Report: Audit Committee - September 17, 2025

REPORT NUMBER 165 OF THE AUDIT COMMITTEE

WEDNESDAY, SEPTEMBER 17, 2025

CLOSED SESSION

1. Chair’s Remarks
   
   Mr. Paul Huyer called the meeting to order in his capacity as Chair and introduced Mr. Samuel Elfassy as Vice-Chair. He welcomed members to the first Audit Committee meeting of the 2025-26 governance year.

2. Reports of the Administrative Assessors

The Committee moved in camera. 

Ms Kristin Taylor, University Counsel and Chief Legal Officer, reported on an ongoing matter.

The Committee returned to closed session.

There were no other updates from the administrative assessors.

3. Insurance & Risk Annual Report 2024-25
   
   Mr. John Kerr, Director, Risk Management & Insurance, reported on the Risk Management and Insurance Annual Report, 2024-2025
   
   Mr. Kerr provided an overview of the University’s insurance program, which included details on coverages, costs, claims activity, insurance industry trends, and the financial performance of the Canadian Universities Reciprocal Insurance Exchange (CURIE). Now in its third year of renewed membership with CURIE, the University continues to receive benefits such as stable program structures, sector-specific coverage, and enhanced risk management services.
   
   In the past year, CURIE made two surplus distributions to its subscribers, one of $6 million in March 2024 and another of $7.5 million in February 2025. The University of Toronto’s share of the most recent distribution was $67,138.
   
   Coverage improvements for 2025 included new equipment breakdown insurance, the removal of COVID-related exclusions, and an increase of the abuse sublimit from $15 million to $20 million. CURIE’s financial performance remained strong in 2024 despite record Canadian catastrophe losses in the broader market. The University’s own five-year average loss ratio was 29%, which is well below the 40% threshold that typically attracts premium increases from insurers.
   
   Discussion
   
   Following the presentation, the Committee’s discussion focused on property loss ratios and the adequacy of the University’s cyber insurance coverage.
   
   It was noted that a spike in the property loss ratio is anticipated for the following year, with significant variations occurring within the coverage lines provided by CURIE.
   
   A member inquired if the University’s current $2 million cyber insurance limit was sufficient, as an option for an additional $10 million in excess coverage had been declined. In response, it was explained that the primary value of the current policy is to satisfy federal funding obligations. With robust internal risk mitigation strategies already in place, there is little perceived value in purchasing additional coverage at this time, though the decision can be revisited.
   
   Another member asked about the scale of legal claims for data breaches in Canada. It was commented that liabilities are often absorbed by affected individuals, with insurance payouts typically covering administrative costs rather than significant damages. Mr. Kerr undertook to query CURIE for more information on recent claims trends and advised that the process to evaluate excess coverage in the future has been initiated.

CONSENT AGENDA

4. Report of the Previous Meeting – Report Number 164 (June 16, 2025)
   
   The report of the previous meeting was approved.  
5. Business Arising from the Report of the Previous Meeting
   
   There was no business arising from the report of the previous meeting. 
6. Date of the Next Meeting: November 19, 2025, 4:00 p.m. – 6:00 p.m.
   
   The Committee was reminded that its next meeting would be held on November 19, 2025. 

END OF CONSENT AGENDA

7. Other Business
   
   There was no other business. 

The Committee moved In Camera.

8. Risk Dashboards
   
   The Committee reviewed the updated Risk Dashboards, which reflect the most current data available for the University’s identified high, major, and moderate risks.
   
   The Chair highlighted recent initiatives in how risk information is presented to the Committee, aiming to provide both a comprehensive overview and the opportunity for a detailed analysis of key risks. This approach includes the annual foundational Risk Report, regular dashboards for the top three risks, and a rotating deep dive into a priority risk at each meeting.
9. Risk Presentation
   
   The Chair welcomed Dwayne Benjamin, Vice-Provost, Strategic Enrolment Management; Jeff Lennon, Assistant Vice-President, Planning & Budget; and John Trentadue, Director, University Relations to the meeting.
   
   The Committee received a presentation on international enrolment trends and related risks. The update outlined the importance of international tuition to the University’s financial sustainability and the academic benefits of a diverse student body.
   
   The presentation highlighted external pressures, including recent immigration policy changes, geopolitical tensions, and shifting global demand. Forecasts indicate a modest decline in undergraduate international intake, with mixed results across graduate programs. While the financial impact for 2025-26 is manageable within the overall budget, longer-term risks require ongoing monitoring and adjustment of enrolment targets.
   
   Mitigation strategies emphasized diversification of student recruitment, scholarship support, and active advocacy with government. The Committee also noted potential implications of forthcoming provincial governance and funding reviews.

10. Internal Auditor: Private Meeting
    
    Members of the administration absented themselves and the Committee met privately with Alex Matos, Executive Director, Internal Audit.

11. Committee Members Alone
    
    Committee members discussed topics of interest.

The Committee returned to Closed Session. 

The meeting adjourned at 6:01 p.m.

September 29, 2025