Ethics Commission
City and County of San Francisco

San Francisco Ethics Commission Audit Report: Latino Democratic Club San Francisco, FPPC ID #1342652

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:

  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; and
  5. 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.

Was this page helpful?

:

*Required fields

Scan with a QR reader to access page:
QR Code to Access Page
https://sfethics.org/ethics/2015/06/san-francisco-ethics-commission-audit-report-latino-democratic-club-san-francisco-fppc-id-1342652.html