Supervisors press Ethics Commission over backlog in mandatory campaign and lobbying audits

Supervisor Reza Peskin told the committee on Nov. 3 that audits required by public financing rules have fallen behind and asked for a written schedule for completion. "I inquired over the last couple of years as to the status of the 2020 audits, and none of them have been performed," Peskin said, calling the lack of timelines "a matter of broader concern" for the committee.

Director Pelham, representing the Ethics Commission, said the office has an audit manager and three auditors and is pursuing external auditing resources to clear a backlog. "There are 2 audits from 2019 that remain to be completed," Pelham said, and the commission has initiated audits of the 2020 cycle and expects to start on 2022-cycle audits in 2023 given available resources.

Pelham cited multiple causes for delays, including the pandemic, staffing vacancies and work to incorporate recommendations from the Budget and Legislative Analyst (BLA) performance audit. She said the commission is working with the Office of Contract Administration and the Comptroller to secure an external multi-year auditing contract and will use both internal and external auditors to accelerate completion. "We plan to complete them within 12 months" once external auditors are in place, Pelham said.

Supervisors pressed for more precise, written timelines and questioned whether the controller's offer of auditing support had been accepted earlier. Peskin repeatedly asked for a schedule in writing; Pelham committed to provide a specific, public summary that lists which audits are underway, when the commission expects to start each remaining audit and projected completion dates.

Chair Dean Preston said the committee should receive that schedule promptly and urged departments to supply written materials before future hearings. Pelham agreed and said she could provide the committee with the requested schedule within days.

The committee closed public comment on the item (no in-chamber commenters, no remote callers) and voted to continue the matter to the call of the chair.