Free Republic

SAN FRANCISCO -- A city audit has found that a controversial nonprofit group founded by political fundraiser Julie Lee overbilled the city for personnel costs, had questionable radio advertising costs and poorly documented its expenses and services. Released this morning, the report recommends that Lee, who is heading to trial on state and federal indictments related other financial dealings of the San Francisco Neighbors Resource Center, return $6,666 to the city. If she cannot document her organization's expenses, the city's Department of Children Youth and their Families should demand an additional $155,493 of nearly $170,000 in grants it gave her,...

Secretary of State Bruce McPherson has dropped plans to sue predecessor Kevin Shelley in an attempt to recover nearly $3 million in federal funds that were misspent or mismanaged. McPherson, who lost to Democrat Debra Bowen in his bid for re-election, has decided not to hire private attorneys to file suit on behalf of his agency in the final six weeks of his term. "At this point, it's up to (Bowen) to recover the money,"

Sacramento -- Overseeing a presidential vote is usually the most challenging time for the state's election chief, but Tuesday's election may be relatively easy for Secretary of State Kevin Shelley compared to what awaits him after the balloting. Investigations into his management of federal voting act money and his handling of employee complaints against him are expected to be made public, and lawmakers back from the campaign trail will begin hearings into allegations lodged against him. A federal grand jury continues to investigate how money from a state grant was apparently diverted to Shelley's 2002 campaign, and the San Francisco...