Ethics Commission
City and County of San Francisco

San Francisco Ethics Commission Audit Report: Alix Rosenthal for Supervisor, FPPC ID #1287650

I. Introduction

This Audit Report summarizes the audit results of the committee, Alix Rosenthal for Supervisor, Identification Number 1287650 (“the Committee”), for the period from January 1, 2006 through December 31, 2006.  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 section 1.100, et seq) (S.F. C&GC Code).

II. 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 along with other relevant documents to determine whether a committee complied with applicable requirements of State and local laws.  Section 1.150(a) of the CFRO requires the Commission to audit all candidates who receive public financing.

III. 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;
  6. Compliance with all provisions related to the Commission’s public financing program; and
  7. Any unexpended public funds that must be returned to the City up to the amount of public funds received by the candidate.

The Commission posts audit reports to its web site and, in cases of violations of law, forwards them to the appropriate enforcement agency.

IV. Committee Information

The Committee was formed in July 2006 to support the election of Alix Rosenthal to the Board of Supervisors, District 8 in the November 7, 2006 general election.  Amy Todd served as the treasurer.  The Committee received public funds.  The Committee was active as of December 31, 2006.

V. Audit Findings

For the period covered by the audit, the Committee received $35,044 in contributions and $32,004 of public funds, and incurred $66,876 in expenditures.  The CFRO provides that any candidate who receives public funds must return unexpended campaign funds to the City up to the amount of public funds received by the candidate (S.F. C&GC Code) § 1.148(d)).  The Committee did not have any unexpended funds. [1]

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

  1. The Committee used $26,602 or about 40% of campaign finances to reimburse the candidate for campaign-related expenditures made from the candidate’s personal funds in violation of California Government Code section 85201 and S.F. C&GC Code section 1.106.

Government Code section 85201 and S.F. C&GC Code section 1.106 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.

The Committee reimbursed the candidate for the following expenses:

Date per bank statements

Invoice Date(s)

Check No.

Description

Amount

8/21/06

08/05/06

1004

Reimbursement: campaign party supplies (8/5/06)

$560

10/10/06

08/11/06

1025

Reimbursement: registrar of voters

$419

10/10/06

07/21/06

1026

Reimbursement: letter heads, business cards and mailbox service

$2,229

10/10/06

9/14/06-9/29/06

1027

Reimbursement: printing stickers, flyers

$1,731

10/10/06

August-September

1029

Reimbursement: campaign dinners

$342

10/10/06

6/9/2006-9/13/06

1030

Reimbursement: printing labels and office supplies

$435

10/10/06

10/4/06-10/8/06

1032

Reimbursement: advertising, toner, mailing labels and stamps

$1,931

10/30/06

09/15/06

1042

Reimbursement: color printing from Howard Quinn Co.

$4,449

10/30/06

10/27/06

1034

Reimbursement: clipboards from Walgreens

$5

11/8/06

10/19/06

1045

Reimbursement: printing cost from Howard Quinn Co.

$4,991

11/8/06

10/27/06, 10/31/06

1046

Reimbursement: mailing, addressing, and labels

$3,384

1/29/07

10/27/06

1056

Reimbursement: four page tabloid, mailing and addressing from Howard Quinn Co.

$4,991

1/29/07

12/08/06

1057

Painting fee for the campaign office

$200

2/20/07

11/06/06

1059

Reimbursement: radio Ad 92.7

$924

4/23/07

04/08/07

1061

Reimbursement: campaign expenses

$11

     

Total

   

$26,602

  1. The Committee failed to accrue $6,691 or about 10% of expenses, in violation of Government Code section 84211 and S.F. C&GC Code section 1.106.

Government Code Section 84211, which is incorporated into local law by S.F. C&GCC §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.

The details of the expenses not accrued are as follows:

Invoice Date(s)

Check No.

Payee

Description

Total of Expenditures Not Accrued

Period during which expenditure

should have been reported

was reported

10/30/06

1055

Rick Galbreath

Campaign manager salary (10/16-10/23/06)

$1,500

10/22/06-12/31/06

1/1/07-7/31/07

10/27/06

1056

Alix Rosenthal

Reimbursement: 4 page tabloid, mailing and addressing from Howard Quinn Co.

$4,991

10/22/06-12/31/06

1/1/07-7/31/07

12/08/06

1057

Alix Rosenthal

Painting fee for the campaign office

$200

10/22/06-12/31/06

1/1/07-7/31/07

       

Total

   

 $6,691

 
  1. The Committee did not disclose sub vendor information totaling $9,451 or about 14%, in violation of Government Code section 84211.

Government Code section 84211 requires a committee to itemize payments of $500 or more made on the committee’s behalf by an agent or independent contractor (also known as sub vendor payments) during the period covered by the campaign statement by providing the name, street address, the amount of each expenditure, and a brief description of the consideration for which each expenditure was made.

The following sub vendor information was not disclosed:

Check No.

Payee

Description

Payee

Amount

Invoice date  of agent-made payment

1003

 Rick Galbreath

Reimbursement: office supplies, stamps and security deposit for street sign

City and County of SF

$500

07/28/06

1026

Alix Rosenthal

Reimbursement: letter heads, business cards and mailbox service

Inkworks Press Inc.

$2,229

7/21/06

1027

Alix Rosenthal

Reimbursement: printing stickers, flyers

Accurate Printing, Spotlight Design & Printing

$1,731

9/14/06-9/29/06

1056

Alix Rosenthal

Reimbursement: 4 page tabloid, mailing and addressing from Howard Quinn Co.

Howard Quinn Co.

$4,991

10/27/06

      

Total 

   

$9,451

 

VI. Committee’s Response to Finding:

The Committee did not provide any comments on the audit report.

[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.

Was this page helpful?

Scan with a QR reader to access page:
QR Code to Access Page
https://sfethics.org/ethics/2008/03/san-francisco-ethics-commission-audit-report-alix-rosenthal-for-supervisor-fppc-id-1287650.html