TTC Audit and Risk Management Committee (Special) - July 15, 2024

Minutes

Toronto Transit Commission Audit & Risk Management Committee

Meeting No.: 34

Meeting Date: Monday, July 15, 2024

A meeting of the TTC Audit & Risk Management Committee was held in the 7th Floor Executive Board Room, 1900 Yonge Street and by video conference on Monday, July 15, 2024 commencing at 1:05 p.m. The meeting recessed at 2:31 p.m. and reconvened at 2:43 p.m.

Present at Public Session

Commissioners: D. Saxe (Chair), F. Jagdeo, L. Kim, and J. Osborne

Staff: B. Macgregor (Deputy Chief Executive Officer), K. Campbell (Chief Diversity and Culture Officer), J. Colle (Chief Strategy and Customer Officer), J. La Vita (Chief Financial Officer), N. Poole-Moffatt (Chief of Corporate Affairs), W. Reuter (Head – Research & Analytics), J. Taylor (Special Advisor, CEO Office), V. Chandrakanthan (Head - Audit, Risk and Compliance), A. Gibson (Executive Director - Fare Technology and System Stewardship (Acting)), C. Leach (Senior Director - Audit, Risk and Compliance), V. Tang (Manager, Audit, Risk and Compliance), D. Metcalfe (Head, Business Management and Performance) S. Green (Senior Communications Specialist), C. Finnerty (Director - Commission Services), L. Soto Maya (Coordinator, Secretariat Services) and J. Ishak (Administrator - Secretariat Services) were present.

C. Alexander (Mayor’s Office), D. Jain (Commissioner Myers’s Office), and J. Darmody (Live Media) were also present.

D. Saxe was in the Chair.

Land Acknowledgement

D. Saxe acknowledged that the Audit & Risk Management Committee was meeting on the traditional territory of many nations including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the Wendat peoples and is now home to many diverse First Nations, Inuit and Métis peoples. D. Saxe also acknowledged that Toronto is covered by Treaty 13 signed with the Mississaugas of the Credit.

Declaration of Interest - Municipal Conflict of Interest Act

Nil

Public Presentations

Item No. 1. Fare Compliance Action Plan
Alan Yule
Colby Badhwar
Shelagh Pizey-Allen
Vikas Nath

The Committee received the deputations for information (See Item No. 1 for minute)

Presentations/Reports/Other Business

1. Fare Compliance Action Plan

J. La Vita, Chief Financial Officer, provided introductory remarks on the item. W. Reuter, Head – Research & Analytics, provided a presentation on the item.

Chair Saxe moved the following motion:

Direct TTC staff report back to the Audit & Risk Management Committee with a status update on the Fare Compliance Strategy and key directions by Q1 2025, and the broader Fare Compliance Strategy and key directions by Q4 2025.

The motion by Chair Saxe carried.

Chair Saxe moved the following motion:

That TTC staff report back to the September TTC Board meeting with an action plan to, by the end of 2024:

a. keep crash gates closed, except when they are opened by a Collector for a patron who has paid their fare, which will save $14.2 million/year and requires those who want to pay a reduced/concession fare to get a PRESTO card, which can be done online, and will allow them the two hour transfers;

b. phase out cash fares at stations and legacy fare media on all modes;

c. strategies to count cash fares on buses; and

d. phase out acceptance of undated child cards, which the audit showed are almost always used fraudulently.

The motion by Chair Saxe carried.

Chair Saxe moved adoption of the item, as amended as follows:

It is recommended that the Audit & Risk Management Committee:

1. Endorse the Fare Compliance Action Plan as outlined in this report, comprising of the following areas of focus: Education, Environment. Enforcement and Equity.

2. Direct TTC staff report back to the Audit & Risk Management Committee with a status update on the Fare Compliance Strategy and key directions by Q1 2025, and the broader Fare Compliance Strategy and key directions by Q4 2025.

3. Receive for information, the TTC staff report on the status of the recommendations from the 2019 Auditor General’s Phase One Fare Evasion Report, as outlined in Attachment 2, with the expectation of receiving further progress semi-annually.

4. Forward this report to the TTC Board for information.

5. TTC staff report back to the September TTC Board meeting with an action plan to, by the end of 2024:

a. keep crash gates closed, except when they are opened by a Collector for a patron who has paid their fare, which will save $14.2 million/year and requires those who want to pay a reduced/concession fare to get a PRESTO card, which can be done online, and will allow them the two hour transfers;

b. phase out cash fares at stations and legacy fare media on all modes;

c. strategies to count cash fares on buses; and

d. phase out acceptance of undated child cards, which the audit showed are almost always used fraudulently.

The motion by Chair Saxe carried.

Amended

On a motion by Commissioner Jagdeo, the meeting adjourned at 3:38 p.m.