Corp Comm Connects


Stouffville mayor's election expenses won't be audited
Unanimous decision from compliance audit committee

YorkRegion.com
July 20, 2015
By Sandra Bolan

In a unanimous decision, the three-member compliance audit committee voted to reject a forensic audit application of Mayor Justin Altmann’s financial statements relating to the 2014 election campaign.

Committee chairperson Ron Colucci, a CPA by trade, who has served on compliance audit committees since 2010, noted his appreciation this morning for the application coming forward, however, throughout the hearing, he also shut down some of the arguments Whitchurch-Stouffville resident Ian Hilton wanted investigated.

“For me, you haven’t met the burden of proof...we need to have this forensically examined,” Colucci said specifically of Altmann’s barn and Hilton’s claim the rental rate was below market rental value.

“For us to reach a conclusion for a compliance audit, we need a little bit more than just speculation,” Colucci told Hilton partway through the hearing that lasted just over 90 minutes.

It was held in the council chambers at the Town of Whitchurch-Stouffville offices, which were filled with Altmann supporters.

Also sitting on the committee was Toronto-based lawyer Robert Freedman and former Town of Whitby clerk and current member of various audit committees Paul Jones.

Hilton told The Sun-Tribune it was “disappointing” but “it was a worthwhile process to go through.”

What he hopes will become a positive outcome from this will be updated municipal bylaws regarding elections.

Even though the committee rejected a forensic audit, there is an option for Hilton to appeal, which Colucci noted would cost him money.

“I’ll look into it. I’ll certainly reflect on it. It is part of the process, we’ll see,” Hilton said in an interview. “I’m not saying either yes or no to it at this point. I’ll take a look.”

Tom Winters, who ran in Ward 5 this past election, but lost to Iain Lovatt, supported Hilton’s initial request but will not appeal the decision. Lovatt was the only current councillor sitting in the gallery this morning

Winters accepted the decision but told yorkregion.com/the Stouffville Sun-Tribune he wished the committee would have delved deeper into some of the issues.

The session became somewhat personal, as at one time Winters and Altmann were friends.

“The man that I’ve known since I was 16, the man who stabbed me in the back, who said very offensive things,” Altmann said of Winters during the hearing.

Following the decision, Altmann told The Sun-Tribune he understands everyone has the right to ask for an audit but he just wished Winters and Hilton would have first asked to see his financial records.

“It was hurtful but at the same time, it shows I have my integrity, I’m honest,” Altmann told The Sun-Tribune.

He now wants to get back to doing his job - being mayor.

That includes hosting his first golf tournament at The Maples of Ballantrae Wednesday and Thursday.

Hilton based his application partly on Altmann’s financial statements, which were audited by James Wilson, a local CPA with almost 40 years of experience.

“...I did perform the audit and I did report according to the Municipal Act, exactly the way it is supposed to be worded,” he told the committee.

“I looked at every single expense, every single revenue...I have looked at every single detail and his theory that (Altmann’s) account doesn’t add up by $8,000 to $10,000 is offensive.”

The committee is shared by all municipalities in York Region, except Markham. Three other applications for compliance audits have come before the committee following last fall’s election.

Richmond Hill Councillor Greg Beros will face a compliance audit for his election expenses related to last year’s municipal election, the committee ruled last week.

His campaign finances should be investigated, as he may have breached the Municipal Act when he used public funds to mail a flyer during a time period when candidates were forbidden to do so, the committee ruled.

Audit requests in Vaughan and Newmarket were rejected.

COMPLIANCE AUDITS

Each municipality and school board must appoint a compliance audit committee.

If an eligible elector believes that you have contravened the election finance rules, they may apply for a compliance audit of your campaign finances. The application must be in writing, and must set out the reasons why they believe you contravened the rules.

An application for a compliance audit must be submitted to the municipal clerk, who conducted the election within 90 days of the deadline to file the campaign financial statement.

The compliance audit committee will consider the application and decide whether to grant or reject the application. You may appeal the committee’s decision to the Ontario Court of Justice within 15 days after the decision is made.

If the committee grants the application, they will appoint an auditor to conduct a compliance audit of your campaign finances. The auditor is entitled to have access to all of the financial records related to your campaign. The auditor will produce a report, which you are entitled to receive.

The compliance audit committee will meet to consider the auditor’s report. If the report concludes that there is an apparent contravention of the Act, the committee will decide whether to commence legal action.

The compliance audit committee does not have any authority to set penalties. Only the court can decide if you actually contravened the Act and, if so, which penalties should apply.