The CEO of Toronto's public housing agency said she was outraged by an auditor's report revealing thousands of dollars in misspent public money.

Keiko Nakamura, the CEO of Toronto Community Housing, said on Monday that a handful of senior staff members were responsible for improperly spending on everything from a boat cruise to meetings held at local spas.

"I am appalled and outraged that something like this could happen at Toronto Community Housing," Nakamura told reporters on Monday.

"It angers me that the poor judgment and unacceptable actions of a few individuals have impacted the reputation of this entire company. They have embarrassed our board. We have let down our tenants, the mayor and council and the people of Toronto."

Nakamura said some of the staff had to be disciplined or fired and the money is being recovered. She would not provide details on those who had been removed, but said a new five-person executive team has been named.

An auditor general's review released on Monday outlined how tens of thousands of dollars were spent by staff on frills, perks and trips.

Among the notable charges was nearly $2,000 spent to meet at a local spa, $6,000 used to fund a planning session at a Muskoka resort and another $1,000 spent at Holt Renfrew to buy chocolates for staff members.

Another $5,000 was spent at a downtown restaurant without any mention made as to the reason for the gathering, or who was there.

Also included was $40,000 spent on a Christmas staff party in 2009. The report says the auditor was told some expenses were "necessary and contributed to team building."

There were also about 8,500 cheques issued without any record of what they were spent on.

The audit made a number of recommendations, including reviewing their expense policy, recovering funds that were not used for business purposes and determine how to handle employees who knowingly abused purchasing cards.

Directors at the housing corporation said they were taking steps to ensure such rampant misspending was not possible in the future. For now, all employee expenses must be approved by the director.

Toronto Mayor Rob Ford cried foul on Monday, and promised the party was going to end.

"Today's report shows thousands of dollars that have been squandered. This money could go to help people that need it the most," Ford to reporters. "I'm asking for all the citizens that sat on the board to resign immediately."