q3 and 12g reporting roundtable for candidates october 3, 2012 ...
TRANSCRIPT
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
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
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).
2012 FEC Information Division
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
2012 FEC Information Division
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.
2012 FEC Information Division
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.
2012 FEC Information Division
Request for Additional Info
Response Due Date
2012 FEC Information Division
Request for Additional Info
Analyst’s Phone Number
Analyst’s Name
2012 FEC Information Division
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.
2012 FEC Information Division
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.
2012 FEC Information Division
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).
2012 FEC Information Division
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.
2012 FEC Information Division
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.
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
2012 FEC Information Division
Timely Filing
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
Electronic Filing
www.fec.gov/elecfil/electron.shtml
2012 FEC Information Division
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
2012 FEC Information Division
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.)
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
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
Best Efforts to File on Time
2012 FEC Information Division
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.
Best Efforts to File on Time
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
Reporting Financial Activity
2012 FEC Information Division
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
2012 FEC Information Division
Detailed Summary PageReceipts
2012 FEC Information Division
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
2012 FEC Information Division
Detailed Summary Page:Disbursements
2012 FEC Information Division
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
2012 FEC Information Division
• 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
2012 FEC Information Division
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
2012 FEC Information Division
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.
2012 FEC Information Division
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
2012 FEC Information Division
• 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
2012 FEC Information Division
Statement of Organization
Provide a current mailing address
Email required
2012 FEC Information Division
▼ Amendments• File within 10 days after change in
information
• E-filers submit a complete Form 1
• Paper filers only complete portions requiring changes
Statement of Organization
X
X
2012 FEC Information Division
RAD FAQs Web Page
http://www.fec.gov/rad/index.shtml
Click here
2012 FEC Information Division
http://www.fec.gov/rad/index.shtml
RAD FAQs Web Page
2012 FEC Information Division
Reporting Scenarios
2012 FEC Information Division
48-Hour Notices
Scenario #1
2012 FEC Information Division
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.
2012 FEC Information Division
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
2012 FEC Information Division
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).
2012 FEC Information Division
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
2012 FEC Information Division
Joint Fundraising Transfer In
Scenario #2
2012 FEC Information Division
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
2012 FEC Information Division
Statement of Organization
List Joint Fundraising Representative
Committee that collects receipts, pays bills and distributes proceeds for joint fundraising effort
2012 FEC Information Division
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
Statement of Organization
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
Reattributions &
Redesignations
Scenario #3
2012 FEC Information Division
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.
2012 FEC Information Division
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.
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
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
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
914 Upper Crest Lane
Anytown US 12345
2,900.00
09 03 2012
400.00AccountantFriedman & Jones
X
MEMORedesignation
2012 Primary Debt
2012 FEC Information Division
Earmarked Contributions
Scenario #4
2012 FEC Information Division
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.
2012 FEC Information Division
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
2012 FEC Information Division
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
2012 FEC Information Division
Candidate Loans from Personal
Funds
Scenario #5
2012 FEC Information Division
Candidate Loans from Personal Funds
• Acceptable sources• Assets• Income• Interest/Dividends• Bequests
• Unlimited amount
• Repayment and forgiveness options
2012 FEC Information Division
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.
2012 FEC Information Division
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
2012 FEC Information Division
Arthur Fonzarelli for Congress
Arthur Fonzarelli– [Personal Funds]
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
Scenario #5:Candidate Loan from Personal Funds
2012 FEC Information Division
Arthur Fonzarelli for Congress
Arthur Fonzarelli– [Personal Funds]
709 Main Street
Anytown US 12345
03 15 2011
5,000.00
x
Loan Repayment – Schedule B, Line 19(a)
x
Candidate Loan Payment
Scenario #5:Candidate Loan from Personal Funds
2012
2012 FEC Information Division
Arthur Fonzarelli for Congress
Arthur Fonzarelli– [Personal Funds]
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
Scenario #5:Candidate Loan from Personal Funds
2012 FEC Information Division
Candidate Loan Forgiveness
• Written, signed letter from candidate
• Schedules B and C do not show payments
• Make sure loan ending balance is correct
2012 FEC Information Division
Arthur Fonzarelli for Congress
Arthur Fonzarelli– [Personal Funds]
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
Scenario #5:Candidate Loan from Personal Funds
2012 FEC Information Division
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.
2012 FEC Information Division
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