Item - 2019.EA6.2

The Compliance Audit Committee:

Has decided not to commence legal proceedings against Michael McClelland 

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.2 - Michael McClelland - 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 B to the report (October 31, 2019) from the City Clerk identified Michael McClelland as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Kristyn Wong-Tam. Specifically, Appendix B to the report (October 31, 2019) from the City Clerk identified Michael McClelland to have contributed $1,250 in total to the election campaign of Kristyn Wong-Tam. Two contributions were made, one for $750 and one for $500, each from a different address.

5. The contributor appeared and provided information to the Committee.

6. For the reasons stated below, the Compliance Audit Committee has decided not to commence a legal proceeding against contributor Michael McClelland for the contravention of Section 88.9 of the Municipal Elections Act, 1996, as amended.

There was a contravention of the contribution limit. The individual made two contributions, one for $750 and one for $500, one from his home address and one from his business address. These contributions totalled $1250, $50 more than the applicable limit but the over-contribution appears to have been in error. In addition, the contributor was remorseful and recognizes that an over-contribution was made.

Joe Filippelli, BDO Canada LLP gave a presentation on Michael McClelland - 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 EA6.2 - Michael McClelland - 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 two individuals named Michael McClelland as having the same name but different 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. 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.