Item - 2024.EA7.7

The Compliance Audit Committee:

Has decided not to commence a legal proceeding against Paul Quenneville.

1. The Compliance Audit Committee met on March 5, 2024, to hear Item EA7.7 – Paul Quenneville - 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(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 Paul Quenneville as a contributor that appeared to have exceeded the $1,200 contribution limit to the election campaign of Arber Puci. The report from the City Clerk identified Paul Quenneville to have contributed $2,000.

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 Paul Quenneville.

6. The Candidate appeared via web portal and provided information to the Committee as well as provided a written explanation. The Candidate explained that he had told the Contributor that the contribution limit was $2,500 in error. The Contributor did not appear, nor did he submit any written statements.

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

8. There was a contravention of the contribution limit because the individual made a contribution of $2,000 which exceeded the applicable limit of $1,200.

9. After considering the entirety of the circumstances, the Committee has discretion to determine whether to commence a proceeding even in circumstances where there are reasonable grounds that a breach has occurred. This has been recognized by the courts in Lancaster v. Compliance Audit Committee et al., 2012 ONSC 5629. In that case, after consideration of the evidence provided, the Committee concluded that there were breaches of the Act but exercised discretion not to proceed.

10. In the Committee's view, the responsibility rests with the Candidate to fully understand their legal obligations with respect to the receipt of contributions and contribution limits. When a candidate chooses to seek office, they accept that they must understand and comply with the rules including campaign finance rules. A candidate should seek professional or legal advice in order to ensure that they meet their obligations in the Municipal Elections Act, 1996. The Candidate and their campaign staff should be aware of and comply with these rules.

11. 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. The Candidate was provided with the 2022 Candidates’ Guide - Ontario Municipal Council and School Board Elections. The Guide states “You are required to inform every contributor of the contribution limits. An easy way to make sure that this is done is to include the contribution limits on the receipt that you provide for each contribution”. Additionally, the Clerk offered multiple training sessions to candidates.

12. Despite the above, the Committee has determined it is not in the public interest to commence a proceeding against the Contributor.

Katrina Amodeo, BDO Canada LLP gave a presentation on Paul Quenneville - 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 EA7.7 - Paul Quenneville - 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 Paul Quenneville 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.