How To File Your Financial Statement
As a municipal council or school board election candidate, it's essential to understand your responsibilities when completing and filing your financial statement.
How To File Your Financial Statement
First and foremost, all candidates must file a financial statement using Form 4. This includes candidates who withdrew their nomination, weren't certified, didn't appear on the ballot, and were acclaimed.
To complete your financial statement, you'll need to fill in Box A with your name and the office you're running for, as well as Box B, the Declaration. If you didn't receive any contributions (including from yourself) or incur any expenses, you'll just need to check the appropriate box and complete the Declaration in Box B. If you did receive contributions or incur expenses, you'll need to fill out the information in Box C, Box D, Schedule 1, and Schedule 2 as appropriate. It might be helpful to start with the more detailed sections, like the tables in Schedule 1, before moving on to Box C, the Statement of Campaign Income and Expenses.
If your campaign contributions or expenses exceed $10,000, you'll need to include an auditor's report with your financial statement. Once you've completed your financial statement, it's essential to submit it to the clerk by 2 p.m. on the last Friday in March (March 31, 2023). If you need to submit any supplementary financial statements, they'll need to be submitted by 2 p.m. on the last Friday in September (September 29, 2023).
let's talk about leftover campaign inventory
Any leftover inventory at the end of your campaign becomes your personal property. If you want to store materials for use in a future election, any storage costs will be personal expenses, not campaign expenses. It's important to note that the value of all goods must be recorded as an expense, even if you have unused inventory at the end of your campaign. Don't subtract the value of unused goods from your campaign expenses, as this will result in the campaign appearing to have a surplus that you don't actually have.
If your campaign ends with a surplus after you've refunded contributions made by yourself or your spouse, you'll need to pay the surplus to the clerk when you file your financial statement. The surplus will be held in trust and can be used to cover expenses related to a compliance audit. If the surplus isn't needed for these expenses, it becomes the property of the municipality or school board. If your campaign expenses exceed your campaign income, your campaign will be in deficit. It's worth noting that ending your campaign with a deficit may raise questions about how expenses were paid for and whether you contributed more than your self-funding limit by paying outstanding expenses with personal funds.
Know Your Deadlines
As a candidate, it's your responsibility to file a complete and accurate financial statement on time. The deadline for filing is 2 p.m. on the last Friday in March following the election (March 31, 2023). Even if you have a bookkeeper or accountant complete your financial statement, you're still responsible for ensuring it's complete, accurate, and filed on time. Financial statements don't need to have original signatures. You can contact your clerk to see if you can file your statement electronically if you're unable to file it in person. If you filed a nomination form, you'll need to file a financial statement (regardless of whether you withdrew your nomination, were not certified or didn’t appear on the ballot).
If you think you'll be unable to file your financial statement by the deadline, you can apply to the Superior Court of Justice for an extension before March 31, 2023. If the court grants the extension, you'll be able to receive a refund of your nomination fee if you file by the deadline given by the court. There is also a grace period for filing, which allows you to file your financial statement after the deadline if you cannot file on time due to circumstances beyond your control. To qualify for the grace period, you'll need to file your financial statement within six months of the deadline and include a written explanation of the circumstances that prevented you from filing on time.
If you file your financial statement late, you'll be required to pay a late filing fee. The late filing fee is $500 if you file within six months of the deadline and $1,000 if you file after six months. If you don't file a financial statement or pay the late filing fee, you'll be disqualified from running in future elections until you've filed your financial statement and paid the late filing fee.
Track Your Contributions
If you didn't receive any contributions (including from yourself) or incur any expenses, you only need to fill out the first page of the financial statement and sign it. If you did receive contributions or incur expenses, you'll need to complete the relevant parts of the financial statement.
It's important to keep good records of your campaign contributions and expenses, as you'll need to provide them to the clerk when you file your financial statement. You can contact your clerk for more information if you have any questions about what needs to be included in your financial statement. It's also a good idea to review the Candidates' Guide, which provides detailed information about the rules and requirements for candidates in municipal council and school board elections.
And if you’re looking for more information, remember that you can always consult the Ontario 2022 Candidates’ Guide, which gives you all of the up to date information that you need.