Municipal campaign finance audits must be requested by a voter

Clerks are required to financial statements submitted by candidates to check and see if contributions appear to exceed the contribution limits:

The clerk shall review the contributions reported on the financial statements submitted by a candidate under section 88.25 to determine whether any contributor appears to have exceeded any of the contribution limits under section 88.9.
Section 88.34 (1) of Municipal Elections Act

However, full election compliance audits are not done automatically. They are only done if an eligible voter submits an audit application and the Municipal Election Compliance Audit Committee decides that an audit is required.

What is an election compliance audit?

A compliance audit is a formal review of an election candidate’s campaign finances done by an auditor appointed by a municipality’s Election Compliance Audit Committee. It is done when a voter submits an application outlining their concerns and the Committee agrees that the concerns are legitimate and an audit is required.

It is the enforcement process when municipal election finance laws are broken.

If you reasonably believe that a candidate or third party advertiser in the municipality where you are eligible to vote has broken any of the election campaign finances laws laid out in the Municipal Elections Act, you may apply for a compliance audit of their campaign finances.

An elector who is entitled to vote in an election and believes on reasonable grounds that a candidate has contravened a provision of this Act relating to election campaign finances may apply for a compliance audit of the candidate’s election campaign finances, even if the candidate has not filed a financial statement
Section 88.33

An elector who is entitled to vote in an election in a municipality and believes on reasonable grounds that a registered third party who is registered in relation to the election in the municipality has contravened a provision of this Act relating to campaign finances may apply for a compliance audit of the campaign finances of the registered third party in relation to third party advertisements, even if the registered third party has not filed a financial statement
Section 88.35

Candidates include anyone who ran for Mayor, Regional and Local Councillor and Ward Councillor. School boards have their own, separate compliance audit committees.

Who can submit an application?

Applications can be submitted by eligible voters, who must:

reside in the local municipality or is the owner or tenant of land there, or the spouse of such owner or tenant;
are a Canadian citizen;
are at least 18 years old; and
are not prohibited from voting under Subsection (3) or otherwise by law.

Election finance laws

Unless the candidate was acting in good faith when they committed the offence inadvertently or because of an error in judgment,

A candidate is guilty of an offence and, on conviction, in addition to any other penalty that may be imposed under this Act, is subject to the penalties described in subsection 88.23 (2),
if the candidate incurs expenses that exceed the amount determined for the office under section 88.20; or
if the candidate files a document under section 88.25 or 88.32 that is incorrect or otherwise does not comply with that section.

More: Municipal election contribution and spending limits in Ontario

More: Third party advertiser rules in municipal elections

How to submit an application for a municipal election compliance audit

An application for a compliance audit shall be made to the clerk of the municipality or the secretary of the local board for which the candidate was nominated for office, and it shall be in writing and shall set out the reasons for the elector’s belief.
Section 88.33 (2)

Example submission

Some municipalities have application forms (see below), but they aren’t mandatory. You can simply submit your request to the Clerk in writing, outlining all the reasons for your belief.

Deadlines

The Municipal Clerk must receive the application within 90 days after the latest of the following dates:

Filing date for financial statements (March 31, 2023 in 2022 Election, so June 29, 2023)
- Regular election: last Friday in March following the election
- By-election: 75 days after voting day
Date the candidate or third party advertiser filed an initial financial statement, if it was filed within 30 days after the applicable filing date (grace period or a court-ordered extension)
Supplementary filing date
- Regular election: last Friday in September in the year following the election
- By-election: 30 days after the supplementary reporting period, which is 6 months plus 45 days after voting day
Date of the candidate or third party advertiser extension, if any, expires.

Application requirements

The application must be:

Submitted by an elector who is entitled to vote in an election
Have reasonable grounds that a candidate or third party advertiser has contravened a provision of the Municipal Elections Act
Regarding a candidate or registered third-party advertiser in the municipal election within the applicable Municipality
Submitted after Financial Statements have been filed
Completed and submitted to the City Clerk or City Hall

How much does it cost to submit an application?

There is no cost, fee or penalty to the applicant to submit an application or have an audit done. The Municipal Elections Act clearly states that the municipality or local board is to pay for the costs of the auditor and their audit:

The municipality or local board shall pay the auditor’s costs of performing the audit.
Section 88.33 (16)

The council or local board, as the case may be, shall pay all costs in relation to the committee’s operation and activities.
Section 88.37 (7)

Previously, the cost of the audit could be recovered from the applicant if there were no reasonable grounds, but the 2016 Municipal Elections Modernization Act removed that section, so it is no longer law:

If the report indicates that there was no apparent contravention and the council or local board finds that there were no reasonable grounds for the application, the council or local board is entitled to recover the auditor’s costs from the applicant.
Section 80 (11) of Municipal Elections Act

Interestingly, this hasn’t stopped some municipalities from charging fees or saying they will collect penalties relating to compliance audit applications.

Leaving these outdated, incorrect statements on their websites, processes and Terms of Reference may dissuade applicants with concerns from applying, undermining the democratic process and eroding the integrity of the electoral process.

Greater Sudbury charging a fee for compliance audit applications

Richmond Hill charging applicants a penalty fee if application is denied

Richmond Hill’s warns prospective applicants that if the Joint Compliance Audit Committee finds that no laws were broken and there were ‘no reasonable grounds’ for the request, then they charge a fee to recover the cost of the auditor’s services, penalizing the applicant:

Other municipalities and local boards that still state that funds may be recovered:

Municipal campaign finance audits must be requested by a voter

What is an election compliance audit?

Who can submit an application?

Election finance laws