June 9, 2023 

BY EMAIL Phone: (949) 441-5352 

Federal Election Commission 

Audit Division 

Rebecca Yarbrough 

1050 First Street, NE 

Washington, DC 20002 

Email: audit@fec.gov; 

Re: Response to the Final Audit Report on Citizens for Waters 

Dear Ms. Yarbrough: 

On behalf of my client, Citizens for Waters (the “Committee”), we appreciate the opportunity to 

respond to the Final Draft Audit Report (the “DFAR”) of the Audit Division and respectfully decline a 

hearing. 

Misstatements of Financial Activity 

The Committee prepared and filed amendments which reflect the misstatements of financial activity on 

the DFAR. 

Receipt of Contributions in Excess of the Limit 

The Committee verified that $8,400 of the contribution refunds issued were negotiated and has issued a 

payment in the amount of $10,600 to the US Treasury. Copies of the negotiated checks and the 

payment to the US Treasury are attached. 

Cash Disbursements 

The Committee made its best effort to comply with the Federal Election Campaign Act during the 

COVID-19 pandemic while also navigating challenges presented to the canvass workers in cashing 

checks. Due to the unique circumstances. cash disbursements were made in situations where the 

Committee would have otherwise issued check payments. 

The Office of General Counsel (“OGC”) asserts that the Committee failed to keep the required records to 

document cash payments.1

 However, the Committee provided records for cash disbursements totaling 

$6,390.2

 Although the Committee could not provide documentation for all cash payments, records for a 

substantial amount of the cash payments were provided which is materially distinguishable from the 

1 See OGC’s Legal Analysis of the DFAR for at 3. 2 See Report at 12. 

220 S. Pine St, Suite 109 2102 Business Center Dr., Suite 130 

Sisters, OR 97759 Irvine, CA 92612 
 

 

 

 

 

 

 

 

Federal Elections Commission 

June 9, 2023 

Page 2 

facts presented in the MUR referenced by the OGC. The Committee made only four (4) cash payments 

and provided records for a substantial amount of cash disbursements where the committee references 

in the MUR engaged a pattern of making cash disbursements and intentionally falsifying and concealing 

its activity.3 

In addition to providing records for a substantial amount of the cash payments, the campaign manager 

provided a statement that the cash received was used to pay canvassers and other costs in furtherance 

of the Committee’s canvassing program for the March 3, 2020 Primary and November 3, 2020 General 

elections. Attached is a copy of the letter. 

Payments from Unregistered Political Organizations 

The Committee obtained letters from unregistered political committees verifying payments totaling 

$261,866.25 were made with federally permissible funds. The Committee also provided documentation 

demonstrating that payments totaling $57,700.00 were from federally permissible funds. The remaining 

payments totaling $121,913.75 could not be verified as federally permissible funds and will be disgorged 

to the US Treasury.4 

While $121,913.75 of the payments received could not be verified as federally permissible funds, the 

Committee can demonstrate through reasonable accounting methods that federally permissible funds 

were used to pay for costs associated with the slate mailer. OGC states “the focus here is on whether 

CFW received and spent non-federal funds ‘in connection with an election for federal office’, including 

federal election activity including PASO communications.”5

 Regardless of the $121,913.75 in unverified 

federally permissible funds, the Committee maintained a sufficient cash balance of contributions 

received to pay for the slate mailer costs. Therefore, federally permissible funds were used to pay for all 

“PASO” communications. 

Further, we disagree with OGC’s assertion that the slate mailer payments received by unregistered 

political committees were advances rather than reimbursements.6 While the Committee did not 

immediately make payments to vendors, the Committee incurred costs associated with the design, 

production and mailing of the slate mailers and are reflected as debts on campaign reports. 

3

 Factual and Legal Analysis, MUR 7126 (Michigan Democratic State Central Committee). 4

 The Committee previously refunded $20,000 of the $568,000 payments received which is reflected in the slate 

mailer disbursements. 

5 See OGC’s Legal Analysis of the DFAR at 5. 6 Id.at 4. 
 

Federal Elections Commission 

June 9, 2023 

Page 3 

The Committee appreciates the opportunity to respond to the DFAR. Please let me know if you have 

any questions or need additional information. 

Sincerely, 

Counsel for Citizens for Waters 

cc: David Gould

 Congresswoman Maxine Waters 

Enclosures 

Leilani Rudow Beaver