is subject to solicitor client privilege and for the purpose of education/training.

Meeting No. 7 held on Wednesday, February 8, 2017
Meeting No. 8 held on Thursday, February 9, 2017

 

Requests to speak must be registered by noon of the business day preceding meeting day. A final deputation list will be distributed at the meeting.

1. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statement for the Year-Ended December 31, 2016
2. Draft Consolidated Financial Statements of Toronto Transit Commission for Year-Ended December 31, 2016
3. Draft Annual Report for the Toronto Transit Commission for 2016 (For Action)
4. Accounts Receivable Considered Uncollectible (For Action)
5. Auditor General’s Report – Toronto Transit Commission – Results of 2017 Follow-up of Previous Audit Recommendations (For Action)
6. Auditor General’s Report – Toronto Transit Commission – Review of Toronto Transit Commission Procurement Policies and Practices: Improving Materials Management and Purchasing Policies Can Potentially Result in Significant Savings(For Action)
   1. Auditor General’s Report – Toronto Transit Commission – Review of Toronto Transit Commission Procurement Policies and Practices: Improving Materials Management and Purchasing Policies Can Potentially Result in Significant Savings Presentation
   2. Auditor General’s Report – Toronto Transit Commission – Review of Toronto Transit Commission Procurement Policies and Practices - TTC Management Presentation
7. Internal Audit Activities – Quarterly Update Q1 2017 (This report involves the security of the property of the municipality or local board) (For Action)
8. TTC Top Risks Update (Deferred from October 19, 2016) (For Information)

9. Education Session: Workforce Planning (Bus Operators)

J. Colle (Chair), R. Byers and R. Lalonde (Members), A. Byford, M. Palmer, S. Reed Tanaka, V. Rodo, J. Taylor, J. Ross, T. Bal, T. Coelho, M. Ismail, C. Leach and C. Finnerty. C. Russell (PricewaterhouseCoopers) was present for Items 1 and 2. D. Campbell, M. Galea, M. MacRae, M. Mis and E. Stassen were present for Item 9. D. Magisano (Mayor’s Office) was also present. J. Colle was in the Chair.

J. Campbell (Chair), R. Byers and R. Lalonde (Members), C. Upfold (Deputy CEO & Chief Customer Officer), V. Rodo (Chief Financial & Administration Officer), S. Reed Tanaka (Chief Capital Officer), J. Taylor (Chief of Staff), J. O'Grady (Chief Safety Officer), M. Palmer (Acting Chief Operating Officer), T. Bal (Head of Audit), M. Roche (Head of Finance & Treasurer), P. Buttigieg (Director - Budgets, Costing & Financial Reporting), M. Ismail (Principal Risk Advisor), C. Leach (Manager - Audit), T. Coelho (Manager - Audit), S. Tippett (Manager – Financial Statements), K. Lee (Head - Commission Services) and C. Finnerty (Co-ordinator – Secretariat Services) were present.

J. Colle (Chair), R. Byers and R. Lalonde (Members), A. Byford (Chief Executive Officer), M.Palmer (Chief Operating Officer), S. Reed Tanaka (Chief Capital Officer), V. Rodo (ChiefFinancial & Administration Officer), J. Taylor (Chief of Staff), J. Ross (Deputy Chief Operating Officer), T. Bal (Head of (Internal Audit), T. Coelho (Internal Audit Manager), M. Ismail (Principal Risk Advisor), C. Leach (Manager - Audit), C. Penman (Group Station Manager), R.Wong (Head of Streetcar Maintenance & Infrastructure), T. Zlotnik (Head – Materials andProcurement), W. Hafez (Risk Advisor) and C. Finnerty (Co-ordinator - Secretariat Services)were present.

Nil

Commissioner Lalonde moved that the Audit & Risk Management Committee approve theminutes of the meeting held on Wednesday, February 8, 2017 and Thursday, February 9,2017.

The motion by Commissioner Lalonde carried.

Nil

Nil

1. PricewaterhouseCoopers LLP Audit Results Report on the Toronto Transit Commission Consolidated Financial Statement for the Year-Ended December 31, 2016

The Audit & Risk Management Committee:

1. Received the report and information provided in Closed Session; and
2. Approved forwarding a copy of the report to the TTC Board and then to the CityClerk for appropriate handling. 

Approved

2. Draft Consolidated Financial Statements of Toronto Transit Commission for Year-Ended December 31, 2016

The Audit & Risk Management Committee: 1. Approved the report; and 2. Received the information provided in Closed Session; and

2. Approved forwarding a copy of the approved consolidated financial statements ofthe TTC to the TTC Board and then to the City Clerk for appropriate handling.

 Approved

3. Draft Annual Report for the Toronto Transit Commission for 2016;

It is recommended that the Audit & Risk Management Committee:

1. Approve the report.

 Approved

4. Accounts Receivable Considered Uncollectible

The Committee received this report for information.

5. Auditor General’s Report – Toronto Transit Commission – Results of 2017 Follow-up of Previous Audit Recommendations

B. Romeo-Beehler, Auditor General, City of Toronto delivered a PowerPoint presentation to the Committee on this item.

The Audit & Risk Management Committee:

1. Received the report; and
2. Approved forwarding a copy of the report to the TTC Board for appropriate handling.

 Approved

6. Auditor General’s Report – Toronto Transit Commission - Review of Toronto Transit Commission Procurement Policies and Practices: Improving Materials Management and
Purchasing Policies Can Potentially Result in Significant Savings. 

B. Romeo-Beehler, Auditor General, City of Toronto delivered a PowerPoint presentation to the Committee on this item.

T. Zlotnik, Head – Materials and Procurement, TTC, delivered a PowerPoint presentation to the Committee on this item.
Chair Colle moved the following motion:

That the Audit & Risk Management Committee receive this report, and approve forwarding a copy of the report along with the response from TTC management to the TTC Board.

The motion by Chair Colle carried.

7. Internal Audit Activities – Quarterly Update: Q1 2017 It is recommended that the TTC Audit & Risk Management Committee:

1. Receive Internal Audit Activities – Quarterly Update: Q1 2017 with Rolling Stock (T1 – HVAC – “Hot Cars”) attachment, and 

2. Receive the confidential information and as set out in the confidential attachment on Fraud Deterrence Internal Audit Activities: Q1 2017, and the direction provided in Closed Session, noting that it is to remain confidential it its entirety as it involves the security of the property of the municipality or local board.

Approved

8. TTC Top Risks Update The Committee received this report for information.

9. Education Session: Workforce Planning (Bus Operators) The Committee received an in-camera training session on workforce planning, specifically related to bus operators.

The meeting adjourned at 4:23 p.m.