q3 and 12g reporting roundtable for candidates october 3, 2012 ...

Q3 and 12G Reporting Roundtable

for Candidates

October 3, 2012

http://www.fec.gov/info/roundtable_materials/workshopmaterials.shtml

2012 FEC Information Division

Objectives

• Learn about Reports Analysis Division (RAD) review process; how to respond to Requests for Additional Information

• Reporting Requirements

• Discuss disclosure scenarios and common reporting errors

RAD Review Process


3 Branches • Authorized Branch – 15 analysts

► Review all federal candidate committee reports► 2 month training program and mentored for 6-12 months

• Party Non-Party Branch – 20 analysts► Review all Party and PAC reports► 4-5 month training program and mentored for 6-12 months

• Compliance Branch – 4 analysts► Implement the Non-Filer and Administrative Fine programs

Organization of RAD


Authorized Branch Analysts

• Each analyst is assigned 200-350 committees

• House and Senate campaigns assigned by state

• Presidential and Delegate committees are assigned to senior analysts


Analyst Responsibilities

• Review assigned committees’ reports by established deadlines

• Assist committees by phone and log calls

• Meet with committees by request

• Participate in FEC conferences and roundtables

• Special projects


RAD Review and Referral Policy

• RAD reviews according to a policy with confidential thresholds that is approved by the Commission.

• The Commission reassesses the policy every election cycle with input from RAD and other offices (i.e., OGC).


RAD Review and Referral Policy

• Categories of review include: ► Prohibited, Excessive and Impermissible

Contributions► Mathematical Discrepancies ► Failure to Provide Supporting Schedules► Improper Itemization of Individual Contributions► Improper Itemization of Disbursements

• RFAI threshold


Review of Reports

• Thresholds are applied on a per report basis. Exception: increased and decreased activity on amended reports.• If reoccurring reporting issues exist on multiple reports, a committee

may receive multiple RFAIs identifying the same issue.

• RAD does not consider previous responses to RFAIs.

• Exception: Responses relating to best efforts procedures apply for the two year election cycle

• It’s possible to see an issue questioned on one report, but not on another.


Request for Additional Info

• If internal thresholds are met, analyst sends RFAI with response due date in upper right corner.

• No extensions granted.

• Responses are assessed by analysts.

• Analysts do not reply to committee responses.



Response Due Date



Analyst’s Phone Number

Analyst’s Name


RFAIs via Email

• RAD is now emailing RFAIs.• Opt-Out Option: File a Form 99 to

request that RFAIs be mailed via USPS.

• Committees can now disclose up to two email addresses on Form 1.


Responding to RFAIs

• Committee should contact its analyst before and/or after filing a response.

• Analysts do not make legal conclusions.• Analysts do not contact committees in every

case when a response is not sufficient.


How to Respond to RFAIs

• File an amendment to add, change or delete actual entries on FEC report.

• Use miscellaneous text submission (Form 99) for narrative responses that do not affect actual entries within a report (e.g., demonstrating best efforts).


OGC & ADRO Referrals

• Policy includes thresholds for further Commission action.

• Adequate and timely responses may be considered.

• RAD calls committee before referring to OGC or ADRO to explain RFAI and request response.


Audit Consideration Factors

• Level of financial activity

• Responses to RFAIsLate or no responseInadequate response

• Election results (Authorized Committees only)

• Number of amendments filed is NOT a factor.

• Number of RFAIs received is NOT a factor if responses were adequate and timely.


Objectives





Timely Filing


2012 Reporting Schedule

Reports Coverage Dates Due Date

April Quarterly 1/1/2012 – 3/31/2012 4/15/2012

July Quarterly 4/1/2012 – 6/30/2012 7/15/2012

October Quarterly 7/1/2012 – 9/30/2012 10/15/2012

Pre-General 10/1/2012-10/17/2012 10/25/2012

Post-General Covers from 1st day of period to 11/26 (10/18-11/26)

12/6/2012

Year End (General Election candidates)

11/27/2012 – 12/31/2012 1/31/2013

Year End (non-General Election candidates)

10/1/2012 – 12/31/2012 1/31/2013

Quarterly Reports

For more info, visit http://www.fec.gov/info/report_dates.shtml


Are You Required to File Electronically?

If your committee raises or spends more than $50,000 during a calendar year, or expects to do so,

If your committee raises or spends $50,000 or less during a calendar year, and does not expect to exceed that threshold,

YES.

NO. Voluntary Electronic

Filing

Paper Filing OR

Mandatory Electronic

Filing


Electronic Filing

www.fec.gov/elecfil/electron.shtml


Sample Password Letter This document serves as an official password request for the purpose of filing electronic reports for [ENTER YOUR COMMITTEE NAME]. The FEC-assigned, 9-digit Committee ID for this Committee is [ENTER YOUR COMMITTEE ID (e.g., C00123456)].

You may contact me at [ENTER YOUR VOICE PHONE HERE].

I represent that I am the duly appointed treasurer and have authority as such to sign FEC reports for the above committee. Sincerely, ___________________________________ ___________________________________[PRINT TREASURER’S NAME] [TREASURER’S SIGNATURE]

For more info, visit http://www.fec.gov/elecfile/electron.shtml


Filing on Paper

• No Extensions• Filing dates are not extended for weekends or holidays. • Filings must be received on the business day preceding

filing date.

• Registered vs. Overnight Mail• If filing using USPS registered mail, keep receipt. • “Overnight Mail” means express or priority mail with

delivery confirmation or overnight service with online tracking system. Same terms as certified/registered mail. (Keep receipt/tracking number.)


Administrative Fine Program

• Civil money penalties for filing late, or not filing at all.

• Size of fine depends on various factors (including level of financial activity and prior Administrative Fines assessed).

• Penalty calculator on FEC website at http://www.fec.gov/af/af_calc.shtml


Best Efforts to File on Time

Best efforts* may be used as a defense for late filing if:• Committee was prevented from filing report on

time by reasonably unforeseen circumstances beyond committee’s control and

• Filed the report no later than 24 hours after the end of those circumstances

*Not the same as best efforts for obtaining contributor information


Committee may use best efforts defense if late filing is due to:

• Failure of FEC computers/Commission-provided software, despite committee seeking technical assistance from FEC personnel and resources

• Widespread disruption of information transmissions over internet

• Severe weather or other disaster-related event



Committee may not use best efforts defense if late filing is due to:• Negligence;• Illness, inexperience or unavailability of treasurer

or committee staff;• Committee computer, software or ISP failures; • Delays caused by committee vendors/contractors;• Failure to know; or • Failure to use filing software properly.



Objectives




Reporting Financial Activity


FEC Form 3

• Used by House and Senate filers

• Cover Page – shows report type/coverage dates

• Summary Page – overview of receipts and disbursements

• Detailed Summary Pages – overview of receipts and disbursements by category

• Schedules – show detailed info by line number


Detailed Summary PageReceipts


Reporting Receipts

Itemize regardless of amount: Contributions from party committees and

organizations Contributions from other political committees Transfers Loans

All other receipts:• Itemize once they exceed $200 when

aggregated with other receipts from that same source during an election cycle


Detailed Summary Page:Disbursements


Reporting Disbursements

Itemize regardless of amount: Transfers to affiliated committees Loan repayments Loans made Contributions made to other federal

candidates Refunds to other political committees

All other disbursements:• Itemize once they exceed $200 in

aggregate during an election cycle


• Rule of thumb: Could reader discern why a payment was made simply by reading the description provided?

• Non-exhaustive lists available on RAD’s FAQ’s page on FEC.gov at:

http://www.fec.gov/law/policy.shtml#purpose

Purpose of Disbursement


Purpose of Disbursement

Entry must be sufficiently specific, when considered with the identity of the recipient, to provide a clear reason for the payment.

ABC Group

123 Money Lane

City, ST 00000

FEC Compliance Consulting

07 15 2012

10,000.00

Common Reporting Errors


Avoid Common Mistakes

• Check for math errors.• Include all appropriate schedules, w/ all information.• Provide all information required by schedule.• Consult form instructions available on our website.• Designate contributions. • Only enter contributors into reporting software once

to avoid aggregation problems.• Ensure correct committee name disclosed for

contributions made/received.


Respond completely to RFAIs by deadline specified.

Contact your analyst to clarify questions and issues! Please contact analyst if you are not sure what is wrong. The analyst can assist prior to the report being amended.

Consult most recent copies of inadequate/adequate purpose lists and use rule of thumb.

Best Practices: Reporting


• Ensure current contact information (mailing address, email address, and phone number) appear on Statement of Organization (FEC Form 1).

• Up to 2 email addresses may be provided.

Contact Information


Statement of Organization

Provide a current mailing address

Email required


▼ Amendments• File within 10 days after change in

information

• E-filers submit a complete Form 1

• Paper filers only complete portions requiring changes


X

X


RAD FAQs Web Page

http://www.fec.gov/rad/index.shtml

Click here


http://www.fec.gov/rad/index.shtml

RAD FAQs Web Page


Reporting Scenarios


48-Hour Notices

Scenario #1


48-Hour Notices

48-Hour Notices are required when a contribution of $1,000 or more is received between 20 days and 2 days before an election.

• 48-Hour Notices are filed on the FEC Form 6.

• Each Form 6 must be filed within 48 hours of receiving a contribution of $1,000 or more.

• Loans and in-kind contributions are included.


Scenario #1

• General Election: November 6, 2012• 48-Hour Notice Period: October 18th – November 3rd

• Which contributions require a 48-Hour Notice?• $1,000 check received October 20, 2012• Computer worth $1,400 received October 22, 2012• $5,000 check received November 5, 2012 X


Scenario #1: FEC Form 6

Arthur Fonzarelli for Congress Committee

Any town CA 12345Arthur Fonzarelli House CA 72 C00123456

X

Tone Patti602 Main StreetAny Town CA 12345

Self Employed

Transaction ID: F6.4115 10/20/2012 1,000.00

10/21/2012Arthur Fonzarelli

Physician

One Main Street

48 Hour Notices must be submitted within 48 hours of receiving contributions

of $1,000 or more (including loans and

in-kind contributions).


48 Hour Notices

Methods for Filing Form 6:

• Electronically through FECFile and other filing software.

• Electronically through the FEC website’s online webform.*

• For Senate committees, by mail or fax to the Secretary of the Senate.

* FEC.gov / Electronic Filing / Online Filing / Online Webforms / Form 6


Joint Fundraising Transfer In

Scenario #2


Joint Fundraising

• Election-related fundraising held jointly by campaign + one or more other committees

• Joint Fundraising Representative (JFR)• Collects/deposits joint fundraising contributions• Pays expenses and transfers proceeds to participants• Participants amend Form 1 to designate JFR as an

authorized committee

• Written Agreement

• Outlines allocation formula for proceeds and expenses among all participants



List Joint Fundraising Representative

Committee that collects receipts, pays bills and distributes proceeds for joint fundraising effort


Joint Fundraising Representative can be a participating committee or new committee

X

X

Catatonic State Party Committee 0 0 0 0 0 0 0 0

Local Yokel Party Committee 0 0 0 0 0 0 0 1



Scenario #2

• Representative Cosmo Kramer and Senator George Costanza form Kramer/Costanza Victory Fund• Split proceeds 50%

• Event raises $5,000• $2,500 from two individuals

• Event expenses were $1,000

• Each committee receives $2,000 from JF


Joint Fundraising: Transfer In

Kramer/Costanza Victory Fund

48 West 77th Street

2,000.00

1,250.00

1,250.00

07 20 2012

07 23 2012

07 20 2012

New York NY 10024

00558741

X

X

X

2,000.00

Lloyd Braun

340 Amsterdam Avenue

New York NY 10024

NYC Mayor’s Office Chief of Staff

1,250.00

David Puddy

375 West End Avenue

New York NY 10024

West End Auto Body Mechanic

1,250.00

X

Cosmo Kramer for Congress Committee

MEMO

Joint Fundraising Committee

Kramer/Costanza Victory Fund - Joint Fundraiser

MEMOKramer/Costanza Victory Fund - Joint Fundraiser


Reattributions &

Redesignations

Scenario #3


Scenario #3

Reattribute:

• To change the individual whose contribution limits will be affected.

• Has to be done within 60 days of receipt.

• Use presumptive reattribution for contributions made using a check with more than one name but one signature to reatribute the excessive portion from the signatory to the other account holder.


Scenario #3

Redesignate:

• To change the election toward which a contribution will be counted.

• Has to be done within 60 days of receipt.

• Use presumptive redesignation for undesignated contributions made before the primary to redesignate the excessive portion to the general election.


Scenario #3A

Shirley Feeney and Carmine Ragusa112 Dock StreetAnytown, USA 12345

August 15, 2012

Shirley Feeney

Five thousand dollars XXXXXXXXXXXX

5,000.00Laverne De Fazio for Congress


Scenario #3A: Reattributions

Laverne De Fazio for Congress

Carmine Ragusa

- 2,500.00

2,500.00

MEMO - Reattribution

Shirely Feeney

5,000.00

X

X

X

08 15 2012

08 15 2012

08 15 2012

112 Dock StreetAnytown US 12345

Anytown US 12345112 Dock Street

112 Dock Street Anytown US 12345

X

2,500.00

2,500.00

Reattributed—See below

Anytown Symphony Musician

MusicianAnytown Symphony

Dance Company Inc. Dancer

MEMO-Reattribution below

5,000.00

Shirley Feeney

Shirley Feeney


Scenario #3B

Lucy Ball914 Upper Crest LaneAnytown, USA 12345

Laverne De Fazio for Congress

Two Thousand, nine-hundred and xx/100 --------

2,900.00

September 1, 2012

Lucy Ball


400.00

AccountantFriedman &Jones

Scenario #3B: Redesignations

Lucy Ball

09 03 2012914 Upper Crest LaneAnytown US 12345

2,900.00

2,900.00X

Lucy Ball

Lucy Ball

914 Upper Crest Lane


Anytown US 12345

Anytown US 12345

X

X 2,900.00

2,900.00

Friedman & Jones

Friedman & Jones Accountant

Accountant

09 03 2012

09 03 2012

- 400.00

See redesignation below

MEMO

See redesignation below

RedesignationMEMO

2012 Primary Debt

Lucy Ball


Anytown US 12345

2,900.00

09 03 2012

400.00AccountantFriedman & Jones

X

MEMORedesignation

2012 Primary Debt


Earmarked Contributions

Scenario #4


Earmarked Contributions

Contributions to a candidate directed by the contributor through an intermediary, or conduit

• Contribution must be forwarded to campaign within 10 days of conduit’s receipt.

• Conduit must provide campaign with contributor information for FEC report.


Scenario #4AAA PAC

11730 Plaza America Drive, #300

Anytown, US 12345

Dear Ms. De Fazio:

On April 13, a Gold Star Member gave me $1,000 and asked that it be contributed to your campaign committee. This contribution was not solicited by our PAC. We are merely passing it along in the form of the enclosed PAC check.

The total amount, $1,000 should be attributed to Natalie Schafer – she is an Audiologist and resides at 5739 Main Street, Anytown, US 12345.

Wishing you continued success in the general election season.

Andrew Squigman

Treasurer, AAA PAC


Scenario #4:Earmarked Contribution

Laverne De Fazio for CongressNatalie Schafer

5739 Main Street

Anytown US 12345

X

X

07 13 2012

1,000.00

1,000.00

American Academy of Audiologists PAC (AAA PAC)

11730 Plaza America Drive, Suite 300

Anytown US 12345

X1,150.00

AudiologistSelf

1,000.00

07 15 2012

00342972

Both entries relate to a

single receipt.

MEMO

Earmarked through AAA PAC

Total earmarked through conduit - PAC limit not affected


Candidate Loans from Personal

Funds

Scenario #5


Candidate Loans from Personal Funds

• Acceptable sources• Assets• Income• Interest/Dividends• Bequests

• Unlimited amount

• Repayment and forgiveness options


Candidate Loans from Personal Funds

• On which schedules should Loans be reported?

• Schedule A: Receipt of a loan.

• Schedule B: Loan repayments.

• Schedule C: Continuously reporting loans until they are fully paid or forgiven.


Scenario #5:Candidate Loan from Personal Funds

Arthur Fonzarelli for Congress

Arthur Fonzarelli– [Personal Funds]

709 Main Street

Anytown US 12345

Self Attorney

x60,000.00

01 10 2011

50,000.00

x

Receipt - Schedule A, Line 13(a)

2012




50,000.00 0.00 50,000.00

01 10 2011 07 25 2012 0

x

x

Loan Reporting – Schedule C, Line 13(a)

709 Main StreetAnytown US 12345





709 Main Street

Anytown US 12345

03 15 2011

5,000.00

x

Loan Repayment – Schedule B, Line 19(a)

x

Candidate Loan Payment


2012




50,000.00 5,000.00 45,000.00

01 10 2011 07 25 2012 0

x

x

Loan Repayment – Schedule C, Line 13(a)

709 Main StreetAnytown US 12345



Candidate Loan Forgiveness

• Written, signed letter from candidate

• Schedules B and C do not show payments

• Make sure loan ending balance is correct




50,000.00 5,000.00 0.00

01 10 2011 07 25 2012 0

x

x

Loan Forgiveness – Schedule C, Line 13(a)

709 Main Street

Anytown US 12345



Candidate Loans >$250K

Special rules for personal funds loans aggregating >$250,000 for an election:

• The committee may use contributions made on/before election date to repay entire loan(s) amount: must do so within 20 days of the election.

• The committee may use contributions made after the election date to repay only up to $250,000; the rest must be converted to a contribution from the candidate by the 21st day after the election.


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q3 and 12g reporting roundtable for candidates october 3, 2012 ...

Documents

fec information division

rad review process slide

multiple reports

date slide

fec conferences

pac reports

amended reports

committee responses