1090 Vermont Ave NW, Suite 750 SANDLER REIFF Washington, DC 20005 

SANDLER REIFF LAMB www.sandlerreiff.com 

ROSENSTEIN & BIRKENSTOCK, P.C. T : 202-479-1 111 

F: 202-479-1 115 

August 31, 2021 

Ms. Dayna C. Brown 

Acting Assistant StaffDirector 

Audit Division 

Federal Election Commission 

1050 First Street, N.E. 

Washington, D.C. 20463 

Dear Ms. Brown: 

This letter will serve as the response ofthe Kentucky State Democratic Central Executive 

Committee ("KSDCEC") to the Interim Audit Report ("IAR") ofthe Federal Election 

Commission's Audit Division (''the Audit Division") for the period covering the KSDCEC's 

financial activities for 2017 and 2018. 

The response to each ofthe Audit Division's four findings is as follows: 

Finding #1 

The IAR's first finding misstatements of financial activity by the KSDCEC in 2017 and 

2018. In response to these errors, the KSDCEC has filed a Form 99 outlining those errors and 

omissions as requested by the Audit Division. A copy ofthe Form 99 is attached to this letter as 

Exhibit A. 

Finding #2 

The IAR's second finding relates to the apparent receipt of excessive contributions totaling 

$78,043. As a threshold matter, the KSDCEC disagrees with the Commission' s legal basis for this 

finding. Each donor that made the contribution to the KSDCEC made their contribution with the 

full understanding that their contribution was to be split between the DSCEC' s federal account and 

non-federal account. There is nothing in the Commission's regulations that directly address the 

process whereby a political party committee must notify a donor that their contribution is excessive 

and offer a refund in lieu ofthe splitting oftheir contribution. To be sure, the KSDCEC provides 

clear notice in its solicitation materials that contributions are subject to the prohibitions and 

limitations ofthe Act. In addition, any portion of a contribution that exceeded the federal limit was 

timely transferred by the KSDCEC from its federal account to its non-federal account. 

Nevertheless, the KSDCEC has provided written notice to each donor identified by the Audit 
Division and sent the letters informing them that their contribution was split or attriband offering 

the option ofa refund. In addition, for two donations, the KSDCEC informed the contributor that 

their contribution was attributed to a spouse. A full set ofthese letters is attached as Exhibit B. It 

should be noted that no donor has requested a refund or otherwise objected to the split oftheir 

contribution between the KSDCEC's federal and non-federal accounts. 

Finding #3 

The IAR's third finding involved record.keeping for payroll. In response to the Audit 

Division's inquiries regarding this issue, the KSDCEC has instituted procedures to ensure that time 

records are maintained for all employees who are paid in part with non-federal funds 

Finding #4 

The IAR's fourth finding relates to the apparent excessive coordinated party expenditure 

related to mailings undertaken by the KSDCEC on behalfof a nominee for United States House of 

Representatives, Amy McGrath. In response to this finding please see the attached documentation 

found in Exhibit C. The documentation provides both sign in sheets, photographs, as well as 

declarations from both a volunteer who was present at the mailings, a party employee who 

coordinated the recruitment of volunteers, as well as a mail house employee who coordinated 

volunteer activity with the KSDCEC and was personally familiar with volunteer activity 

undertaken in connection with these mailings. 

Please note that the attached declarations comply with the formatting requirements of28 

U.S.C. § 1746. Thus, the Commission cannot characterize them as "unswom." 

As the IAR acknowledges, there is considerable uncertainty ofthe amount ofvolunteer 

involvement required to satisfy the exemption and based upon the information provided to the 

Audit Division by the KSDCEC, the Audit Division should consider this matter resolved 

Finding #5 

The IAR's fifth finding involves the apparent failure to file a 24 hour reports for a door 

hanger totaling $14,105 that was disseminated by the KSDCEC on behalfofAmy McGrath. 

Although the KSDCEC mischaracterized this expense as a mailing activity on its reports, the door 

hangers were printed material that were disseminated by volunteers by manually placing them on 

the individual doors of voters. 

As a threshold matter, during the fieldwork, the KSDCEC objected to the characterization 

ofthese expenditures as independent expenditures. These expenditures were properly made as 

exempt activities and were fully coordinated with its nominee. With respect to the door hanger, it 

is our understanding that since these activities were not public communications, they cannot be 

considered coordinated communications and no further action would be necessary regarding these 

expenditures. Notwithstanding, it should be noted that the door hanger was distributed by 

volunteers. To that end, please see the attached declaration by KSDCEC Executive Director, Mary 

Nishimuta, that confirms that the door hangers were distributed by volunteers. It should be noted 

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that it is quite uncommon for state party committees to create and maintain documentation relating 

to the volunteer component ofsuch daily canvassing activities. They are much to voluminous and 

difficult for a state party to document. In addition, since such activities are not public 

communications, and cannot be considered coordinated communications, the need to create and 

maintain such documentation is unnecessary. As a general matter, in my experience, the Audit 

Division has never requested such documentation for or questioned such canvassing activities, and, 

other than the error in reporting, it is unclear why they are doing so in this instance. 

Ifyou require any further information, or have any other questions, please call me at (202) 

479-1111. 

Sincer.~ly, 

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NeT(Rciff t/ I 

Counsel to the ]9:entucky State Democratic 

Central Executive Committee 

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