San Francisco Ethics Commission
30 Van Ness Avenue, Suite 3900
San Francisco CA 94102
Phone 581-2300 Fax 581-2317
SAN FRANCISCO ETHICS COMMISSION AUDIT REPORT:
SAN FRANCISCANS FOR A BETTER FUTURE (YES ON N & R)
I. Introduction
This Audit Report contains information pertaining to the audit of the committee, San Franciscans for a Better Future (Yes on N & R), Identification Number 1246756 (“the Committee”), for the period from January 1, 2002 through December 31, 2002. The audit was conducted to determine whether the Committee materially complied with the requirements and prohibitions imposed by the Political Reform Act (“the Act”) (California Government Code Section 81000, et seq.) and San Francisco’s Campaign Finance Reform Ordinance (“CFRO”) and Electronic Filing Ordinance (S.F. Campaign and Governmental Conduct Code Sections 1.100, et seq., and 1.300, et seq.).
For the period covered by the audit, the Committee received contributions of $3,350 and incurred expenditures of $3,173.09. There was one material finding with respect to this Audit: the Committee failed to file on a timely basis one Late Contribution Report, in violation of Government Code section 84203.
II. Committee Information
The Committee was formed to support the passage of Proposition R (Hope Initiative) and Proposition N (Care Not Cash Initiative) in the November 5, 2002 election. The Committee’s treasurer was Louise Bird. The Committee qualified as a committee on October 28, 2002.
III. Audit Authority
San Francisco Charter Section C3.699-11 authorizes the Ethics Commission to audit campaign statements that are filed with the Commission and other relevant documents to determine whether the committee complied with applicable requirements of State and local law. The Ethics Commission, by a random process, selected the Committee for audit.
IV. Audit Scope and Procedures
This audit was performed in accordance with generally accepted auditing standards. The audit involved a thorough review of the Committee’s records for the time period covered by the audit. This review was conducted to determine:
- Compliance with all disclosure requirements pertaining to contributions, expenditures, accrued expenditures, and loans, including itemization when required;
- Compliance with applicable filing deadlines;
- Compliance with restrictions on contributions, loans and expenditures;
- Accuracy of total reported receipts, disbursements and cash balances as compared to bank records;
- Compliance with all record-keeping requirements.
V. Summary of Applicable Law
Government Code Section 84203: Filing of Late Contribution Reports (Form 497)
“Late contribution” means any contribution, including a loan, which totals in the aggregate $1,000 or more that is made or received by a candidate, a controlled committee, or a committee formed or existing primarily to support or oppose a candidate or measure before the date of the election at which the candidate or measure is to be voted on but after the closing date of the last campaign statement required to be filed before the election. (Government Code Section 82036). The combined activities of affiliated entities shall be used to determine whether the $1,000 threshold is met or exceeded. (California Code of Regulations, Section 18428).
Late contributions must be reported within 24 hours of receipt by facsimile transmission, telegram, guaranteed overnight mail through the United States Postal Service or personal delivery. (Government Code Section 84203(b)). A candidate or committee that receives a late contribution must include on the Late Contribution Report: 1) the candidate or committee’s full name and street address; 2) the date and amount of the late contribution; and 3) the contributor’s name, street address, occupation, and employer, or if self-employed, the name of the business. Late Contribution Reports must be filed with each office with which the candidate or committee is regularly required to file campaign statements. (Government Code Section 84203(a)).
VI. Material Findings
Government Code Section 84203: Failure to Report Late Contributions for the General Election.
During the late reporting period for the November 5, 2002 election, the Committee received a $1,000 contribution from Harbour Properties LLC on October 28, 2002. The Committee was required to file a Late Contribution Report for this contribution by October 29, 2002. The Committee filed a Late Contribution Report for this contribution on April 28, 2004 after the Auditor informed the Committee that a Late Contribution Report had not been filed.
VII. Committee’s Response to Findings
The Committee was provided with an opportunity to review and comment on this audit report. The Committee did not provide any comments with respect to the above-referenced findings.
VIII. Conclusion
Through the examination of the Committee’s records and campaign disclosure statements, the Auditor found that the Committee failed to file on a timely basis one Late Contribution Report, in violation of Government Code section 84203.
Audit reports are posted to the Commission’s web site and in cases of a violation of law, are forwarded to the appropriate agency.
Date: May 7 2004