Item - 2024.EA6.6

The Compliance Audit Committee:

Has decided not to commence a legal proceeding against Sean Brown.

1. The Compliance Audit Committee met on February 28, 2024, to hear Item EA6.6 – Sean Brown - A Contributor in the 2022 Municipal Election 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 the office of Councillor in the City of Toronto is $5,000.

4. The report dated February 13, 2024, from the City Clerk identified Sean Brown as a contributor that appeared to have exceeded the $5,000 contribution limit to the election campaigns of Siri Agrell, Robin Buxton Potts, Mike Colle, Gary Crawford, Jennifer McKelvie, and David Ricci. The report (February 13, 2024) from the City Clerk identified Sean Brown to have contributed $5,500.  

5. The auditor, BDO Canada LLP, explained their February 12, 2024 report, attached as Attachment 1 to the report (February 13, 2024) from the City Clerk, setting out the audit process and the findings with respect to Sean Brown.

6. Neither the contributor nor the Candidates attended. No written submissions were provided. The failure of the Contributor to provide information to the Committee and the nature of the alleged breaches raises concerns. The participation of the Contributor or Candidates 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 could have provided answers to questions raised by the Committee, and which remain unanswered.

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

8. There was an apparent contravention of the contribution limit because the Contributor made a contribution of $5,500 which exceeded the applicable limit of $5,000. There is no additional information before the Committee to assist in coming to a decision. In balancing the public interest, the Committee has decided not to commence a legal proceeding against the Contributor.

Katrina Amodeo, BDO Canada LLP gave a presentation on Sean Brown - A contributor in the 2022 Municipal Election 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 EA6.6 - Sean Brown - A contributor in the 2022 Municipal Election who appears to have contravened Contribution Limits under Section 88.9 of the Municipal Elections Act, 1996 and to receive advice that is subject to solicitor-client privilege.

This report transmits the external auditor's report for consideration. The external auditor completed its review of initial and supplementary financial statements filed for the 2022 municipal election and identified Sean Brown 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 for an apparent contravention. The Committee must also provide brief written reasons for its decision.

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 2022 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 to report on each apparent over-contribution.