Ethics Commission
City and County of San Francisco

San Francisco Ethics Commission Audit Report: Yes on Proposition A, Let’s Rebuild San Francisco’s Schools, FPPC ID #1290214

I. Introduction

This Audit Report summarizes the audit results of the committee, Yes on Proposition A, Let’s Rebuild San Francisco’s Schools, Identification Number 1290214 (“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.  The Commission randomly selected the Committee for audit.

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.

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 June 2006 to support the passage of ballot Proposition A, Let’s Rebuild San Francisco’s Schools in the November 7, 2006 general election.  Phillip Halperin served as the treasurer.  The Committee was active as of December 31, 2006.

V. Audit Findings

For the period covered by the audit, the Committee received $460,200 in contributions and incurred $397,296 in expenditures. 

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

  1. The Committee did not disclose sub vendor information in 43 instances, totaling $198,011 or about 50% of total expenditures, 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 details of the sub vendor information are as follows:

    Invoice Date(s)PayeeSub vendorDescriptionAmount
    9/8/06Barnes MosherCarico Smith DesignArtwork for campaign signs$1,000
    9/8/06Barnes MosherKirk Briggs Signs, Inc.Sign production$22,980
    10/2/06Barnes MosherDavid Binder ResearchTelephone polling$17,500
    10/5 & 10/7/06Barnes MosherCarico Smith DesignArtwork for campaign signs$860
    10/5 & 10/7/06Barnes MosherCommonwealth CommunicationsPrinting$16,325
    10/5 & 10/7/06Barnes MosherPrecise Mailing Inc.Mail house$5,580
    10/5 & 10/7/06Barnes MosherComputerized Political ServicesData$3,730
    10/5 & 10/7/06Barnes MosherLisa HansonProduction$750
    10/5 & 10/7/06Barnes MosherPrecise Mailing Inc.Postage$19,900
    10/5 & 10/7/06Barnes MosherGraham WalkerWebsite Yes on A$1,900
    10/7/06Barnes MosherGraham WalkerWebsite Yes on A$1,900
    10/6/06Barnes MosherCarico Smith DesignArtwork for door hangers$1,380
    10/6/06Barnes MosherAutumn PressPrinting$5,881
    10/6/06Barnes MosherLisa HansonProduction of door hangers$500
    10/6/06Barnes MosherAutumn PressPrinting flyers$550
    9/29/06Barnes MosherCarico Smith DesignArtwork for letterhead$1,080
    9/29/06Barnes MosherAutumn PressPrinting for letterhead$1,475
    9/29/06Barnes MosherComputerized Political ServicesData$3,300
    9/29/06Barnes MosherCarico Smith DesignArtwork for campaign logo$1,400
    9/29/06Barnes MosherAlice B. Toklas ClubSlate card mailer$500
    9/29/06Barnes MosherSan Francisco Democratic PartySlate card mailer$1,000
    10/18/06Barnes MosherNavigate 9Artwork for direct mailer$3,500
    10/18/06Barnes MosherCommonwealth CommunicationsPrinting for direct mailer$1,500
    10/18/06Barnes MosherPrecise Mailing Inc.Mail house$5,435
    10/18/06Barnes MosherComputerized Political ServicesData$2,993
    10/18/06Barnes MosherLisa HansonProduction for direct mailer$750
    10/18/06Barnes MosherPrecise Mailing Inc.Postage for direct mailer$20,594
    10/25/06Barnes MosherCarico Smith DesignArtwork for direct mailer$2,530
    10/25/06Barnes MosherCommonwealth CommunicationsPrinting for direct mailer$9,974
    10/25/06Barnes MosherPrecise Mailing Inc.Mail house$3,517
    10/25/06Barnes MosherLisa HansonPostage$14,925
    10/28/06Barnes MosherNavigate 9Artwork  for print advertisement$3,508
    10/28/06Barnes MosherCarico Smith DesignArtwork for Chinese mailer$1,380
    10/28/06Barnes MosherAutumn PressPrinting for Chinese mailer$3,995
    10/28/06Barnes MosherPrecise Mailing Inc.Mail house for Chinese mailer$1,435
    10/28/06Barnes MosherComputerized Political ServicesData for Chinese mailer$837
    10/28/06Barnes MosherLisa HansonProduction of Chinese mailer$750
    10/28/06Barnes MosherPrecise Mailing Inc.Postage$5,174
    10/31/06Barnes MosherCarico Smith DesignArtwork for Argonaut$1,000
    10/31/06Barnes MosherThe ArgonautAd for Argonaut$2,835
    11/1/06Barnes MosherNoe Valley Democratic ClubSlate card mailer$500
    11/1/06Barnes MosherAsian Pacific Democratic ClubSlate card mailer$500
    11/1/06Barnes MosherAccurate PrintingStickers for slate card mailer$884
      
     Total$198,011
  2. The Committee did not disclose full contributor information for five contributions of $100 or more, totaling $27,500 or about 6% of contributions, in violation of Government Code section 84211(f) and S.F. C&GC Code sections 1.106 and 1.114.

    Government Code section 84211(f) and S.F C&GC Code section 1.106 provide that if the cumulative amount of contributions (including loans) received from a person is $100 or more, the recipient’s campaign statements must provide the contributor’s full name, street address, occupation, and the name of his/her employer (name of business if self-employed); the date and amount of each contribution received from the contributor during the reporting period; and the cumulative amount of contributions received from the contributor during the calendar year.

    Prior to depositing contributions totaling $100 or more, committees must obtain the contributor’s full name, street address, occupation, and the name of the contributor’s employer, or if the contributor is self-employed, the name of the contributor’s business (S.F. C&GC Code 1.114(e)).  A committee is deemed not to have had the required contributor information at the time the contribution was deposited if the required contributor information is not reported on the first campaign statement on which the contribution is required to be reported.  Contributions that do not comply with the requirements of or that exceed the limits imposed by section 1.114 must be forfeited to the City (S.F. C&GC Code Section 1.114(f)). 

    The following contributions were not reported with complete contributor information on the first campaign statement on which the contributions were required to be reported:

    ContributorContribution DateReason for ForfeitureContribution Amount
    Abbey, Douglas10/20/06No employer information$1,000
    Azzani, Eunice12/19/06No street address$1,500
    Decker, Suzanne10/12/06No employer information$10,000
    Fried, Richard9/26/06No employer information$5,000
    Swig, Roselyn10/2/06No employer information$10,000
        
    Total  $27,500
  3. The Committee did not timely report five contributions, totaling $79,500 or about 17% of contributions, in violation of Government Code section 84211.

    Government Code section 84211(a) requires a committee to report the total amount of contributions received during the period covered by the campaign statement and the total cumulative amount of contributions received.

    The details of the contributions are as follows:

    ContributorDate deposited into bank accountAmountPeriod contribution should have been reportedPeriod contribution was reported
    Hellman, Warren9/29/06$49,5007/1/06 – 9/30/0610/1/06 – 10/21/06
    Lazarus, Michael9/29/06$5,0007/1/06 – 9/30/0610/1/06 – 10/21/06
    Swig, Roselyn C.9/29/06$10,0007/1/06 – 9/30/0610/1/06 – 10/21/06
    Emery, Robert9/29/06$5,0007/1/06 – 9/30/0610/1/06 – 10/21/06
    Osterweis, Jon9/29/06$10,0007/1/06 – 9/30/0610/1/06 – 10/21/06
         
    Total $79,500  
  4. VI. Committee’s Response to Finding:

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

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