March 14, Melvinia Harris Friends of Delia M. Hunley-Adossa (Dee) Dear Ms. Harris:

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1 March 14, 2012 Melvinia Harris Friends of Delia M. Hunley-Adossa (Dee) Dear Ms. Harris: Please find attached the New York City Campaign Finance Board s (the CFB or Board ) Final Audit Report for the 2009 campaign of Delia M. Hunley-Adossa (the Campaign ). The report is based on a comprehensive review of the Campaign s financial disclosure statements and submitted documentation, and incorporates the Board s final determination of February 16, 2012 (attached). The report concludes that the Campaign did not fully demonstrate compliance with the requirements of the Campaign Finance Act (the Act ) and Rules of the Board (the Rules ) as detailed in the report. The Campaign received a post-election public funds payment of $10,708, which reflects $952 in penalties assessed and withheld, as detailed in the attached Final Board Determination. By April 16, 2012, the Campaign must demonstrate to the CFB that the public funds were used to pay outstanding liabilities. The Campaign received a notice that listed the reported outstanding liabilities for which the public funds may be used and explained how to document proper use. The Campaign will be required to return any public funds that were not properly spent.

2 Melvinia Harris Friends of Delia M. Hunley-Adossa (Dee) -2- March 14, 2012 The January 15, 2010 disclosure statement (#16) was the last disclosure statement the Campaign was required to file with the CFB for the 2009 elections. If the Campaign raises additional contributions to pay outstanding liabilities, please note that all 2009 election requirements, including contribution limits, remain in effect. The Campaign is required to maintain its records for six years after the election, and the CFB may require the Campaign to demonstrate ongoing compliance. See Rules 3-02(b)(3), 4-01(a), and In addition, please contact the Board of Elections for information concerning their separate filing requirements. The CFB thanks you for your cooperation during the 2009 election cycle. Should you have any questions about the enclosed report, please contact the Audit Unit at or Sincerely, Julius Peele Director of Auditing and Accounting c: Delia M. Hunley-Adossa Friends of Delia M. Hunley-Adossa (Dee) Attachments

3 March 14, 2012 BACKGROUND CAMPAIGN FINANCE BOARD FINAL AUDIT REPORT OF FRIENDS OF DELIA M. HUNLEY-ADOSSA (DEE) Among the purposes of the Act are to diminish the role and influence of private money in New York City elections, to increase the information available to the public about elections and candidates' campaign finances, and to reduce the potential for actual or perceived corruption. The CFB is a nonpartisan, independent city agency that serves the public interest by enhancing the role of New York City residents in the electoral process. All candidates for the five covered offices - mayor, public advocate, comptroller, borough president, and City Council member - are required to disclose all campaign activity to the CFB. All candidates must adhere to strict contribution limits and the ban on contributions from corporations, and beginning January 1, 2008, partnerships and limited liability entities. Additionally, participating candidates are prohibited from accepting contributions from unregistered political committees. The CFB also administers the voluntary Campaign Finance Program (the Program ). Candidates who voluntarily participate in the Program can qualify to have private contributions matched with public money in exchange for agreeing to strict spending limits. 1

4 CAMPAIGN INFORMATION The table below provides detailed information about the Campaign: Name: Delia M. Hunley-Adossa ID: 1325 Office Sought: City Council District: 35 Classification: Participant Certification Date: June 9, 2009 Committee Name: Friends of Delia M. Hunley-Adossa (Dee) Ballot Status: Primary Other Committees: No Party: Democratic Primary Election Date: September 15, 2009 Public Funds: Contribution Limit: Received: $88,550 $2,750 Returned: N/A Expenditure Limit: 2009 Primary: $161,000 Friends of Delia M. Hunley-Adossa (Dee) 2 March 14, 2012

5 OBJECTIVES The overall objective of the CFB s audit was to determine whether the Campaign complied with the Act and Rules. Specifically, CFB staff evaluated whether (1) the Campaign accurately reported financial transactions and maintained adequate books and records; (2) the Campaign adhered to contribution limits and prohibitions; (3) the Campaign disbursed funds in accordance with the Act and Rules and complied with the expenditure limits; and (4) the correct amount of public funds was received, any additional funds are due, or any return of public funds is required in accordance with the Act and Rules. SCOPE AND METHODOLOGY Prior to the election, CFB staff performed an initial review of the Campaign s reporting and documentation of contributions for public funds eligibility and compliance with the Act and Rules. After the election, CFB staff performed an audit of financial disclosure statements seven through sixteen (see Appendix #1), covering the period from January 11, 2009 through January 11, The audit was conducted in accordance with generally accepted government auditing standards (GAGAS) and included tests of records and other auditing procedures as necessary. This audit was performed in accordance with the audit responsibilities of the CFB as set forth in Administrative Code CFB staff examined the bank and credit card statements submitted by the Campaign from January 26, 2009 through March 3, 2011 and reconciled transactions to the Campaign s disclosure statements during this period to verify that all financial transactions were accurately reported and documented. Friends of Delia M. Hunley-Adossa (Dee) 3 March 14, 2012

6 CFB staff conducted a comprehensive review of all financial transactions reported in the Campaign s disclosure statements to determine whether contribution limits and prohibitions were adhered to. Additionally, CFB staff reviewed the Campaign s reported expenditures to ensure that the Campaign disbursed funds in accordance with the Act and Rules and complied with the expenditure limits. CFB staff reviewed the Campaign s eligibility for public matching funds, all matchable contribution claims by the Campaign for compliance with the Act and Rules, and the Campaign s disbursements of public funds. The review was done to ensure that the correct amount of public funds was received by the Campaign, and to determine whether any additional public funds are due or whether any return of public funds by the Campaign is necessary. On July 6, 2010, CFB staff issued a Draft Audit Report to the Campaign that contained preliminary findings of non-compliance with the Act and Rules and recommended corrective actions. The Campaign subsequently responded to the Draft Audit Report. Based on CFB staff recommendations and the Campaign s responses, the Board issued this Final Audit Report. Friends of Delia M. Hunley-Adossa (Dee) 4 March 14, 2012

7 CONCLUSION The Campaign did not fully demonstrate compliance with the requirements of the Campaign Finance Act and the Rules of the Board as detailed below: Disclosure Findings - Accurate public disclosure is an important part of the CFB s mission. Findings in this section relate to the Campaign s failure to completely and timely disclose the Campaign s financial activity. The Campaign did not report or inaccurately reported financial transactions to the Board (see Finding #1). The Board found the Campaign in violation and assessed $200 in penalties. The Campaign did not disclose payments made by a vendor to subcontractors (see Finding #2). The Board found the Campaign in violation and assessed a $50 penalty. Contribution Findings - All campaigns are required to abide by contribution limits and adhere to the ban on contributions from prohibited sources. Further, campaigns are required to properly document and disclose all contributions. Findings in this section relate to the Campaign s failure to comply with the requirements for contributions under the Act and Rules. During the pre-election period, the Campaign accepted the following over-thelimit contribution: NYC District Council of Carpenters, $1,000 on March 13, 2009 and $2,750 on August 19, The Campaign refunded the over-thelimit portion on September 8, The Board found the Campaign in violation and assessed a $125 penalty. Expenditure Findings - Campaigns participating in the Program are required to comply with the spending limit. All campaigns are required to properly disclose and document expenditures and disburse funds in accordance with the Act and Rules. Findings in this section relate to the Campaign s failure to comply with the Act and Rules related to its spending. The Campaign made post-election expenditures that were not permissible and election-related (see Finding #3). The Board found the Campaign in violation and assessed a $577 penalty. Friends of Delia M. Hunley-Adossa (Dee) 5 March 14, 2012

8 FINDINGS AND RECOMMENDATIONS 1. Financial Disclosure Reporting - Discrepancies Campaigns are required to report every contribution, loan, and other receipt received, and every disbursement made. See Administrative Code 3-703(6) and Rule In addition, campaigns are required to deposit all receipts into an account listed on the candidate s Certification. See Administrative Code 3-703(10) and Rule 2-06(a). Campaigns are also required to provide the CFB with bank records, including periodic bank statements and deposit slips. See Administrative Code 3-703(1)(d), (g), and Rules 4-01(a),(b)(1),(f). a) The Campaign must provide the following bank, credit card, and merchant account statements: Name Statement Period WaMu/JP Morgan Chase Bank September 22, 2009 to present JP Morgan Chase Bank May 1, 2010 to May 28, 2010, July 1, 2010 to July 30, 2010 JP Morgan Chase Credit Card July 12, 2010 to September 23, 2010 b) The Campaign did not report 26 disbursements totaling $1, that appeared on its bank statements (see Exhibit I). c) The Campaign reported the following transactions that do not appear on its bank statements: Name Check No./ Transaction Type Statement/ Schedule/ Transaction ID Paid Date Amount NYC Board of Elections 95 9/F/R /10/09 $50.00 Walmart Debit 12/F/R /29/09 $65.00 Total $ Friends of Delia M. Hunley-Adossa (Dee) 6 March 14, 2012

9 d) The Campaign reported the following duplicate transaction: Check No./ Transaction Type Statement/ Schedule/ Transaction ID Duplicate Reported Amount Paid Name Date Amount Staples Credit Card 12/P/R /12/09 $ Nimmons, Charlene N/A 10/D/R /12/09 $ e) A review of the Campaign s deposit slips revealed the following discrepancy: Total Reported Total Cash per Dollar Percent Cash Receipts Deposit Slips Variance Variance $9, $7, $1, % Note: See also Finding #1f. f) The Campaign must provide copies of the requested itemized deposit slips (see Exhibit II and see also Finding #1e). Previously Provided Recommendation a) You must provide all pages of the requested bank and credit card statements. b) You must provide documentation for and amend your disclosure statements to report these unreported transactions. c) For each transaction reported in the Campaign s disclosure statements but not appearing on the Campaign s bank statements, you must provide evidence to show that the transaction cleared the bank (i.e., a copy of the front and back of the check, or the missing bank statement), was reported in error, or amend your disclosure statement to delete the transaction as an expenditure payment and report it as an in-kind contribution. d) For duplicate transactions, you must amend your disclosure statements by deleting the duplicate transactions. If the transaction is not a duplicate, you Friends of Delia M. Hunley-Adossa (Dee) 7 March 14, 2012

10 must explain why the transaction is not a duplicate, provide documentation, and amend your disclosure statement to accurately report the transaction. e) You must compare the receipts reported in your financial disclosure statements to supporting documentation, including deposits slips, bank statements, and documentation not previously submitted to resolve the listed discrepancies. f) You must provide copies of the requested itemized deposit slips. Please note that any newly entered transactions will only appear as new transactions in an amendment to the last disclosure statement, even if the transaction dates are from earlier periods. Also note that the Campaign must file an amendment for each disclosure statement in which transactions are being modified. Once all data entry is completed, you should run the Modified Statements Report in C-SMART to identify the statements for which amendments must be submitted. If any new transactions have been added, you must amend Disclosure Statement 16. Campaign s Response a) For the WaMu/JPMorgan Chase account, the Campaign provided the bank statement for August 21, 2009 to September 21, 2009, which had a balance of $0. However, the Campaign did not submit proof that the account was subsequently closed. For the JP Morgan Chase Bank and the JP Morgan Chase Credit Card accounts, the Campaign did not provide the requested statements. b) The Campaign stated that it input the unreported transactions into C-SMART. However, the Campaign did not amend its disclosure statements to report them. Friends of Delia M. Hunley-Adossa (Dee) 8 March 14, 2012

11 c) The Campaign deleted the Walmart transaction. The Campaign did not address the expenditure reported to the NYC Board of Elections. d) The Campaign did not respond to this finding. e) The Campaign provided itemized deposit slips for the deposits made on May 14, 2009, August 27, 2009, August 28, 2009, and September 8, This reduced the variance to $469.24, or 5.42%. f) The Campaign did not provide the missing deposit slips. It provided bank statements reflecting the deposits and noted that this was the only documentation they could locate. The Campaign also stated that it made numerous attempts to recover documentation, and that the bank supplied them with what could be recovered. See also Finding #1e. Board Action a) The Board has taken no further action on this matter other than to make this a part of the Candidate s record with the Board. b) The Board found the Campaign in violation and assessed a $150 penalty. c - e) The Board has taken no further action on this matter other than to make this a part of the Candidate s record with the Board. f) The Board found the Campaign in violation and assessed a $50 penalty. 2. Possible Subcontractors Subcontractors are vendors that a campaign s vendor may hire to supply goods/services. If a vendor hired by a campaign pays a subcontractor more than $5,000, the campaign must report the vendor, the name and address of the subcontractor, the amounts paid to the subcontractor, and the purpose for the subcontracted goods/services. See Rule 3-03(e)(3). Friends of Delia M. Hunley-Adossa (Dee) 9 March 14, 2012

12 The vendors listed below received large payments and may have subcontracted goods and/or services. Therefore, the Campaign may not have reported subcontractors used by these vendors, as required: Payee Amount Paid Glenwood Foster, Inc. $32, YK Services Ltd. $15, Visibility Consulting Services $18, Previously Provided Recommendation You must provide a copy of the Subcontractor Form (see the 2009 Campaign Finance Handbook or CFB s website, to the vendor for completion in order to verify whether or not subcontractors were used by the above vendors. The completed form must be submitted with your response. In addition, if subcontractors were used and paid more than $5,000, you must amend your disclosure statements to report subcontractor information. If the vendor does not complete the Subcontractor Form, submit documentation of your attempts to obtain this information as part of your response. Campaign s Response The Campaign submitted a completed copy of the Subcontractor Disclosure Form for Glenwood Foster, Inc., stating that the vendor had subcontracted with Century Direct, LLC for $18, However, the Campaign did not amend its disclosure statements to report Century Direct, LLC as a subcontractor, as required. The Campaign provided copies of s with YK Services Ltd. inquiring whether the vendor had used subcontractors and requesting that they complete the Subcontractor Disclosure Form. Friends of Delia M. Hunley-Adossa (Dee) 10 March 14, 2012

13 The Campaign did not respond to CFB staff s request for information regarding subcontractors used by Visibility Consulting Services. Board Action Regarding Glenwood Foster, Inc. and YK Services Ltd., the Board has taken no further action on these matters other than to make them a part of the Candidate s record with the Board. Regarding Visibility Consulting Services, the Board found the Campaign in violation and assessed a $50 penalty. 3. Expenditures Post Election After the election, campaigns may only make disbursements for the preceding election, or for limited, routine activities involving nominal costs associated with winding up a campaign and responding to the post-election audit. Campaigns have the burden of demonstrating that post-election expenditures were for the preceding election or were for such limited and routine activities. See Administrative Code 3-710(2)(c) and Rule 5-03(e)(2). A review of the Campaign s records after its response to the Draft Audit Report revealed that the expenditures listed on Exhibit III reported by the Campaign may be improper post-election expenditures due to their timing, amount, purpose, and/or lack of documentation. Previously Provided Recommendation The Campaign was informed in the Alleged Violations and Recommended Penalties Notice that it must provide documentation and information showing that each Friends of Delia M. Hunley-Adossa (Dee) 11 March 14, 2012

14 expenditure was for the preceding election or was a routine and nominal expenditure associated with winding up the Campaign, or responding to the post-election audit. Campaign s Response In response to the Alleged Violations and Recommended Penalties Notice, the Campaign stated that the wage liabilities were permissible because the workers helped close the campaign office. The Campaign provided copies of timesheets listing the workers duties as closing the office but the timesheets were not signed by the employees or the treasurer and the timesheets were not dated. Regarding Verizon transactions 16/F/R and 16/N/R , the Campaign stated that the expenditures were post-election, but were within the post-election expenditure time frame. The Campaign did not provide documentation with dates or descriptions of services, or proof of location where services were provided. Board Action The Campaign did not demonstrate that the expenditures for wages were permissible, or that the post-election expenditures to Verizon were associated with winding up the Campaign. The Board found the Campaign in violation and assessed a $577 penalty. Friends of Delia M. Hunley-Adossa (Dee) 12 March 14, 2012

15 03/14/2012 2:50 PM New York City Campaign Finance Board Campaign Finance Information System Transaction Summary Report Appendix 1 Page 1 of 1 Candidate: Office: Election: Hunley-Adossa, Delia M (ID:1325-P) 5 (City Council) Opening cash balance (All committees) $ Total itemized monetary contributions (Sch ABC) $45, Total unitemized monetary contributions $ Total in-kind contributions (Sch D) $6, Total unitemized in-kind contributions $ Total other receipts (Sch E - excluding CFB payments) $ Total unitemized other receipts $ Total itemized expenditures (Sch F) $119, Expenditure payments $117, Advance repayments $1, Total unitemized expenditures $ Total transfers-in (Sch G) $0.00 Type 1 $0.00 Type 2a $0.00 Type 2b $ Total transfers-out (Sch H) $0.00 Type 1 $0.00 Type 2a $0.00 Type 2b $ Total loans received (Sch I) $ Total loan repayments (Sch J) $ Total loans forgiven (Sch K) $ Total liabilities forgiven (Sch K) $ Total expenditures refunded (Sch L) $2, Total receipts adjustment (Sch M - excluding CFB repayments) $4, Total outstanding liabilities (Sch N - last statement submitted) $64, Outstanding Bills $61, Outstanding Advances $3, Total advanced amount (Sch X) $ Net public fund payments from CFB $87, Total public funds payment $87, Total public funds returned $ Total Valid Matchable Claims $14, Total Invalid Matchable Claims $4, Total Amount of Penalties Assessed $ Total Amount of Penalty Payments $ Total Amount of Penalties Withheld $952.00

16 Exhibit I Friends of Delia M. Hunley-Adossa (Dee) 2009 Elections Unreported Transactions (see Finding #1b) Check No./ Vendor/Description Transaction Type Date Amount Returned Deposited Item Fee debit 07/22/09 $12.00 Account Closing Fee debit 08/21/09 $25.00 Card Replacement Fee debit 08/24/09 $5.00 Chaney, Michael /24/09 $ Chaney, Michael /25/09 $ USPS debit 08/31/09 $7.95 Official Checks Charge debit 09/03/09 $8.00 Official Checks Charge debit 09/03/09 $8.00 Official Checks Charge debit 09/03/09 $8.00 Official Checks Charge debit 09/03/09 $8.00 Official Checks Charge debit 09/03/09 $8.00 Official Checks Charge debit 09/03/09 $8.00 Jackson, Unknown /04/09 $ NYC Taxi debit 09/04/09 $12.30 Official Checks Charge debit 09/08/09 $8.00 Junior s Restaurant debit 09/08/09 $61.99 Rivera, Geovanni /09/09 $40.00 Café Shane credit card 09/11/09 $27.70 Deposited Item Returned debit 09/16/09 $50.00 Deposited Item Returned Fee debit 09/16/09 $10.00 Shopdeluxe debit 09/17/09 $42.11 Leisure Rewards Annual Fee debit 09/24/09 $25.00 Leisure Rewards Annual Fee debit 09/24/09 $25.00 Insufficient funds fee debit 11/16/09 $25.00 Service Fee debit 11/30/09 $16.00 Service Fee debit 12/31/09 $16.00 Total $1,797.05

17 Exhibit II Friends of Delia M. Hunley-Adossa (Dee) 2009 Elections Missing Deposit Slips (see Finding #1f) Date of Deposit Dollar Amount 01/26/09 $ /13/09 $ /10/09 $ /21/09 $275.00

18 Exhibit III Friends of Delia M. Hunley-Adossa (Dee) 2009 Elections Impermissible Post Election Expenditures (see Finding #3) Name Statement/ Schedule/ TransactionID/ BOE Disclosure Date Amount Shopdeluxe Unreported 09/17/09 $42.11 Church, Leevone 16/N/R /19/09 $ Griffin-Daza, Debra A. 16/N/R /19/09 $ Jones, Ta-Shema 16/N/R /19/09 $ Jones, Ta-Shema 16/N/R /25/09 $ Church, Leevone 16/N/R /26/09 $ Griffin-Daza, Debra A. 16/N/R /26/09 $ Jones, Ta-Shema 16/N/R /02/09 $ Church, Leevone 16/N/R /03/09 $ Griffin-Daza, Debra A. 16/N/R /03/09 $ Verizon 16/F/R /04/10 $ Verizon 16/N/R /10/09 $ Verizon 16/N/R /07/10 $ Verizon July 2010, Schedule F 02/01/10 $ Verizon Unreported 02/10/10 $14.50 Verizon July 2010, Schedule F 03/26/10 $10.90 Y&T Enterprise Unreported 04/14/10 $ Total $5, This transaction is reported as being for $313.02, but per the credit card statement, is actually for $

As detailed in the attached Final Board Determination, the Campaign must repay the following:

As detailed in the attached Final Board Determination, the Campaign must repay the following: December 20, 2012 Yanet I. Ciprian Claxton For City Council Dear Ms. Ciprian: Please find attached the New York City Campaign Finance Board s (the CFB or Board ) Final Audit Report for the 2009 campaign