August 25, 2022

MEMORANDUM 

To: The Commission

Through: Alec Palmer 

Staff Director 

From: Patricia C. Orrock

Chief Complianc

By: Scott Dickens

Lead Auditor 

Subject: Audit Division Recommendation Memorandum on Aníbal Comisionado 

2020 (A21-03) 

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

the Audit staff presented the Draft Final Audit Report (DFAR) to Aníbal Comisionado 2020 

(AC2020) on July 15, 2022 (see attachment). AC2020 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, AC2020 filed Form 99s (Miscellaneous Electronic Submissions) 

and provided additional comments, as noted below. 

Finding 1. Misstatement of Financial Activity 

In response to the DFAR, AC2020 reiterated its earlier response and stated that it 

experienced problems with its software. The misstated activity, according to 

AC2020, was not due to AC2020’s “negligence or intentional disregard of FEC’s 

requirements.” AC2020 subsequently filed Form 99s that materially corrected the 

public record for the disbursements. However, AC2020 did not file a Form 99 to 

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

e Officer e Office

Dayna C. Brown

Assistant Staff Directo Director 

Audit Division 

Zuzana O. Pacious

Audit Manager 
2 

correct the public record for its misstated receipts. Lastly, AC2020 corrected its 

ending cash on hand balance when it filed the 2021 April Quarterly disclosure 

report.1

The Audit staff recommends that the Commission find that AC2020 overstated its 

reported receipts and disbursements by $44,455 and $16,195, respectively, and 

understated its ending cash on hand by $12,640 in calendar year 2020. 

Finding 2. Disclosure of Occupation and/or Name of Employer 

In response to the DFAR, AC2020 filed Form 99s that materially corrected the 

public record. 

The Audit staff recommends that the Commission find that AC2020 failed to 

disclose or inadequately disclosed occupation and/or name of employer information 

for 304 contributions, from individuals, totaling $118,169. 

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 Scott Dickens or Zuzana Pacious at 694-

1200. 

Attachment: 

- Draft Final Audit Report of the Audit Division on Aníbal Comisionado 2020

cc: Office of General Counsel 

1

 On April 15, 2021, AC2020 filed the 2021 April Quarterly disclosure report. This report reflected a 

January 1, 2021, beginning cash balance which was in material agreement with the audited, December 31, 

2020, ending cash balance. 
Draft Final Audit Report of the 

Audit Division on Aníbal 

Comisionado 2020 

(February 10, 2020 - December 31, 2020) 

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 Committee (p. 2)

Aníbal Comisionado 2020 is the principal campaign committee 

for Aníbal Acevedo-Vilá, Democratic candidate for the United 

States House of Representatives from the territory of Puerto Rico,

and is headquartered in San Juan, Puerto Rico. For more 

information, see the Campaign Organization chart, p. 2. 

Financial Activity (p. 2)

• Receipts

o Contributions from Individuals

o Transfers from Affiliated/Other

Party Committees

o Other Federal Receipts

Total Receipts

$ 707,566 

52,181 

299 

$ 760,046 

• Disbursements

o Operating Expenditures

o Other Disbursements

Total Disbursements

$ 759,675 

50 

$ 759,725 

Findings and Recommendations (p. 3) 

• Misstatement of Financial Activity (Finding 1)

• Disclosure of Occupation and/or Name of Employer (Finding

2) 

1

 52 U.S.C. §30111(b).

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Draft Final Audit Report of the Audit 

Division on Aníbal Comisionado 

2020 

(February 10, 2020 - December 31, 2020) 

DRAFT
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. Disclosure of Occupation and/or Name of Employer 6

DRAFT
1 

Part I 

Background 

Authority for Audit

This report is based on an audit of Aníbal Comisionado 2020 (AC2020), 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 review of contributions from individuals; 

2. the disclosure of contributions received; 

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

4. the consistency between reported figures and bank records; 

5. the review of personal use of funds; 

6. the review of operating expenditures;

7. the completeness of records; and 

8. other committee operations necessary to the review.

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2 

Part II

Overview of Campaign 

Campaign Organization 

Overview of Financial Activity 

(Audited Amounts)

Cash on hand @ February 10, 2020 $ 0

Receipts

o Contributions from Individuals 707,566

o Transfers from Affiliated/Other Party 

Committees

52,181

o Other Federal Receipts 299

Total Receipts $ 760,046

Disbursements

o Operating Expenditures 759,675

o Other Disbursements 50

Total Disbursements $ 759,725

Cash on hand @ December 31, 2020 $ 321

2

 AC2020 opened its bank account on February 10, 2020.

Important Dates

• Date of Registration February 14, 2020

• Audit Coverage February 10, 20202 - December 31, 2020

Headquarters San Juan, Puerto Rico

Bank Information

• Bank Depositories Two

• Bank Accounts Two checking

Treasurer

• Treasurer When Audit Was Conducted José Luis Mendoza

• Treasurer During Period Covered by Audit José Luis Mendoza

Management Information

• Attended FEC Campaign Finance Seminar No

• Who Handled Accounting and 

Recordkeeping Tasks

Paid Staff

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3 

Part III

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity

During audit fieldwork, a comparison of AC2020’s reported financial activity with its 

bank records revealed a misstatement of receipts, disbursements, and the ending cash 

balance for calendar year 2020. AC2020 overstated its receipts and disbursements by 

$44,455 and $16,195, respectively, and understated its ending cash balance by $12,640. 

In response to the Interim Audit Report recommendation, the AC2020 representatives

explained that they experienced problems with their third-party filing software and 

attributed the misstatements to their “limited knowledge in dealing with computer 

softwares.” However, the representatives stated that adequate accounting records were 

maintained, and provided the summary of AC2020’s financial activity for calendar year 

2020. The AC2020 representatives advised the Audit staff of their intent to file a Form 

99 (Miscellaneous Electronic Submission) to correct the misstatements, however, have 

not done so, to date. Absent the filing of amended reports or a Form 99, AC2020’s 

receipts, disbursements and ending cash balance remain misstated. (For more detail, see 

p. 4.) 

Finding 2. Disclosure of Occupation and/or Name of 

Employer

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

itemization indicated that 304 contributions, totaling $118,169, lacked or inadequately 

disclosed the required occupation and/or name of employer information. AC2020 did not 

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

information. In response to the Interim Audit Report recommendation, the AC2020 

representatives explained that the majority of AC2020’s contributions were from 

contributors “who made contributions of $500 or less by mail or by electronic transfers.” 

The AC2020 representatives provided a list of contributors for whom they obtained the 

occupation and/or name of employer information, in response to the audit. The AC2020 

representatives advised the Audit staff of their intent to file a Form 99 (Miscellaneous 

Electronic Submission) to correct the public record, however, have not done so, to date. 

Absent the filing of amended reports or a Form 99, AC2020 did not correct the public 

record for 304 contributions totaling $118,169 that lacked or inadequately disclosed the 

required occupation and/or name of employer information. (For more detail, see p. 6.)

DRAFT
4 

Part IV

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity

Summary 

During audit fieldwork, a comparison of AC2020’s reported financial activity with its 

bank records revealed a misstatement of receipts, disbursements, and the ending cash 

balance for calendar year 2020. AC2020 overstated its receipts and disbursements by 

$44,455 and $16,195, respectively, and understated its ending cash balance by $12,640. 

In response to the Interim Audit Report recommendation, the AC2020 representatives 

explained that they experienced problems with their third-party filing software and 

attributed the misstatements to their “limited knowledge in dealing with computer 

softwares.” However, the representatives stated that adequate accounting records were 

maintained, and provided the summary of AC2020’s financial activity for calendar year 

2020. The AC2020 representatives advised the Audit staff of their intent to file a Form 

99 (Miscellaneous Electronic Submission) to correct the misstatements, however, have 

not done so, to date. Absent the filing of amended reports or a Form 99, AC2020’s 

receipts, disbursements and ending cash balance remain misstated. 

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 

• 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 AC2020’s reported financial activity 

with its bank records for calendar year 2020. The reconciliation determined that AC2020 

misstated receipts, disbursements, and the ending cash balance for 2020. The following 

chart details the discrepancies between AC2020’s disclosure reports and its bank activity. 

The succeeding paragraphs explains why the discrepancies occurred. 

DRAFT
5 

2020 Committee Activity

Reported Bank Records Discrepancy

Beginning Cash on hand @ 

January 1, 2020

$0 $0 $0

Receipts $804,501 $760,046 $44,455

Overstated

Disbursements $775,920 $759,725 $16,195

Overstated

Ending Cash on hand @ 

December 31, 2020

($12,319)3 $321 ($12,640)

Understated

The overstatement of receipts resulted from the following differences: 

• Returned contributions, not reported or incorrectly reported - 4,540 

• Receipts reported, but did not clear the bank - 55,960 

• Unexplained differences + 16,045 

Net Overstatement of Receipts $ 44,455 

The overstatement of disbursements resulted from the following differences: 

• Disbursements that cleared the bank, not reported + 322,070 

• Disbursements reported, but did not clear the bank - 336,859 

• Disbursements reported with incorrect amount - 154 

• Unexplained differences - 1,252 

Net Overstatement of Disbursements $ 16,195 

The $12,640 understatement of the ending cash balance was a result of the reporting 

discrepancies noted above, as well as mathematical reporting errors.

Regarding the overstatement for disbursements, the Audit staff identified seven 

disbursements, to three vendors, totaling $336,859 that were reported by AC2020, 

however, they did not clear AC2020’s bank account. Additionally, the Audit staff 

identified 276 disbursements, totaling $322,070, that cleared AC2020’s bank account but 

were not reported. 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter during the exit conference with the AC2020 

representatives and provided the relevant schedules. The AC2020 representatives stated 

that they believed the misstatements were the result of duplicate and reverse entry errors 

caused by its third-party filing software.4 

3

 The reported ending cash on hand does not equal $28,581, calculated as the reported beginning cash on 

hand ($0) plus reported receipts ($804,501) minus reported disbursements ($775,920). This was due to 

mathematical discrepancies between the reported beginning cash on hand of reporting periods not 

equaling the ending cash on hand of prior reporting periods. 4

 AC2020 purchased and used third-party software to prepare and file its disclosure reports.

DRAFT
6 

In response to the exit conference, the AC2020 representatives stated that they would 

analyze the difference between bank records and the information included in the reports 

in order to reconcile the differences for receipts, disbursements and cash. They explained 

that the “principal reason for the differences is attributable to duplication of receipts and 

disbursements in the reports filed by the committee” due to “problems with the software.” 

The AC2020 representatives further stated that they were preparing a detailed analysis of 

transactions to determine the exact amounts of deposits and disbursements in order to 

correct the reported amounts and, if necessary, would file a Form 99 to disclose the 

missing information. AC2020 has not amended its reports or filed a Form 99 

(Miscellaneous Electronic Submission) to correct these misstatements. 

The Interim Audit Report recommended that AC2020 amend its disclosure reports or file 

a Form 99 (Miscellaneous Electronic Submission)5 to correct the misstatements noted 

above. In addition, the Interim Audit Report recommended that AC2020 reconcile the 

cash balance on its most recently filed report and correct any subsequent discrepancies.

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, the AC2020 representatives 

explained that they experienced problems with the recording of transactions in their thirdparty filing software and, in most reports, they were unable to reconcile the amounts 

reflected on the disclosure reports with the bank amounts. The AC2020 representatives 

further stated that they maintained adequate accounting records for their receipts and 

disbursements, and provided an internally prepared schedule of cash flow, reflecting the 

beginning cash balance at inception; the amounts of contributions received; the amounts 

paid for various expenses; and the ending cash balance as of December 31, 2020. 

Additionally, they provided bank statements, which were also provided prior to audit 

fieldwork, reflecting the beginning and ending cash balances for calendar year 2020. 

The AC2020 representatives advised the Audit staff of their intent to file a Form 99 

(Miscellaneous Electronic Submission) to correct the misstatements, however, they have 

not done so, to date. Absent the filing of amended reports or a Form 99, AC2020’s 

receipts, disbursements and ending cash balance remain misstated. 

Finding 2. Disclosure of Occupation and/or Name of 

Employer 

Summary 

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

itemization indicated that 304 contributions, totaling $118,169, lacked or inadequately 

disclosed the required occupation and/or name of employer information. AC2020 did not 

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

5

 AC2020 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.

DRAFT
7 

information. In response to the Interim Audit Report recommendation, the AC2020 

representatives explained that the majority of AC2020’s contributions were from 

contributors “who made contributions of $500 or less by mail or by electronic transfers.” 

The AC2020 representatives provided a list of contributors for whom they obtained the 

occupation and/or name of employer information, in response to the audit. The AC2020 

representatives advised the Audit staff of their intent to file a Form 99 (Miscellaneous 

Electronic Submission) to correct the public record, however, have not done so, to date. 

Absent the filing of amended reports or a Form 99, AC2020 did not correct the public 

record for 304 contributions totaling $118,169 that lacked or inadequately disclosed the 

required occupation and/or name of employer information. 

Legal Standard 

A. Itemization Required for Contributions from Individuals. An authorized 

candidate committee must itemize any contribution from an individual if it exceeds 

$200 per election cycle, 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 election cycle 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)(i). 

C. Best Efforts Ensure 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 only be deemed to 

have exercised “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 of 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). 

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8 

Facts and Analysis 

A. Facts

AC2020 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 

Number of Contributions 304 

Dollar Value of Contributions $118,169 

Percent of Contributions 23% 

1. Contributor Information Provided but Amendments NotFiled:

During audit fieldwork, AC2020 provided the Audit staff with the required contributor 

occupation and/or name of employer information; however, AC2020 did not file the 

required amendments for the following: 

2. Best Efforts Documentation Not Provided:

AC2020 did not provide the Audit staff records to document “best efforts” for the 

following: 

Best Efforts Documentation Not Provided by Committee

Number of Contributions 107 

Dollar Value of Contributions $54,980 

3. Additional Information:

AC2020 disclosed the following on Schedule A (Itemized Receipts): 

6

 AC2020’s updated documentation, provided to the Audit staff during fieldwork, contained the occupation 

and/or name of employer information.

Contributor Information Provided but Amendments Not Filed

Number of Contributions 1976

Dollar Value of Contributions $63,189 

DRAFT
9 

• “Information Requested” or “N/A” for 282 contributions totaling $109,264, and 

• Inadequate occupation and/or name of employer for 22 contributions totaling 

$8,905. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter with the AC2020 representatives during audit 

fieldwork and at the exit conference and provided a schedule detailing these disclosure 

errors. The AC2020 representatives stated that there were many duplicate transactions 

on the disclosure reports and asked if the Audit staff’s schedule detailing the disclosure 

errors contained any duplicate transactions. The Audit staff advised that duplicate 

transactions were not included on the schedule. The AC2020 representatives stated that 

they would work to obtain the “best efforts” information. 

In response to the exit conference, AC2020 stated that it would file a Form 99 to include 

information obtained from contributors. AC2020 was also in process of obtaining the 

remaining contributor information related to occupation and/or name of employer. 

In response to the exit conference, AC2020 submitted the following:

Corrective Action Taken in Response to the Exit Conference

Number of Best Efforts Letters sent to Contributors - Untimely 57 

Dollar Value of Best Efforts Letters sent to Contributors - Untimely $23,050 

Number of Contributor Responses Received from Best Efforts 

Letters 17

Dollar Value of Contributor Response from Best Efforts Letter $2,800 

Number of Contributors’ Occupation and Name of Employer

Information Provided after Exit Conference 31 

Dollar Value of Contributors’ Occupation and Name of Employer 

Information Provided after Exit Conference $27,300 

Dollar Value of Amendments filed $0 

Dollar Value of Amendments Still Required to be filed with 

Best Efforts Information $93,2898

The Interim Audit Report recommended that AC2020 amend its disclosure reports or file 

a Form 99 (Miscellaneous Electronic Submission)5 to disclose the occupation and/or 

name of employer information relating to the 2299 contributions, totaling $93,289, 

received from its contributors.

7 AC2020 received four responses from its contributors, however, two of the responses were previously 

provided during audit fieldwork and one response did not include the required disclosure information. 8

 $93,289 = $2,800 + $27,300 + $63,189 (see Section A.1). 9 229 = 1 + 31 + 197 (see Section A.1)

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10 

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, the AC2020 representatives 

explained that the majority of AC2020’s contributions were from contributors who 

“made contributions of $500 or less by mail or by electronic transfers” and were received 

without contributor contact information. In such instances, AC2020 would follow up 

“through other venues” by sending letters and/or emails requesting the missing 

occupation and/or name of employer information. The AC2020 representatives provided 

a list of contributors for whom they obtained the occupation and/or name of employer 

information, in response to the audit. The Audit staff reviewed the list and determined 

that corrected information was obtained for an additional 13 contributions totaling 

$3,500, as follows: 

Corrective Action Taken in Response to the Interim Audit Report

Number of Contributors’ Occupation and Name of Employer 

Information Provided after Interim Audit Report 13 

Dollar Value of Contributors’ Occupation and Name of Employer 

Information Provided after Interim Audit Report $3,500 

Dollar Value of Amendments filed $0 

Dollar Value of Amendments Still Required to be filed with 

Best Efforts Information $96,78910

The AC2020 representatives demonstrated that they obtained and maintained the 

occupation and/or name of employer information for 24211 contributions, totaling 

$96,789. They advised the Audit staff of their intent to file a Form 99 (Miscellaneous 

Electronic Submission) to disclose the required information and correct the public record, 

however, they have not done so, to date. Absent the filing of amended reports or a Form 

99, AC2020 did not correct the public record for 304 contributions totaling $118,169, that 

lacked or inadequately disclosed the required occupation and/or name of employer 

information. 

 

10 $96,789 = $3,500 + $93,289 (see Section B). 11 242 = 13 + 229 (see Section B)

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