Item - 2012.EX20.21

Tracking Status

  • City Council adopted this item on June 6, 2012 without amendments.
  • This item was considered by Executive Committee on May 14, 2012 and was adopted with amendments. It will be considered by City Council on June 6, 2012.

EX20.21 - Toronto Community Housing Corporation (TCHC) - Response to three Auditor General's Reports (a) Procurement and Payment Functions at TCHC Subsidiary - Housing Services Inc.; (b) Strengthening of TCHC Oversight of Subsidiaries and Other Business Interests; and (c) Fleet Management Control Deficiencies

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on June 6, 7 and 8, 2012, adopted the following:

 

1.         City Council request the Director of Fleet Services and the Chief Executive Officer of the Toronto Community Housing Corporation (TCHC) to report to the Government Management Committee on a process to integrate TCHC's automotive fleet into the City's fleet.

 

Confidential Attachment 1 to the report (February 6, 2012) from the Auditor General remains confidential in accordance with the City of Toronto Act, 2006 as it deals with personal matters about an identifiable person and is about litigation or potential litigation that affects the Toronto Community Housing Corporation.  Confidential Attachment 1 will be made public at the discretion of the Chief Executive Officer, Toronto Community Housing Corporation, in consultation with legal counsel.

Confidential Attachment - Litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board; personal matters about an identifiable individual, including municipal or local board employees

Background Information (Committee)

(April 3, 2012) Letter from the Chief Executive Officer (Interim), Toronto Community Housing Corporation (TCHC) - Response to three Auditor Generalís Reports (a) Procurement and Payment Functions at TCHC Subsidiary - Housing Services Inc.; (b) Strengthening of TCHC Oversight of Subsidiaries and Other Business Interests; and (c) Fleet Management Control Deficiencies
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46597.pdf
(February 2, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Review of Controls Over Procurement and Payment Functions at TCHC Subsidiary: Housing Services Inc.
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46600.pdf
(February 3, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Toronto Community Housing Corporation - The City and Toronto Community Housing Corporation Needs to Strengthen its Oversight of Subsidiaries and Other Business Interests
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46601.pdf
(February 6, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Toronto Community Housing Corporation Fleet Management - Lack of Central Oversight Has Led to Control Deficiencies
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46602.pdf
Confidential Attachment to staff report (February 6, 2012) from the Auditor General on Toronto Community Housing Corporation Fleet Management - Lack of Central Oversight Has Led to Control Deficiencies
(May 14, 2012) Presentation by Auditor General on Toronto Community Housing Corporation
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-47234.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) Jun-06-2012 2:07 PM

Result: Carried Majority Required - EX20.21 - Adopt the item
Total members that voted Yes: 32 Members that voted Yes are Maria Augimeri, Ana Bail„o, Michelle Berardinetti, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Frank Di Giorgio, Sarah Doucette, Paula Fletcher, Rob Ford, Mary Fragedakis, Mark Grimes, Doug Holyday, Norman Kelly, Mike Layton, Chin Lee, Gloria Lindsay Luby, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, Gord Perks, Anthony Perruzza, David Shiner, Michael Thompson
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 13 Members that were absent are Paul Ainslie, Raymond Cho, John Filion, Doug Ford, Giorgio Mammoliti, Josh Matlow, Denzil Minnan-Wong, John Parker, James Pasternak, Jaye Robinson, Karen Stintz, Adam Vaughan, Kristyn Wong-Tam

EX20.21 - Toronto Community Housing Corporation (TCHC) - Response to three Auditor General's Reports (a) Procurement and Payment Functions at TCHC Subsidiary - Housing Services Inc.; (b) Strengthening of TCHC Oversight of Subsidiaries and Other Business Interests; and (c) Fleet Management Control Deficiencies

Decision Type:
ACTION
Status:
Amended
Wards:
All

Confidential Attachment - Litigation or potential litigation, including matters before administrative tribunals, affecting the municipality or local board; personal matters about an identifiable individual, including municipal or local board employees

Committee Recommendations

The Executive Committee recommends that City Council request the Director of Fleet Services and the Chief Executive Officer of the Toronto Community Housing Corporation (TCHC) to report to the Government Management Committee on a process to integrate TCHC's automotive fleet into the City's fleet.

Origin

(April 3, 2012) Letter from the Chief Executive Officer, Toronto Community Housing Corporation

Summary

Letter (April 3, 2012) from the Chief Executive Officer (Interim), Toronto Community Housing Corporation, advising that on February 23, 2012, the Auditor General submitted for review to Toronto Community Housing’s Board of Directors the following reports:

 

-          Review of Controls over Procurement and Payment Functions at TCHC Subsidiary: Housing Services Inc.;

-          The City and Toronto Community Housing Corporation Needs to Strengthen its Oversight of Subsidiaries and Other Business Interests; and

-          Toronto Community Housing Corporation Fleet Management – Lack of Central Oversight Has Led to Control Deficiencies.

 

The Board of Directors of Toronto Community Housing Corporation resolved to:

 

1.         Direct the Internal Auditor to report back to the Board with financial statements for the period from 2007 to current of all subsidiary companies, joint ventures and other business interests.

 

2.         Direct the Internal Auditor to determine which financial statements should be subject to an external financial audit and report back to the Board.

 

3.         Direct the Internal Auditor to review all financial statements and analyze all transactions which appear to be unusual and report back to the Board.

 

4.         Direct the Internal Auditor to determine under what authority the investments in Sparkle and Innoserv were made and report back to the Board. 

 

5.         Direct the Internal Auditor and management to report back on fleet management.

 

In addition, the Board referred the following motion to its Corporate Affairs and Audit Committee which was approved by the Committee at its March 30, 2012 meeting to:

 

1.         request the Internal Auditor to review all major contracts awarded by Toronto Community Housing and its subsidiary companies in order to determine that contracts were awarded appropriately;

 

i.          the review to include an analysis of whether or not such contracts involve any conflicts of interest;

 

ii.         the review to include material contracts since 2008; and

 

iii.        the materiality of contracts be delegated to the Corporate Affairs and Audit Committee (CAAC) to determine and report back to the Board.

 

Background Information

(April 3, 2012) Letter from the Chief Executive Officer (Interim), Toronto Community Housing Corporation (TCHC) - Response to three Auditor Generalís Reports (a) Procurement and Payment Functions at TCHC Subsidiary - Housing Services Inc.; (b) Strengthening of TCHC Oversight of Subsidiaries and Other Business Interests; and (c) Fleet Management Control Deficiencies
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46597.pdf
(February 2, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Review of Controls Over Procurement and Payment Functions at TCHC Subsidiary: Housing Services Inc.
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46600.pdf
(February 3, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Toronto Community Housing Corporation - The City and Toronto Community Housing Corporation Needs to Strengthen its Oversight of Subsidiaries and Other Business Interests
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46601.pdf
(February 6, 2012) Attachment - Report from the Auditor General to the Board of Directors of the Toronto Community Housing Corporation on Toronto Community Housing Corporation Fleet Management - Lack of Central Oversight Has Led to Control Deficiencies
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-46602.pdf
Confidential Attachment to staff report (February 6, 2012) from the Auditor General on Toronto Community Housing Corporation Fleet Management - Lack of Central Oversight Has Led to Control Deficiencies
(May 14, 2012) Presentation by Auditor General on Toronto Community Housing Corporation
https://www.toronto.ca/legdocs/mmis/2012/ex/bgrd/backgroundfile-47234.pdf

Motions

Motion to Amend Item moved by Councillor Paul Ainslie (Carried)

That the Director of Fleet Services and the Chief Executive Officer of Toronto Community Housing Corporatioin (TCHC) be requested to report to the Government Management Committee on a process to integrate TCHC's automotive fleet into the City's fleet.

Source: Toronto City Clerk at www.toronto.ca/council