HomeMy WebLinkAboutCLD-020-07
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REPORT
CLERK'S DEPARTMENT
Meeting:
COUNCIL
Date:
Monday, May 14, 2007
Report #: CLD-020-07
File#:
By-law #:
Re>1+ ~77-D7
Subject:
COMPLIANCE AUDIT
RECOMMENDATIONS:
It is respectfully recommended that Council approve the following:
1 . THAT Report CLD-020-07 be received;
2. THAT Resolution #C-238-07 be reconfirmed;
OR
THAT the Rules of Order be suspended to allow for introduction of a motion to reconsider
Resolution #C-238-07 and to pass a motion to appoint a new auditor for the compliance
audit of the election financial returns of Mayor Jim Abernethy.
Submitted by:
ReviewedQ~ ~
Franklin Wu,
Chief Administrative Officer
PLB
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1C 3A6 T (905)623-3379 F (905)623-0830
REPORT NO.: CLD.020-07
PAGE 2
At the Council meeting of April 30, 2007, Council considered a request from Ron Webb to have
the Election Financial Returns of Mayor Jim Abernethy audited as per the Municpal Elections
Act. In consideration of this matter, Council passed the following Resolution #C-238-07:
"THAT the request for a Compliance Audit of the election financial returns of Mayor Jim
Abernethy, as requested by Mr. Ron Webb, be granted;
THAT Hobb and Company be appointed as the auditor to conduct the compliance audit; and
THAT Ron Webb and Hobb and Company be advised of Council's decision."
On May 1,2007, correspondence was sent to Hobb and Company advising of Council's
resolution. By letter dated May 4,2007, Peter Hobb has indicated that he was the Financial
Officer for Jim Schell's mayoralty campaign in the last municipal election and therefore would
have a conflict. He advises, however, that he would be able to do the audit if two conditions are
met:
1.
2.
He could not be involved in any aspect of the engagement; and
All parties be made aware of the situation.
A copy of Mr. Hobb's letter is attached to this report for information.
In considering this matter, the advice of the Solicitor was sought. He advises that if a court
challenge is made of the compliance audit or the Council's response to it, the decision to appoint
Hoob & Company as the auditor rnay be attacked since Mr. Hobb acted as the financial officer
for Mr. Schell. To minimize the risk of such a challenge being made, the Solicitor advises that it
would be prudent to obtain the consent of Mr. Abernethy and Mr. Webb to the appointment of
Hobb & Company before that firm is actually engaged to conduct the compliance audit.
Based on the Solicitor's advice, I am seeking the views of Mr. Webb and Mr. Abernethy and will
report further at the Council meeting.
.
- -
Llnaa Jl. "'^NlDfta..."
H-
HOBB & COMPANY
Attachrnent No. 1 to
Report CLD-020-07
CHAATE:I>ED ACCOUNTANTS t< TAX SPEC'Al..'5TS
'07MAY04 PM 2:51:19
May 4, 2007
The Corporation of the Municipality of Clarington
40 Temperance Street
Bowmanville, ON
LIC 3A6
Attention: Ms. Patti L. Barrie, A.M.C.T. Municipal Clerk
Dear Ms. Barrie:
RE: Request to do Compliance Audit
Thank you for selecting Hobb & Company to do the Compliance Audit of the election financial returns of
Mayor Jim Abernethy. As discussed, I was the Financial Officer for Jim Schell's mayoralty campaign in
the last municipal election and therefore would have a conflict. As a result, some of the parties may have
concern that my firm would be unable to perform the Compliance Audit. According to an interpretation
of our profession's Rules of Professional Conduct, Hobb & Company would be able to do the audit if two
conditions are met. The first condition is that I could not be involved in any aspect of the engagement,
which I wouldn't be. The second condition is that all parties be made aware of this situation. Would you
kindly inform all the parties of my conflict and advise us of any objections? Denise Jones, a partner in
Hobb & Company, will be responsible for the engagement and the primary contact.
I look fOlWard to your hearing from you.
Yours truly,
Peter A. Hobb, CA, CFP
Partner
PAH:jr
PETER A. HOBB. CA CFP IAN F. BERGIN. CA THOMAS F.G. HILL.. CA DENISE A. JONES. CA
222 KING STREET EAST. SUITE 103 BOWMANVILLE. ON L1C 1P6
TEL: 90S 623-9461 TOLL FREE: 1-866-392-5675 FAX: 90S 623-9734 EMAIL: BOWMANV1LLE@HOBB.CA WEB: WWW.HOBB.CA