Compliance Auditor Selected
August 9, 2005

City staff are recommending hiring Ken Froese of LECG Canada Ltd to conduct the compliance audit of the election finances of Mayor Di Ianni and two defeated candidates in the 2003 elections. The audits were requested by Dundas businesswoman Joanna Chapman who won a legal battle in the Ontario Court of Justice to force the city council to order the audits. The court decision in Chapman's favour was handed down in mid-May.

Froese is past president of the Association of Certified Forensic Investigators of Canada. He joined LECG in February of this year after 14 years with Grant Thornton. The latter company has been the auditor of the city's books for several years.

Froese was selected by the city treasurer, internal auditor, city clerk and a "purchasing representative" who issued a RFP (request for proposals) that generated three applications, one of which was disqualified "because the submission was incomplete".

The staff report recommending Froese says "provisions were included in the evaluation criteria to exclude any firm and/or partner which specifically had a conflict of interest on this matter." It also says that "in order to preserve the integrity of the process, the successful proponent will be required to sign a Conflict of Interest and Full Disclosure Form." The unsuccessful applicants are not identified in the staff report.

Chapman is back in court tomorrow morning pursuing charges against 18 corporate donors to Di Ianni's campaign who allegedly gave more than the legal limit of $750 each.

Staff are estimating the cost of the audit at $24,170 plus tax. Their report will be considered at the city council meeting tomorrow, scheduled to take place sometime during the day after the meeting of the committee of the whole. The full report is available at
http://www.city.hamilton.on.ca/clerk/agendas-minutes-reports/
council/2005/Aug10/FCS05086%20Appointment%20of%20Auditors.pdf.