Item - 2019.EA4.1

The Compliance Audit Committee:

1.  Appointed auditor William Molson to conduct a compliance audit of candidate Faith Goldy's 2018 municipal election campaign finances for which the Compliance Audit Committee granted an application on April 29, 2019, and, at the discretion of the Compliance Audit Committee, any future applications for audit that the Committee may grant during the 2018-2022 term of office.

2.  Appointed the auditing firm MNP LLP to conduct a compliance audit of the 2018 municipal election campaign finances for candidate Jim Karygiannis, for which the Committee granted an application on July 2, 2019, and, at the discretion of the Committee, MNP LLP may also be used for any future applications for audit that the Compliance Audit Committee may grant during the 2018-2022 term of office.

3.  Authorized the appropriate City Officials to take the necessary action to give effect to the decision of the Compliance Audit Committee.

The Municipal Elections Act, 1996 requires the Compliance Audit Committee to appoint an auditor if it grants a compliance audit application. To date, the Committee has granted applications for an audit of the campaign finances of two candidates in the 2018 Municipal Election. To comply with statutory requirements, the Committee must now appoint an external auditor to conduct compliance audits of the campaign finances of these candidates and any other candidates and registered third party advertisers that it may grant during the 2018-2022 term of office.

The Committee authorized the City Clerk to manage the procurement process to hire an external auditor when it adopted its Purchasing Policy. Accordingly, during the months of June and July 2019, the City Clerk issued two competitive Request for Services tenders to auditing firms, which resulted in no proponent submissions for either tenders. Given the urgent requirement for the Committee to appoint an external Auditor, the City Clerk is in the process of procuring an auditor through a sole source contract.

The City Clerk will submit a supplementary report to the Committee to recommend one or more Auditors with whom the Committee should appoint.

This supplementary report provides updated information to the Compliance Audit Committee on the non-competitive procurement process to retain an external auditor to conduct a compliance audit of the election campaign finances of candidates that it may grant during the 2018-2022 term of office.

The City Clerk previously submitted a report to the Committee, entitled "Update on the Procurement Process for the Appointment of an External Auditor by the Compliance Audit Committee", dated July 11, 2019. Since that time, the City Clerk has researched and contacted potential auditors. Based on experience, availability and willingness of auditors, the City Clerk recommends that the Committee appoint: (1) William Molson; and (2) MNP LLP, to conduct a compliance audit of the election campaign finances of candidates for which it may grant an application during the 2018-2022 term of office.