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HomeMy WebLinkAboutCLK 03-14 call 00 Report to ' ' Executive Committee PICKERING • Report Number: CLK 03-14 Date: April 14, 2014 From: Paul Bigioni Director, Corporate Services & City Solicitor Subject: Establishment of a Compliance Audit Committee under the Municipal Elections Act, 1996, as amended - File: A-2000 Recommendation: 1. That a Compliance Audit Committee be established in accordance with the provisions of the Municipal Elections Act, 1996, as amended; 2. That the Compliance Audit Committee be delegated full authority to exercise all powers and functions related to compliance audit applications; 3. That the Compliance Audit Committee be comprised of three members with credentials and expertise suitable to consider matters related to the election campaign finance provision of the Municipal Elections Act, 1996; 4. That the terms of reference for the Compliance Audit Committee including the remuneration for Committee members be adopted; 5. That the City Clerk recruit and recommend three qualified individuals for appointment to the.Committee; 6. That the draft by-law attached to Report CLK 03-14 be enacted; and 7. That the appropriate officials of the City of Pickering be given the authority to give effect thereto. Executive Summary: An elector who is entitled to vote in an election and believes on reasonable grounds that a candidate has contravened a provision of the Municipal Elections Act, 1996 (MEA) relating to election campaign finances may apply for a compliance audit of the candidate's election campaign finances. In this regard, the MEA requires that all municipal councils and local boards must appoint a Compliance Audit Committee before October 1, 2014, to address applications requesting a review of a candidate's campaign finances. The City Clerk.is responsible for the recruitment of the Committee and also responsible for the establishment of administrative practices and procedures for the Committee and 95 Report CLK 03-14 April 14, 2014 Subject: 2014 Municipal Election — Compliance Audit Committee Page 2 shall carry out any other duties required under the MEA to implement the Committee's decisions. The Municipality is responsible for paying all costs in relation to the Committee's operations and activities. Financial Implications: Factors involved. in determining Compliance Audit Committee costs include the number of compliance audit applications that might be received, the number of meetings that are required to be held and the complexity of the audits that may need to be conducted. The Municipality is responsible for any costs resulting from the review of applications p Y p Y 9 pp submitted to the Municipal Election Compliance Audit Committee. These costs include: - Costs related to the Committee's operations and activities - Auditors' costs to perform an audit if required - Legal costs related to an appeal to the Ontario Court of Justice with respect to a decision of the Committee - Legal costs to undertake legal action against the candidate for violations of the election finance provisions of the MEA - Costs related to the recovery of auditor costs where the auditors report indicates that there was no apparent contravention and the Committee finds that there were no reasonable grounds for the application. Suggested costs per Compliance Audit Committee member, within the terms of . reference for Council approval are: - $250.00 retainer fee - $200.00 per meeting fee Staff are recommending that the retainer fee for three members be taken from the 2014 Election budget. If any requests for Compliance Audits for the 2014 election are received, they would occur in 2015 and the appropriate budget amount would be reviewed and included in the 2015 Budget. Discussion: The MEA now requires that every municipality appoint a Compliance Audit Committee prior to October 1, 2014. The MEA enables a qualified elector who believes on reasonable grounds that a candidate has contravened the election campaign finance provisions of the MEA to apply to the Clerk in writing requesting a compliance audit of the candidate's election campaign finances. The following is a brief overview of the compliance audit application and review process: - an application must be made within 90 days of a candidates' financial statement filing deadline, it must be made in writing and it must"set out the reasons for the elector's belief; - within 30 days of receiving an application, it must be decided whether to grant or reject the application; 9 6 CORP0227-07/01 revised Report CLK 03-14 April 14, 2014 Subject: 2014 Municipal Election — Compliance Audit Committee Page 3 - within 15 days after the decision is made, it may be appealed to the Ontario Court of Justice and the Court may make any decision that the local authority could have made; - if the request is granted, an auditor licensed under the Public Accounting Act, 2004, shall be appointed to conduct the compliance audit. The auditor is granted broad powers for the purpose of conducting the audit and the auditor's costs are paid by the municipality; - the auditor shall conduct the audit and prepare a report which outlines apparent contraventions, if any; - the auditor's report shall be considered within 30 days and legal proceedings to address any apparent contraventions may be commenced against the candidate; and - if the auditor's report indicates that there have been no apparent contraventions and it is determined that there are no reasonable grounds for the application, the auditor's costs may be recovered from the applicant. Committee Structure The MEA provides that the Compliance Audit Committee must consist of a minimum of three to a maximum of seven members. Staff are recommending a three member Committee. The Committee cannot include Council Members or City Staff and must be established prior to October 1, 2014. The recruitment process, selection criteria, terms of reference and compliance audit processes are outlined below. Recruitment of Compliance Audit Committee Members Compliance Audit Committee members must possess an in-depth knowledge of the campaign financing rules of the MEA. If not, they will not be in a position to reach an independent decision on the merits of the application. As.the Committee will operate as a quasi-judicial Committee, prior experience on a Committee, task force or tribunal would also be an asset from a meeting management perspective. To ensure a fair, open and transparent process, staff recommend that the recruitment process for the City of Pickering include an advertisement in the local newspaper and on the municipal website detailing the selection criteria. The following selection criteria are recommended: - the individual's knowledge of the campaign financing rules of the MEA; - proven analytical and decision making skills; - experience working on a committee, task force, disciplinary committee, or a similar body; - availability and willingness to attending meetings; and - excellent oral and written communication skills. To avoid a conflict of interest, care must be taken that any auditors or accountants appointed to the Compliance Audit Committee do not audit or prepare the financial statements of any candidate running for office on City Council: Accordingly, any auditor CORP0227-07/01 revised 97 Report CLK 03-14 April 14, 2014 Subject: 2014 Municipal Election — Compliance Audit Committee Page 4 or accountant appointed to the Committee will have to agree in writing to not'undertake the audits or preparation of the financial statements of any candidates seeking election on City of Pickering Council. It is recommended, at the close of the application period, that all applications meeting the minimum qualifications be forwarded to Council for consideration, selection and appointment. Terms of Reference The mandate for the Compliance Audit Committee is outlined in section 81 of the MEA. The term of the Committee is the same as the term of office of Council (2014-2018). The City Clerk will act as the main contact between the Compliance Audit Committee and Council. Staff administration support to the Committee would be supplied by the City Clerk. A detailed Terms of Reference for the Compliance Audit Committee is included as Attachment 2 to this report. Attachments: 1. Draft By-law 2. Terms of Reference Prepared By: Approve,d/Endorsed By: Debbie Shields Paul Bigio City Clerk Director, Co et . - Services & City Solicitor PB:ds Recommended for the consideration of Pickering City Council /,/ fiat. 3 Zo14 Tony Prevedel, P.Eng. Chief Administrative Officer 98 CORP0227-07/01 revised ATrAcHKENT,r� J_TO REPO.T# The Corporation of the City of Pickering CA— C�3�� By-law No. /14 Being a by-law to establish a Compliance Audit Committee for each Term of Council. Whereas section 81 of the Municipal Elections Act, 1996, as amended, requires the Council to establish a Compliance Audit Committee, before October 1 of an election year for the purposes of section 81 of the Act; and Whereas the City of Pickering is committed to ensuring a consistent, open and transparent process for receiving and processing compliance audit applications. Now therefore the Council of The Corporation of the City of Pickering hereby enacts as follows: 1. A Compliance Audit Committee consisting of three (3) members with full delegation of the permitted authority be established under the provisions of the Municipal Elections Act, 1996, as amended. 2. That the "Terms of Reference" attached as Schedule A and forming part of this by-law, shall guide the structure and responsibilities of the Compliance Audit Committee. 3. That the Compliance Audit Committee's authority shall extend only to applications made with respect to candidate campaign finances related to the current Municipal Election. By-law passed this day of , 2014. • David Ryan, Mayor Debbie Shields, City Clerk • 99 City of Pickering Election ATrACwttiaEAT 1'C REPORT* Compliance Audit Committee C.Lj< OS_I Lt- Terms of Reference Name: The name of the Committee is the "City of Pickering Election Compliance Audit Committee" (the Committee). Mandate: The powers and functions of the Committee are set out in Section 81 of the Municipal Elections Act, 1996. - Within 30 days of receipt of an application requesting a compliance audit, the Committee shall consider the compliance audit application and decide whether it should be granted or rejected; - If the application is granted, the Committee shall appoint an auditor licensed under the Public Accounting Act, 2004 to conduct a compliance audit; - The Committee will review the auditor's report within 10 days of receipt and decide whether legal proceedings should be commenced; and - If the auditor's report indicates that there were no apparent contraventions and if there appears there were no reasonable grounds for the application, the Committee shall advise Council accordingly. Reporting and Functional Relationships: The City Clerk will act as the main contact between the Committee and Council and will report on Committee activity as required to the appropriate individuals and Council. Committee Membership: The Committee shall consist of three members appointed by the Council of the City of Pickering. The City Clerk will recruit and recommend three qualified individuals for appointment to the Committee. The following persons are not eligible for appointment to the Committee: - Employees or officers of the City of Pickering - Members of Council - Any candidates running in the election for which the Committee is established All Committee Members must agree in writing that they will not work/volunteer for any candidate, provide advice to., prepare or audit the election financial statements of any candidate for office on the City of Pickering Council or become a candidate in the current Municipal Election and any by-elections during Council's term, if they do, their appointment will be terminated. 1 100 All Committee Members must have the ability to understand and apply the election campaign finance provisions of the Act and should be considered impartial with respect to their ability to fulfill their responsibilities. Preference shall be given to candidates that have applicable experience in accounting, law, law enforcement and academics from related fields. Remuneration to appointed members will be as follows: - $250.00 retainer fee (includes compensation for review of any background materials) - $200.00 per meeting Membership Selection Criteria: The recruitment process shall include an advertisement in the local paper and on the municipal website detailing the selection criteria. All applicants will be required to complete an application form outlining their qualifications and experience. All applications will be forwarded to Council for consideration and appointment. The selection process will be based upon clearly understood and equitable criteria. Members will be selected on the basis of the following: - demonstrated knowledge and understanding of municipal election campaign financing rules; - proven analytical and decision-making skills; - experience working on a committee, task force or similar setting; - availability and willingness to attend meetings; and - excellent oral and written communication skills; Meeting Structure: The Committee will be called to order when an application for a compliance audit has been received. The date and time of the meeting will be determined by the City Clerk and communicated directly to the committee members. All time frames outlined in the Act and regulations will be adhered to. Committee activity will be determined primarily by the number and complexity of applications for compliance audits that may be received. The frequency and duration of Committee meetings will be determined by the Committee in consultation with the City Clerk. An agenda shall be prepared for each Committee meeting. Minutes of each meeting shall outline the general deliberations and specific actions and recommendations that result. 2 101 The Committee members will select a Chair from amongst its members at its first meeting. The Committee will conduct its meetings in public, subject to the need to meet in closed session for a purpose authorized by section 239 of the Municipal Act, 2001. The City's web site will be used to communicate meeting notices, agendas and decisions. Conflict of Interest: Members of the Committee must abide by the Municipal Conflict of Interest Act. Members shall not use their status on the Committee for personal or political gain. Term of the Committee: The mandate of the City of Pickering Election Compliance Audit Committee will be considered complete at the end of the four year term of Council, at which time, a successor committee shall be appointed. Exception —Any outstanding applications that have not yet been completed at the end of the four year term shall be completed by the Committee which first accepted the application. 3 102