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Compliance Audit Committee · 2019-11-21 · 2019.EA7.4

The filed record

John Zilli and Johnny Zilli - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act

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The decision

2019-11-21 · Compliance Audit Committee · amended

As filed

The Compliance Audit Committee: Has decided not to commence a legal proceeding against John Zilli and Johnny Zilli. 1. The Compliance Audit Committee met on November 21, 2019 to hear Item EA7.4 - John Zilli and Johnny Zilli - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act. 2. Section 88.34(2) of the Municipal Elections Act,1996 requires the City Clerk to prepare a report identifying each contributor to a candidate for office on a council who appears to have contravened any of the contribution limits under Section 88.9.

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3. Section 88.9(1) of the Municipal Elections Act,1996 states that a contributor shall not make contributions exceeding a total of $1,200 to any one candidate in an election. 4. Appendix B to the report (October 31, 2019) from the City Clerk identified John Zilli and Johnny Zilli as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Angelo Carnevale. Specifically, Appendix B to the report (October 31, 2019) from the City Clerk identified two contributions, one of $1,200 and one of $200, from individuals with similar names - John Zilli and Johnny Zilli - and with the same address. Accordingly, it appeared that a contributor had made a contribution of $1,400 to the election campaign of Angelo Carnevale. 5. The contributor was not present, but provided a written submission which clarified that the individuals were different people. The candidate also appeared before the Compliance Audit Committee and spoke to the matter. 6. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor John Zilli and Johnny Zilli for a contravention of Section 88.9 of the Municipal Elections Act, 1996. There was no contribution over the contribution limit. The contribution of $1,200 attributed to "John Zilli" was made by John Zilli (father) and the contribution of $200 attributed to "Johnny Zilli" was made by John Tito Zilli (son).

On the agenda

As the city filed it

The City Clerk is sending an external auditor's report to the Compliance Audit Committee for consideration. The auditor completed its review of initial financial statements filed and identified John Zilli and Johnny Zilli as having a similar name at the same address and, if they are the same contributor, appear to have exceeded the contribution limits in the Municipal Elections Act, 1996 (Municipal Elections Act). Within 30 days of receiving this report, the Compliance Audit Committee is required to decide whether to: (1) commence legal proceedings against the contributor for an apparent contravention; or (2) not to commence legal proceedings against the contributor for an apparent contravention.

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The Committee must also provide brief written reasons for its decision. The Municipal Elections Act requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2018 municipal election and to prepare a separate report for each contributor who appears to have exceeded any of the contribution limits. The City Clerk retained an external auditor, BDO Canada LLP, through a competitive procurement process, to review all candidates and registered third party advertisers' financial statements and report on each apparent over-contribution.

Staff recommended

The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Appendix B to this report, and decide whether to commence a legal proceeding against the contributor for an apparent over-contribution.

    On the record

    The item as the City filed it

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