Ethics Commission
City and County of San Francisco

San Francisco Ethics Commission Audit Report: Dan Kalb For Supervisor 5, FPPC ID #1265026

  1. Introduction

    This Audit Report summarizes the audit
    results of the
    committee, Dan Kalb for Supervisor 5, Identification Number 1265026
    (“the Committee”), from January 1, 2004 through June 30,
    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 April 2004 to support the election of Dan
    Kalb to the Board of Supervisors, District 5 in the November 2, 2004
    general election.  David Looman served as the
    treasurer.  The Committee
    received public funds for the Dan Kalb for Supervisor 5 election
    campaign.  The Committee’s filing obligations were completed
    on June
    30, 2005.

  5. Audit Findings

    For the period covered by the audit, the
    Committee
    received $39,466 in contributions and $26,139 in public
    funds.  The
    Committee incurred expenditures of $65,605. 
    The CFRO
    provides that any candidate who receives public funds must return
    unexpended campaign funds to the Election Campaign Fund.  The
    Committee
    did not have any unexpended funds.2

    The Commission determined that there was one material
    finding
    with respect to the audit of the Committee.  The Committee did
    not
    accrue expenses totaling $16,095 or about 25% of total expenditures, in
    violation of Government Code section 84211, as follows:

    Period during
    which expense should have been reported

    Period during
    which expense was reported

    Payee

    Description

    Amount

             

    01/01/04-06/30/04

    07/01/04-09/30/04

    Graffik Natwicks

    5,000 campaign pieces

    $294

    07/01/04-09/30/04

    10/01/04-10/16/04

    SF Observer

    September and October advertisement

    $480

    07/01/04-09/30/04

    10/01/04-10/16/04

    Looman Associates

    August/September consulting services

    $800

    07/01/04-09/30/04

    10/01/04-10/16/04

    Graffik Natwicks

    800 flyers

    $392

    01/01/04-06/30/04

    10/01/04-10/16/04

    Spotlight Design and Printing

    Printing

    $760

    10/01/04-10/16/04

    10/17/04-12/31/04

    Direct Mail Center

    Mail services

    $1,000

    10/01/04-10/16/04

    10/17/04-12/31/04

    Direct Mail Center

    Mail services

    $500

    10/01/04-10/16/04

    10/17/04-12/31/04

    Direct Mail Center

    Mail services

    $700

    10/01/04-10/16/04

    10/17/04-12/31/04

    Turing Studio

    Film/video production services

    $1,400

    10/01/04-10/16/04

    10/17/04-12/31/04

    Political Movers & Shakers

    "See Dan Run" DVD production

    $506

    07/01/04-09/30/04

    10/17/04-12/31/04

    Graffik Natwicks

    5,000 envelopes

    $580

    10/01/04-10/16/04

    10/17/04-12/31/04

    Shebops Productions

    Production of "See Dan Run" campaign DVD

    $1,000

    10/01/04-10/16/04

    10/17/04-12/31/04

    Put IT on Disk

    DVD production

    $1,784

    10/01/04-10/16/04

    10/17/04-12/31/04

    Shebops Productions

    Production of "See Dan Run" campaign DVD

    $2,000

    10/01/04-10/16/04

    10/17/04-12/31/04

    Turing Studio

    Film/video production services

    $500

    10/01/04-10/16/04

    10/17/04-12/31/04

    Put IT on Disk

    DVD production

    $1,000

    10/01/04-10/16/04

    10/17/04-12/31/04

    Kesler Creative Communications

    DVD and sleeve and flyer/mailer

    $796

    10/01/04-10/16/04

    01/01/05-06/30/05

    Put IT on Disk

    DVD production

    $1,500

    10/17/04-12/31/04

    01/01/05-06/30/05

    Political Movers & Shakers

    DVD envelopes/labels

    $104

             
         

    Total

    $16,095

    Government Code section 84211(k), which is incorporated
    into local
    law by S.F. C&GC Code section 1.106, requires that costs
    incurred
    by a committee, but not paid during the reporting period, be reported
    as “accrued expenditures.”  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.

  6. Committee’s Response to Findings

    The Treasurer, David Looman provided the
    following
    comments: “We disagree with the findings.  We carried our
    accruals. 
    Invoices were posted as received.”

(1)
During 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.

(2)
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 the 30th day following the
date of the election.

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