Audit Report on the Procurement Practices of the Campaign Finance Board

EXECUTIVE SUMMARY

This audit determined whether the Campaign Finance Board (CFB) makes Other Than Personal Service (OTPS) expenditures in accordance with applicable procurement procedures, including the Procurement Policy Board (PPB) rules and Comptroller’s directives. CFB is an independent, nonpartisan agency that administers the Campaign Finance Program, publishes the City Voter Guide, oversees the Debate Program, and ensures that all candidates for municipal office comply with campaign contribution limits. During Fiscal Year 2006, CFB’s budget was approximately $38.6 million, consisting of $27.6 million for election funding, $3.9 million for Personal Service (PS) expenditures, and $7.1 million for OTPS expenditures.

Audit Findings and Conclusion

CFB generally complied with applicable procurement procedures, including PPB rules and Comptroller’s directives. For our sampled payments:

• Items purchased were necessary for CFB office operations;
• Vouchers and corresponding purchase documents were properly approved, and amounts paid to vendors were accurately calculated;
• Appropriate documentation to support each payment was maintained in CFB files
• Sales taxes were excluded; and
• Voucher packages were time-stamped and stamped “vouchered.”

However, CFB had two internal control weaknesses that should be addressed: use of split purchases to circumvent procurement policies, and the lack of in-house written policies and procedures.

Audit Recommendations

We make two recommendations that CFB should:

• Ensure that all applicable PPB rules and Comptroller’s Directive #24 are followed when procuring goods and services.
• Consider developing a comprehensive written policies and procedures manual that addresses all internal processes and functions regarding procurement and is distributed to appropriate employees.

CFB Response

In their response, CFB officials generally agreed with the audit’s recommendations.