Horizon Ottawa audit finds possible election finance breaches - Action News
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Ottawa

Horizon Ottawa audit finds possible election finance breaches

An external auditor has found evidence the well-known progressive lobby organization Horizon Ottawa may have breached campaign rules for third-party advertisers, based on interviews and financial records from the 2022 municipal election.

Report points to improperly maintained financial records, ineligible expenses

A drone view of Ottawa City Hall downtown. The sky is sunny and the trees are green. The courtyard is relatively empty.
The City of Ottawa's independent election compliance audit committee will decide next Tuesday whether to move ahead with legal proceedings related to potential election rule breaches by third-party advertiser Horizon Ottawa. (Michel Aspirot/CBC)
  • UPDATEDAUG. 2, 2024: The Election Compliance Audit Committee meeting scheduled for next Tuesday has been cancelled, according to the City of Ottawa. It saidthe meeting will be rescheduled, but did not provide the date.

Visitors to the nine-hour Horizonfestin September 2022could show their support by dropping cash in a jar a simple act that an external auditor believes may have caused organizer Horizon Ottawa to breach its responsibilities under the Municipal Elections Act.

The event to showcase local music and introduce residents to progressive politicians ahead of the following month'smunicipal electiondid not turn a profit, leading Horizon Ottawa's lawyer to suggest last year that it can't be called a fundraiser.

The statement hardly seems to havehelped the well-known lobby organization.

In its external audit posted to the City of Ottawa's website this week,BDO Ottawa LLPwrote that since Horizon Ottawa's event didn't meet the criteria of a fundraiser, and since the group didn't keep records on the donations or issue receipts where necessary, the nearly $450 that ended up inthe donation jar"should have been returned or paid to the City Clerk."

Out of six criteria for the audit, the report suggested possible contraventions in three based on interviews and financial records.

Horizon Ottawa disputes the findings, which its board of directors notes are "apparent, not proven."

Several expenses questioned

Beyond the cash donations, BDO Ottawa LLP noted reimbursed expenses that were purchased outside of the recognized advertising periodand evidence financial records were not "appropriately maintained."

Members of Horizon Ottawaformally voted to register as a third-party advertiser for the last municipal election on Aug. 24, 2022.

A third-party advertiser can raise funds and run advertisements for or against a candidate. The advertising campaign period ended on Jan. 3, 2023.

A group of people sit in a circle in a public space with good natural light.
Horizon Ottawa's board, seen here in a meeting in 2023, said it will be defending itself at a meeting Aug. 6. (Submitted by Horizon Ottawa)

The complaint that sparked the audit related to concerns about advertising for Horizonfest before that period began.

But it was other expenses for the event that the auditor delved into, noting the cost of phone credits, a liquor license, stage rental and tarp were all made before Horizon Ottawa registered.

The costs totalled nearly $950.

Horizon Ottawa argued the items remain eligible expenses because they weren't used untilafter the campaign period had begun.

Organization disputes audit

The organization had originally planned to appeal last year's decision to move forward with an audit, but later dropped the effort.

It did not provide an interview to CBCNews on the latest report, but released a statement from its board.

"We note that the report does not conclusively respond to the original complaints," it said.

"We maintain that we have reported all our activities during the registered period, as required, and have been transparent and upfront through both the reporting and audit processes."

The statement went on to say that Horizon Ottawawould "defend" its actions at the next meeting of the independent election compliance audit committee.

At that meeting,the committee is set to consider the external auditor's report and decide whether to launch a legal proceeding against Horizon Ottawa. It was scheduled to be held on Aug. 6but the City of Ottawa said it has rescheduled it. The city did not provide the new date.