I. Introduction
This Audit Report summarizes the audit results of the committee, Latino Democratic Club San Francisco, Identification Number 1342652 (“the Committee”), from January 1, 2012 through December 31, 2013. 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).
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 the committee complied with applicable requirements of State and local laws.
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:
- Compliance with all disclosure requirements pertaining to contributions, expenditures, accrued expenditures, and loans, including itemization when required;
- Compliance with applicable filing deadlines;
- Compliance with restrictions on contributions, loans, and expenditures;
- Accuracy of total reported receipts, disbursements, and cash balances as compared to bank records; and
- Compliance with all record-keeping requirements.
The Commission posts audit reports to its web site and, in cases of apparent violations of law, forwards them to the appropriate enforcement agency.
IV. Committee Information
The Committee was formed on October 15, 2011 to support and advance Latino issues and candidates in San Francisco. During the period covered by the audit, the Committee’s treasurer was Patricia Melgarejo. The Committee remains open as of the date of this report.
V. Audit Findings
For the period from January 1, 2012 through December 31, 2013 the Committee received $17,665 in contributions and incurred $12,254 in expenditures.
The Commission determined that there was one material finding with respect to the audit of the Committee:
The Committee failed to itemize contributions of $100 or more totaling $10,275, or 58 percent of the total amount of contributions received by the Committee, in violation of S.F. C&GC Code section 1.114(e).
Government Code Section 84211(f) and S.F. Campaign Governmental Conduct Code (C&GC Code) Section 1.114(e): Reporting of Contributions that Total $100 or More
Government Code section 84211(f) requires a committee to report detailed information about a contributor when such contributor has cumulatively donated $100 or more in a calendar year. Specifically, a committee must disclose the following information: the contributor’s full name, his/her street address, his/her occupation, the name of his/her employer, the date and amount received for each contribution, and the cumulative amount of contributions.
S.F. C&GC Code section 1.114(e) requires a committee to obtain and disclose the following information for any contribution that equals or exceeds $100 from a single person: the contributor’s full name, the contributor’s street address, the contributor’s occupation, and the name of the contributor’s employer or, if the contributor is self-employed, the name of the contributor’s business. A committee will be deemed not to have had the required contributor information at the time the contribution was deposited if the required contributor’s information is not reported on the first campaign statement on which the contribution is required to be reported.
The Committee failed to itemize contributions of $100 or more totaling $10,275, or 58 percent of the total amount of contributions received. See Table I. The Committee incorrectly reported the $10,275 in contributions as itemized entries that lumped several contributions into one amount, which did not provide any details about each contributor’s name, address, or amount of contribution.
Of the $10,275 amount, $7,470.25 or 42 percent of total contributions was incorrectly reported as lump sum amounts on Schedule I Miscellaneous Increases to Cash of FPPC Form 460. The Committee should have reported these contributions on Schedule A Monetary Contributions of FPPC Form 460. The former treasurer, Patricia Melgarejo, amended the Committee’s campaign statements to properly report the contributions listed in Table I below after she was informed of this audit finding.
Table I: Contributions of $100 or more that were not properly itemized by the Committee on Schedule A Monetary Contributions of FPPC Form 460.
| Date received | Contributor name | Amount of contribution | Notes |
|---|---|---|---|
| 1/23/2013 | Myrna Megar Iton | $250 | This contribution was incorrectly reported on Schedule A for period covering 1/1/2013-3/31/2013 as a lump sum amount of membership dues |
| 9/17/2013 | Myrna Melgar Iton | $1,000 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 3/1/2013 | Rosales Law Partners LLP | $100 | This contribution was incorrectly reported as part of lump sum amount of membership dues on Schedule A covering period 1/1/2013-3/31/2013 |
| 3/25/2013 | Figueroa Balompie Inc | $100 | This contribution was incorrectly reported on Schedule A for period covering 1/1/2013-3/31/2013 as a lump sum amount of membership dues |
| 1/1/2013 | Matteo Garbelotto | $100 | This contribution was incorrectly reported on Schedule A for period covering 1/1/2013-3/31/2013 as a lump sum amount of membership dues |
| 12/16/2013 | Rubecon | $150 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 11/20/2013 | Leon Construction, Inc | $100 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 9/19/2013 | Leon Construction, Inc | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 11/18/2013 | Puerto Alegre No.1 | $100 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 3/21/2013 | Puerto Alegre No. 1 | 100 | This contribution was incorrectly reported on Schedule A for period covering 1/1/2013-3/31/2013 as a lump sum amount of membership dues |
| 12/18/2013 | Barbara B Lopez | $125 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 12/18/2013 | Joseph M Torres | $100 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 12/18/2013 | Alan Martinez | $100 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 4/17/2013 | Alan Martinez | 100 | This contribution was incorrectly reported on Schedule A for period covering 4/1/2013-6/30/2013 as a lump sum amount of membership dues |
| 9/12/2013 | Amalgamated Transit Union Local 1555 | $200 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/16/2013 | James B. MORALES | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/9/2013 | Virginia Dario Elizondo | $100 | This contribution was incorrectly reported on Schedule A for period covering 7/1/2013-9/21/2013 as a lump sum amount of membership dues |
| 8/31/2013 | Erikc Arguello | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/19/2013) |
| 9/10/2013 | Re-elect Supervisor David Chiu | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/19/2013) |
| 8/27/2013 | David Looman | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/19/2013) |
| 9/2/2013 | Dennis Kelly | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/19/2013) |
| 9/19/2013 | Jon L Ballesteros | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/20/2013 | Alicia Becerril | $200 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/16/2013 | Miguel Galarza | $500 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Barbara B Lopez | $50 | This (check #360, check date 9/19/13) contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Barbara B Lopez | $50 | This (cash) contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Susana D Razo | $300 | This (cash) contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Susana D Razo | $300 | This (check #120, check date 9/19/13) contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Agonafer Shiferaw | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/19/2013 | Carl L Williams | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/20/2013 | Jo-Theresa Elias- Jackson | $100 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 10/16/2013 | Randy Riddle | $500 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (10/02/2013) |
| 9/25/2013 | National Association of Minority Contractors Northern California | $500 | This contribution was incorrectly reported on Schedule A for period covering 9/22/2013-10/19/2013 as a lump sum amount of membership dues |
| 11/1/2013 | Sheet Metal Workers’ International Association Local Union 104 | $150 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 9/21/2013 | Jose Torres | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/21/2013 | Moninder Birdi | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/21/2013 | Ross Mirkarimi | $250 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 9/21/2013 | Laborers Union Local 261 | $500 | This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013) |
| 10/30/2013 | 706 Mission Sdtreet Co LLC | $2,000 | This contribution was incorrectly reported on Schedule A for period covering 10/20/2013-12/31/2013 as a lump sum amount of membership dues |
| 9/19/2013 | Gabriel Medina | 50 | The Committee received cumulatively $100 from this contributor as of 9/19/2013 .This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013). |
| 11/1/2013 | Roberto Hernanaez | 50 | The Committee received cumulatively $100 from this contributor as of 9/19/2013 .This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013). |
| 11/27/2013 | Christina Olague | 50 | The Committee received cumulatively $100 from this contributor as of 9/19/2013 .This contribution was incorrectly reported on Schedule I as part of a lump sum amount received at LDC Fundraiser Event (9/23/2013). |
| Total | $10,275 |
VI. Committee’s Response to Finding:
The Committee provided the following comments with respect to the audit finding:
The former treasurer, Patricia Melgarejo, stated that she was on leave around December 2013 and a person who performed the duties of the treasurer at that time did not have sufficient documentation to itemize the contributions until early 2014.
Ms. Melgarejo also stated that she did not receive copies of checks or lists of contributors for some fundraising events until the end of December 2013 due to a change in the club’s leadership, which was not a smooth transition.