Horizon Ottawa audit finds possible election finance breaches

UPDATE: At a meeting on Aug. 28, 2024, the election compliance audit committee decided to launch legal proceedings against Horizon Ottawa.

Visitors to the nine-hour Horizonfest in September 2022 could 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's municipal election did 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 have helped the well-known lobby organization. 

In its external audit posted to the City of Ottawa's website this week, BDO Ottawa LLP wrote 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 in the donation jar "should have been returned or paid to the City Clerk."

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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 period and evidence financial records were not "appropriately maintained." 

Members of Horizon Ottawa formally 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. 

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 until after 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 CBC News 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 Ottawa would "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. 6 but the City of Ottawa said it has rescheduled it. The city did not provide the new date.