Item - 2012.EX20.21

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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