Item - 2010.AU19.10

City Council on August 25, 26 and 27, 2010, adopted the following:

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

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

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

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

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

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

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

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

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

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

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

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

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