Item - 2025.AU9.3

The Audit Committee recommends that:

1. City Council approve the CreateTO 2024 Audited Financial Statements in Attachment 3 to the report (April 4, 2025) from the Chief Executive Officer, CreateTO.

2. City Council approve the Toronto Parking Authority 2024 Audited Financial Statements in Attachment 2 to the report (April 10, 2025) from the President, Toronto Parking Authority. 

3. City Council receive for information the CreateTO Highlights Report, in Attachment 1 to the report (April 4, 2025) from the Chief Executive Officer, CreateTO.

4. City Council receive for information the Exhibition Place 2024 Audit Financial Statements in Attachment 1 to the report (May 30, 2025) from the Chief Executive Officer, Exhibition Place and the Audit Findings Report in Attachment 3 to the report (May 30, 2025) from the Chief Executive Officer, Exhibition Place.

5. City Council receive for information the Heritage Toronto 2024 Audited Financial Statements in Attachment 1 to the letter (June 9, 2025) from the Board of Directors, Heritage Toronto, and the Audit Findings Report to the Board in Attachment 2  to the letter (June 9, 2025) from the Board of Directors, Heritage Toronto of the report (March 20, 2025) from the Executive Director, Heritage Toronto, and the Management Representation Letter in Attachment 3 to the letter (June 9, 2025) from the Board of Directors, Heritage Toronto.

6. City Council receive for information the Sankofa Square 2024 Audited Financial Statements and Auditors Report in Attachment 1 to the letter (June 26, 2025) from the Board of Management, Sankofa Square, and the Management Representation Letter dated April 22, 2025 in Attachment 2 to the letter (June 26, 2025) from the Board of Management, Sankofa Square.

7. City Council receive for information the TO Live 2024 Audited Financial Results in Attachment 1 to the report (March 25, 2025) from the President and Chief Executive Officer, TO Live and Audit Findings Report in Attachment 2 to the report (March 25, 2025) from the President and Chief Executive Officer, TO Live.

8. City Council receive for information the Toronto Atmospheric Fund 2024 Audited Consolidated Financial Statements as presented in Attachment 1 to the report (April 25, 2025) from the Director of Finance, Toronto Atmospheric Fund.

9. City Council receive for information the Toronto Public Library 2024 Audited Financial Statements in Attachment 1 to the letter (June 23, 2025) from the Toronto Public Library Board, and the Audit Findings in Attachment 2 to the letter (June 23, 2025) from the Toronto Public Library Board.

10. City Council receive for information the Toronto Transit Commission Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2024 in the Attachment  to the report (June 9, 2025) from the Deputy Chief Executive Officer, and the Audit Findings Report in the Attachment to the report (June 9, 2025) from the Deputy Chief Executive Officer.

11. City Council receive for information the Toronto Zoo 2024 Audit Results in Attachment 1 to the report (May 23, 2025) from the Chief Transformation Officer, Toronto Zoo and the Toronto Zoo Financial Statements - Year Ended 2024-12-31 in Attachment 1 to the report (May 23, 2025) from the Chief Transformation Officer, Toronto Zoo.

The following 2024 Financial Statements and related documents for the year ended December 31, 2024 have been submitted to the Audit Committee for consideration:

- CreateTO
- Exhibition Place
- Heritage Toronto

- Sankofa Square
- TO Live
- Toronto Atmospheric Fund
- Toronto Parking Authority
- Toronto Public Library
- Toronto Transit Commission
- Toronto Zoo

At its meeting on April 22, 2025, the Board of Directors of CreateTO considered Item RA18.5 and made recommendations to City Council.

Summary from the report (April 4, 2025) from the Chief Executive Officer, CreateTO:

As the City of Toronto’s real estate agency, CreateTO applies a strategic city-wide lens to Toronto’s real estate holdings, develops City buildings and lands for municipal purposes and delivers real estate solutions to advance City Council’s key public policy goals and meet the program needs of City divisions, agencies, and corporations.

Toronto has an extensive real estate portfolio, which holds tremendous value, both financially and in its potential to be activated for the public good. CreateTO was established to put that value to use for our city. The agency offers creative and strategic approaches to solving some of our city’s most pressing challenges, from building affordable homes and inclusive communities, to creating cultural and employment opportunities, driving economic prosperity, achieving our climate goals, and increasing our collective quality of life. Key accomplishments achieved in 2024 have been summarized in CreateTO’s 2024 Highlights Report. Please refer to Attachment 1 for details.

For the year ending December 31, 2024, KPMG LLP conducted the audit and delivered a clean audit opinion. Please refer to Attachment 2 for KPMG LLP's audit findings report and Attachment 3 for the audited financial statements

At its meeting on June 13, 2025, the Board of Directors of Exhibition Place considered Item EP17.2 and made a recommendation to City Council.

Summary from the report (May 30, 2025) from the Chief Executive Officer, Exhibition Place

The auditor of record for the Board, KPMG, audits our financial statements in accordance with Canadian public sector accounting standards and summarizes issues of audit significance, and provides the communications required by their professional standards.

KPMG presents for the information of the Board, for the year ended December 31, 2024, the following:

1.  Draft Audited Financial Statements (Attachment 1),

2.  Management Representation Letter (Attachment 2), and

3.  Audit Findings Report (Attachment 3).

The Audit Findings Report (Attachment 3) presents the auditors' suggestions and recommendations based on their findings, aimed at enhancing our accounting and internal control procedures. As detailed in Attachment 3, the auditors have issued an unqualified opinion on the financial statements for the 2024 audit, indicating no significant internal control issues.

Included in the Management Representation Letter (Attachment 2) is to provide formal written assertions from the company's management to the auditors. These assertions confirm the accuracy and completeness of the financial statements and disclosures provided during the audit. This letter also includes two (2) corrected misstatements identified by the auditors, which management has agreed upon. These corrections are for balance sheet reclassifications for presentation purposes only and do not impact the income statement.

A representative of KPMG will attend the Board meeting on June 13, 2025, to respond to any questions of the Auditor.

As reported on the Statement of Operations and Accumulated Deficit, the Transfer Payable before Budget Deficit Subsidy funding from the City is $2.710 million. The Boards 2024 Operating Budget Deficit Subsidy funding was $0.800 million. Overall, therefore, Exhibition Place will have a Transfer Payable of $3.510 million to the City.

At its meeting on June 9, 2025, the Board of Directors of Heritage Toronto considered Item HT 25-11 and made recommendations to City Council.

Summary from the report (March 20, 2025) from the Chair of the Audit and Finance Committee of the Board:

Heritage Toronto builds a better city by bringing people together to explore Toronto’s shared past and people’s lived experiences. It delivers 80 plus public programs annually including: walking, cycling and bus tours; plaques, digital programs and exhibitions, the Heritage Toronto Awards, the Emerging Historian program, community events programming, and the Heritage Equity Initiative.

For the year ending December 31, 2024, Doane Grant Thornton conducted the audit and delivered a clean audit opinion.

Auditor’s Report and Financial Statements, and Management Representation Letter for Sankofa Square for the year ended December 31, 2024.

At its meeting on April 17, 2025, the Board of Directors of TO Live considered item CT15.2 and made recommendations to City Council.

Summary from the Report (March 25, 2025) from the President and Chief Executive Officer, TO Live:

The purpose of this report is to present the 2024 Audited Financial Results to the Board of Directors of TO Live.

At its meeting on April 29, 2025, the Board of Directors of the Toronto Atmospheric Fund considered Item TA10.1 and made recommendations to City Council.

Summary from the report (April 25, 2025) from the Director of Finance, Toronto Atmospheric Fund:

The 2024 Audited Consolidated Financial Statements have been prepared by Doane Grant Thornton and are presented to the Toronto Atmospheric Fund Board of Directors for approval. These statements provide separate fund accounting for the endowment funds provided to Toronto Atmospheric Fund by the City of Toronto, Province of Ontario, and Government of Canada.

At its meeting on May 15, 2025, the Board of Directors of the Toronto Parking Authority considered Item PA14.2 and made recommendations to City Council.

Summary from the report (April 10, 2025) from the President, Toronto Parking Authority:

The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors of Toronto Parking Authority with the draft audited financial statements for the year ended December 31, 2024.

Toronto Parking Authority is North America's largest municipal operator of public parking with over 25 million transactions in 2024. In addition to its parking operations, Toronto Parking Authority also operates Bike Share Toronto, North America’s third largest Bike Share program. In 2024, Bike Share Toronto attracted over 40,000 members (+5,000 v 2023) and achieved ridership of 6.9 million (+1.2 m v 2023) marking a nearly 300 percent increase in ridership since 2019. Toronto Parking Authority’s electric vehicle charging network, which now comprises over 450 chargers, places Toronto Parking Authority as the operator of the largest municipally owned electric vehicle charging network in Canada. This network attracted over 20,000 unique customers and generated over $1.1 million in revenue. A summary of key accomplishments achieved in 2024 will be presented at the May 15, 2025, Board meeting through Toronto Parking Authority’s 2024 Annual Report.

KPMG LLP has completed their audit of Toronto Parking Authority’s financial statements for the year ended December 31, 2024, and has delivered a clean audit opinion. A draft of the financial statements along with a copy of KPMG's year-end report to the Audit and Risk Management Committee is provided in Attachments 1 and 2.

The financial statements continue to be marked as draft pending approval by the Toronto Parking Authority Board of Directors. KPMG Audit Partner, Kevin Travers, will attend the Audit and Risk Management Committee meeting to provide a summary on significant accounting and financial reporting matters dealt with during the audit process.

At its meeting on May 15, 2025, the Board of Directors of the Toronto Parking Authority considered Item PA14.9.

Summary from the report (April 29, 2025) from the President, Toronto Parking Authority:

Toronto Parking Authority is North America's largest municipal operator of public parking with over 25 million transactions in 2024 contributing to $ in revenue. In addition to its parking operations, Toronto Parking Authority also operates Bike Share Toronto, North America’s third largest Bike Share program. In 2024, Bike Share Toronto attracted over 40,000 members (+5,000 v 2023) and achieved ridership of 6.9 million (+1.2 m v 2023) marking a nearly 300 percent increase in ridership since 2019.

Toronto Parking Authority’s electric vehicle charging network, which now comprises over 450 chargers, places Toronto Parking Authority as the operator of the largest municipally owned EV charging network in Canada. This network attracted over 20,000 unique customers and generated over $1.1 million in revenue.

Together, Toronto Parking Authority's mobility services generated total revenues of $164.6 million (+18.6 million v 2023) in 2024. Toronto Parking Authority's net income was $44.8 million (+$6.7 million v 2023) with a total of $32.8 million (+$8.9 million v 2023) provided to the City of Toronto through the Toronto Parking Authority - City of Toronto Net Income Share Agreement.

A summary of key accomplishments achieved in 2024 is presented in the draft 2024 Annual Report (refer to Attachment 1).

Through PA14.02, the 2024 Audited Financial Statements are also being submitted to the Board for approval at the May 15, 2025 Board meeting. Should the Board approve both the draft Annual Report and the Audited Financial Statements, Toronto Parking Authority will incorporate the Audited Financial Statements into the 2024 Annual Report and finalize for distribution and publishing on Toronto Parking Authority's website. In order to meet requirements under the City of Toronto Municipal Code, Chapter 179 Parking Authority, it is also recommended that the Board refer both the Audited Financial Statements and Annual Report to City Council.

Audit Findings Report and Financial Statements for Toronto Public Library for the year ended December 31, 2024.

At its meeting on Monday, June 23, 2025, the Toronto Transit Commission Board considered the attached report titled, “Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2024”.

In doing so, the Toronto Transit Commission Board:

1. Approved the Draft Consolidated Financial Statements of Toronto Transit Commission for the Year Ended December 31, 2024; and

2. Authorized forwarding a copy of this report to the City Clerk for submission to the City of Toronto Audit Committee.

The foregoing is submitted to the Audit Committee for consideration.

At its meeting on Monday, June 23, 2025, the Toronto Transit Commission Board Board considered the attached report titled, “KPMG LLP Audit Findings Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2024”.

In doing so, the Toronto Transit Commission Board Board:

1. Received the KPMG LLP Audit Findings Report on the Toronto Transit Commission Consolidated Financial Statements for the Year Ended December 31, 2024; and

2. Authorized forwarding a copy of this report to the City Clerk for submission to the City of Toronto Audit Committee.

The foregoing is submitted to the Audit Committee for consideration.

At its meeting on Friday, June 13, 2025, the Board of Management of the Toronto Zoo, considered Item ZB16.4 and made recommendations to City Council.

Summary from the report (May 23, 2025) from the Chief Transformation Officer, Toronto Zoo:

This report provides the Audit Results, as prepared by KPMG, to assist the Board in reviewing the financial statement for the year ended December 31, 2024. The Audit Results Report was reviewed and discussed at the Policy and Finance Committee meeting on May 13, 2025.