AUDIT COMMITTEE

A G E N D A

DECLARATIONS OF INTEREST PURSUANT TO

THE MUNICIPAL CONFLICT OF INTEREST ACT.

CONFIRMATION OF THE MINUTES OF THE MEETING OF JULY 21, 1998.

COMMUNICATIONS/REPORTS.

1.REPORTING RELATIONSHIP OF THE AUDIT COMMITTEE AND THE CITY AUDITOR

City Clerk

(August 10, 1998)

Forwarding Clause No. 8 contained in Report No. 10 of The Special Committee to Review the Final Report of the Toronto Transition Team headed, "Reporting Relationship of the Audit Committee and the City Auditor", which was adopted, without amendment, by the Council of the City of Toronto at its meeting held on July 29, 30 and 31, 1998; and in so doing adopted the following:

That the Procedural By-law be amended to provide that:

(1)the Audit Committee report directly to Council; and

(2)the City Auditor report to Council through the Audit Committee.

2.AUDIT DIVISION RESTRUCTURING AND STAFF REDEPLOYMENT - UPDATE

City Auditor

(August 31, 1998)

Forwarding the foregoing report and recommending receipt for information.

3.1997 OVER-EXPENDITURE - INFORMATION SERVICES DIVISION - FORMER CITY OF TORONTO

City Auditor

(June 23, 1998)

Recommending that:

(1)in view of the budget implications, the Commissioner of Corporate Services report the 1997 over-expenditures in the Information Technology Services Division (ITSD) of the former City of Toronto and the action taken to date, to the Budget Committee, for information;

(2)the Executive Director, Information Technology perform a review of the agreement with the outside provider of data processing services at the former City of Toronto, to confirm the nature of services provided, the cost of all charges and the budget implications on the division's 1998 and future budgets;

(3)the 1998 budget of the Information Technology Division be monitored to determine the potential impact of unbudgeted commitments on the division, and appropriate action taken; and

(4)the Chief Financial Officer and Treasurer finalize the necessary budget control processes, including the provision of effective management reports, to assist departments in monitoring expenditures against budget. (Deferred from July 21,1998 meeting)

(A)Commissioner of Corporate Services

(June 26, 1998)

Responding to the City Auditor.

(B)Commissioner of Corporate Services

(August 19, 1998)

Providing more information to Audit Committee, as requested at its meeting held on July 21, 1998.

4.MANAGEMENT LETTER - COMMITTEE OF MANAGEMENT FOR MCCORMICK PLAYGROUND ARENA

City Auditor

(June 24, 1998)

Recommending that the 1997 management letter and corresponding response relating to the audit of the financial statements of the Committee of Management for McCormick Playground Arena, be received and forwarded to Council for information.

(Deferred from the July 21, 1998 meeting)

5.MANAGEMENT LETTER - METROPOLITAN TORONTO PENSION PLAN AND METROPOLITAN TORONTO POLICE BENEFIT FUND

City Auditor

(August 5, 1998)

Recommending that the 1997 management letter and the corresponding response relating to the audits of the accounts of the Metropolitan Toronto Pension Plan and Metropolitan Toronto Police Benefit Fund of the Department of Finance, be received for information.

(A)Chief Financial Officer and Treasurer

(August 31, 1998)

Responding to issues raised in the City Auditor's 1997 Management letter as it specifically relates to the Metropolitan Toronto Pension Plan and the Metropolitan Toronto Police Benefit Fund and recommending that the foregoing report be received for information.

6.MANAGEMENT LETTER - METROPOLITAN TORONTO HOMES FOR THE AGED DIVISION - YEAR ENDED DECEMBER 31, 1997

City Auditor

(August 31, 1998)

Recommending that the management letter of the Metropolitan Toronto Homes for the Aged Division dated April 23, 1998, be received for information.

(A)Commissioner of Community and Neighbourhood Services and

General Manager, Homes for the Aged Division

(August 26, 1998)

Forwarding the response and action plan of the Homes for the Aged Division, to the recommendations contained in the Management Letter, outlined in the foregoing report and recommending that the report be received for information.

7.MANAGEMENT LETTER - METROPOLITAN TORONTO HOUSING COMPANY LIMITED - YEAR ENDED DECEMBER 31, 1997

City Auditor

(August 27, 1998)

Recommending that the management letter of the Metropolitan Toronto Housing Company Limited dated May 15, 1998, be received for information.

(A)Corporate Secretary, Metropolitan Toronto Housing Company Limited

(August 4, 1998)

Forwarding the response of the Board of Directors of the Metropolitan Toronto Housing Company Limited to the Management Letter and advising that the Board received, as information, the report from the General Manager, together with the Auditor's Report and Management's Response on the review of internal controls and accounting procedures of the Housing Company.

8.MANAGEMENT LETTER - EXHIBITION PLACE

City Auditor

(July 28, 1998)

Recommending that the management letter for Exhibition Place be received for information.

9.MANAGEMENT LETTER - AUDIT OF THE ACCOUNTS OF THE FORMER CITY OF YORK

KPMG, Chartered Accountants

(June 24, 1998)

Forwarding their management letter relating to the financial statements of the former City of York for the year ended December 31, 1997. (Deferred from the July 21, 1998 meeting)

10.FINANCIAL STATEMENTS OF THE KENNEDY ROAD BUSINESS IMPROVEMENT PLAN

Chief Financial Officer and Treasurer

(July 17, 1998)

Recommending that the Financial Statements of the Kennedy Road Business Improvement Plan be received for information (Deferred from the July 21, 1998 meeting)

11.METROPOLITAN TORONTO COACH TERMINAL INC. - FINANCIAL STATEMENTS - YEAR ENDED DECEMBER 31, 1997

Urban Environment and Development Committee

(July 14, 1998)

Forwarding a communication (June 23, 2998) from the General Secretary, Metropolitan Toronto Coach Terminal Inc. (MTCTI) regarding MTCTI's Financial Statements for the year ended December 31, 1997, and

Advising that the Urban Environment and Development Committee received the aforementioned Financial Statements and requested the General Secretary, Metropolitan Toronto Coach Terminal Inc. to submit a report to the Audit Committee regarding Note (6) "Economic Dependence". (Deferred from the July 21, 1998 meeting)

(A)IN CAMERA

General Secretary, Metropolitan Toronto Coach Terminal Inc.

(July 20, 1998)

Responding to the request of the Urban Environment and Development Committee arising from the July 13, 1998, meeting, concerning Note 6 to the Financial Statements.

12.CORSO ITALIA BUSINESS IMPROVEMENT AREA (BIA)

City Auditor

(August 28, 1998)

Recommending that:

(1)the report (August 28, 1998) be forwarded to the Corso Italia Board of Management and that the administrative improvements outlined in the report be implemented;

(2)the City Auditor conduct a review, in consultation with the Commissioner of Economic Development, Tourism and Culture, with respect to the administration of Business Improvement Areas, such review to include the handling of surpluses/deficits, accounting, preparation of financial statements and other related issues, to ensure proper business practices and procedures are followed by all BIA's across the City; and

(3)the report (August 28, 1998) be forwarded to the Budget Committee for information.

13.CHLORINE CONTRACT

City Auditor

(August 4, 1998)

Providing a commencement date respecting the award of a contract to supply chlorine, as requested by Council, and recommending that the report be received for information.

14.RELOCATION OF CANADA'S SPORTS HALL OF FAME TO OTTAWA

City Auditor

(August 31, 1998)

Reporting as requested, and recommending that the report be received for information.

15.SHEPPARD SUBWAY PROJECT COST OVERRUNS

City Auditor

(August 31, 1998)

Recommending that the foregoing report be received for information and forwarded to the Budget Committee.

(A)Budget Committee

July 15, 1998)

Forwarding a copy of the communication (July 10, 1998) from the Toronto Transit Commission, and the action of the Committee from its meeting of July 13, 1998, requesting that the Audit Committee meet as soon as possible on the cost overruns of the Sheppard Subway line.

16.IN CAMERA

COMPLIANCE AUDIT OF ELECTION CAMPAIGN FINANCES OF A CANDIDATE

City Auditor

(August 28, 1998)

Recommending that City Legal Department be required to report directly to the next meeting of Council on the legal implications and options pertaining to the issues identified in this report.

17.USE OF LONG TERM CONSULTANTS

City Auditor

(August 31, 1998)

Recommending that:

(1)all consulting contracts should be awarded in accordance with By-Law No. 7-1998 and in accordance with City of Toronto policy;

(2)in accordance with past practice, a report be prepared for the information of Council by the Commissioner of Works and Emergency Services indicating the status of all long term consulting contracts and related expenditures;

(3)the standard report on the status of all long term consulting contracts and related expenditures be expanded to include all future commitments, as well as the expected completion date of the appropriate contracts;

(4)all consultants with long term contracts should be required to provide annual financial statements accompanied by a certificate of an auditor licensed under The Public Accountancy Act stating that, in his opinion, the fees charged to the City for the year are appropriate;

(5)the Chief Administrative Officer be requested to report to Council every six months on the use of consultants by the City and all its Agencies, Boards and Commissions;

(6)all departments be requested to identify and report to the City Finance Department consulting arrangements with individuals including incorporated individuals. In addition, Finance staff evaluate all such contracts to determine whether or not an employee/employer relationship exists. If this relationship does exists, appropriate employee deductions should be made;

(7)the City Solicitor be requested to report on whether or not the extent of staff involvement in various consultant's design projects would impact any future legal claim in relation to design issues; and

(8)the report (August 31, 1998) be forwarded to the Works and Utilities Committee for their information.