Salarno for Attorney General 2018; Nina

POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Sonia Aery Friends of Sonia Aery for Assembly 2018 (1403674) 2. Hon Bobby J. Archuleta Bob Archuleta for Senate 2018 (1402965) 3. Kansen Chu Kansen Chu for Assembly 2018 (1393543) 4. James M. Elia James Elia for State Assembly 2018 (1400530) 5. Lorena S. Gonzalez Our Voice Our Vote – Asm. Lorena Gonzalez Ballot Measure Committee (1385557) 6. Peter B. Leroe-Munoz Peter Leroe-Munoz for Assembly 2016 (1377750) 7. Peter B. Leroe-Munoz Peter Leroe-Munoz for Assembly 2018 (1395908) 8. William O. Lipe Bill Lipe for Assembly 2018 (1402104) INDEX 01/29/21 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Peter B. Leroe-Munoz Peter Leroe-Munoz for Assembly 2016 (1377750) January 1, 2017 through October 20, 2017 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. 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Peter B. Leroe-Munoz. Mr. Leroe-Munoz was a candidate for Assembly, District 30, in the 2016 Presidential Primary Election. Mr. Leroe-Munoz filed a Form 501 Candidate Intention Statement for this office on March 2, 2015. However, he withdrew from the election and was not on the ballot. The Committee terminated effective October 20, 2017. TREASURER: Peter B. Leroe-Munoz REPRESENTATIVE: Renee Copeland-Mora River City Business Services Franchise Tax Board Audit Report – Peter B. Leroe-Munoz/Peter Leroe-Munoz for Assembly 2018 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 403 Total Expenditures: $ 42,992 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. SURPLUS CAMPAIGN FUNDS Funds totaling $42,412 were transferred to Peter Leroe-Munoz for Assembly 2018 (1395908) on July 12, 2017, after the funds had become surplus, to support the candidate’s campaign for election to Assembly, District 30, in the 2018 Statewide Direct Primary Election. Mr. Leroe-Munoz stated this was his first campaign for Assembly and he was unaware of the surplus funds provision. He further stated he worked with River City Business Services and his campaign manager and was advised he could transfer the balance of funds from his 2016 committee to his 2018 committee. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Lorena S. Gonzalez Our Voice Our Vote – Asm. Lorena Gonzalez Ballot Measure Committee (1385557) c/o Nancy R. Haley Haley & Company, LLC October 23, 2016 through December 31, 2018 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. 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Assembly Member Lorena Gonzalez, District 80. Ms. Gonzalez was re-elected in the 2020 General Election. TREASURER: Nancy R. Haley REPRESENTATIVE: Leilani Rudow-Beaver Kaufman Legal Group Franchise Tax Board Audit Report – Lorena S. Gonzalez/Our Voice Our Vote – Asm. Lorena Gonzalez Ballot Measure Committee Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 89,700 Total Expenditures: $ 82,069 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. EXPENDITURES Expenditures totaling $8,934 made to Chase Ink Card Services on August 16 and December 4, 2018, were unrelated to a state or local ballot measure. Instead, the expenditures paid for fundraising events supporting Lorena Gonzalez for Assembly 2018 (1392494), the controlling candidate’s re-election committee. Ms. Rudow-Beaver stated the Committee made its best efforts to comply with all applicable campaign finance laws. She further stated that the expenditures at issue related to fundraising events originally conceived as joint events between the Committee and Lorena Gonzalez for Assembly 2018, but ultimately no funds were raised at those events for the Committee and the re- election committee inadvertently failed to provide reimbursement for its share of the costs. Ms. Rudow-Beaver noted that, as a result of the audit, Lorena Gonzalez for Assembly 2020 (1414350) issued a payment to the Committee in the amount of $8,934 for reimbursement of all fundraising expenses at issue. 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 2018 (1393543) January 1, 2017 through December 31, 2018 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Assembly Member Kansen Chu, District 25. Mr. Chu was re-elected in the 2018 General Election. The Committee terminated effective February 27, 2019. TREASURER: Steve Blomquist REPRESENTATIVE: Daisy Chu FINANCIAL ACTIVITY Total Contributions Received: $609,921 Total Expenditures: $536,503 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 – Kansen Chu/Kansen Chu for Assembly 2018 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 497 Contribution Report was not filed with the Secretary of State (SOS) for a $1,000 contribution made to the Alameda County Democratic Central Committee on September 18, 2018. Reports were filed between 7 and 187 days late for 9 contributions received and made totaling $41,800. Reports were timely filed for 152 contributions received and made totaling $448,450. Seven additional 497 Contribution Reports were filed with the SOS, but not required, for contributions made totaling $24,400. Mrs. Chu stated the reports were filed late because of the tough times experienced after the loss of her sister and mother in 2018. She added that the SOS Political Reform Division excused the fine for the late filing of the Form 497 Contribution Reports. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Peter B. Leroe-Munoz Peter Leroe-Munoz for Assembly 2018 (1395908) January 1, 2017 through June 30, 2018 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Peter B. Leroe-Munoz, a candidate for Assembly, District 30, in the 2018 Statewide Direct Primary Election. The Committee terminated effective January 28, 2020. TREASURERS: Peter B. Leroe-Munoz Rita Copeland (04/10/17 - 10/30/18) River City Business Services REPRESENTATIVE: Renee Copeland-Mora River City Business Services Franchise Tax Board Audit Report – Peter B. Leroe-Munoz/Peter Leroe-Munoz for Assembly 2018 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 106,247 Total Expenditures: $ 189,497 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. SURPLUS CAMPAIGN FUNDS Funds totaling $42,412 were received from Peter Leroe-Munoz for Assembly 2016 (1377750) on July 12, 2017, after the funds had become surplus, to support the candidate’s campaign for election to Assembly, District 30, in the 2018 Statewide Direct Primary Election. Ms. Renee Copeland-Mora provided no comment. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: James M. Elia James Elia for State Assembly 2018 (1400530) January 1, 2017 through December 31, 2018 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by James M. Elia, a candidate for State Assembly, District 71, in the 2018 General Election. TREASURER: Sara Kagy FINANCIAL ACTIVITY Total Contributions Received: $ 54,713 Total Expenditures: $ 83,932 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 – James M. Elia/James Elia for State Assembly 2018 Page 2 of 9 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, duplicate deposit slips, valuation letters and/or invoices, source documentation for loans from the candidate, and contributor lists were not provided to verify reported contributions received totaling $19,837. Of this amount, $4,450 was reported as received from the candidate and $5,038 was reported as unitemized contributions of less than $100. The lack of records precluded the determination of whether a Form 497 Contribution Report was required to be filed for a $2,500 contribution reported as received from IBEW Local 47 PAC on June 1, 2018. Bank statements were provided. Receipts and/or invoices were not provided for expenditures made totaling $77,599. Of this amount, copies of canceled checks were provided for expenditures totaling $16,455 and bank statements were provided to verify debit card transactions totaling $52,014. The lack of records precluded the determination of whether any accrued expenses and/or subvendor payments were required to be disclosed. No comment was provided. Records were not maintained for transfers totaling $990 made from the designated campaign bank account. Mr. Elia stated that these were reimbursements for campaign expenses he paid with his personal funds. He added that both of his debit cards were identical and he mixed up the accounts when he made some campaign purchases. He explained he tried to correct the error by transferring Committee funds to his personal account. REPORTS AND STATEMENTS The Form 460 Campaign Disclosure Statements for the period January 1 through December 31, 2018, were not timely filed in paper format with the Secretary of State (SOS). Form 460 Campaign Disclosure Statements for the period April 22 through October 20, 2018, were timely filed in electronic format. This finding was agreed to in the Fair Political Practices Commission Stipulation, Decision and Order, FPPC Case No. 18/1372, approved on April 16, 2020. Reference Exhibit A Mr. Elia stated that he is aware of this issue and has resolved it with the FPPC and paid a penalty. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 3 of 9 A Form 460 Semi-annual Statement for the period ending December 31, 2017, was not filed with the SOS. Receipts and expenditures for the period totaled $5,912 and $3,817, respectively. Of the $5,912 received, $1,900 was required to be itemized. Reference Exhibit B No comment was provided. The beginning and ending cash balances on the Summary Page of the Form 460 Campaign Disclosure Statements were either overstated or understated throughout the audit period. Reference Exhibit C Mr. Elia stated that he believes the cash balance issues were due to his listing contributions received only on the Form 460 or on the Form 497, thus his audit trail was off. He added that he didn’t reconcile amounts because he thought the Form 460 and the Form 497 were separate disclosure filings. Form 497 Contribution Reports were not filed with the SOS for 10 contributions received totaling $22,500. Reports were filed for 6 contributions received totaling $22,200. Reference Exhibit D Mr. Elia stated that he was unaware that he needed to list contributions of $1,000 or more on both the Form 497 Contribution Reports and the Form 460 Campaign Disclosure Statements. He added that he thought it was one or the other, but not both. MONETARY CONTRIBUTIONS RECEIVED Monetary contributions received totaling $29,400 were not disclosed on the Form 460 Campaign Disclosure Statements filed with the SOS for the period January 1 through December 31, 2018. Of this amount, $22,200 was disclosed on Form 497 Contribution Reports filed during the audit period. Reference Exhibit B No comment was provided. Four contributions of $100 or more totaling $6,157 were received in the form of cash. Of this amount, cash totaling $957 was listed on two deposit slips and cashier’s checks in the amounts of $5,000 and $200 were disclosed as received from James Elia (candidate) and Elaine Bacher, respectively. Records to identify the source of the $957 in cash and the $5,000 cashier’s check were not provided. The lack of these records precluded the determination of whether the sources were required to be itemized. Copies of the deposit slips, cashier’s checks, and bank statements were provided. Mr. Elia explained he was aware that cash contributions of $100 or more cannot be accepted, but was unaware that cashier’s checks of $100 or more were also prohibited. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 4 of 9 EXPENDITURES Eleven expenditures totaling $4,378 paid with the Committee’s debit card and/or via bank transfers were not disclosed on the Form 460 Campaign Disclosure Statements filed for the period April 22 through October 20, 2018. Reference Exhibit E No comment was provided. PERSONAL USE Campaign funds totaling $613 were used for personal purposes. Included in this amount was $49 for 6 online purchases of WWE Network and $347 in debit card purchases related to travel to Budapest and Barcelona. Mr. Elia stated that after the election he went on a trip and accidentally used the Committee’s debit card as he took the label off that differentiated his personal debit card from the Committee’s card. LIST OF EXHIBITS EXHIBIT A – FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT TIMELY FILED EXHIBIT B – CONTRIBUTIONS RECEIVED NOT DISCLOSED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS EXHIBIT C – CASH BALANCE DIFFERENCES EXHIBIT D – FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED EXHIBIT E – EXPENDITURES NOT DISCLOSED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 5 of 9 EXHIBIT A - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT TIMELY FILED Date Days Statement Period Receipts Expenditures Filed Late 01/01/18 - 04/21/18 $ 28,850 * $ 19,671 * 04/27/18 1 (1) 04/22/18 - 05/19/18 3,100 * 3,495 * 06/05/19 377 05/20/18 - 06/30/18 6,002 * 6,755 * 06/05/19 309 07/01/18 - 09/22/18 4,018 * 16,818 * 06/05/19 251 09/23/18 - 10/20/18 2,843 * 10,378 * 06/05/19 223 10/21/18 - 12/31/18 9,901 * 26,816 * 06/05/19 125 (2) * The amounts are as reported (rounded up to nearest dollar) on the Form 460 Campaign Disclosure Statements. (1) The electronic statement was filed on June 26, 2018, 61 days late. (2) The electronic statement was filed on May 29, 2019, 118 days late. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 6 of 9 EXHIBIT B - CONTRIBUTIONS RECEIVED NOT DISCLOSED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Deposit 2017 2018 Date Contributor Amount Amount 1. 10/02/17 Harold A. Weisbecker $ 100 $ (1) 2. 11/13/17 Allan C. Goetz 1,000 (1) 3. 11/17/17 Laurel Maxwell Corbett 100 (1) 4. 11/17/17 Anne Porter Finch 500 (1) 5. 11/17/17 Hubert/Kathleen Halkin TTEES 100 (1) 6. 12/11/17 Michael G. Petrivelli 100 (1) 7. 03/02/18 Terry L. Hammett 100 8. 03/08/18 Richard M. Kipperman 250 9. 04/09/18 Ramzi B. Murad 200 10. 04/09/18 Gustavo T. Rios 100 11. 04/09/18 Melinda K. Vasquez 100 12. 05/29/18 United Steelworkers District 12 2,000 13. 08/02/18 Temecula Valley Democrats 450 14. 08/13/18 Law Offices of Douglas L. Applegate 1,000 15. 08/28/18 California Nurses Association PAC (CAN-PAC) 8,800 (2) 16. 09/14/18 Allan C. Goetz 2,000 (2) 17. 09/27/18 HCA-San Diego County 100 18. 09/27/18 Geraldine John 100 19. 09/27/18 Political Action For Classified Employees of 5,000 (2) California School Employees 20. 10/03/18 Allan C. Goetz 1,000 (2) 21. 10/03/18 The Leigh Community Property Trust 500 22. 10/10/18 Alfred Atallah 1,000 23. 10/10/18 Janice Murasko 100 24. 10/22/18 District Council of Iron Workers 1,000 (2) 25. 10/22/18 Sycuan Band of the Kumeyaay Nation 4,400 (2) 26. 10/26/18 Service Employees International Union Local 500 221 PA 27. 10/30/18 Richard M. Kipperman 500 28. 11/02/18 Elaine Bacher (Idyllwild Indivisible) 200 Total $ 1,900 $ 29,400 (1) Form 460 Campaign Disclosure Statement was not filed for period ending December 31, 2017 Contributions received totaling $1,900 were required to be itemized. (2) Contributions received disclosed on Form 497 Contribution Reports. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 7 of 9 EXHIBIT C - CASH BALANCE DIFFERENCES Difference Between Bank and Reported Reported Reported Adjusted Beginning Ending Ending Bank Cash Cash Cash Date Balance Balance * Balance Balance 01/01/18 $ 2,095 $ 0 $ N/A $ 2,095 (1) 04/21/18 5,064 0 9,179 -4,115 05/19/18 3,347 6201 5,807 -2,460 06/30/18 2,243 0 -753 2,996 09/22/18 3,387 9,875 -2,926 6,313 10/20/18 3,976 9,875 2,340 1,636 12/31/18 13 -7,000 -23,915 23,928 * As reported on the Summary Page of Form 460 for the subsequent period. (1) The bank account was opened prior to January 1, 2018; however a Form 460 Campaign Disclosure Statement was not filed for the period ending December 31, 2017. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 8 of 9 EXHIBIT D - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED Date Received Contributor Amount 1. 04/06/18 Allan C. Goetz $ 3,100 2. 04/09/18 IBEW Local 47 PAC 1,000 3. 04/10/18 Sycuan Band of the Kumeyaay Nation 4,400 4. 05/02/18 United Domestic Workers of America Action Fund 2,000 5. 05/29/18 United Steel Workers District 12 2,000 (2) 6. 08/13/18 Law Office of Douglas L. Applegate 1,000 (2) 7. 10/10/18 Alfred Atallah 1,000 (2) 8. 10/20/18 Unable to determine 5,000 (1) 9. 10/26/18 Allan C. Goetz 1,000 10. 10/28/18 Kilian Colin 2,000 Total $ 22,500 (1) Cashier's check reported as a loan received from James M. Elia. (2) Contributions received not reported on Form 460 Campaign Disclosure Statements. Franchise Tax Board Audit Report – James M. Elia/James Elia for State Assembly 2018 Page 9 of 9 EXHIBIT E - EXPENDITURES NOT DISCLOSED ON FORM 460 CAMPAIGN DISCLOSURE STATEMENTS Date Made Payee Amount 1. 05/14/18 FB Mark Lane $ 400 2. 05/15/18 Audio Masters 241 3. 05/18/18 7 Days Tire Shop 150 4. 05/21/18 FB Mark Lane 250 5. 06/04/18 Mobile Banking Transfer to Candidate 750 (1) 6. 06/20/18 Priceline Hotel 292 7. 07/03/18 FB Sara Elia 750 8. 08/01/18 Mobile Banking Transfer to Candidate 545 (2) 9. 09/04/18 Zelle Standard - Sara Kagy 800 10. 10/05/18 Actblue Monica M 100 11. 10/12/18 BT PaulC4Water 100 Total $ 4,378 (1) Mr. Elia stated that this was accidently transferred to his bank account and it was transferred back to the Committee on July 2, 2018. (2) Mr. Elia stated that this was a reimbursement to him for office equipment purchased. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: William O. Lipe Bill Lipe for Assembly 2018 (1402104) January 1, 2018 through June 30, 2018 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Bill Lipe, a candidate for Assembly, District 30, in the 2018 Statewide Direct Primary Election. TREASURER: Gary Crummitt Crummitt & Associates FINANCIAL ACTIVITY Total Contributions Received: $ 211,766 Total Expenditures: $ 220,154 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 O. Lipe/Bill Lipe for Assembly 2018 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. RECORDKEEPING Records of subvendor information were not maintained for media buys made by Berlin Rosen, LTD totaling $91,814. Mr. Crummitt stated subvendor information for Berlin Rosen, LTD was requested, but not received. MONETARY CONTRIBUTIONS RECEIVED Contributions received from 5 contributors exceeded the contribution limits by $14,400. The excess contributions were not returned to the donors. Reference Exhibit A Mr. Crummitt stated the contributions were coded as primary and general election contributions on the Form 460 Campaign Disclosure Statements filed with the Secretary of State, so no contribution limits were exceeded. Auditor Note: The candidate was unsuccessful in the primary election and did not appear on the general election ballot. LOANS RECEIVED The source of funds could not be verified for $10,000 and $25,000 loans reported as received from the candidate on May 4 and May 9, 2018, respectively. Copies of checks written from the candidate’s personal checking account to the Committee and a copy of the candidate’s trust account statement showing funds transferred into the candidate’s personal checking account were provided. Records were provided to verify additional loans and monetary contributions totaling $75,000 reported as received from the candidate. Mr. Crummitt did not provide a comment. Franchise Tax Board Audit Report – William O. Lipe/Bill Lipe for Assembly 2018 Page 3 of 3 EXHIBIT A - CONTRIBUTIONS RECEIVED IN EXCESS OF THE LIMITS Actual Date Amount Contributor Exceeded Received Excess 1. Margaret A. Silveria 02/14/18 $ 8,800 $ 4,400 2. James W. Lipe 02/26/18 8,800 4,400 3. John Romans 02/26/18 8,800 4,400 4. Gordon W. Rosenberg 04/20/18 5,000 (1) 600 5. Vicki Rosenberg 04/20/18 5,000 (1) 600 $ 14,400 (1) Joint spousal contribution. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Bobby J. Archuleta Bob Archuleta for Senate 2018 (1402965) January 1, 2018 through December 31, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by State Senator Bobby J. Archuleta, District 32. Mr. Archuleta was elected in the 2018 General Election. The Committee terminated effective March 31, 2019. TREASURER: Cine D. Ivery Political Reporting Plus FINANCIAL ACTIVITY Total Contributions Received: $ 743,741 Total Expenditures: $ 736,394 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 – Bobby J. Archuleta/Bob Archuleta for Senate 2018 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 4 contributions received totaling $25,726. Reference Exhibit A Ms. Ivery stated that Form 497s were faxed to SOS by the firm’s new intern in error. She added that when she reached out to SOS to confirm receipt, she was advised that they no longer accept faxed filings. Consequently, she does not have documentation that these reports were timely filed other than copies of the faxed reports stamped and initialed by the intern on the day they were faxed. LOANS RECEIVED The actual lender(s) were not disclosed for a $50,000 loan reported as received from the candidate on the Form 460 Preelection Statement filed with the Secretary of State (SOS) for the period ending April 21, 2018. The candidate was also disclosed as the lender on a Form 497 Contribution Report filed with the SOS on April 20, 2018. The funds were received in the form of a cashier’s check that listed "Balubhai Patel/Hiravantiben Balubhai Patel/Vijay Patel POA” as the remitter. The check was initially deposited into the candidate’s personal bank account on April 20, 2018. The candidate then issued a personal check dated April 20, 2018, for $50,000 made payable to Bob Archuleta for Senate 2018, which was deposited into the designated campaign bank account on April 23, 2018. Contribution limits were exceeded as a result of the loan. Also, the entire $50,000 was used for the Statewide Direct Primary Election held on June 5, 2018. A major donor notification was not sent. Ms. Ivery stated that she believed the source of the $50,000 loan was an advance on a real estate commission owed to Mr. Archuleta. She added that the transaction between Mr. Archuleta and Mr. Vijay Patel was not divulged to her until this audit. Mr. Archuleta stated that he requested an advance of $50,000 from Mr. Vijay Patel, owner of Realty World of California Properties, on a sales commission that he was entitled to as the real estate broker, for a property that was in escrow. Mr. Archuleta further stated that there was no intention of hiding the source of the $50,000 as he believed it was his money that was coming to him sooner or later and such advances are nothing out of the ordinary in the real estate business. He added that Mr. Vijay Patel was not notified that the purpose of the advance request was for his campaign. Auditor Note: Documentation establishing the original source of the funds used to purchase the cashier’s check and the commission advance request was requested during the audit but was not provided. Franchise Tax Board Audit Report – Bobby J. Archuleta/Bob Archuleta for Senate 2018 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED Date Received Contributor Amount 1. 07/19/18 Hacienda Heights Pizza Co. $ 8,800 2. 07/25/18 Excellence RE Real Estate Inc. 8,800 3. 07/25/18 Luigi A. Vernola 7,000 4. 11/02/18 * California Democratic Party 1,126 Total $ 25,726 * Date cumulative contributions met or exceeded the $1,000 reporting threshold. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Sonia Aery Friends of Sonia Aery for Assembly 2018 (1403674) January 1, 2018 through December 27, 2018 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 January 29, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Sonia Aery, a candidate for Assembly, District 3, in the 2018 General Election. The Committee terminated effective December 27, 2018. TREASURER: Sonia Aery FINANCIAL ACTIVITY Total Contributions Received: $50,768 Total Expenditures: $61,458 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 – Sonia Aery/Friends of Sonia Aery for Assembly 2018 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 Two Form 460 Preelection Statements were not timely filed in paper format with the Secretary of State (SOS). The statements were timely filed electronically. Date Date Period Receipts Expenditures Due Filed 07/01/18 - 09/22/18 $ 21,772 $ 28,494 09/27/18 12/12/18 09/23/18 - 10/20/18 9,455 8,751 10/25/18 12/03/18 Totals $ 31,227 $ 37,245 Ms. Aery 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 January 29, 2021. CAMPAIGNS PERIOD COVERED 1. Bob J. Archuleta Bob Archuleta for Senate 2018 - Special (1403871) 01/01/18 – 06/30/18 2. Wendy Carrillo Wendy Carrillo for Assembly 2017 (1396972) 01/01/17 – 10/20/18 3. Wendy Carrillo Wendy Carrillo for Assembly 2018 (1400787) 01/01/17 – 12/31/18 4. Blanca E. Rubio Blanca Rubio for Assembly 2018 (1393364) 01/01/17 – 12/31/18 5. Timothy J. Ferreira Tim Ferreira for Lt Gov 2018 (1398384) 01/01/17 – 06/30/18 6. Laura S. Friedman Laura Friedman for Assembly 2018 (1392556) 01/01/16 – 12/31/18 7. Lorena S. Gonzalez Lorena Gonzalez for Assembly 2018 (1392494) 01/01/16 – 12/31/18 8. William J. Ostrander Ostrander for Assembly 2018 (1401386) 01/01/18 – 12/31/18 NFINDEX 01/29/21 Page 1 of 2 9. Robert A. Rivas Robert Rivas for Assembly 2018 (1399486) 01/01/17 - 12/31/18 NFINDEX 01/29/21 Page 2 of 2 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, 2021. CAMPAIGNS PERIOD COVERED 1. John L. Burton Burton for Superintendent of Public Instruction (1366127) 01/01/14 – 12/29/17 2. Ellen M. Corbett Ellen Corbett for Attorney General 2018 (1375715) 01/01/15 – 06/30/18 3. Jeffrey J. Denham Denham for Lt. Governor 2018 (1364261) 01/01/14 – 06/28/18 4. David F. Hadley David Hadley for Governor 2018 (1395153) 01/01/17 – 09/30/17 5. Vivek Viswanathan Vivek Viswanathan for Treasurer 2018 (1401179) 01/01/18 – 06/30/18 NFINDEX 03/30/21 Page 1 of 1 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 28, 2021. CAMPAIGNS PERIOD COVERED 1. Mark Leno Mark Leno for Lt. Governor 2018 (1355443) 01/01/13 – 12/31/16 2. Fabian Núñez Fabian Núñez for Treasurer 2018 (1366750) 01/01/14 – 06/30/18 3. Jeffrey L. Bleich Jeff Bleich for Lieutenant Governor 2018 (1396288) 01/01/17 – 06/30/18 4. Adam Anderson Adam Anderson for Superintendent of Public Instruction 2018 (1399931) 01/01/17 – 06/30/18 NFINDEX 05/28/21 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Michael R. Bracamontes Bracamontes for Governor 2018 (1396598) 2. Phillip Gregory Conlon Greg Conlon for State Treasurer 2018 (1403521) 3. David Fennell David Fennell for Lieutenant Governor 2018 (1374646) 4. David Jones Dave Jones for Attorney General 2018 (1380405) 5. Honorable Gavin C. Newsom Newsom for California Governor 2018 (1375287) 6. Michael Shellenberger Michael Shellenberger for Governor 2018 (1400874) INDEX 07/30/21 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: David Fennell David Fennell for Lieutenant Governor 2018 (1374646) c/o Media Bay Ventures LLC January 1, 2018 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 or more were subject to audit. However, the audit could not be performed since the records were not provided. Therefore, we are unable to express an opinion regarding compliance with the Political Reform Act. This Audit Report was submitted to the Fair Political Practices Commission, the Secretary of State, and the Attorney General on July 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by David Fennell, a candidate for Lieutenant Governor in the 2018 Statewide Direct Primary Election. The Committee terminated effective December 31, 2018. TREASURER: David Fennell FINANCIAL ACTIVITY Total Contributions Received: $ 33,025 Total Expenditures: $ 33,025 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. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Honorable Gavin C. Newsom Governor, State of California Newsom for California Governor 2018 (1375287) c/o Shawnda Deane Deane & Company January 1, 2015 through December 31, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Governor Gavin C. Newsom. He was elected in the 2018 General Election. The Committee terminated effective December 31, 2019. TREASURER: Gavin C. Newsom c/o Shawnda Deane Deane & Company ASSISTANT TREASURERS: Shawnda Deane Deane & Company Nancy L. Warren (02/11/15 – 09/13/15) Franchise Tax Board Audit Report – Gavin C. Newsom/Newsom for California Governor 2018 Page 2 of 2 REPRESENTATIVES: Kim Lutz Deane & Company Nick Warshaw Olson Remcho LLP FINANCIAL ACTIVITY Total Contributions Received: $ 50,341,520 Total Expenditures: $ 50,622,716 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. 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 For expenditures examined, subvendor expenditures were understated by $1,115,872 and not disclosed for $7,308 on the initial Form 460 Preelection Statement filed with the Secretary of State for the period ending October 20, 2018. Of the understated amount, $1,092,871 was for payments made by Sadler Strategic Media, Inc. for media advertisements. The Committee filed amendments on the date of the General Election, November 6, 2018 and on July 31, 2019 to disclose subvendors totaling $1,108,771 and $14,409 respectively. Subvendor information totaling $2,797,019 was disclosed for Sadler Strategic Media, Inc. on the initial Form 460 Preelection Statement filed on October 25, 2018, for the period ending October 20, 2018. Mr. Warshaw stated that the Committee fully and accurately disclosed all of its expenditures to its media buyer, Sadler Strategic Media. In the midst of a busy campaign season, the Committee’s professional treasurer inadvertently did not disclose the exact amount of funds some TV stations received from Sadler Strategic Media. He added, to the extent there were any omissions, they were miniscule in comparison to the massive amount of subvendor payments that flowed through Sadler Strategic Media. He also stated, that during the course of the 2018 Election Cycle, Sadler Strategic Media was paid over 21 million dollars. The vast majority of the TV station subvendors were previously disclosed on multiple prior reports. Additionally, an amendment to the report was filed prior to the end of Election Day. Mr. Warshaw states the Committee substantially complied with the subvendor disclosure requirements. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: David Jones Dave Jones for Attorney General 2018 (1380405) January 1, 2015 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 District Attorneys of Los Angeles, Sacramento, and San Francisco Counties on July 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by David Jones, a candidate for Attorney General in the 2018 Statewide Direct Primary Election. The Committee terminated effective May 20, 2019. TREASURER: James R. Santos James R. Santos Bookkeeping Services FINANCIAL ACTIVITY Total Contributions Received: $ 5,305,080 Total Expenditures: $ 4,799,809 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 – David Jones/Dave Jones for Attorney General 2018 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 Subvendor information totaling $958,652 was not disclosed on the initial Form 460 Preelection Statements filed for the period January 1 through May 19, 2018. Of this amount, $957,121 was disclosed on amendments filed on July 31, 2018, after the 2018 Statewide Direct Primary Election. Mr. Santos stated that the activity was reported on amendments as soon as he received the information. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Michael R. Bracamontes Bracamontes for Governor 2018 (1396598) January 1, 2017 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Michael R. Bracamontes. Mr. Bracamontes was a candidate for Governor in the 2018 Statewide Direct Primary Election. Mr. Bracamontes filed a Form 501 Candidate Intention Statement for this office. However, he withdrew from the election and was not on the ballot. The Committee terminated effective March 31, 2019. TREASURER: Susan S. Reyes FINANCIAL ACTIVITY Total Contributions Received: $ 99,330 Total Expenditures: $ 95,992 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 – Michael R. Bracamontes/Bracamontes for Governor 2018 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 3 loans received totaling $69,000 reported as received from the candidate. A report was timely filed for 1 other contribution received of $20,000. Reference Exhibit A Ms. Reyes stated that the missed filings were unintentional and were missed in her calendar reporting. CAMPAIGN BANK ACCOUNT Campaign expenditures totaling $3,044 were not processed through the Committee’s designated campaign bank account. Instead, the expenditures were paid directly by the candidate using his personal funds or personal credit card. The expenditures were reported as lump sum nonmonetary contributions received from the candidate on the Form 460 Semi-Annual Statement filed for the period ending December 31, 2017. Of this amount, payments paid to credit card vendors totaling $2,382 were not disclosed. In addition, payments totaling $1,382 required additional gift, meal, and travel disclosure. Ms. Reyes stated she was under the impression that these expenses were reported as nonmonetary contributions received from the candidate and was not aware this was an issue. Franchise Tax Board Audit Report – Michael R. Bracamontes/Bracamontes for Governor 2018 Page 3 of 3 EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR LOANS RECEIVED Date Received Contributor Amount 1. 09/01/17 Bracamontes & Vlasak, P.C. $ 9,000 (1) 2. 11/03/17 Michael Bracamontes 10,000 (2) 3. 02/05/18 Michael Bracamontes 50,000 Total $ 69,000 (1) Disclosed as from the candidate rather than his law firm. (2) The date received was disclosed as October 3, 2017 but the date on the check is November 3, 2017. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Michael Shellenberger Michael Shellenberger for Governor 2018 (1400874) January 1, 2018 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Michael Shellenberger, a candidate for Governor in the 2018 Statewide Direct Primary Election. TREASURER: Michael Shellenberger FINANCIAL ACTIVITY Total Contributions Received: $ 52,350 Total Expenditures: $ 41,009 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. Franchise Tax Board Audit Report – Michael Shellenberger/Michael Shellenberger for Governor 2018 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 Form 497 Contribution Reports were not filed with the Secretary of State for 5 contributions received totaling $37,200. Reference Exhibit A Mr. Shellenberger did not provide a comment. The initial Form 460 Preelection Statement for the period March 26 through April 20, 2018, was not filed in paper format with the Secretary of State. An amendment was filed in paper format for this period on May 2, 2018. Receipts and expenditures totaled $7,550 and $28,016, respectively. The statement was timely filed in electronic format. Mr. Shellenberger did not provide a comment. EXHIBIT A - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED Date Received Contributor Amount 1. 01/11/18 Frank Batten $ 29,200 2. 03/06/18 Patricia Lamond 5,000 3. 03/14/18 John Crary 1,000 4. 03/22/18 Martin Lewis 1,000 5. 03/27/18 Valerie Gardner 1,000 Total $ 37,200 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Phillip Gregory Conlon Greg Conlon for State Treasurer 2018 (1403521) January 1, 2018 through December 31, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Phillip Gregory Conlon, a candidate for State Treasurer in the 2018 General Election. The Committee terminated effective December 31, 2019. TREASURER: Thomas Montgomery Political Communications, Inc. FINANCIAL ACTIVITY Total Contributions Received: $ 50,727 Total Expenditures: $ 68,132 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 – Phillip Gregory Conlon/Greg Conlon for State Treasurer 2018 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. CAMPAIGN BANK ACCOUNT Campaign expenditures totaling $4,311 were not processed through the Committee’s designated campaign bank account. Instead, these expenditures were paid directly by the candidate using his personal funds or his personal credit card. These expenditures were reported on the Form 460 Campaign Disclosure statements filed with the Secretary of State as nonmonetary contributions from the candidate to the Committee. EXPENDITURES Credit card vendors’ names, addresses, and amounts paid were not itemized for expenditures totaling $7,800. Of this amount, payments totaling $5,795 required gift, meal, and travel disclosure. TREASURER’S COMMENT No comments were provided. 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 30, 2021. CAMPAIGNS PERIOD COVERED 1. Delaine A. Eastin Eastin for Governor 2018 (1393307) 01/01/17 – 06/30/18 2. Dario J. Frommer Dario Frommer for Attorney General 2018 (1367770) 01/01/14 – 06/30/18 3. Melissa A Melendez Melissa Melendez for Assembly 2020 (1414487) 01/01/19 – 06/30/20 4. Melissa A. Melendez Melissa Melendez for Senate 2020 (1422643) 01/01/19 – 06/30/20 5. Gavin C. Newsom Governor Newsom’s Ballot Measure Committee (1380675) 01/01/17 – 12/31/18 6. Elizabeth F. Romero Elizabeth Romero for the 28th Senate District 2020 (1422945) 01/01/19 – 06/30/20 7. Nina Salarno Nina Salarno for Attorney General 2018 (1386297) 01/01/16 – 12/31/17 NFINDEX 07/30/21 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. Joshua G. Jones Josh Jones for Governor of California 2018 (1399496) 2. Gayle A. McLaughlin Gayle McLaughlin for Lieutenant Governor 2018 (1396385) 3. Henry T. Perea Perea for Insurance Commissioner 2018 (1376101) 4. Eloise G. Reyes Eloise Reyes for Assembly 2016 (1381092) INDEX 09/30/21 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Henry T. Perea Perea for Insurance Commissioner 2018 (1376101) January 1, 2015 through March 22, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Assembly Member Henry T. Perea, District 31. Mr. Perea was a candidate for Insurance Commissioner in the 2018 Statewide Direct Primary Election. Mr. Perea filed a Form 501 Candidate Intention Statement for this office. However, he withdrew from the election and was not on the ballot. The Committee terminated effective March 22, 2018. TREASURERS: Henry T. Perea Minnie Santillan (04/06/15 – 01/21/16) Franchise Tax Board Audit Report – Henry T. Perea/Perea for Insurance Commissioner 2018 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 903,442 Total Expenditures: $ 901,852 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 Bank statements were not maintained for the period July 1, 2017, through March 22, 2018. Records, such as canceled checks, wire transfer confirmations, or other supporting documentation were not maintained for 22 expenditures made totaling $623,770. The lack of records precluded verification of payees and amounts paid as well as a determination as to whether accrued expenses were required to be disclosed. Mr. Perea stated that he could not locate the expenditure records and the bank statements. He stated that the bank could not locate the Committee’s bank account when he inquired during the audit. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Eloise G. Reyes Eloise Reyes for Assembly 2016 (1381092) January 1, 2017 through December 31, 2018 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. 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 September 30, 2021. PURPOSE OF AMENDED REPORT This amended Audit Report supersedes the Audit Report issued on November 30, 2020. This amended Audit Report is being issued because additional documentation has been provided. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Assembly Member Eloise Reyes, District 47. Ms. Reyes was re- elected in the 2018 General Election. The Committee terminated effective June 30, 2019. TREASURER: William P. Smith Franchise Tax Board Audit Report – Eloise G. Reyes/Eloise Reyes for Assembly 2016 Page 2 of 5 REPRESENTATIVE: Nick Warshaw Olson Remcho, LLP FINANCIAL ACTIVITY Total Contributions Received: $ 29,500 Total Expenditures: $ 40,063 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 460 Campaign Disclosure Statements were not filed with the Secretary of State for the period July 1 through December 31, 2018. There were no receipts or expenditures during this period. A Form 460 Semi-annual Statement was filed for the period June 1, 2018, through June 30, 2019, on July 3, 2019. The Form 460 Campaign Disclosure Statements filed for the periods ending May 19 and June 30, 2018, were filed 537 and 469 days late, respectively, in paper format. Both were timely filed in electronic format. There was no activity during either period. Reference Exhibit A Form 497 Contribution Reports were not filed with the Secretary of State for 3 contributions received totaling $21,900. Reference Exhibit B CAMPAIGN BANK ACCOUNT The beginning and ending cash balances were either overstated or understated on the Form 460 campaign disclosure statements filed with the Secretary of State for the audit period. Reference Exhibit C Franchise Tax Board Audit Report – Eloise G. Reyes/Eloise Reyes for Assembly 2016 Page 3 of 5 CANDIDATE’S COMMENT Ms. Reyes stated the findings of the audit reveal inadvertent and unintentional errors in her campaign reports. She further stated the campaign disclosed hundreds of thousands of dollars in other contributions and simply missed some filings in the midst of a busy campaign season. In addition, Ms. Reyes stated she has retained a professional treasurer and campaign counsel since the inadvertent errors occurred to ensure compliance with the Political Reform Act and noted that an audit of her 2018 campaign account found no errors. Finally, she stated she values transparency and compliance and has endeavored with her campaign compliance team to ensure these issues do not arise in the future. LIST OF EXHIBITS EXHIBIT A – FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED OR NOT TIMELY FILED EXHIBIT B – FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED EXHIBIT C – CASH BALANCE DIFFERENCES Franchise Tax Board Audit Report – Eloise G. Reyes/Eloise Reyes for Assembly 2016 Page 4 of 5 EXHIBIT A - FORM 460 CAMPAIGN DISCLOSURE STATEMENTS NOT FILED OR NOT TIMELY FILED Date Days Statement Period Receipts Expenditures Filed Late 04/22/18 - 05/19/18 0 0 11/12/19 537 05/20/18 - 06/30/18 0 0 11/12/19 469 07/01/18 - 09/22/18 0 0 Not Filed (1) 09/23/18 - 10/20/18 0 0 Not Filed (1) 10/21/18 - 12/31/18 0 0 Not Filed (1) (1) The activity for this period was reported on the Form 460 Semi-annual Statement filed with the Secretary of State on July 3, 2019, for the period June 1, 2018 through June 30, 2019. The Form 460 Preelection Statements were required to be filed because the candidate was on the 2018 General Election ballot. EXHIBIT B - FORM 497 CONTRIBUTION REPORTS NOT FILED FOR CONTRIBUTIONS RECEIVED Date Received Contributor Amount 1. 03/14/17 American Federation of State, County & $ 8,500 Municipal Employees - CA People Small Contributor Committee 2. 04/28/17 California Real Estate Political Action 8,400 Committee - California Association of Realtors 3. 05/22/17 Professional Engineers in California 5,000 Government PECG-PAC Total $ 21,900 Franchise Tax Board Audit Report – Eloise G. Reyes/Eloise Reyes for Assembly 2016 Page 5 of 5 EXHIBIT C - CASH BALANCE DIFFERENCES Adjusted Reported Bank Cash Date Balance Balance Difference 01/01/17 $ 1,778 $ 1,687 $ 91 06/30/17 28,612 21,123 7,489 (1) 12/31/17 22,112 105,691 -83,579 04/21/18 22,052 21,063 989 (2) 05/19/18 22,052 21,123 929 06/30/18 22,052 21,123 929 (3) (1) A $7,500 expenditure made to PowerPAC in 2016 was reported again on the Form 460 Semi-annual Statement filed for the period ending June 30, 2017. (2) Ending cash balance reported on the Form 460 Campaign Disclosure Statement filed for the period January 1 through March 31, 2018. (3) Ending cash balance reported on the Form 460 Semi-annual Statement filed for the period ending June 30, 2018. A Form 460 Semi-annual Statement was filed for the period June 1, 2018 through June 30, 2019, on July 3, 2019. The beginning and ending cash balances reported on this statement were $23,498 and $0, respectively. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Gayle A. McLaughlin Gayle McLaughlin for Lieutenant Governor 2018 (1396385) January 1, 2017 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by Gayle A. McLaughlin, a candidate for Lieutenant Governor in the 2018 Statewide Direct Primary Election. The Committee terminated effective September 28, 2018. TREASURER: Paul Kilkenny FINANCIAL ACTIVITY Total Contributions Received: $ 200,739 Total Expenditures: $ 200,514 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 – Gayle A. McLaughlin/Gayle McLaughlin for Lieutenant Governor 2018 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. RECORDKEEPING For expenditures examined, receipts or invoices were not maintained for expenditures totaling $34,498. The lack of records precluded a determination as to whether any accrued expenses, subvendor payments, or gift, meal, and travel expenditures were required to be disclosed. Canceled checks and bank statements were provided. Mr. Kilkenny stated that he submitted all of the records maintained by the campaign compliance reporting service (ISP). He added that there may have been some small isolated errors, but he tried his best to track everything transparently. He further stated that this was his first statewide campaign, which was run predominately with volunteers and with a small budget. CAMPAIGN BANK ACCOUNT Campaign expenditures totaling $2,368 were not processed through the Committee’s designated campaign bank account. Instead, the expenditures were made through a PayPal account. These expenditures were reported on the Form 460 Campaign Disclosure Statements as expenditures made to Lauren Steiner. Mr. Kilkenny stated that the PayPal account was set up at the request of few supporters and was directly linked to the designated campaign bank account. He added that funds deposited in the PayPal account were transferred to the designated campaign bank account, but a few expenditures were made from fundraising proceeds in the PayPal account prior to transfer. He further stated that all activity was disclosed on Form 460 Campaign Disclosure Statements. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Joshua G. Jones Josh Jones for Governor of California 2018 (1399496) January 1, 2017 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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 30, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by Joshua G. Jones, a candidate for Governor in the 2018 Statewide Direct Primary Election. TREASURERS: Joshua G. Jones Ashley Crabtree-Frame (01/31/18 – 05/12/19) Franchise Tax Board Audit Report – Joshua G. Jones/Josh Jones for Governor of California 2018 Page 2 of 3 FINANCIAL ACTIVITY Total Contributions Received: $ 25,596 Total Expenditures: $ 28,174 The totals for contributions received and expenditures were taken from the unaudited statements as filed in paper 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, duplicate deposit slips, valuation letters or invoices, and contributor lists were not maintained for more than 39 reported contributions received totaling $26,646. Of this amount, $8,580 was reported as unitemized contributions of less than $100. The lack of records precluded a determination as to whether notifications were required to be sent to major contributors, contributions were received prior to filing the Form 501 Candidate Intention Statement, and Form 497 Contribution Reports were required to be filed with the Secretary of State. Records such as copies of invoices or receipts were not provided for 82 reported expenditures totaling $16,283. The lack of records precluded a determination as to whether any expenses were required to be accrued. Bank statements and canceled checks were provided. Franchise Tax Board Audit Report – Joshua G. Jones/Josh Jones for Governor of California 2018 Page 3 of 3 EXPENDITURES Cash totaling $500 was withdrawn from the Committee’s designated campaign bank account. The cash withdrawals exceeded $100 each. In addition, invoices, receipts, or other supporting documents were not maintained for expenditures made with cash. The lack of records precluded the determination of whether the expenditures were directly related to political, legislative or governmental purposes. Bank statements and canceled checks were provided showing the amounts withdrawn in cash. Date of Withdrawal Amount 1. 12/27/17 $ 150 2. 01/18/18 150 3. 03/19/18 200 Total $ 500 FILER’S COMMENT Mr. Jones stated that he had a box of records, but was unable to locate it. He also stated that his campaign manager may have had the records, but he has not been able to reach her since she moved outside of the United States two years ago. Mr. Jones further stated that during audit he made multiple attempts to contact NationBuilder to obtain documentation for contributions received, but was unable to reach his account manager and believes their system was down at the time. 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 District Attorneys of Los Angeles, Sacramento and San Francisco Counties on September 30, 2021. CAMPAIGNS PERIOD COVERED 1. Steven C. Bailey Judge Steven Bailey – Attorney General 2018 (1389776) 01/01/16 – 12/31/18 2. Steven C. Bailey Judge Steven Bailey – Judge 2020 (1386692) 01/01/16 – 12/31/18 NFINDEX 09/30/21 Page 1 of 1 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 30, 2021. CAMPAIGNS PERIOD COVERED 1. Bill Lockyer Lockyer for Lieutenant Governor 2018 (1358773) 01/01/13 – 02/26/18 2. Lydia D. Ortega Lydia Ortega for Lt Governor 2018 (1401626) 01/01/18 – 07/20/18 3. Henry T. Perea Perea Officeholder Account 2014; Assemblymember (1373955) 01/01/15 – 12/31/15 4. Henry T. Perea Perea Reviving Jobs and the Economy Ballot Measure Committee 01/01/15 – 03/31/17 (1344099) NFINDEX 09/30/21 Page 1 of 1 POLITICAL REFORM AUDIT REPORTS State Campaigns 1. John H. Cox John Cox for Governor 2018 (1394897) 2. Antonio R. Villaraigosa Villaraigosa for Governor 2018 (1392364) INDEX 11/30/21 POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: Antonio R. Villaraigosa Villaraigosa for Governor 2018 (1392364) January 1, 2016 through June 30, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee was controlled by former Mayor of Los Angeles Antonio R. Villaraigosa, a candidate for Governor in the 2018 Statewide Direct Primary Election. The Committee terminated effective February 25, 2019. TREASURER: Rita Copeland River City Business Services REPRESENTATIVE: Marissa Russell River City Business Services FINANCIAL ACTIVITY Total Contributions Received: $ 9,581,688 Total Expenditures: $ 9,620,898 Franchise Tax Board Audit Report – Antonio R. Villaraigosa/Villaraigosa for Governor 2018 Page 2 of 2 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. MONETARY CONTRIBUTIONS RECEIVED Aggregated contributions received from Fabian Núñez and his candidate-controlled committee, Fabian Nunez for Treasurer 2018 (1366750), exceeded the contribution limits by $27,800. The Committee received contributions totaling $8,400 from Fabian Nunez for Treasurer 2018 on November 14, 2016, and contributions totaling $28,200 from Mr. Núñez’s personal funds on December 27, 2016. The Committee attempted to refund the $28,200 in personal contributions on January 12, 2017, but the check was voided and a replacement check cleared the bank on June 16, 2017. Ms. Russell stated that the Committee issued a refund check for the over limit contribution and, since the check was not cashed, the Committee re-issued the check at a later date. POLITICAL REFORM AUDIT PROGRAM MS F387 PO BOX 651 SACRAMENTO CA 95812-0651 AUDIT REPORT OF THE POLITICAL REFORM AUDIT PROGRAM FOR: John H. Cox John Cox for Governor 2018 (1394897) January 1, 2017 through December 31, 2018 AUDIT AUTHORITY AND SCOPE This audit is authorized under Section 90001 of the California Government Code. Statewide candidates who raised or spent $25,000 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, 2021. ABOUT THE COMMITTEE BACKGROUND INFORMATION The Committee is controlled by John H. Cox, a candidate for Governor in the 2018 General Election. TREASURERS: John H. Cox Mclayn Ryan (01/01/17 - 08/08/18) REPRESENTATIVE: Kelly Lawler The KAL Group Franchise Tax Board Audit Report – John H. Cox/John Cox for Governor 2018 Page 2 of 2 FINANCIAL ACTIVITY Total Contributions Received: $ 16,512,316 Total Expenditures: $ 16,595,420 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. MONETARY CONTRIBUTIONS RECEIVED Occupation and/or employer information was not disclosed for contributions totaling $233,761 received from 1,123 individuals. For $129,131 of this amount, a record of this information was not maintained and the contributions were not returned. Ms. Lawler stated that information was requested with all donations and follow up letters, phone calls, and emails were sent to collect the information. She added that they did collect information on these donors, there was a tremendous amount of volume and they made all efforts to collect the information and maintain it on the file for the donors. 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, 2021. CAMPAIGNS PERIOD COVERED 1. John H. Cox Neighborhood Legislature, a committee controlled by John Cox to create neighborhood districts (1394684) 01/01/17 – 12/31/18 2. Eleni Kounalakis Eleni Kounalakis for Lieutenant Governor 2018 (1395990) 01/01/17 – 12/31/18 3. Ricardo Lara Californians for a 21st Century Economy, A Ricardo Lara Ballot Measure Committee (1374153) 01/01/17 – 12/31/18 4. Ricardo Lara Ricardo Lara for Insurance Commissioner 2018 (1393932) 01/01/17 – 12/31/18 5. Stephen L. Poizner Steve Poizner for Insurance Commissioner 2018 (1402422) 01/01/18 – 12/31/18 NFINDEX 11/30/21 Page 1 of 1