Toronto Community Housing Corporation BUILDING … BIFA… · provided a PowerPoint presentation and was available to answer questions from BIFAC members. Highlights of discussion:

Toronto Community Housing Corporation

BUILDING INVESTMENT, FINANCE AND AUDIT COMMITTEE

PUBLIC SESSION

Date: January 24, 2020 Time: 9:00 a.m. – 10:15 a.m.

Location: Ground Floor Boardroom, 931 Yonge Street

Description Action Pre-read Presenter

Public Agenda (Revised)

1. Chair’s Remarks Information Verbal Report

5 minutes

Chair

2. Consent agenda 5 minutes

a) Approval of Public Meeting Agenda

BIFAC

Approval

Agenda Chair

b) Chair’s Poll re: Conflict of Interest

Declaration Agenda and Conflict of Interest

Policy

Chair

c) Confirmation of the Public Meeting Minutes of

November 20, 2019 December 20, 2019

BIFAC Approval

Minutes Chair

d) Internal Audit Update Q4

Information BIFAC:2020-06 Manager, Internal Audit

e) Q4 2019 PAC Awards and Revenue Contracts

Information BIFAC:2020-07 General Counsel & Corporate

Secretary

3. Business Arising from the Public Meeting Minutes and Action Items Update

Information Action Item List

5 minutes

Chair

4. False Fire Alarm - Update [deferred from November 20th, 2019 BIFAC meeting]

Information BIFAC:2020-08

10 minutes

Senior Director, Fire Life Safety &

Risk Management

PUBLIC AGENDA | BIFAC | January 24, 2020 Page 2 of 2

Description Action Pre-read Presenter

Supplemental Report

BIFAC:2020-16

5. ITS Reports

a) Q4 2019 HoMES Project Update


10minutes

Vice President, Information Technology

Services

b) 2019 Information Technology Services Report


10minutes


Services

6. Tenants First Update Information BIFAC:2020-11

10minutes

Acting Director, Strategic

Planning & Stakeholder

Relations

7. 2020 Internal Audit Work Plan

BIFAC Approval

BIFAC:2020-12

10 minutes

Manager, Internal Audit

8. AC Exchange Program Update


5 minutes

Chief Operating Officer

9. 2020 BIFAC Work Plan Information BIFAC:2020-14

5 minutes

General Counsel & Corporate

Secretary

TERMINATION

Public Meeting Minutes November 20, 2019

Building Investment, Finance

and Audit Committee Page 1 of 8

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on November 20, 2019, in the Main Floor Conference Room, 931 Yonge Street, Toronto, and via teleconference, commencing at 11:21 a.m.

BIFAC Directors Present: Adele Imrie, ChairCouncillor Ana Bailão Nick Macrae (by teleconference) Brian Smith

Management Present: John Angkaw, Senior Director, Fire Life Safety & Risk Management

Karim Jessani, Manager, Internal Audit Rose-Ann Lee, Chief Financial Officer and Treasurer Kevin Marshman, President and Chief Executive

Officer Darragh Meagher, General Counsel and Corporate

Secretary Allen Murray, Vice President, Facilities Management

(Acting) Sheila Penny, Chief Operating Officer Vincent Tong, Chief Development Officer Scott Kirkham, Acting Director, Strategic Planning

and Stakeholder Relations Ceilidh Wilson, Assistant Corporate Secretary

(Acting)

A quorum being present, the Chair called the meeting to order and Ms. Sonia Fung served as recording secretary.

ITEM 1 CHAIR’S REMARKS The Chair welcomed everyone to the BIFAC meeting.

Building Investment, Finance and Audit Committee Public Meeting Minutes November 20, 2019 Page 2 of 8

ITEM 2 APPROVAL OF CONSENT AGENDA ITEMS

Written deputations was received from Cheryl Duggan on items 2D and 2E and were distributed to members of BIFAC. Ms. Duggan did not attend the meeting in person. The following items were not held for discussion:

Item 2A – Approval of Confidential Meeting Agenda Item 2B – Chair’s Poll re: Conflict of Interest Item 2C – Confirmation of the Confidential Meeting

Minutes of October 8, 2019 Item 2D – Business Arising from the Confidential Meeting

Minutes and Action Items Update Item 2E – Internal Audit Update

ITEM 2A APPROVAL OF PUBLIC MEETING AGENDA Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by

Councillor Bailao and carried, BIFAC approved the public meeting agenda.

ITEM 2B DECLARATION OF CONFLICT OF INTEREST The Chair requested members of BIFAC to indicate any agenda item in which they had a conflict of interest, together with the nature of the conflict. None was declared.

ITEM 2C CONFIRMATION OF THE OCTOBER 8, 2019 PUBLIC MEETING MINUTES

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Councillor Bailao and carried, BIFAC approved the above-captioned minutes without amendments.

ITEM 2D BUSINESS ARISING FROM THE PUBLIC MEETING MINUTES AND ACTION ITEMS UPDATE

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Bailao and carried, BIFAC received the above-captioned report for information.


ITEM 2E INTERNAL AUDIT UPDATE Q3 BIFAC:2019-92

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Councillor Bailão, BIFAC resolved to receive the above-captioned report for information.

ITEM 3 FACILITIES MANAGEMENT REPORTS

Written deputation was received from Cheryl Duggan on item 3A and was distributed to members of BIFAC. Ms. Duggan did not attend the meeting in person. Reports on items 3A, 3B, 3C, 3D, 3E and 3F were circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC. General discussion:

Items 3A, 3B, 3C, 3D and 3E were for demand maintenance for up to five years, to provide service to tenants and ensure timely response to maintenance issues. The contracts have upset limits over a five year period.

Item 3F is for a contract on capital repairs. All six contracts went through the standard RFP process.

The successful vendors had previously worked for TCHC and are in good standing.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Councillor Bailão, BIFAC resolved to approve and forward to the Board of Directors the following reports: 3A Report:BIFAC:2019-93 - Contractor Award: Demand

Maintenance Services – Drains and Water Mains VAC 19572 (RFP 19231)

3B Report:BIFAC:2019-94 - Contractor Award: Demand Maintenance Services – Plumbing VAC 19573 (RFP 19267)

3C Report:BIFAC:2019-95 - Contractor Award: Demand Electrical Maintenance Services VAC 19257 (RFP 18361)


3D Report:BIFAC:2019-96 - Contractor Award: Demand Maintenance Services for Air Conditioning and Ventilation Under 5 Tons VAC 19584 (RFP 19278)

3E Report:BIFAC:2019-97 - Contractor Award: Demand Maintenance Services for Heating VAC 19585 (RFP 19269)

Motion carried ON MOTION DULY MADE by Councillor Bailao, seconded by Mr. Smith and carried, BIFAC adopted the above-mentioned report and resolved to:

1. Approve the award of the work to Superior Boiler Works and Welding Ltd. for $3,494,946.00 (exclusive of taxes) for mechanical and electrical upgrades at 2180 Ellesmere Road based on the outcome of Request for Proposal (RFP) 19344; and

2. Authorize the appropriate staff to take the necessary

actions to give effect to the above recommendation.

The above-captioned report was circulated to BIFAC members prior to the meeting. The Chief Development Officer was available to answer questions from BIFAC members.

Motion carried ON MOTION DULY MADE by Councillor Bailao, seconded by Mr. Smith and carried, BIFAC resolved to approve and forward to the Board of Directors the following recommendations:

ITEM 3F

CONTRACT AWARD: COMPREHENSIVE MECHANICAL AND ELECTRICAL UPGRADES AT 2180 ELLESMERE ROAD (RRP 19344) BIFAC:2019-98

ITEM 4

LAWRENCE HEIGHTS REVITALIZATI: TRANSFER OF NORTHEAST DISTRICT DEVELOPMENT BLOCKS TO PARTNERSHIP BIFAC:2019-99


1. Authorize the transfers of the lands located in Blocks 4, 5, 7, 10, 11, 13 and 15, outlined in red on the draft Plan of Subdivision dated July 4, 2019 (Attachment 1), as may be amended, and prepared by WSP Geomatics Ontario Ltd. (the “Subdivision Plan”), from Toronto Community Housing (“TCHC”) to Heights Development Inc. or its affiliated title nominee for the market condominium;

2. Authorize the encumbrance of Toronto Community

Housing lands in the Lawrence Heights Northeast District with reciprocal agreements in connection with the shared facilities in the development; and

3. Authorize the Chief Development Officer (or designate)

to take such further actions to execute any and all agreements and documents as may be necessary to give effect to the above recommendations.

ITEM 5 INFORMATION TECHNOLOGY SERVICES REPORTS

Written deputations were received from Cheryl Duggan on items 5A and 5B and were distributed to members of BIFAC. Ms. Duggan did not attend the meeting in person.

The Vice President, Information Technology Services provided a PowerPoint presentation and was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that starting from November 26, 2019 HoMES team would work with the City to enhance waitlist management.

ITEM 5A

HOMES PROJECT (TCHC BUSINESS TRANSFORMATION POROJECT) UPDATE BIFAC:2019-100


It was noted that project deliverables included o a refocus of TCHC resources to create efficiencies

and provide better services to tenants, and o improved computer systems with higher speed.

Staff expected to be able to provide information on impacts in the aforementioned areas around Q2 2020.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Councillor Bailao and carried, BIFAC resolved to receive the above-captioned report, and the information in the presentation that accompanies this report for information.

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Information Technology Services was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that when the original RFP was issued in March 2018, the scope of work provided therewith was incomplete. All proponents had responded based on that scope.

More deliverables were added to the final scope of work.

The Project remains under budget after the proposed amendment is made to the agreement. The increased contract amount was reflected in the reforecast.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC resolved to:

1. Approve a contract amendment to KPMG LLP (“KPMG”) totaling $507,140.00 (exclusive of taxes) for Quality Assurance (“QA”) Management Services for TCHC’s Business Transformation project;

ITEM 5B

CONTRACT AMENDMENT – QUALITY ASSURANCE MANAGEMENT SERVICES BIFAC:2019-101


2. Authorize the appropriate staff to take the necessary

actions to give effect to the above recommendations.

The above-captioned report was circulated to BIFAC members prior to the meeting. The Acting Director, Strategic Planning and Stakeholder Relations was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that the City has approved the funding formula at the November 14, 2019 Executive Committee meeting. The funding formula will be subject to the City’s budget process.

With regard to uninhabited houses, it was noted that 14 have been allocated to agencies, 30 are outstanding. It was expected 21 would be allocated to agencies by March 2020. Nine uninhabited houses are tied up with the severance process which slowed down the process and would probably remain uninhabited beyond March 2020. Staff was in contact with City on expediting the severance process.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC resolved to receive the above-captioned report for information.

Action Item: Management to provide a presentation, in conjunction with City staff, at a future BIFAC meeting as to the manner in which the implementation of the Seniors Housing Corporation will impact TCHC’s staffing model and the services that are provided to impacted senior tenants.

ITEM 6 UPDATE ON TENANTS FIRST BIFAC:2019-102


TERMINATION Public BIFAC meeting was adjourned at 12:02 a.m.

Secretary Chair, Building Investment, Finance and Audit Committee

Public Meeting Minutes December 20, 2019

Building Investment, Finance

and Audit Committee Page 1 of 5

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on December 20, 2019, in Conference Room 7A, 931 Yonge Street, Toronto, and via teleconference, commencing at 1:07 a.m.

BIFAC Directors Present: Adele Imrie, ChairBrian Smith (by teleconference) Nick Macrae (by teleconference)

BIFAC Directors Absent: Amanda Coombs Councillor Ana Bailão

Management Present: Luisa Andrews, Vice President, Information Technologies Services

Albert Koke, Senior Director, Strategic Procurement Kevin Marshman, President and Chief Executive

Officer Darragh Meagher, General Counsel and Corporate

Secretary Allen Murray, Vice President, Facilities Management

(Acting) Sheila Penny, Chief Operating Officer Vincent Tong, Chief Development Officer Ceilidh Wilson, Assistant Corporate Secretary

(Acting) A quorum being present, the Chair called the meeting to order and Ms. Sonia Fung served as recording secretary.

ITEM 1 CHAIR’S REMARKS The Chair welcomed everyone to the BIFAC meeting and wished all a happy holiday season. ITEM 2 APPROVAL OF CONSENT AGENDA ITEMS

The following items were not held for discussion: Item 2A – Approval of Confidential Meeting Agenda Item 2B – Chair’s Poll re: Conflict of Interest

Building Investment, Finance and Audit Committee Public Meeting Minutes December 20, 2019 Page 2 of 5

ITEM 2A APPROVAL OF PUBLIC MEETING AGENDA Cheryl Duggan deputed on the item.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC approved the public meeting agenda.

ITEM 2B DECLARATION OF CONFLICT OF INTEREST The Chair requested members of BIFAC to indicate any agenda item in which they had a conflict of interest, together with the nature of the conflict. None was declared.

ITEM 3 DIRECT AWARD: MOBILE DEVICES VOICE AND DATA SERVICES BIFAC:2019-106

Cheryl Duggan deputed on the item. The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Information Technology Services presented the report and was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that the devices for most employees will be retained with SIM cards swapped with that supplied by Rogers Communications Canada Inc. (“Rogers”).

Concern was raised that tenants who are not in the system do not have access to the lobby cameras at tenant buildings.

It was noted that Rogers does not have control over the access to the lobby camera at tenant buildings, and the other service provider does not offer that service.

It was suggested that staff contact Rogers to enquire if reduced rates would be offered to TCHC tenants.

It was noted that the new contract meets our needs and offers substantial savings.

Motion carried ON MOTION DULY MADE by Mr.Smilth, seconded by Mr. Macrae, BIFAC considered the report and resolved to:


1. Approve a direct award to Rogers Communications Canada Inc. for $1,781,300.00 (exclusive of taxes) for mobile device enrolment (voice and data plan, mobile device and accessories) for 49 months as follows: • $1,531,000.00 for expected wireless/cellular airtime

and data services; • $250,300.00 for expected mobile device

replacements and associated accessories; and

2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendation.

ITEM 4A

DIRECT AWARD: SPRINKLER HEAD REPLACEMENT AT 150 DAN LECKIE WAY (VAC 19638) BIFAC:2019-107

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that of debris was found in the sprinkler heads system during an inspection. Performance of certain of the sprinkler heads within the system may be compromised as a consequence.

Staff is reviewing the available warranty coverage. In any event, the sprinkler heads in the system will be replaced.

It was agreed that discussion on the sprinkler heads issue will be continued in an in-camera session after the public session.

Motion carried ON MOTION DULY MADE by Mr. Macrae, seconded by Mr. Smith, BIFAC considered the above-mentioned report and resolved to:

1. Approve the direct award to Eurotech Safety Inc. for $780,000.00 (exclusive of taxes) for sprinkler head replacement at 150 Dan Leckie Way; and


2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendation.

The above-captioned report was circulated to BIFAC members prior to the meeting. The Vice President, Facilities Management (Acting) was available to answer questions from BIFAC members. Highlights of discussion:

It was noted that staff asked for approval of this change order, subject to an upset limit. This is to include a small contingency allowance on the possibility that further change orders on this contract may become necessary in the future.

The original contract (in the amount of $1.9M) was signed in June. Staff and the contractor worked towards having the work completed in the non-heating season.

If the work is done during non-heating season, the heating in the entire building would be shut down.

The contractor was not able to start the work in the summer. In the winter, to ensure other parts of the building would still have heating, radiator replacement have to be done on a suite by suite basis. This is a labour intensive process, for two high-rises. A change order with increased contract price is necessary.

It was suggested that if similar circumstances arise in future, staff should include a contingency allowance in the contract when asking for BIFAC approval.

Motion carried ON MOTION DULY MADE by Mr. Smith, seconded by Mr. Macrae and carried, BIFAC considered the above-mentioned report and resolved to:

ITEM 4B

CHANGE ORDER: REPLACEMENT OF RADIATORS AT R.J. SMITH APARTMENTS (101 AND 121 KENLETON DRIVE) AND ALBION LODGE (111 KENDLETON DRIVE) (VAC 19591 & 19661) BIFAC:2019-105


1. Approve the change order of the work of up to $500,000.00 (exclusive of taxes) to Toronto Atmospheric Fund for radiator replacement at 101, 121 and 111 Kendleton Drive as follows: • $333,884.25 for heating season radiator replacement

at 101 and 121 Kendleton Drive; • $23,724 for purchase and installation of gate valves

at 101 and 121 Kendleton Drive; • $70,704.90 for heating season radiator replacement

at 111 Kendleton Drive; • $4,536 for purchase and installation of gate valves at

111 Kendleton Drive; and • $67,150.85 for contingency for tenant engagement

and key holder services; and

2. Authorize the appropriate staff to take the necessary actions to give effect to the above recommendations.

OTHER BUSINESS. Motion carried ON MOTION DULY MADE by Mrs. Imrie, seconded by

Mr. Smith and carried, BIFAC resolved to adjourn the public session and convene an in-camera session.

TERMINATION Public BIFAC meeting was adjourned at 1:30 p.m.

Secretary Chair, Building Investment, Finance and Audit Committee

Page 1 of 2

Internal Audit Update: Q4 2019 Item 2D January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:2020-06

To: Building Investment, Finance and Audit Committee (“BIFAC”)

From: Manager, Internal Audit

Date: January 9, 2020

PURPOSE: The purpose of this report is to provide BIFAC with an update on the work conducted by the Internal Audit Department up to December 31, 2019. RECOMMENDATIONS: It is recommended that the BIFAC receives the report for information. REASONS FOR RECOMMENDATIONS: Background

Q4 2019 Work Plan Update:

The Q4 2019 Work Plan Update is set out in Attachment 1 to this report.

There are five tables, as follows:

1) Table 1 – Audit Reports Presented to BIFAC in 2019: Internal Audit Reports which were presented to BIFAC in 2019;

2) Table 2 - Status of 2018 Audit Engagements: Internal Audit 2018 Engagements which were completed in 2019;

3) Table 3 - Status of 2019 Audit Engagements: New Internal Audit engagements which were completed or substantially completed in 2019;

Page 2 of 2

4) Table 4 - Other Audit Projects and Services: Engagements where the Manager, Internal Audit leads and/or performs the project himself or with other departmental resources; and

5) Table 5 – Internal Audit Department’s Back Office Functions: Processes, systems and staffing activities supporting the Internal Audit function, led and/or performed by the Manager, Internal Audit.

Resource Requirements

We believe we have the resources available to complete all engagements in the Q4 2019 Work Plan Update as presented in the attachment.

IMPLICATIONS AND RISKS: Internal Audit Department will continue to provide quarterly updates to BIFAC on the status of the Internal Audit engagements.

SIGNATURE:

“Karim Jessani”

Karim Jessani Manager, Internal Audit ATTACHMENT:

1. December 31, 2019 Internal Audit Department Work Plan Update STAFF CONTACT: Karim Jessani - Manager, Internal Audit 416-981-4052 [email protected] Amyn Bhayani - Internal Audit Analyst 416-688-6767 [email protected]

Audit Engagement Description

IAD

Inherent

Risk

Rating

Risk description Alignment with ERMDecember 31, 2019

Update

% completion

as on

December 31,

2019

Table 1 - Audit Reports Presented to BIFAC in 2019

Follow Up on the Implementation of Recommendations from Previous Internal Audit Reports (2018)

This is the annual review of the status of recommendations made in previous Internal Audit reports.

H The risks identified in the initial audits are now known but not adequately mitigated.

CompletedPresented to BIFAC on

April 11, 2019 Confidential session and June 05, 2019

Public Session

100%

Rent Geared to Income continuous auditing (2017)

The Manager, Internal Audits leads a team of 3 RGI Auditors to review, on a sample basis, and continuously throughout the year, RGI calculations performed by the Tenant Services Coordinators (TSC) for accuracy and completeness.

H The External Auditors identified a significant financial risk in 2015 in relation to the accuracy of the RGI calculation. Management's action plan was to set up a program in 2016 and then transferred this function to IAD in February 2017.

5- Operational Process10- Brand and Reputation12- Records Management16- Operational Funding17- Non-Compliance with Legislation & Regulations

CompletedRGI Calculation Review

Program - 2017 Review

Summary

was Presented to BIFAC Confidential

session on June 05, 2019

100%

Vacant Unit Turnover Program

An evaluation of how units are turned around, from notice to vacate to the new tenant moving in.

H The process in place to ensure units are available to tenants is not effective in addressing tenants' needs in a timely manner. Consequently, tenants stay on the waiting list longer than necessary. Could result in lost rental revenue if units are vacant for an extended period of time.

5- Operational Process16- Operational Funding19- Strategic Alignment

CompletedAudit Report on Unit Turnover

was Presented to BIFAC Confidential

session on June 05, 2019

100%

Prepared by: Karim Jessani and Amyn Bhayani

Attachment 1: December 31, 2019 Internal Audit Department Work Plan

Item 2D - Internal Audit Update: Q4 2019 BIFAC Public Meeting - January 24, 2020

Report:BIFAC:2020-06 Updated 2020-01-23

1


IAD

Inherent

Risk

Rating

Risk description Alignment with ERMDecember 31, 2019

Update

% completion

as on

December 31,

2019

Construction Vendor Audit

A review of the charges submitted by contractors and contract compliance on TCHC capital projects.

H Contractors do not have necessary controls in place to ensure accurate billings to TCHC, and TCHC may not have controls in place to properly monitor construction projects.

9- Vendor management13- Procurement15- Capital Funding

Completed.Audit Report on

Construction Vendor

Presented to BIFAC Confidential session on

August 13, 2019

100%

Vacancy Rate To ensure that unit inventory and vacancy-related information is calculated and reported correctly and consistently.

M The risk that unit inventory and vacancy related information presented to board are not correct or consistent.

3- Data Governance & Integrity5- Operational Process

CompletedAudit Report on Vacancy Rate

presented to BIFAC Public session on October 08, 2019.

100%

Table 2 - Status of 2018 Audit Engagements





Planned activities have been completed and results shared with

relevant business units.

100%





2


IAD

Inherent

Risk

Rating

Risk descriptionAlignment with

ERM

Time

Estimate

(Hours)

December 31, 2019 Update

% completion

as on

December

31, 2019

Table 3 - Status of 2019 Audit Engagements

IT asset lifecycle A review of ITS processes to manage IT assets.

H The risk that IT assets are inadequately inventoried and managed to ensure there is no loss and their lifecycle is maximized.

1- Information Technology Systems5- Operational Process

440 Postpone to 2020 per management's request.

Purpose of the audit was to review the new process, which

will be implemented in Q4 2019. Therefore this audit will

be conducted in 2020.

3%

IT security A review of ITS processes to manage IT security risks.

M The risk that security around systems leads to a leak/misuse of sensitive information.


600 Fieldwork completed.Draft report will be sent for management action plan

during Q1 2020.Audit report is expected to be presented in April 2020 BIFAC

meeting.

95%

Arrears To ensure that arrears are being managed adequately and arrear related numbers are calculated and reported correctly and consistently.

M The risk that arrears are not being managed efficiently and effectively.

3- Data Governance & Integrity5- Operational Process

480 Fieldwork completed.Draft report sent for

management action plan.Audit report is expected to be presented in April 2020 BIFAC

meeting.

100%





3


IAD

Inherent

Risk

Rating


ERM

Time

Estimate

(Hours)


% completion

as on

December

31, 2019





4290 Fieldwork on following activities completed during 2019:

- PwC RGI Audit- Contract Management Audit- Future dated RGI reviews

100%

Continuous Controls Monitoring (CCM)

Continuation of the Continuous Controls Monitoring program that began during 2017. Periodic reports will be provided to management to assist in monitoring unusual transactions/trends, and identifying areas where internal controls can be strengthened.

H IAD is a small team with 2 auditors and one manager to audit all the risks in the organization. CCM provides an efficient and effective means to provide focused audit services in areas of high or medium risk.

5- Operational Process

300 Fieldwork completed. Preliminary results

communicated to process owners. Closing summary memos under finalization.

Estimated Completion: Q1 2020

97%

Follow Up on the Implementation of Recommendations from Previous Internal Audit Reports (2019)

This is the review of the status of recommendations made in previous Internal Audit reports.

H The risks identified in the initial audits are now known but not adequately mitigated.

250 Fieldwork in progress.June 30, 2019 status was

presented to BIFAC on October 08, 2019.

December 31, 2019 status being updated; expected to be presented in April 2020 BIFAC

meeting.

85%





4


IAD

Inherent

Risk

Rating


ERM

Time

Estimate

(Hours)


% completion

as on

December

31, 2019

Management's request

This includes consulting and other engagements for example, participating in pre-implementation meetings or assisting with due diligence, providing support to external parties such as AG office, collaboration with Investigations Unit, etc.

5- Operational Process

200 Ongoing 100%





5


IAD

Inherent

Risk

Rating


ERM

Time

Estimate

(Hours)


% completion

as on

December

31, 2019

Table 4 - Other Audit Projects and Services

Information Technology Advisory Services

The Manager, Internal Audit or delegate participates on Committees for procurement of IT related goods and services and provides independent and objective advisory services as and when requested.

H TCHC is going through a company-wide transformation by procuring an Enterprise Resource Planning system to replace more than 30 legacy systems. The risks are: change management; time, budget, scope creep, etc.


Attended IHMS related meeting and provided input to

the iHMS Business Lead. Additional clarifications also

provided and follow-up questions from him addressed.

Ongoing

2020 Audit workplan

The Manager, Internal Audit considers various factors and obtains input from different sources to prepare the Annual Audit Plan.

M IAD's workplan should align with the corporation's priorities. By preparing a comprehensive Annual Audit Plan, IAD ensures that its services yield value to the Management.

19- Strategic Alignment

Completed.2020 Audit Work plan being

presented to BIFAC on January 24, 2020 for approval.

100%

Table 5 - IAD's back Office Functions

Internal Audit CharterAnnual Audit Work PlanIAD Manual and TemplatesAuditing SystemsStaffing Strategy

5- Operational Process19- Strategic Alignment

Ongoing.Internal Audit functions follow a set of generally accepted internal auditing standards as well as a code of ethics. The activities described on the left are to establish standardized processes leading to efficiencies and effectiveness. Manager, Internal Audits has been working to further these items.





6

Page 1 of 3

Q4 2019 PAC Awards and Revenue Contracts Item 2E January 24, 2019 Building Investment, Finance and Audit Committee Report: BIFAC:2019-07


From: General Counsel and Corporate Secretary


PURPOSE: The purpose of this report is to notify BIFAC of the Procurement Awards Committee (“PAC”) awards in Q4 2019 and to notify the Board of Directors through BIFAC of revenue contracts between $500,000 and $5,000,000 entered into in Q4 2019. RECOMMENDATION: It is recommended that BIFAC receive this report for information. REASONS FOR RECOMMENDATIONS: PAC Awards According to the PAC Charter, PAC shall report all contract awards, approvals and change orders up to $2.5 million (exclusive of taxes) to BIFAC. The contracts and change orders approved by PAC in Q4 2019 are listed in Attachment 1.

Page 2 of 3

Revenue Contracts Pursuant to the recently amended Bylaw No. 3, revenue contracts between $500,000 and $5,000,000 shall be reported to the Board on a quarterly basis. TCHC has not entered into any revenue contracts between $500,000 and $5,000,000 in Q4 2019. At the October 8th BIFAC meeting, the Q3 2019 PAC Awards and Revenue Contracts report (BIFAC:2019-76) noted in error that no revenue contracts were entered into in Q3 2019 between $500,000 and $5,000,000. However, TCHC entered into four revenue contracts in Q3 2019 including:

1. TCHC and Clutch Market at 423 Yonge Street for $902,528.13 (10 year term commencing July 1, 2020)

2. TCHC and Global Gifts at 423 Yonge Street for $699,387.00 (10 year term commencing July 1, 2020)

3. TCHC and Amato Pizza at 423 Yonge Street for $766,635.75 (10 year term commencing July 1, 2020)

4. TCHC and Rabba Fine Foods (River Dundas) Inc. at 683 Dundas Street East for $1,196,958.40 (10 year term commencing September 1, 2019)

Page 3 of 3

IMPLICATIONS AND RISKS: Reporting of PAC awards and revenue contracts on quarterly basis is in compliance with the PAC Charter and new Bylaw No. 3, respectively.

SIGNATURE: “Darragh Meagher”

Darragh Meagher General Counsel and Corporate Secretary ATTACHMENT(S):

1. Q4 2019 PAC Awards

STAFF CONTACT: Darragh Meagher, General Counsel and Corporate Secretary 416-981-4241 [email protected]

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Toronto Community Housing Corporation Building Investment, Finance and Audit Committee 931 Yonge Street, Ground Floor Conference Room Report on Business Arising from Public Meeting Minutes BIFAC Action Item List

Report No. and Meeting Date

Description Status Target Date Assigned To

1. BIFAC:2019-80R October 8, 2019

Fire Life Safety Program Update – False Fire Alarms Management to provide report on: false fire alarms and the

impact on tenants’ wellbeing; and

what other housing providers are doing to respond to false alarms and applicability to our portfolio.

In progress

January 24, 2020

Senior Director, Fire Life Safety &

Risk Management

2. BIFAC:2019-100 November 20, 2019

HoMES Project Update Management to provide report outlining impact of new IT software on TCHC’s business, on staff and tenants, and anticipated efficiencies to be created.

In progress

April 15, 2020


Services

3. BIFAC:2019-102 November 20, 2019

Seniors Housing Unit Management to provide a presentation, in conjunction with City staff, at a future BIFAC meeting as to the manner in which the implementation of the Seniors Housing Corporation will impact

In progress

Q2 2020

Chief Executive Officer or designate

Page 2 of 2

Report No. and Meeting Date

Description Status Target Date Assigned To

TCHC’s staffing model and the services that are provided to impacted senior tenants

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Update: False Fire Alarms Item 4 January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:2020-08


From: Senior Director, Fire Life Safety & Risk Management


PURPOSE: To provide BIFAC with an update on false fire alarms at Toronto Community Housing Corporation (“TCHC”). RECOMMENDATIONS: For BIFAC to receive this update report for information. REASONS FOR RECOMMENDATIONS:

Background Toronto Fire Services (“TFS”) and other municipal fire departments have imposed fees1 on building owners in relation to when the fire department is dispatched to the scene and determines that there is no indication of an emergency nor any explanation of good intent associated with the activation of the fire alarm system. The following provides the definition of instances of false fire alarms and non-emergencies that may result in service fees:

1 Toronto Municipal Code Chapter 441, Appendix B, Schedule 1 item 28.

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1. Malicious False Alarm (“MFA”) is defined as the negligent or intentional misuse of a fire alarm system resulting in the activation of the system, but does not include the activation of a fire alarm system under circumstances that would have caused a careful or prudent person to believe that a fire related emergency was in progress at the owner’s building, or in circumstances where the owner has notified the fire department in advance of work being done on the fire alarm system that could cause a false fire alarm;

2. Nuisance False Alarm (“NFA”) is defined as the activation of a fire alarm system through smoking, mechanical failure, equipment malfunction or improper maintenance or installation of the system, but does not include the activation of a fire alarm system where the activation occurred as a result of accidental damage to the system; and

3. Non-Emergency Elevator (“NEE”) is defined as an incident that

results in a response to assist and release an individual(s) in an elevator that is deemed to be a non-emergency.

As of April 1, 2019, the fees for a malicious and nuisance false fire alarm is $1,431 per dispatch (3 vehicles) or $477 per fire vehicle dispatched. As well, the fees for elevator non-emergency incident is $477 per fire vehicle. False Fire Alarm Charges TCHC historically has been charged large sums in fees for false fire alarms. For 2019, TCHC has incurred $3,464,312 in fees resulting from 1,858 false fire alarm calls, which surpasses the 2018 fees and false fire alarm calls. The 2019 figures are subject to change upon receiving the finalized reports from TFS. In reviewing historical data (see Table 1), there is an increasing trend of fees and false fire alarm incidents. Additional data is provided in Attachment 1. Table 1: False Fire Alarm Calls & Fees, 2010 - 2019

Year Malicious Nuisance Elevators Total Calls Total Fees ($)2019 884 609 365 1,858 3,464,312 2018 764 670 456 1,890 3,385,489 2017 807 732 728 2,267 3,008,281 2016 585 711 400 1,696 2,887,872 2015 599 718 397 1,714 2,791,195

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Year Malicious Nuisance Elevators Total Calls Total Fees ($)2014 697 644 422 1,763 2,622,997 2013 650 604 383 1,637 2,651,084 2012 493 419 349 1,261 1,836,898 2011 470 475 285 1,230 1,793,925 2010 484 378 322 1,184 1,631,015

False Fire Alarm Reimbursements At TFS, the Financial Services Division provides oversight to the invoicing, reimbursement and cancellation of invoices. The reimbursement process is outlined in Toronto Municipal Code Chapter 442-2. Whichever is less, a rebate of up to 90% of the false fire alarm fee or the cost incurred to correct the problem of the false alarm is available to property owners who make concerted efforts to reduce malicious and nuisance false alarms. As a property owner, TCHC may appeal a false fire alarm charge by requesting a review of the charge. On the application form, TCHC must include the reason for the appeal and provide all supporting documentation to support that the incident was not a false fire alarm. TCHC receives a monthly report from TFS with all calls for which TCHC has been invoiced. TCHC then reviews the calls and ascertains the cause of the alarm to see if it was activated correctly. For example, whether the alarm was activated from smoke or whether there was no cause for alarm, TCHC staff then writes to TFS providing the reason for the appeal with supporting information justifying it was not a false fire alarm. It should be noted that according to the application for reimbursement, the submission must relate to the building address where the incident occurred and repairs must be incident related. Thus TCHC is not able to apply for bulk reimbursement. Moreover, TFS will not reimburse TCHC for fees that are related to regular maintenance repairs resulting from annual inspection deficiencies or security patrol.

IMPLICATIONS AND RISKS: At TCHC, false fire alarms have widespread implications, specifically to both our tenants and the corporation. For TCHC tenants, false fire alarms are disruptive and troublesome. As well, false fire alarms eventually contribute to alarm fatigue, which may put tenants in danger in the event of

Page 4 of 4 an actual fire and/or emergency. For the corporation, false fire alarms result in significant fees related to the charges associated with each of the incidents. In addition, it requires that TCHC allocate dedicated administrative resources to provide oversight to receiving, reviewing, and providing payment, as well pursuing any reimbursements as it relates to the false fire alarm fees. To reduce the frequency and fees related to false fire alarms, TCHC has established an inter-disciplinary task group comprising of members from Operations, Corporate Fire Life Safety, and Toronto Fire Services. The false fire alarm task group will conduct a review of properties with a high prevalence of false fire alarms and leverage data to implement targeted initiatives, which includes physical prevention and mitigation measures. As well, the group will support the development of a risk-based plan to address the three streams of false fire alarms: malicious, nuisance, and elevator non-emergencies, building on previous measures that are currently or have previously been implemented. Moving forward, TCHC will work with internal and external partners to inform the implementation of the above activities. In doing so, TCHC aims to reduce the frequency and cost associated with false fire alarms across the portfolio.

SIGNATURE:

“John P. Angkaw”

John P. Angkaw Senior Director, Fire Life Safety & Risk Management ATTACHMENT:

1. False Fire Alarms, 2018 & 2019 STAFF CONTACT: John P. Angkaw, Senior Director, Fire Life Safety & Risk Management 416-981-4318 [email protected]

Attachment 1: False Fire Alarms, 2018 & 2019

Table 1: False Fire Alarms by Building Types 2018 2019

Building Types Total Calls Total Fees Total Calls Total Fees

High Rise 1,448 $ 2,576,160 1,412 $ 2,659,007 Low Rise 134 $ 227,476 129 $ 224,434

Towns & Walkups 132 $ 301,602 120 $ 260,064 Mid Rise 114 $ 181,950 115 $ 194,299 Houses 42 $ 72,211 42 $ 61,474

Other 20 $ 26,090 40 $ 65,034 Total 1,890 $ 3,385,489 1,858 $ 3,464,312

Table 2: False Fire Alarms by Top 5 Operating Units

2018 2019

Op. Unit Total Calls Total Fees Op. Unit Total Calls Total Fees

OUY 290 $ 524,796 OUY 297 $ 584,843 OUK 243 $ 565,902 OUK 210 $ 548,385 OUW 165 $ 329,256 OUW 185 $ 375,076 OUD 131 $ 224,626 OUE 130 $ 205,780 OUE 119 $ 188,514 OUG 114 $ 235,678 Total 948 $1,833,095 Total 936 $1,949,761

Item 4 - Fire Life Safety - False Fire Alarm Update BIFAC Public Meeting - January 24, 2020

Report:BIFAC:2020-08

1

Table 3: False Fire Alarms by Top 10 Buildings 2018 2019

Buildings Calls Fees Calls Fees

251 Sherbourne 41 $ 161,159 251 Sherbourne 31 $ 125,357 44 Willowridge 25 $ 92,296 200 Sherbourne 35 $ 116,290

4205 Lawrence 31 $ 80,012 4205 Lawrence 34 $ 101,442 200 Wellesley 34 $ 77,777 44 Willowridge 27 $ 98,549

200 Sherbourne 30 $ 70,644 4301 Kingston 24 $ 79,830 285 Shuter 22 $ 62,947 5 Wakunda 21 $ 65,573

4301 Kingston 27 $ 56,443 200 Wellesley 27 $ 64,467 275 Shuter 24 $ 45,320 285 Shuter 22 $ 58,763

444 Lumsden 22 $ 41,121 415 Willowdale 21 $ 50,856 250 Davenport 24 $ 39,821 275 Bleecker 19 $ 41,489

Total 280 $ 727,540 Total 261 $ 802,614

Table 4: False Fire Alarm by Direct/Contract Portfolios 2018 2019

Portfolios Total Calls Total Fees Total Calls Total Fees

Direct 1,313 $ 2,348,112 1,282 $ 2,342,566 Contract: Del 455 $ 854,052 482 $ 959,919

Contract: Greenwin 107 $ 162,248 86 $ 146,330 Co-Op 8 $ 11,339 8 $ 15,498

In-Active 7 $ 9,738 0 $ 0 Total 1,890 $ 3,385,489 1,858 3,464,312

Item 4 - Fire Life Safety - False Fire Alarm Update BIFAC Public Meeting - January 24, 2020


2

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Update: False Fire Alarms – Supplemental Report Item 4 Supplemental January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:2020-16


From: Senior Director, Fire Life Safety & Risk Management


PURPOSE: To provide BIFAC a supplemental report on false fire alarms at Toronto Community Housing Corporation (“TCHC”). RECOMMENDATIONS: For BIFAC to receive this supplemental report for information. REASONS FOR RECOMMENDATIONS: This supplemental report provides additional information on the average false fire alarm fees per unit for the top buildings, operating units, and those direct and contract managed buildings.

SIGNATURE:

“John P. Angkaw”

John P. Angkaw Senior Director, Fire Life Safety & Risk Management

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ATTACHMENT:

1. False Fire Alarms, 2018 & 2019 STAFF CONTACT: John P. Angkaw, Senior Director, Fire Life Safety & Risk Management 416-981-4318 [email protected]

Item 4 Supplemental – Update: False Fire Alarms – Supplemental Report BIFAC Public Meeting – January 24, 2020 Report:BIFAC:2020-16

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Attachment 1: False Fire Alarms, 2018 & 2019 Table 1: Average Fees per Unit and Percent Change, Top 10 Buildings 2018 2019

Buildings Calls Fees ($) Avg. Fees/Unit ($) Buildings Calls Fees ($) Avg. Fees/Unit ($) % Change 251 Sherbourne 41 161,159 805.80 251 Sherbourne 31 125,357 626.79 22.0

44 Willowridge 25 92,296 387.80 200 Sherbourne 35 116,290 668.33 64.6 4205 Lawrence 31 80,012 231.92 4205 Lawrence 34 101,442 294.03 26.8

200 Wellesley 34 77,777 108.17 44 Willowridge 27 98,549 414.07 6.70 200 Sherbourne 30 70,644 406.00 4301 Kingston 24 79,830 190.53 41.4

285 Shuter 22 62,947 209.82 5 Wakunda 21 65,573 331.18 436 4301 Kingston 27 56,443 134.71 200 Wellesley 27 64,467 89.66 17.1

275 Shuter 24 45,320 151.57 285 Shuter 22 58,763 195.88 6.6 444 Lumsden 22 41,121 150.62 415 Willowdale 21 50,856 258.15 265

250 Davenport 24 39,821 86.57 275 Bleecker 19 41,489 137.84 28.0 Total 280 727,540 Total 261 802,614

Item 4 Supplemental – Update: False Fire Alarms – Supplemental Report BIFAC Public Meeting – January 24, 2020 Report:BIFAC:2020-16

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Table 2: Average Fees per Unit and Percent Change, Top 5 Operating Units 2018 2019

Operating Unit Calls Fees ($) Avg. Fees/Unit ($)

Operating Unit Calls Fees ($) Avg. Fees/Unit ($) % Change

Contract: Del - OUY 290 524,796 89.56 Contract: Del - OUY 297 584,843 99.80 11.4 OUK 243 565,902 163.46 OUK 210 548,385 158.40 3.1

Contract: Del - OUW 165 329,256 85.94 Contract: Del - OUW 185 375,076 97.91 13.9 OUD 131 224,626 63.53 OUE 130 205,780 48.43 9.2 OUE 119 188,514 44.37 OUG 114 235,678 109.31 56.9 Total 948 1,833,095 Total 936 1,949,761

Table 3: Average Fees per Unit and Percent Change, Direct and Contract Portfolios 2018 2019

Portfolios Calls Fees ($) Avg. Fees/Unit ($) Calls Fees ($) Avg. Fees/Unit ($) % Change Direct 1,313 2,348,112 51.99 1,282 2,342,566 51.87 0.23

Contract: Del 455 854,052 88.13 482 959,919 99.05 12.4 Contract: Greenwin 107 162,248 58.47 86 146,330 52.73 9.8

Co-Op 8 11,339 29.38 8 15,498 40.15 37.0 In-Active 7 9,738 76.08 0 0 - -

Total 1,890 3,385,489 1,858 3,464,312

Q4 2019 HoMES Project Update Item 5A January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:C2020-09


From: Vice President, Information Technology Services


PURPOSE: The purpose of this report is to provide BIFAC with an update as to the status of the TCHC Business Transformation (“HoMES”) Project. RECOMMENDATIONS: It is recommended that BIFAC receive this report for information. REASONS FOR RECOMMENDATIONS: TCHC has committed to continuing to provide the following level of reporting to BIFAC and the Board of Directors:

Quarterly project updates to BIFAC; and Yearly, and as required, project updates to the Board.

STATUS: The overall status of the HoMES project remains on track. PROGRESS UPDATE: Track 1 (Finance and Capital Planning and Maintenance) The project team has completed all business process design activities, configuration activities and initial testing. No significant issues were raised during the testing period in late 2019. On January 20, 2020 the project team

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will commence a second phase of testing where integrations between the Yardi solution and other TCHC business applications will be tested. Track 1 is still on schedule to launch July 1, 2020. In November 2019, the HoMES Steering Committee approved the addition of a second Go Live date to accommodate operational needs for Capital Planning and Maintenance. Track 1B is schedule to Go Live on January 1, 2021.

Track 2 (Residential Tenancy Management) Track 2 business process design sessions started in December 2019. The HoMES project team and the Restructuring team are working closely together to ensure that processes developed for the HoMES solution are fully aligned with the goals of the restructuring efforts. Business process design work is scheduled to continue to the end of May 2020. Data preparation activities for Track 2 data have started.

Track 3 (Onboarding Contract Managed Providers) This track is scheduled to start after Track 2 goes live and will be reported on once project activities have started.

Stage of Completion As of December 31, 2019, the HoMES project had been in progress for seven months, with 17 months remaining until Go Live for Track 2. According to the Integrated Project Plan, Track 1 project activities are 51% complete, Track 2 project activities are 6% complete, and the overall project is 31% complete.

Approved Change Orders In February 2019, the Board of Directors approved the implementation of the TCHC Business Transformation HoMES Project with a total budget of $55,300,000, including contingency, to replace more than 30 legacy business applications.

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The HoMES project budget is allocated across four categories:

1. System Implementation 2. Software Subscription Licensing 3. Other Project Resources and Expenses, which includes the

procurement or recruitment of internal and external resources to perform:

o Business Process Redesign o Data preparation and conversion o Change Management, Training and Communication o Project Management

4. Contingency

After submission of the budget and prior to Board approval in February 2019, TCHC continued to negotiate final pricing with our vendors to obtain a best and final offer. These negotiations resulted in final contract awards which were less than originally budgeted.

On November 20, 2019 BIFAC requested regular updates of financial performance against approved budget and a summary of all approved change orders.

Contingency is reserved for cases where unplanned changes cannot be absorbed within the original project budget. The base project budget has had sufficient funds to absorb the majority of changes to date. Change orders to increase the original award to a specific vendor require approval as per TCHC’s Procurement Policy, and to this point have had no impact on the overall budget.

With respect to change orders to date, there have been $1,242,120 in approved change orders to facilitate project work in the category of Other Project Expenses. There is sufficient budget within this category to fund the change orders without the need to draw upon the Contingency.

Two of the approved change orders totaling $355,000 were for work in the System Implementation category. The budget allocation for this category did not accommodate these change orders, and an equivalent amount was moved from Contingency to this category. This did not impact the overall HoMES budget.

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Table 1: Project Budget Summary Project Budget: Approved on February 27, 2019 Value of Approved Contracts $30,850,820Project Contingency Budget $3,940,000Other Project Resources/Expenses $20,509,180Original Total Approved Project Budget $55,300,000Project Budget: Updated as of January 14, 2020 Revised Total Value of Approved Contracts (Table 2) $32,459,940Remaining Contingency Budget (Table 3) $3,585,000Revised Project Resources/Expenses (Table 4) $17,015,060Revised Total Project Budget $53,060,000

The TCHC HoMES project budget is currently forecasting below budget with a forecasted reduction of $2,240,000. This is primarily as a result of contract negotiations which occurred after the budget was submitted for approval and a delay in onboarding project resources in 2019.

Table 2: Change Orders as of January 14, 2020 Change Orders Original Value of Approved Contracts $30,850,820Approved Change Orders $1,609,020Revised Value of Approved Contracts $32,459,940

Table 3: Contingency Remaining as of January 14, 2020 Remaining Contingency Original Project Contingency $3,940,000Draw on Contingency $-355,000Revised Project Contingency Budget $3,585,000

Table 4: Other Project Resources and Expenses as of January 14, 2020 Other Project Resources and Expenses Original Project Resources/Expenses $20,509,180Reduction in Project Resources/Expenses $-3,494,120Revised Project Resources/Expenses $17,015,060

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RISKS: The HoMES project has not identified any new risks since the last update provided to BIFAC on November 20, 2019.

SIGNATURE:

“Luisa Andrews”

Luisa Andrews Vice President, Information Technology Services STAFF CONTACT: Luisa Andrews, Vice President, Information Technology Services 416-981-5012 [email protected]

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2019 Information Technology Services Report Item 5B January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:C2019-10


From: Vice President, Information Technology Services (“ITS”)


PURPOSE: The purpose of this report is to provide an update to the Building Investment, Finance and Audit Committee on Information Technology Services. 2019 ITS YEAR END SUMMARY: The 2019 ITS operational plan focused primarily on the replacement of End-of-Life (“EOL”) technologies, conducting an assessment of TCHC’s networks and infrastructure, completing a number of planned application upgrades, and enhancing the end user experience.

A summary of the team’s activities in 2019 are grouped into three categories:

1. Keep the Lights On (“KTLO”): This category outlines all the activities required to ensure that the business remains up and running. These activities include actioning any issues impacting business operations as they arise or fulfilling standard requests from the business, such as setting up new shared folders or onboarding a new employee. In 2019, the ITS team responded and resolved 6383 incidents. Approximately 30% of the incidents were issues with end user devices

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(laptop or desktop). Incidents are indicative of an EOL operating system (“OS”) and aging equipment. In 2019, the ITS team initiated the replacement project of all end-user devices and the upgrade of the Windows 7 OS to Windows 10. The Windows 10 project is completed. The end-use device replacement project will conclude by the end of April 2020. The second most common incident (28%) were issues with corporate applications. Again, incidents are indicative of EOL and End-of Support (“EOS”) applications. The HoMES project is one of many projects in progress or planned in the upcoming year to replace or upgrade business applications. The ITS team responded and completed 13,046 requests in 2019. Request are small tasks which can be completed with minimal effort and involve only a few ITS team members. The most common requests were in the category of reporting and access. Requests which require a variety of ITS resources, the procurement of a new technology software, or may impact more than one area of the organization are moved into the category of Business-Requested or ITS Led Initiatives.

2. ITS-Led Initiatives: There are a number of technologies in place at TCHC that are invisible to the organization, but play a critical role in enabling business facing technologies and protecting the organization from unauthorized access to systems or data. Not unlike our core business applications and end-user devices, these technologies were in need of replacement or upgrade. New technologies were also implemented in 2019 to lay the foundation for Business Intelligence. The ITS team completed more than 15 ITS-led initiatives in 2019.

3. Business Requested Initiatives requiring ITS Support: Business Requested initiatives are made at the request of a business unit. The ITS team completed more than 5 business requested initiatives in 2019.

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INFORMATION TECHNOLOGY SERVICES MANAGEMENT: TCHC’s Information Technology team has adopted ITIL (Information Technology Infrastructure Library) as its framework for Information Technology Service Management (“ITSM”). ITMS focuses on aligning IT services with the needs of business. In 2019, the entire ITS team was certified in ITIL v3 Foundations.

2020 ITS OPERATIONS PLAN: The ITS leadership team has completed the development of the 2020 ITS Operations Plan and this plan is in the final stages of review and approval. SIGNATURE:

“Luisa Andrews”

Luisa Andrews Vice President, Information Technology Services STAFF CONTACT: Luisa Andrews, VP IT Services 416-981-5012 [email protected]

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Update on Tenants First Item 6 January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:C2020-11


From: Acting Director, Strategic Planning & Stakeholder Relations


PURPOSE: The purpose of this report to provide BIFAC with an update on the Tenants First process being led by the City’s Deputy City Manager and the Social Development, Finance & Administration (“SDFA”) division. RECOMMENDATION: It is recommended that this report be received for information.

BACKGROUND Overall TCHC-City Coordination Process The CEO and City Manager continue to meet monthly to maintain a direct line of communication between TCHC and the City, ensuring that oversight and accountability continues. The City developed a dashboard that tracks the progress of the Tenants First work streams. Content from the dashboard is included in this update (Attachment 1), which lists the overall status and key milestones of the seven work streams. Six of the seven work streams are on track, with one facing a slight gap to schedule.

Page 2 of 6 Permanent Funding Model A new TCHC permanent funding model was co-developed by the City and TCHC to be implemented during the 2020 budget, and was approved by City Council in November 2019. The new funding model will provide a baseline subsidy of $160 million annually for capital and $251 million annually for operating expenses beginning in 2020 and will allow for inflationary increases. The subsidy amount is going for approval to Executive Committee and City Council in February 2020 as part of the City’s 2020 budget process. TCHC’s Operating Agreement with the City will be revised to reflect the new funding formula, with a target completion date of Q2 2020. Development In July 2019, City Council approved in principle the transfer of TCHC’s development function to CreateTO and/or the City, and directed TCHC to work with the City and CreateTO to conduct the necessary due diligence for the transfer. The City’s due diligence report on the transfer was targeted for Q4 2019, however City staff determined that additional time was required to fully assess the various options for the organizational structure of the development functions being transferred. The due diligence process is continuing, and the report is expected to go forward to City Council in June 2020.

Seniors Corporation/Integrated Service Model In May 2018, City Council directed the City to develop and recommend an approach for transferring seniors-designated buildings from TCHC to a future seniors housing and services entity. In addition, City Council directed the City and TCHC to work together to implement a new Integrated Service Model for seniors housing to promote ageing in place and better quality of life for seniors. In July 2019, City Council directed the City to establish a wholly-owned City services corporation to manage and operate the seniors designated buildings. Seniors Corporation The City is completing due diligence on the establishment of a formal seniors corporation, and TCHC provides support to that process as

Page 3 of 6 needed. Draft recommendations are currently on track to be completed in Q3 2020. Integrated Service Model The City and TCHC have been working together to complete the implementation plan for the Integrated Service Model (ISM). The 83 seniors buildings have been organized into five regions, with each region comprising approximately 20 percent of the seniors portfolio. The ISM will be rolled out in five phases corresponding with each region. Phase 1 will be launched in Q2 2020 in the South East region in 18 buildings (2,826 units). Job evaluations and recruitment for new positions that will part of Phase 1 are underway. TCHC labour partners, staff and tenants will be engaged prior to the Phase 1 rollout. TCHC is also working with the City to finalize an accountability framework for the ISM consisting of key indicators, a methodology for collecting and reporting data, and developing an internal City structure to review and provide feedback, which is targeted for February 2020. Asset Transfers Mortgage Substitutions and Severances The discharges of Infrastructure Ontario (“IO”) mortgages registered against Agency, Uninhabited, Rooming, Scattered houses, and required property substitutions are proceeding according to schedule. The first tranche of properties encumbered by IO loans closed in October, with the second tranche completed in November. The remaining tranches are expected to be closed in Q3 2020, subject to IO’s satisfaction with the proposed replacement properties. External legal counsel are continuing to process severance applications for the remaining Agency and Uninhabited houses as needed. Some severances can be handled on an expedited basis which does not require a full hearing and some are more complex, requiring a full Committee of Adjustment hearing. Applications submitted on an expedited basis generally take about 3-4 months. The more complex applications take

Page 4 of 6 approximately 9-12 months and have to be placed on the Committee of Adjustment’s agenda in order of receipt.

Some of these severances may also require an Official Plan Amendment, if they contain more than six dwelling units. This will extend timelines an additional six to twelve months, depending on the requirements from City Planning staff. TCHC legal counsel, together with external counsel, Tenants First and SPSR representatives continue to work with City Planning staff to proceed as expeditiously as possible with these severances. However, the Committee operates within rules set under the Planning Act, and City Planning staff do not have authority to expedite the TCHC applications under this Act.

Agency and Uninhabited Houses TCHC and the City continue to work to transfer all Agency and Uninhabited houses to eligible agencies. After completing due diligence to ensure agency capacity to secure the necessary funding, the City has formally authorized the transfer of 14 properties to seven agencies. Draft Agreements of Purchase and Sale (“APS”) for these properties have been sent out to those agencies for review, and five have been executed. The majority of the Agency houses (21 of the 30) will be transferred by Q2 2020. The remaining houses will be transferred as the mortgage substitutions and severances are completed. A list of all of the Agency and Uninhabited houses along with their severance and substitution status is included in Attachment 2. Rooming Houses The City continues to work with Dixon Hall to develop an operating and capital plan including an appropriate funding model, which will allow for the successful transfer of the Rooming houses. Scattered Houses The City and TCHC have finalized a request for proposals (“RFP”) to select the agencies/non-profit housing providers that will purchase the Scattered houses. The RFP was published on October 31, 2019, with submissions due in February 2020. The City will seek City Council approval of the

Page 5 of 6 recommendations resulting from the RFP in June 2020. Once approved, TCHC will have the authority to transfer the Scattered houses to the organizations selected through the RFP process and will request Board approval to complete the transfer. Proceeds from the Sale of Houses The prices for the transfer of the Agency and Uninhabited houses (49 houses in total) have been established by the City using a custom methodology. The goal was for the total price of all houses to equal the total outstanding mortgage principle of all houses, plus the estimated transaction costs of the transfer process. Once received, the proceeds from each sale will be used to offset these transaction costs, and the balance used to pay down mortgage debt.

Once transfer prices have been established for the Rooming houses and Scattered portfolio, TCHC will provide an update to BIFAC on how proceeds from the sale of these properties will be allocated.

Mandate TCHC and the City have resumed discussions to finalize TCHC’s mandate. The City remains on track to develop a draft Shareholder Direction in June 2020, with a report to Council targeted for September 2020. IMPLICATIONS AND RISKS: TCHC is undertaking these actions in accordance with directions from City Council. It is recognized and accepted by TCHC that the full portfolio of Scattered houses will not be sold at fair market value and management is supportive of moving ahead with the transfers. There remain a number of implications of which the Board should be aware. Transferring these assets will have an impact on TCHC’s ability to borrow and on the Net Operating Income. In 2017, these assets generated NOIs in the amount of approximately $6 million. Based on this number and assuming a 30-year loan term at a 4% interest rate, the estimated loan amount that can be borrowed was calculated at $105M. In transferring these assets, we may lose the capacity to borrow $105M in the future. Based on 2017 MPAC assessments, TCHC will lose approximately $380M

Page 6 of 6 in assets as a result of the transfers. Removing these assets from our portfolio will result in a reduction of approximately $100M related to capital repairs. These risks have been shared with the City’s Tenants First team. SIGNATURE:

“Scott Kirkham”

Scott Kirkham Acting Director, Strategic Planning and Stakeholder Relations ATTACHMENT:

1. Tenants First Dashboard

2. Transfer Status – Agency Houses and Uninhabited Houses

STAFF CONTACT: Scott Kirkham, Acting Director, Strategic Planning and Stakeholder Relations (416) 981-4285 [email protected]

Workstream

Dec

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Funding Model

Development

Seniors

Corporation

Integrated Service

Model

Relationship Unit

Transfers

Mandate

Tenant’s First Program Update

1


Overall Monthly Status:

On TrackSlight gap to schedule, target

benefit – needs attention

Significant Gap to schedule, budget and

target benefits

2020 Budget process

Begin Phase 1 implementation

Review RFP with panel Council Report on RFP

Operating Agreement

Begin transfers of agency houses

External legal engaged if necessary

LR review completed

Due diligence report to exec

Accountability framework

Staffing complete

Draft Shareholder Direction

Operating Agreement

Briefing Note to Councillors

Report to Council

Accountability Framework report

Final Report to Council

Pre-bid meeting

Item 6 - Update on Tenants First BIFAC Public Meeting - January 24, 2020 - Report:BIFAC:2020-11 Attachment 1

AddressNumber

of UnitsCategory

Infrastructure

Ontario (IO)

Discharge

Required?

IO Discharge

Completed?

Severance

Required?

Severance

Granted ?

Agreement

of Purchase

and Sale

Circulated?

Agreement of

Purchase and

Sale

Executed?

Property

Transferred?

Estimated

Transfer Year

1 165 Elm Ridge Drive 14 Agency Yes Yes No N/A Yes No No 20202 257 Dundas Street East 36 Agency Yes No No N/A Yes No No 20203 981 Dundas Street West 2 Agency No N/A No N/A Yes No No 20204 234 Carlton Street 9 Agency Yes No Yes Not yet No No No 20205 236 Carlton Street 13 Agency Yes No Yes Not yet No No No 20206 261 Hastings Avenue 5 Agency Yes Yes Yes Yes No No No 20207 2A Lindsey Avenue 1 Agency No N/A Yes Yes No No No 20208 60 Fairford Avenue 4 Agency Yes No Yes Not yet No No No 20209 40 Trefann Street 1 Agency No N/A TBD TBD No No No 2020

10 118 Havelock Street 2 Agency No N/A No N/A No No No 202011 128 Havelock Street 5 Agency No N/A No N/A No No No 202012 16 Redwood Avenue 5 Agency Yes Yes No N/A No No No 202013 162 Langley Avenue 1 Agency No N/A No N/A No No No 202014 297 Willow Avenue 1 Agency No No No N/A No No No 202015 38 Prospect Street 11 Agency Yes No No N/A No No No 202016 444 Gladstone Avenue 7 Agency No N/A No N/A No No No 202017 50 Barrington Avenue 4 Agency Yes Yes No N/A No No No 202018 53 Grant Street 5 Agency Yes Yes No N/A No No No 202019 57 Brandon Avenue 5 Agency Yes No No N/A No No No 202020 57 Hillsview Avenue 5 Agency Yes No No N/A No No No 202021 64 Muir Avenue 7 Agency Yes No No N/A No No No 202022 697 Woodbine Avenue 5 Agency Yes Yes No N/A No No No 202023 73 Sorauren Avenue 5 Agency No N/A No N/A No No No 202024 75 Northcote Avenue 6 Agency No N/A No N/A No No No 202025 77 Nairn Avenue 1 Agency No N/A No N/A No No No 202026 955 Dundas Street West 1 Agency No N/A No N/A No No No 202027 987 Dundas Street West 1 Agency No N/A No N/A No No No 202028 490 Huron Street - Agency Yes Yes Yes Not yet No No No 202129 285-291 Jarvis Street 24 Agency Yes No No N/A No No No 202530 321 Jones Avenue 1 Uninhabited No N/A Yes Not yet Yes Yes No 2020

Attachment 2 - Agency and Uninhabited Homes - Transfer Status

Item 6 - Update on Tenants First BIFAC Public Meeting - January 24, 2020

Report:BIFAC:2020-11 Attachment 2

1

AddressNumber

of UnitsCategory

Infrastructure

Ontario (IO)

Discharge

Required?

IO Discharge

Completed?

Severance

Required?

Severance

Granted ?

Agreement

of Purchase

and Sale

Circulated?

Agreement of

Purchase and

Sale

Executed?

Property

Transferred?

Estimated

Transfer Year

Attachment 2 - Agency and Uninhabited Homes - Transfer Status

31 34 Kessack Court 1 Uninhabited No N/A Yes Not yet Yes Yes No 202032 85 Brooklyn Avenue 1 Uninhabited No N/A Yes Yes Yes Yes No 202033 41 Hamilton Street 1 Uninhabited No N/A No N/A Yes Yes No 202034 760 Eastern Avenue 1 Uninhabited No N/A No N/A Yes Yes No 202035 126 Eastwood Avenue 1 Uninhabited No N/A No N/A Yes No No 202036 157 First Avenue 1 Uninhabited No N/A No N/A Yes No No 202037 2 Alameda Avenue 1 Uninhabited No N/A No N/A Yes No No 202038 231 Booth Avenue 1 Uninhabited No N/A No N/A Yes No No 202039 24 Saulter Street 1 Uninhabited No N/A No N/A Yes No No 202040 896 Eastern Avenue 1 Uninhabited No N/A No N/A Yes No No 202041 222 Carlton Street 11 Uninhabited Yes No Yes Yes No No No 202042 626 Coxwell Avenue 1 Uninhabited No Yes Yes Not yet No No No 202043 110 Main Street 1 Uninhabited No N/A No N/A No No No 202044 1683 Gerrard Street East 1 Uninhabited No N/A No N/A No No No 202045 259 Hastings Avenue 1 Uninhabited No N/A No N/A No No No 202046 262 Old Weston Road 1 Uninhabited No N/A No N/A No No No 202047 51 Tiverton Avenue 1 Uninhabited No N/A No N/A No No No 202048 6 Shipman Street 1 Uninhabited Yes No No N/A No No No 202049 143 Stephenson Avenue 13 Uninhabited Yes Yes Yes Not yet No No No 2021

Item 6 - Update on Tenants First BIFAC Public Meeting - January 24, 2020

Report:BIFAC:2020-11 Attachment 2

2

Page 1 of 3

Internal Audit: 2020 Internal Audit Work Plan Item 7 January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:2020-12


From: Manager, Internal Audit


PURPOSE: To provide the BIFAC with a plan on utilization of the Internal Audit Department resources in 2020. This plan is presented in a document entitled “2020 Internal Audit Work Plan” and referred through the rest of the document as “the 2020 Work Plan”. RECOMMENDATIONS: It is recommended that the BIFAC approves the 2020 Work Plan as presented in the attached document. REASONS FOR RECOMMENDATIONS:

Background Each year, BIFAC approves Internal Audit Work plan as per section E Internal Audit, Accounting Systems and Internal Controls of the charter, which describes one of BIFAC responsibilities as: “Reviewing and approving the Internal Audit work plans…”

Page 2 of 3

The 2020 Work plan was prepared considering the available staffing resources and the following:

1) Collaboration with ERM keeping in view top 10 organizational risks identified by them.

2) Audit projects deferred from last year.

3) Audit projects executed during the last 5 years (2015-19).

4) Management’s requests.

5) Review of audit plans for the AG’s office and City of Toronto’s IA Dept. including discussions with them to ensure optimal use of our resources.

2020 Internal Audit Work Plan The 2020 Work Plan is set out in Attachment 1 to this report.

There are three tables, as follows:

1) Table 1 – New Projects: New engagements that will be completed or substantially completed in 2020;

2) Table 2 – Standing Items: Engagements that are being completed every year; and

3) Table 3 – Other Items: Other Internal Audit activities not categorized as New Projects or Standing Items (above).

Resource Requirements We believe we have the resources available to complete and/or substantially complete all engagements in the 2020 Work Plan as presented in the attached document.

Page 3 of 3

IMPLICATIONS AND RISKS: The 2020 Work Plan takes into consideration risks and other factors as mentioned above.

We will provide BIFAC with quarterly status updates on this work plan.

SIGNATURE:

“Karim Jessani”

Karim Jessani Manager, Internal Audit ATTACHMENT:

1. 2020 Internal Audit Work Plan STAFF CONTACT: Karim Jessani - Manager, Internal Audit 416-981-4052 [email protected] Amyn Bhayani - Internal Audit Analyst 416-688-6767 [email protected]

TCHC Internal Audit DepartmentItem 7 - Internal Audit: 2020 Internal Audit

Work Plan Attachment 1

Annual Audit Plan for 2020BIFAC Public Meeting - January 24, 2020


Audit Engagement Description Potential Risk

Alignment with

ERM

Priority Risks

DivisionTime Est.

(Hours)

Estimated

Start

Table 1 - New Projects

Insurance Coverage & Claims Review

A review of the adequacy of insurance coverage and claims management.

> Company assets are inadequately insured.> Insurance claims are not filed on a timely basis.

5- Operational Process17- Non-compliance with legislations & regulations

Legal (ERM) 363 Q-1

IT Asset Management Review

A review of ITS processes to manage IT assets.

> IT assets are inadequately inventoried and managed.> IT assets' lifecycle is not optimized.


ITS 363 Q-2

Hiring and Onboarding Review

A review of HR end to end hiring and onboarding process.

> Hiring policies and procedures are not followed.> Applicable legislative compliance is not achieved.> Suboptimal onboarding process.

6- HR Process17- Non-compliance with legislations & regulations

HR 363 Q-2

Payroll Process Review A review of HR payroll process including Public Sector Salary Disclosure

> Payroll policies and procedures are not followed.> Applicable legislative compliance is not achieved.> Inaccurate payroll processing.

6- HR Process17- Non-compliance with legislations & regulations

HR 363 Q-3

Continuous Controls Monitoring (CCM)

Data analytics to identify unusual transactions/trends and identifying areas where internal controls can be strengthened.

IAD is a small team with 2 corporate audit analysts and one manager to audit all the risks in the organization. CCM provides an efficient and effective means to focus on high or medium risk areas.

5- Operational Process Various 218 Q-3

Management's request Special assignment requests. Due to the recent restructuring, we expect assignments in various business areas.

VariousVarious Various 580 Ongoing

1






Alignment with

ERM

Priority Risks

DivisionTime Est.

(Hours)

Estimated

Start

Table 2 - Standing items

Follow Up on the Implementation of Recommendations from Previous Internal Audit Reports

This is the review of the status of recommendations made in previous Internal Audit reports including reviewing supporting audit evidence. BIFAC will be provided 2 status updates during the year.

The risks identified in the initial audits are now known but not adequately mitigated.

Various Various 218 Ongoing

RGI continuous auditing This includes:> PwC RGI Review> Future Dated Review> Contract Management Review - New samples> Contract Management Review - Follow-up> Special requests such as from AG's office, etc.

The External Auditors identified a significant financial risk in 2015 in relation to the accuracy of the RGI calculation. Management set up a program in 2016 and then transferred this function to IAD in February 2017. Now the 3-member RGI team performs various RGI related reviews throughout the year.


Operation

s 5031 Ongoing

Information Technology and other Advisory Services

As and when requested, the Manager, Internal Audit will participate on Committees for IT projects or procurement of various IT assets to provide independent and objective advisory services.

TCHC is going through a company-wide transformation by procuring an Enterprise Resource Planning system to replace more than 30 legacy systems. The risks are: change management; time, budget and scope creep.

1- Information Technology Systems5- Operational Process ITS 73 Ongoing

2






Alignment with

ERM

Priority Risks

DivisionTime Est.

(Hours)

Estimated

Start

Annual Audit Plan & Risk Assessment refresh

The Manager, Internal Audit will revisit operational risks and will update it to reflect current processes and other factors in the organization. This would be done in consultation with ERM and will be used to prepare the Annual Audit Plan for 2021 and to update the Rolling Plan for 2022-24.

IAD's workplan should align with the corporation's priorities. By performing this operational risk assessment refresh, IAD ensures that its services yield value to the Management.

19- Strategic Alignment Various 145 Q-4

3






Alignment with

ERM

Priority Risks

DivisionTime Est.

(Hours)

Estimated

Start

Table 3 - Other Items

BIFAC Status Reporting Quarterly status update to BIFAC providing progress on Annual Audit Plan.

Internal Audit Manual To guide the Corporate Audit Team.RGI Manual To guide the RGI Audit Team.Internal Audit Charter It is a formal document that

defines internal audit's purpose, authority, responsibility and position within the Document

StandardizationTo guide all IAD team members and promote audit efficiencies.

Staffing, training, etc. Ongoing.

4

Page 1 of 3

AC Exchange Program Update Item 8 January 24, 2020 Building Investment, Finance and Audit Committee Report: TCHC:2020-13


From: Chief Operating Officer


PURPOSE:

The purpose of this report is to provide BIFAC and the Board of Directors with an update on the removal of window air conditioner (“AC”) units and the expansion of the AC Exchange Program. RECOMMENDATION:

It is recommended that this report be received and forwarded to the Board of Directors for information. UPDATE:

On December 2, 2019, TCHC announced that window AC units would no longer be permitted unless contained within a balcony. TCHC also announced the expansion of the AC Exchange Program, for the removal of window AC units in buildings 3 stories or higher and not contained within a balcony, and replace each unit with a new portable floor model.

Page 2 of 3

A cross divisional team was established with Operations, Legal, Public Affairs, Procurement and Facilities Management to plan and execute the removal of units in a phased approach.

Phase 1

Operations identified window AC units installed in buildings three stories or higher and not contained within a balcony to establish an initial assessment of units that required removal. This initial assessment identified 5,400 window AC units to be removed.

Work began on November 28, 2019 to remove the AC units identified in the initial assessment. A social enterprise who hires TCHC tenants was retained via Direct Award to remove the AC units, with assistance and support from site staff and the Capital Engagement and Conservation Program team. As the AC Exchange Program was rolled out, the initial number of units that required removal increased to 6,840. An additional vendor was retained to provide assistance to remove the increased number of AC units.

TCHC also procured replacement floor model units for delivery in March 2020. The Contract Award for the floor model units was approved by the Board of Directors on December 12, 2019.

All window AC units in buildings 3 stories or higher and not contained within a balcony have been removed with the exception of a small number of units (approximately 3%) that require further assistance from TCHC Tenancy Management staff to move forward with removal.

Phase 2

The replacement of units removed in Phase 1 will begin in late February, with the existing stock of warehoused portable AC units. Deployment of the remaining conditioners will continue in the spring, upon the March 2020 delivery. All 6,840 window AC units identified in Phase 1 are scheduled for replacement by June 2020.

Page 3 of 3

Simultaneously, TCHC will proceed with the AC Exchange Program and remove window AC units not captured during Phase 1. It is anticipated that with the expansion of the AC Exchange Program, TCHC will exchange over 14,000 window AC units in total.

SIGNATURE: “Sheila Penny”

Sheila Penny Chief Operating Officer STAFF CONTACTS: Allen Murray, Vice-President, Facilities Management (Acting) 416-981-6955 [email protected]

Page 1 of 2

2020 BIFAC Work Plan Item 9 January 24, 2020 Building Investment, Finance and Audit Committee Report: BIFAC:2020-14


From: General Counsel & Corporate Secretary


PURPOSE: The purpose of this report is to establish a 2020 Work Plan for BIFAC. RECOMMENDATION: It is recommended that BIFAC review and consider the draft 2020 Work Plan provided as Attachment 1 to this report. The draft 2019 BIFAC Work Plan includes the meeting dates approved by the Board at its meeting of December 12, 2019.

SIGNATURE:

“Darragh Meagher”

Darragh Meagher General Counsel & Corporate Secretary

Page 2 of 2

ATTACHMENT: 1. Draft 2020 BIFAC Work Plan

STAFF CONTACTS: Darragh Meagher, General Counsel & Corporate Secretary 416-981-4241 [email protected] Ceilidh Wilson, Assistant Corporate Secretary (Acting) 416-981-4348 [email protected]

Item 9 – 2020 BIFAC Work Plan BIFAC Public Meeting – January 24, 2020


Page 1 of 3 REVISED: January 13, 2020

Attachment 1: Draft 2020 BIFAC Work Plan

Q1 Q2

January 24, 2020 April 15, 2020

REGULAR ITEMS REGULAR ITEMS

Q4 2019 – HoMES Update Review of Board, President and CEO Expenses- Annual

Q4 2019 – IT Update Development Consolidated Report - Annual

Q4 2019 – Internal Audit Update and Annual Report

Stand Alone Properties Update - Annual

2020 Internal Audit Work Plan Annual Information Return Q4 2019 – PAC Awards and Revenue Contracts

2019 Annual Report and Letter to the Shareholder

Q4 2019 – IAC Update 2019 Consolidated Draft Unaudited Financial Statements

Q4 2019 – ERM Update 2020 BIFAC Work Plan SPECIAL ITEMS SPECIAL ITEMS

Tenants’ First Update† Tenants First Update† Update regarding additional

financial contribution arising from City decisions†

CreateTO presentation re: Development Transition

Leslie Nymark: Building Construction Budget update

Don Summerville: Market land transfer Budget Update

Annual status update re: contract management - contracted project status and project implementation schedule/budget compliance†

Parking Revenue Report

† Action Item




Q2 Q2

April 27, 2020 June 10, 2020


2019 Consolidated Draft Unaudited Financial Statements

Q1 2020 – HoMES Update

Q1 2020 – IT Update Q1 2020 – Internal Audit Update Q1 2020 – PAC Awards and

Revenue Contracts Q1 2020 – IAC Update Q1 2020 – ERM Update SPECIAL ITEMS SPECIAL ITEMS

Tenants First Update† Risk Tolerance† Lawrence Heights:

Phase 1B Increased Construction Cost

Phase 2 & 3 Preliminary Business Plan Update

Regent Park: Phase 2 Update & ABP Phases 4 and 5 Developer

Partner & Pre-Development Expenses




Q3 Q4

September 14, 2020 November 16, 2020


Q2 2020 – HoMES Update Q3 2020 – HoMES Update Q2 2020 – IT Update Q3 2020 – IT Update Q2 2020 – Internal Audit Update Q3 2020 – Internal Audit Update Q2 2020 – PAC Awards and Revenue Contracts

Q3 2020 – ERM Update

Q2 2020 – IAC Update Q3 2020 – IAC Update Q2 2020 – ERM Update Q3 2020 – ERM Update SPECIAL ITEMS SPECIAL ITEMS

Tenants First Update† Tenants First Update† Don Summerville Demolition of rental housing

Lawrence Heights: Phase 1F Implementation and Demolition

Approval of 2020 External Audit work plan

Approval of 2021 Operating and Capital Budgets

Documents

Toronto Community Housing Corporation BUILDING … BIFA… · provided a PowerPoint presentation and was available to answer questions from BIFAC members. Highlights of discussion: