Item - 2024.EA6.7

The Compliance Audit Committee:

Has decided not to commence a legal proceeding against Swatiben Patel.

1. The Compliance Audit Committee met on February 28, 2024, to hear Item EA6.7 – Swatiben Patel - A Contributor in the 2022 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 the maximum total contribution that a contributor may make to a candidate for the office of Councillor in the City of Toronto is $1,200.

4. The report dated February 13, 2024, from the City Clerk identified Swatiben Patel as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Subhash Chand. The report from the City Clerk identified Swatiben Patel to have contributed $1,600.

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 Swatiben Patel.

6. The candidate attended the meeting via web portal and provided written information to the Committee. The Candidate explained there was an error on his part in recording the contributions received. It was recorded that Swatiben Patel contributed twice in the amount of $800 however, the Candidate’s statement is that one of these amounts should be attributed to Archana Thakur.

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

8. There was no apparent contravention of the contribution limit. Swatiben Patel contributed a one-time amount of $800. The other contribution that caused the alleged over contribution, based on the Candidate’s evidence, attributed to Swatiben Patel was made by Archana Thakur. This appears to be a data entry error on the part of the Candidate.

9. The Committee reminds the Candidate of their responsibility to correctly record contributions.

Peter Hearn, BDO Canada LLP gave a presentation on Swatiben Patel - 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 EA6.7 - Swatiben Patel - 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 Swatiben Patel 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.