March 1, 2023 

MEMORANDUM 

To: The Commission 

Through: Alec Palmer 

Staff Director 

From: Patricia C. Orrock 

Audit Division 

Kendrick Smith 

Audit Manager 

By: Camilla Reminsky 

Lead Auditor 

Chief Compliance Officer 

Dayna C. Brown 

Assistant Staff Director 

Subject: Audit Division Recommendation Memorandum on Latinos for America 

First (A21-12) 

Pursuant to Commission Directive No. 70 (FEC Directive on Processing Audit Reports), 

the Audit staff presented the Draft Final Audit Report (DFAR) to Latinos for America First 

(LFAF) on February 8, 2023 (see attachment). LFAF did not request an audit hearing. 

This memorandum provides the Audit staff’s recommendation for each finding outlined in 

the DFAR. 

In response to the DFAR, LFAF provided additional comments for Finding 1, Misstatement 

of Financial Activity, as noted below. 

Finding 1. Misstatement of Financial Activity 

In response to the DFAR, LFAF requested that the Audit staff clarify its explanation 

for why the $76,172 in contributions from individuals were not reported. LFAF 

stated “[t]he errors were obviously not intentional, but ... due to lack of experience 

from our volunteer treasurer.” In addition, LFAF stated that it has “implemented 

measures and best practices to remain in compliance moving forward.” 
 

 

 

 

 

 

 

 

 

2 

The Audit staff recommends that the Commission find that LFAF understated its 

reported receipts, disbursements, and ending cash on hand by $75,776, $52,650, and 

$23,037, respectively, in calendar year 2020. 

Finding 2. Increased Activity 

The Audit staff recommends that the Commission find that LFAF understated its 

receipts and disbursements by $152,815 and $183,369, respectively, on the original 

reports filed, prior to audit notification, over the two-year reporting period ending 

December 31, 2020. 

Finding 3. Disclosure of Occupation and/or Name of Employer 

The Audit staff recommends that the Commission find that LFAF failed to disclose 

or inadequately disclosed occupation and/or name of employer information for 130 

contributions from individuals, totaling $39,590. 

The Office of General Counsel has reviewed this memorandum and concurs with the 

recommendations. 

If this memorandum is approved, the Proposed Final Audit Report will be prepared and 

circulated within 30 days of the Commission’s approval. 

If this Audit Division Recommendation Memorandum is not approved on a tally vote, 

Directive No. 70 states that the matter will be placed on the next regularly scheduled 

open session agenda. 

Documents related to this audit report can be viewed in the Voting Ballot Matters folder. 

Should you have any questions, please contact Camilla Reminsky or Kendrick Smith at 

694-1200. 

Attachment: 

- Draft Final Audit Report of the Audit Division on Latinos for America First 

cc: Office of General Counsel 
 

 

Why the Audit 

Was Done 

Federal law permits the 

Commission to conduct 

audits and field 

investigations of any 

political committee that is 

required to file reports 

under the Federal 

Election Campaign Act 

(the Act). The 

Commission generally 

conducts such audits 

when a committee 

appears not to have met 

the threshold 

requirements for 

substantial compliance 

with the Act.1 The audit 

determines whether the 

committee complied with 

the limitations, 

prohibitions and 

disclosure requirements 

of the Act. 

Future Action 

The Commission may 

initiate an enforcement 

action, at a later time, 

with respect to any of the 

matters discussed in this 

report. 

Draft Final Audit Report of 

the Audit Division on 

Latinos for America First 

(January 1, 2019 - December 31, 2020) 

About the Committee (p. 2) 

Latinos for America First is a non-qualified, non-connected 

political action committee headquartered in Pasadena, Texas. 

For more information, see the chart on the Committee 

Organization, p.2. 

Financial Activity (p. 2) 

• Receipts 

o Contributions from Individuals $ 308,783 

o Offsets to Operating Expenditures 22 

Total Receipts $ 308,805 

• Disbursements 

o Other Federal Operating $ 237,540 

Expenditures 

Contributions to Federal 5,500 

Candidates/Committees and Other 

Political Committees 

Total Disbursements $ 243,040 

o

Findings and Recommendations (p. 3) 

• Misstatement of Financial Activity (Finding 1) 

• Increased Activity (Finding 2) 

• Disclosure of Occupation and/or Name of Employer 

DRAFT

(Finding 3) 

1 

 52 U.S.C. §30111(b). 
Draft Final Audit Report of the 

Audit Division on 

Latinos for America First 

DRAFT

(January 1, 2019 - December 31, 2020) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Committee 

Committee Organization 2 

Overview of Financial Activity 2 

Part III. Summaries 

Findings and Recommendations 3 

Part IV. Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 4 

Finding 2. Increased Activity 6 

Finding 3. Disclosure of Occupation and/or Name of Employer 7 

DRAFT
1 

Part I 

Background 

Authority for Audit 

This report is based on an audit of Latinos for America First2 (LFAF), undertaken by the Audit 

Division of the Federal Election Commission (the Commission) in accordance with the Federal 

Election Campaign Act of 1971, as amended (the Act). The Audit Division conducted the audit 

pursuant to 52 U.S.C. §30111(b), which permits the Commission to conduct audits and field 

investigations of any political committee that is required to file a report under 52 U.S.C. §30104. 

Prior to conducting any audit under this subsection, the Commission shall perform an internal 

review of reports filed by selected committees to determine if the reports filed by a particular 

committee meet the threshold requirements for substantial compliance with the Act. 52 U.S.C. 

§30111(b). 

Scope of Audit 

Following Commission-approved procedures, the Audit staff evaluated various risk factors and 

as a result, this audit examined: 

1. the disclosure of individual contributors’ occupation and name of employer; 

2. the consistency between reported figures and bank records; 

3. the completeness of records; and 

4. other committee operations necessary to the review. 

DRAFT 2 

 During the election cycle, LFAF was initially named Latinos for Trump PAC and then changed its name to 

Latinos for the President before changing its name to Latinos for America First on March 5, 2021. 
 

2 

Part II 

Overview of Committee 

Committee Organization 

Important Dates 

• Date of Registration 

DRAFT

August 21, 2018 

• Audit Coverage January 1, 2019 - December 31, 2020 

Headquarters Pasadena, Texas 

Bank Information 

• Bank Depositories Two 

• Bank Accounts Two federal checking accounts 

Treasurer 

• Treasurer When Audit Was Conducted Moni Casarez 

• Treasurer During Period Covered by Audit Moni Casarez 

Management Information 

• Attended FEC Campaign Finance Seminar No 

• Who Handled Accounting and 

Recordkeeping Tasks 

Treasurer and Volunteer Staff 

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand @ January 1, 2019 $ 622 

Receipts 

o Contributions from Individuals 308,783 

o Offsets to Operating Expenditures 22 

Total Receipts $ 308,805 

Disbursements 

o Other Federal Operating Expenditures 237,540 

o Contributions to Federal 

Candidates/Committees and Other Political 

Committees 

5,500 

Total Disbursements $ 243,040 

Cash on hand @ December 31, 2020 $ 66,387 
3 

Part III 

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

During audit fieldwork, a comparison of LFAF's most recent reported financial activity, 

filed prior to audit notification, with its bank records revealed a misstatement of receipts, 

disbursements, and ending cash on hand for calendar year 2020. Specifically, LFAF 

understated receipts by $75,776, disbursements by $52,650, and ending cash on hand by 

$23,037. In response to the exit conference, LFAF filed amended disclosure reports 

materially correcting the public record for receipts and disbursements. The ending cash 

on hand in calendar year 2020 remained misstated. In response to the Interim Audit 

Report recommendation, LFAF corrected the public record by amending its cash on hand 

balance on its most recently filed report (2022 30 Day Post-General Report). 

Additionally, LFAF stated that it has “...implemented procedures and reorganized to help 

[it] remain compliant moving forward.” (For more detail, see p. 4.) 

Finding 2. Increased Activity 

A comparison of LFAF’s bank records with its originally filed reports revealed that 

receipts were understated by $152,815 and disbursements were understated by $183,369 

for calendar years 2019 and 2020. In response to the Interim Audit Report 

recommendation, LFAF stated that it has “...implemented procedures and reorganized to 

help [it] remain compliant moving forward.” (For more detail, see p. 6.) 

Finding 3. Disclosure of Occupation and/or Name of 

Employer 

During audit fieldwork, a review of all contributions from individuals, requiring 

itemization, indicated that 130 contributions, totaling $39,590, lacked or inadequately 

disclosed the required occupation and/or name of employer information. LFAF did not 

sufficiently demonstrate “best efforts” to obtain, maintain and submit the required 

information. In response to audit fieldwork, LFAF provided some documentation of 

“best efforts,” however, the efforts were made untimely. In response to the exit 

conference, LFAF filed amended disclosure reports that materially corrected the public 

record. In response to the Interim Audit Report recommendation, LFAF stated that it has 

“...implemented procedures and reorganized to help [it] remain complaint moving 

forward.” (For more detail, see p. 7.) 

DRAFT
4 

Part IV 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

Summary 

During audit fieldwork, a comparison of LFAF's most recent reported financial activity, 

filed prior to audit notification, with its bank records revealed a misstatement of receipts, 

disbursements, and ending cash on hand for calendar year 2020. Specifically, LFAF 

understated receipts by $75,776, disbursements by $52,650, and ending cash on hand by 

$23,037. In response to the exit conference, LFAF filed amended disclosure reports 

materially correcting the public record for receipts and disbursements. The ending cash 

on hand in calendar year 2020 remained misstated. In response to the Interim Audit 

Report recommendation, LFAF corrected the public record by amending its cash on hand 

balance on its most recently filed report (2022 30 Day Post-General Report). 

Additionally, LFAF stated that it has “...implemented procedures and reorganized to help 

[it] remain compliant moving forward.” 

Legal Standard 

Contents of (Federal) Reports. Each report must disclose: 

• The amount of cash on hand at the beginning and end of the reporting period; 

• The total amount of receipts for the reporting period and for the calendar year; 

• The total amount of disbursements for the reporting period and for the calendar 

year; and 

• Certain transactions that require itemization on Schedule A (Itemized Receipts) or 

Schedule B (Itemized Disbursements). 52 U.S.C. §30104(b)(1), (2), (3), (4), and 

(5). 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff reconciled LFAF’s most recent reported financial 

activity, filed prior to audit notification, with its bank records for calendar years 2019 and 

2020. The reconciliation determined that LFAF misstated receipts, disbursements, and 

ending cash on hand for 2020. The following chart details the discrepancies between 

LFAF’s disclosure reports and bank activity. The succeeding paragraphs explain why the 

discrepancies occurred. 

DRAFT
 

 

The 2020 understatement of disbursements resulted from the following: 

• Disbursements not reported $54,282 

• Disbursements reported that did not clear bank (2,667) 

• Contribution to political committee not reported 1,000 

• PayPal fees not reported 35 

Net Understatement of Disbursements $52,650 

 

 

 

5 

2020 Committee Activity 

Reported Bank Records Discrepancy 

Beginning Cash on hand @ 

January 1, 2020 

($5,656) ($5,746) $90 

Understated 

Receipts $216,598 $292,374 $75,776 

Understated 

Disbursements $167,591 $220,240 $52,650 

Understated 

Ending Cash on hand @ 

December 31, 2020 

$43,351 $66,387 $23,037 

Understated 

DRAFT

The 2020 understatement of receipts resulted from the following: 

• Contributions from individuals not reported $76,172 

• Contributions from individuals reported, not supported by bank deposits (469) 

• Contributions reported net of PayPal processing fees 34 

• Unexplained differences 39 

Net Understatement of Receipts $75,776 

LFAF provided no specific explanation for why the $76,172 in contributions from 

individuals were not reported. 

The disbursements not reported, totaling $54,282, consisted of disbursements for bank 

charges, postage, travel expenses, bookkeeping, printing, mailing list rental, direct mail, 

and a contribution refund. 

The $23,037 understatement of the ending cash on hand was a result of the reporting 

discrepancies described above. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter with the LFAF representatives during the exit 

conference and provided schedules detailing the misstatements. In response to the exit 

conference, LFAF stated, “[t]he errors were obviously not intentional, but ... due to lack 

of experience from our volunteer treasurer.” Additionally, LFAF filed amended 

disclosure reports which materially corrected its misstated receipts and disbursements, 

however, its ending cash on hand remained misstated. 

The Interim Audit Report recommended that LFAF amend its most recently filed 

disclosure report to correct the cash on hand balance with an explanation that the change 
6 

resulted from a prior period adjustment. It was further recommended that LFAF 

reconcile the ending cash on hand balance of its most recent report to identify any 

subsequent discrepancies that may have affected the adjustment recommended by the 

Audit staff. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, LFAF corrected the public 

record by amending its cash on hand balance on its most recently filed report (2022 30 

Day Post-General Report). In addition, LFAF stated that it has “...implemented 

procedures and reorganized to help [it] remain compliant moving forward.” 

Finding 2. Increased Activity 

Summary 

A comparison of LFAF’s bank records with its originally filed reports revealed that 

receipts were understated by $152,815 and disbursements were understated by $183,369 

for calendar years 2019 and 2020. In response to the Interim Audit Report 

recommendation, LFAF stated that it has “...implemented procedures and reorganized to 

help [it] remain compliant moving forward.” 

Legal Standard 

A. Reporting Requirements. All political committees other than authorized 

committees of a candidate shall file either: 

• Quarterly reports. 52 U.S.C. §30104(a)(4)(A); or 

• Monthly reports in all calendar years shall be filed no later than the 20th day after 

the last day of the month and shall be complete as of the last day of the month, 

except that, in lieu of filing the reports otherwise due in November and December 

of any year in which a regularly scheduled general election is held, a pre-general 

election report shall be filed in accordance with 52 U.S.C. §30104(2)(A)(i), a 

post-general election report shall be filed in accordance with 52 U.S.C. 

§30104(2)(A)(ii), and a year-end report shall be filed no later than January 31 of 

the following calendar year. 52 U.S.C. §30104(a)(4)(B). 

B. Contents of Reports. Each report must disclose: 

• The amount of cash on hand at the beginning and end of the reporting period; 

• The total amount of receipts for the reporting period and for the calendar year; 

• The total amount of disbursements for the reporting period and for the calendar 

year; and 

• Certain transactions that require itemization on Schedule A (Itemized Receipts) or 

Schedule B (Itemized Disbursements). 52 U.S.C. §30104 (b)(1),(2),(3),(4) and 

(5). 

DRAFT
 

 

 

7 

Facts and Analysis 

A. Facts 

During audit fieldwork, in addition to examining LFAF’s most recent reports, filed prior 

to audit notification, the Audit staff compared LFAF’s originally filed disclosure reports 

with its bank records. The purpose of this additional reconciliation was to identify the 

degree to which LFAF had misstated its original filings. 

The Audit staff calculated that LFAF understated its receipts and disbursements by 

$152,815 and $183,369, respectively, on the original reports filed over the two-year 

period ending December 31, 2020. LFAF amended its disclosure reports, prior to audit 

notification, disclosing some of the receipts and disbursements not included in its original 

reports. The remaining $75,776 and $52,650 understatement of receipts and 

disbursements, respectively, for 2020 are included above in Finding 1, Misstatement of 

Financial Activity. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter with LFAF representatives during the exit 

conference and provided the relevant schedule. In response to the exit conference, a 

LFAF representative stated, “[t]he errors were obviously not intentional, but ... due to 

lack of experience from our volunteer treasurer.” 

The Interim Audit Report recommended that LFAF provide any additional comments it 

deemed relevant to this matter. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, LFAF stated that it has 

“...implemented procedures and reorganized to help [it] remain compliant moving 

forward.” 

Finding 3. Disclosure of Occupation and/or Name of 

Employer 

Summary 

During audit fieldwork, a review of all contributions from individuals, requiring 

itemization, indicated that 130 contributions, totaling $39,590, lacked or inadequately 

disclosed the required occupation and/or name of employer information. LFAF did not 

sufficiently demonstrate “best efforts” to obtain, maintain and submit the required 

information. In response to audit fieldwork, LFAF provided some documentation of 

“best efforts,” however, the efforts were made untimely. In response to the exit 

conference, LFAF filed amended disclosure reports that materially corrected the public 

record. In response to the Interim Audit Report recommendation, LFAF stated that it has 

“...implemented procedures and reorganized to help [it] remain compliant moving 

forward.” 

DRAFT
8 

Legal Standard 

A. Itemization Required for Contributions from Individuals. A political committee 

other than an authorized committee must itemize any contribution from an individual 

if it exceeds $200 per calendar year, either by itself or when combined with other 

contributions from the same contributor. 52 U.S.C. §30104(b)(3)(A). 

B. Required Information for Contributions from Individuals. For each itemized 

contribution from an individual, the committee must provide the following 

information: 

• The contributor’s full name and address (including zip code); 

• The contributor’s occupation and the name of his or her employer; 

• The date of receipt (the date the committee received the contribution); 

• The amount of the contribution; and 

• The calendar year-to-date total of all contributions from the same individual. 

52 U.S.C. §30104(b)(3)(A) and 11 CFR §§100.12 and 104.3(a)(4). 

C. Best Efforts Ensures Compliance. When the treasurer of a political committee 

shows that the committee used best efforts (see below) to obtain, maintain, and 

submit the information required by the Act, the committee’s reports and records will 

be considered in compliance with the Act. 52 U.S.C. §30102(i) and 11 CFR 

§104.7(a). 

D. Definition of Best Efforts. The treasurer and the committee will be considered to 

have used “best efforts” if the committee satisfied all of the following criteria: 

• All written solicitations for contributions included: 

 A clear request for the contributor's full name, mailing address, 

occupation, and name of employer; and 

 The statement that such reporting is required by Federal law. 

• Within 30 days after the receipt of the contribution, the treasurer made at least one 

effort to obtain the missing information, in either a written request or a 

documented oral request. 

• The treasurer reported any contributor information that, although not initially 

provided by the contributor, was obtained in a follow-up communication or was 

contained in the committee’s records or in prior reports that the committee filed 

during the same two-year election cycle. 11 CFR §104.7(b). 

E. Reporting Missing Information. If any of the contributor information is received 

after the contribution has been disclosed on a regularly scheduled report, the political 

committee shall either: 

• File with its next regularly scheduled report, an amended memo Schedule A 

listing all contributions for which contributor identifications have been received 

and an indication of the previous report(s) to which the memo Schedule A relates; 

or 

• File amendments which include the contributor identifications together with the 

dates and amounts of the contributions. 11 CFR §104.7(b)(4)(i). 

DRAFT
9 

Facts and Analysis 

A. Facts 

LFAF did not disclose or inadequately disclosed the required occupation and/or name of 

employer information for contributions requiring itemization on its FEC reports, as of the 

date of the audit notification letter. 

Contributions Requiring Itemization – 

Missing or Inadequate Occupation and/or Name of Employer 

Num

DRAFT

ber of Contributions 130 

Dollar Value of Contributions $39,590 

Percent of Contributions 73% 

1. Contributor Information Obtained but Not Disclosed: 

During audit fieldwork, LFAF provided the Audit staff with the required occupation 

and/or name of employer information for some of its contributors; however, LFAF did 

not disclose the information on its reports as required for the following: 

Contributor Information Obtained but Not Disclosed 

Contributor Information Obtained from Untimely “Best Efforts” Letters 

Dollar Value of Contributions 

7 

$4,235 

Contributor Information in LFAF’s records 

(no record of when the information was obtained) 

Dollar Value of Contributions 

6 

$775 

Total Number of Contributions 

Dollar Value of Contributions 

13 

$5,010 

2. Best Efforts Not Demonstrated: 

LFAF did not provide the Audit staff with records to demonstrate timely “best efforts” 

for the following: 

Best Efforts Not Demonstrated 

Best Efforts Letters Sent to Contributors Untimely

(contributor information NOT obtained) 

Dollar Value of Contributions 

52 

$16,700 

Best Efforts Documentation Not Provided by LFAF 

Dollar Value of Contributions 

65 

$17,880 

Total Number of Contributions 

Dollar Value of Contributions 

117 

$34,580 
10 

3. Additional Information: 

LFAF disclosed the following unacceptable entries on Schedule A (Itemized Receipts): 

• “NA” or no occupation and/or name of employer information for 127 

contributions totaling $38,990, and 

• Inadequate occupation and/or name of employer for three contributions totaling 

$600. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter with LFAF representatives during audit fieldwork 

and at the exit conference and provided the schedule detailing these disclosure errors. In 

response to the exit conference, LFAF filed amended disclosure reports that materially 

corrected the public record. LFAF’s amended disclosure reports included the occupation 

and name of employer information for all the contributions included in the Contributor 

Information Obtained but Not Disclosed chart above. In addition, of the 117 

contributions included in the Best Efforts Not Demonstrated chart above, LFAF included 

the occupation and name of employer information for 93 contributions, totaling $27,560, 

in its amended reports. 

The Interim Audit Report recommended that LFAF provide any additional comments it 

deemed relevant to this matter. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, LFAF stated that it has 

“...implemented procedures and reorganized to help [it] remain compliant moving 

forward.” 

DRAFT