Interim Audit Report of the 

Audit Division on 

Dr. Raul Ruiz for Congress 

(January 1, 2017 - December 31, 2018) 

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. 

About the Campaign (p. 2) 

Dr. Raul Ruiz for Congress is the principal campaign committee 

for Dr. Raul Ruiz, Democratic candidate for the United States 

House of Representatives from the state of California, 36th 

Congressional District, and is headquartered in Palm Desert, 

California. For more information, see the Campaign 

Organization chart, p.2. 

Financial Activity (p. 2) 

• Receipts 

o Contributions from Individuals $ 1,917,208 

o Contributions from Political 

Committees 1,235,207 

o Transfers from Other Authorized 

Committees 17,829 

o Offsets to Operating 

Expenditures 7,810 

Total Receipts $ 3,178,054 

• Disbursements 

o Operating Expenditures $ 2,502,591 

o Contribution Refunds 29,857 

o Other Disbursements 5,868 

Total Disbursements $ 2,538,316 

Findings and Recommendations (p. 3) 

• Misstatement of Financial Activity (Finding 1) 

• Personal Use of Campaign Funds (Finding 2) 

1 52 U.S.C. §30111(b). 
Interim Audit Report of 

the Audit Divison on 

Dr. Raul Ruiz for Congress 

(January 1, 2017 - December 31, 2018) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Campaign 

Campaign 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. Personal Use of Campaign Funds 5 
1 

Part I 

Background 

Authority for Audit 

This report is based on an audit of Dr. Raul Ruiz for Congress (RRFC) 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 must 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; 

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 consistency between reported figures and bank records; 

7. the completeness of records; and 

8. other committee operations necessary to the review. 
 

 

2 

Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Date of Registration September 23, 2011 

• Audit Coverage January 1, 2017 – December 31, 2018 

Headquarters Palm Desert, California 

Bank Information 

• Bank Depositories Two 

• Bank Accounts One checking and one savings account 

Treasurer 

• Treasurer When Audit Was Conducted John Pinkney 

• Treasurer During Period Covered by Audit John Pinkney (January 8, 2013 – 

Present) 

Management Information2 

• Attended FEC Campaign Finance Seminar Not Available 

• Who Handled Accounting and 

Recordkeeping Tasks 

Paid Staff 

Overview of Financial Activity 

(Audited Amounts) 

Cash-on-hand @ January 1, 2017 $ 1,003,930 

Receipts 

o Contributions from Individuals 1,917,208 

o Contributions from Political Committees 1,235,207 

o Transfers from Other Authorized 

Committees 

17,829 

o Offsets to Operating Expenditures 7,810 

Total Receipts $ 3,178,054 

Disbursements 

o Operating Expenditures 2,502,591 

o Contribution Refunds 29,857 

o Other Disbursements 5,868 

Total Disbursements $ 2,538,316 

Cash-on-hand @ December 31, 2018 $ 1,643,668 

2 

 During pre-audit, the Audit staff provided RRFC the Internal Control Questionnaire to complete, which included 

these questions. Additionally, RRFC was asked these questions in follow-up correspondence. To date, the 

questionnaire has not been returned by RRFC. 
 

 

 

 

 

 

 

 

3 

Part III 

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

During audit fieldwork, a comparison of RRFC’s reported financial activity with its bank 

records revealed a misstatement of disbursements for calendar year 2017. RRFC 

understated its disbursements by $16,794. The Audit staff recommends that RRFC 

amend its disclosure reports to correct the misstatement or file a Form 99 (Miscellaneous 

Text Submission). (For more detail, see p. 4) 

Finding 2. Personal Use of Campaign Funds 

During a review of reported disbursements, the Audit staff identified disbursements 

totaling $5,899 as potential personal use of campaign funds. The disbursements included 

purchases for vehicle-related expenditures such as parking, gasoline, and insurance 

payments. The Audit staff recommends that RRFC provide documentation 

demonstrating that these expenditures are related to the campaign or seek reimbursement. 

(For more detail, see p. 5) 
 

 

 

 

 

 

4 

Part IV 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

Summary 

During audit fieldwork, a comparison of RRFC’s reported financial activity with its bank 

records revealed a misstatement of disbursements for calendar year 2017. RRFC 

understated its disbursements by $16,794. The Audit staff recommends that RRFC 

amend its disclosure reports to correct the misstatement or file a Form 99 (Miscellaneous 

Text Submission). 

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 election cycle; 

• the total amount of disbursements for the reporting period and for the election cycle; 

and 

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

Schedule B (Itemized Disbursements). 52 U.S.C. §30104(b)(l), (2), (3), (4), and (5). 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff reconciled RRFC’s reported financial activity 

with its bank records for calendar years 2017 and 2018. The reconciliation determined 

that RRFC misstated disbursements for 2017. The following chart details the 

discrepancies between RFCC’s disclosure reports and bank activity. The succeeding 

paragraphs explain why the discrepancies occurred. 

2017 Committee Activity 

Reported Bank Records Discrepancy 

Beginning Cash on hand @ 

January 1, 2017 

$990,316 $1,003,930 $13,614 

Understated 

Receipts $1,803,606 $1,814,922 $11,316 

Understated 

Disbursements $698,170 $714,964 $16,794 

Understated 

Ending Cash on hand @ 

December 31, 2017 

$2,095,752 $2,103,888 $8,136 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

5 

The understatement of disbursements resulted from the following: 

• Disbursements not reported or reported incorrectly + 13,500 

• Contribution refunds reported but did not clear bank - 586 

• Unexplained differences + 3,880 

Net Understatement of Disbursements $16,794 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter during the exit conference with RRFC 

representatives and provided schedules detailing the misstatement of financial activity. 

RRFC representatives did not provide any comments. 

In response to the exit conference, RRFC submitted documentation which reduced the 

amount of the understatement on the FEC reports to $16,794 (reflected above in the Facts 

section). 

The Audit staff recommends that, within 30 calendar days of service of this report, RRFC 

amend its disclosure reports or file a Form 993 (Miscellaneous Electronic Submission) to 

correct the misstatement noted above, and reconcile the cash balance on its most recently 

filed report to include these adjustments and correct any subsequent discrepancies. 

Finding 2. Personal Use of Campaign Funds 

Summary 

During a review of reported disbursements, the Audit staff identified disbursements 

totaling $5,899 as potential personal use of campaign funds. The disbursements included 

purchases for vehicle-related expenditures such as parking, gasoline, and insurance 

payments. The Audit staff recommends that RRFC provide documentation 

demonstrating that these expenditures are related to the campaign or seek reimbursement. 

Legal Standard 

A. Use of Campaign Funds. Using campaign funds for personal use is prohibited. 11 

CFR §113.1 (g). 

B. Personal Use Defined. Personal use is defined as any use of funds in a campaign 

account of a present or former candidate to fulfill a commitment, obligation or 

expense of any person that would exist irrespective of the candidate’s campaign or 

duties as a Federal officeholder. 11 CFR § 113.1 (g). 

Commission regulation lists a number of purposes that would constitute personal use 

per se. This includes but is not limited to the use of campaign funds for: 

• Household food items or supplies; 

• Funeral, cremation, or burial expenses; 

3 If RRFC chooses to file a Form 99 instead of amending its disclosure reports, the form must contain all 

pertinent information that is required on the schedule. 
 

 

 

 

 

 

 

 

 

 

 

6 

• Clothing other than items of de minimis value used in the campaign such as Tshirts or caps; 

• Tuition payments; 

• Mortgage, rent, or utility payments; 

• Admission to sporting events, concerts, theaters, or other form of 

entertainment unless part of a specific campaign or officeholder activity; 

• Dues, fees, or gratuities at a country club, health club, recreational facility, or 

other non political organization; and 

• Salary payments to a family member (unless the family member is providing 

bona fide services). 11 CFR §113.1 (g)(1)(i). 

Where a specific purpose is not listed as personal use, the Commission makes a 

determination, on a case-by-case basis, whether an expense would fall within the 

regulation’s definition of personal use. Examples of such other uses include: 

• Legal expenses; 

• Meal expenses; 

• Travel expenses; and 

• Vehicle expenses. 11 CFR §113.1(g)(1)(ii). 

C. Vehicle Expenses. If a committee uses campaign funds to pay expenses associated 

with a vehicle that is used for both personal activities beyond a de minimis amount 

and campaign or office-holder-related activities, the portion of the vehicle expenses 

associated with the personal activities is personal use, unless the person(s) using the 

vehicle for personal activities reimburse(s) the campaign account within thirty days 

for the expenses associated with the personal activities. 11 CFR §113.1(g)(1)(ii)(D). 

D. Recordkeeping. For those uses of campaign funds that involve both personal use 

and either campaign or office-holder activity, the committee must maintain a 

contemporaneous log or other record to document the dates and expenses related to 

the personal use of campaign funds. The log must be updated whenever campaign 

funds are used for personal expenses rather than for campaign or officeholder 

expenses. The log or other record must also be maintained and preserved for 3 years 

after the report disclosing the disbursement is filed, pursuant to 11 CFR §102.9 and 

104.14(b). 11 CFR §113.1(g)(8). 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff reviewed disbursements by RRFC and determined 

that disbursements totaling $5,899 were not campaign related. These disbursements were 

for vehicle-related purchases, including gasoline ($5,861), parking ($22), and insurance 

($16). Personal vehicles were used by committee staff for both personal and campaign 

related activities. This is permissible; however, in accordance with 11 CFR §113.1(g)(8), 

when a vehicle is used for both personal and campaign-related activites, a committee 

must maintain a record which documents the personal usage, which RRFC did not 

maintain. In addition, there is no evidence of personal use activities being reimbursed by 
 

 

 

 

 

 

 

 

 

 

 

 

7 

campaign personnel, as required under 11 CFR §113.1(g)(1)(ii)(D). The Audit staff 

requested that RRFC provide documentation such as receipts, dates of events, or any 

contemporaneous documentation that correlates these disbursements with campaign 

activity. Documentation was not provided by RFCC during audit fieldwork. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed the personal use of campaign funds with RRFC representatives 

during the exit conference and provided schedules detailing the transactions. In response, 

RRFC representatives provided a declaration from the Campaign Manager attesting that 

the disbursements for gasoline were for campaign-related travel. The Campaign Manager 

further stated that because the congressional district is 6,000 square miles in area, 

extensive vehicle travel was necessary in connection with the campaign. 

With the exception of the declaration from the Campaign Manager, no supporting 

documentation was provided by RRFC to substantiate the campaign-related nature of 

these disbursements. The declaration does not meet the provisions of 11 CFR 

§113.1(g)(8) as it is not a contemporaneous log or other record which documents the 

dates and expenses related to the personal use of campaign funds. In addition, the 

declaration does not provide any evidence of reimbursements for the mix of personal and 

campaign related expenses, which is required under 11 CFR §113.1(g)(1)(ii)(D). For 

these reasons, the Audit staff concluded that these disbursements were not related to the 

campaign. 

The Audit staff recommends that, within 30 calendar days of service of this report, RRFC 

provide documentation demonstrating that the identified disbursements were for 

campaign-related activity. In accordance with 11 CFR §113.1(g), the documentation may 

include, but is not limited to, a record which documents the personal usage of the 

vehicle(s) and evidence of personal use activities being reimbursed to the committee by 

the campaign representative(s). Absent such demonstration, the Audit staff recommends 

that the $5,899 be reimbursed to RRFC by committee personnel who made the vehiclerelated purchases. If reimbursed, RRFC should provide copies of the reimbursement 

checks received, along with the corresponding bank statements that demonstrate the 

check deposits into the RRFC bank account. RRFC should also provide any comments it 

deems relevant to this matter.