2018-077 Establish and Appoint a Joint Compliance Audit CommitteeThe Corporation of the Township of Oro-Medonte
By -Law No. 2018-077
A By-law to establish and appoint a Joint
Compliance Audit Committee
Whereas Section 8 (1) of the Municipal Act, 2001, S.O. 2001, c.25, herein referred
to as "the Act" provides that the powers of a municipality under this or any other Act
shall be interpreted broadly so as to confer broad authority on the municipality to
enable the municipality to govern its affairs as it considers appropriate and to
enhance the municipality's ability to respond to municipal issues;
And Whereas Section 23.1(1) of the Act provides that without limiting Sections 9,
10 and 11 of the Act, those sections authorize a municipality to delegate its powers
and duties under this or any other Act to a person or body subject to the restrictions
set out in this Part;
And Whereas Section 88.37 of the Municipal Elections Act, 1996, S.O. 1996, c. 32
provides that a council shall establish a Compliance Audit Committee before
October 1 of an election year for the purposes of the Municipal Elections Act, and
2018 is an election year;
And Whereas Section 88.37(6) of the Municipal Elections Act provides that the
Clerk of the municipality shall establish administrative practices and procedures for
the committee and shall carry out any other duties required under this Act to
implement the committee's decisions;
And Whereas Section 228 (4) of the Act provides that the Clerk may delegate in
writing to any person, other than a member of council, any of the Clerk's powers
and duties under this and any other Act, and the Clerk has delegated powers
required to the County Clerk, or designate, to administer and execute all necessary
duties to support the Joint Compliance Audit Committee; and
Now therefore the Council of the Corporation of the Township of Oro-Medonte
enacts as follows:
That Council hereby establishes the Joint Compliance Audit Committee with
the municipalities of Clearview, Collingwood, Midland, Oro-Medonte,
Penetanguishene, Ramara, Severn, Springwater, Tay, Tiny, Wasaga Beach,
and the City of Orillia.
2. That the Compliance Audit Committee Terms of Reference attached hereto
as Schedule 1 to this By-law, are hereby adopted;
3. That the following are hereby appointed as members of the Joint Compliance
Audit committee for the 2018-2022 term of Council:
a) Peter Walpole;
b) Gitte Koopmans;
c) Ted Southorn;
d) Ruben Rosen;
e) Jessie Crichton.
4. That Council confirms that the Clerk has delegated in writing the Clerk's
powers and duties to the County Clerk with respect to the Joint Compliance
Audit Committee under the Municipal Elections Act.
5. That this By-law shall come into force and effect upon the date of passing
thereof.
By -Law Read a First, Second and Third time, and Passed this 15th day of
August, 2018.
The Corporapon oftthe Township of Oro-Medonte
Joint Compliance Audit Committee
Terms of Reference
The Participating Municipalities will select Committee members jointly. In the event a
Participating Municipality receives an application for a compliance audit, the County Clerk
will be responsible for meeting administration while the Municipal Clerk for the Participating
Municipality will be responsible for payment of all costs associated with the Committee,
including audits, if required.
Definitions
"Act" means the Municipal Elections Act, 1996, S.O. 1996, c. 32, as amended from time to
time.
"Applicant" means the individual who submitted the application requesting a Compliance
Audit.
"Auditor" means a person appointed by the Committee, licensed under the Public
Accounting Act, 2004, to conduct a Compliance Audit of a Candidate's election campaign
finances pursuant to Section 88.33(10) and (11) of the Act.
"Auditor's Report" means a report prepared by an auditor for the Committee pursuant to
Section 88.33(12) of the Act.
"Candidate" means the candidate whose election campaign finances are the subject of an
application for a Compliance Audit.
"Clerk" means, as the context provides, the Clerk of any of the Participating Municipalities,
or his or her designate.
"Committee" means the Joint Compliance Audit Committee established pursuant to Section
88.37(1) of the Act.
"Compliance Audit" means an audit of a Candidate's election campaign finances
conducted by an Auditor appointed by the Committee.
"Council" means, as the context provides, the Council of any of the Participating
Municipalities.
"County Clerk" means the Clerk of The Corporation of the County of Simcoe or their
designate.
"Family Member" means a child, parent and spouse of a Committee member, as defined in
the Municipal Conflict of Interest Act, and shall also include mother, father, sister, brother,
daughter-in-law, son-in-law, step -child, sibling, grand -child, aunt, uncle, niece, nephew and
first cousins.
Joint Compliance Audit Committee
Terms of Reference
"Meeting" means a meeting of the Committee in accordance with section 5.1 of the Act.
"Municipal Conflict of Interest Act" means the Municipal Conflict of InterestAct, R.S.O. 1990,
c. M.50, as amended from time to time.
"Participating Municipalities" means all or some of the following municipalities participating
in the Joint Compliance Audit Committee process: The City of Orillia, The Town of
Collingwood, Town of Midland, Town of Penetanguishene, Town of Wasaga Beach,
Township of Clearview, Township of Oro-Medonte, Township of Ramara, Township of
Severn, Township of Springwater, Township of Tay and the Township of Tiny.
"Pecuniary Interest" means a direct or indirect interest within the meaning of the Municipal
Conflict of Interest Act.
"Private Session" means any portion of the meeting that is closed to the public for
confidential deliberation in accordance with the Act.
"Reasonable Notice" means the posting of the meeting agenda on the County website and
the applicable participating municipalities' website and advising the Applicant, Candidate,
Contributor or Registered Third Party Advertiser, as applicable, by email, telephone or by
regular mail seven (7) calendar days in advance of the meeting.
"Registered Third Party Advertiser" means an individual resident in Ontario, a corporation
carrying on business in Ontario or trade union who has filed with the clerk of the municipality
responsible for conducting an election a notice of registration to be a registered third party
advertiser for the election pursuant to Section 88.6 of the Act.
"Selection Committee" means the committee, composed of the Clerks of the Participating
Municipalities that will choose the members of the Committee.
"Simcoe County" means The Corporation of the County of Simcoe.
"Trade Union" means a trade union as defined in the Labour Relations Act, 1995 or the
Canada Labour Code (Canada) and includes a central, regional or district labour council in
Ontario.
2. Enabling Legislation
Section 88.37(1) of the Act requires that before October 1st in an election year, Council
establish a compliance audit committee for the purposes of Section 88.33 of the Act relative
to a possible contravention of the Act's election campaign finance provisions.
Page 2
Joint Compliance Audit Committee
Terms of Reference
3. Mandate
This Committee is an investigative/adjudicative body created to enforce provincially
enacted laws related to municipal election campaign funding.
4. Roles and Responsibilities
The Committee shall:
Page 3
Timeline/Section of the Act
Consider Compliance Audit applications for
Within 30 days after receipt of the
Candidates and/or Registered Third Parties
application - s. 88.33(7)
and decide whether they should be granted
or rejected.
Provide written reasons for the decision to
s.88.33(8)
rant or reject the applications.
If an application is granted, appoint an
s. 88.33(10) and (11)
Auditor to conduct a Compliance Audit of the
Candidate's election campaign finances.
Receive the Auditors Report. s. 88.33 14
(i) Once the Auditor's Report is received,
Within 30 days of receipt of the
consider the Report if it contains a
Auditor's Report - s. 88.33(17)
conclusion of apparent contravention of
the Act, and decide whether to
commence a legal proceeding against
the candidate for the apparent
contravention.
Receive a Clerk's Report identifying any
s.88.34(4)
contributor to a Candidate or Registered
s.88.36(4)
Third Party Advertiser who appears to have
contravened established contribution limits.
Once the Clerk's Report is received, consider
Within 30 days of receipt of the Clerk's
the Report and decide whether to commence
Report - s. 88.34(8), s. 88.36(5)
a legal proceeding against the Contributor for
the apparent contravention.
In addition, the Committee shall:
- Participate in the selection of an Auditor in response to the request for quotation
Page 3
Joint Compliance Audit Committee
Terms of Reference
process;
- Provide instructions to the selected Auditor about the scope of each Compliance
Audit, as needed;
- Determine a timeline for the Auditor to complete each Compliance Audit.
5. Term
The term of the appointment is concurrent with the term of Council. Upon the term's expiry,
Committee members may reapply to the Selection Committee to serve additional terms.
6. Composition
The Committee shall be composed of not fewer than three (3) and not more than seven
(7) members and shall not include:
(a) employees or officers of the Participating Municipalities;
(b) members of Council of the Participating Municipalities;
(c) any persons who are Candidates in the election for which the Committee is
established, or Family Members of same, or any person connected to a candidate
through an employment, contractual, business or partnership relationship;
(d) any persons who have participated as a Candidate for an office or Registered Third
Party Advertiser in the Participating Municipalities in the past two regular elections,
or who have conducted audits or provided financial or legal advice in respect of
such campaigns;
(e) any persons who do or intend to assist any Candidate or Registered Third Party,
as a volunteer or for compensation, in the election for which the Committee is
established.
7. Selection of Members
Information pertaining to the Committee, including the terms of reference and an
application for appointment to the Committee will be posted on the websites of the
Participating Municipalities.
Committee membership will be drawn from the following groups:
• accounting and audit — accountants or auditors, preferably with experience in
preparing or auditing the financial statements of municipal candidates;
• academic — college or university professors with expertise in political science or local
government administration;
• legal; and
Page 4
Joint Compliance Audit Committee
Terms of Reference
• other individuals with knowledge of the campaign financing provisions of the Act.
The following criteria may be considered in the selection of members:
• demonstrated knowledge and understanding of the Act's municipal election
campaign financing provisions;
• experience in administrative law;
• proven analytical and decision-making skills;
• experience working on a committee, task force or in a similar setting;
• availability and willingness to attend meetings;
• demonstrated oral and written communication skills; and
• any other criteria as may be prescribed under the Act.
The Clerks from the Participating Municipalities shall be responsible for the recruitment
of applicants. All applicants will be required to submit an application form outlining their
qualifications and experience to the County Clerk by a specified deadline. After the
deadline has passed, the Selection Committee will meet to review the applications,
interview and appoint Committee members.
To avoid possible conflicts of interest, any auditor or accountant appointed to the
Committee must agree in writing that they have not undertaken and shall not undertake
the audits or preparation of financial statements of any Candidates seeking election to
Councils or Registered Third Parties in the Participating Municipalities during the term of
the Committee. In addition, any lawyer or other legal professional appointed to the
Committee must agree in writing that they have not provided and will not provide legal
advice to any Candidates seeking election to Councils or to any Registered Third Parties
or Contributors to Candidates and Registered Third Parties in the election in the
Participating Municipalities during the term of the Committee.
8. Notice
The County Clerk shall give notice of a Committee meeting to the Committee by email,
telephone or by regular mail in advance of the notice to the public.
The County Clerk and applicable Municipal Clerk shall give reasonable notice of the meeting
by posting the meeting agenda on their websites. This will serve as public notice of the
Committee meeting.
Where an application will be considered at the meeting, the County Clerk shall give
reasonable notice to the Applicant and Candidate or Registered Third Party Advertiser of
the time, place and purpose of the Committee meeting, and further advise that if either party
fails to attend the meeting, the Committee may proceed in the party's absence and the party
will not be entitled to further notice concerning the meeting.
Where a Municipal Clerk's Report regarding contribution limit exceedances will be
Page 5
Joint Compliance Audit Committee
Terms of Reference
considered at the meeting, the County Clerk shall give reasonable notice to the Contributor
and Candidate or Registered Third Party Advertiser of the time, place and purpose of the
Committee meeting, and of the fact that if either party fails to attend the meeting, the
Committee may proceed in the party's absence and the party will not be entitled to further
notice concerning the meeting. The notice shall include the content of the application.
9. Meetings
The County Clerk shall call a meeting of the Committee when he or she receives an
application for a Compliance Audit or when he or she receives a report under Section
88.34 from the participating municipalities Clerk. The Applicant, Candidate, Registered
Third Party Advertiser or their representative will be provided with an opportunity to
address the Committee and provide written submissions.
Meeting dates, start times, locations and agendas shall be set by the County Clerk. The
agenda shall provide an opportunity for any member to declare a conflict of interest.
Committee meetings will be open to the public but the Committee may deliberate in
private, as noted in Section 88.33(5.1). No votes may be taken in private session.
10. Quorum
A quorum shall be a majority of Committee members.
If a quorum is not present within fifteen (15) minutes of the time fixed for the
commencement of the meeting, the Committee meeting will be rescheduled to a future
date.
11. Selection of the Chair
The Chair shall be selected from among the Committee members at the first meeting of
the Committee for the term of office. If there is no consensus on a Chair, selection will
be carried out by way of nomination and vote of the Committee members present.
If the Chair of the Committee resigns as the Chair or as a member of the Committee, the
Committee shall appoint another member as Chair for the balance of the term of Council.
12. Duties of the Chair
The Chair shall:
(i) call Committee meetings to order when there is a Quorum, preside over Committee
discussions, facilitate Committee business, follow meeting procedures, identify the
order of proceedings and speakers and rule on points of order;
Page 6
Joint Compliance Audit Committee
Terms of Reference
(ii) participate as an active and voting member; and,
(iii) encourage participation by all members.
If the Chair is not present within the first ten minutes of a Committee meeting or is absent
through illness or otherwise, the Committee shall select another member as Acting Chair.
While presiding, the Acting Chair shall have all the powers of the Chair. Selection of the
Acting Chair will be made by resolution.
13. Duties of Committee Members
The duties of Committee members are as follows:
(i) Carry out all statutory obligations of the Committee in accordance with the Act.
(ii) Attend all Committee meetings, sending regrets otherwise.
(iii) Understand their role, the Committee's mandate and meeting procedures.
(iv) Declare any pecuniary interest in any matter prior to consideration by the
Committee the member shall leave the meeting during all discussion on the matter
including a private session.
(v) Where the pecuniary interest of a member has not been disclosed by reason of
the member's absence from the meeting, the member shall disclose the pecuniary
interest and otherwise comply with subsection (iv) at the first meeting of the
Committee attended by the member after the meeting referred to in subsection
(iv).
(vi) Participate as an active and voting member, asking questions, and seeking
clarification through the Chair.
(vii) Provide the reasons for a decision in writing, as applicable.
(viii) Develop and maintain a climate of mutual support, trust, courtesy and respect.
(ix) Work together to utilize the knowledge, expertise and talents of all members.
(x) Respect the decisions of the Committee and that such decisions reflect the
majority view.
14. Selection of an Auditor
Committee members will participate in the selection of an Auditor in response to the
request for quotation. The Auditor will be appointed by resolution of the Committee at their
Page 7
Joint Compliance Audit Committee
Terms of Reference
first meeting. An engagement letter will be prepared and executed by the County Clerk,
on behalf of the Participating Municipalities, which will indicate that the Auditor has been
retained by the Committee following appointment.
15. Resources
The County Clerk will provide administrative support to the Committee, including the taking
of minutes, the distribution of minutes and agendas, and the coordination of meetings.
16. Committee Records
The County Clerk will co-ordinate and retain certified true copies of the Committee
records including agendas and minutes with original documents being retained by the
appropriate Participating Municipalities.
17. Declaration of Interest
Legislated requirements as set out in the Municipal Conflict of Interest Act shall apply to all
Committee members. It is the responsibility of each member to disclose any pecuniary
interest prior to discussion of a particular matter. Members are encouraged to seek
independent legal advice if they are unsure of whether or not they have a pecuniary interest
in a matter. Staff from the County or the Participating Municipalities will not provide advice
or interpretation related to declarations.
18. Compensation
Members will receive the applicable County per diem and mileage for attendance at each
meeting with each Participating Municipality being responsible to cover their share of the
costs for each meeting.
19. Practices and Procedures
The Clerks of the Participating Municipalities along with the County Clerk shall establish
administrative practices and procedures for the Committee in accordance with Section
88.37(6) of the Act and shall carry out any other duties required under the Act to
implement the Committee's decisions.
The Clerks of the Participating Municipalities along with the County Clerk are delegated
the authority to make administrative changes to these Terms of Reference that may be
required from time to time due to legislative changes, or if, in the opinion of the Clerks,
the amendments do not impact the intent of the Terms of Reference.
August 3, 2018