Source: https://sfethics.org/ethics/2005/03/san-francisco-ethics-commission-audit-report-san-franciscans-for-affordable-clean-energy-yes-on-prop.html
Timestamp: 2019-04-18 10:37:44+00:00

Document:
This Audit Report contains information pertaining to the audit of the committee, San Franciscans for Affordable Clean Energy (Yes on Proposition D), Identification Number 1246425 (“the Committee”), for the period from January 1, 2002 through December 31, 2002. The audit was conducted to determine whether the Committee materially complied with the requirements and prohibitions imposed by the Political Reform Act (“the Act”) (California Government Code Section 81000, et seq.) and San Francisco’s Campaign Finance Reform Ordinance (“CFRO”) and Electronic Filing Ordinance (S.F. Campaign and Governmental Conduct Code (“C&GC Code”) §§ 1.100, et seq., and 1.300, et seq., respectively).
§ 1.114(d); and (4) the Committee failed to itemize 36 contributions of $100 or more totaling $19,761 in violation of C&GC Code § 1.106 and Government Code § 84211(f).
The Committee was formed to Support Proposition D – Energy Self-Efficiency Charter Amendment in the November 5, 2002 election. The Committee filed a Statement of Organization with the Secretary of State on August 12, 2002 and qualified as a committee on August 6, 2002. The Committee’s treasurer was Carolyn Knee. Renita Lloyd-Smith provided campaign finance management services to the Committee. The Committee filed its termination statement on December 11 , 2003 indicating that its filing obligations were completed on December 5, 2003.
“Late contribution” means any contribution, including a loan, which totals in the aggregate $1,000 or more that is made or received by a candidate, a controlled committee, or a committee formed or existing primarily to support or oppose a candidate or measure before the date of the election at which the candidate or measure is to be voted on but after the closing date of the last campaign statement required to be filed before the election. (C&GC Code §1.106 and Government Code § 82036). The combined activities of affiliated entities shall be used to determine whether the $1,000 threshold is met or exceeded. (C&GC Code §1.106 and Cal Code of Regs. § 18428).
Late contributions must be reported within 24 hours of receipt by facsimile transmission, telegram, guaranteed overnight mail through the United States Postal Service or personal delivery. (C&GC Code § 1.106 and Government Code § 84203(b)). A candidate or committee that receives a late contribution must include on the Late Contribution Report: 1) its full name and street address; 2) the date and amount of the late contribution; and 3) the contributor’s name, street address, occupation, and employer, or if self-employed, the name of the business. Late Contribution Reports must be filed with each office with which the candidate or committee is regularly required to file campaign statements. (C&GC Code §1.106 and Government Code § 84203(a)).
C&GC Code section 1.106 and Government Code section 84105 require committee treasurers to notify contributors from whom they have received contributions totaling $5,000 or more in a calendar year that such contributors must file campaign disclosure statements if the $10,000 contribution threshold is met. Committee treasurers must keep a record of notices they send to individuals or entities that have contributed $5,000 or more. The notification must occur within two weeks of receipt of the contributions but need not be sent to other candidates or recipient committees that have a committee identification number assigned by the Secretary of State.
Former S. F. C&GC Code section 1.114(d) stated that if the cumulative amount of contributions received from a contributor is $100 or more, the committee treasurer must not deposit the contribution unless the committee treasurer has the following information: 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. Contributions that are deposited without obtaining the required contributor information must be forfeited to the City from “available campaign funds, if any.” Former C&GCC § 1.114(e).
C&GCC section 1.106 and Government Code section 84211(f) 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.
According to the Committee’s treasurer Carolyn Knee, Bruce Brugmann is the Editor and Publisher of San Francisco Bay Guardian, and therefore notice was sent to the Bay Guardian. The Committee’s records show, however, that the Committee sent a letter regarding major donor filing obligations to Bruce Brugmann because the Committee received $7,200 in contributions from him as an individual contributor. Separate notice to the separate contributor, San Francisco Bay Guardian, was required.
A review of the Committee’s campaign statements indicated that the Committee itemized 60 contributions. Of the 60 itemized contribution entries, contributor information was not fully disclosed for two contributions. The missing information related to the contributors’ occupation and employer information.
As explained above, under former S.F. C&GCC sections 1.114(d) and 1.114(e), contributions that are deposited without the required contributor information must be forfeited to the City from available campaign funds, if any, in addition to any other penalties. The amount that is subject to forfeiture is the amount that exceeds the first $99.99 of a contributor’s contribution; i.e., on a $100 contribution that lacks the required contributor information, the amount subject to forfeiture is one cent. The Committee is required to forfeit $200.02 in contributions, in addition to any other penalties.
The Committee was required to itemize contributions of $100 or more. The Committee itemized 60 contributions totaling $84,558, but failed to itemize 36 contributions of $100 or more totaling $19,761. Please see attached list of contributions that the Committee failed to itemize. If the Committee, at the time of the deposit, did not have the contributor information for the contributions that were not itemized, the contributions are subject to forfeiture.
The Committee was provided with an opportunity to review and comment on this audit report. The Committee’s treasurer Carolyn Knee stated that she faxed complete information regarding unreported contributions to Renita Lloyd-Smith, who provided paid campaign reporting services to the Committee. Ms. Knee provided proof that she had faxed several of the missing reporting items to Ms. Lloyd-Smith. For this reason, Ms. Knee believed that the appropriate information would be reported on the campaign statements.
Please note that under the Political Reform Act, the treasurer is responsible for verifying the contents of campaign statements prior to signing and submitting them.
Through the examination of the Committee’s records and campaign disclosure statements, the Auditor found that: (1) the Committee failed to file four Late Contribution Reports, in violation of C&GC Code § 1.106 and Government Code § 84203; (2) the Committee failed to send major donor notification letters to three contributors of $5,000 or more, in violation of C&GC Code § 1.106 and Government Code § 84105; (3) the Committee failed to disclose complete contributor information for two contributions in violation of former S.F. C&GC Code § 1.114(d); and (4) the Committee failed to itemize 36 contributions of $100 or more totaling $19,761 in violation of C&GC Code § 1.106 and Government Code § 84211(f).

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