The Audit Committee recommends that:

1.         City Council receive for information, the 2009 Financial Statements and related documents of the following agencies, boards, commissions and corporations:

-           Exhibition Place

-           The North York Performing Arts Centre Corporation (operating as The Toronto Centre for the Arts)

-           The Sony Centre for the Performing Arts

-           The St. Lawrence Centre for the Arts

-           Toronto Atmospheric Fund

-           Toronto Public Library

-           Toronto Transit Commission

-           Yonge-Dundas Square

-           Toronto Parking Authority

-           Heritage Toronto.

The Audit Committee:

1.         requested all agencies, boards and commissions to include budget figures in all future Financial Statements, and requested the Auditor General to formally communicate this direction to the ABCs;

2.         requested Exhibition Place to ascertain a full accounting of the extra accounting work which was done to prepare its Financial Statements and submit this information to the Audit Committee;

3.         requested the Toronto Atmospheric Fund to include in future Financial Statements:

            a.         information respecting investment income categorized between actual income earned and realized gains and/or losses; and

            b.         a note on "investments" with respect to the breakdown of account portfolio summary;

4.         requested the Toronto Transit Commission to examine how the City reports its insurance liability and requested the Commission to report in a similar manner;

5.         requested the Toronto Parking Authority to adjust its future Financial Statements to correct the capitalization of painting costs, which should be expensed and not capitalized; and

6.         directed the Toronto Zoo to forward its 2009 Financial Statements to City Council for consideration at the August 25, 2010 meeting. 

The following agencies, boards, commissions and corporations have submitted 2009 Financial Statements to the Audit Committee for consideration:

-  Exhibition Place

-  The North York Performing Arts Centre Corporation (operating as The Toronto Centre for the Arts)

-  The Sony Centre for the Performing Arts

-  The St. Lawrence Centre for the Arts

-  Toronto Atmospheric Fund

-  Toronto Public Library

-  Toronto Transit Commission

-  Yonge-Dundas Square

-  Toronto Parking Authority

-  Heritage Toronto

The Audit Committee recommends that:

1.         City Council approve the 2009 Audited Trust Funds Consolidated Financial Statements as attached in Appendix A to the report (June 28, 2010) from the Treasurer.

 The Audit Committee recommends that:

1.         City Council receive the 2009 audited financial statements and summary management letter of Arenas attached as Appendices to the report (June 15, 2010) from the Auditor General.

The Audit Committee recommends that:

1.         City Council receive the 2009 audited financial statements of Community Centres and summary management letter attached as Appendices to the report (June 15, 2010) from the Auditor General.

2.         City Council receive the 2009 audited financial statements of the Harbourfront Community Centre.

The Audit Committee recommends that:

1.         City Council approve the 2009 audited financial statements and management letters of the thirty-four (34) Business Improvements Areas (BIAs) attached as Appendices A-1 to AI-1 of the report (June 17, 2010) from the Treasurer and the Director, Business Services, Economic Development and Culture.

The Audit Committee recommends that:

1.         City Council request the City Manager to direct all staff to prepare reports which contain accurate and complete financial impact statements.  Such reports to address all financial implications both capital and operating.  Reports relating to capital acquisitions contain information on required future state of good repair budgetary requirements.

2.         City Council request the City Manager to direct all staff that under no circumstances should capital lease agreements be negotiated prior to consultation with the Deputy City Manager and Chief Financial Officer.  The City Manager further advise all staff that potential lease agreements only be consummated after compliance with City policy.

3.         City Council request the Deputy City Manager and Chief Financial Officer to propose amendments to the Financial Control By-law requiring that final total capital project costs for all major capital projects are reported to the appropriate Standing Committee.  Such reporting include a comparison of costs to budget as well as a comparison of actual completion date to projected completion date.

4.         City Council request the City Manager to direct staff, when requesting Council approvals for additional financing, to include complete project costs, including management fees and direct salary costs, and budget information as well as estimated project completion dates in all reports.

5.         City Council request the City Manager to direct that the Design, Construction and Asset Preservation section of the Facilities Management Division be designated as the lead project manager for all renovation projects.  The role of client divisions be clearly defined.

6.         City Council request the City Manager, in consultation with the Executive Director, Facilities Management, to require that project charters be prepared for all capital projects.  Project charters should define the scope of work, objectives, key deliverables, and project timelines and be approved in writing by both the Design, Construction and Asset Preservation section and the client division.

7.         City Council request the City Manager, in consultation with the City Clerk, to give consideration to the development of a process or a protocol which would enable Councillors, when considering Motions, to be advised of the financial implications of such Motions.  If this is not possible prior to decisions being made then consideration be given to providing this information at a subsequent meeting.

8.         City Council request the Executive Director, Facilities Management, in consultation with the Director, Purchasing and Materials Management, project managers and external consultants, to ensure that project design documents are complete and as accurate as possible prior to tender issue.

9.         City Council request that the Executive Director, Facilities Management, be given sole authority to make decisions on the method by which accessibility requirements be incorporated in all relevant tender documents.  The design of construction and renovation projects be required to comply with the City’s Accessibility Design Guidelines and any new requirements under the Accessibility for Ontarians with Disabilities Act, 2005.

10.       City Council request the Director, Design, Construction and Asset Preservation, to comply with the City’s asbestos management policy that requires tender documents include a building asbestos assessment report and building asbestos record.  In addition, if necessary and practical, an intrusive asbestos survey should be completed prior to commencing renovations or construction work to confirm the presence of asbestos in the building.

11.       City Council request the City Manager to direct all staff involved in the design of major construction and renovation projects to ensure that all tender and design documents are complete and signed off by the Facilities Management Division and incorporate the scope of work as agreed with the client division.

12.       City Council request the Executive Director, Facilities Management, on a case by case basis, to evaluate the need to conduct detailed building condition assessments prior to tendering major construction and renovation projects.  The results of assessments be adequately documented and conveyed to project management staff.

13.       City Council request the City Manager to direct that Design, Construction and Asset Preservation staff consult with Divisions at the design stage of all projects.  Appropriate sign off of all drawings be standard practice by Design, Construction and Asset Preservation staff in consultation with Division staff.  Such a process be incorporated into the Project Charter.

14.       City Council request the Executive Director, Facilities Management, to ensure that contractor invoices and change orders are calculated in accordance with the terms of the relevant contract.  Further, the Executive Director, Facilities Management, take action as warranted after consultation with the City Solicitor to recover any excess change order amounts paid to the 129 Peter Street contractor.

15.       City Council request the City Manager to conduct a personnel review of accountability performance of the staff involved in the capital project at 129 Peter Street, and report to the Employee and Labour Relations Committee.

The Audit Committee recommends that:

1.         City Council request the Chief Building Official, in consultation with the General Manager of Parks, Forestry and Recreation, to implement controls to prevent the issuance of a building permit until parkland dedication fees have been paid.

2.         City Council request the Deputy City Manager and Chief Financial Officer to review the infrastructure construction price index currently used by the City of Ottawa in order to determine whether or not a similar index should be used to adjust annual development charge rates at the City of Toronto.

3.         City Council request the Chief Building Official, in consultation with the City Solicitor, to review the feasibility of including in conditional permit agreements, additional fees payable when terms are not met.

4.         City Council request the Director of the Affordable Housing Office, in consultation with the Chief Building Official, to review procedures to ensure that information provided in regard to exemptions from development charges for non-profit housing projects is accurate and complete.

5.         City Council request the Chief Building Official and the Deputy City Manager and Chief Financial Officer to review those areas of the by-law which are the subject of staff misinterpretation and ensure that such areas are addressed either through amendments to the by-law, policies and procedures manual or through additional staff training.

6.         City Council request the Chief Building Official to evaluate the current audit process to ensure development charge calculations are verified to supporting documentation.  Consideration be given to an audit process prior to the issuance of a building permit.

7.         City Council request the General Manager, Parks, Forestry and Recreation, in consultation with the City Solicitor, to develop a corporate policy which formalizes the parameters that should be applied when determining the parkland dedication requirement for developments covered by the Etobicoke Motel Strip Secondary Plan.

8.         City Council request the General Manager, Parks, Forestry and Recreation, to ensure that in the future, where parkland dedication fees are set out in negotiated agreements that amounts calculated and collected are in accordance with such agreements and appropriate documentation is maintained for all agreements.

9.         City Council request the General Manager, Parks, Forestry and Recreation, to review negotiated parkland dedication fees for projects where the developer still owns the building.  This review should ensure the correct amounts were collected and assess the feasibility of recovering any uncollected funds.

10.       City Council request the General Manager, Parks, Forestry and Recreation, in establishing cash payments in lieu of parkland, to set up a process to ensure that land appraisals are current and in compliance with the requirements of the applicable by-law.

11.       City Council request the Deputy City Manager and Chief Financial Officer, in consultation with the Chief Building Official, to enter into discussions with the Toronto Catholic District School Board with a view to implement, where feasible, consistent definitions and policies affecting development charge calculations.

12.       City Council request the City Treasurer and the Chief Building Official to ensure there is a regular reconciliation of development charges financial information in IBMS and SAP.  An interface between the two systems should be considered.

13.       City Council request the Deputy City Manager and Chief Financial Officer to review those development charge reserve funds which have been in existence since prior to amalgamation to determine how these funds can best be used.

The Audit Committee recommends that:

1.         City Council request the Deputy City Manager and Chief Financial Officer to review:

a.         with the Province, the potential of coordinating audit resources in order to conduct a joint audit of Teranet Enterprises Inc.’s systems; and

b.         the Canadian Institute of Chartered Accountants Handbook Section 5970 report.  

2.         City Council request the Deputy City Manager and Chief Financial Officer to formalize policies and procedures designed to mitigate the risk of errors in the services rendered by Teranet Enterprises Inc.

3.         City Council request the Deputy City Manager and Chief Financial Officer to request from Teranet Enterprises Inc. its Compliance Monitoring Report.  The Compliance Monitoring Report be reviewed to ensure it is independent, can be relied upon and any areas of concern are adequately addressed.

4.         City Council request the Deputy City Manager and Chief Financial Officer to request Teranet Enterprises Inc. to ensure that only those fees approved by City Council are charged on municipal land transfer tax transactions.  Further, Revenue Services Division establish a process to ensure Teranet complies with the provisions contained in the Municipal Land Transfer Tax By-law No. 1423-2007.

5.         City Council request the Deputy City Manager and Chief Financial Officer to complete a sample review of municipal land transfer tax rebates granted by Teranet Enterprises Inc. during the seven-month period ending August 31, 2008 to ensure that the City’s rebate eligibility criteria were met.

6.         City Council request the Deputy City Manager and Chief Financial Officer to review the level of ongoing resources required in order to effectively audit the various documentation provided by third parties to support the payment and rebate of municipal land transfer tax.  Such a process be conducted in collaboration with the Province in order to leverage the current provincial audit program.

7.         City Council request the Deputy City Manager and Chief Financial Officer to consider the possibility of recovering staff costs relating to the processing of manual rebate and refund applications on electronically registered conveyances.

8.         City Council request the Deputy City Manager and Chief Financial Officer to encourage prompt payment by developing policies to implement interest, financial penalties and other enforcement measures permitted by the Municipal Land Transfer Tax By-law No. 1423-2007.

9.         City Council request the Deputy City Manager and Chief Financial Officer:

a.         in consultation with the City Solicitor, to review the Municipal Land Transfer Tax By-law No. 1423-2007 to identify any provisions requiring clarification or amendment, and report to City Council, if necessary, on any revisions identified

b.         to develop clear written guidelines to ensure consistent application of provisions in the Toronto Municipal Land Transfer Tax By-law No. 1423-2007 by staff of the Revenue Services Division.

The Audit Committee recommends that:

1.         City Council request the City Manager, in consultation with the Chief Information Officer, to review the current reporting structure and relationships between divisional SAP representatives and the Competency Centre with a view to:

a.         minimizing delays in the completion of SAP projects;

b.         ensuring that the ownership of certain SAP modules is clarified and workable; and

c.         ensuring that there is an appropriate segregation of duties between SAP divisional staff and the SAP Competency Centre.

2.         City Council request the City Manager, in consultation with the Chief Information Officer, to formalize a policy to require adherence to SAP best practices for all City-wide SAP projects, and implement quality assurance measures to ensure such practices are followed.

3.         City Council request the Chief Information Officer to establish a formal process for the SAP Competency Centre to develop and maintain the Integrated SAP Work Plan as part of the existing SAP governance model.

4.         City Council request the City Manager, in consultation with the Chief Information Officer, to establish a formal process for ensuring those assigned accountability for overseeing SAP projects understand the City SAP environment and have sufficient knowledge and expertise in SAP best practice and methodology.

5.         City Council request the Chief Information Officer to include SAP Competency Centre service level expectations in formal service level agreements currently being prepared between operating divisions and the Information and Technology Division.

6.         City Council request the City Manager to establish a process for maintaining a single repository for SAP related issues and risks, and the Chief Information Officer establish a formal process for collecting, addressing and reporting on such risks.

7.         City Council request the Chief Information Officer to develop SAP Competency Centre performance measures and standards.  Such measures and standards should monitor ongoing performance.

The Audit Committee recommends that:

1.         City Council receive for information, the report (June 15, 2010) from the Auditor General.

The Audit Committee recommends that:

1.         City Council receive for information, the report (June 1, 2010) from the Auditor General.

The Audit Committee recommends that:

1.         City Council receive for information, the report (June 11, 2010) from the Auditor General.

The Audit Committee received for information, the following:

-           report (April 28, 2010) from the Treasurer; and

-           letter (June 25, 2010) from the City Manager.