Gatto for Senate 2016; Mike

POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on January 31, 2018. CAMPAIGNS PERIOD COVERED 1. Dave Jones Fighting for California Ballot Measure Committee (1365283) 01/01/14 – 12/31/14 (formerly Californians for Affordable Health Insurance: A Ballot Measure Committee supported by consumer advocates, working families, and Insurance Commissioner Dave Jones – Yes on Proposition 45) 2. Hector Diaz Diaz for Assembly 2016 (1379406) 01/01/15 – 12/31/16 3. Richard Kinney Kinney for Senate 2016 (1375357) 01/01/15 – 06/30/16 4. Peter Scott Markovich Committee to Elect Scott Markovich for Assembly 2016 (1377820) 01/01/15 – 12/31/16 5. No on Prop. 48 – Keep Vegas-Style Casinos Out of Neighborhoods, a 01/01/13 – 12/09/14 project of Stand Up for California (1359207) NFINDEX 01/31/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Associated Builders and Contractors Central California Chapter PAC (ABC- PAC) (1222327) 2. Steve Fazio for Senate 2016 (1379420) 3. Mike Gatto for Senate 2016 (1373673) 4. Independent Women’s Voice (Nonprofit 501(c)(4) organization) (Support Steve Glazer/Oppose Susan Bonilla – Senate 2015) (1377468) 5. Kevin Mullin for Assembly 2016 (1373406) 6. Open Society Policy Center (Non-Profit 501 (c) (4) – Yes on 47) (1365560) 7. Standing Committee on Political Education of the California Labor Federation, AFL-CIO (741504) INDEX 02/28/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Standing Committee on Political Education of the California Labor Federation, AFL-CIO (741504) January 1, 2013 through December 31, 2014 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. General purpose committees were selected by the Fair Political Practices Commission. Selected committees that raised or spent more than $10,000 supporting or opposing state candidates or state measures during any calendar year were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is a general purpose committee sponsored by the California Labor Federation, AFL- CIO. TREASURER: Art Pulaski California Labor Federation, AFL-CIO REPRESENTATIVE: Emily A. Andrews Olson, Hagel & Fishburn, LLP Franchise Tax Board Audit Report – Standing Committee on Political Education of the California Labor Federation, AFL-CIO Page 2 of 4 FINANCIAL ACTIVITY Total Contributions Received: $ 2,528,345 Total Expenditures: $ 1,521,853 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State for 4 contributions made totaling $79,100. Reference Exhibit A Reports were timely filed for 68 contributions made totaling $847,100. The beginning and ending cash balances reported on all the initial Form 460 Campaign Disclosure Statements filed for the audit period were understated. These cash balance understatements ranged from $744,038 to $790,846 per the amendments filed on April 14 and April 17, 2017. Reference Exhibit B REPRESENTATIVE’S COMMENTS Ms. Andrews stated that, during the audit period, the Committee’s reporting was handled by internal staff unfamiliar with some of the nuances of campaign finance reporting, and that the Committee has since hired a law firm to ensure it complies with all reporting requirements going forward. Ms. Andrews further stated that the Committee’s failure to file the Form 497 Contribution Reports was inadvertent and that 3 of the 4 missed reports were made in connection with special elections. Ms. Andrews also noted that amendments were filed to correct the understatements of the beginning and ending cash balances. Franchise Tax Board Audit Report – Standing Committee on Political Education of the California Labor Federation, AFL-CIO Page 3 of 4 LIST OF EXHIBITS EXHIBIT A – FORM 497 CONTRIBUTION REPORTS NOT FILED WITH THE SECRETARY OF STATE EXHIBIT B – CASH BALANCE DIFFERENCES Franchise Tax Board Audit Report – Standing Committee on Political Education of the California Labor Federation, AFL-CIO Page 4 of 4 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED WITH THE SECRETARY OF STATE Date Made Recipient Amount 1. 03/25/13 California Democratic Party $ 25,000 (1) 2. 06/14/13 Democratic State Central Committee of CA 25,000 (2) 3. 09/17/13 Rodriguez for Assembly 2013 4,100 (3) 4. 10/07/14 Sacramento County Democratic Central Committee 25,000 (4) Total $ 79,100 (1) Required due to SD 32 Special General Election: 05/14/13 24-Hour Reporting Period: 03/13/13 - 05/13/11 (2) Required due to SD 16 Special Primary Election: 07/23/13 24-Hour Reporting Period: 05/22/13 - 07/22/13 (3) Required due to AD 52 Special General Election: 09/24/13 24-Hour Reporting Period: 07/24/13 - 09/23/13 (4) Contribution was not disclosed on initial Form 460 Preelection Statement filed for the period ending 10/18/14 but was added by an amendment filed on 04/14/17. EXHIBIT B - CASH BALANCE DIFFERENCES Initial Amended Cash Cash Date Balance Balance Difference 01/01/13 $ 1,400,710 $ 2,184,868 $ 784,158 (1) 06/30/13 1,846,148 2,636,994 790,846 09/30/13 2,113,003 2,903,849 790,846 12/31/13 2,405,227 3,183,422 778,195 03/17/14 2,540,738 3,318,933 778,195 05/17/14 2,305,620 3,083,815 778,195 06/30/14 2,431,432 3,209,627 778,195 09/30/14 2,558,989 3,337,184 778,195 10/18/14 2,443,288 3,187,326 744,038 12/31/14 2,460,128 3,229,774 769,646 (2) (1) Beginning cash balance per Form 460. Initial statement filed for the period 01/01/13 - 03/31/13. (2) Ending cash balance per Form 460. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) (1222327) January 1, 2013 through December 31, 2014 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. General purpose committees were selected by the Fair Political Practices Commission. Selected committees that raised or spent more than $10,000 supporting or opposing state candidates or state measures during any calendar year were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is a general purpose committee sponsored by Associated Builders and Contractors Central California Chapter. TREASURER: Laura Barnes Associated Builders and Contractors Central California Chapter Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 2 of 8 FINANCIAL ACTIVITY Total Contributions Received: $ 68,266 Total Expenditures: $ 65,009 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks and credit card authorizations were not maintained for monetary contributions received totaling $48,446. The lack of records precluded a determination as to whether additional contributors of $100 or more were required to be itemized. Bank statements and contributor listings were provided. A similar finding was noted in an Audit Report issued by the Franchise Tax Board on November 30, 2015. Ms. Barnes explained that these contributions are from a PAC “add-on” option that is included on the annual dues invoice. She added that these funds are initially deposited in an association bank account and later transferred to the PAC bank account. REPORTS AND STATEMENTS Six Form 460 Campaign Disclosure Statements were not filed or not timely filed in paper format with the Secretary of State (SOS). Three of these were timely filed electronically. A similar finding was noted in an Audit Report issued by the Franchise Tax Board on November 30, 2015. A Warning Letter was issued by the Fair Political Practices Commission on July 18, 2014, for failure to timely file Form 460 Campaign Disclosure Statements for the period January 1, 2011 through March 17, 2014. Reference Exhibit A Ms. Barnes stated that not filing the statement for the period ending October 18, 2014, was an inadvertent oversight. She added that procedures will be implemented to avoid this issue in the future. Ms. Barnes also stated that the statement filed in paper format for the period ending December 31, 2014, was mailed the same day the electronic filing was submitted, but proof of mailing was not kept. In regard to the 2013 statements filed late, Ms. Barnes stated that there was a misinterpretation of prior correspondence with the Secretary of State and she thought that paper filings were not required when submitting all forms electronically. Ms. Barnes added that, upon clarifying the misunderstanding, paper copies of the 2013 statements were filed. Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 3 of 8 Form 497 Contribution Reports were not filed with the SOS for 12 contributions made totaling $40,700. Reference Exhibit B A report was filed 1 day late for a $4,100 contribution made. A report was timely filed for a $3,000 contribution made. Ms. Barnes stated that this was an inadvertent oversight and added that procedures will be implemented to avoid this issue in the future. MONETARY CONTRIBUTIONS RECEIVED Monetary contributions were understated by a net amount of $17,442 on the campaign statements filed. Ms. Barnes stated that this was an inadvertent oversight and added that procedures will be implemented to avoid this issue in the future. EXPENDITURES Eight expenditures totaling $18,089 were not disclosed on Payments Made, Schedule E, or carried to the Summary Page of the Form 460 Campaign Disclosure Statements filed. Of these 8 expenditures, 7 totaling $13,469 were disclosed on Summary of Expenditures, Schedule D. Reference Exhibit C Ms. Barnes stated that this was an inadvertent oversight. She added that the required information was disclosed for 7 of the expenditures, albeit on the wrong schedule, thus the public was aware of the contributions made. SUMMARY OF EXPENDITURES Eleven contributions made totaling $16,100 were not disclosed on Summary of Expenditures, Schedule D, of the Form 460 Campaign Disclosure Statements filed. These contributions were reported as expenditures on Schedule E and coded as contributions. Reference Exhibit D Ms. Barnes stated that this was an inadvertent oversight and added that the required information was disclosed, albeit on the wrong schedule, thus the public was aware of the contributions made. Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 4 of 8 LIST OF EXHIBITS EXHIBIT A – FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED OR NOT TIMELY FILED WITH THE SECRETARY OF STATE EXHIBIT B – FORM 497 CONTRIBUTION REPORTS NOT FILED WITH THE SECRETARY OF STATE FOR CONTRIBUTIONS MADE EXHIBIT C – EXPENDITURES NOT DISCLOSED ON PAYMENTS MADE, SCHEDULE E EXHIBIT D – CONTRIBUTIONS MADE NOT DISCLOSED ON SUMMARY OF EXPENDITURES, SCHEDULE D Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 5 of 8 EXHIBIT A - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED OR NOT TIMELY FILED WITH THE SECRETARY OF STATE Contributions Date Days Statement Period Made Receipts Expenditures Filed Late 1. 01/01/13 - 06/30/13 $ 4,100 $ 22,858 $ 4,100 03/20/14 232 (1) 2. 07/01/13 - 12/31/13 7,100 14,404 14,059 03/20/14 48 (1) 3. 01/01/14 - 03/17/14 800 28,293 800 06/24/14 92 (3) 4. 03/18/14 - 05/17/14 9,700 0 9,700 06/24/14 33 (3) 5. 10/01/14 - 10/18/14 16,100 12,240 16,100 (2) 6. 10/19/14 - 12/31/14 2,269 4,000 4,219 (1) (1) Timely filed in electronic format. (2) The activity for this period was reported on the Form 460 Semi-annual Statement filed electronically for the period ending December 31, 2014. (3) The Form 460 Preelection Statement filed on June 24, 2014, indicated on page 1 that it was for the period January 1 through March 17, 2014, but it actually reported activity through May 17, 2014. Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 6 of 8 EXHIBIT B - FORM 497 CONTRIBUTION REPORTS NOT FILED WITH THE SECRETARY OF STATE FOR CONTRIBUTIONS MADE Date Made Recipient [sic] Amount 1. 04/29/13 Vidak for Senate 2013, FPPC #1356181 $ 4,100 (1) 2. 03/20/14 Vidak for Senate 2014, FPPC #1356181 4,100 3. 05/07/14 Lackey for Assembly 2014 FPPC 1363532 4,100 4. 08/07/14 Lackey for Assembly 2014 FPPC 1363532 4,100 5. 08/19/14 Shannon Grove for Assembly 4,100 6. 08/21/14 No on P 5,000 (2) 7. 08/21/14 Pedro Rios for Assembly 2014 4,100 8. 10/08/14 Young Kim for Assembly 2014 1358868 2,000 9. 10/08/14 Friends of Janet Nguyen for Senate 4,100 10. 10/08/14 Phillip Peters for School Board 2014 1,000 (3) 11. 10/09/14 David Hadley for Assembly ID 1359992 2,000 12. 10/09/14 Rob McCoy for Assembly 2014 1362963 2,000 Total $ 40,700 (1) Senate District 16 Special Primary Election: 05/21/13 24-Hour Reporting Period: 03/08/13 - 05/21/13 (2) Santa Barbara County Consolidated General Election: 11/04/14 24-Hour Reporting Period: 08/06/14 - 11/04/14 (3) Kern County Consolidated General Election: 11/04/14 24-Hour Reporting Period: 08/06/14 - 11/04/14 Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 7 of 8 EXHIBIT C - EXPENDITURES NOT DISCLOSED ON PAYMENTS MADE, SCHEDULE E Date Made Payee Amount 1. 04/29/13 Vidak for Senate 2013, FPPC #1356181 $ 4,100 (1) 2. 07/09/13 Vidak for Senate 2013, FPPC #1356181 4,100 (1) 3. 07/26/13 Scrivner for Supervisor 2014 500 (1) 4. 08/22/13 Scott Wilk for Assembly 2,000 (1) 5. 12/20/13 Mike Maggard for Supervisor 2014 500 (1) 6. 09/19/14 Kern County Gun Club 4,620 7. 11/17/14 Office Team 1,666 (1)(2) 8. 11/18/14 Office Team 603 (1)(2) Total $ 18,089 (1) Contributions made were disclosed on the Summary of Expenditures, Schedule D. (2) Nonmonetary contribution made to oppose Measure P in the November 4, 2014 Santa Barbara County Consolidated General Election. Franchise Tax Board Audit Report – Associated Builders and Contractors Central California Chapter PAC (ABC-PAC) Page 8 of 8 EXHIBIT D - CONTRIBUTIONS MADE NOT DISCLOSED ON SUMMARY OF EXPENDITURES, SCHEDULE D Date Made Recipient [sic] Amount 1. 10/08/14 ABC Northern California PAC / ABC 3,000 Golden Gate Chapter 2. 10/08/14 Brooke Ashjian for School Board 2014 250 3. 10/08/14 Baber for City Council 2014 1365514 500 4. 10/08/14 Alex Galacia for Otay Water 2014 250 5. 10/08/14 Young Kim for Assembly 2014 1358868 2,000 (1) 6. 10/08/14 Friends of Janet Nguyen for Senate 4,100 (1) 7. 10/08/14 Phillip Peters for School Board 2014 1,000 (1) 8. 10/08/14 Bob Smith for City Council 1348552 $ 500 9. 10/08/14 Mike Williams for KHSD 2014 1370405 500 10. 10/09/14 David Hadley for Assembly ID 1359992 2,000 (1) 11. 10/09/14 Rob McCoy for Assembly 2014 1362963 2,000 (1) Total $ 16,100 (1) A Form 497 Contribution Report was required but not filed. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Open Society Policy Center (Non-Profit 501 (c) (4) – Yes on 47) (1365560) January 1, 2014 through December 31, 2014 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that supported or opposed one or more state measures and spent more than $10,000 were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was a primarily formed ballot measure committee supporting Proposition 47 in the 2014 General Election. The Committee terminated effective December 31, 2014. TREASURER: Lynthia Gibson-Price Open Society Policy Center REPRESENTATIVE: Matthew T. Sanderson Caplin & Drysdale, Chartered Franchise Tax Board Audit Report – Open Society Policy Center (Non-Profit 501 (c) (4) Yes on 47) Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 1,460,112 Total Expenditures: $ 1,460,112 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS The Form 460 Quarterly Statement for the period ending March 31, 2014, was not on file with the Secretary of State in paper format. A $ 210,112 contribution was made to a ballot measure committee supporting Proposition 47 during the reporting period. An electronic version of the statement was timely filed on April 30, 2014. REPRESENTATIVE’S COMMENT Mr. Sanderson stated that paper and electronic copies were filed concurrently with the Secretary of State. He added that proof of mailing cannot be located at this time. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Kevin C. Mullin Kevin Mullin for Assembly 2016 (1373406) January 1, 2014 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Assembly Member Kevin C. Mullin, District 22. Mr. Mullin was re- elected in the 2016 General Election. The Committee terminated effective March 7, 2017. TREASURER: Russell H. Miller Miller & Olson, LLP REPRESENTATIVE: Rebecca J. Olson Miller & Olson, LLP Franchise Tax Board Audit Report – Kevin C. Mullin/Kevin Mullin for Assembly 2016 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 855,659 Total Expenditures: $ 709,854 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS A Form 497 Contribution Report was not filed with the Secretary of State and another was filed after the election. These reports for contributions made were required due to the Senate District 7 Special General Election held on May 19, 2015. Date Date Days Made Recipient Amount Filed Late 04/29/15 Susan Bonilla for Senate 2015 $ 2,500 05/18/15 California Democratic Party 35,200 06/01/15 13 Reports were filed for 160 other contributions received or made totaling $531,087. Ms. Olson had no comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Mike Gatto Mike Gatto for Senate 2016 (1373673) c/o Leiderman & Associates, Inc. January 1, 2014 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Assembly Member Mike Gatto, District 43. Mr. Gatto was a candidate for State Senate, District 25, in the 2016 Presidential Primary Election. Mr. Gatto filed a Form 501 Candidate Intention Statement for this office. However, he withdrew from the election and was not listed on the ballot. The committee terminated effective June 30, 2016. TREASURER: Jane Leiderman Leiderman & Associates, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 2,114,314 Total Expenditures: $ 2,114,803 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Mike Gatto/Mike Gatto for Senate 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were filed with the Secretary of State between 4 and 22 days late for 7 contributions received totaling $49,800. A report was timely filed for an $8,400 contribution received. Reference Exhibit A No comment was provided. MONETARY CONTRIBUTIONS RECEIVED Contributions received from 13 contributors in connection with the 2016 Primary and General Elections exceeded the contribution limits by $24,040. Of this amount, $3,500 was refunded to the contributor and the balance was reattributed and transferred to Mike Gatto for Lt. Governor 2018 (1373671), which was also controlled by the candidate. Reference Exhibit B Ms. Leiderman stated that it is difficult not to accept excess amounts due to the different methods of receiving contributions, such as online services. She added that it was also difficult to send all the money back and request two separate checks for the different committees because most of the contributions were received prior to the filing deadline. She further stated that the Committee had every intention to comply with the regulations and made timely transfers to the Mike Gatto to Lt. Governor 2018 committee once the donors’ permissions were acquired. LIST OF EXHIBITS EXHIBIT A – FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED FOR CONTRIBUTIONS RECEIVED EXHIBIT B – CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Franchise Tax Board Audit Report – Mike Gatto/Mike Gatto for Senate 2016 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED FOR CONTRIBUTIONS RECEIVED Date Date Days Received Contributor Amount Filed Late 1. 04/23/15 Blue Shield of California $ 8,400 05/15/15 8 2. 04/27/15 Motor Vehicle Software Corporation 8,400 05/15/15 4 3. 05/08/15 International Brotherhood of Electrical 5,000 06/10/15 19 Workers Local Union 40 Political Action Committee 4. 06/09/15 California Nurses Association Political 5,000 07/15/15 22 Action Committee 5. 06/25/15 Craig Piligian 8,400 07/21/15 12 6. 06/25/15 Gretchen Stockdale 6,200 07/21/15 12 7. 06/25/15 Pilgrim Films 8,400 07/21/15 12 Total $ 49,800 EXHIBIT B - CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Date Amount Date Contributor Exceeded Excess Refunded Refunded 1. Blue Shield of California 04/23/15 $ 8,200 2. California Building Industry Assoc PAC 03/12/15 300 3. California Credit Union League PAC 06/30/15 1,500 4. California Defense Counsel PAC 09/08/15 800 5. Charter Communications 08/17/15 1,400 6. Entertainment Partners 06/16/15 1,750 7. William Karns 05/29/15 2,200 8. Mayer Brown LLP 06/25/15 500 9. Sempra Energy 10/19/15 500 10. Southern California Edison / Edison International 05/22/15 300 11. Southern California Fund 06/30/15 790 12. Time Warner Cable Shared Service Center 05/11/15 1,800 13. Viejas Tribal Government 06/29/15 4,000 3,500 06/30/15 (1) Totals $ 24,040 $ 3,500 (1) A $4,200 check was received on 6/29/15 and deposited into the Committee's bank account on 7/6/15. A $3,500 refund check was issued to the contributor on 6/30/15. The net amount of $700 was reported as received on the campaign statement. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Independent Women’s Voice (Nonprofit 501(c)(4) organization) (Support Steve Glazer/Oppose Susan Bonilla – Senate 2015) (1377468) c/o Pillsbury Winthrop Shaw Pittman LLP January 1, 2015 through May 19, 2015 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that spent more than $10,000 and primarily supported or opposed a candidate for a legislative office being audited were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee, which was sponsored by the Independent Women’s Voice (Nonprofit 501(c)(4) organization, was primarily formed to support Steve Glazer for Senate 2015 and oppose Susan Bonilla for Senate 2015 in the Special General Election held on May 19, 2015, for Senate District 7. The Committee terminated effective May 19, 2015. TREASURER: Peter D. Lips Independent Women’s Voice REPRESENTATIVE: Emily B. Erlingsson Pillsbury Winthrop Shaw Pittman LLP Franchise Tax Board Audit Report – Independent Women’s Voice (Nonprofit 501(c)(4) organization (Support Steve Glazer/Oppose Susan Bonilla – Senate 2015) Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 18,900 Total Expenditures: $ 15,998 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not timely filed in electronic format with the Secretary of State (SOS) for 6 contributions received totaling $18,900. The contributions were received prior to the election but the reports were filed electronically on May 26, 2015, after the election. No other Form 497 Contribution Reports were required to be filed. A 5-page fax was transmitted to the SOS on May 22, 2015; however, this filing could not be located at the SOS. Date Days Received Contributor Amount Late 1. 04/17/15 Peter L. Farrell $ 1,000 36 2. 04/17/15 Boyd C. Smith 1,000 36 3. 04/19/15 Norman Hapke 1,000 36 4. 04/20/15 Joel C. Peterson 1,000 35 5. 05/09/15 Mortimer D.A. Sackler 5,000 15 6. 05/14/15 Richard Weekley 9,900 11 Total $ 18,900 Form 496 Independent Expenditure Reports for expenditures totaling $4,859 made to support Steve Glazer and oppose Susan Bonilla were not filed until May 26, 2015, after the election. Reports for independent expenditures totaling $8,600 were filed prior to the election. REPRESENTATIVE’S COMMENT Ms. Erlingsson stated that initially there was confusion as to the Committee’s filing requirements and, as a result, the Committee sought advice and attempted to correct the requirement by faxing the reports. She added that paper copies were faxed prior to the election. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Steve Fazio Steve Fazio for Senate 2016 (1379420) January 1, 2015 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate Districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Steve Fazio, a candidate for State Senate, District 27, in the 2016 General Election. The Committee terminated effective June 30, 2017. TREASURER: Bryan Burch Political Finance Solutions, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 1,347,416 Total Expenditures: $ 1,345,726 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Steve Fazio/Steve Fazio for Senate 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State for 11 contributions received totaling $25,123. Reference Exhibit A Reports were filed between 1 and 4 days late for 4 contributions received totaling $5,800. Reports were timely filed for 218 contributions received totaling $728,121. TREASURER’S COMMENT Mr. Burch stated that the reports were inadvertently omitted. He added that, due to the amount for which reports were timely filed, he believes that the Committee substantially complied with the requirement. Franchise Tax Board Audit Report – Steve Fazio/Steve Fazio for Senate 2016 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED WITH THE SECRETARY OF STATE Date Received Contributor Amount 1. 04/12/16 California Republican Party $ 2,500 2. 04/12/16 Paul Schifino 2,500 3. 05/12/16 George Shakiban 1,000 4. 05/17/16 Scotia Alves 2,000 5. 05/17/16 The Clark Law Group 1,000 6. 08/13/16 Bobby Ahn 1,000 7. 09/26/16 Dave E. Chrisman 1,000 8. 09/26/16 Thomas A. Heymann 2,000 9. 09/28/16 Central City Association of LA Political Action Committee 1,000 10. 09/28/16 Wonderful Orchards LLC 4,200 11. 10/03/16 California Republican Party 6,923 Total $ 25,123 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on February 28, 2018. CAMPAIGNS PERIOD COVERED 1. California Forward, Yes on Proposition 2 (Nonprofit 501(c)(3)) (1373184) 01/01/14 – 12/31/14 2. Yes on Prop 46, Families for Patient Safety (1362225) 01/01/14 – 11/06/14 3. South Bay & Harbor Area Communities in Support of Warren Furutani for 01/01/16 – 12/31/16 Senate 2016 (1388400) 4. Promoting Common Sense Solutions-The Mike Gatto Ballot Initiative 01/01/16 – 06/30/16 Policy Committee (1383665) 5. Michael Harrison Harrison for Assembly 2016 (1365440) 01/01/14 – 06/30/16 6. No on 46 – Patients, Providers, and Healthcare Insurers to Contain Health 01/01/13 – 12/31/14 Costs (1359222) 7. Katherine A. Perez-Estolano Katherine Perez-Estolano for Senate 2016 (1377251) 01/01/15 – 06/30/16 8. Randy G. Voepel Voepel for Assembly 2016 (1375848) 01/01/15 – 12/31/16 NFINDEX 02/28/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Chad Mayes for Assembly 2016 (1374095) 2. Greg Rodriguez for 42nd State Assembly, 2016 (1375843) INDEX 03/30/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Chad J. Mayes Chad Mayes for Assembly 2016 (1374095) January 1, 2014 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on March 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Assembly Member Chad J. Mayes, District 42. Mr. Mayes was re- elected in the 2016 General Election. TREASURER: Bryan Burch Political Finance Solutions, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 1,504,349 Total Expenditures: $ 1,291,010 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Chad J. Mayes/Chad Mayes for Assembly 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed or were not timely filed with the Secretary of State for 7 contributions received totaling $23,350. Reports were timely filed for 331 other contributions received totaling $743,323. Reference Exhibit A Mr. Burch stated that the reports were inadvertently omitted or filed late. He added that it was not the Committee’s intention to withhold contributor information from the public. He further stated that the Committee believes given the scope of the campaign activity, it substantially complied with the reporting requirements. MONETARY CONTRIBUTIONS RECEIVED Contributions received from 4 contributors in connection with the 2016 Presidential Primary and General Elections exceeded the contribution limits by $8,797. Of this amount, $7,597 was refunded to the donors. Reference Exhibit B Mr. Burch stated that the Committee received contributions from over 500 contributors and the contributions received in excess of the limits were an inadvertent oversight. He added that the Committee refunded the excess to the donors as soon as it recognized the clerical error. He further stated that there was no intention of raising funds beyond the allowable contributor limits and made a concerted effort to correct the issues. Franchise Tax Board Audit Report – Chad J. Mayes/Chad Mayes for Assembly 2016 Page 3 of 3 LIST OF EXHIBITS EXHIBIT A – FORM 497 CONTRIBUTION REPORTS NOT FILED OR NOT TIMELY FILED WITH THE SECRETARY OF STATE EXHIBIT B – CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED OR NOT TIMELY FILED WITH THE SECRETARY OF STATE Date Date Days Received Contributor Amount Filed Late 1. 03/18/16 Anheuser Busch Companies $ 4,200 2. 03/18/16 Capital One Services, LLC 1,000 3. 04/16/16 Johnson Machinery 4,200 4. 05/16/16 Valero Services, Inc. 4,200 5. 11/07/16 Best Best & Krieger LLP 4,200 11/28/16 20 6. 11/07/16 CAL PT PAC 1,350 11/28/16 20 7. 11/07/16 Frederick W. Noble 4,200 11/28/16 20 Total $ 23,350 EXHIBIT B - CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Date Amount Date Contributor Exceeded Excess Refunded Refunded 1. Morongo Band of Mission Indians 12/20/15 $ 2,897 $ 2,897 12/30/15 (1) 2. Johnson Machinery 07/12/16 4,200 4,200 09/23/16 3. United Auburn Indian Community of 08/19/16 1,200 (2) the Auburn Rancheria 4. Richard J. Gottlieb 10/26/16 500 500 12/31/16 Totals $ 8,797 $ 7,597 (1) The Committee issued check #1074 for $2,997 ($100 more than excess amount) on 12/30/15; however, the check was still outstanding on 12/31/16. (2) $1,200 was received on 6/8/16; however, the Committee did not have net debt from the Presidential Primary Election held on 6/7/16 and another $4,200 was received on 8/19/16. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Gregory L. Rodriguez Greg Rodriguez for 42nd State Assembly, 2016 (1375843) January 1, 2015 through December 8, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on March 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Gregory L. Rodriguez, a candidate for Assembly, District 42, in the 2016 General Election. The Committee terminated effective December 8, 2016. TREASURERS: Gregory L. Rodriguez Rebecca Cooke (02/25/15 - 08/25/16) FINANCIAL ACTIVITY Total Contributions Received: $ 222,802 Total Expenditures: $ 222,802 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Gregory L. Rodriguez/Greg Rodriguez for 42nd State Assembly, 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks or credit card authorization forms, daily records showing lump sum amounts, and duplicate deposit slips were not maintained for contributions received totaling $222,802. Bank statements were provided. Mr. Rodriguez stated that he maintained copies of the checks but shredded them once he lost the race. He added that he tried unsuccessfully to obtain copies from the bank. Receipts and/or invoices were not maintained for expenditures made totaling $206,169. Copies of processed checks, bank statements, and a check register were maintained to verify the names of the payees and the amounts paid. Mr. Rodriguez stated he maintained copies but shredded them once he lost the race. CAMPAIGN BANK ACCOUNT Campaign expenditures totaling $5,701 were not processed through the Committee’s designated bank account. Instead, the expenditures were paid by the candidate using his personal funds. Of this amount, $4,088 was reported as nonmonetary contributions from the candidate and $1,613 was reimbursed to the candidate and reported as office expenses. Mr. Rodriguez stated he was unaware he could not pay expenses from personal funds and be reimbursed. MONETARY CONTRIBUTIONS RECEIVED P.O. Box addresses in lieu of street addresses were disclosed for 24 contributors for contributions received totaling $20,550. The records were not maintained and the contributions were not returned to the donors. Mr. Rodriguez stated that best efforts were made at obtaining the addresses. Franchise Tax Board Audit Report – Gregory L. Rodriguez/Greg Rodriguez for 42nd State Assembly, 2016 Page 3 of 3 Contributions totaling $479 were reported as being received from anonymous contributors. The contributions were not sent to the Secretary of State for deposit in the State General Fund. Date Received Amount 10/31/16 $ 148 11/04/16 331 $ 479 Mr. Rodriguez stated that the anonymous contributors donated small cash amounts and did not fill out envelopes. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on March 30, 2018. CAMPAIGNS PERIOD COVERED 1. Travis Allen Travis Allen for Assembly 2016 (1373831) 01/01/15 – 12/31/16 2. Michael D. Antonovich Antonovich for Senate 2016 (1379080) 01/01/15 – 12/31/16 3. Phlunté Riddle Friends of Phlunte Riddle for State Senate 2016 (1376646) 01/01/15 – 06/30/16 NFINDEX 03/30/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Citizens Against Taxpayer Funding of BDCP in 2014 Water Bond (1351860) (formerly Californians Against More Debt, Misplaced Spending – No on Prop. 1) 2. Wilma Chan for State Senate 2016 (1374562) 3. Kansen Chu for Assembly 2016 (1374408) 4. Jeff Hewitt for Assembly District 42 2016 (1378802) INDEX 04/30/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Citizens Against Taxpayer Funding of BDCP in 2014 Water Bond (1351860) (formerly Californians Against More Debt, Misplaced Spending – No on Prop. 1) January 1, 2014 through December 31, 2014 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that supported or opposed one or more state measures and spent more than $10,000 were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on April 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was initially registered as a general purpose committee. On July 10, 2014, it registered as a primarily formed ballot measure committee opposing Proposition 1 in the 2014 General Election. The Committee terminated effective June 30, 2015. TREASURER: Stephen K. Hopcraft Stephen K. Hopcraft Communications Consulting Franchise Tax Board Audit Report – Citizens Against Taxpayer Funding of BDCP in 2014 Water Bond Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 87,649 Total Expenditures: $ 80,947 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks and duplicate deposit slips were not maintained for contributions received totaling $22,650. Bank statements and a check register were provided. MONETARY CONTRIBUTIONS RECEIVED Monetary contributions totaling $15,999 received from 8 contributors were not itemized on the Form 460 Semi-annual Statement filed for the period ending December 31, 2014. The contributions were disclosed on Form 497 Contribution Reports filed on the dates the contributions were received. Reference Exhibit A TREASURER’S COMMENT Mr. Hopcraft did not provide a comment. Franchise Tax Board Audit Report – Citizens Against Taxpayer Funding of BDCP in 2014 Water Bond Page 3 of 3 EXHIBIT A - CONTRIBUTIONS RECEIVED NOT ITEMIZED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Date Received Contributor Amount 1. 10/24/14 J. Armanino Farms, Inc. $ 2,000 2. 10/24/14 Michael Frost 100 (1) 3. 10/24/14 Heritage Land Co., Inc. 2,500 4. 10/24/14 Zuckerman Mandeville, Inc. 2,500 5. 10/27/14 Kevin F. Jones 400 6. 10/27/14 R Doornenbal Ranches 999 7. 10/29/14 Giovannoni Farms 2,500 (1) 8. 10/31/14 Cerri Farms, Inc. 5,000 (1) Total $ 15,999 (1) Copies of contributors' checks were not maintained. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Kansen Chu Kansen Chu for Assembly 2016 (1374408) January 1, 2014 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on April 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Assembly Member Kansen Chu, District 25. Mr. Chu was re-elected in the 2016 General Election. TREASURER: Steve Blomquist REPRESENTATIVE: Daisy Chu Franchise Tax Board Audit Report – Kansen Chu/Kansen Chu for Assembly 2016 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 392,263 Total Expenditures: $ 418,965 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Records of the dates of receipt were not maintained for 2 monetary contributions totaling $8,800 reported as received after the General Election in the absence of net debt. Of this amount, $8,500 was reported as received from SEIU Local 2015 State PAC and $300 was reported as received from Huey-Chiang MA on November 15 and December 14, respectively. The lack of records precluded a determination as to whether these contributions could be received and whether a Form 497 Contribution Report was required to be filed for the $8,500 contribution. Ms. Chu stated that she misunderstood the requirements pertaining to recording and disclosing the dates contributions are received and that new procedures will be enacted to record the date of receipts for contributions received. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Wilma Chan Wilma Chan for State Senate 2016 (1374562) January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on April 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Alameda County Supervisor Wilma Chan, a candidate for State Senate, District 9, in the 2016 Presidential Primary Election. However, she withdrew from the election and was not on the ballot. TREASURER: Susan Reyes FINANCIAL ACTIVITY Total Contributions Received: $ 210,494 Total Expenditures: $ 154,650 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Wilma Chan/Wilma Chan for State Senate 2016 Page 2 of 2 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS A Form 460 Preelection Statement was not filed with the Secretary of State for the period January 1 through April 23, 2016. Contributions totaling $3,250 were made in connection with the June 7, 2016 election during this period. Receipts and expenditures for the period totaled $0 and $41,990, respectively. The activity for this period was disclosed on the Form 460 Semi-annual Statement for the period ending June 30, 2016, which was filed 247 days late in paper format on April 5, 2017, but timely filed in electronic format on July 31, 2016. Ms. Reyes stated that this was an unintentional error as it was her understanding that no preelection statements were required to be filed since her client announced in September 2015 that she was withdrawing from the 2016 election. Ms. Reyes added that changes have been made in her procedures so as to not miss required filings. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Jeffrey F. Hewitt Jeff Hewitt for Assembly District 42 2016 (1378802) January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on April 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Calimesa Mayor Jeffrey F. Hewitt. Mr. Hewitt was a candidate for Assembly, District 42, in the 2016 Presidential Primary Election. TREASURERS: Wendy Hewitt David Castaldo (03/10/16 – 05/04/16) Franchise Tax Board Audit Report – Jeffrey F. Hewitt/Jeff Hewitt for Assembly District 42 2016 Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 15,386 Total Expenditures: $ 13,943 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 460 Campaign Disclosure Statements were filed with the Secretary of State (SOS) between 94 and 279 days late. Reference Exhibit A Form 497 Contribution Reports were filed with the SOS between 19 and 53 days late for 5 contributions received totaling $16,000. All of the reports were filed prior to the election. No other reports were required to be filed. A similar finding was noted in an Audit Report issued by Franchise Tax Board on September 30, 2016. An amendment to the Form 410 Statement of Organization was not filed with the SOS within 10 days to report the new treasurer as Wendy Hewitt. On May 5, 2016, Wendy Hewitt signed the Form 460 Semi-annual Statements that were due in 2015 but filed on May 5, 2016. An amendment to the Form 410 Statement of Organization, due no later than May 14, 2016, was not filed until January 26, 2017. CANDIDATE’S COMMENT Mr. Hewitt did not provide a comment. Franchise Tax Board Audit Report – Jeffrey F. Hewitt/Jeff Hewitt for Assembly District 42 2016 Page 3 of 3 EXHIBIT A - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS FILED LATE WITH THE SECRETARY OF STATE Period Receipts Expenditures Due Date Date Filed Days Late 06/29/15 - 06/30/15 $ 1,111 $ - 07/31/15 05/05/16 279 07/01/15 - 12/31/15 $ - $ 32 02/01/16 05/05/16 94 01/01/16 - 04/23/16 $ 14,375 $ 5,665 04/28/16 01/25/17 (1) 272 04/24/16 - 05/21/16 $ 2,500 $ 8,062 05/26/16 01/26/17 (2) 245 05/22/16 - 06/30/16 $ - $ 2,900 08/01/16 01/25/17 (3) 177 Presidential Primary Election: 06/07/16 (1) Preelection Statement was filed in electronic format on June 6, 2016. (2) Preelection Statement was filed in electronic format on June 8, 2016. (3) Semi-annual Statement in electronic format was required but not filed. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on April 30, 2018. CAMPAIGNS PERIOD COVERED 1. American Civil Liberties Union, Inc. (Nonprofit 501(c)(4)) (1373039) 01/01/14 – 12/31/14 2. Autumn Burke Autumn Burke for Assembly 2016 (1373562) 01/01/14 – 12/31/16 3. Nora E. Campos Nora Campos for Assembly 2014 Officeholder Account (1373838) 01/01/16 – 12/31/16 4. Nora. E. Campos Nora Campos for Senate 2016 (1383455) 01/01/16 – 12/31/16 5. Nora. E. Campos Nora Campos for Senate 2020 (1377753) 01/01/15 – 12/31/16 6. Laura Friedman Laura Friedman for Assembly 2016 (1368792) 01/01/14 – 12/31/16 7. Timothy S. Grayson Tim Grayson for State Assembly 2016 (1376431) 01/01/15 – 12/31/16 8. David B. Pollock David Pollock for State Senate 2016 (1374756) 01/01/15 – 06/30/16 NFINDEX 04/30/18 Page 1 of 2 9. Mae Cendaña Torlakson Mae Torlakson for Assembly 2016 (1378565) 01/01/15 – 12/31/16 NFINDEX 04/30/18 Page 2 of 2 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Shawn Bayliss for Senate 2016 (1377178) 2. Buchanan for Senate 2015 (1374519) 3. Dennis Bullock for Assembly 2016 (1374559) INDEX 05/31/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Joan T. Buchanan Buchanan for Senate 2015 (1374519) January 1, 2015 through June 30, 2015 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Legislative candidates in a special primary or special runoff election who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on May 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Assembly Member Joan T. Buchanan, a candidate for State Senate, District 7, in the March 17, 2015 Special Primary Election. The Committee terminated effective December 9, 2015. TREASURER: Rebecca J. Olson Miller & Olson, LLP FINANCIAL ACTIVITY Total Contributions Received: $ 386,775 Total Expenditures: $ 407,948 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Joan T. Buchanan/Buchanan for Senate 2015 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. MONETARY CONTRIBUTIONS RECEIVED Funds totaling $21,000 received in transfers from Buchanan for Senate 2016 (1358141) were not reported on Schedule A as monetary contributions attributed to specific contributors. Instead, the transfers were reported on Schedule I as miscellaneous increases to cash. Records for the attribution method and the specific contributors were not provided. The lack of records precluded a determination as to whether the contribution limits were exceeded. Date of Transfer Amount 01/31/15 $ 17,000 02/20/15 4,000 Total $ 21,000 Ms. Olson had no comment. LOANS RECEIVED The outstanding balance of loans received from the candidate totaled $142,991 on June 30, 2015, $42,991 over the $100,000 limit. The loans were reported as forgiven on August 10, 2015. In addition, Form 497 Contribution Reports were not filed for 2 of the loans received nor for the forgiveness of the loans. Date Outstanding Received Amount Balance 02/28/15 $ 75,000 $ 75,000 03/20/15 35,000 (1) 110,000 06/23/15 32,991 (1) 142,991 (1) Form 497 Contribution Reports were not filed. Franchise Tax Board Audit Report – Joan T. Buchanan/Buchanan for Senate 2015 Page 3 of 3 Ms. Olson stated that due to a miscommunication in the treasurer’s office, the loan forgiveness dates were inadvertently entered incorrectly into the committee’s campaign reporting software. Ms. Olson added that as such, the dates that were reported showed outstanding loan amounts incorrectly. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Dennis R. Bullock Dennis Bullock for Assembly 2016 (1374559) January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly Districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on May 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Dennis R. Bullock, a candidate for Assembly, District 43, in the 2016 Presidential Primary Election. The Committee terminated effective January 8, 2017. TREASURER: Mary Bullock FINANCIAL ACTIVITY Total Contributions Received: $ 22,602 Total Expenditures: $ 24,495 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Dennis R. Bullock/Dennis Bullock for Assembly 2016 Page 2 of 2 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. MONETARY CONTRIBUTIONS RECEIVED Occupation and/or employer information was not disclosed for contributions totaling $1,450 received from 11 individuals. A record of this information was not maintained and the contributions were not returned. Mr. Bullock stated that the Committee inadvertently omitted the occupation and employer information because it was unfamiliar with campaign finance reporting and unable to afford professional assistance. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Shawn Bayliss Shawn Bayliss for Senate 2016 (1377178) c/o Kaufman Legal Group January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on May 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Shawn Bayliss, a candidate for State Senate, District 27, in the 2016 Presidential Primary Election. The Committee terminated effective July 31, 2016. TREASURER: Shawn Bayliss REPRESENTATIVE: Leilani Rudow Beaver Kaufman Legal Group Franchise Tax Board Audit Report – Shawn Bayliss/Shawn Bayliss for Senate 2016 Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 414,964 Total Expenditures: $ 422,745 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were filed with the Secretary of State between 7 and 41 days late for 8 contributions received totaling $64,900. Of this amount, $4,200 was received prior to the June 7, 2016 Presidential Primary Election, but reported after the election. Reports were timely filed for 33 contributions received totaling $83,950. Reference Exhibit A Ms. Beaver stated that the Committee made its best efforts to disclose all contributions on a timely basis. She added that with the exception of one $4,200 contribution, all contributions were disclosed well before the primary election. Franchise Tax Board Audit Report – Shawn Bayliss/Shawn Bayliss for Senate 2016 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED WITH THE SECRETARY OF STATE Date Date Days Received Contributor Amount Filed Late 1. 12/30/15 Shawn Bayliss $ 34,000 01/21/16 7 (1) 2. 12/30/15 Howard Brenner 8,400 01/21/16 7 (1) 3. 12/30/15 Joshua M. Brenner 8,400 01/21/16 7 (1) 4. 12/30/15 Sherman for Congress 6,200 01/21/16 7 5. 04/04/16 * Yitzchok Pearson 1,000 05/16/16 41 (2) 6. 04/08/16 AP Properties Ltd. 1,700 05/16/16 35 7. 04/08/16 Naty Saidoff 1,000 05/16/16 35 8. 05/31/16 Beverly Pacifica LLC 4,200 06/16/16 15 (3) Total $ 64,900 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. (1) Loan received. (2) Contributions received from the contributor were understated by $500 on the Form 497 Contribution Report filed. (3) Reported after the election. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on May 31, 2018. CAMPAIGNS PERIOD COVERED 1. Jim Beall Jim Beall for Senate 2016 (1354578) 01/01/13 – 12/31/16 2. Andrew J. Blumenfeld Andrew Blumenfeld for Assembly 2016 (1375992) 01/01/15 – 06/30/16 3. Joan T. Buchanan Buchanan for Senate 2016 (1358141) 01/01/13 – 06/30/15 4. Rajiv P. Dalal Dalal for Assembly 2016 (1376212) 01/01/15 – 06/30/16 5. Warren T. Furutani Warren Furutani for State Senate 2016 (1375758) 01/01/15 – 12/31/16 6. Henry Stern Stern for Senate 2016 (1374003) 01/01/14 – 12/31/16 7. Katherine Grace Welch Elect Katherine Welch for State Senate 2016 (1380051) 01/01/15 – 06/30/16 8. Yes on Prop. 46, Your Neighbors for Patient Safety, a coalition of consumer attorneys and patient safety advocates (1361562) 01/01/13 – 12/31/14 NFINDEX 05/31/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Philip Y. Ting Phil Ting for Assembly 2016 (1373572) INDEX 06/29/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Philip Y. Ting Phil Ting for Assembly 2016 (1373572) January 1, 2014 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on June 29, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Assembly Member Philip Y. Ting, District 19. Mr. Ting was re- elected in the 2016 General Election. The committee terminated effective May 31, 2017. TREASURER: Stacy E. Owens S. E. Owens & Company REPRESENTATIVE: Marissa Quaranta S. E. Owens & Company Franchise Tax Board Audit Report – Philip Y. Ting/Phil Ting For Assembly 2016 Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 1,167,004 Total Expenditures: $ 789,622 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not timely filed with the Secretary of State for 7 contributions received totaling $26,300 and 4 contributions made totaling $9,200. Form 497 Contribution Reports were timely filed for 240 contributions received and made totaling $739,000. Reference Exhibit A Ms. Quaranta stated she believes the issue described in the finding is immaterial as the number and amount for reports filed late are small in comparison to the timely filed reports. Franchise Tax Board Audit Report – Philip Y. Ting/Phil Ting For Assembly 2016 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED Date Days Received Contributor Amount Late 1. 04/24/15 California State Association of Electrical $ 5,000 78 Workers 2. 05/01/15 California State Pipe Trades Council 5,000 71 Political Action Fund 3. 06/19/15 California State Council of Laborers PAC 8,500 22 Small Contributor Committee 4. 04/04/16 PricewaterhouseCoopers LLP 2,000 13 5. 05/11/16 NRG Energy Inc. 1,500 13 6. 05/13/16 California State Council of Unite Here 1,000 9 7. 11/08/16 * Sheet Metal Workers 104 District 2 Small 3,300 6 (1) Contributor Committee Total $ 26,300 Date Days Made Recipient Amount Late 1. 10/13/16 Warren Furutani for State Senate 2016 $ 2,000 10 2. 10/13/16 Ash Kalra for California Assembly 2016 2,000 10 3. 10/13/16 Jane Kim For Senate 2016 4,200 10 4. 10/13/16 Mae Torlakson for State Assembly 1,000 10 Total $ 9,200 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. (1) Reported after the election. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on June 29, 2018. CAMPAIGNS PERIOD COVERED 1. Cheryl Cook-Kallio 01/01/15 – 12/31/16 Cook-Kallio for Assembly 2016 (1381077) 2. Mark J. DeSaulnier Mark DeSaulnier for Assembly 2016 (1354084) 01/01/12 – 12/31/14 3. Isadore Hall, III Hall for Senate 2016 (1354418) 01/01/15 – 06/30/16 4. Mark J. MacCarley MacCarley for Assembly 2016 (1379878) 01/01/15 – 06/30/16 5. Jose J. Medina Medina for Assembly 2016 (1373424) 01/01/15 – 12/31/16 6. Million Voter Project Action Fund – Yes on 55, 56, 57, 58, 62, and No on 01/01/16 – 12/20/16 66, Sponsored by Social Justice Advocates and Organizations (1391170) 7. Nancy Skinner Skinner for Assembly 2012 (1334307) 01/01/13 – 03/24/15 NFINDEX 06/29/18 Page 1 of 2 8. Nancy Skinner Skinner for Senate 2016 (1354462) 01/01/13 – 12/31/16 9. Sandré R. Swanson Swanson for Senate 2016 (1347713) 01/01/12 – 12/31/16 10. Working for a Healthier California to Support Cheryl Cook-Kallio and Bryan 01/01/16 – 12/31/16 Urias for Assembly 2016, Sponsored by Service Employees International Union – United Healthcare Workers West (1385596) 11. Yes on 56 Stop Cancer – Planned Parenthood of Orange and San 01/01/16 – 12/31/16 Bernardino Counties’ Community Action Fund (non profit 501(c)(4)) (1389668) NFINDEX 06/29/18 Page 2 of 2 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Baron P. Bruno Bruno for 62nd Assembly CA 2016 (1385823) 2. Janice Kamenir-Reznik Janice Kamenir-Reznik for Senate 2016 (1381876) 3. Harmesh Kumar Committee to Elect Dr. Kumar for Assembly (District 14) 2016 (1381210) 4. Anthony J. Portantino Anthony Portantino for Senate 2016 (1334175) 5. Anthony J. Portantino Moving California Forward A Committee Controlled by Anthony Portantino (1303923) 6. SAM Action, Inc., a Committee Against Proposition 64 with Help from Citizens (Nonprofit 501 (C)(4)) (1387789) INDEX 07/31/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Anthony J. Portantino Moving California Forward A Committee Controlled by Anthony Portantino (1303923) c/o Gould & Orellana, LLC January 1, 2011 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. In addition, each controlled committee of the candidate was subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is a ballot measure committee controlled by State Senator Anthony J. Portantino, District 25. Mr. Portantino was elected in the 2016 General Election. TREASURER: David L. Gould Gould & Orellana, LLC Franchise Tax Board Audit Report – Anthony J. Portantino/Moving California Forward A Committee Controlled by Anthony Portantino Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 72,500 Total Expenditures: $ 67,978 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS A Form 496 Independent Expenditure Report was not filed with the Secretary of State for a $33,120 expenditure made on May 24, 2016, for a mailer in support of Proposition 50 in the 2016 Presidential Primary Election. The Committee disclosed the expenditure as a nonmonetary contribution made on the Form 460 Preelection Statement filed on July 25, 2016. No other Form 496 Independent Expenditure Reports were required to be filed. A Form 497 Contribution Report was filed for a $1,500 contribution made to another measure. Mr. Gould did not provide a comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Anthony J. Portantino Anthony Portantino for Senate 2016 (1334175) c/o Gould & Orellana, LLC January 1, 2010 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by State Senator Anthony J. Portantino, District 25. Mr. Portantino was elected in the 2016 General Election. TREASURER: David L. Gould Gould & Orellana, LLC FINANCIAL ACTIVITY Total Contributions Received: $ 4,057,069 Total Expenditures: $ 4,059,017 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Anthony J. Portantino/Anthony Portantino for Senate 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS The reported cash balances were overstated on the Form 460 Campaign Disclosure Statements filed for the period June 30, 2015 through September 24, 2016. The overstatements were due to receipts being overstated by $350,000 on the initial Form 460 Semi-annual Statement filed for the period ending June 30, 2015. Of this amount, $75,000 was from reporting a gain on an investment that was not actually received and $275,000 was from reporting a transfer from another controlled committee when the funds were not in the possession of the Committee. The $75,000 investment gain was initially reported as a miscellaneous receipt on June 30, 2015. An amendment was filed on March 11, 2016, to remove this investment gain. The $275,000 transfer from Anthony Portantino Congressional Exploratory Committee (C00479188), including 945 attributed itemized contributions totaling $262,540, was reported as received on June 30, 2015. A $175,000 return of the contribution to Anthony Portantino Congressional Exploratory Committee was reported on June 30, 2016. Although the funds reported as transferred from and returned to Anthony Portantino Congressional Exploratory Committee did not go through the campaign bank account as of June 30, 2016, the Committee received a $100,000 deposit into its campaign bank account on August 1, 2016. A copy of an unsigned $100,000 check from Anthony Portantino Congressional Exploratory Committee dated June 30, 2016, was provided. Date Overstatement 06/30/15 $ 350,000 12/31/15 350,000 04/23/16 275,000 05/21/16 275,000 06/30/16 100,000 09/24/16 0 Mr. Gould stated that the receipts reflected the transfer of securities held in an investment account from Anthony Portantino Congressional Exploratory Committee to Anthony Portantino for Senate 2016 without an actual liquidation of those securities. Franchise Tax Board Audit Report – Anthony J. Portantino/Anthony Portantino for Senate 2016 Page 3 of 3 Form 497 Contribution Reports were not filed with the Secretary of State for 4 contributions received totaling $18,300. Date Received Contributor Amount 06/30/11 A Faculty for Our University's Future $ 7,800 04/23/16 * Canada Crescenta Democratic Club 1,000 05/18/16 * Beth Gertmenian 1,000 06/24/16 California Federation of Teachers Cope 8,500 Total $ 18,300 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. Mr. Gould did not provide a comment. Contributions received were overstated by $357,111 on Form 497 Contribution Reports filed. Of this amount, $347,461 was on the Form 497 Contribution Report filed on September 17, 2016, and was attributable to the following: Amount Duplicate Reporting of Contributions Received $ 292,051 Reporting of Cumulative Contributions Received < $1,000 17,310 Reporting of Contributions Received Outside the 90-day Reporting Period 38,100 Total $ 347,461 Mr. Gould did not provide a comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Harmesh Kumar Committee to Elect Dr. Kumar for Assembly (District 14) 2016 (1381210) Therapeutic Residential Care Services Inc. January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Harmesh Kumar, a candidate for Assembly, District 14, in the 2016 Presidential Primary Election. The Committee terminated effective October 4, 2016. TREASURER: Alexandre Cardoso Therapeutic Residential Care Services Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 18,716 Total Expenditures: $ 18,716 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Harmesh Kumar/Committee to Elect Dr. Kumar for Assembly (District 14) 2016 Page 2 of 4 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State for 4 contributions received totaling $6,444. A Form 497 Contribution Report was filed for a $1,000 contribution received on April 27, 2016. Reference Exhibit A CAMPAIGN BANK ACCOUNT Personal funds from the candidate totaling $5,382 were not deposited into the campaign bank account prior to being used to pay for campaign expenditures. These expenditures were disclosed on the Form 460 Campaign Disclosure Statements. MONETARY CONTRIBUTIONS RECEIVED Cash contributions of $100 or more each totaling $3,300 were received from 17 contributors. In addition, the cash was not deposited into the campaign bank account. The contributions were not returned to the donors. Reference Exhibit B EXPENDITURES A $1,700 payment to Stephanie Simms for campaign services was made in the form of cash. A check, written to Alex Cardoso on June 10, 2016, was cashed and used to pay Stephanie Simms. Stephanie Simms was not disclosed as the payee on the Form 460 Semi-annual Statement filed for the period ending June 30, 2016; instead, the payee was disclosed as Alex Cardoso. FILERS’ COMMENTS Mr. Cardoso stated the $3,300 cash was used to reimburse the candidate for campaign expenditures paid with personal funds. He further stated they were not aware of the reporting requirements related to receipts, contributions, and expenditures of the candidate, and the filing requirements for Form 497 Contribution Reports. Mr. Cardoso also stated internal procedures have since been updated for future campaigns. Auditor’s Note: Records to substantiate the disposition of the cash were not provided. Franchise Tax Board Audit Report – Harmesh Kumar/Committee to Elect Dr. Kumar for Assembly (District 14) 2016 Page 3 of 4 LIST OF EXHIBITS EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED EXHIBIT B - CONTRIBUTIONS OF $100 OR MORE RECEIVED IN THE FORM OF CASH EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED Date Received Contributor Amount 1. 04/11/16 Alexandre Cardoso $ 1,350 (1) 2. 04/22/16 * Harmesh Kumar 2,094 (2) 3. 05/04/16 Join-Hands, LLC DBA Sierra Villa 1,500 (3) 4. 05/19/16 Join-Hands, LLC DBA St. Michael 1,500 (3) Total $ 6,444 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. (1) A campaign expense was paid by the treasurer. (2) Campaign expenses were paid with the Candidate's personal funds. (3) Entity owned by the candidate. Disclosed on Form 460 Campaign Disclosure Statements as loans from the candidate. Checks were not deposited into the campaign bank account until June 7, 2016, the day of the election. Franchise Tax Board Audit Report – Harmesh Kumar/Committee to Elect Dr. Kumar for Assembly (District 14) 2016 Page 4 of 4 EXHIBIT B - CONTRIBUTIONS OF $100 OR MORE RECEIVED IN THE FORM OF CASH Date Received Contributor Disclosed Amount 1. 04/16/16 Karam Bangar $ 500 2. 04/16/16 Malkit Bangar 250 3. 04/16/16 Kashmir Chand 200 4. 04/16/16 Santokh Narr 200 5. 04/16/16 Rattan Pal 250 6. 04/16/16 Rajinder Sodhi 500 7. 04/22/16 O. P. Balley 100 8. 04/22/16 P. K. Chumber 100 9. 04/22/16 Gurpal Singh Dhaliwal 100 10. 04/22/16 Hoshiar S Dhaliwal 100 11. 04/22/16 Harjinder Dhami 100 12. 04/22/16 Satinder Paul Hayer 100 13. 04/22/16 Shashi K Paul 100 14. 04/22/16 Parmit Randhawa 100 15. 04/22/16 Bhupinder (Gagan) Singh 200 16. 04/22/16 Karanjit Singh 100 17. 04/22/16 Satpaul Surila 300 Total $ 3,300 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Janice Kamenir-Reznik Janice Kamenir-Reznik for Senate 2016 (1381876) c/o Leiderman & Associates, Inc. January 1, 2016 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Janice Kamenir-Reznik, a candidate for State Senate, District 27, in the 2016 Presidential Primary Election. The Committee terminated effective December 31, 2016. TREASURER: Jane Leiderman Leiderman & Associates, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 964,625 Total Expenditures: $ 974,499 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Janice Kamenir-Reznik/Janice Kamenir-Reznik for Senate 2016 Page 2 of 4 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State for 12 contributions received totaling $30,425. Reports were filed for 148 contributions received totaling $478,465. Reference Exhibit A Ms. Leiderman stated that their intention is to comply and report accurately but it was her understanding that nonmonetary contributions by the candidate were allowed and no special reports were required. Ms. Leiderman also stated that the Sandel contribution was incorrectly reported as received from Joyce when she believes it should have been split between Joyce and Dan since both names were on the remittance envelope. She added that they constantly improve their ability to check for contributions that require reporting but some were inadvertently missed. CAMPAIGN BANK ACCOUNT Campaign expenditures totaling $22,657 were not processed through the Committee’s designated campaign bank account. Instead, these expenditures were paid directly by the candidate using her personal funds and/or personal credit card. These expenditures were reported on the campaign statements as nonmonetary contributions from the candidate to the Committee. Although descriptions of the goods were reported for these expenses, the payees and amounts paid were not itemized for the 14 expenditures totaling $20,903 that were required to be itemized. Reference Exhibit B Ms. Leiderman stated that the candidate put expenses on her personal credit card with the intention to make in-kind contributions. She added that she was notified of these payments after the fact and tried to be in compliance. MONETARY CONTRIBUTIONS RECEIVED Contributions totaling $8,400 were received in the form of cashier’s checks from Steve B. Mikhov for $4,200 and Inna Mikhov for $4,200 on February 18, 2016. Ms. Leiderman stated that this was an inadvertent oversight as the campaign unfortunately missed these 2 cashier’s checks that were deposited into the campaign bank account. Franchise Tax Board Audit Report – Janice Kamenir-Reznik/Janice Kamenir-Reznik for Senate 2016 Page 3 of 4 LIST OF EXHIBITS EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED EXHIBIT B - EXPENDITURES NOT ITEMIZED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED Date Received Contributor Amount 1. 01/15/16 Janice Kamenir-Reznik $ 5,000 2. 01/27/16 Joyce Sandel 5,000 3. 04/01/16 Adam Weiss 1,000 4. 04/09/16 Robert Green 1,000 5. 04/10/16 Evelyn Baran 1,000 6. 04/10/16 Wendy Greuel 1,000 7. 04/10/16 Janice Kamenir-Reznik 2,169 8. 04/10/16 Dean Schramm 1,000 9. 04/21/16 * Ben Reznik 1,012 10. 05/16/16 * Ed Bernstein 1,099 11. 06/06/16 Janice Kamenir-Reznik 1,054 12. 06/07/16 Janice Kamenir-Reznik 10,091 Total $ 30,425 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. Franchise Tax Board Audit Report – Janice Kamenir-Reznik/Janice Kamenir-Reznik for Senate 2016 Page 4 of 4 EXHIBIT B - EXPENDITURES NOT ITEMIZED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Date Made Payee Amount 1. 01/15/16 Mark Deitch & Associates Inc. $ 5,000 2. 02/08/16 Woodland Hills Printing 1,328 3. 02/09/16 Southwest Airlines 220 4. 02/15/16 Office Depot 160 5. 02/18/16 Greater Conejo Valley Chamber of Commerce 250 6. 02/22/16 Woodland Hills Printing 392 7. 02/23/16 Hotels.Com 273 8. 04/10/16 Factor's Famous Deli 2,120 9. 06/02/16 Political Data Inc. 277 10. 06/03/16 The Baker 200 11. 06/05/16 American Kitchen 198 12. 06/06/16 Daphne's California Greek 260 13. 06/07/16 Cornerstone Printing, Inc. 10,091 14. 06/07/16 Office Depot 134 Total $ 20,903 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Baron P. Bruno Bruno for 62nd Assembly CA 2016 (1385823) January 1, 2016 through December 31, 2016 AUDIT AUTHORITY AND SCOPE The audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Baron P. Bruno, a candidate for Assembly, District 62, in the 2016 General Election. The committee terminated effective December 31, 2017. TREASURER: Baron P. Bruno FINANCIAL ACTIVITY Total Contributions Received: $ 30,794 Total Expenditures: $ 30,665 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Baron P. Bruno/Bruno for 62nd Assembly CA 2016 Page 2 of 4 FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Canceled checks and/or credit card statements were not provided for 20 expenditures made totaling $11,517. Invoices and receipts were provided for 9 of these expenditures made totaling $2,998 and check stubs were provided for 7 of these expenditures made totaling $5,955. Bank transaction summaries and a check register were also provided. No comment was provided. REPORTS AND STATEMENTS A Form 460 Semi-annual Statement for the period ending June 30, 2016, was not filed with the Secretary of State (SOS). The activity for this period was reported on the Form 460 Preelection Statement filed for the period ending September 24, 2016, which was filed 12 days late. The Form 460 Preelection Statement for the period ending October 22, 2016, and the Semi-annual Statement for the period ending December 31, 2016, were not timely filed with the SOS. Reference Exhibit A The beginning cash balance was overstated by $5,377 on the Summary Page of the initial Form 460 Preelection Statement filed for the period ending September 24, 2016, and the cash balance was understated by $14,562 on the initial Form 460 Preelection Statement filed for period ending October 22, 2016. This understatement was carried over on subsequent Form 460 Campaign Disclosure Statements initially filed. An amendment was filed on December 31, 2017, after the election, to correct the beginning balance for period ending September 24, 2016, and additional amendments were field on January 8, 2018, to correct the cash balances for subsequent periods. Mr. Bruno stated he was not aware of the campaign statement disclosure requirements. He added that he sought guidance. Form 497 Contribution Reports were not filed with the SOS for 8 contributions received totaling $11,305. Reference Exhibit B Mr. Bruno stated he was not aware of the reporting requirements since this was his first time running with no help or guidance. Franchise Tax Board Audit Report – Baron P. Bruno/Bruno for 62nd Assembly CA 2016 Page 3 of 4 CAMPAIGN BANK ACCOUNT Campaign expenditures made totaling $7,864 were not processed through the Committee’s designated campaign bank account. Instead, the expenditures were paid directly by the candidate using his personal funds and/or personal credit card. These expenditures made were reported on the Form 460 Campaign Disclosure Statements as loans from the candidate to the Committee; however, the payees for expenditures totaling $7,195 were not disclosed on the initial Form 460 Campaign Disclosure Statements filed. Although amendments were filed on December 31, 2017, and January 8, 2018, to disclose the payees for $4,313 of this amount, the payees and amounts paid were not itemized for another 9 expenditures made totaling $2,344 that were required to be itemized. Reference Exhibit C Mr. Bruno stated he only used personal funds when he didn’t have sufficient funds to pay out of the campaign bank account or didn’t have the campaign credit card or check book with him. He added that a lack of education and full understanding of the requirements led to these errors. LIST OF EXHIBITS EXHIBIT A – FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED/NOT TIMELY FILED EXHIBIT B – FORM 497 CONTRIBUTION REPORTS NOT FILED EXHIBIT C – EXPENDITURES NOT ITEMIZED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS EXHIBIT A - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED/NOT TIMELY FILED Date Days Statement Period Receipts Expenditures Filed Late 1. 01/01/16 - 06/30/16 $ 2,258 $ 1,970 2. 07/01/16 - 09/24/16 13,935 8,702 10/11/16 12 (1) 3. 09/25/16 - 10/22/16 4,430 8,515 03/24/17 148 (2) 4. 10/23/16 - 12/31/16 3,310 4,618 03/24/17 52 (3) (1) The statement was filed electronically on 10/10/16. (2) The statement was filed electronically on 11/07/16. (3) The statement was filed electronically on 3/14/17. Franchise Tax Board Audit Report – Baron P. Bruno/Bruno for 62nd Assembly CA 2016 Page 4 of 4 EXHIBIT B - FORM 497 CONTRIBUTION REPORTS NOT FILED Date Received Contributor Amount 1. 06/06/16 * Baron Bruno $ 1,035 (1) 2. 08/19/16 * Baron Bruno 1,035 (1) 3. 09/01/16 Speiser Trust Agreement 2,600 (2) 4. 09/05/16 * Baron Bruno 1,033 (1) 5. 09/08/16 * Baron Bruno 1,433 (1) 6. 10/15/16 * Baron Bruno 1,169 (1) 7. 10/21/16 * Baron Bruno 2,000 (1) 8. 11/04/16 * Baron Bruno 1,000 (1) Total $ 11,305 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. (1) Amount reported as loans to the Committee. (2) Date of check was 09/1/16 and date of deposit was 9/12/16. EXHIBIT C - EXPENDITURES NOT ITEMIZED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Date Made Payee Amount 1. 06/28/16 Serving Those Who Rock $ 117 2. 07/20/16 Boa Restaurant 106 3. 07/29/16 Los Angeles County Registrar/Recorder 146 4. 08/28/16 On the Waterfront Café 128 5. 09/04/16 Larry's 116 6. 09/08/16 Alex Allen 450 7. 09/08/16 Victor Bradford 850 8. 09/22/16 C & O - Trattoria 316 9. 10/23/16 Yard House 115 Total $ 2,344 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: SAM Action, Inc., a Committee Against Proposition 64 with Help from Citizens (Nonprofit 501 (C)(4)) (1387789) January 1, 2016 through December 13, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that supported or opposed one or more state measures and spent more than $10,000 were subject to audit. The audit, performed by the Political Reform Audit Program of the Franchise Tax Board, was limited to the verification of transactions other than those considered in a Fair Political Practices Commission (FPPC) investigation and further stipulated to by SAM Action, Inc., a Committee Against Proposition 64 with Help from Citizens (Nonprofit 501 (C)(4)) (1387789) in the Stipulation, Decision, and Order, FPPC Case No. 16/19641, approved on April 20, 2017. The Franchise Tax Board’s audit was performed using generally accepted auditing standards and the auditing standards set by the FPPC. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the FPPC, the Secretary of State, and the Attorney General on July 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was a primarily formed ballot measure committee opposing Proposition 64 in the 2016 General Election. The Committee terminated effective December 13, 2016. TREASURERS: Jeffrey Zinsmeister SAM Action, Inc. David Bauer (08/01/16 – 09/07/16) David Bauer & Co. Franchise Tax Board Audit Report – SAM Action, Inc., a Committee Against Proposition 64 with Help from Citizens (Nonprofit 501 (C)(4)) Page 2 of 2 REPRESENTATIVE: Kevin Sabet-Sharghi SAM Action, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 1,364,000 Total Expenditures: $ 1,364,000 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in the FPPC investigation, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 31, 2018. CAMPAIGNS PERIOD COVERED 1. Emergency Doctors and Building Trades for Arambula for 01/01/16 – 04/23/16 Assembly 2016 (1383063) 2. Healthcare Providers for the Central Valley supporting Arambula and 01/01/16 – 04/23/16 opposing Olivier for Assembly 2016, sponsored by doctors and dentists organizations (1382900) 3. Million Voter Project Action Fund – Yes on 55 and 57, Sponsored by Social 01/01/16 – 12/31/16 Justice Organizations (1384591) (formerly Million Voter Project Action Fund, Sponsored by Social Justice Organizations) 4. NextGen CA Committee (1385903) 01/01/16 – 06/30/16 (formerly NextGen California to support Jim Beall for State Senate 2016) 5. Valley Neighborhoods United to Support Jim Beall and Oppose Nora 01/01/16 – 12/31/16 Campos for Senate 2016 (1385499) NFINDEX 07/31/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Steve G. Fox Steve Fox for Assembly 2016 (1375246) 2. Isaac J. Galvan Galvan for Senate 2016 (1379950) 3. Volunteers for Yes on 62 (1390529) INDEX 08/31/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Steve G. Fox Steve Fox for Assembly 2016 (1375246) January 1, 2015 through December 28, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on August 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Assembly Member Steve G. Fox, a candidate for Assembly, District 36, in the 2016 General Election. The Committee terminated effective December 28, 2016. TREASURER: Sharon Fox FINANCIAL ACTIVITY Total Contributions Received: $ 152,927 Total Expenditures: $ 157,465 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Steve G. Fox/Steve Fox for Assembly 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State (SOS) for 3 contributions received totaling $85,400. Reports were filed with the SOS between 1 and 8 days late for 4 contributions received totaling $12,500. Reports were overstated and understated by $4,000 and $900, respectively. Reports were timely filed for 16 contributions received totaling $46,650. Reference Exhibit A The Form 460 Semi-annual Statement for the period October 23 through December 28, 2016, was not filed in paper format with the SOS. Receipts and expenditures for the period totaled $8,817 and $14,013, respectively. The Form 460 Semi-annual Statement was timely filed in electronic format. MONETARY CONTRIBUTIONS RECEIVED Monetary contributions totaling $6,170 received from 7 contributors were not disclosed on the Form 460 Campaign Disclosure Statements filed for the audit period. Of this amount, contributions totaling $5,500 from 2 contributors were disclosed on Form 497 Contribution Reports. Reference Exhibit B EXPENDITURES Expenditures were understated by $23,349 on Form 460 Preelection Statements filed for the period July 1 through October 22, 2016. The expenditures were reported on the Form 460 Semi-annual Statement filed electronically for the period ending December 31, 2016. CANDIDATE’S COMMENT Mr. Fox stated that there was some confusion as to whether he should use the Form 460 or the Form 497. He further stated that all expenditures and contributions were listed on either Forms 460 or Forms 497 filed with the Secretary of State. Franchise Tax Board Audit Report – Steve G. Fox/Steve Fox for Assembly 2016 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED Date Received Contributor Amount 1. 11/22/15 ** Steve Fox Attorney at Law Bar No. 170879 $ 33,000 2. 11/22/15 ** Steve Fox 51,000 3. 11/03/16 * Steve Fox Attorney at Law Bar No. 170879 1,400 Total $ 85,400 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. ** Reported on the Form 460 as received on 12/01/15. EXHIBIT B - CONTRIBUTIONS RECEIVED NOT DISCLOSED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Check Date Contributor Amount 1. 08/01/15 Brian R. Johnson $ 100 2. 08/13/15 Manuel J. Magana 100 3. 08/24/15 Marie Brown 100 4. 08/24/15 Margo Doll 120 5. 04/18/16 * BCP Commercial Properties, LLC 2,500 6. 07/25/16 Los Angeles/Orange Counties Building 250 and Construction Trades Council 7. 09/23/16 * UA Journeymen & Apprentices 3,000 Local # 250 Total $ 6,170 * Contributions disclosed on a Form 497 Contribution Report. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Isaac J. Galvan Galvan for Senate 2016 (1379950) January 1, 2015 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit for the period July 1, 2016 through December 31, 2016 is authorized under Section 90003 of the California Government Code. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on August 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Isaac J. Galvan, a candidate for State Senate, District 35, in the 2016 Presidential Primary Election. TREASURER: Isaac J. Galvan REPRESENTATIVE: Gary Crummitt Crummitt & Associates Franchise Tax Board Audit Report – Isaac J. Galvan/Galvan for Senate 2016 Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 225,643 Total Expenditures: $ 235,042 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks or other records were not provided for contributions totaling $8,400 reported as received from 2 contributors on the Form 460 Semi-annual Statement filed for the period ending December 31, 2015. The contributions were reported as $4,200 each received from Mirabux Inc. on December 29, 2015, and Businessrocket.Net, Inc. on December 30, 2015. These contributions were not deposited into the campaign bank account. They were reported as “check not deposited” on Schedule E of the Form 460 Preelection Statement filed for the period ending May 21, 2016. Copies of bank statements or other documents were not provided to verify the source of a $12,000 loan reported as received from the candidate on December 30, 2015. A copy of the check from the candidate was provided. Receipts and/or invoices were not maintained for expenditures made totaling $29,901, including a copy of a $12,000 cashier’s check purchased on July 28, 2016, from the campaign bank account. A bank statement and a copy of the bank issued debit memo were provided but the debit memo did not state the payee of the cashier’s check. An invoice or valuation letter was not maintained for a $3,000 nonmonetary contribution of fundraising event expenses reported as received from Albert Robles for Mayor 2017 on September 29, 2015. Franchise Tax Board Audit Report – Isaac J. Galvan/Galvan for Senate 2016 Page 3 of 3 MONETARY CONTRIBUTIONS RECEIVED An $8,400 contribution received from Galvan for Compton City Council 2013 (1357222) on October 5, 2015, via credit card was not attributed to specific contributors to Galvan for Compton City Council 2013. No records for attribution were provided. The lack of records precluded verification of the source of the contributions and precluded the determination of whether contribution limits were exceeded. No transfers or disbursements from Galvan for Compton City Council 2013 to Galvan for Senate 2016 were reported by Galvan for Compton City Council 2013 (1357222) during the period ending December 31, 2015. Occupation and employer information was not disclosed for contributions totaling $16,800 received from 4 individuals. A record of this information was not maintained and the contributions were not returned. CANDIDATE’S COMMENTS Mr. Galvan did not provide comments. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Volunteers for Yes on 62 (1390529) January 1, 2016 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that supported or opposed one or more state measures and spent more than $10,000 were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on August 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was a primarily formed ballot measure committee supporting Proposition 62 in the 2016 General Election. The Committee terminated effective May 24, 2017. TREASURER: Corrina Clover Miller REPRESENTATIVE: Leilani Rudow Beaver Kaufman Legal Group Franchise Tax Board Audit Report – Volunteers for Yes on 62 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $147,949 Total Expenditures: $152,581 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS A Form 497 Contribution Report was not filed with the Secretary of State for an $11,131 nonmonetary contribution received from Triple O on December 30, 2016. A report was filed 7 days late on November 8, 2016, the date of the General Election, for a $74,951 contribution made on October 31, 2016, to Yes on 62, No on 66, Replace the Costly, Failed Death Penalty System, Sponsored by Taxpayers for Sentencing Reform. Reports were timely filed for contributions received totaling $38,845. TREASURER’S COMMENT Ms. Beaver stated that the $11,131 nonmonetary contribution, received seven weeks after the election, was disclosed on the Form 460 Semi-annual Statement filed only two weeks after the Form 497 Contribution Report was due. Ms. Beaver further stated that the $74,951 contribution made was timely reported by the recipient and this this information was available to the public prior to the election. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on August 31, 2018. CAMPAIGNS PERIOD COVERED 1. Efrain M. Aceves EM Aceves for Judge 2016 (1379049) 01/01/15 – 12/31/16 2. Overturn Citizens United, Yes on 59 (1386909) 01/01/16 – 12/28/16 3. Susan Jung Townsend Susan Jung Townsend for Judge 2016 (1377866) 01/01/15 – 12/31/16 4. David E. Wolf David Wolf for Judge 2016 (1378784) 01/01/15 – 06/30/16 5. Cory J. Woodward Committee to Re-Elect Judge Cory Woodward 2016 (1383989) 01/01/16 – 11/12/16 6. Voters First, Not Special Interests – Sponsored by Hold Politicians 01/01/15 – 12/31/16 Accountable (1381029) (formerly Yes on 54 – Voters First, Not Special Interests – Sponsored by Hold Politicians Accountable) NFINDEX 08/31/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Californians in Support of Mike Antonovich State Senate 2016 (1384178) 2. Committee to Elect Joaquin Arturo Revelo Judge, 2016, Seat Number 34 (1382645) POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Joaquin Arturo Revelo Committee to Elect Joaquin Arturo Revelo Judge, 2016, Seat Number 34 (1382645) January 1, 2016 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Superior Court offices were randomly selected by the Fair Political Practices Commission. Candidates for selected offices who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on September 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Joaquin Arturo Revelo, a candidate for Superior Court Judge, Kern County, in the 2016 Presidential Primary Election. The Committee terminated effective July 30, 2016. TREASURER: David L. Kelly FINANCIAL ACTIVITY Total Contributions Received: $ 18,919 Total Expenditures: $ 18,919 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Joaquin Arturo Revelo/Committee to Elect Joaquin Arturo Revelo Judge, 2016, Seat Number 34 Page 2 of 2 FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks or credit card authorizations, and duplicate deposit slips were not maintained for contributions received totaling $6,254. The Committee’s bank statements were provided. Of this amount, $3,769 was reported as loans received from the candidate; however, the source of these funds could not be verified. The lack of records precluded the determination of whether contributions of $100 or more were received in cash and if other Form 497 Contribution Reports were required to be filed. Receipts and/or invoices were not maintained for expenditures made totaling $18,629. Canceled checks and bank statements were maintained to verify the names of the payees and the amounts paid. TREASURER’S COMMENTS Mr. Kelly did not provide comments. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Californians in Support of Mike Antonovich State Senate 2016 (1384178) January 1, 2016 through December 13, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Committees that spent more than $10,000 and primarily supported or opposed a candidate for a legislative office being audited were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on September 28, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was a primarily formed committee supporting Michael D. Antonovich, a candidate for State Senate, District 25, in the 2016 General Election. The Committee terminated effective December 13, 2016. TREASURER: Shelley Levine FINANCIAL ACTIVITY Total Contributions Received: $ 100,000 Total Expenditures: $ 113,411 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Californians in Support of Mike Antonovich State Senate 2016 Page 2 of 3 FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING A copy of the contributor’s check was not maintained for a $100,000 contribution reported as received from DeAnza Properties on April 4, 2016. A check register, a duplicate deposit slip, and a bank statement were provided. Receipts and/or invoices were not maintained for expenditures made totaling $25,627. Canceled checks, bank statements, and a check register were provided. A canceled check or an electronic image was not provided for a $9,000 payment reported as made to Integrated Political Strategies on November 16, 2016. REPORTS AND STATEMENTS An amendment to the Form 410 Statement of Organization was not filed with the Secretary of State (SOS) to indicate that the Committee was sponsored by De Anza Building and Maintenance and also to include the name of the sponsor as part of the name of the Committee. Based on contributions reported by the Committee, De Anza Building and Maintenance provided more than 80 percent of the contributions received by the Committee. De Anza Building and Maintenance reported making contributions totaling $180,000 to this Committee on filings with the SOS for this period. Form 460 Campaign Disclosure Statements were not filed or were not timely filed with the SOS in paper format. Form 460 Campaign Disclosure Statements were filed in electronic format for the periods January 1 through September 24, 2016, and from November 6 through December 13, 2016. Reference Exhibit A Form 497 Contribution Reports were not timely filed with the SOS for 2 contributions received totaling $13,000. The contributions were received prior to the election but reported on November 13, 2016, after the election. Reports were timely filed for 2 contributions received totaling $180,000. Date Days Received Contributor Amount Late 1. 10/18/16 Fieldstead & Company $ 10,000 25 2. 11/01/16 Margaret A. Perenchio 3,000 11 Total $ 13,000 Franchise Tax Board Audit Report – Californians in Support of Mike Antonovich State Senate 2016 Page 3 of 3 COMMITTEE BANK ACCOUNT A $3,500 cash withdrawal was made from the campaign bank account on April 6, 2016. Receipts and/or invoices were not provided to verify the expenditures made with these funds. The lack of these records precluded the determination of whether expenditures of $100 or more were made in cash and whether additional independent expenditures were required to be reported on Form 496 Late Independent Expenditure Reports. TREASURER’S COMMENT Ms. Levine did not provide a comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on September 28, 2018. CAMPAIGNS PERIOD COVERED 1. CA Business PAC, sponsored by CA Chamber of Commerce 01/01/16 – 12/31/16 (aka CALBUSPAC) (761010) (formerly CA Business PAC, sponsored by CA Chamber of Commerce (aka CALBUSPAC) – No on Proposition 53) 2. NO On 56 – STOP THE SPECIAL INTEREST TAX GRAB. MAJOR 01/01/16 – 12/31/16 FUNDING BY PHILIP MORRIS USA INC. AND R.J. REYNOLDS TOBACCO COMPANY, WITH A COALITION OF TAXPAYERS, EDUCATORS, HEALTHCARE PROFESSIONALS, LAW ENFORCEMENT, LABOR, AND SMALL BUSINESSES (1386637) 3. STOP BLANK CHECKS (1376040) 01/01/15 – 12/31/16 (formerly Yes ON 53 – STOP BLANK CHECKS) 4. Yes on 58, Californians for English Proficiency sponsored by teachers and 01/01/16 – 06/30/16 service employees organizations (1386477) NFINDEX 09/28/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Bill Brough State Assembly 2016 (1373595) INDEX 10/31/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: William P. “Bill” Brough Bill Brough State Assembly 2016 (1373595) January 1, 2014 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Assembly districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on October 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Assembly Member William P. “Bill” Brough, District 73. Mr. Brough was re-elected in the 2016 General Election. The Committee terminated effective June 30, 2017. TREASURER: Jen Slater Campaign Compliance Group, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 502,207 Total Expenditures: $ 512,263 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – William P. “Bill” Brough/Bill Brough State Assembly 2016 Page 2 of 2 FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. EXPENDITURES Campaign funds totaling $3,572 were used for personal purposes. These expenses, which were paid with the campaign debit card, were incurred between July 4 and July 11, 2016, on a trip to Paris, France. The payees, descriptions, and amounts for payments of $100 or more were not itemized on the Form 460 Preelection Statement filed for the period ending September 24, 2016; instead, the candidate was disclosed as the payee for the total of these expenses. The expenses were reimbursed by the candidate on September 22, 2016. Reference Exhibit A Ms. Slater stated that the expenditures were for travel costs incurred prior to a California Legislative Irish Caucus trip. Ms. Slater added that a campaign attorney subsequently determined that Committee funds could not be used to pay for these expenses. EXHIBIT A - PERSONAL USE OF CAMPAIGN FUNDS Date Payee Amount 1. 07/04/16 Aerling 2nnben Brou Dublin $ 1,744 2. 07/04/16 Aga International NL Elvia Insuran 43 3. 07/06/16 AirBNB Inc 455 4. 07/06/16 Viator Tours and Attrac 789 5. 07/10/16 Café de Flore 205 6. 07/10/16 Moulin Rouge 46 7. 07/11/16 La Fregate 56 8. 07/11/16 Le Balzac 114 9. Unknown Unknown 120 Total $ 3,572 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on October 31, 2018. CAMPAIGNS PERIOD COVERED 1. AMERICAN PROGRESSIVE BAG ALLIANCE, A PROJECT OF THE 01/01/14 – 12/31/16 SOCIETY OF THE PLASTICS INDUSTRY (NON-PROFIT 501(c)(6)), YES ON 65 AND NO ON 67 (1372902) 2. Susan Bonilla for Senate 2015 (1374544) 01/01/15 – 06/30/15 3. Susan Bonilla for Senate 2016 (1368171) 01/01/14 – 06/30/15 4. Susan Bonilla Assembly 2014 Officeholder Account (1376103) 01/01/15 – 06/30/15 5. Fight Cancer – Yes on 56, sponsored by American Cancer Society, Inc. 01/01/16 – 12/31/16 and American Cancer Society Cancer Action Network, Inc. (1383858) 6. Los Angeles Police Protective League Issues PAC (1336580) 01/01/16 – 12/31/16 (formerly Los Angeles Police Protective League Issues PAC – Yes on 66, No on 57) 7. Save the Bay Action Fund PAC (1389817) 01/01/16 – 12/31/16 (formerly Save the Bay Action Fund Committee to Support Proposition 67) NFINDEX 10/31/18 Page 1 of 2 8. Community College Facility Coalition Issues Committee, Yes on 51 07/01/15 – 12/31/16 (1220380) NFINDEX 10/31/18 Page 2 of 2 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Khatchik “Chris” Chahinian Chris Chahinian for State Senate 2016 (1380368) 2. Javier Perez Javier Perez for Judge 2016 (1379474) INDEX 11/30/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Javier Perez Javier Perez for Judge 2016 (1379474) January 1, 2015 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Superior Court offices were randomly selected by the Fair Political Practices Commission. Candidates for selected offices who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on November 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Javier Perez, a candidate for Superior Court Judge, Los Angeles County, in the 2016 General Election. The Committee terminated effective December 31, 2016. TREASURERS: Jane Leiderman Leiderman & Associates, Inc. David L. Gould (08/25/15 – 03/27/16) Gould & Orellana, LLC Franchise Tax Board Audit Report – Javier Perez/Javier Perez for Judge 2016 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 212,716 Total Expenditures: $ 211,554 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Documents were not provided to verify the source of a $9,000 cash deposit on December 28, 2015, into the candidate’s personal bank account prior to the candidate writing a $9,000 check on December 29, 2015, as a loan to the Committee. Copies of the deposit slip, the bank statement, and the check written to the Committee were provided. Mr. Perez stated that he deposited cash that he had on hand and that it belonged to him. For contributions received examined, copies of contributors’ checks or credit card authorization forms were not maintained for contributions totaling $6,000 reported as received from 2 contributors. Bank statements were maintained. Ms. Leiderman did not provide a comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Khatchik “Chris” Chahinian Chris Chahinian for State Senate 2016 (1380368) January 1, 2015 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on November 30, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Khatchik “Chris” Chahinian, a candidate for State Senate, District 25, in the 2016 Presidential Primary Election. The Committee terminated effective June 30, 2016. TREASURER: Shahe Guiragossian FINANCIAL ACTIVITY Total Contributions Received: $ 59,262 Total Expenditures: $ 59,262 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Khatchik “Chris” Chahinian/Chris Chahinian for State Senate 2016 Page 2 of 4 FINDINGS AND RESPONSES OPINION The filers, in our opinion, have not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Copies of contributors’ checks, credit card authorization records, and/or duplicate deposit slips were not maintained for contributions received totaling $37,152. Of this amount, $23,986 was reported as loans received from the candidate. Copies of bank statements or other documents were not provided to verify the source of these loans. In addition, the lack of records precluded the determination of whether Form 497 Contribution Reports were required to be filed with the Secretary of State (SOS) for 7 contributions totaling $26,987 reported as received during the 24-hour reporting period. No Form 497 Contribution Reports were filed. Reference Exhibit A Receipts, invoices, vouchers, and/or check registers were not maintained for expenditures made totaling $44,577. Canceled checks were not maintained for expenditures made totaling $34,403. The lack of records precluded the determination of whether accrued expenses and subvendors were required to be disclosed. REPORTS AND STATEMENTS Three Form 460 Campaign Disclosure Statements were not timely filed with the SOS in paper format. Reference Exhibit B CAMPAIGN BANK ACCOUNT Contributions received totaling $24,008 and expenditures made totaling $22,201 were not processed through the Committee’s designated campaign bank account with Wells Fargo Bank. The activity was processed through a second bank account opened with Umpqua Bank on January 19, 2016, and closed on March 29, 2016. MONETARY CONTRIBUTIONS RECEIVED Occupation and/or employer information was not disclosed for contributions totaling $16,810 received from 34 individuals. Of this amount, records with the information were not maintained for contributions totaling $14,510 received from 29 individuals, and contributions totaling $14,410 received from 28 of these individuals were not returned. Franchise Tax Board Audit Report – Khatchik “Chris” Chahinian/Chris Chahinian for State Senate 2016 Page 3 of 4 CANDIDATE’S COMMENT Mr. Chahinian stated that this was his and his treasurer’s first experience with campaign finance rules and regulations, adding that it was not easy and the requirements were confusing. He further stated that they did their best to gather the required documents and comply. LIST OF EXHIBITS EXHIBIT A - CONTRIBUTIONS REPORTED RECEIVED FOR WHICH FORM 497 CONTRIBUTION REPORTS WERE NOT FILED EXHIBIT B - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT TIMELY FILED Franchise Tax Board Audit Report – Khatchik “Chris” Chahinian/Chris Chahinian for State Senate 2016 Page 4 of 4 EXHIBIT A - CONTRIBUTIONS REPORTED RECEIVED FOR WHICH FORM 497 CONTRIBUTION REPORTS WERE NOT FILED Date Received Contributor Amount Reported Reported Reported 1. 03/28/16 Chris Chahinian $ 5,000 2. 03/29/16 Chris Chahinian 3,673 3. 04/21/16 Armen Musadaryan 1,000 4. 04/21/16 Moris Musharbash 1,000 5. 04/21/16 Grigor Sedrakyan 1,000 6. 05/19/16 Chris Chahinian 3,250 7. 06/06/16 Chris Chahinian 12,064 Total $ 26,987 EXHIBIT B - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT TIMELY FILED Days Statement Period Receipts Expenditures Date Due Date Filed Late 01/01/15 - 12/31/15 $ 3,907 $ 2,764 02/01/16 05/10/16 99 (1) 01/01/16 - 04/23/16 36,908 36,225 04/28/16 05/10/16 12 (2) 04/24/16 - 05/21/16 7,328 6,179 05/26/16 06/17/16 * 22 *Filed after the Primary Election. (1) A Form 460 Quarterly Statement was filed on 11/02/15 for the period 07/01/15 - 09/30/15. Receipts and expenditures totaling $3,150 and $1,919 were reported. The statement for the period ending 12/31/15 was timely filed in electronic format. (2) Initially, a Form 460 Quarterly Statement was filed on 05/10/16 for the period 01/01/16 - 03/31/16. Receipts and expenditures totaling $32,681 and $21,757 were reported. An amendment was filed on 06/22/16, after the election, to correct the ending date and to report the activity through 04/23/16. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on November 30, 2018. CAMPAIGNS PERIOD COVERED 1. Apartment Association of Orange County PAC (980470) 01/01/15 – 12/31/16 (Formerly Multi-County Rental Housing PAC sponsored by Apartment Assn of Orange County) 2. The California Academy of Physician Assistants PAC (981553) 01/01/15 – 12/31/16 3. Californians for a 21st Century Economy, A Ricardo Lara Ballot Measure Committee (1374153) 01/01/16 – 12/31/16 (formerly Californians for a 21st Century Economy – Yes on 58, A Ricardo Lara Ballot Measure Committee) 4. James A. Kaddo Re-Elect Superior Court Judge James Kaddo 2016 (1384077) 01/01/16 – 06/30/16 5. Los Angeles County Firefighters Local 1014 Legislative Fund Committee (742008) 01/01/15 – 12/31/16 6. United Agribusiness League PAC (861050) 01/01/15 – 12/31/16 7. Aaron J. Weissman Aaron Weissman for Superior Court Judge 2016 (1375133) 01/01/15 – 06/30/16 NFINDEX 11/30/18 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Stepan W. Baghdassarian Friends of Stepan Baghdassarian for Judge 2016 (1383521) 2. Steven C. Bradford Steven Bradford for Senate 2016 (1354953) INDEX 12/31/18 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Steven C. Bradford Steven Bradford for Senate 2016 (1354953) c/o Kaufman Legal Group January 1, 2013 through December 31, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. State Senate districts were randomly selected by the Fair Political Practices Commission. Candidates in selected districts who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on December 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by State Senator Steven C. Bradford, District 35. Mr. Bradford was elected in the 2016 General Election. TREASURER: Steven C. Bradford REPRESENTATIVE: Leilani Rudow Beaver Kaufman Legal Group Franchise Tax Board Audit Report – Steven C. Bradford/Steven Bradford for Senate 2016 Page 2 of 5 FINANCIAL ACTIVITY Total Contributions Received: $ 1,491,348 Total Expenditures: $ 1,514,862 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. FINDINGS AND RESPONSES OPINION Except as indicated in this Audit Report, the filers have, in our opinion, substantially complied with the disclosure and recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. REPORTS AND STATEMENTS Form 497 Contribution Reports were filed between 8 and 60 days late with the Secretary of State (SOS) for 4 contributions received totaling $26,200. Form 497 Contribution Reports were timely filed for 207 other contributions received totaling $586,872. Reference Exhibit A Form 497 Contribution Reports were not filed or were not timely filed with the SOS for 4 contributions made totaling $5,404. Form 497 Contribution Reports were timely filed for 6 other contributions made totaling $11,850. Reference Exhibit B Ms. Beaver stated that the Committee made its best efforts to disclose all contributions on a timely basis. She added that for contributions received, the information was available to the public on Form 460 Campaign Disclosure Statements or Form 497 Contribution Reports filed prior to the applicable elections. She further stated that for contributions made, the information was disclosed by the recipient committees prior to the applicable elections. MONETARY CONTRIBUTIONS RECEIVED Contributions received from 5 contributors exceeded the contribution limits by $8,000. A total of $9,700 was refunded to the contributors between 4 and 63 days after the contributions in excess of the limits were received. Reference Exhibit C Ms. Beaver stated that the Committee refunded all excess contributions prior to the elections and the contributions were not used by the Committee for campaign expenditures. Franchise Tax Board Audit Report – Steven C. Bradford/Steven Bradford for Senate 2016 Page 3 of 5 LIST OF EXHIBITS EXHIBIT A – FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED FOR CONTRIBUTIONS RECEIVED EXHIBIT B – FORM 497 CONTRIBUTION REPORTS NOT FILED OR NOT TIMELY FILED FOR CONTRIBUTIONS MADE EXHIBIT C – CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Franchise Tax Board Audit Report – Steven C. Bradford/Steven Bradford for Senate 2016 Page 4 of 5 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT TIMELY FILED FOR CONTRIBUTIONS RECEIVED Date Date Days Received Contributor Amount Filed Late 1. 05/01/14 Southern California Pipe Trades District Council $ 8,200 07/14/14 60 #16 Political Action Committee ID#760715 2. 05/24/16 Ernst & Young LLP Cal. PAC ID782408 1,000 06/02/16 8 3. 07/18/16 Peace Officers Research Association of California 8,500 08/22/16 21 Political Action Committee (PORAC PAC) Small Contributor Committee 4. 08/24/16 American Federation of State, County & Municipal 8,500 09/26/16 32 Employees - CA People Small Contributor Committee Total $ 26,200 EXHIBIT B - FORM 497 CONTRIBUTION REPORTS NOT FILED OR NOT TIMELY FILED FOR CONTRIBUTIONS MADE Date Date Days Made Recipient Amount Filed Late 1. 10/27/14 Ben Allen for Senate 2014 $ 1,000 02/05/15 100 2. 10/27/14 Jim Cooper for Assembly 2014 1,000 02/05/15 100 3. 02/27/16 California Democratic Party 2,404 (1) 4. 10/24/16 * Michael Tubbs for Stockton Mayor 2016 1,000 (2) Total $ 5,404 * Date cumulative contributions made met the $1,000 reporting threshold. (1) Assembly District 31 Special Primary Election: 04/05/16 24-Hour Reporting Period: 01/06/16 - 04/05/16 (2) City of Stockton Municipal General Election: 11/08/16 24-Hour Reporting Period: 08/10/16 - 11/08/16 Franchise Tax Board Audit Report – Steven C. Bradford/Steven Bradford for Senate 2016 Page 5 of 5 EXHIBIT C - CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Date Amount Date Contributor Exceeded Excess Refunded Refunded 1. Los Angeles Airport Peace Officers 05/12/14 $ 3,700 $ 3,900 (1) 07/14/14 Association PAC 2. California Nurses Association Political 03/19/15 200 200 04/13/15 Action Committee (CNA PAC) Small Contributor Committee 3. PG&E Corporation 05/21/15 (2) 600 600 05/27/15 4. Verizon Communications, Inc. and It's 07/25/16 (2) 2,300 2,500 (3) 08/15/16 Affiliates 5. Brian Kabateck 10/21/16 1,200 2,500 (3) 10/25/16 Totals $ 8,000 $ 9,700 (1) The amount in excess of the 2013/2014 limits was refunded. (2) Date reported as received. (3) The entire amount of the contribution received that caused the excess was refunded. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Stepan W. Baghdassarian Friends of Stepan Baghdassarian for Judge 2016 (1383521) January 1, 2016 through June 30, 2016 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Superior Court offices were randomly selected by the Fair Political Practices Commission. Candidates for selected offices who raised or spent $15,000 or more were subject to audit. The audit was performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on December 31, 2018. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Stepan W. Baghdassarian, a candidate for Superior Court Judge, Los Angeles County, in the 2016 Presidential Primary Election. The Committee terminated effective July 13, 2016. TREASURER: Stepan W. Baghdassarian FINANCIAL ACTIVITY Total Contributions Received: $ 22,724 Total Expenditures: $ 27,999 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper and/or electronic format with the Secretary of State for the period indicated above. Franchise Tax Board Audit Report – Stepan W. Baghdassarian/Friends of Stepan Baghdassarian for Judge 2016 Page 2 of 2 FINDINGS AND RESPONSES OPINION The filer, in our opinion, has not substantially complied with the disclosure and/or recordkeeping provisions of the Political Reform Act (Government Code Section 81000 et seq.) and related rules and regulations of the Fair Political Practices Commission. RECORDKEEPING Bank statements or other documents were not provided to verify the source of a $5,000 loan reported as received from the candidate. A copy of the check was provided. Copies of contributors’ checks and duplicate deposit slips were not maintained for contributions received totaling $3,848. Bank statements were provided. Receipts and/or invoices were not maintained for expenditures made totaling $22,558. In addition, canceled checks were not provided for $17,880 of these expenditures. Bank statements were provided. REPORTS AND STATEMENTS Form 497 Contribution Reports were not filed with the Secretary of State for 6 contributions received totaling $10,000. A valuation letter, invoice, or other source document was not provided for a $3,000 nonmonetary contribution of a reception reported as received from Gary Taglyan on May 24, 2016. The lack of records precluded the determination of whether a Form 497 Contribution Report was required to be filed. No other reports were required to be filed. Date Received Contributor Amount 1. 03/11/16 Stepan W. Baghdassarian $ 5,000 (2) 2. 04/18/16 Bobken Amirian 1,000 3. 05/02/16 B&H Foods, Inc. 1,000 (3) 4. 05/02/16 Milton Group, Inc. 1,000 (3) 5. 05/20/16 Haig Armaghanian 1,000 (1) 6. 05/31/16 Silvias Costumes 1,000 (3) Total $ 10,000 (1) Date cumulative contributions met the $1,000 reporting threshold. (2) Loan reported as from the candidate. (3) Date reported as received. CANDIDATE’S COMMENT The candidate did not provide a comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR SUBSTANTIALLY ACCURATE AND COMPLETE FILINGS AUDIT AUTHORITY, SCOPE, AND RESULTS The filings, records, and documentation of the filers listed below were audited in accordance with Section 90001 of the California Government Code. The audits were performed by the Political Reform Audit Program of the Franchise Tax Board using generally accepted auditing standards and the auditing standards set by the Fair Political Practices Commission. This included tests of disclosure, accounting records, and other auditing procedures considered necessary. The examinations indicate that the statements and/or reports filed, for the periods covered, were substantially accurate and complete. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on December 31, 2018. CAMPAIGNS PERIOD COVERED 1. Alicia Molina Alicia Molina for Judge 2016 (1382240) 01/01/16 – 12/31/16 2. Joaquin Arambula Dr. Joaquin Arambula for Assembly 2016 (1376879) 01/01/15 – 04/23/16 3. Joaquin Arambula Dr. Joaquin Arambula for Assembly 2016 Special Election (1381864) 01/01/16 – 04/23/16 4. Catharine Bailey Baker Catharine Baker for Assembly 2016 (1373797) 01/01/14 – 12/31/16 5. California Calls Action Fund for Schools and Communities First (Nonprofit 501(C)(4)) (1378703) 01/01/16 – 12/31/16 (formerly California Calls Action Fund (Nonprofit 501(C)(4))) 6. Americans for Sensible Reform, Sponsored by Ghost Management Group, LLC dba Weedmaps (1376077) 01/01/15 – 12/31/16 (formerly Californians for Sensible Reform, Sponsored by Ghost Management Group, LLC dba Weedmaps) NFINDEX 12/31/18 Page 1 of 2 7. California Correctional Peace Officers Association Truth in American Government Fund; No on Proposition 62, Yes on Proposition 66 (non- profit 501 (c) 5) (1302403) 01/01/15 – 12/31/16 8. Civic Participation Action Fund – Yes on 57 (Nonprofit 501(C)(4)) (1387575) 01/01/16 – 12/31/16 9. W. Steven Shayer Commissioner Steven Shayer for Judge #20 2016 (1382756) 01/01/16 – 06/30/16 10. Cynthia A. Zuzga Cyndy Zuzga for Judge 2016 (1379830) 01/01/15 – 06/30/16 11. New Approach PAC (MPO) (1382525) 01/01/16 – 12/31/16 12. No on Prop 53 – Californians to Protect Local Control, a coalition of public safety, local government, business and labor organizations, Governor Brown and taxpayers (1378875) 01/01/15 – 12/31/16 (formerly Citizens to Protect California Infrastructure sponsored by business and construction trades organizations) 13. Open Philanthropy Action Fund Yes on 57 (Nonprofit 501(C)(4)) (1391327) 01/01/16 – 11/08/16 14. Superintendent Tom Torlakson’s Invest in California A Ballot Measure Committee to Support Proposition 51 (1282321) 01/01/15 – 12/31/16 15. Yes on 55 – Californians for Budget Stability, Sponsored by Teachers, Health Care Providers, Doctors and Labor Organizations (1381382) 01/01/15 – 12/31/16 16. Yes on 62, No on 66. Replace the Costly, Failed Death Penalty System. Sponsored by Taxpayers for Sentencing Reform. (1380590) 01/01/15 – 12/31/16 17. California Statewide Law Enforcement Association Issues Committee (nonprofit 501 (c) (5)); Yes on Proposition 57 (1346267) 01/01/16 – 12/31/16 18. Yes on Prop. 57, Californians and Governor Brown for Public Safety and Rehabilitation (1382912) 01/01/16 – 12/31/16 (formerly Californians for Public Safety and Rehabilitation) 19. YES ON PROP 60, FOR ADULT INDUSTRY RESPONSIBILITY (FAIR) COMMITTEE, WITH MAJOR FUNDING BY AIDS HEALTHCARE FOUNDATION (1356566) 10/01/14 – 12/31/16 NFINDEX 12/31/18 Page 2 of 2