City and County of San Francisco
Ethics Commission

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.

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.

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.

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.

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:

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.

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.”