Item - 2012.AU6.8

In March 2011 the Auditor General issued two audit reports pertaining to the Toronto Community Housing Corporation (TCHC).  Both reports were tabled with the Board of Directors of TCHC and were subsequently forwarded to Executive Committee.  At that time concerns were expressed that the normal reporting process for both audit reports had been bypassed as they had not been tabled at the Audit Committee.

In this context the Auditor General was advised by both the City Clerk and the City Solicitor that the process for tabling audit reports of TCHC should be in accordance with the process approved by City Council in 2007.

This process was outlined in a report dated January 2, 2007 by the City Manager entitled “Designation of Certain Officials under New Statutory Accountability Requirements”.

The following recommendations of the City Manager contained in the report were approved by City Council at its meeting of February 5, 6, 7 and 8, 2007:

“City Council designate the Auditor General to be the City representative under the shareholder directions for Toronto Hydro Corporation, Toronto Community Housing Corporation, and their subsidiaries; such representative to be permitted full access to the corporations’ records for audit purposes;

City Council direct the Auditor General to report on audits of City and partnered corporations as follows:

a.         to the City Executive Committee for recommendations regarding shareholder issues; and

b.         to the corporation’s board of directors for recommendations regarding operations or other responsibilities of the board, with a copy submitted to the City Manager.”

In order to comply with the directions of City Council the submission of all future audit reports pertaining to TCHC will follow the process as outlined above.