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:
LINNENBACH FOR SUPERVISOR
I. Introduction
This Audit Report summarizes the results of the audit of the committee, Linnenbach for Supervisor, Identification Number 1278059 (“the Committee”), for the period from January 1, 2004 through December 31, 2004. The audit was conducted to determine whether the Committee materially complied with the requirements of 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., respectively).
For the period covered by the audit, the Committee received $67,796 in contributions and $43,750 in public funds, and incurred expenditures of $108,887.16. The CFRO provides that any candidate who receives public funds must return unexpended campaign funds to the Election Campaign Fund up to the amount of public funds received by the candidate. The Commission staff determined that the Committee does not have unexpended funds and therefore is not required to return any money to the Election Campaign Fund.[1]
There were two material findings with respect to this Audit: (1) the Committee failed to itemize 22 contributions of $100 or more totaling $4,797, in violation of Government Code section 84211(f) and S. F. C&GC Code section 1.114(e); and (2) the Committee failed to itemize eight expenses of $100 or more totaling $15,976.32, in violation of Government Code section 84211(k) and S.F. C&GC Code section 1.106.
II. Committee Information
The Committee was formed in August 2004 to support the election of Christine Linnenbach to Member, Board of Supervisors District 7 in the November 2, 2004 general election. Carlton Linnenbach is the Committee’s treasurer. The Committee received public funds for Christine Linnenbach’s 2004 supervisorial election campaign.
III. Audit Authority
San Francisco Charter Section C3.699-11 authorizes the Ethics Commission to audit campaign statements that are filed with the Commission. Section 1.150(a) of the CFRO requires the Commission to audit all candidates who receive public financing. Audits of publicly financed candidates include a review of campaign statements and other relevant documents to determine whether the candidate complied with applicable requirements of State and local law.
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 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; and
- Compliance with all provisions related to the Commission’s public financing program.
V. Summary of Applicable Law
Government Code Section 84211(f) and S. F. Campaign and Governmental Conduct Code
Section 1.114(e): Reporting Contributions of $100 or More
Government Code section 84211(f) provides that if the cumulative amount of contributions (including loans) received from a person is $100 or more, the recipient’s campaign statements must provide the contributor’s full name, street address, occupation, and the name of his/her employer (name of business if self-employed); the date and amount of each contribution received from the contributor during the reporting period; and the cumulative amount of contributions received from the contributor during the calendar year. S.F. C&GCC section 1.114(e) prohibits the deposit of any contribution of $100 or more unless the contribution has the required information. A committee will be deemed not to have had the required contributor information at the time the contribution was deposited if the required contributor information is not reported on the first campaign statement on which the contribution is required to be reported. Contributions that are deposited without the required contributor information must be forfeited to the City, in addition to any other penalties. The amount that is subject to forfeiture is the amount that exceeds the first $99.99 of a contributor’s contribution; i.e., on a $100 contribution that lacks the required contributor information, the amount subject to forfeiture is one cent. C&GCC
§ 1.114(f).
Government Code Section 84211(k) and S. F. Campaign and Governmental Conduct Code Section 1.106: Requirement to Disclose Each Expenditure of $100 or More
Government Code section 84211(k) states that for each person to whom an expenditure of $100 or more has been made during the period covered by the campaign statement, all of the following information must be obtained and reported on the campaign statement: (1) his or her full name; (2) his or her street address; (3) the amount of each expenditure; and (4) a brief description of the consideration for which each expenditure was made. Section 84211(k) is incorporated into the Campaign Finance Reform Ordinance at S.F. C&GC Code section 1.106.
VI. Material Findings
Government Code Section 84211(f) and S. F. Campaign and Governmental Conduct Code
Section 1.114(e): Reporting Contributions of $100 or More
The Committee was required to itemize contributions of $100 or more. The Committee itemized 120 contributions totaling $23,525, but failed to itemize 22 contributions of $100 or more totaling $4,797. Contributions that the Committee failed to itemize are listed below, as follows:
| Last Name | Reporting Period | Contribution Amount | Forfeiture |
|---|---|---|---|
| Ronald A Viner | 1/1-9/30/04 | $ 100.00 | $ 0.01 |
| Mi. Myerson | 1/1-9/30/04 | $ 100.00 | $ 0.01 |
| Charles J. Berger, M.D. | 1/1-9/30/04 | $ 100.00 | $ 0.01 |
| Walter E. Paully and Ethyl C. Paully Trust | 1/1-9/30/04 | $ 100.00 | $ 0.01 |
| Xavier O. Barrios, M.D. | 1/1-9/30/04 | $ 250.00 | $ 150.01 |
| Cecile Chiquette | 1/1-9/30/04 | $ 500.00 | $ 400.01 |
| Mary Gallagher | 1/1-9/30/04 | $ 500.00 | $ 400.01 |
| Robert W, Rickard | 1/1-9/30/04 | $ 100.00 | $ 0.01 |
| CAL Insurance & Associates, Inc. | 1/1-9/30/04 | $ 200.00 | $ 100.01 |
| Ursula Marsten | 1/1-9/30/04 | $ 250.00 | $ 150.01 |
| David P. Millett M.D. | 10/1-10/16/04 | $ 200.00 | $ 100.01 |
| Herman D. Papa, Attorney at Law | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Clinton Reilly | 10/17-12/31/04 | $ 500.00 | $ 400.01 |
| Gisela Brugger TTEE | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Walgreens | 10/17-12/31/04 | $ 500.00 | $ 400.01 |
| Elisabeth Zaenglein | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Richard Granzella | 10/17-12/31/04 | $ 150.00 | $ 50.01 |
| Mi. Myerson | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Walter E. Paully and Ethyl C. Paully Trust | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Samuel M. Sobol, M.D. | 10/17-12/31/04 | $ 100.00 | $ 0.01 |
| Law Office of John F. Prentice & Associates | 1/1-9/30/04 | $ 500.00 | $ 400.01 |
| Fred Schoenhalz | 1/1-9/30/04 | $ 147.00 | $ 47.01 |
| Total | $ 4,797.00 | $ 2,597.22 |
Contributions that are deposited without first obtaining the required contributor information must be forfeited to the City, in addition to any other penalties. The Committee is required to forfeit $2,597.22 in contributions.
When the candidate learned that the above referenced information was not reported on the campaign statements, she immediately amended the campaign statements to provide the required information. Section 1.114(f) provides that the committee will be deemed not to have had the required contributor information at the time the contribution was deposited if the required contributor information is not reported on the first campaign statement on which the contribution is required to be reported.
Government Code Section 84211(k) and S.F. Campaign and Governmental Conduct Code Section 1.106: Requirement to Disclose Each Expense of $100 or More
During the period covered by the audit, the Committee incurred eight expenditures of $100 or more totaling $15,976.32 that were not itemized on the Committee’s campaign statements.
| Date per check register | Check No. | Payee | Payments |
|---|---|---|---|
| 08/17/04 | Wells Fargo | 135.75 | |
| 10/04/04 | 1015 | Lowell High | 720.00 |
| 09/19/04 | 1018 | Autumn Press | 500.00 |
| 09/20/04 | Wells Fargo | 175.00 | |
| 09/25/04 | 1027 | Kinko's | 173.60 |
| 10/21/04 | 1056 | Autumn Press | 6,324.09 |
| 10/28/04 | Bank debit | Postal Systems Inc. | 2,927.00 |
| 10/28/04 | 1073 | Autumn Press | 5,020.88 |
| 15,976.32 |
The Committee’s failure to itemize the eight expenses totaling $15,976.32, which represents 14 percent of total expenses, violates Government Code section 84211(k) and S. F. C&GCC section 1.106.
When the candidate learned that the above referenced information was not reported on the campaign statements, she immediately amended the campaign statements to provide the required information.
VII. Committee’s Response to Findings
The Committee was provided with an opportunity to review and comment on this audit report.
The candidate, Ms. Linnenbach, provided the following comments:
The campaign records indicate that all information and entries were properly and timely made; these entries were not recorded by the City’s internet on-line filing system. We look forward to providing input to the City to help make the on-line filing system more user-friendly for future elections.
VIII. Conclusion
Through the examination of the Committee’s records and campaign disclosure statements, the auditor identified two material findings: (1) the Committee failed to itemize 22 contributions of $100 or more totaling $4,797, in violation of Government Code section 84211(f) and S. F. C&GC Code section 1.114(e); and (2) the Committee failed to itemize eight expenses of $100 or more totaling $15,976.32, in violation of Government Code section 84211(k) and S.F. C&GC Code section 1.106.
Audit reports are posted to the Commission’s web site and are forwarded to the members of the Ethics Commission and, in cases of a violation of law, to the appropriate enforcement agency.
Date: September 15, 2005
[1] Unexpended funds are calculated by subtracting any unpaid bills, on-going qualified campaign expenditures and forfeitures from the amount of cash that the Committee had on hand on the 30th day following the election in which the candidate was elected or defeated.