Ethics Commission
City and County of San Francisco

San Francisco Ethics Commission Audit Report: Pascal for Supervisor, FPPC ID #1268650

  1. Introduction

    This Audit Report summarizes the audit
    results of the
    committee, Pascal for Supervisor 2004, Identification Number 1268650
    ("the Committee"), from January 1, 2004 through December 31,
    2005.  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") (San
    Francisco Campaign and Governmental Conduct Code § 1.100,et
    seq
    ).1

  2. Audit Authority

    San Francisco Charter section C3.699-11
    authorizes the
    Ethics Commission ("the 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 laws.

  3. Audit Scope and Procedures

    This audit was performed in accordance
    with generally
    accepted auditing standards.  The audit involved a review of
    the
    Committee's records for the period covered by the audit.  This
    review
    was conducted to determine:

    1. Compliance with all disclosure requirements pertaining
      to
      contributions, expenditures, accrued expenditures, and loans, including
      itemization when required;
    2. Compliance with applicable filing deadlines;
    3. Compliance with restrictions on contributions, loans,
      and expenditures;
    4. Accuracy of total reported receipts, disbursements, and
      cash balances as compared to bank records;
    5. Compliance with all record-keeping requirements; and
    6. Compliance with all provisions related to the
      Commission's public financing program.

    The Commission will post audit reports to its web site and, in cases of
    violations of law, forward it to the appropriate enforcement agency.

  4. Committee Information

    The Committee was formed in August 2004 to
    support the
    election of David Pascal to the Board of Supervisors, District 2 in the
    November 2, 2004 general election.  Paul Hayward served as the
    treasurer.  The Committee received public funds for the Pascal
    for
    Supervisor 2004 election campaign.  The Committee's filing
    obligations
    were completed on June 30, 2006.

  5. Audit Findings

    For the period covered by the audit, the
    Committee
    received $13,286 in contributions and $25,581 in public funds, and
    incurred expenditures of $38,839. The
    CFRO provides
    that any candidate who receives public funds must return unexpended
    campaign funds to the Election Campaign Fund.  The Commission
    determined that the Committee had unexpended funds of $28, which the
    Committee has returned to the Election Campaign Fund.2

    The Commission determined that there were four
    material findings with respect to the audit of the Committee, as
    follows:

    1. The Committee did not accrue expenses
      totaling $8,900 or
      about 23% of total expenditures, in violation of Government Code
      section 842

      Period
      expense should have been reported

      Period
      expense was reported

      Payee

      Description

      Amount

      07/01/04-09/30/04

      10/17/04-12/31/04

      Neighborhood Parks Council

      Event Program Advertisement

      $500

      10/01/04-10/16/04

      10/17/04-12/31/04

      Spotlight Printing

      Door Hangers

      $1,000

      10/01/04-10/16/04

      10/17/04-12/31/04

      Civic Actions

      Campaign Management, Voter ID, Data Management

      $4,000

      07/01/04-09/30/04

      10/17/04-12/31/04

      Muse Creative Services

      Campaign Management

      $3,000

      10/17/04-12/31/04

      01/01/05-06/30/05

      Civic Actions

      Campaign Management, Voter ID, Data Management

      $400

      Total

      $8,900

      Government Code section 84211(k), which is
      incorporated into local
      law by San Francisco Campaign and Governmental Conduct Code (S.F.
      C&GC Code) section 1.106, requires that committees report
      expenditures during the reporting period in which they were
      incurred. 
      Expenditures that are incurred in one reporting period but paid in a
      subsequent reporting period should be reported as "accrued
      expenditures" on the campaign statements covering the reporting period
      in which they were incurred.  Committees must report the name
      and
      address of each creditor owed $100 or more, a written description of
      the goods or services purchased, and the amount owed.

    2. The Committee used $2,400 of campaign
      funds to reimburse the
      candidate for campaign-related expenditures made from the candidate's
      personal funds, in violation of Government Code section 85201 and S.F.
      C&GC Code sections 1.106 and 1.108.

      Government Code section 85201 and S.F. C&GC
      Code sections 1.106
      and 1.108 require candidates to deposit personal funds into the
      campaign bank account and make expenditures from that account instead
      of spending personal funds on campaign expenses and later seeking
      reimbursement from campaign funds.

    3. The Committee did not file the required
      itemized disclosure
      statement for one mass mailing, in violation of S.F. C&GC Code
      section 1.161.  Upon notification of the non-filing, the
      Committee
      filed the required statement within two weeks.

      The Committee spent about $6,100 to send mass mailings
      to about
      20,000 households during October 2004.  The Committee filed
      the
      required itemized disclosure statement in April 2006.

      The Political Reform Act defines mass mailings as 200
      substantially
      similar pieces of mail sent within a calendar month.  Section
      1.161 of
      the CFRO requires any candidate seeking City elective office, who pays
      for a mass mailing that advocates for or against candidates to include
      on the mailing statement, "paid for by _____ (insert candidate's name
      and address)" in not less than 14-point type and in a color or print
      which contrasts with the background so as to be easily
      legible.  The
      candidate must also file with the Commission a clearly legible original
      or copy of the mass mailing and an itemized disclosure statement within
      five working days after the date of the mailing.

    4. The Committee did not maintain four
      invoices for
      expenditures totaling $6,597 or about 17% of total expenditures, in
      violation of Government Code section 84104.  The candidate
      notified the
      Commission that the Committee was unable to locate some of these
      vendors.

      Check Date

      Payee

      Description

      Amount

      09/16/04

      Stefan Jansson

      Donor and Voter Data

      $1,000

      09/22/04

      Ihsan Hammouri

      House Sign Graphic Design

      $500

      10/25/04

      DDMG

      Mail Service

      $1,228

      10/25/04

      US Postal Service

      Mail Postage

      $3,869

      Total

      $6,597

      Government Code section 84104 provides that it is the duty of each
      candidate, treasurer, and elected officer to maintain detailed
      accounts, records, bills, and receipts that are necessary to prepare
      campaign statements, and to retain the documents for a period of four
      years following the date the appropriate campaign statement is
      filed. 
      Section 84104 is incorporated into the Campaign Finance Reform
      Ordinance at S.F. C&GC Code section 1.106.

  6. Committee's Response to Findings

    The Committee was provided with an
    opportunity to comment on this audit report.  The Committee
    did not provide any comments.

1During
the period covered by the audit, Article 1, Chapter 3 of the San
Francisco Campaign and Governmental Conduct Code (S.F. C&GC
Code)
codified the Electronic Filing Ordinance.  As a result of
recent
amendments to CFRO, the provisions of the Electronic Filing Ordinance
are now combined in S.F. C&GC Code section 1.112.

2Unexpended
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 the 30th day following the date of the
election.

Was this page helpful?

:

*Required fields

Scan with a QR reader to access page:
QR Code to Access Page
https://sfethics.org/ethics/2006/07/san-francisco-ethics-commission-audit-report-pascal-for-supervisor-fppc-id-1268650.html