Interim Audit Report of the 

Audit Division on the 

Ambulatory Surgery Center 

Association PAC (ASCAPAC) 

(January 1, 2015 – December 31, 2016) 

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)

The Ambulatory Surgery Center Association PAC (ASCAPAC) 

is a separated segregated fund- trade association. It qualified for 

multi-candidate status and is headquartered in Alexandria, 

Virginia. For more information, see the chart on the Committee 

Organization, p 2. 

Financial Activity (p. 2)

 Receipts

o Contributions from Individuals 

o Contributions from Other 

Political Committees 

o Offsets to Operating 

Expenditures 

o Refund of Contribution Made to 

Federal Candidates 

Total Receipts

$ 361,090 

11,322 

1,481 

1,000 

$ 374,893 

 Disbursements

o Contributions to Federal 

Candidates/Committees 

o Transfers to Affiliated 

Committees 

o Operating Expenditures 

o Refunds of Contributions to 

Individuals 

Total Disbursements

$ 269,000 

14,872 

6,618 

1,850 

$ 292,340 

Findings and Recommendations (p. 3) 

 Misstatement of Financial Activity (Finding 1) 

 Receipt of Prohibited Contributions (Finding 2) 

 Recordkeeping for Receipts (Finding 3) 

 Disclosure of Receipts (Finding 4) 

 Untimely Deposit of Receipts (Finding 5) 

 

1

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

Division on the 

Ambulatory Surgery Center 

Association PAC (ASCAPAC) 

(January 1, 2015 – December 31, 2016) 
Table of Contents 

 Page

Part I. Background 

 Authority for Audit 1 

 Scope of Audit 1 

 Limitations 1 

Part II. Overview of Committee 

Committee 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. Receipt of Prohibited Contributions 6

Finding 3. Recordkeeping for Receipts 9

Finding 4. Disclosure of Receipts 11

Finding 5. Untimely Deposit of Receipts 12
 1

 

Part I 

Background 

Authority for Audit 

This report is based on an audit of the Ambulatory Surgery Center Association PAC 

(ASCAPAC), undertaken by the Audit Division of the Federal Election Commission (the 

Commission) in accordance with the Federal Election Campaign Act of 1971, as 

amended (the Act). The Audit Division conducted the audit pursuant to 52 U.S.C. 

§30111(b), which permits the Commission to conduct audits and field investigations of 

any political committee that is required to file a report under 52 U.S.C. §30104. Prior to 

conducting any audit under this subsection, the Commission must perform an internal 

review of reports filed by selected committees to determine if the reports filed by a 

particular committee meet the threshold requirements for substantial compliance with the 

Act. 52 U.S.C. §30111(b). 

Scope of Audit 

Following Commission-approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. the receipt of excessive contributions; 

2. the receipt of contributions from prohibited sources; 

3. the disclosure of contributions received; 

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

5. the disclosure of contributions to candidate committees; 

6. the consistency between reported figures and bank records; 

7. the completeness of records; and 

8. other committee operations necessary to the review. 

Limitations 

ASCAPAC did not comply with the recordkeeping requirements, 11 CFR §§ 102.9 and 

104.14(b)(1), which require committees to maintain a copy of contributor checks in 

excess of $50 and to keep an account of all contributions received by or on behalf of the 

political committee. Under the dual attribution rule for partnerships, the contribution is 

attributable to the partnership, and to each individual partner as specified by the 

contributing partnership (11 CFR § 110.1(e)). The lack of contributor checks and the 

attribution information for each partner for contributions from partnerships, limited the 

Audit staff’s testing of all contributions received via credit card or check that may have 

exceeded the limits. Likewise, the Audit staff was not able to verify the accuracy of 

disclosure information for and the permissibility of contributions received via check or 

credit card due to the lack of the aforementioned records. (See Findings 3 and 4). 
 2 

Part II 

Overview of Committee 

Committee Organization 

Overview of Financial Activity 

(Audited Amounts) 

Cash-on-hand @ January 1, 2015 $ 118,102 

Receipts 

o Contributions from Individuals 361,090 

o Contributions from Other Political 

Committees 

11,322 

o Offsets to Operating Expenditures 1,481 

o Refund of Contribution Made to Federal 

Candidates 

1,000 

Total Receipts $ 374,893 

Disbursements 

o Contributions to Federal 

Candidates/Committees 

269,000 

o Transfers to Affiliated Committees 14,872 

o Operating Expenditures 6,618 

o Refunds of Contributions to Individuals 1,850 

Total Disbursements $ 292,340

Cash-on-hand @ December 31, 2016 $ 200,655 

Important Dates 

 Date of Registration May 25, 2006 

 Audit Coverage January 1, 2015 – December 31, 2016 

Headquarters Alexandria, VA 

Bank Information 

 Bank Depositories Two 

 Bank Accounts Two checking 

Treasurer 

 Treasurer When Audit Was Conducted John Greenwich 

 Treasurer During Period Covered by Audit John Greenwich 

October 1, 2013 - Present 

Management Information 

 Attended FEC Campaign Finance Seminar Yes 

 Who Handled Accounting and 

Recordkeeping Tasks 

Paid Staff 
 3

 

Part III 

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

During audit fieldwork, a comparison of ASCAPAC’s reported activity with bank records 

revealed a misstatement of receipts for calendar year 2015. ASCAPAC understated its 

receipts by $16,834. The Audit staff recommends that ASCAPAC amend its disclosure 

reports to correct the misstatement. (For more detail, see p. 4.) 

Finding 2. Receipt of Prohibited Contributions

During audit fieldwork, a review of contributions from individuals revealed that 

ASCAPAC received 102 contributions totaling $93,023 from apparent prohibited 

sources. The Audit staff recommends, absent evidence that these contributions were 

made with permissible funds, ASCAPAC refund these contributions to the contributors or 

disgorge the contributions to a government agency or eligible charitable organization. 

(For more detail, see p. 6.) 

Finding 3. Recordkeeping for Receipts 

During Audit fieldwork, the Audit staff reviewed records provided by ASCAPAC and 

determined that ASCAPAC did not maintain adequate documentation for receipts totaling 

$67,108. Of this amount, ASCAPAC did not maintain check copies for contributions 

totaling $6,378, and did not maintain the attribution information for each partner, for 

contributions totaling $60,730. The Audit staff recommends that ASCAPAC provide the 

missing records and submit any comments it deems necessary. (For more detail, see p. 

9.) 

Finding 4. Disclosure of Receipts 

During audit fieldwork, the Audit staff identified 154 contributions totaling $197,571 that 

were missing the required disclosure information. The Audit staff recommends that 

ASCAPAC amend its disclosure reports to correctly disclose these transactions on 

Schedule A (Itemized Receipts), and provide any other comments it deems necessary. 

(For more detail, see p. 11.) 

Finding 5. Untimely Deposit of Receipts 

During audit fieldwork, the Audit staff determined that ASCAPAC did not deposit 106 

contributions totaling $84,333 within 10 days of receipt. The Audit staff recommends 

that ASCAPAC provide evidence demonstrating that the contributions in question were 

deposited timely or submit any additional comments it deems relevant to this matter. 

(For more detail, see p. 12.) 
 4

 

Part IV 

Findings and Recommendations

Finding 1. Misstatement of Financial Activity 

Summary 

During audit fieldwork, a comparison of ASCAPAC’s reported activity with bank records 

revealed a misstatement of receipts for calendar year 2015. ASCAPAC understated its 

receipts by $16,834. The Audit staff recommends that ASCAPAC amend its disclosure 

reports to correct the misstatement.

Legal Standard 

Contents of (Federal) 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), (5), (6), 

and (7). 

Facts and Analysis 

A. Facts 

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

activity with its bank records for calendar years 2015 and 2016. The reconciliation 

revealed that ASCAPAC misstated its receipts in 2015. The following chart details the 

discrepancies between ASCAPAC’s disclosure reports and bank activity. The 

succeeding paragraphs explain why the discrepancies occurred. 

2015 Committee Activity 

Reported Bank Records Discrepancy 

Beginning Cash-Balance @ 

January 1, 2015 

$ 121,494 $ 118,102 $3,392 

Overstated 

Receipts $ 176,749 $ 193,583 ($16,834) 

Understated 

Disbursements $ 124,490 $ 133,412 ($8,922) 

Understated 

Ending Cash-Balance @ 

December 31, 2015 

$ 173,753 $ 178,273 ($4,520) 

Understated 

The beginning cash balance was overstated by $3,392. The Audit staff identified a 

discrepancy of $2,500 due to a disbursement check that cleared the bank in 2014, but was 
 5

 

not reported until 2015. The remaining $892 is the result of period reporting 

discrepancies. 

The understatement of receipts resulted from the following: 

 Trade Association funds erroneously deposited in the Federal 

account, not reported (See explanation below) + 11,560 

 Contributions from individuals, not reported + 5,000 

 Contributions from individuals reported, not supported 

by bank deposits - 500 

 Offset to operating disbursements not reported + 95 

 Unexplained difference + 679 

Net Understatement of Receipts $ 16,834 

The $4,520 understatement of the ending cash balance was a result of the reporting 

discrepancies described above as well as various reporting discrepancies for 

disbursements. 

ASCAPAC deposited checks from individuals and offsets to operating expenditures 

totaling $11,5602 that were either dues to the Ambulatory Surgery Association, 

donations to their advocacy fund, or offsets to the Ambulatory Surgery Association. 

These erroneously deposited checks were not reported, as well as the transfers to 

accounts not related to ASCAPAC. 52 U.S.C. §30104(b)requires that all receipts and 

disbursements be reported and as such, both the receipt of these funds and the subsequent 

transfers are required to be reported. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed the misstatement of the 2015 receipts at the exit conference and 

provided ASCAPAC representatives with schedules detailing the misstated activity. In 

response to the exit conference, ASCAPAC representatives stated that the unreported 

activity consisted of receipts that were deposited to the ASCAPAC account in error, and 

were later transferred out of the ASCAPAC account. ASCAPAC representatives further 

stated that they would amend the disclosure reports to include this activity. 

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

ASCAPAC amend its 2015 disclosure reports to correct the misstatements noted above. 

In addition, the Audit staff recommends that ASCAPAC reconcile the cash balance on its 

most recently filed disclosure report to account for the recommended adjustments and 

identify any subsequent discrepancies, as necessary. 

 

2

 ASCAPAC is in the process of closing the checking account that received $2,500 of these funds intended 

for the advocacy fund and are transferring these funds to a non-ASCAPAC bank account. The remaining 

$9,060 erroneously deposited receipts were transferred out of the ASCAPAC checking account. 
 6

 

Finding 2. Receipt of Prohibited Contributions 

Summary 

During audit fieldwork, a review of contributions from individuals revealed that 

ASCAPAC received 102 contributions totaling $93,023 from apparent prohibited 

sources. The Audit staff recommends, absent evidence that these contributions were 

made with permissible funds, ASCAPAC refund these contributions to the contributors or 

disgorge the contributions to a government agency or eligible charitable organization. 

Legal Standard 

A. Receipt of Prohibited Contributions General Prohibition. Candidates and 

committees may not accept contributions (in the form of money, in-kind contributions 

or loans): 

1. In the name of another; or 

2. From the treasury funds of the following prohibited sources: 

 Corporations (this means any incorporated organization, including a non-stock 

corporation, an incorporated membership organization, and an incorporated 

cooperative); 

3. Federal Government Contractors (including partnerships, individuals, and sole 

proprietors who have contracts with the federal government); and 

4. Foreign Nationals (including individuals who are not U.S. citizens and not 

lawfully admitted for permanent residence; foreign governments and foreign 

political parties; and groups organized under the laws of a foreign country or 

groups whose principal place of business is in a foreign country, as defined in 22 

U.S.C. §611(b). 52 U.S.C. §§30118, 30119, 30121, and 30122. 

B. Receipt of Prohibited Corporate Contributions. Political committees may not 

accept contributions from the general treasury funds of corporations. This prohibition 

applies to any type of corporation including a non-stock corporation, as incorporated 

membership organization, and an incorporated cooperative. 52 U.S.C. §30118. 

C. Definition of Limited Liability Company. A limited liability company (LLC) is a 

business entity recognized as an LLC under the laws of the State in which it was 

established. 11 CFR §110.1(g)(1). 

D. Application of Limits and Prohibition to LLC Contributions. A contribution 

from an LLC is subject to contribution limits and prohibitions, depending on several 

factors, as explained below: 

1. LLC as Partnership. The contribution is considered a contribution from a 

partnership if the LLC chooses to be treated as a partnership under Internal 

Revenue Service (IRS) tax rules, or if it makes no choice at all about its tax status. 

A contribution by partnership is attributed to each partner by his or her share of 

the partnership profits. 11 CFR §110.1 (e)(1) and (g)(2). 

2. LLC as Corporation. The contribution is considered a corporate contribution-and 

is barred under the Act-if the LLC chooses to be treated as a corporation under 

IRS rules, or if its shares are traded publicly. 11 CFR § 110.1(g)(3). 
 7

 

3. LLC with Single Member. The contribution is considered a contribution from a 

single individual if the LLC is a single-member LLC that has not chosen to be 

treated as a corporation under IRS rules. 11 CFR §110.1 (g)(4). 

E. Limited Liability Company’s Responsibility to Notify Recipient Committee. At 

the time it makes a contribution, an LLC must notify the recipient committee: 

 That it is eligible to make the contribution; and 

 In the case of an LLC that considers itself a partnership (for tax purposes), how 

the contribution should be attributed among the LLC’s members. 11 CFR 

§110.1(g)(5). 

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

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

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

procedures below: 

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

committee must either: 

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

 Deposit the contribution (and follow the steps below). 11 CFR 

§103.3(b)(1). 

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

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

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

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

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

may be prohibited and must include this information when reporting the 

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

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

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

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

statement from the contributor explaining why the contribution is legal or an 

oral explanation that is recorded by the committee in a memorandum. 11 CFR 

§103.3(b)(1). 

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

 Confirm the legality of the contribution; or 

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

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

Facts and Analysis 

A. Facts

During audit fieldwork, the Audit staff identified contributions that appeared to be from 

prohibited sources. The following chart details the source of these receipts.
 8

 

Apparent Prohibited Contributions 

Type of Review 100% 

Contributions from Limited Liability Companies $75,462 

Contributions from Corporations $16,412 

Contributions from Professional Limited Liability Companies $649 

Contributions from Limited Liability Partnerships $5003

Total of Prohibited Contributions $93,023 

B. Additional Information: 

For contributions from corporations, the Audit staff verified the corporate status of the 

entities, as of the date of the contribution, with the applicable Secretary of State offices. 

For contributions from Limited Liability Company (LLC) and Limited Liability 

Partnerships (LLP), ASCAPAC provided documentation for $44,194 stating whether the 

company/partnership elected to be treated as a partnership or corporation for tax 

purposes. For the remaining $31,768 from LLCs and LLPs, ASCAPAC did not provide 

documentation stating how the company/partnership elected to be treated. 

ASCAPAC did not provide the tax status information for contributions totaling $40,214. 

For the remaining contributions totaling $52,809, the tax status documentation provided 

showed these contributions were from entities that elected to be treated as a corporation. 

The Audit staff verified the corporate status with the appropriate Secretaries of State for 

all corporations contributing an aggregate amount of $16,412 to ASCAPAC. 

ASCAPAC did not maintain a separate account for questionable contributions. However, 

ASCAPAC did maintain a sufficient balance in its bank account to make refunds of the 

apparent prohibited contributions. 

The contributions originated primarily from surgery centers that were members of the 

Ambulatory Surgery Center Association.

C. Interim Audit Report & Audit Division Recommendation 

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

conference and provided a schedule of the apparent prohibited contributions identified 

during the review. ASCAPAC representatives stated that the committee “continues to 

conduct an extensive, multimodal effort to collect documentation of the tax filing 

status...” and have provided additional information regarding the eligibility of the 

contributions received to the Audit staff. In addition, they stated that ASCAPAC is in the 

process of issuing refunds and will provide details once the refund process is completed. 

ASCAPAC representatives further stated: “...the Committee accepted contributions from 

LLCs based on the understanding of the following points: 

 

3

 This was a single contribution from a partnership where both partners were incorporated entities. 
 9

 

1. An ASC [Ambulatory Surgery Center], by definition, is owned wholly or 

in part by a single physician or partnership of physicians, and as such 

represents an inherently permissible donor under FEC rules and regulations. 

2. FEC guidance consistently informs Committees that the contributing LLC is 

the party affirmatively responsible for notifying the Committee of donor 

eligibility status. The Committee objects to any assertion by the Audit staff that 

this affirmative duty somehow rests with it as the recipient PAC. Likewise, the 

Committee rejects any allegation by the Audit staff that the PAC's staff did 

anything other than seek full compliance with the "best efforts" obligations set 

forth in FEC rules and regulations, the Campaign Guide for Corporate and Labor 

Organizations, and other applicable Commission guidance.” 

The Audit staff notes that although the contributor is responsible for providing eligibility 

of its contribution, 11 CFR §103.3(b) states that it is the treasurer’s responsibility to 

ensure that all contributions are lawful and to maintain a record of documentation to that 

effect. According to the best efforts provisions in 11 CFR §103.3(b), ASCAPAC did not 

demonstrate best efforts because it did not provide statements from the business entities 

attesting to the legality of their contributions or refund the potentially prohibited 

contributions. 

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

ASCAPAC: 

 Provide documentation demonstrating that the apparent prohibited contributions 

totaling $93,023 were made with permissible funds or were timely resolved. This 

documentation should include records that were not made available to the Audit 

staff during the audit, including tax status information provided by the 

contributors, or timely refunds (copies of the front and back of negotiated refund 

checks). 

 Absent documentation that the funds were permissible or were timely resolved, 

ASCAPAC must refund these apparent prohibited contributions to the 

contributors or disgorge them to a governmental entity or to a qualified charitable 

organization.4

 ASCAPAC should provide proof of any refunds and/or 

disgorgement by providing the front and back of the negotiated refund checks. 

 If funds are not available to make the necessary refunds or disgorgement, 

ASCAPAC should disclose the contributions requiring refunds on Schedule D 

(Debts and Obligations) until funds become available to make such refunds. 

Finding 3. Recordkeeping for Receipts 

Summary 

During Audit fieldwork, the Audit staff reviewed records provided by ASCAPAC and 

determined that ASCAPAC did not maintain adequate documentation for receipts totaling 

$67,108. Of this amount, ASCAPAC did not maintain check copies for contributions 

 

4

 See 26 U.S.C §170(c). 
 10

 

totaling $6,378, and did not maintain the attribution information for each partner, for 

contributions totaling $60,730. The Audit staff recommends that ASCAPAC provide the 

missing records and submit any comments it deems necessary. 

Legal Standard 

A. Recordkeeping. Political committees must keep records of:

 All contributions received by or on behalf of the committee; 

 The name and address of any person who makes a contribution in excess of $50, 

together with the date and amount of the contribution; and 

 The occupation and name of employer of any individual whose contributions 

aggregate more than $200 during a calendar year, together with the date and 

amount of any such contributions. 52 U.S.C. §30102(c) and 11 CFR §102.9(a). 

B. Retention of Check Copies. For contributions in excess of $50, committees must 

maintain a photocopy or digital image of the check or written instrument. 11 CFR 

§102.9(a)(4). 

C. Maintaining Records. Committees must maintain records that provide in sufficient 

detail the necessary information and data from which filed reports may be verified 

and checked for accuracy and completeness. 11 CFR §104.14(b)(1). 

D. Preserving Records and Copies of Reports. Committees must preserve these 

records for 3 years after a report is filed. 52 U.S.C. §30102(d). 

E. Dual Attribution Rule for Partnerships. Contributions from business entities 

should provide information pertaining to the proportion of the contribution 

attributable to each partner. Contributions from partnerships are both attributable to 

the partnership, and to each individual partner as specified by the contributing 

partnership. 11 CFR §110.1(e) and 52 Fed. Reg. 760, 764-765 (Jan. 9, 1987). 

Facts and Analysis 

A. Facts 

The Audit staff’s review of all contribution records indicated that ASCAPAC failed to 

maintain copies of contribution checks or other written instruments for contributions over 

$50 totaling $6,378. Furthermore, contributions from business entities totaling $60,730 

were not annotated with the attribution information for each partner. The total missing 

contributions checks and attributions total $67,108 and represent 19% of the total 

contributions received from individuals that require record retention. By not retaining the 

required checks and attributions, ASCAPAC did not comply with the aforementioned 

regulations pertaining to the recordkeeping requirements. 

Audit staff requested the missing records from ASCAPAC. ASCAPAC representatives 

stated that they did not maintain these records. However, during audit fieldwork, they 

reached out to the contributing entities and requested the attribution information. The 
 11

 

Audit staff notes that ASCAPAC’s database did contain the attribution information for 

each partner, however, the review of subsequent responses from the contributing entities 

indicated that the information recorded in the database and reported by ASCAPAC, was 

incorrect. 

As a result of the missing records, the Audit staff was unable to verify the attribution to 

each partner from partnerships. (See Limitations, p. 1.) 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed the missing records with ASCAPAC representatives at the exit 

conference and provided schedules detailing the missing records. ASCAPAC 

representatives again stated that they did not maintain original records documenting 

partnership attributions, however, after the beginning of fieldwork, partnership 

attributions were requested from all of the business entities that made contributions. 

ASCAPAC provided the Audit staff with attribution records after the exit conference.5 

ASCAPAC representatives further stated that ASCAPAC will amend their disclosure 

reports to reflect the updated information. 

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

ASCAPAC provide the requested attribution records. ASCAPAC should develop and 

implement a plan to obtain and maintain records as the law requires, for the partners to 

whom a partnership’s contribution is attributed. Additionally, the Audit staff 

recommends that ASCAPAC submit any comments it deems relevant to this matter. 

Finding 4. Disclosure of Receipts 

Summary 

During audit fieldwork, the Audit staff identified 154 contributions totaling $197,571 that 

were missing the required disclosure information. The Audit staff recommends that 

ASCAPAC amend its disclosure reports to correctly disclose these transactions on 

Schedule A (Itemized Receipts), and provide any other comments it deems necessary. 

Legal Standard 

Required Information for Contributions. For each itemized contribution, 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 (for individual 

contributors); 

 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). 

 

5

 Totals in the Facts section reflect these records received. 
 12

 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff identified 154 contributions reported on Schedule 

A totaling $197,571 that were missing or lacked the required disclosure information. 

These reporting errors consisted of the following6

: 

 78 contributions from individuals, partnerships, and companies totaling $82,852 

that incorrectly disclosed the contributors’ name; 

 70 contributions from individuals and business entities totaling $55,993 that 

incorrectly disclosed the contribution dates; and 

 53 contributions from partnerships totaling $109,532 that incorrectly disclosed the 

partnership attribution for the contributions. 

The Audit staff was not able to verify disclosure information for 89 contributions totaling 

$60,730 from business partnerships due to the lack of records showing each partner’s 

attribution.7

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed the disclosure items at the exit conference and provided 

schedules of contributions disclosed incorrectly. ASCAPAC representatives stated that 

they would amend the reports to reflect information received from donors. 

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

ASCAPAC amend its disclosure reports to correctly disclose these contributions on 

Schedule A, and provide any other comments it deems necessary. 

Finding 5. Untimely Deposit of Receipts 

Summary 

During audit fieldwork, the Audit staff determined that ASCAPAC did not deposit 106 

contributions totaling $84,333 within 10 days of receipt. The Audit staff recommends 

that ASCAPAC provide evidence demonstrating that the contributions in question were 

deposited timely or submit any additional comments it deems relevant to this matter. 

Legal Standard 

A. Deposit of Receipts. The treasurer of a political committee must deposit 

contributions (or return them to the contributors without being deposited) within 10 

days of the treasurer’s receipt of the contribution. 11 CFR §103.3(a). 

B. Receipt of Contributions. Every person who receives a contribution for an 

authorized political committee shall, no later than 10 days after receipt, forward such 

contribution to the treasurer. If the amount of the contribution is in excess of $50, 

 

6

 These three groups of errors and their respective dollar value exceed the amount of total errors of 154 

totaling $197,571 because 47 contributions totaling $50,806 had multiple disclosure errors. Each 

contribution was counted once toward the total errors, even if there were multiple errors. 7

 See Limitations, p. 1. 
 13

 

such person shall also forward to the treasurer the name and address of the contributor 

and the date of receipt of the contribution. If the amount of the contribution is in 

excess of $200, such person shall forward the contribution, the identification of the 

contributor in accordance with 11 CFR §100.12, and the date of receipt of the 

contribution. Date of receipt shall be the date such person obtains possession of the 

contribution. 52 U.S.C. §30102(b)(2) and 11 CFR §102.8(b). 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff reviewed available contribution records and 

identified 106 contributions totaling $84,333 which ASCAPAC did not deposit within 10 

days. This amount represents 23% of the total contributions from individuals. 

The Audit staff compared the reported receipt dates8 to the deposit dates and determined 

that it took ASCAPAC, on average, 22 days to deposit these contributions. The untimely 

deposit of contributions ranged from a minimum of 14 days to a maximum of 74 days.9 

 

B. Interim Audit Report & Audit Division Recommendation 

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

conference and provided schedules detailing the untimely deposited contributions. 

ASCAPAC representatives did not provide any comments related to this matter at that 

time. 

In response to the exit conference, ASCAPAC representatives stated that ASCAPAC’s 

policy is to deposit all checks within 10 days of receipt. The representatives stated that 2 

items on the list were erroneous deposits and therefore are not subject to the 10-day 

deposit regulation. The Audit staff notes that all deposits must be made within 10 days of 

the Committee’s receipt according to 11 CFR § 103.3(a), regardless of whether or not 

they were made in error. 

In addition, other contributions were received by their compliance consultant and were 

deposited to a credit card holding account. ASCAPAC classified that account, “as a cash 

account on the Committee’s ledger and the funds were received on the date that the donor 

initiated the credit card charge.” ASCAPAC further stated that those funds were 

subsequently credited to ASCAPAC’s checking account and should not be considered 

untimely deposited. The Audit staff notes that the funds in the credit card holding 

account were not accessible by ASCAPAC staff until they were deposited to its checking 

account. Therefore, the Audit staff considers these credit card contributions not 

deposited timely. 

 

8

 The Audit staff verified the date reported on the disclosure reports was the date received stamped in the 

contributor records. The Audit staff used the date of the check or the credit card merchant received date 

to determine timeliness for contributions with no date stamp. 9

 Of these untimely deposited contributions, 70 contributions totaling $55,993 were not disclosed with the 

correct date on the disclosure reports. See Finding 4, p. 11. 
 14

 

ASCAPAC representatives further stated that they do not consider the remaining items on 

the list to be deposited untimely, however, they do not have documentation of the receipt 

date. However, to comply with the 10-day deposit regulation in the future, ASCAPAC 

has implemented a procedure where all contributions are date stamped upon receipt in 

order to ensure that the date of receipt is documented. 

In accordance with 11 CFR § 102.8(a), such a procedure should help ensure that the date 

of receipt is documented and is the date ASCAPAC obtains possession of the 

contribution. ASCAPAC should then ensure that its deposit is made within 10 days of 

receiving a contribution to comply with 11 CFR § 103.3(a). Finally, ASCAPAC should 

ensure that the recorded receipt day is accurately reflected on its disclosure reports. 

 

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

ASCAPAC provide documentation demonstrating that the contributions in question were 

deposited timely. Further, the Audit staff recommends that ASCAPAC clarify whether 

the credit card holding account was its own depository. Finally, the Audit staff 

recommends that ASCAPAC submit any comments it deems relevant to this matter.