Draft Final Audit Report of the 

Audit Division on the US 

Veterans Assistance 

Foundation, PAC1

(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.2

 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)

The US Veterans Assistance Foundation, PAC is a non-connected, 

independent expenditure-only committee headquartered in 

Fredonia, Wisconsin. For more information, see the chart on the 

Committee Organization, p. 2. 

Financial Activity (p. 2)

• Receipts

o Contributions from Individuals $ 6,454,147 

o Transfers from 

Affiliated/Other Party 96,922 

Committees $ 6,551,069

Total Receipts

• Disbursements

Operating Expenditures $ 5,667,092 

o Transfers to Affiliated/Other 

Party Committees 368,311 

o Independent Expenditures 40,000 

Total Disbursements $ 6,075,403 

o

 

Findings and Recommendations (p. 3) 

• Misstatement of Financial Activity (Finding 1)

• Increased Activity (Finding 2) 

• Disclosure of Occupation and Name of Employer (Finding 3) 

• Disclosure of Disbursements (Finding 4) 

• Recordkeeping for Disbursements and Use of Designated 

Depository (Finding 5) 

• Failure to File 24/48-Hour Reports (Finding 6) 

1 The committee’s name during the audit period was US Veterans Assistance Foundation and was 

subsequently changed to US Veterans Assistance Foundation, PAC on September 23, 2021. 2

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

Audit Division on the 

US Veterans Assistance 

Foundation, PAC 

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

Page 

Part I. Background

 Authority for Audit 1 

 Scope of Audit 1 

Limitations 1 

 

Part II. Overview of Committee 

Committee Organization 3 

Overview of Financial Activity 3 

Part III. Summaries 

Findings and Recommendations 4 

Part IV. Findings and Recommendations

Finding 1. Misstatement of Financial Activity 6

Finding 2. Increased Activity 9

Finding 3. Disclosure of Occupation and Name of Employer 10

Finding 4. Disclosure of Disbursements 13

Finding 5. Recordkeeping for Disbursements and Use of Designated 

Depository 16

Finding 6. Failure to File 24/48-Hour Reports 23
1 

Part I 

Background

Authority for Audit

This report is based on an audit of the US Veterans Assistance Foundation, PAC (USVAF), 

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 disclosure of individual contributors’ occupation and name of employer; 

2. the disclosure of disbursements; 

3. the consistency between reported figures and bank records; 

4. the completeness of records;

5. the disclosure of independent expenditures; and 

6. other committee operations necessary to the review. 

Limitations

USVAF did not comply with the provision of §104.14(b)(1), which requires committee to 

maintain sufficiently detailed records in order to verify the filed reports. USVAF reported 147 

disbursements totaling $5,456,675 as payments to vendors. However, the Audit staff found that 

USVAF’s bank statements reflected 53 ACH transfers3 for this same amount to an entity 

annotated as “Usvetassistfound.” The bank statements described each transaction as “ACH 

Settlement Vendor Usvetassistfound.” This entity appears to be the US Veterans Assistance 

Foundation, LLC4. USVAF provided vendor statements showing that all billed amounts were 

paid, presumably suggesting that “Usvetassistfound” used the funds wired from USVAF to pay 

the vendors. USVAF has not provided any USVAF or “Usvetassistfound” bank records to 

3

 In its response to the exit conference and the Interim Audit Report, USVAF referred to these transactions as “ACH 

wire transfers.” The Audit staff likewise referred to the transactions as wire transfers in the Interim Audit Report; 

however, these outgoing electronic payments are labeled as “ACH” transactions on USVAF’s bank statements. 

To conform to the terminology in the bank statements, the Audit staff will refer to these as “ACH” transactions in 

this and the subsequent audit reports. 4

 Based on the results of the Office of General Counsel’s Business Entity Search on

https://esos.nv.gov/EntitySearch/OnlineEntitySearch. In its response to the exit conference, USVAF stated that 

the US Veterans Assistance Foundation LLC does not exist. See Finding 5. 
2 

support that the funds were used to pay the vendors disclosed on USVAF’s disclosure reports. 

(See Finding 5A). 

Further, USVAF may have violated 52 U.S.C. § 30102(h) and 11 C.F.R. § 103.3(a), which 

require committees to make all disbursements, except those for petty cash, through checks drawn 

on a designated depository account. USVAF routed its funds through the “Usvetassistfound” 

bank account before purportedly disbursing these funds to the vendors. The Audit staff, in 

absence of the “Usvetassistfound” bank statements, was unable to identify the composition of the 

funds in that bank account. As a result, USVAF may have impermissibly commingled its funds 

with the personal funds of an individual or with corporate funds. (See Finding 5B). 
3 

Part II

Overview of Committee 

Committee Organization 

Overview of Financial Activity 

(Audited Amounts)

Cash-on-hand @ January 1, 2017 $ 225

Receipts

o Contributions from Individuals 6,454,147

o Transfers from Affiliated/Other Party 

Committees

96,922

Total Receipts $ 6,551,069

Disbursements

o Operating Expenditures 5,667,092

o Transfers to Affiliated/Other Party 

Committees

368,311

o Independent Expenditures 40,000

Total Disbursements $ 6,075,403

Cash-on-hand @ December 31, 2018 $ 475,891

5 USVAF established a bank account prior to the 2017 – 2018 audit period and before it registered with the 

Commission and received contributions/made expenditures aggregating in excess of $1,000 in connection with a 

federal election. 

Important Dates

• Date of Registration5 August 18, 2017

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

Headquarters Fredonia, WI

Bank Information

• Bank Depositories Two

• Bank Accounts Two checking accounts

Treasurer

• Treasurer When Audit Was Conducted Robert Piaro

• Treasurer During Period Covered by Audit Robert Piaro

Management Information

• Attended FEC Campaign Finance Seminar No

• Who Handled Accounting and 

Recordkeeping Tasks

Paid Staff
4 

Part III

Summaries

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity

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

bank records revealed a misstatement of disbursements and the ending cash balance for 

calendar year 2018. USVAF overstated its disbursements by $244,141 and understated 

its ending cash balance by $224,021. In response to the Interim Audit Report 

recommendation, USVAF filed amended disclosure reports for calendar year 2018 which 

materially corrected disbursements. However, the 2018 disbursements and the ending 

cash balance remain misstated on the amended reports largely due to USVAF’s removal 

of a previously reported disbursement of $200,000 although bank records show the check 

cleared its bank account in January 2019. The Audit staff concludes that 2018 

disbursements and ending cash remain materially misstated by $198,327 and $237,251, 

respectively. (For more detail, see p. 6.) 

Finding 2. Increased Activity 

A comparison of USVAF’s bank activity with its originally filed reports revealed that 

disbursements were understated by $2,795,679 for calendar years 2017 and 2018. In 

response to the Interim Audit Report recommendation, USVAF reiterated its earlier 

response to the exit conference by stating that its original 2018 July Quarterly and 

October Quarterly Reports were inadvertently uploaded without all of the corresponding 

disbursements. USVAF stated that it has implemented “processes and procedures to 

avoid similar errors in the future.” The Audit staff concludes that USVAF misstated 

disbursements by $2,795,679, on its originally filed reports. (For more detail, see p. 9.) 

Finding 3. Disclosure of Occupation and Name of 

Employer

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

itemization indicated that 160 contributions totaling $40,850 lacked or inadequately 

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

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

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

“best efforts,” however, USVAF did not file amended reports to disclose and report the 

missing or inadequate information. In response to the Interim Audit Report 

recommendation, USVAF amended its disclosure reports by including or adequately 

disclosing the required occupation and/or name of employer information relating to 97 

contributions totaling $23,710. The Audit staff concludes that USVAF materially 

corrected the public record by amending its 2017 and 2018 disclosure reports to 

adequately disclose occupation and name of employer information for 97 contributions 

totaling $23,710. (For more detail, see p. 10.) 
5 

Finding 4. Disclosure of Disbursements

During audit fieldwork, the Audit staff identified 144 disbursements totaling $5,358,342 

with inadequate or inaccurate disclosure information. In response to the Interim Audit 

Report recommendation, USVAF stated that it was “...in the process of amending its 

reports to disclose accurate addresses and purposes and to address the FEC’s 

recommendation pertaining to disclosing itemized disbursements.” USVAF continued to 

deny it violated the applicable reporting requirements or that it lacked or had inadequate 

disclosure information and maintained that this information was correctly reported. 

USVAF did not correct the disclosure information for the disbursements included in this 

finding. The Audit staff concludes that USVAF’s disclosure reports continue to reflect 

inadequate or inaccurate disclosure information pertaining to disbursements totaling 

$5,358,342. (For more detail, see p. 13.) 

Finding 5. Recordkeeping for Disbursements and Use of 

Designated Depository

During audit fieldwork, the Audit staff identified payments totaling $5,456,675, which 

USVAF made to “Usvetassistfound,” however, USVAF reported these disbursements as 

payments to vendors on its disclosure reports. USVAF did not provide any 

“Usvetassistfound” bank statements to demonstrate that these payments were 

subsequently transmitted to the disclosed vendors. In response to the Interim Audit 

Report recommendation, USVAF reiterated that the payments were made to the intended 

vendors and not to “the U.S. Veterans Assistance Foundation, LLC, nor any other entity 

or entities.” Also in response to the Interim Audit Report recommendation, USVAF 

submitted the redacted bank statements obtained from four of its vendors which reflected 

84 payments totaling $2,963,742, for the period January 1, 2018 through August 9, 2018. 

However, the payments outlined on the redacted bank statements are not supporting and 

verifiable evidence that the disclosed vendors were paid with the funds transferred from 

USVAF’s bank account. USVAF provided no additional documentation for the 

remaining 63 vendor payments totaling $2,492,834. The Audit staff concludes that 

USVAF did not provide sufficient supporting and verifiable evidence that the disclosed 

vendor payments totaling $5,456,675, were made with the funds transferred from 

USVAF’s bank account. (For more detail, see p. 16.)

Finding 6. Failure to File 24/48-Hour Reports 

During audit fieldwork, the Audit staff determined that USVAF untimely filed 48-Hour 

Reports for two independent expenditures totaling $17,000 and did not file the required 

24-Hour Reports for two independent expenditures totaling $15,000. In response to the 

Interim Audit Report recommendation, USVAF stated that the errors were 

“unintentional” and it has implemented processes to ensure the filing of such reports in 

the future. The Audit staff concludes that USVAF untimely filed 48-Hour Reports for 

two independent expenditures totaling $17,000 and did not file 24-Hour Reports for two 

independent expenditures totaling $15,000. (For more detail, see p. 23.)
6 

Part IV 

Findings and Recommendations

Finding 1. Misstatement of Financial Activity 

Summary 

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

bank records revealed a misstatement of disbursements and the ending cash balance for 

calendar year 2018. USVAF overstated its disbursements by $244,141 and understated 

its ending cash balance by $224,021. In response to the Interim Audit Report 

recommendation, USVAF filed amended disclosure reports for calendar year 2018 which 

materially corrected disbursements. However, the 2018 disbursements and the ending 

cash balance remain misstated on the amended reports largely due to USVAF’s removal 

of a previously reported disbursement of $200,000 although bank records show the check 

cleared its bank account in January 2019. The Audit staff concludes that 2018 

disbursements and ending cash remain materially misstated by $198,327 and $237,251 

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 USVAF’s reported financial activity

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

that USVAF misstated disbursements and the ending cash balance for 2018. The 

following chart details the discrepancies between USVAF’s disclosure reports and its 

bank activity. The succeeding paragraph explains why the discrepancies occurred. 

2018 Committee Activity

Reported Bank Records Discrepancy

Beginning Cash on hand @ 

January 1, 2018

 $12,614 $12,614 $0

Receipts $6,462,798 $6,442,678 $20,120

Overstated
7 

2018 Committee Activity

Reported Bank Records Discrepancy

Disbursements $6,223,542 $5,979,401 $244,141

Overstated

Ending Cash on hand @ 

December 31, 2018

$251,870 $475,891 ($224,021)

Understated

The overstatement of disbursements resulted from the following differences: 

• Disbursements not reported + 3,970 

• Disbursements reported incorrectly - 3,010 

• Disbursements reported but did not clear the bank - 227,862 

• Bank reversing entries reported as disbursements - 6,975 

• Offsets to operating expenditures reported as disbursements - 10,264 

Net Overstatement of Disbursements $ 244,141 

The $224,021 understatement of the ending cash balance was a result of the 

reporting discrepancies noted above. 

B. Interim Audit Report & Audit Division Recommendation

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

representatives and provided the relevant schedules. In response to the exit conference, 

USVAF stated that the overstatement of disbursements relates to a voided check to a 

vendor totaling $225,000. USVAF explained that its accounting firm voided this check 

but did not inform USVAF’s reporting team of the void. USVAF provided its December 

2018 general ledger reflecting the voided payment6

 and stated it would file an amended 

disclosure report. USVAF further explained that this error occurred due to 

communication issues between its accounting and reporting team and the lack of a 

standardized reconciliation process at that time. USVAF stated it has adjusted its process 

to improve reporting and avoid similar errors in the future. Additionally, it has instituted 

a two-level reconciliation prior to filing and improved communication between the 

accounting and reporting teams and it “will provide the appropriate amendments.” Todate, USVAF has not amended its reports to disclose the voided check. 

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

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

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

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

C. Committee Response to Interim Audit Report

In its narrative response to the Interim Audit Report recommendation, USVAF reiterated 

that the overstated disbursements and the corresponding understated ending cash on hand 

in calendar year 2018, were caused by the erroneous reporting of a voided $225,000 

check. In August 2021, USVAF filed amended disclosure reports which materially 

6 The check was made to a political action committee and the Audit staff verified that this committee did 

not report any such contribution from USVAF.
8 

corrected the misstated disbursements for the 2018 calendar year, identified by the Audit 

staff. However, in its amended 2018 Year-End disclosure report, USVAF noted that

“[t]he Closing balance of this amended report is increasing by $461,271.64. Of that 

value, $23,740.29 of it is due to the discovery of the PayPal account during this audit. 

There was also an additional $200,000 check to “Congressional Leadership Fund” that 

was voided.” By removing this transaction from its amended disclosure reports, USVAF 

misstated its disbursement and ending cash on hand by $198,327 and $237,251, 

respectively.

Regarding the removal of the previously reported disbursement of $200,000, the Audit 

staff notes that USVAF made this disbursement via check dated December 27, 2018. The 

check subsequently cleared USVAF’s bank account on January 9, 2019. Based on the 

documentation provided by USVAF during the audit, this was a valid disbursement 

which was disclosed accurately on its original 2018 Year-End Report. The removal of 

this transaction on the amended 2018 Year-End Report, creates an additional discrepancy 

of $200,000 for disbursements and ending cash on hand. Following the review of the 

amended reports, the Audit staff reached out to USVAF and inquired as to why the 

transaction was removed from its disclosure report. In its response to this inquiry, 

USVAF stated that “[T]his donation was originally marked as December 27, 2018 but 

during the reconciliation process it was found to not have cleared until the next period.” 

USVAF disclosed this transaction on its 2019 Mid-Year Report with a disbursement date 

of January 9, 2019 and purpose of “Donation (In transit from 12-27-18).” However, this 

is not a correct disclosure because the date of disbursement was not January 9, 2019. 

This was a 2018 disbursement drawn on a check dated December 27, 2018 and should be 

disclosed when incurred, rather than when it cleared the bank. The fact that the donation 

check was outstanding as of December 31, 2018, indicates that it was a 2018 reconciling 

item and not a 2019 disbursement. The Audit staff recommends that USVAF amend its 

2018 Year-End Report to include this disbursement. 

Additionally, the five 2018 disclosure reports USVAF amended in August 20217

, 

contained a notation of the “discovery of the PayPal Account during this audit.” As a 

result, the amended reports reflect an increase in receipts totaling $71,385.8 The 

corresponding cash on hand increased accordingly. USVAF did not provide the monthly 

PayPal statements to the Audit staff in response to the audit notification. In light of this

“discovery,” the Audit staff recommends that USVAF provide all monthly PayPal 

statements to the Audit staff for review and inclusion in the bank reconciliation. 

The Audit staff concludes that 2018 disbursements and ending cash on hand remain 

materially misstated by $198,327 and $237,251 respectively. 

7 The five reports are the 2018 July Quarterly; October Quarterly; 12 Day Pre-General; 30 Day PostGeneral; and Year-End reports. 8 The Audit staff notes that this amount does not have a material impact on Increased Activity for receipts. 

 See Finding 2.
9 

Finding 2. Increased Activity

Summary 

A comparison of USVAF’s bank activity with its originally filed reports revealed that 

disbursements were understated by $2,795,679 for calendar years 2017 and 2018. In 

response to the Interim Audit Report recommendation, USVAF reiterated its earlier 

response to the exit conference by stating that its original 2018 July Quarterly and 

October Quarterly Reports were inadvertently uploaded without all of the corresponding 

disbursements. USVAF stated that it has implemented “processes and procedures to 

avoid similar errors in the future.” The Audit staff concludes that USVAF misstated 

disbursements by $2,795,679, on its originally filed reports. 

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 USVAF’s most recent reports filed prior 

to audit notification, the Audit staff also compared USVAF’s originally filed reports with 

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

to which USVAF had misstated its original filings. 

The Audit staff calculated that USVAF understated its disbursements by $2,795,679 on 

the original reports filed over the two-year period ending December 31, 2018. This 

understatement was primarily due to USVAF’s failure to disclose disbursements totaling 

$95,222 and $2,700,458 on its originally filed 2017 and 2018 disclosure reports, 
10 

respectively. The 2018 understatement of disbursements includes the $244,141 

overstatement of disbursements discussed in Finding 1 above (Misstatement of Financial 

Activity). 

B. Interim Audit Report & Audit Division Recommendation

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

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

USVAF stated that it has previously filed the necessary amended disclosure reports to 

correct the reporting errors. USVAF explained that its original 2018 July Quarterly and 

October Quarterly Reports were inadvertently uploaded without all of the corresponding 

disbursements. USVAF stated that it has implemented “processes and procedures to 

avoid similar errors in the future.”

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

deemed relevant to this matter.

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF reiterated that its 

original 2018 July Quarterly and October Quarterly Reports were inadvertently uploaded 

without all of the corresponding disbursements. USVAF stated that it has implemented 

“processes and procedures to avoid similar errors in the future.” USVAF cited its 

improved communication and document sharing with its accounting firm; and the added 

functions and technical features to its filing software to detect discrepancies between the 

software reports and the bank statements.

The Audit staff concludes that USVAF misstated disbursements by $2,795,679, on its 

originally filed reports. 

Finding 3. Disclosure of Occupation and Name of 

Employer 

Summary 

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

itemization indicated that 160 contributions totaling $40,850 lacked or inadequately 

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

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

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

“best efforts,” however, USVAF did not file amended reports to disclose and report the 

missing or inadequate information. In response to the Interim Audit Report 

recommendation, USVAF amended its disclosure reports by including or adequately 

disclosing the required occupation and/or name of employer information relating to 97 

contributions totaling $23,710. The Audit staff concludes that USVAF materially 

corrected the public record by amending its 2017 and 2018 disclosure reports to 

adequately disclose occupation and name of employer information for 97 contributions 

totaling $23,710. 
11 

Legal Standard 

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

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

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

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

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

contribution from an individual, the committee must provide the following 

information: 

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

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

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

• The amount of the contribution; and 

• The calendar year-to-date total of all contributions from the same individual. 11 

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

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

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

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

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

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

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

• All written solicitations for contributions included:

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

occupation, and name of employer; and 

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

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

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

documented oral request. 

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

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

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

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

Facts and Analysis 

A. Facts

USVAF 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. 
12 

Contributions Requiring Itemization –

Missing or Inadequate Occupation and/or Name of Employer 

Number of Contributions 160

Dollar Value of Contributions $40,850

Percent of Contributions 50%

1. Contributor Information Provided but Amendments NotFiled:

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

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

required amendments for the following: 

2. Best Efforts Documentation Not Provided: 

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

following: 

 

Best Efforts Documentation Not Provided by Committee

Number of Contributions 119

Dollar Value of Contributions $31,425

3. Additional Information:

USVAF disclosed the following unacceptable entries on Schedule A: 

• “Best Efforts” for 126 contributions totaling $30,890, and 

• Inadequate occupation and/or name of employer for 34 contributions totaling 

 $9,960. 

B. Interim Audit Report & Audit Division Recommendation

The Audit staff discussed this matter with USVAF representatives during audit 

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

errors. USVAF representatives stated during fieldwork that they were working to obtain 

the additional “best efforts” information requested to the extent it was available.

In response to the exit conference, USVAF stated that, in relation to the disclosure of 

missing information, it is “currently investigating” and will amend its disclosure reports 

9

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

 and name of employer information. 

 

Contributor Information Provided but Amendments Not Filed

Number of Contributions 419

Dollar Value of Contributions $9,425
13 

to include this information to the extent it possesses the information. In relation to the 

“best efforts” documentation, USVAF stated that it continues its investigation to obtain 

and produce “best efforts” documentation for the contributions discussed during the exit 

conference.

The Interim Audit Report recommended that USVAF amend its reports or file a Form 99 

(Miscellaneous Electronic Submission) to report and submit the occupation and/or name 

of employer information for the 160 contributions. 

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF stated that it amended 

its reports to include “...this missing information to the extent it possesses the 

information.” As for the “best efforts” documentation, USVAF “continues its 

investigation to obtain and produce “best efforts” documentation to the satisfaction of the 

FEC for contributors for whom USVAF has not received employer/occupation 

information.” 

Corrective Action Taken in Response to the Interim Audit Report

Number of Contributions 97 

Dollar Value of Amendments filed $23,710 

The Audit staff concludes that USVAF materially corrected the public record by 

amending its 2017 and 2018 disclosure reports to include this previously missing or 

inadequate occupation and name of employer information. 

Finding 4. Disclosure of Disbursements

Summary 

During audit fieldwork, the Audit staff identified 144 disbursements totaling $5,358,342 

with inadequate or inaccurate disclosure information. In response to the Interim Audit 

Report recommendation, USVAF stated that it was “...in the process of amending its 

reports to disclose accurate addresses and purposes and to address the FEC’s 

recommendation pertaining to disclosing itemized disbursements.” USVAF continued to 

deny it violated the applicable reporting requirements or that it lacked or had inadequate 

disclosure information and maintained that this information was correctly reported. 

USVAF did not correct the disclosure information for the disbursements included in this 

finding. The Audit staff concludes that USVAF’s disclosure reports continue to reflect 

inadequate or inaccurate disclosure information pertaining to disbursements totaling 

$5,358,342. 

Legal Standard 

A. Reporting Operating Expenditures. When operating expenditures to the same 

person exceed $200 in a calendar year, the committee must report the: 
14 

• Amount; 

• Date when the expenditures were made;

• Name and address of the payee; and

• Purpose (a brief description of why the disbursement was made—see below). 52 

U.S.C. §30104(b)(5)(A) and 11 CFR §104.3(b)(3)(i). 

B. Examples of Purpose. 

• Adequate Descriptions. Examples of adequate descriptions of “purpose” include 

the following: dinner expenses, media, salary, polling, travel, party fees, phone 

banks, travel expenses, travel expense reimbursement, catering costs. 11 CFR 

§104.3(b)(3)(i)(B). 

• Inadequate Descriptions. The following descriptions do not meet the requirement 

for reporting “purpose”: advance, election day expenses, expenses, other 

expenses, expense reimbursement, miscellaneous, outside services, get-out-thevote, and voter registration. 11 CFR §104.3(b)(3)(i)(B). 

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff identified 144 reported disbursements totaling 

$5,358,342 that were disclosed as payments to vendors and had inadequate or inaccurate 

disclosure. These reporting errors consisted of the following10: 

• 144 reported payments to vendors, totaling $5,358,342, disclosed addresses 

different than those appearing on the vendors’ invoices, resulting in the inaccurate 

disclosure of addresses; and

• 106 payments to vendors totaling $3,184,550 disclosed inadequate purposes. 

B. Interim Audit Report & Audit Division Recommendation 

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

representatives and provided the relevant schedules. In response to the exit conference, 

USVAF denied that it improperly disclosed disbursements to its vendors or that the 

disbursements had inadequate disclosure information, stating that the information was 

reported correctly. Additionally, USVAF submitted an attachment containing vendor 

statements summarizing invoices and payment amounts during calendar year 2018. 

According to USVAF, three vendors changed their names and addresses in August 2018 

but “the payments from USVAF to the vendors from August 2018 through December 

2018 correlate to the vendor’s invoice number and as reported.” 

The Interim Audit Report recommended that USVAF amend its reports or file a Form 99 

(Miscellaneous Electronic Submission) to correctly disclose these disbursements on 

Schedule B (Itemized Disbursements). 

10 These errors and their respective dollar value exceed the 144 errors totaling $5,358,342 because the 106

 disbursements totaling $3,184,550 for inadequate purposes also had inaccurate addresses. Each of these 

 disbursements were counted once toward the total errors. 

 
15 

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF stated it was “...in the 

process of amending its reports to disclose accurate addresses and purposes and to 

address the FEC’s recommendation pertaining to disclosing itemized disbursements.” 

Further, USVAF continued to deny it violated the applicable statute or that it lacked or 

had inadequate disclosure information and maintained that this information was correctly 

reported. USVAF stated that “The purported errors relate to accounting practices, 

specifically memo entries for payments, that § 30109(b) does not specifically address. 

The provision does not impose requirements that a committee disclose “payees” as a 

“memo entry”. To improve its processes, USVAF stated that it “will separate each wire 

transfer to the specific vendor,” so that there is one vendor payment per transfer, rather 

than multiple vendor payments per transfer. Finally, USVAF reiterated that three 

vendors changed their names and addresses in August 2018 but “the payments from 

USVAF to the vendors from August 2018 through December 2018 correlate to the 

vendor’s invoice number as reported.” 

USVAF filed amended disclosure reports in response to the Interim Audit Report 

recommendation, however, it did not correct the aforementioned disclosure errors 

pertaining to the 144 vendor payments totaling $5,358,342. The Audit staff also notes 

that the disclosure errors included in this finding did not involve any “payees, memo 

entries”, or “wire transfers” as referenced in USVAF’s response. 

The Audit staff acknowledges that USVAF’s amended disclosure reports contained 

different addresses for three of its vendors than USVAF reported previously. However, 

the addresses disclosed on the amended reports continue to appear inaccurate for the 

following reasons: 

• USVAF’s original filings disclosed an identical physical address in Las Vegas, 

Nevada for all three vendors’ transactions; 

• USVAF’s amended reports disclosed different UPS street addresses11 in states 

other than Nevada as the vendors’ addresses; 

• The documentation USVAF provided during the course of the audit demonstrates 

that the vendors’ address during the audit period was the Las Vegas, Nevada 

address; and

• USVAF did not submit any additional documentation to demonstrate that the UPS 

vendor addresses disclosed on its amended reports were the actual

contemporaneous addresses of the vendors. 

Regarding its vendors’ change of address in August 2018, USVAF stated that the vendor 

addresses could be verified by its invoices and its disclosure reports. The Audit staff 

notes that these addresses do not match the addresses on the amended disclosure reports. 

The Audit staff further notes that Commission regulations require accurate address 

reporting for each payee even if the identity of the payee is correctly disclosed per 11 

CFR §§104.3(b)(3)(i) and 104.14(d). 

11 The reported vendor addresses reflect mailbox services at three physical locations of the United Parcel 

Service known as The UPS Store.
16 

The Audit staff concludes that USVAF’s disclosure reports continue to reflect inadequate 

or inaccurate disclosure information for disbursements totaling $5,358,342. 

Finding 5. Recordkeeping for Disbursements and Use of 

Designated Depository

Summary 

During audit fieldwork, the Audit staff identified payments totaling $5,456,675, which 

USVAF made to “Usvetassistfound,” however, USVAF reported these disbursements as 

payments to vendors on its disclosure reports. USVAF did not provide any 

“Usvetassistfound” bank statements to demonstrate that these payments were 

subsequently transmitted to the disclosed vendors. In response to the Interim Audit 

Report recommendation, USVAF reiterated that the payments were made to the intended 

vendors and not to “the U.S. Veterans Assistance Foundation, LLC, nor any other entity 

or entities.” In response to the Interim Audit Report recommendation, USVAF further 

submitted the redacted bank statements obtained from four of its vendors which reflected 

84 payments totaling $2,963,742, for the period January 1, 2018 through August 9, 2018. 

However, the payments outlined on the redacted bank statements are not supporting and 

verifiable evidence that the disclosed vendors were paid with the funds transferred from 

USVAF’s bank account. USVAF provided no additional documentation for the 

remaining 63 vendor payments totaling $2,492,834. The Audit staff concludes that 

USVAF did not provide sufficient supporting and verifiable evidence that the disclosed 

vendor payments totaling $5,456,675, were made with the funds transferred from 

USVAF’s bank account. 

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. Required Records for Disbursements. For each disbursement, the treasurer of a 

political committee must keep records on the:

• Amount; 

• Date;

• Name and address of the payee;

12 

• Purpose (a brief description of why the disbursement was made—see below); and

• If the disbursement was made on behalf of a candidate, the candidate’s name and 

the office sought by the candidate. 

• If the disbursement was in excess of $200, the records must include a receipt or 

invoice from the payee, or a cancelled check or share draft to the payee. If the 

disbursement was by credit card, the record must include the monthly statement 

12 The payee is usually the person providing the goods or services to the committee. In the case of travel 

advances, however, the payee is the person receiving the advance. 11 CFR §102.9(b)(2).
17 

or customer receipt and the cancelled check used to pay the credit card bill. 52 

U.S.C. §30102(c)(5) and 11 CFR §102.9(b). 

C. Required Supporting Evidence. For any single disbursement that exceeds $200, the 

treasurer must also keep a receipt, an invoice, or a canceled check. 52 U.S.C. §30102 

(c)(5).

D. 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). 

E. Depositories. Each political committee shall designate one or more state banks, 

federally chartered depository institutions (including a national bank), or depository 

institutions, the deposits or accounts of which are insured by the Federal Deposit 

Insurance Corporation, Federal Savings and Loan Insurance Corporation, or the 

National Credit Union Administration, as its campaign depository or depositories. 

Each political committee shall maintain at least one checking account or transaction 

account at one of its depositories. 52 U.S.C. §30102(h)(1) and 11 CFR §103.2. 

F. Disbursements from the Depository. A committee shall make all disbursements by 

check or similar drafts drawn on an account at its designated campaign depository, 

except for expenditures of $100 or less made from a petty cash fund maintained 

pursuant to 11 CFR §102.11. Funds may be transferred from the depository for 

investment purposes, but shall be returned to the depository before such funds are 

used to make expenditures. 11 CFR §103.3(a). 

Facts and Analysis 

A. Recordkeeping for Disbursements

1. Facts

The Audit staff reviewed 147 payments totaling $5,456,675 that USVAF disclosed as 

payments to vendors. According to USVAF’s bank statements, however, USVAF 

made 53 ACH transfers (ACH settlements) totaling $5,456,675 to 

“Usvetassistfound.” This appears to be the US Veterans Assistance Foundation 

LLC.4 USVAF reported the disbursements as payments to vendors other than 

“Usvetassistfound” on its disclosure reports (see Finding 4); but did not provide 

“Usvetassistfound” bank statements to demonstrate that the funds transferred from 

USVAF to “Usvetassistfound” were used to pay the vendors disclosed on the reports. 

As a result, the Audit staff was unable to verify the accuracy and completeness of the 

reported activity. (See Limitations, p.1.) 

2. Interim Audit Report & Audit Division Recommendation 

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

representatives and provided relevant schedules. In response to the exit conference, 
18 

USVAF denied it violated the applicable regulations and stated that it properly 

disclosed disbursements to its vendors. 

According to USVAF: 

• The vendors’ statements presented in response to the exit conference demonstrate 

payment from USVAF “to all vendors throughout all of 2018.” 

• Three vendors changed their names and addresses in August 2018 but “the 

payments from USVAF to the vendors from August 2018 through December 

2018 correlate to the vendor’s invoice number.” 

• USVAF stated it made a single ACH wire transfer to pay for all three vendors, as 

opposed to three separate wire transfers, “because the single wire was a more cost 

effective and efficient way to transfer funds.” To support this assertion, USVAF 

submitted an attachment detailing the invoices and payment amounts for three 

vendors. 

• Lastly, USVAF acknowledged the existence of the US Veterans Assistance 

Foundation, LLC, however, it “object[s] to each of the findings that state USVAF 

LLC was the payee of certain disbursements; these payments were properly made 

to the vendors as payees.”

The Audit staff maintained that:

• USVAF did not provide sufficient and verifiable records to demonstrate that the 

vendors disclosed on the reports were paid by way of the disbursements discussed 

in this finding. USVAF’s bank statements indicate that the recipient of the ACH 

transfers was a single entity titled “Usvetassistfound.” This entity appears to be 

the US Veterans Assistance Foundation, LLC.4 USVAF only provided vendor 

statements to support that all billed amounts presented were paid. USVAF 

provided no verifiable documentation to demonstrate whether “Usvetassistfound” 

subsequently made the payments to the disclosed vendors. 

• Changes to the new names and addresses of vendors should have been reflected in 

USVAF’s amended disclosure reports. Unless such changes are disclosed, the 

public record is not accurate. 

• The US Veterans Assistance Foundation, LLC registered with the Nevada 

Secretary of State on November 20, 2017, three months after USVAF registered 

with the Commission. In addition, while the Nevada Secretary of State discloses 

the LLC’s current status as “Revoked,4” USVAF’s Treasurer, was listed as one of 

the managers of the LLC, along with two family members and, according to the 

public record, this entity was formed as a domestic limited liability company. 

The Interim Audit Report recommended that USVAF provide supporting and 

verifiable evidence, such as bank statements, that the disclosed vendors were paid 

with the funds transferred from USVAF’s bank account to the “Usvetassistfound.” 

3. Committee Response to the Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF reiterated that the 

payments were made to the intended vendors and not to “the U.S. Veterans 

Assistance Foundation, LLC, nor any other entity or entities.” USVAF stated that, 
19 

for each of the ACH wire transfers made from its designated depository, PNC, its 

banking institution labeled the transfers “ACH Settlement Vendor Usvetassistfound.” 

USVAF further stated that “...this label was created solely by PNC, and does not 

reflect payment to the US Veterans Assistance Foundation, LLC, nor to any entity or 

entities other than the intended vendors.” 

According to USVAF, “[the] labeling of the wire transfers occurred as part of the 

process by which funds were transferred directly from USVAF’s designated 

depository to the vendors in question.13” Further, USVAF stated that, “For each 

payment to a vendor, only one transfer occurred – the payment from USVAF to the 

vendor, only one transfer occurred – the payment from USVAF to the vendor, though 

it may have appeared that two transfers were being made – one from USVAF’s 

designated depository to “Usvetassistfound”... and one from “Usvetassistfound” to 

each of the vendors...” USVAF stated this was due to its bank’s “internal 

recordkeeping practice. Because this labeling process is controlled by the bank, 

USVAF’s ability to more clearly demonstrate the direct flow of funds from its 

depository to the vendors is limited.” To support its assertion, USVAF resubmitted 

vendor statements showing that all billed amounts were paid.14 In addition, USVAF 

submitted redacted bank statements obtained from its vendors15 which reflected 84 

payments from “Usvetassistfound” totaling $2,963,74216, for the period January 1, 

2018 through August 9, 2018. USVAF did not provide any additional documentation 

for the remaining 63 vendor payments totaling $2,492,834. 

USVAF objected to the Audit staff’s “continued unsupported contention” that the 

wire transfers in question went to an intermediary entity. According to USVAF, the 

Audit staff has not provided “any factual evidence or rationale” to demonstrate its 

conclusion. USVAF stated that “the Audit Division should withdraw its finding 

related to recordkeeping for disbursements and use of designated depository.” 

Based on the documentation provided, the Audit staff maintains that USVAF has not 

provided sufficient and verifiable documentation to support the 53 ACH transfers 

totaling $5,456,675 made from its account. Specifically, the Audit staff notes the 

following: 

• USVAF did not provide any documentation such as the debit memoranda or 

similar electronic receipts (discussed below), to demonstrate that the payments 

originating from its account were made directly to its vendors. 

• Resubmitted vendor statements reflecting that all billed amounts presented were 

paid, do not provide the source(s) of the funds wired to the vendors. 

13 The Audit staff notes that, irrespective of how the transactions are labeled, to utilize the ACH process to 

transfer funds, USVAF (not the bank) would have entered in the payee(s) information, including the 

payees’ names; bank account numbers; desired amounts to be transferred and the transfer date(s). 14 USVAF submitted these documents previously, in its response to the exit conference. 15 The redacted 2018 bank statements from one vendor were not applicable as USVAF made payments to 

this vendor only during calendar year 2017. 16 The Audit staff notes that one payment reflected in the vendor’s redacted bank statement was $100 less 

than the reported and invoiced amount.
20 

• According to USVAF bank statements, there were 53 ACH transfers totaling 

$5,456,675. These ACH transfers were reported on USVAF’s disclosure reports 

as 147 vendor payments of the same total amount. USVAF’s assertion that “for 

each payment to a vendor, only one transfer occurred,” is only partially supported 

by its bank statements. As outlined in the chart below, USVAF’s ACH transfers

contained one or three vendor payments per wire transfer as follows: 

# of Payments Per USVAF Bank Statements

Included Per ACH

Transfer

# of ACH

transfers Amount Paid 

One 6 182,534

Three 47 5,274,141

Totals Per Bank 53 $ 5,456,675

In six instances, the amounts transferred from USVAF’s account represented a 

single payment to one of USVAF’s vendors. In the remaining 47 instances, the 

transferred amounts contained more than one payment and were disbursed to 

more than one vendor. For those ACH transfers, USVAF’s response did not 

address the discrepancy between USVAF’s amounts reported per disclosed 

transaction and the actual amount and number of ACH transfers from its bank 

account, for which the banking institution lacks discretion apart from USVAF’s 

orders. 

• USVAF obtained and provided the redacted bank statements of three14 of its 

vendors reflecting 84 vendor payments totaling $2,963,742. The Audit staff notes 

that all vendors utilized the same financial institution and that, per the bank 

statements, all three vendors used the same physical address. As for the 84 

payments to vendors, the description of each transaction was “Usvetassistfound 

Des: Cash Disb. ID:” followed by the respective vendor’s name. USVAF did not 

explain why these payments to vendors were described on the redacted bank 

statements as cash disbursements. The chart below summarizes the number of 

payments substantiated by the redacted vendor bank statements. Between January 

1, 2018, and August 8, 201817, it appears as if the vendors received the payments 

as follows: 

17 The vendor bank statements for August 2018 did not indicate any activity beyond August 9, 2018. The 

September and October 2018 redacted vendor bank statements submitted by USVAF were blank.
21 

# of Payments 

Included Per

ACH Transfer

Per USVAF 

Bank 

Statements

Per Redacted Vendor Bank 

Statements 

# of ACH 

Transfers

# of Vendor 

Payments

Amount 

Reported

One 3 3 84,201

Three 27 81 2,879,641

Totals Per 

Vendors 30 8418 $ 2,963,84216

 

As such, USVAF demonstrated, albeit circumstantially, that these 84 payments 

appear to have reached its vendors as USVAF reported, however, USVAF did not 

provide any documentation to substantiate that these payments to vendors 

originated from its own banking institution. Similarly, the vendors’ redacted bank 

statements appear to show payments from “Usvetassistfound” but do not appear 

to reflect that the payments came directly from USVAF’s bank account.

• USVAF did not provide the vendor bank statements for the remaining 63 vendor 

payments totaling $2,492,834. The chart below summarizes the number of 

payments which were not substantiated by the vendor bank statements as follows: 

# of 

Payments 

Included Per

ACH 

Transfer

Per USVAF 

Bank 

Statements 

and Vendor 

Sheets No Documentation Provided

# of ACH 

Transfers

# of Vendor 

Payments

Amount 

Reported

One 3 3 98,333

Three 20 60 2,394,501

Totals Per 

Bank 23 63 $ 2,492,834

The Audit staff recommends USVAF provide sufficient supporting and verifiable 

evidence to demonstrate that the 53 ACH transfers resulted in the 147 vendor 

payments USVAF reported on its disclosure reports. Based on the documentation 

provided by USVAF, it appears that USVAF initiated the ACH transfers using its 

banking institution’s online banking portal, USVAF can provide, for example, a debit 

memorandum or any similar electronic transaction receipt generated during the 

process for each ACH transfer. Such documentation would include the detail 

necessary to verify that the vendor payments reported on USAVAF’s disclosure 

reports were accurate and paid via the committee’s depository, in accordance with 11 

CFR §104.14(b)(1). 

18 According to USVAF’s bank statements, USVAF made 53 ACH transfers for 84 vendor payments

totaling $5,456,675. USVAF did not provide any documentation for the remaining 23 ACH transfers 

which presumably paid 63 vendor payments totaling $2,492,834. 
22 

o Generally, to electronically initiate an ACH transfer, the 

requestor/sender would access their online bank account and initiate an 

ACH transfer. For successful processing, the following information 

would be entered; the ACH transfer date, the recipient’s name; the 

recipient’s bank routing number and account number; and the amount 

to be transferred. In USVAF’s case, this information would be 

required for all recipients (vendors) since the ACH transfers included 

up to three invoiced payments. 

o Similarly, upon completion of each ACH transfer, USVAF’s banking 

institution would issue a debit memorandum or similar electronic 

receipt, reflecting such details as dates, amounts, the collecting bank’s 

routing and account numbers, along with the name on the account. 

USVAF obtained and provided some vendor bank statements and was able to show 

that 84 payments totaling $2,963,742, made via 30 ACH transfers, reached its 

vendors. However, with regard to recordkeeping requirements, USVAF did not 

materially comply with the Audit staff’s recommendation because it did not provide 

sufficient and verifiable evidence such as, debit memorandum or similar electronic 

receipt for each ACH transfer to demonstrate that the vendor payments originated 

from the USVAF’s bank account. USVAF also did not provide any documentation 

for the remaining 63 vendors payments totaling $2,492,834 which were disbursed via 

23 ACH transfers. 

 

The Audit staff recommends that, in addition to the aforementioned transfer 

documentation, USVAF may also provide a written explanation from a bank official 

regarding how the ACH transactions appear on its monthly bank statements and how 

exactly the funds were transferred. 

The Audit staff maintains that USVAF did not provide sufficient supporting and 

verifiable evidence that the disclosed vendor payments totaling $5,456,675, were 

made with the funds transferred from USVAF’s bank account. 

B. Use of the Designated Depository

1. Facts

The Audit staff identified 147 payments totaling $5,456,675 disclosed as payments to 

vendors which, according to USVAF bank statements, were instead ACH transfers to 

“Usvetassistfound.” It appears USVAF involved this entity in its financial operations 

and failed to use its designated depository to make payments directly to the vendors. 

USVAF provided vendor statements to support that all billed amounts presented were 

paid to the vendors, however, the Audit staff was unable to verify that the funds 

USVAF transferred to “Usvetassistfound” were subsequently transmitted to 

USVAF’s disclosed vendors. 
23 

2. Interim Audit Report & Audit Division Recommendation

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

representatives. In its written response to the exit conference, USVAF did not 

address USVAF’s failure to use its designated depository to make payments to its 

vendors. 

The Interim Audit Report recommended that USVAF provide bank statements to 

support that the disclosed vendors were paid with the funds transferred from 

USVAF’s bank account to “Usvetassistfound” with the description of “ACH 

Company: USVETASSISTFOUND.” The Interim Audit Report further 

recommended that USVAF explain why its designated depository was apparently not 

used to make the direct payments to the disclosed vendors. 

3. Committee Response to the Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF disagreed with the 

Audit staff’s conclusion and maintained that the ACH transfers were made from its 

designated depository, as discussed in Part A above. 

To demonstrate that the vendor payments originated from its bank account, the Audit 

staff recommends USVAF provide sufficient supporting and verifiable evidence such 

as, debit memorandum or similar electronic receipt for each payment to demonstrate 

that the 53 ACH transfers initiated by USVAF resulted in the 147 vendor payments 

reported on its disclosure reports. USVAF may also provide a written explanation 

from a bank official regarding how the ACH transactions appear on its monthly bank 

statements and how exactly the funds were transferred. 

The Audit staff concludes that USVAF has not provided sufficient supporting and 

verifiable evidence to support that the disclosed vendors were paid with the funds 

transferred from USVAF’s bank account. 

Finding 6. Failure to File 24/48-Hour Reports

Summary 

During audit fieldwork, the Audit staff determined that USVAF untimely filed 48-hour 

reports for two independent expenditures totaling $17,000 and did not file the required 

24-hour reports for two independent expenditures totaling $15,000. In response to the 

Interim Audit Report recommendation, USVAF stated that the errors were 

“unintentional” and it has implemented processes to ensure the filing of such reports in 

the future. The Audit staff concludes that USVAF untimely filed 48-Hour Reports for 

two independent expenditures totaling $17,000 and did not file 24-Hour Reports for two 

independent expenditures totaling $15,000. 

Legal Standard 

A. Definition of Independent Expenditures. The term “independent expenditure” 

means an expenditure by a person for a communication expressly advocating the 
24 

election or defeat of a clearly identified candidate that is not made in coordination 

with any candidate or authorized committee or agent of a candidate. 11 CFR 

§100.16(a). 

B. Itemization of Independent Expenditures. When independent expenditures to the 

same person exceed $200 in a calendar year, the committee must report on Schedule 

E the:

• Amount of the expenditures; 

• Date when the expenditures were made;

• Name and address of the payee; and

• Purpose of the expenditures. 52 U.S.C. §30104(b)(5)(A) and 11 

CFR§104.3(b)(3)(vii).

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

be disclosed as “memo” entries on Schedule E and as a reportable debt on Schedule 

D. Independent expenditures of $200 or less do not need to be itemized, though the 

committee must report the total of those expenditures online (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 for each 

additional $1,000 that aggregates. The 24-hour report must be filed on a stand-alone 

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). 

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 be disclosed within 48 

hours each time 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 stand-alone 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). 

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff reviewed five disbursements totaling $40,000 that 

USVAF disclosed on Schedule E (Itemized Independent Expenditures). According to 
25 

USVAF’s disclosure reports, which included the corresponding dissemination dates, 

these expenditures were for billboards, mailers, signs, social media and campaign 

advertising service and administration. USVAF provided the Audit staff with its media 

vendor’s “Proposed Marketing Plan” (the Plan) and the associated invoices to 

demonstrate that the communications described in the Plan were the same 

communications USVAF paid for and subsequently self-reported as independent 

expenditures. The Audit staff determined that four of these independent expenditures, 

totaling $32,000, required the filing of 24/48-Hour Reports. Specifically, USVAF 

untimely filed 48-Hour Reports for two expenditures totaling $17,000 and did not file 24-

Hour Reports for two expenditures totaling $15,000. 

B. Interim Audit Report & Audit Division Recommendation 

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

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

USVAF stated that it inadvertently failed to file these reports. USVAF stated that these 

errors were unintentional and explained that it has implemented a process to track and 

correctly report independent expenditures to ensure that required 24/48-Hour Reports are 

filed.

The Interim Audit Report recommended that USVAF provide copies of the previously 

requested communications and the corresponding documentation to support the public 

dissemination date for each communication to demonstrate that the filing of 24/48-Hour 

Reports was not required. Absent such documentation, the Interim Audit Report 

recommended that USVAF provide any additional comments it deemed necessary with 

respect to this matter.

C. Committee Response to Interim Audit Report

In response to the Interim Audit Report recommendation, USVAF acknowledged it 

inadvertently failed to file the required 24/48-Hour Reports. USVAF stated that: “At that 

time, the reporting team and USVAF were establishing the appropriate protocols and 

processes to track and correctly report the independent expenditures.” Additionally, 

USVAF indicated that, “Both errors were unintentional and the current process will 

ensure that all required 24-hour or 48-hour reports are filed.”

The Audit staff concludes that USVAF untimely filed 48-Hour Reports for two 

independent expenditures totaling $17,000 and did not file 24-Hour Reports for two 

independent expenditures totaling $15,000.