Compliance Audit Committee
The full agenda, as filed
All 8 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
EA12.1amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Richard Peddie as a contributor who appears to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Richard Peddie (the "Contributor"). 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.1 - Richard Peddie - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000. 4. The report dated September 10, 2024, from the City Clerk identified Richard Peddie as a Contributor that appeared to have exceeded the $5,000 contribution limit to the election campaign of Josh Matlow, Chloe Brown, and Olivia Chow (the "Candidates"). The report (September 10, 2024) from the City Clerk identified Richard Peddie to have contributed $5,500.   5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated September 10, 2024, setting out the audit process and the findings with respect to Richard Peddie.   6. The Contributor, Richard Peddie did not appear but did provide a written submission, where the Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to human error. The Contributor was asked for a second contribution to the election campaign of candidate, Josh Matlow. The Contributor mistakenly believed a total of $3,900 had been contributed when asked for a second contribution.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Richard Peddie for the contravention of Section 88.9 of the Municipal Elections Act, 1996.   8. There was a contravention of the contribution limit because the individual made a contribution of $5,500, which exceeded the applicable limit of $5,000 due to human error.   9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629.   10. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against Richard Peddie for an apparent over-contribution.
EA12.2amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Paul Pellegrini at two separate addresses. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Paul Pellegrini (the "Contributor"). 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.2 - Paul Pellegrini - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000. 4. The report dated September 10, 2024, from the City Clerk identified Paul Pellegrini as a Contributor that appeared to have exceeded the $5,000 contribution limit to the election campaign of Ana Bailao, Brad Bradford, Mitzie Hunter, Mark Saunders, Anthony Perruzza, and Olivia Chow ("the Candidates"). The report (September 10, 2024) from the City Clerk identified Paul Pellegrini to have contributed $5,500.   5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated September 10, 2024, setting out the audit process and the findings with respect to Paul Pellegrini.   6. The Contributor, Paul Pellegrini, did not appear but did provide a written submission, where the Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to the Contributor's clerical error. The Contributor acknowledges that this overcontribution is an error and accepts responsibility for failing to comply with the legislation.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Paul Pellegrini for the contravention of Section 88.9 of the Municipal Elections Act, 1996.   8. There was a contravention of the contribution limit because the individual made a contribution of $5,500, which exceeded the applicable limit of $5,000 due to human error. The Contributor, from their submission, appears to be remorseful.   9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629.   10. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against Paul Pellegrini for an apparent over-contribution.
EA12.3amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Robert Sabato and Roberto Sabato as having a similar name at the same address. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Robert Sabato and Roberto Sabato. 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.3 - Robert Sabato and Roberto Sabato - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000.   4. The report dated September 10, 2024, from the City Clerk identified Robert Sabato and Roberto Sabato (the "Contributor(s)") as a contributor who has/have appeared to have exceeded the $5,000 contribution limit to the election campaigns of Ana Bailao, Anthony Perruzza, and Mark Saunders (the "Candidate(s)"). Specifically, the report (September 10, 2024) from the City Clerk identified two contributions of $2,500 and one contribution of $1,200, from individuals with similar names - Robert Sabato and Roberto Sabato - and with the same address. Accordingly, it appeared that a contributor had made a donation of $6,200 to the election campaign of the Candidates.   5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, setting out the audit process and the findings with respect to Robert Sabato and Roberto Sabato.   6. Neither the Contributor(s) nor the Candidate(s) attended, but the Contributor, Roberto Sabato, provided written communication that supported an inference that Roberto Sabato and Robert Sabato are two distinct individuals.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor(s) Robert Sabato and Roberto Sabato for the contravention of Section 88.9 of the Municipal Elections Act, 1996. 8. There was no contribution over the contribution limit and therefore no findings of a violation under the Municipal Elections Act, 1996. The contribution attributed to "Roberto Sabato" was made by Roberto Sabato (father) and the contribution attributed to "Robert Sabato" was made by Robert Sabato (son).
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against the contributor for an apparent over-contribution.
EA12.4amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified David Singer as a contributor who appears to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against David Singer (the "Contributor"). 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.4 - David Singer - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000. 4. The report dated September 10, 2024, from the City Clerk identified David Singer as a Contributor that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Brad Bradford, Josh Matlow, and Olivia Chow (the "Candidates"). The report (September 10, 2024) from the City Clerk identified David Singer to have contributed $5,850.   5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated September 10, 2024, setting out the audit process and the findings with respect to David Singer.   6. The Contributor, David Singer, appeared via the web portal, and an agent, Rodney Gill, provided a written submission. Another agent, from the same law firm, Matthew Stackhouse (the "Agent"), appeared for the Contributor and provided an oral submission to the Committee. The written submission and Agent explained that the alleged overage that caused the contravention of the contribution limit was due to human error. The Agent represented both, David Singer and his spouse, Jennifer Shnaider. The apparent overcontribution was a result of an administrative error, as $2,500 was contributed from a joint bank account of the Contributor and his spouse. The Agent provided a copy of a cheque dated September 26, 2023, showing the contribution made from the joint account, reflected on the Candidate's financial information on October 17, 2023.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor David Singer for the contravention of Section 88.9 of the Municipal Elections Act, 1996.   8. There was no contravention of the contribution limit because the Contributor did not make multiple contributions totalling $5,850, which would have exceeded the applicable limit of $5,000. Rather, there appears to have been a misattribution of contributions between the Contributor and his spouse.   9. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629.   10. The Committee has decided not to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against David Singer for an apparent over-contribution.
EA12.5amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Geoff Smith and Geoffrey Smith as having a similar name at the same address. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Geoff Smith and Geoffrey Smith. 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.5 - Geoff Smith and Geoffrey Smith - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000.   4. The report dated September 10, 2024, from the City Clerk identified Geoff Smith and Geoffrey Smith (the "Contributor(s)") as a contributor that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Brad Bradford, Mark Saunders, and Ana Bailao (the "Candidate(s)"). Specifically, the report (September 10, 2024) from the City Clerk identified one contribution of $2,500, one contribution of $1,500, and one contribution of $2,059.99 from individuals with similar names - Geoff Smith and Geoffrey Smith - and with the same address. Accordingly, it appeared that a contributor or contributors had made a donation of $6,059.99 to the election campaign of the Candidates.   5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, setting out the audit process and the findings with respect to Geoff Smith and Geoffrey Smith.   6. Neither the Contributor(s) nor the Candidate(s) attended. No written submissions were provided. The failure of the Contributor(s) to provide information to the Committee and the nature of the alleged breach raises concerns. The participation of the Contributor(s) or Candidate(s) in this proceeding would have been very helpful to the process and would have assisted in ensuring transparency and openness in understanding the circumstances of the apparent contravention. Indeed, the Contributor(s) could have provided answers to questions raised by the Committee.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor(s) Geoff Smith and Geoffrey Smith for the contravention of Section 88.9 of the Municipal Elections Act, 1996.   8. The Committee is of the view that there is a lack of information to support that the individuals - Geoff Smith and Geoffrey Smith - are the same person. Therefore, there is insufficient evidence to support that there was a contravention of the contribution limit of $5,000 per candidate. 9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629. 10. In accordance with s. 88.22(1)(r)(ii) of the Municipal Elections Act, 1996, it is the candidate's obligation to ensure that each contributor is informed of the total maximum of $5,000. In the Committee's view, the responsibility rests with the candidate(s) to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996. 11. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor(s).
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against the contributor for an apparent over-contribution.
EA12.6amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Jeff Thomas, Jeffery Thomas and Jeffery D Thomas as having a similar name at the same address. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas. 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.6 - Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000.   4. The report dated September 10, 2024, from the City Clerk identified Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas (the "Contributor(s)") as a contributor or contributors that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Ana Bailao, Josh Matlow, Brad Bradford, and Mark Saunders (the "Candidate(s)"). Specifically, the report (September 10, 2024) from the City Clerk identified multiple contributions of $1,000, and one contribution of $500, from an individual and/or individuals with similar names - Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas - and with the same address. Accordingly, it appeared that a contributor had made a donation of $5,500 to the election campaign of the Candidates.   5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, setting out the audit process and the findings with respect to Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas.   6. Neither the Contributor(s) nor the Candidate(s) attended, and no written submissions were provided. An agent (the "Agent"), Tom Giancos, appeared for the Contributor and provided an oral submission to the Committee. The Agent stated that Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas are the same individual. The Agent explained that the alleged overage that caused the contravention of the contribution limit was due to being unaware that the post-election contribution, which gave rise to the overcontribution, would be included in the contribution limit. 7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against Contributor(s) Jeff Thomas, Jeffery Thomas, and Jeffery D Thomas for the contravention of Section 88.9 of the Municipal Elections Act, 1996. 8. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629. 9. In accordance with s. 88.22(1)(r)(ii) of the Municipal Elections Act, 1996, it is a candidate's obligation to ensure that each contributor is informed of the total maximum of $5,000. In the Committee's view, the responsibility rests with a candidate(s) to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996. It is especially important for candidates to ensure their communication with potential contributors in the post voting day period clearly indicates that donations made in this period count for the purposes of contribution limits under the Act.   10. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against the contributor for an apparent over-contribution.
EA12.7amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Gavin Tighe as a contributor who appears to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Gavin Tighe (the "Contributor"). 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.7 - Gavin Tighe - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(3) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to a candidate for the office of Mayor in the City of Toronto is $2,500. 4. The report dated September 10, 2024, from the City Clerk identified Gavin Tighe as a Contributor that appeared to have exceeded the $2,500 contribution limit to the election campaign of Mark Saunders (the "Candidate"). The report (September 10, 2024) from the City Clerk identified Gavin Tighe to have contributed $2,750.   5. The auditor, BDO Canada LLP, explained their report, attached as Attachment 1 to the report from the City Clerk, dated September 10, 2024, setting out the audit process and the findings with respect to Gavin Tighe.   6. The Contributor, Gavin Tighe did not appear but provided a written submission, where the Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to human error. The written submission explained that the overcontribution was a result of an administrative error and was inadvertent. The Contributor also stated that the Candidate did not advise him of the overcontribution.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Gavin Tighe for the contravention of Section 88.9 of the Municipal Elections Act, 1996.   8. There was a contravention of the contribution limit because the individual made a contribution of $2,750, which exceeded the applicable limit of $2,500 due to human error and inadvertence.   9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629. 10. In accordance with s. 88.22(2) of the Municipal Elections Act, 1996, it is a candidate's obligation to ensure that each contributor is informed of the total maximum of $2,500. In the Committee's view, the responsibility rests with a candidate(s) to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996.   11. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against Gavin Tighe for an apparent over-contribution.
EA12.8amended
The Municipal Elections Act, 1996 requires the City Clerk to review all contributions reported in financial statements submitted by candidates and registered third party advertisers in the 2023 by-election for mayor 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 to report on each apparent over-contribution. This report transmits a report from the external auditor to the Compliance Audit Committee for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2023 by-election for mayor and identified Giuseppe Vaccaro and Joe Vaccaro as having a similar name at the same address. If they are the same contributor, they appear to have exceeded the contribution limits in the Municipal Elections Act, 1996. 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. The Committee must also provide brief written reasons for its decision.
The Compliance Audit Committee:   Has decided not to commence legal proceedings against Giuseppe Vaccaro and Joe Vaccaro. 1. The Compliance Audit Committee (the "Committee") met on October 7, 2024, to hear Item EA12.8 - Giuseppe Vaccaro and Joe Vaccaro - A contributor in the 2023 By-Election for Mayor who appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.   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.   3. Section 88.9(4) of the Municipal Elections Act, 1996 states that the maximum total contribution that a contributor may make to multiple candidates for office on the same council or local board is $5,000.   4. The report dated September 10, 2024, from the City Clerk identified Giuseppe Vaccaro and Joe Vaccaro (the "Contributor(s)") as a contributor that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Brad Bradford, Ana Bailao, and Mark Saunders (the "Candidate(s)"). Specifically, the report (September 10, 2024) from the City Clerk identified one contribution of $500, and two contributions of $2,500, from individuals with similar names - Giuseppe Vaccaro and Joe Vaccaro - and with the same address. Accordingly, it appeared that a contributor had made a donation of $5,500 to the election campaign of the Candidate(s).   5. The auditor, BDO Canada LLP, explained in their report, attached as Attachment 1 to the report (September 10, 2024) from the City Clerk, setting out the audit process and the findings with respect to Giuseppe Vaccaro and Joe Vaccaro.   6. The Contributor(s) did not appear but provided a written submission, which confirmed that Giuseppe Vaccaro and Joe Vaccaro are the same individual and is therefore one contributor (the "Contributor"). The Contributor explained that the alleged overage that caused the contravention of the contribution limit was due to human error. The Contributor acknowledges that this overcontribution is an error and accepts responsibility for failing to comply with the legislation.   7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against the Contributor for the contravention of Section 88.9 of the Municipal Elections Act, 1996. 8. There was a contravention of the contribution limit because the individual made a contribution of $5,500, which exceeded the applicable limit of $5,000 due to human error. The Contributor, from their submission, appears to be remorseful. 9. The Committee is not bound to commence proceedings in the face of a breach or contravention of the Municipal Elections Act, 1996. The Committee is entitled to consider all of the circumstances to determine whether legal proceedings should be commenced. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629. 10. Consequently, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.
Staff recommendation as filed
The City Clerk recommends that: 1. The Compliance Audit Committee consider the auditor's report from BDO Canada LLP, attached as Attachment 1 to this report, and determine whether to commence a legal proceeding against the contributor for an apparent over-contribution.