City and County of San Francisco
Ethics Commission

English

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.”