MR. HAHN'S INITIAL FINANCIAL STATEMENT

As per the Forensic Audit of August 11. 2015:

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paragraph 1.19 : "Subsection 67(1) of the Act states that "costs incurred for goods and services by or on behalf of a person wholly or partly for use in his or her election campaign are expenses".

1.20 : "Item 2 of subsection 67(2) sets out amounts that are expenses, and campaign expenses include "the value of contributions of goods and services". Accordingly, any contribution of goods or services is also a campaign expense of the same amount."

2.2 : "Scott Hahn's family assisted his campaign by arranging for the purchase of 200 signs from a third party printing company and printing 3,000 brochures from a business owned by his in-laws. The signs and brochures were at no cost to him or his campaign. No receipts or documentation were provided to Scott at the time, and he advises that he was told several times by family members and his in-laws that there was no cost (to him) for the signs or for the brochures.".

2.5 : "Mr. Hahn acknowledged to MECAC at its' May 4, 2015 meeting that he omitted including the cost of signs and brochures in the Financial Statement and he acknowledges that he failed to obtain a sufficient understanding of the Act or related guidance during the election campaign and in the preparation of the Financial Statement. He advised MECAC that the total costs were $2,883.76, with the cost of brochures being $962.76. with the cost split equally between his father-in-law, Dale Martin, and his sister-in-law, Laci Martin. He advised MECAC that the cost of the signs was $1,921.00, split equally between his parents, Katherine and Michael Hahn, and his sister, Cassandra Hahn ($643.33 each)."

2.6 : "Scott Hahn provided MECAC with invoices supporting the sign and flyer costs for its May 11, 2015 meeting. The invoices totalled $2,714.26, the difference from the earlier estimated cost being the cost of signs. He obtained these invoices from his parents and in-laws in early May 2015. He advised that his parents had been away when he had attended the May 4, 2014 meeting and the amounts he provided verbally were based on what they had told him versus the invoices."

2.7 : "The issues with the initial Financial Statement relate to unrecorded expenses and contributions that are not reflected in the Financial Statement, as required by the Act. The issues become more complex once documentation for the signs and the brochures was produced, along with the amended Financial Statement."


Apparent Contraventions - Initial Financial Statement

2.8 : "We identified the following apparent contraventions in relation to the initial Financial Statement:

1) Failure to value all contributions of goods and services in relation to the contributions in kind of signs and brochures (69)(1)(d);

2) Failure to obtain receipts for every expense and issue receipts for every contribution (69)(1)(e), (f) and (g);

3) Failure to prepare financial statements in accordance with sections 78 and 79.1 in relation to the inclusion of all expenses and all contributions; and

4) Failure to provide proper direction to persons authorized to incur expenses on behalf of the campaign (69)(1)(1).".

Scott Hahn's initial Financial Statement can best be described as awful. He claimed a grand total of $328 and totally ignored the fact that he had $3,000 in expenses when he included his signs and brochures. Then he produced receipts that could not be substantiated in regards to his mother, father and sister regarding his election signs. It is of interest that these unsubstantiated receipts avoid the further problematic and legal issue of an overcontribution by a corporate entity ie. his father's company.