SANFRANCISCOPUBLICLIBRARY 3 1223 08514 6547 BOARD OF SUPERVISORS Ten Selected Organizations Did Not Use City Funds for Political Purposes SanFranciscoPublicLibrary GovernmentInformationCenter BanFranciscoPublictlbrary 100LaririnStreet.5ttiFloor SanFranciscu,CA 94102 REFERENCE BOOK Not to be taken from the Library GOVERNMENT DOCUMENTS DEPT FEB 2 7 2009 February25, 2009 SAN FRANCISCO PUBLIC LIBRARY BOARD OF SUPERVISORS: Ten Selected Organizations Did Not Use City Funds for Political Purposes GOVERNMENT DOCUMENTS DEPT FEB 2 7 2009 February25, 2009 SAN FRANCISCO PUBLIC LIBRARY CONTROLLER'SOFFICE CITYSERVICESAUDITOR TheCityServicesAuditorwascreatedwithintheController'sOfficethroughanamendmenttothe CityCharterthatwasapprovedbyvotersin November2003. UnderAppendixFtotheCityCharter, theCityServicesAuditorhasbroadauthorityfor: • ReportingonthelevelandeffectivenessofSan Francisco'spublicservicesand benchmarkingthecitytootherpublicagenciesandjurisdictions. • Conductingfinancialandperformanceauditsofcitydepartments, contractors,andfunctions toassessefficiencyandeffectivenessofprocessesandservices. • Operatingawhistleblowerhotlineandwebsiteandinvestigating reportsofwaste,fraud,and abuseofcityresources. • Ensuringthefinancialintegrityandimprovingtheoverallperformanceandefficiencyofcity government. Theauditsunitconductsfinancialaudits,attestationengagements,andperformanceaudits. Financialauditsaddressthefinancialintegrityofbothcitydepartmentsandcontractorsandprovide reasonableassuranceaboutwhetherfinancialstatementsarepresentedfairlyinallmaterialaspects inconformitywithgenerallyacceptedaccountingprinciples. Attestationengagementsexamine, review,orperformproceduresonabroadrangeofsubjectssuchasinternalcontrols;compliance withrequirementsofspecifiedlaws, regulations, rules,contracts, orgrants;andthereliabilityof performancemeasures. Performanceauditsfocusprimarilyonassessmentofcityservicesand processes, providingrecommendationstoimprovedepartmentoperations. WeconductourauditsinaccordancewiththeGovernmentAuditingStandardspublishedbytheU.S. GovernmentAccountabilityOffice(GAO). Thesestandardsrequire: • Independenceofauditstaffandtheauditorganization. • Objectivityoftheauditorsperformingthework. • Competentstaff,includingcontinuingprofessionaleducation. • Qualitycontrolprocedurestoprovidereasonableassuranceofcompliancewiththeauditing standards. AuditTeam: Elisa Sullivan,AuditManager Houman Boussina, AssociateAuditor 3 1223 08514 6547 City and County of San Francisco Office of the Controller - City Services Auditor BoardofSupervisors: February25,2009 TenSelectedOrganizationsDidNotUseCityFundsforPoliticalPurposes PurposeoftheAudit WeconductedthisreviewtomeettheSan FranciscoAdministrativeCode(AdministrativeCode)requirementthat theControllerannuallyauditatleast10personsorentitiesthatentercontracts,grants,orloanagreementswith theCitytoensurethattheycomplywithChapter12GoftheAdministrativeCode,whichprohibitstheuseofcity fundsforpoliticalactivity. Highlights Recommendations Alltenorganizationsthatwerethesubjectofthisauditdidnotuse Theauditreportincludes 13 cityfundstoparticipatein, support,orattempttoinfluencea recommendationsforensuring politicalcampaignforanycandidateorballotmeasure. thatcitydepartmentsandsome organizationscomplywith However,wefoundthatsomeorganizationsandcitydepartments contracttermsandcityrulesand did notalwayscomplywithcityrulesorcontractandinvoicing regulations. Specifically: requirements. Inparticular: • MOCJshouldworkwiththe AnemployeeoftheMayor'sOfficeofCriminalJustice(MOCJ) EthicsCommissionand engagedinoutsideemploymentthatispotentiallyincompatible Controller'sOfficeto with herjobduties. determinewhetheran employee'soutsidework TheDepartmentofChildren,YouthandTheirFamilies(DCYF) and MOCJ usedabbreviatedgrantagreementsthatdid not inappropriatelybenefitteda contractor. includeimportantprovisions. • DCYFand MOCJshould AJuvenileProbation Department(JPD)agreementhad ensurethatallagreements contradictorytermsandasignificanterrorinwording. incorporatetheCity's San FranciscoApartmentAssociation(SFAA)didnotinvoicethe requiredagreement Cityforaccurateamountsundertheagreementwereviewed. provisions. DepartmentofBuilding Inspection (DBI), the Residential Rent • JPDshouldensurethatits agreementsdonotinclude StabilizationandArbitration Board (RentBoard), andJPDdid not contradictorytermsandthat properlyreviewinvoicessubmittedbyorganizationspriorto agreementamountsare makingpayments. consistentlyandaccurately stated. • SFAAshouldproperly invoicetheCityforactual andeligibleexpenses. • DBI, RentBoard, andJPD shouldestablishwntten policiesandproceduresfor reviewinginvoices. Copiesofthefullreportmaybeobtainedat: Controller'sOffice CityHall.Room316 • 1Dr CarltonB GoodlettPlace • SanFrancisco.CA94102 • 4155547500 orontheInternetathttp//www,sfaovpro/controller Pageintentionallyleftblank. CITYAND COUNTYOF SAN FRANCISCO OFFICE OFTHE CONTROLLER Ben Rosenfield Controller MoniqueZmuda DeputyController February25, 2009 Board ofSupervisors City Hall, Room 244 1 Dr. Carlton B. GoodlettPlace San Francisco, CA 94102 Presidentand Members: TheController'sOffice. CityServicesAuditor, presents itsauditreportof10organizationsandtheir compliancewiththeCityand CountyofSan Francisco(City)ordinance prohibitingtheuseofcity fundsforpoliticalactivity. The auditrevealedthatthe 10organizationsselectedforreviewdid not useforpolitical activityanyofthecityfunds received undergrants, contracts, and loanswithvarious citydepartments. Weconductedthis reviewto meetthe San FranciscoAdministrativeCode (AdministrativeCode) requirementthatthe Controllerannuallyauditatleast 1 personsorentitiesthatentercontracts, grants, orloan agreementswiththeCity. The Controllerseekstoensurethatthe personsorentities complywithChapter 12G oftheAdministrativeCode, which prohibitsthe useofcityfundsfor politicalactivity. TheAdministrativeCodedefines political activityas participating in, supporting, or attempting to influencea political campaignforanycandidateorballotmeasure. Duringthecourseofouraudit,wefoundthatsomecitydepartmentsandorganizationsdid not alwayscomplywith cityrulesorcontractand invoicing requirements. Wediscoveredthatacity employee engaged in outsideemploymentthatis potentially incompatiblewith herjobduties.Also, somecitydepartmentagreementsdid notincludetherequired agreementprovisions,andone agreementincludedcontradictorytermsand asignificanterrorinwording. Further,wefoundthatnot allorganizations properly invoicedthe Cityforreimbursements, andthatreimbursementrequests are notalwaysadequatelyreviewed bydepartments priortomaking payments Theauditincludes 13 recommendationsforensuringthatdepartments and organizationscomply with contractterms, contracting bestpractices, and cityrulesand regulations Responsestothe auditareattachedasAppendix B Wedid notrequireresponsesfromdepartmentsororganizations towhich norecommendationsareaddressed. Weappreciatetheassistanceand cooperation thattheorganizations' staffand staffincity departmentsprovidedduringtheaudit Respectfullysubmitted. Ben Rosenfield Controller 415-554-7500 CityHall•1Dr CarltonB GoodlettPlace•Room316•SanFranciscoCA94102-4694 FAX415-554-7466 Mayor Board ofSupervisors Civil GrandJury BudgetAnalyst PublicLibrary TABLE OF CONTENTS Introduction Audit Results 3 AppendixA-SummaryofAgreements A-1 Appendix B-Audit Responses B-1 LIST OF ACRONYMS CSA Office ofthe Controller, City ServicesAuditor Division DBI DepartmentofBuilding Inspection DCYF The DepartmentofChildren, Youth and TheirFamilies HIFY Health InitiativesforYouth, Inc. JPD Juvenile Probation Department MOCJ Mayor'sOfficeofCriminal Justice MOU Memorandum (or Memoranda) ofUnderstanding SFAA San FranciscoApartmentAssociation SFPT San Francisco Parks Trust, Inc.