HomeMy WebLinkAboutCLD-017-09~~t"11~;t0II
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REPORT
CLERK'S DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 28, 2009 ~~,~5 (~fio~ ~~~~ -J~.35 ~ 9
Report #: CLD-017-09
File #:
By-law #:
Subject: COMPLIANCE AUDIT -JOHN MUTTON 2006 ELECTION CAMPAIGN
RECOMMENDATIONS:
It is respectfully recommended that Council approve the following:
THAT Report CLD-017-09 be received; and
2. THAT, in accordance ~~with section 81(4) of the Municipal Elections Act, Bernard G.
Nayman Chartered Account be appointed to conduct a second compliance audit of
John Mutton's 2006 Mayoral Campaign; and
3. THAT the interested parties listed in Report CLD-016-09 be advised of Council's
decision.
Submitted by:
_~
Reviewed by: -Franklin Wu,
~~ Chief Administrative Officer
PLB*
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 F 905-623-6506
REPORT NO.: CLD-017-09'
BACKGROUND
PAGE 2 of 3
At the Council meeting of July 13, 2009, Council instructed the Municipal Clerk to recommend
a qualified person to conduct a new compliance audit related to the election campaign finances
of John Mutton in the 2006 municipal elections. This direction was as a result of Council
approving a second audit halving regard to the disciplinary proceedings of The Institute of
Chartered Accountants of Omtario against Mr. James E. Horn, who completed an initial
compliance audit on the campaign.
In an attempt to find an auditior who was able to perform the initial audit in 2007, letters were
sent to 83 Chartered Accountants, whose names, with the exception of one, were found on the
web site for The Ontario Institute of Chartered Accountants. These accountants were located
within Durham Region, Port Hope, Lindsay, Peterborough and Toronto. In response to these
letters, 21 replies were received. Four of the companies indicated that they would be able to
complete the compliance audit, however, upon further investigation, it was determined that one
of the companies had no experience in this area. Of the other companies, Laing & Rohr was
appointed to perform the compliance audit on Mayor Abernethy's mayoral campaign and
James E. Horn was appointed to perform the compliance audit on John Mutton's mayoral
campaign.
In an effort to find an auditor to perform the second compliance audit on John Mutton's
mayoral campaign, The Institute of Chartered Accountants of Ontario and The Canadian
Institute of Chartered Accountants were contacted. Neither organization was able to provide
names of accountants who would perform this type of audit. Discussion took place with the
City of Vaughan, who has recently been through the same exercise. The auditor who
performed the work for them was involved in the disciplinary proceedings against James E.
Horn and, therefore, had a conflict in performing this audit. Through contact with the
Association of Municipal Managers, Clerks and Treasurers of Ontario and the City of Toronto,
names of five auditors were forwarded. All five of these auditors have been contacted;
information has been forwarded to four who indicated an initial interest and three have
provided quotes for performing the compliance audit, as follows:
Com an Amount of Quote
Bernard G. Na man Chartered Accountant $14,970
Suntharalingam & Associates Chartered $5,000-$8,000 (perhaps lower, depending on
Accountants the information available and the co-operation
of all parties)
WH Partners LLP $7,500 + applicable taxes (approximate -
actualfees will be dependent on the actual
times ent on the file)
Specifics of the quotes are outlined in Attachment No. 1.
The estimates received are well within the limits of the Municipality's Purchasing By-law for
contracting and consulting, without the need for issuing a Request for Proposal or a Tender.
REPORT NO.: CLD-017-09
PAGE3OF3
Upon receipt of the report of'the auditor, should the report indicate that there was no apparent
contravention and Council finds that there were no reasonable grounds for the application, the
Council is entitled to recover the auditor's costs from the applicant.
Based on the extensive experience Mr. Nayman has in the field of municipal audits, it is
respectfully recommended that he be appointed as the auditor for completing the compliance
audit of John Mutton's 2006 mayoral campaign. Mr. Nayman has indicated that he can
commence the audit immediately upon approval of Council and he estimates that the audit will
take approximately 45 days ~o complete.
Attachment No. 1 -Quote
Interested parties to be advised of Council's decision:
B.G. Nayman, Bernard G. Nyman Chartered Accountant
K. Suntharalingam, Suntharalingam & Associates Chartered Accountants
R. Husain, WH Partners LLP
D. & C. Prout
S. Keane
G. Van Dyk
J. Mutton
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