Item - 2019.EA6.1

The Compliance Audit Committee:

Has decided not to commence legal proceedings against Judy Mathew.  

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.1: Judy Mathew - 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.

 
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 A to the report (October 31, 2019) from the City Clerk identified Judy Mathew as a contributor that appeared to have exceeded the $1,200 contribution limit. Specifically, the Appendix A to the report (October 31, 2019) from the City Clerk identified Judy Mathew to have contributed $1,240 to the election campaign of Reddy Muttukuru.

 
5. The auditor, BDO Canada LLP, explained their report, attached as Appendix A to the report (October 31, 2019) from the City Clerk, setting out the audit process and the findings with respect to Judy Mathew.

 
6. Neither the contributor nor the candidate were present. Written submissions from both the contributor and the candidate were received and considered by the Compliance Audit Committee.
 

7. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Judy Mathew for the contravention of Section 88.9 of the Municipal Elections Act, 1996.

 
There was a contravention of the contribution limit because the individual made a contribution of $1240 which exceeded the applicable limit of $1200 by a minimal amount, and appears to have been made in error. The contributor, from their written submission, appears to be remorseful.

In the Committee's view, the responsibility rests with the candidate to monitor the contribution limits. The candidate was provided with written material by the Clerk outlining the contribution limits. Additionally, the Clerk offered multiple training sessions to candidates. 

Joe Filippelli, BDO Canada LLP gave a presentation on Judy Mathew - A Contributor who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996.

The Compliance Audit Committee recessed its public session to meet in closed session to deliberate in private on Item EA6.1 - Judy Mathew - A Contributor in the 2018 Municipal Election who Appears to have Contravened Contribution Limits under Section 88.9 of the Municipal Elections Act and to receive advice that is subject to solicitor-client privilege.

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 Judy Mathew as a contributor who appears 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. 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.