HomeMy WebLinkAboutCLD-038-07
,Cl!J!il1gton
REPORT II 2
REPORT
CLERK'S DEPARTMENT
Meeting:
COUNCIL
Date:
Monday, November 12, 2007
Report #: Report CLD-038-07
File#:
By-law #:
Subject:
COMPLIANCE AUDIT - JOHN MUTTON
RECOMMENDATIONS:
It is respectfully recommended that Council approve the following:
1. THAT Report CLD-038-07 be received; and
2. THAT Council provide direction as per Item 3. of Report CLD-038-07.
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Submitted by: .1~~." . ",vu "
paWL arrje;' CMO
tiifunicipafClerk
Reviewed by: d~ ~
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-038-07
PAGE 2
1. At the Council meeting of June 25,2007, council considered and granted a request for a
compliance audit of the election financial returns of John Mutton to be completed. The
firm of Horn Almand Chartered Accountants was chosen for the audit. On July 12, 2007,
council amended its decision by deleting the reference to one of the applicants based on
confirmation that the individual is not a Canadian citizen, but otherwise reconfirmed its
decision for the audit to proceed. The audit report was received in the Municipal Clerk's
office on November 5, 2007. A copy of the complete audit document is attached hereto
as Attachment NO.1.
2. Section 81(10) of the Municipal Elections Act, 1996, states:
"The councilor local board shall consider the report within 30 days after receiving it
and may commence a legal proceeding against the candidate for any apparent
contravention of a provision of this Act relating to election campaign finances."
Given that the auditor has indicated the electoral campaign of John Mutton to be in
compliance with the Act, it is recommended that this report be received for information.
3. Mr. Horn has submitted an invoice in the amount of $4,755.00 for the audit services. In
accordance with Section 81 (9) of the Act, this amount has been paid by the municipality.
Section 81 (11) of the Act states:
"If the report indicates that there was no apparent contravention and the councilor
local board finds that there were no reasonable grounds for the application, the
councilor local board is entitled to recover the auditor's costs from the applicant."
The interpretation of "reasonable grounds" is a matter to be determined by Council based
on the information contained in the audit report. Here are two options for Council's
consideration:
,--------
REPORT NO.: CLD-038-07
PAGE 3
Option A
Council determines there are reasonable grounds for the audit request. In this case,
Council would receive this report for information and the cost of the audit would be
absorbed by the municipality.
Option B
Council determines there are NO reasonable grounds for the audit request. In this case,
Council would direct staff to recover the audit cost from the applicant.
'IN01}05 pr';12=19;O'7
HO][,Jll Ahn<lmd I
Chartered Accountants J
Attachment No.1 to
Report CLD-038-07
November 2,2007
Ms. Patti Barrie, AMCT
Municipal Clerk
Corporation of the Municipality of Clarington
40 Temperance Street
Bowmanville ON L 1C 3A6
Dear Ms. Barrie
Compliance Audit - Mr. John Mutton
We are pleased to enclose our report and related comments on the above matter.
Introduction
We would like to acknowledge the cooperation of senior staff, Mr. J. Multon and his auditor, Mr. M.
Sullivan in this process.
While we did have some difficulty in connecting with Mr. Mutton originally, this was due to his
business relocation at the time and the need to reconfirm our appointment based on scope and
available materials.
Available Materials
In a letter dated June 26, 2007 from the Municipality, we were provided with a copy of Mr. Mutton's
2006 election filing and a copy of a letter dated June 12, 2007 from the applicants requesting a
compliance audit.
The June 12, 2007 letter raised 6 specific issues and is 2 Yo pages in length.
In late July, 2007 we received a courier package from Mr. S. Keane, one of the;apPlicants. This flJu. ~ ,;1
package comprised a cover letter of 5 pages and attached material of 79 pages. ~
113
This material raises certain additional concerns not in the original June 12, 2007 application. In the
interests of bring closure to this matter, we have commented on these issues.
The tone and certain comments in this material are questionable and border on offensive.
.CO'l mU
67 Mowat Avenue, Suite 444, Toronto,Ontario M6K 3E3
tel.: 416-516-8555 . fax: 416-516-0773
Page 2
To bring some perspective to this matter, our discussions have determined that Mr. Mutton was a
popular elected official, first as a regional councillor in 1997 and as two terms as mayor in 2000 and
2003. He undertook his duties with enthusiasm and was out in the community. He worked well with
Council and senior staff.
Report on Issues
In the attached exhibit we have listed the issues raised by the applicants and our commentary as to
the relevant facts. We have used this format as we believe it is easier to follow given the volume of
issues we have been asked to address.
Oriqinal Filinq and Audit Process
As part of our procedures we met with Mr. Mutton's auditor, Michael Sullivan. Based on these
discussions, we have determined that the audit process followed was appropriate and provided
sufficient evidence for the standard opinion to be rendered.
Municipalitv of Clarinqton
We have been made aware that the Crown Attorney's Office in Whitby is reviewing numerous
charges against the Municipality of Clarington in connection with the 2006 election. We have
received two sizable packages related to this matter, September 8, 2007 and October 30, 2007
from a Mr. M. Hendrikx.
Certain issues in that matter have also been raised in the challenge to Mr. Mutton's filing. The most
significant issue is whether various newspaper articles constituted paid advertising.
The Crown Attorney's Office will be reviewing case law and precedents to determine if this case
should proceed. They may very well reach a different conclusion regarding the newspaper articles.
Conclusion
We believe there is no significant contravention relating to Mr. Mutton's 2006 campaign filing.
Very truly yours
~:j;j(~
James E. Horn, CA
Partner
cc: Mr. John Mutton
Mr. Sean Keane
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