[Federal Register: January 9, 2007 (Volume 72, Number 5)]
[Rules and Regulations]
[Page 887-889]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ja07-2]
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FEDERAL ELECTION COMMISSION
11 CFR Part 104
[Notice 2006--23]
Statement of Policy: ``Purpose of Disbursement'' Entries for
Filings With the Commission
AGENCY: Federal Election Commission.
ACTION: Statement of Policy.
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SUMMARY: Political committees and other persons required to file
campaign finance reports with the FEC must itemize certain
disbursements and, for each itemized disbursement, must provide
information including a brief description of the purpose of the
disbursement. The ``purpose of disbursement'' entry, when considered
along with the identity of the disbursement recipient, must be
sufficiently specific to make the purpose of the disbursement clear.
The guidance below includes a non-exhaustive list of ``purpose of
disbursement'' entries that are generally acceptable, and a non-
exhaustive list of terms that are generally not acceptable.
DATES: Effective as of January 9, 2007.
FOR FURTHER INFORMATION CONTACT: Richard T. Ewell, Attorney, 999 E
Street, NW., Washington, DC 20463, (202) 694-1650 or (800) 424-9530, or
Debbie Chacona, Branch Chief, Party/Non-Party Branch, Reports Analysis
Division, 999 E Street, NW., Washington, DC 20463, (202) 694-1130 or
(800) 424-9530.
SUPPLEMENTARY INFORMATION: Political committees and other persons
required to file campaign finance reports with the FEC must itemize
certain disbursements and, for each itemized disbursement, must provide
the full name and address of the recipient, the date the disbursement
was made, and a brief statement or description of why the disbursement
was made. See 2 U.S.C. 434(b); 11 CFR 104.3(b)(3) and (4),
104.10(b)(4), 104.17(b)(3) and 300.36(b)(2)(iii). The ``purpose of
disbursement'' entry, when considered along with the identity of the
disbursement recipient, must be sufficiently specific to make the
purpose of the disbursement clear. 11 CFR 104.3(b)(3)(i)(B) and
(4)(i)(A). The Commission's regulation requiring a description of the
purpose of each itemized disbursement includes examples of descriptions
that are acceptable (e.g., ``dinner expenses,'' ``salary,'' ``travel
expenses'') and examples that are unacceptable (e.g., ``advance,''
``miscellaneous''). Neither list is exhaustive.
The Commission solicited comments on a draft of this policy
statement on November 2, 2006. Two comments were received. After
reviewing the comments received, the Commission has decided to publish
the policy statement with one change. As suggested by a commenter, the
Commission has added ``Consulting-Political'' to the examples of
generally insufficient descriptions. In light of this change, the
Commission has also added examples of descriptions that would be
generally sufficient, such as ``Consulting-Media,'' ``Consulting-
Fundraising,'' ``Consulting-Polling,'' ``Consulting-Legal'' and
``Consulting-Get-Out-The-Vote.''
The Commission recognizes that the ``purpose of disbursement''
entries, when linked to information provided about the recipient of the
payment, may provide sufficient disclosure. For example, a disbursement
to an office supply vendor for the stated purpose of ``Supplies''
provides adequate and acceptable disclosure, while a disbursement to a
committee staff member for the same purpose of ``Supplies'' would
likely trigger a
[[Page 888]]
request for a more complete description of the purpose of the
disbursement. In the former case, it is obvious to the reader what type
of supplies were purchased, while in the latter case, it is not.
As a rule of thumb, filers should consider the following question:
``Could a person not associated with the committee easily discern why
the disbursement was made when reading the name of the recipient and
the purpose?'' For example, a person not associated with the committee
could not easily discern the purpose of a disbursement made to a vendor
for ``Consulting'' (unless the vendor's name makes the purpose clear,
e.g., Smith Fundraising Consulting, Inc.). As discussed above, however,
if the committee were to provide additional detail with respect to the
type of consulting the vendor provided (e.g., ``Fundraising
Consulting''), an unassociated person would have no difficultly
discerning the purpose of the disbursement.
All information on campaign finance reports submitted to the FEC,
including the entries for ``purpose of disbursement,'' are reviewed by
analysts in the Reports Analysis Division (RAD). Some campaign finance
reports, particularly those filed by presidential campaign committees
accepting public funding, are also reviewed by auditors in the Audit
Division. In practice, the RAD analysts and the auditors often
encounter ``purpose of disbursement'' entries that are not listed in
the examples contained in 11 CFR 104.3(b)(3) and (4), and receive
questions from filers regarding acceptable descriptions. Therefore, in
order to provide further guidance to filers and to encourage
consistency between filers, the Commission is publishing lists of
additional generally acceptable and generally unacceptable
descriptions.
The Commission does not intend to request that a committee provide
additional information about a purpose of disbursement entry if the
committee uses those descriptions listed below as providing sufficient
detail. However, if a committee uses a description that is listed as
lacking sufficient detail, a RAD analyst may review the report more
closely but the Commission would not automatically take any particular
action. In most instances, the Commission will merely contact the
reporting committee and the committee may then amend its report. In the
rare circumstances in which the Commission deems it necessary to pursue
the matter further, the Commission will conduct a separate review of
the sufficiency of the description of purpose to determine whether it
meets the requirements of 11 CFR 104.3(b).
Any future revisions to these lists will be posted on the
Commission's Web site at http://www.fec.gov/law/policy.shtml.
Committees with questions can contact either their assigned RAD analyst
(phone: (800) 424-9530 (press 5)) or the FEC Information Division
(phone: (800) 424-9530 (press 6); e-mail: info@fec.gov).
Descriptions of purpose that provide sufficient detail:
``Salary'' for a disbursement to a staff member.
``Media'' for a disbursement to a television or radio
communication company.
``Polling'' for a disbursement to a research/
communications company.
``Travel,'' ``Travel Expenses,'' or ``Travel Expense
Reimbursement'' for a disbursement to a staff member.
``Printing'' for a disbursement to a printing company.
``Phone Banks'' for a disbursement to a vendor providing
phone bank services.
``Dinner Expense'' for a disbursement to a restaurant.
``Catering Cost'' for a disbursement to a hotel or
restaurant where a fundraiser was held.
``Party Fees'' or ``Party Annual Dues'' for a disbursement
to a National Party Committee for their annual dues.
``Exit Polling,'' ``Door-to-Door Get-Out-the-Vote,''
``Get-Out-the-Vote Phone Calls,'' or ``Driving Voters to the Polls'' to
individuals or vendors contracted for get-out-the-vote or voter
registration activity.
``Supplies'' for a disbursement to an office supply
vendor.
``Consultant-Media,'' ``Consultant-Fundraising,''
``Consultant-Get-Out-The-Vote,'' ``Consultant-Legal,'' or ``Consultant-
Polling'' for a disbursement to a consultant or consulting company.
Descriptions of purposes that generally lack sufficient detail:
Administrative Expenses
Admin.
Advance
Bonus
Bounty
Campaign Expense
Campaign Material
Charges
Collateral
Collateral Materials
Commission
Compensation (other than committee staff)
Consultant
Consultant-Political
Consulting
Consulting Non-FEA
Consulting Service
Contract
Contract Labor
Contractual Services
Convention Expenses
Convention Services
Costs
Delegate
Delegate Expenses
Design
Discount Fees
Election Day Expense
Entertainment
Event
Event Expense
Event Reimbursement
Event Supplies (if to an individual)
Expenses
Expense Reimbursement
Fees
Fundraising (if to an individual)
Fundraising Event
Fundraising Expense (if to an individual)
Fundraising Fees (if to an individual)
Fundraising Supplies (if to an individual)
General Advice
General Consulting
Generic Campaign Activity
Generic Consulting
Get-Out-The-Vote or GOTV
GOTV Expenses
GOTV Labor
Invoice
Labor
Literature
Meeting (if to an individual)
Meeting Expenses (if to an individual)
Meeting Supplies (if to an individual)
Miscellaneous or Misc.
Miscellaneous Expense
Office Expense (if to an individual)
Office Services
Outside Services
Operating Expenses
Other Expenses
Production
Professional Fees
Professional Fees--Consulting
Professional Services
Promotional Material
Publication
Push Card
Reimbursement
Rendered Service
Services
Services Rendered
State Convention
Supplies (if to an individual)
Voter Bounty
Voter Contact
Voter Drive
Voter Identification or Voter ID
Voter Registration
Worker
This Federal Register notice represents a general statement of
policy
[[Page 889]]
announcing the general course of action that the Commission intends to
follow. This policy statement does not constitute an agency regulation
requiring notice of proposed rulemaking, opportunities for public
participation, prior publication, and delay in effective date under 5
U.S.C. 553 of the Administrative Procedure Act (``APA''). As such, it
does not bind the Commission or any member of the general public. The
provisions of the Regulatory Flexibility Act, which apply when notice
and comment are required by the APA or another statute, are not
applicable.
Dated: December 27, 2006.
Robert D. Lenhard,
Vice Chairman, Federal Election Commission.
[FR Doc. E7-65 Filed 1-8-07; 8:45 am]
BILLING CODE 6715-01-P