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. 

1 52 U.S.C. §30111(b). 

Final Audit Report of the 

Commission on the Oklahoma 

Leadership Council 

(January 1, 2019 - December 31, 2020) 

About the Committee (p. 3) 

Oklahoma Leadership Council is a state party committee 

headquartered in Oklahoma City, Oklahoma. For more 

information, see the Committee Organization chart, p. 3. 

Financial Activity (p. 4) 

• Receipts 

o Contributions from Individuals $ 333,978 

o Contributions from Political 

Committees 680,872 

o Transfers from Affiliates 990,361 

o Other Federal Receipts 3,724 

o Transfers from Levin/NonFederal Account 185,222 

Total Receipts $ 2,194,157 

• Disbursements 

o Operating Expenditures $ 516,964 

o Transfers to Affiliates 585,813 

o Independent Expenditures 397,335 

o Other Federal Disbursements 202,892 

o Federal Election Activity 413,748 

Total Disbursements $ 2,116,752 

• Levin Receipts $ 0 

• Levin Disbursements $394 

Commission Findings (p. 5) 

• Misstatement of Financial Activity (Finding 1) 

• Increased Activity (Finding 2) 

• Contributions from Unregistered Political Organizations 

(Finding 3) 

• Reporting of Debts and Obligations (Finding 4) 

• Recordkeeping for Communications (Finding 5) 

• Recordkeeping for Employees (Finding 6) 

• Reporting of Apparent Independent Expenditures (Finding 7) 
 

 

Final Audit Report of the 

Commission on the 

Oklahoma Leadership Council 

(January 1, 2019 - December 31, 2020) 
 

Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Commission Guidance 1 

Audit Hearing 2 

Part II. Overview of Committee 

Committee Organization 3 

Overview of Financial Activity 4 

Part III. Summaries 

Commission Findings 5 

Part IV. Commission Findings 

Finding 1. Misstatement of Financial Activity 8 

Finding 2. Increased Activity 10 

Finding 3. Contributions from Unregistered Political Organizations 12 

Finding 4. Reporting of Debts and Obligations 15 

Finding 5. Recordkeeping for Communications 17 

Finding 6. Recordkeeping for Employees 20 

Finding 7. Reporting of Apparent Independent Expenditures 22 
 

1 

Part I 

Background 

Authority for Audit 

This report is based on an audit of the Oklahoma Leadership Council (OLC), 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 receipt of excessive contributions and loans; 

2. the receipt of contributions from prohibited sources; 

3. the disclosure of contributions received; 

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

5. the disclosure of disbursements, debts and obligations; 

6. the disclosure of expenses allocated between federal and non-federal accounts; 

7. the consistency between reported figures and bank records; 

8. the completeness of records; 

9. the disclosure of independent expenditures; and 

10. other committee operations necessary to the review. 

Commission Guidance 

Request for Early Commission Consideration of a Legal Question 

Pursuant to the Commission’s “Policy Statement Establishing a Program for Requesting 

Consideration of Legal Questions by the Commission,” several state party committees 

unaffiliated with OLC requested early consideration of a legal question raised during 

audits covering the 2010 election cycle. Specifically, the Commission addressed whether 

monthly time logs under 11 CFR §106.7(d)(1) were required for employees paid with 100 

percent federal funds. 

The Commission concluded, by a vote of 5-1, that 11 CFR §106.7(d)(1) does require 

committees to keep a monthly log for employees paid exclusively with federal funds. 

Exercising its prosecutorial discretion, however, the Commission decided it will not 

pursue recordkeeping violations for the failure to keep time logs or to provide affidavits 

to account for employee salaries paid with 100 percent federal funds and reported as 

such. The Audit staff informed OLC representatives of the payroll requirement and the 

Commission’s decision not to pursue recordkeeping violations for failure to keep payroll 

logs for salaries paid and correctly reported as 100 percent federal. This audit report does 
 

2 

not include any findings or recommendations with respect to OLC employees paid with 

100 percent federal funds and reported as such. 

Audit Hearing 

OLC declined the opportunity for a hearing before the Commission on the matters 

presented in this report. 
 

 

 

3 

Part II 

Overview of Committee 

Committee Organization 

Important Dates 

• Date of Registration May 13, 1983 

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

Headquarters Oklahoma City, Oklahoma 

Bank Information 

• Bank Depositories Two 

• Bank Accounts Five Federal, Two Non-Federal, One 

Levin 

Treasurer 

• Treasurer When Audit Was Conducted John Elliott (8/30/2022 – Present) 

AJ Ferate (6/16/2022 – 8/29/2022) 

Dwaine Shroyer (11/10/2021 – 

6/15/2022) 

Joe Hart (6/3/2021 – 11/9/2021) 

• Treasurer During Period Covered by Audit Rodd Moesel (9/27/2017 – 5/19/2019 

Michael G. McCutchin (5/20/2019 – 

5/12/2021) 

Management Information 

• Attended FEC Campaign Finance Seminar No 

• Who Handled Accounting and 

Recordkeeping Tasks 

Treasurer 
4 

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand @ January 1, 2019 $ 5,390 

Receipts 

o Contributions from Individuals 333,978 

o Contributions from Political Committees 680,872 

o Transfers from Affiliates 990,361 

o Other Federal Receipts 3,724 

o Transfers from Levin/Non-Federal Account 185,222 

Total Receipts $ 2,194,157 

Disbursements 

o Operating Expenditures 516,964 

o Transfers to Affiliates 585,813 

o Independent Expenditures 397,335 

o Other Federal Disbursements 202,892 

o Federal Election Activity 413,748 

Total Disbursements $ 2,116,752 

Cash on hand @ December 31, 2020 $ 82,795 

Levin Cash on hand @ January 1, 2019 $ 394 

Total Levin Receipts 0 

Total Levin Disbursements 394 

Levin Cash on hand @ March 31, 2019 $ 0 
5 

Part III 

Summaries 

Commission Findings 

Finding 1. Misstatement of Financial Activity 

During audit fieldwork, a comparison of OLC’s most recent reported financial activity 

with its bank records revealed a misstatement of receipts and disbursements for calendar 

year 2020. Specifically, OLC understated receipts by $216,154 and disbursements by 

$226,564. OLC did not provide a response to the Interim Audit Report recommendation. 

In response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not file amended reports to correct the public record. 

The Commission approved a finding that, in 2020, OLC understated its reported receipts 

and disbursements by $216,154 and $226,564, respectively. 

(For more detail, see p. 8.) 

Finding 2. Increased Activity 

A comparison of OLC’s bank activity with its original reports filed with the Commission 

revealed that receipts were understated by $829,858 and disbursements were understated 

by $1,077,630 for calendar years 2019 and 2020. OLC did not provide a response to the 

Interim Audit Report recommendation. In response to the Draft Final Audit Report, OLC 

stated that it did not dispute any of the facts presented and has taken all possible 

corrective actions. 

The Commission approved a finding that OLC understated its receipts and disbursements 

by $829,858 and $1,077,630, respectively, on the original reports filed, prior to audit 

notification, over the two-year reporting period ending December 31, 2020. 

(For more detail, see p. 10.) 

Finding 3. Contributions from Unregistered Political 

Organizations 

During audit fieldwork, the Audit staff identified 15 contributions from unregistered 

political organizations, totaling $16,981, that may have been made with impermissible 

funds. OLC did not provide a response to the Interim Audit Report recommendation. In 

response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not provide additional documentation. 

The Commission approved a finding that OLC did not resolve contributions from 

unregistered political organizations, totaling $16,981, by providing documentation 

demonstrating that these contributions were transferred to the non-federal account, 
 

6 

refunded, or were received from permissible sources. 

(For more detail, see p. 12.) 

Finding 4. Reporting of Debts and Obligations 

During audit fieldwork, the Audit staff noted that OLC failed to disclose debts and 

obligations to eight vendors totaling $230,595. OLC did not provide a response to the 

Interim Audit Report recommendation. In response to the Draft Final Audit Report, OLC 

stated that it did not dispute any of the facts presented and has taken all possible 

corrective actions. The Audit staff notes OLC did not provide additional documentation 

and did not file amended reports to correct the public record. 

The Commission approved a finding that OLC failed to disclose debts and obligations to 

vendors, totaling $230,595. 

(For more detail, see p. 15.) 

Finding 5. Recordkeeping for Communications 

During audit fieldwork, the Audit staff reviewed disbursements for communications to 

verify the accuracy of the information and proper classification of transactions disclosed 

on OLC’s disclosure reports. Of these disbursements, OLC reported 35 disbursements, 

totaling $378,222, on Schedules B (Itemized Disbursements), Line 21(b) (Other Federal 

Operating Expenditures) and Line 30(b) (Federal Election Activity Paid Entirely With 

Federal Funds) with purposes including, “Materials/Mail/Design-Non Candidate,” 

“Printing & Design Services: Banner,” “Voter Data Consulting,” “Trump signs/signs,” 

“GOTV Postcards,” “Online Advertising,” “Trump Products,” “Billboard,” “Pins for 

convention,” “GOTV Text Messages” and “Direct Mail Printing & Postage.” OLC did 

not provide a response to the Interim Audit Report recommendation. In response to the 

Draft Final Audit Report, OLC stated that it did not dispute any of the facts presented and 

has taken all possible corrective actions. The Audit staff notes OLC did not provide 

additional documentation. 

The Commission approved a finding that OLC failed to maintain records in sufficient 

detail, to verify the proper reporting for communication disbursements, totaling 

$378,222. 

(For more detail, see p. 17.) 

Finding 6. Recordkeeping for Employees 

During audit fieldwork, the Audit staff determined that OLC did not maintain any 

monthly payroll logs, as required, to document the percentage of time each employee 

spent in connection with a federal election. For 2019 and 2020, the Audit staff identified 

10 payments to OLC employees, totaling $25,031, for which OLC did not maintain 

monthly payroll logs. This consisted of payroll which was allocated with federal and 

non-federal funds and payroll paid exclusively with non-federal funds. OLC did not 

provide a response to the Interim Audit Report recommendation. In response to the Draft 

Final Audit Report, OLC stated that it did not dispute any of the facts presented and has 

taken all possible corrective actions. The Audit staff notes OLC did not provide 

additional documentation. 
 

 

 

 

 

7 

 

 

 

The Commission approved a finding that OLC failed to maintain monthly payroll logs or

equivalent records, totaling $25,031, to document the percentage of time employees spent 

in connection with a federal election for years 2019 and 2020. 

(For more detail, see p. 20.) 

Finding 7. Reporting of Apparent Independent 

Expenditures 

During audit fieldwork, the Audit staff reviewed expenditures, totaling $345,389, that 

OLC disclosed on Schedule B, Line 30(b) (Federal Election Activity Paid Entirely with 

Federal Funds). These expenditures appear to be independent expenditures containing 

express advocacy and should have been disclosed on Schedule E, Line 24 (Itemized 

Independent Expenditures). Of these expenditures, OLC did not properly disclose 

independent expenditures, totaling $62,915, that were publicly disseminated prior to 

payment and therefore required reporting as memo entries on Schedule E and reporting as 

debt on Schedule D (Debts and Obligations). 

Additionally, OLC did not provide documentation to support the dissemination dates, in 

order to verify whether 24/48-hour reports were required to be filed for the apparent 

independent expenditures totaling $326,460. 

OLC did not provide a response to the Interim Audit Report recommendation. In 

response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not provide additional documentation and did not file amended reports to correct the 

public record. 

The Commission approved a finding that OLC failed to properly disclose apparent 

independent expenditures, totaling $345,389, on Schedule E (Independent Expenditures), 

of which apparent independent expenditures, totaling $62,915, should have been reported 

as memo entries and reported as corresponding debt on Schedule D (Debts and 

Obligations), based on the date in which the mail pieces were disseminated. In addition, 

the Commission approved a finding that OLC failed to file 24/48-hour reports for 

apparent independent expenditures, totaling $326,460. 

(For more detail, see p. 22.) 
8 

Part IV 

Commission Findings 

Finding 1. Misstatement of Financial Activity 

Summary 

During audit fieldwork, a comparison of OLC’s most recent reported financial activity 

with its bank records revealed a misstatement of receipts and disbursements for calendar 

year 2020. Specifically, OLC understated receipts by $216,154 and disbursements by 

$226,564. OLC did not provide a response to the Interim Audit Report recommendation. 

In response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not file amended reports to correct the public record. 

The Commission approved a finding that, in 2020, OLC understated its reported receipts 

and disbursements by $216,154 and $226,564, respectively. 

Legal Standard 

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).

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff reconciled OLC’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 OLC misstated receipts and disbursements for

2020. The following chart details the discrepancies between OLC’s disclosure reports

and its bank activity. The succeeding paragraphs explain why the discrepancies occurred.
 

9 

2020 Committee Activity 

Reported Bank Records Discrepancy 

Beginning Cash on hand @ 

January 1, 2020 

$15,546 $15,098 ($448) 

Overstated 

Receipts $1,816,120 $2,032,274 ($216,154) 

Understated 

Disbursements $1,738,013 $1,964,577 ($226,564) 

Understated 

Ending Cash on hand @ 

December 31, 2020 

$93,653 $82,795 ($10,858) 

Overstated 

The beginning cash on hand was overstated by $448 and the discrepancy resulted from 

prior period discrepancies. 

The understatement of receipts resulted from the following: 

• Contributions from individuals not reported $22,383 

• Transfers from Non-federal account not reported 161,081 

• Contributions from Political Committees not reported 28,344 

• Other Receipts not reported 120 

• Net Unitemized Contributions under reported 1,985 

• Contribution under reported 10,000 

• Contribution reported but did not clear bank (750) 

• Duplicate Contributions reported (6,850) 

• Unexplained differences (159) 

Net Understatement of Receipts $216,154 

The understatement of disbursements resulted from the following: 

• Disbursements not reported or reported incorrectly $225,008 

• Disbursements reported, but did not clear bank (2,151) 

• Interaccount Transfer reported as disbursement (100) 

• Net Merchant Vendor Fees not reported correctly 3,776 

• Disbursements reported with incorrect amounts 31 

Net Understatement of Disbursements $226,564 

The $10,858 overstatement 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 OLC representatives during the exit conference

and provided schedules detailing the misstatements of financial activity. The Audit staff

explained each reporting error to the OLC representatives and answered a question

regarding the dates of the reporting errors. In its response to the exit conference, OLC

did not provide any comments on this finding, but generally stated that it would be filing

amended reports in response to the audit.
10 

The Interim Audit Report recommended that OLC amend its disclosure reports 

or file a Form 99 (Miscellaneous Electronic Submission)2 to correct the 

misstatements noted above. In addition, the Interim Audit Report recommended 

that OLC reconcile the cash on hand balance on its most recently filed report and 

correct any subsequent discrepancies. 

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation. Absent

the filing of amended reports or a Form 99 (Miscellaneous Electronic Submission),

OLC’s receipts and disbursements remained misstated.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation, did not file amended reports or a Form 99, and that

OLC’s receipts and disbursements remained misstated.

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” The Audit staff

notes OLC did not file amended reports to correct the public record.

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that, in 2020, OLC understated its reported receipts and disbursements 

by $216,154 and $226,564, respectively. 

The Commission approved the Audit staff’s recommendation. 

Finding 2. Increased Activity 

Summary 

A comparison of OLC’s bank activity with its original reports filed with the Commission 

revealed that receipts were understated by $829,858 and disbursements were understated 

by $1,077,630 for calendar years 2019 and 2020. OLC did not provide a response to the 

Interim Audit Report recommendation. In response to the Draft Final Audit Report, OLC 

stated that it did not dispute any of the facts presented and has taken all possible 

corrective actions. 

2 OLC was advised by the Audit staff that if it chose to file a Form 99, instead of amending its disclosure 

reports, the form must contain all pertinent information that is required on each schedule. 
 

 

 

11 

The Commission approved a finding that OLC understated its receipts and disbursements 

by $829,858 and $1,077,630, respectively, on the original reports filed, prior to audit 

notification, over the two-year reporting period ending December 31, 2020. 

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 f or 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, in addition to examining OLC’s most recent disclosure reports

filed prior to audit notification, the Audit staff compared OLC’s originally filed

disclosure reports with its bank records. The purpose of this additional reconciliation was

to identify the degree to which OLC misstated its original filings.

The Audit staff calculated that OLC understated its receipts by $829,858 and 

disbursements by $1,077,630 on the original reports filed over the two-year period ending 

December 31, 2020. Part of the understatements were due to OLC not reporting funds 

received from a joint fundraising committee totaling $473,569 and the subsequent 

transfers of these funds ($473,569) to the national party. In addition, these figures 

include the understatement of receipts $216,154 and the understatement of disbursements 

$226,564 discussed in Finding 1 (Misstatement of Financial Activity). 
 

12 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with OLC representatives during the exit conference

and provided the relevant schedule. In its response to the exit conference, OLC did not

provide any comments on this finding, but generally stated that it would be filing

amended reports in response to the audit.

The Interim Audit Report recommended that OLC provide any comments it deemed 

relevant with respect to this matter. 

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation.

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” 

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC understated its receipts and disbursements by $829,858 and 

$1,077,630, respectively, on the original reports filed, prior to audit notification, over the 

two-year reporting period ending December 31, 2020. 

The Commission approved the Audit staff’s recommendation. 

Finding 3. Contributions from Unregistered Political 

Organizations 

Summary 

During audit fieldwork, the Audit staff identified 15 contributions from unregistered 

political organizations, totaling $16,981, that may have been made with impermissible 

funds. OLC did not provide a response to the Interim Audit Report recommendation. In 

response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not provide additional documentation. 

The Commission approved a finding that OLC did not resolve contributions from 
 

13 

unregistered political organizations, totaling $16,981, by providing documentation 

demonstrating that these contributions were transferred to the non-federal account, 

refunded, or were received from permissible sources. 

Legal Standard 

A. Party Committee Limits. A party committee may not receive more than a total of

$10,000 per year from any one individual. 52 U.S.C §30116(a)(1)(D), 11 CFR

§110.1(c)(5), and 11 CFR §110.9.

B. Organizations Not Registered With the Commission. Any organization that makes

contributions and expenditures, but that does not qualify as a political committee

under 11 CFR §100.5, must keep records of receipts and disbursements and, upon

request, must make such records available for examination by the Commission. The

organization must demonstrate through a reasonable accounting method that,

whenever such an organization makes a contribution or expenditure, the organization

has received sufficient funds subject to the limitations and prohibitions of the Act to

make such contribution or expenditure. 11 CFR §102.5(b).

C. Questionable Contributions. It is the Treasurer’s responsibility to ensure that all

contributions are lawful. 11 CFR §103.3(b). If a committee receives a contribution

that appears to be prohibited (a questionable contribution), it must follow the

procedures below:

1. Within 10 days after the treasurer receives the questionable contribution, the

committee must either:

• Return the contribution to the contributor without depositing it; or 

• Deposit the contribution (and follow steps below). 11 CFR §103.3(b)(1).

2. If the committee deposits the questionable contribution, it may not spend the

funds and must be prepared to refund them. It must therefore maintain

sufficient funds to make the refunds or establish a separate account in a

campaign depository for possibly illegal contributions. 11 CFR §103.3 (b)(4).

3. The committee must keep a written record explaining why the contribution

may be prohibited and must include this information when reporting the

receipt of the contribution. 11 CFR §103.3(b)(5).

4. Within 30 days of the treasurer’s receipt of the questionable contribution, the

committee must make at least one written or oral request for evidence that the

contribution is legal. Evidence of legality includes, for example, a written

statement from the contributor explaining why the contribution is legal or 

an oral explanation that is recorded by the committee in a memorandum.

11 CFR §103.3(b)(1).

5. Within these 30 days, the committee must either:

• Confirm the legality of the contribution; or

• Refund the contribution to the contributor and note the refund on the report

covering the period in which the refund was made. 11 CFR §103.3(b)(1).
 

 

 

 

 

 

14 

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff identified 15 contributions, totaling $16,981, from

unregistered political organizations, which OLC reported as follows:

• Two contributions, totaling $1,310 on Schedule A, Line 11(a)(i) (Contributions

from Individuals Itemized);

• Four contributions, totaling $230, on Schedule A, Line 11(a)(ii) (Contributions

from Individuals Unitemized);

• Four contributions, totaling $2,292, on Schedule A, Line 11(c) (Contributions

from Other Political Committees;

• One contribution, totaling $1,306, on Schedule A, Line 17 (Other Receipts); and

• Four contributions, totaling $11,843, that were not reported.

The Audit staff considers the receipts noted above to be contributions. OLC did not 

provide any documentation to demonstrate that these contributions, from unregistered 

political organizations, were made with permissible funds. Similarly, OLC did not 

submit any evidence to show that these receipts were not contributions. To date, none of 

these contributions have been refunded to the contributors. 

The contributions from unregistered political organizations were made either from 

Oklahoma local party committees or from Oklahoma local candidate committees, and 

does not appear to be from state political action committees (state PACs). Under 

Oklahoma state law, political party committees are prohibited from accepting 

contributions from corporations, labor unions and foreign nationals. 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with OLC representatives during the exit conference

and provided a schedule of the receipts. The OLC representatives stated that ten days

would not be enough time to respond to this finding. The Audit staff advised OLC of

each additional opportunity in the audit process to respond to the finding. In its response

to the exit conference, OLC did not provide any comments on this finding, but generally

stated that it would be filing amended reports in response to the audit.

The Interim Audit Report recommended that OLC: 

• Provide evidence that the 15 contributions in question totaling $16,981 were made

from permissible funds; or

• Provide evidence to show these items were not contributions; or

• Refund the impermissible funds and provide evidence of such refunds; or

• Transfer the impermissible funds to the non-federal account; or

• If funds were not available to make the necessary refunds or donations, disclose

the contributions requiring refunds on Schedule D (Debts and Obligations) until

funds become available to make such refunds.
15 

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation. Absent

additional documentation, the Audit staff maintained that OLC may have received

impermissible funds from unregistered organizations.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation and that OLC did not resolve contributions from

unregistered political organizations, totaling $16,981.

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” The Audit staff

notes OLC did not provide additional documentation.

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC did not resolve contributions from unregistered political 

organizations, totaling $16,981, by providing documentation demonstrating that these 

contributions were transferred to the non-federal account, refunded, or were received 

from permissible sources. 

The Commission approved the Audit staff’s recommendation. 

Finding 4. Reporting of Debts and Obligations 

Summary 

During audit fieldwork, the Audit staff noted that OLC failed to disclose debts and 

obligations to eight vendors totaling $230,595. OLC did not provide a response to the 

Interim Audit Report recommendation. In response to the Draft Final Audit Report, OLC 

stated that it did not dispute any of the facts presented and has taken all possible 

corrective actions. The Audit staff notes OLC did not provide additional documentation 

and did not file amended reports to correct the public record. 

The Commission approved a finding that OLC failed to disclose debts and obligations to 

vendors, totaling $230,595. 

Legal Standard 

A. Continuous Reporting Required. A political committee must disclose the amount

and nature of outstanding debts and obligations until those debts are extinguished.

52 U.S.C. §30104(b)(8) and 11 CFR §§104.3(d) and 104.11(a).
 

 

 

 

16 

B. Separate Schedules. A political committee must file separate schedules for debts

owed by the committee and debts owed to the committee, together with a statement

explaining the circumstances and conditions under which each debt and obligation

was incurred or extinguished. 11 CFR §104.11(a).

C. Itemizing Debts and Obligations.

• A debt of $500 or less must be reported once it has been outstanding 60 days from

the date incurred (the date of the transaction); the committee reports it on the next

regularly scheduled report.

• A debt exceeding $500 must be disclosed in the report that covers the date on

which the debt was incurred. 11 CFR §104.11(b).

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff reviewed OLC’s disbursement records and

disclosure reports for proper reporting of debts and obligations. This review identified

debts owed to eight vendors totaling $230,5953 that OLC failed to report on Schedule D

during the audit period. Based on a review of the records, these vendors provided media

services, database services and cable and internet services. OLC reported debt totaling

$26,052 on Schedule D during the audit period.

The Audit staff calculated the debts owed to the vendors based on the invoice date and 

the subsequent payment date. Debts were outstanding for periods ranging from four days 

to 149 days. 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with OLC representatives at the exit conference and

provided a schedule detailing transactions requiring disclosure on Schedule D. The OLC

representatives questioned why there were media expenditures on the schedule, stating

that these expenditures are normally paid immediately. The Audit staff explained that the

media expenditures were considered debts if the amounts exceeded $500 and were not

paid by the end of the report period in which they were incurred. In its response to the

exit conference, OLC did not provide any comments on this finding, but generally stated

that it would be filing amended reports in response to the audit.

The Interim Audit Report recommended that OLC provide additional documentation 

demonstrating that the transactions, totaling $230,595, were not obligations which 

required reporting on Schedule D. Absent such documentation, the Interim Audit Report 

recommended that OLC amend its reports or file a Form 99 (Miscellaneous Electronic 

Submission)4 to correctly disclose these debts and obligations. 

3 Each debt in this amount was counted only once, even if it was required to be disclosed over multiple 

periods. 4 See supra footnote 2. 
17 

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation. Absent

the filing of amended reports, a Form 99 (Miscellaneous Electronic Submission), or the

provision of additional documentation, the public record pertaining to the disclosure of

debts and obligations, has not been corrected.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation and that OLC did not disclose debts and obligations,

totaling $230,595.

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” The Audit staff

notes OLC did not provide additional documentation and did not file amended reports to

correct the public record.

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC failed to disclose debts and obligations to vendors, totaling 

$230,595. 

The Commission approved the Audit staff’s recommendation. 

Finding 5. Recordkeeping for Communications 

Summary 

During audit fieldwork, the Audit staff reviewed disbursements for communications to 

verify the accuracy of the information and proper classification of transactions disclosed 

on OLC’s disclosure reports. Of these disbursements, OLC reported 35 disbursements, 

totaling $378,222, on Schedules B (Itemized Disbursements), Line 21(b) (Other Federal 

Operating Expenditures) and Line 30(b) (Federal Election Activity Paid Entirely With 

Federal Funds) with purposes including, “Materials/Mail/Design-Non Candidate,” 

“Printing & Design Services: Banner,” “Voter Data Consulting,” “Trump signs/signs,” 

“GOTV Postcards,” “Online Advertising,” “Trump Products,” “Billboard,” “Pins for 

convention,” “GOTV Text Messages” and “Direct Mail Printing & Postage.” OLC did 

not provide a response to the Interim Audit Report recommendation. In response to the 

Draft Final Audit Report, OLC stated that it did not dispute any of the facts presented and 

has taken all possible corrective actions. The Audit staff notes OLC did not provide 

additional documentation. 
18 

The Commission approved a finding that OLC failed to maintain records in sufficient 

detail, to verify the proper reporting for communication disbursements, totaling 

$378,222. 

Legal Standard 

A. Formal Requirements Regarding Reports and Statements. Each political

committee shall maintain records with respect to the matters required to be reported

which shall provide in sufficient detail the necessary information and data from which

the filed reports may be verified, explained, clarified, and checked for accuracy and

completeness. 11 CFR §104.14(b)(1).

B. Preserving Records and Copies of Reports. The treasurer of a political committee

must preserve all records and copies of reports for 3 years after the report is filed. 

52 U.S.C. §30102(d).

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff reviewed disbursements for communications to

verify the accuracy of the information and proper classification of transactions disclosed

on the reports. Of these disbursements, OLC made 35 disbursements, totaling $378,222,

for which documentation was insufficient to make a determination pertaining to whether

these disbursements were correctly reported on Schedule B, Line 21(b) and Schedule B,

Line 30(b).

The Audit staff’s analysis resulted in the following: 

i. Disbursements – No Invoices or Copies of Communications Provided

($13,602)

Seventeen disbursements totaling, $13,602, were paid to nine vendors. Sixteen of

these disbursements, totaling $13,471, were disclosed on Schedule B, Line 21(b)

with purposes of “Printing & Design Services: Banner,” “Trump Signs,” “Online

Advertising,” “Trump Products,” “Billboard,” “Trump Signs,” and “Pins for

Convention.” One disbursement in the amount of $131 was disclosed on

Schedule B, Line 30(b) with the purpose of “Signs.” No invoices or associated

communications were provided for these disbursements. Without sufficient

detail, the Audit staff is unable to verify OLC’s reporting of these amounts as

other operating expenditures or federal election activity. The Audit staff

requested copies of the invoices and the associated communications for each of

the disbursements. To date, these invoices and communications have not been

provided.
 

19 

ii. Disbursements – Invoices Provided – No Copies of Communications

Provided ($364,620)

Eighteen disbursements totaling, $364,620, were paid to seven vendors. Ten of

these disbursements, totaling $43,376, were disclosed on Schedule B, Line 21(b)

with purposes of “Materials/Mail/Design-Non Candidate” and “Signs.” Eight

disbursements, totaling $321,244, were disclosed on Schedule B, Line 30(b) with

purposes of “Voter Data Consulting,” “GOTV Postcards,” “Campaign Mailers,”

“GOTV Text Messages” and “Direct Mail Printing & Postage.” For these

disbursements, OLC provided invoices but did not provide information about the

related communications. Without sufficient detail, the Audit staff is unable to

verify OLC’s reporting of these amounts as other operating expenditures or

federal election activity. The Audit staff requested copies of the associated

communications. To date, these communications have not been provided. 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with OLC representative during the exit conference

and provided a schedule of the disbursements for which further records were necessary to

verify the accuracy of OLC’s reporting. The OLC representatives stated the previous

chairman did not keep the documentation; therefore, OLC would not be able to provide

the documentation. In its response to the exit conference, OLC did not provide any

comments on this finding, but generally stated that it would be filing amended reports in

response to the audit.

The Interim Audit Report recommended that OLC provide, in sufficient detail, 

documentation that allows for verification of proper reporting for the communication 

disbursements totaling $378,222. The documentation should have included copies of 

invoices, along with identification of the associated communication, and if the 

communication was previously provided, information associating each communication 

with an invoice(s). 

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation. Absent

documentation, the Audit staff maintained the disbursements could not be verified.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation and that OLC did not maintain records to verify the proper

reporting of communication disbursements, totaling $378,222.

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” The Audit staff
 

20 

notes OLC did not provide additional documentation. 

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC failed to maintain records in sufficient detail, to verify the 

proper reporting for communication disbursements, totaling $378,222. 

The Commission approved the Audit staff’s recommendation. 

Finding 6. Recordkeeping for Employees 

Summary 

During audit fieldwork, the Audit staff determined that OLC did not maintain any 

monthly payroll logs, as required, to document the percentage of time each employee 

spent in connection with a federal election. For 2019 and 2020, the Audit staff identified 

10 payments to OLC employees, totaling $25,031, for which OLC did not maintain 

monthly payroll logs. This consisted of payroll which was allocated with federal and 

non-federal funds and payroll paid exclusively with non-federal funds. OLC did not 

provide a response to the Interim Audit Report recommendation. In response to the Draft 

Final Audit Report, OLC stated that it did not dispute any of the facts presented and has 

taken all possible corrective actions. The Audit staff notes OLC did not provide 

additional documentation. 

The Commission approved a finding that OLC failed to maintain monthly payroll logs or 

equivalent records, totaling $25,031, to document the percentage of time employees spent 

in connection with a federal election for years 2019 and 2020. 

Legal Standard 

A. Maintenance of Monthly Logs. Party committees must keep a monthly log of the

percentage of time each employee spends in connection with a federal election. 

Allocations of salaries, wages, and fringe benefits are to be undertaken as follows:

• Employees who spend 25 percent or less of their compensated time in a given

month on federal election activities must be paid either from the federal account

or be allocated as administrative costs;

• Employees who spend more than 25 percent of their compensated time in a given

month on federal election activities must be paid only from a federal account; and

• Employees who spend none of their compensated time in a given month on

federal election activities may be paid entirely with funds that comply with state

law. 11 CFR §106.7(d)(1).

B. Formal Requirements Regarding Reports and Statements. Each political

committee shall maintain records with respect to the matters required to be reported

which shall provide in sufficient detail the necessary information and data from which

the filed reports may be verified, explained, clarified, and checked for accuracy and

completeness. 11 CFR §104.14(b)(1).
 

 

 

 

 

 

 

 

21 

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff reviewed disbursements for payroll. OLC did not

maintain any monthly payroll logs or equivalent records to document the percentage of

time each employee spent in connection with a federal election. These logs are required

to document the proper allocation of federal and non-federal funds used to pay employee

salaries and wages. For 2019 and 2020, OLC did not maintain monthly logs for $25,031

in payroll.5 

 This amount consisted of:

• Payroll, totaling $22,676, for employees reported on Schedule H4 (Disbursements

for Allocated Federal and Non-Federal Activity) and paid with an allocation of

federal and non-federal funds during the same month; and

• Payroll, totaling $2,355, for employees reported on Schedule B, Line 30(b)

(Federal Election Activity Paid Entirely With Federal Funds) and also paid with

100 percent non-federal funds during the same month.6 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with OLC representatives during the exit conference

and provided a schedule of the payroll transactions. In its response to the exit

conference, OLC did not provide any comments on this finding, but generally stated that

it would be filing amended reports in response to the audit.

The Interim Audit Report recommended that OLC provide evidence that monthly logs 

were maintained to document the percentage of time employees spent in connection with 

a federal election. Absent the provision of monthly logs specific to employees paid with 

100% non-federal funds, OLC could have provided evidence that records consistent with 

11 CFR §104.14(b)(1) were maintained to document that certain employees were 

involved in exclusively non-federal activities. Additionally, OLC should have provided 

and implement a plan to maintain monthly logs and other records consistent with 11 CFR 

§104.14(b)(1) in the future.

C. Committee Response to Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation. Absent

documentation, the Audit staff concluded OLC did not maintain monthly payroll logs as

required to document the percentage of time each employee spent in connection with a

federal election.

D. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the Interim

Audit Report recommendation and that OLC did not maintain monthly payroll logs or

equivalent records, totaling $25,031.

5 This total does not include payroll for employees paid with 100 percent federal funds and reported as 

such (see Part I, Background, Commission Guidance, and Request for Early Commission Consideration 

of a Legal Question, Page 1). Payroll amounts are stated net of taxes and fringe benefits. 6 Employees who were paid with federal funds and non-federal funds in the same month. 
 

 

22 

E. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement regarding

all of the findings. OLC stated, “We have reviewed the draft final audit report and as we

have previously stated we do not dispute any of the facts presented. As the health and the

death of the Treasurer responsible for the transactions during the audit period does not

change what resulted in that period we must accept what happened. We have made all

corrective actions that we are able to do and await the final audit result.” The Audit staff

notes OLC did not provide additional documentation.

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC failed to maintain monthly payroll logs or equivalent records, 

totaling $25,031, to document the percentage of time employees spent in connection with 

a federal election for years 2019 and 2020. 

The Commission approved the Audit staff’s recommendation. 

Finding 7. Reporting of Apparent Independent 

Expenditures 

 

Summary 

During audit fieldwork, the Audit staff reviewed expenditures, totaling $345,389, that 

OLC disclosed on Schedule B, Line 30(b) (Federal Election Activity Paid Entirely with 

Federal Funds). These expenditures appear to be independent expenditures containing 

express advocacy and should have been disclosed on Schedule E, Line 24 (Itemized 

Independent Expenditures). Of these expenditures, OLC did not properly disclose 

independent expenditures, totaling $62,915, that were publicly disseminated prior to 

payment and therefore required reporting as memo entries on Schedule E and reporting as 

debt on Schedule D (Debts and Obligations). 

Additionally, OLC did not provide documentation to support the dissemination dates, in 

order to verify whether 24/48-hour reports were required to be filed for the apparent 

independent expenditures totaling $326,460. 

OLC did not provide a response to the Interim Audit Report recommendation. In 

response to the Draft Final Audit Report, OLC stated that it did not dispute any of the 

facts presented and has taken all possible corrective actions. The Audit staff notes OLC 

did not provide additional documentation and did not file amended reports to correct the 

public record. 

The Commission approved a finding that OLC failed to properly disclose apparent 

independent expenditures, totaling $345,389, on Schedule E (Independent Expenditures), 

of which apparent independent expenditures, totaling $62,915, should have been reported 

as memo entries and reported as corresponding debt on Schedule D (Debts and 
 

 

23 

Obligations), based on the date in which the mail pieces were disseminated. In addition, 

the Commission approved a finding that OLC failed to file 24/48-hour reports for 

apparent independent expenditures, totaling $326,460. 

Legal Standard 

A. Definition of Independent Expenditures. An independent expenditure is an

expenditure made for a communication expressly advocating the election or defeat of

a clearly identified candidate that is not made in cooperation, consultation, or concert

with, or at the request or suggestion of, a candidate, a candidate’s authorized

committee, or their agents, or a political party or its agents.

A clearly identified candidate is one whose name, nickname, photograph or drawing

appears, or whose identity is apparent through unambiguous reference, such as “your

Congressman,” or through an unambiguous reference to his or her status as a

candidate, such as “the Democratic presidential nominee” or “Republican candidate

for Senate in this state.”

Expressly advocating means any communication that:

• Uses phrases such as “vote for the President” or “re-elect your Congressman” or

communications of campaign slogan(s) or individual word(s), which in context

can have no other reasonable meaning than to urge election or defeat of one or

more clearly identified candidates; or

• When taken as a whole and with limited references to external events, such as

proximity to the election, could be interpreted by a reasonable person only as

advocating the election or defeat of one or more clearly identified candidates. 

11 CFR §§100.16(a), 100.17 and 100.22.

B. Disclosure Requirements – General Guidelines. An independent expenditure shall

be reported on Schedule E if, when added to other independent expenditures made to

the same payee during the same calendar year, it exceeds $200. Independent

expenditures made (i.e., publicly disseminated) prior to payment should be disclosed

as memo entries on Schedule E and as a debt on Schedule D. Independent

expenditures of $200 or less need not be itemized, though the committee must report

the total of those expenditures on Line 30(b) on Schedule E. 11 CFR

§§104.3(b)(3)(vii), 104.4(a) and 104.11.

C. Last-Minute Independent Expenditure Reports (24-Hour Reports). Any

independent expenditures aggregating $1,000 or more, with respect to any given

election, and made after the 20th day but more than 24 hours before the day of an

election must be reported and the report must be received by the Commission within

24 hours after the expenditure is made. A 24-hour report is required each time

additional independent expenditures aggregate $1,000 or more. The 24-hour report

must be filed on a Schedule E. The date that a communication is publicly

disseminated serves as the date that the Committee must use to determine whether the

total amount of independent expenditures has, in the aggregate, reached or exceeded

the threshold reporting amount of $1,000. 11 CFR §§104.4(f) and 104.5(g)(2).
24 

D. Last-Minute Independent Expenditure Reports (48-Hour Reports). Any

independent expenditure aggregating $10,000 or more for an election in any calendar

year, up to and including the 20th day before an election, must disclose this activity

within 48 hours each time that the expenditures aggregate $10,000 or more. The

reports must be filed with the Commission within 48 hours after the expenditure is

made. The 48-hour report must be filed on a Schedule E. The date that a

communication is publicly disseminated serves as the date that the Committee must

use to determine whether the total amount of independent expenditures has, in the

aggregate, reached or exceeded the threshold reporting amount of $10,000. 11 CFR

§§104.4(f) and 104.5(g)(1).

E. Formal Requirements Regarding Reports and Statements. Each political

committee shall maintain records with respect to the matters required to be reported

which shall provide in sufficient detail the necessary information and data from which

the filed reports may be verified, explained, clarified, and checked for accuracy and

completeness. 11 CFR §104.14(b)(1).

F. Allocation of Expenses between Candidates. Expenditures made on behalf of more

than one clearly identified federal candidate shall be attributed to each such candidate

according to the benefit expected to be derived. In the case of a publication or

broadcast communication, the attribution shall be determined by the proportion of

space or time devoted to all candidates. This method shall be used to allocate

payments involving both clearly identified federal candidates and one or more clearly

identified non-federal candidates. 11 CFR §106.1(a).

Facts and Analysis 

 

 

 

 

 

 

A. Reporting of Apparent Independent Expenditures

1. Facts

During audit fieldwork, the Audit staff reviewed disbursements to ensure proper

reporting. The Audit staff noted that OLC did not disclose any independent

expenditures on Schedule E, however, it made apparent independent expenditures,

totaling $345,389, and disclosed them on Schedule B, Line 30(b) (Federal Election 

Activity Paid Entirely with Federal Funds). These expenditures were for 20 direct 

mail pieces that contained express advocacy. A breakdown analysis for these 

expenditures is as follows:

a. Apparent Independent Expenditures Reported as Federal Election

Activity (FEA) Paid Entirely with Federal Funds (Associated Mailer and

Invoice Provided under 11 CFR §100.22(a))

OLC made disbursements for eighteen mail pieces, totaling $314,380, for

which it provided copies of the mail pieces with associated invoices, and wire

transfer documentation. The mail pieces were disclosed as “Campaign

Mailers” on OLC’s disclosure reports and contained the phrases such as:
 

 

 

 

 

 

 

 

25 

“Vote Stephanie Bice for Congress November 3rd,” “Vote Bice for Congress 

on Nov 3rd,

” “Vote Early for Republican Stephanie Bice,” “Vote No on 

Kendra Horn Nov 3rd”, and “Oppose Kendra Horn November 3rd.” These 

communications contained language expressly advocating the election or 

defeat of a clearly identified candidate, as defined under 11 CFR §100.22(a). 

Further, two of these communications, totaling $47,455, were publicly 

disseminated prior to payment and therefore required reporting as memo 

entries on Schedule E when the communications were disseminated in 

addition to the reporting at the time of payment. This amount should also be 

reported as a corresponding debt on Schedule D (Debts and Obligations). 

b. Apparent Independent Expenditures Reported as Federal Election

Activity (FEA) Paid Entirely with Federal Funds (Associated Mailer and

Invoice Provided under 11 CFR §100.22(b))

OLC made disbursements for two mail pieces, totaling $31,009, for which it

provided copies of the mail pieces with associated invoices and wire transfer

documentation. The mail pieces were disclosed as “Campaign Mailers” on

OLC’s disclosure reports and contained the phrases such as: “We Can’t Have

Kendra Horn in Congress,” and “Kendra Horn Puts Party Over People.”

Based on the definition of express advocacy under 11 CFR §100.22(b), the

Audit staff believes that these mailers could only be interpreted by a

reasonable person as advocating the election or defeat of a clearly identified

candidate. 

Further, one of these communications, totaling $15,460, was publicly

disseminated prior to payment and therefore required reporting as a memo

entry on Schedule E when the communication was disseminated in addition to

the reporting at the time of payment. This amount should also be reported as a

corresponding debt on Schedule D (Debts and Obligations).

2. Interim Audit Report & Audit Division Recommendation

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

conference and provided a schedule detailing these expenditures. In its response

to the exit conference, OLC did not provide any comments on this finding, but

generally stated that it would be filing amended reports in response to the audit.

The Interim Audit Report recommended that OLC provide documentation that

apparent independent expenditures, totaling $345,389, did not require reporting as

independent expenditures. Absent such documentation or evidence, the Interim

Audit Report recommended OLC amend its reports to disclose these

disbursements as independent expenditures on Schedule E (Itemized Independent

Expenditures) and provide documentation to support the date of public

dissemination for each communication to determine whether a 24/48-hour report

was required to be filed. The Interim Audit Report also recommended that OLC

amend its reports to include the reporting of independent expenditures, totaling
 

 

 

26 

$62,915 ($47,455 + $15,460), as memo entries based on the date in which the 

mail pieces were disseminated. This amount should also be reported as 

corresponding debt on Schedule D.7 

 

3. Committee Response to the Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation.

Absent documentation or filing of amended reports, the public record pertaining

to the disclosure of apparent independent expenditures, has not been corrected.

4. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the

Interim Audit Report recommendation. The Draft Final Audit Report further

acknowledged that OLC did not disclose apparent independent expenditures,

totaling $345,389, of which apparent independent expenditures, totaling $62,915,

should have been reported as memo entries and reported as corresponding debt on

Schedule D (Debts and Obligations).

5. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement

regarding all of the findings. OLC stated, “We have reviewed the draft final audit

report and as we have previously stated we do not dispute any of the facts

presented. As the health and the death of the Treasurer responsible for the

transactions during the audit period does not change what resulted in that period

we must accept what happened. We have made all corrective actions that we are

able to do and await the final audit result.” The Audit staff notes OLC did not

provide additional documentation and did not file amended reports to correct the

public record.

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC failed to properly disclose apparent independent 

expenditures, totaling $345,389, on Schedule E (Independent Expenditures), of which 

apparent independent expenditures, totaling $62,915, should have been reported as 

memo entries and reported as corresponding debt on Schedule D (Debts and 

Obligations), based on the date in which the mail pieces were disseminated. 

The Commission approved the Audit staff’s recommendation. 

7 

 This amount is not included in Finding 4 (Reporting of Debts and Obligations). 
 

 

 

 

27 

B. Failure to File 24/48-Hour Reports for Apparent Independent Expenditures

1. Facts

In addition to not reporting the apparent independent expenditures during the

audit period, OLC did not file any 24 or 48-hour reports.8  Of the $345,389 in

apparent independent expenditures reported as federal election activity,

• OLC failed to file 48-hour reports totaling $182,168; and,

• OLC failed to file 24-hour reports totaling $144,292.

2. Interim Audit Report & Audit Division Recommendation

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

conference and presented a schedule detailing these expenditures. In its response

to the exit conference, OLC did not provide any comments on this finding, but

generally stated that it would be filing amended reports in response to the audit.

Absent documentation that the apparent independent expenditures, totaling

$345,389, did not require reporting as independent expenditures (per Part A

above), the Interim Audit Report recommended that OLC provide documentation

to support the date of public dissemination for each identified expenditure to

determine whether 24/48-hour reports were required to be filed.

3. Committee Response to the Interim Audit Report

OLC did not provide a response to the Interim Audit Report recommendation.

Absent documentation, the public record pertaining to the disclosure of 24/48-

hour reports, has not been corrected. 

4. Draft Final Audit Report

The Draft Final Audit Report acknowledged that OLC did not respond to the

Interim Audit Report recommendation and that OLC did not file 24/48-hour

reports for apparent independent expenditures, totaling $326,460.

5. Committee Response to the Draft Final Audit Report

In response to the Draft Final Audit Report, OLC provided a general statement

regarding all of the findings. OLC stated, “We have reviewed the draft final audit

report and as we have previously stated we do not dispute any of the facts

presented. As the health and the death of the Treasurer responsible for the

transactions during the audit period does not change what resulted in that period

we must accept what happened. We have made all corrective actions that we are

able to do and await the final audit result.” The Audit staff notes OLC did not

provide additional documentation.

8 The date the expenditure is publicly distributed serves as the date that the independent expenditure is 

made for purposes of the additional 24/48-hour report filing requirements. In the absence of a known 

date for public dissemination, the Audit staff used the invoice date of incurrence to determine if a 24/48-

hour report was required. 
28 

Commission Conclusion 

On November 13, 2023, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission find that OLC failed to file 24/48-hour reports for apparent independent 

expenditures, totaling $326,460. 

The Commission approved the Audit staff’s recommendation.