Item - 2019.EA6.3

The Compliance Audit Committee:

Has decided not to commence legal proceedings against Quintin Johnstone.

1. The Compliance Audit Committee met on November 18, 2019 to hear Item EA6.3 - Quintin Johnstone - 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 Quintin Johnstone as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Norman Gardner. Specifically, Appendix B to the report (October 31, 2019) from the City Clerk identified Quintin Johnstone to have contributed $1,700 to the election campaign of Norman Gardner consisting of a $500 monetary contribution and a $1200 in-kind contribution.

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

6. For the reasons stated below, the Compliance Audit Committee has decided that there was no contravention of Section 88.9 of the Municipal Elections Act, 1996, as amended, in the total contributions made to the campaign of Norman Gardner.

There was not a contravention over the contribution limit because the individual made a monetary contribution of $500 and otherwise provided voluntary labour which in this fact situation is not a contribution in-kind.

The Committee considers that it is the candidate's responsibility to monitor both the campaign manager's activities and 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. Despite this, $1200 was recorded as an in-kind contribution for the voluntary labour.

Joe Filippelli, BDO Canada LLP gave a presentation on Quintin Johnstone - 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 EA6.3 - Quintin Johnstone - 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 Quintin Johnstone 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.