Table Of Content

ACCOUNTING and REPORTING MANUAL for POLITICAL COMMITTEES Prepared and Published by Commissioner of Political Practices 1205 Eighth Avenue Post Office Box 202401 Helena, MT 59620-2401 Telephone: (406) 444-2942 Fax number: (406)444-1643 SWTF Documms COLLECTION MONTANA 2001 6).,tuoKM.^y HELENA, MOMTANA 59r , November Printing MONTANASTATELIBRARY 3 0864 0015 2005 8 DATE DUE MAR 1 ACCOUNTING and REPORTING MANUAL for COMMITTEES POLITICAL Prepared and Published by Commissioner of Political Practices 1205 Eighth Avenue Post Office Box 202401 Helena, MT 59620-2401 Telephone: (406) 444-2942 Fax number: (406) 444-1643 2001 Edition November Printing TABLE OF CONTENTS INTRODUCTION iv PART1: POLITICAL COMMITTEES POLITICAL COMMITTEE Definition 1 PRINCIPAL CAMPAIGN COMMITTEE Definition 1 Ballot Issue Committee 2 Particular Candidate Committee 2 Leadership Political Committee 4 INDEPENDENT COMMITTEE Definition 4 Political Action Committee 4 Political Party Committee 5 INCIDENTAL COMMITTEE Definition 5 Incidental Committee 6 SUMMARY 6 PART POLITICAL COMMITTEE ACCOUNTING 2: TREASURER Appointment 7 Cerfication 7 Keeping Accounts 8 DEPOSITORY Designation 8 Certification 9 RECEIPTS Contribution defined 9 Depositing contributions 9 Statement of contributions 9 Contributions by check 10 Cash contributions 10 Recording contributions 10 Contributor card 11 RECEIPTS, continued Loans 11 Mass collections from fundraising events 12 In-kind contributions 12 Interest, rebates, and refunds 13 Earmarked contributions 13 Donations/items not considered contributions 14 LIMITATIONS ON CONTRIBUTIONS Unlimited contributions 14 Contribution limitations 14 Individual and political committee limitations 15 Aggregate political party committee limitations 15 Aggregate PAC limitations for legislative candidates 15 ILLEGAL CONTRIBUTIONS Corporate contributions 16 Anonymous contributions 17 EXPENDITURES Definition 18 Petty cash fund 19 Payroll account 20 Savings account 20 Bank service charges 21 PART POLITICAL COMMITTEE REPORTING 3: STATEMENTS AND REPORTS Obtaining forms 22 Who must statements 22 file Who must file reports 22 Where to file statements and reports 23 Report periods and due dates 24 Failure to file statements/reports 24 PREPARING STATEMENTS FORM C-2. STATEMENT OF ORGANIZATION 25 PREPARING REPORTS Required forms 26 FORM C-4. INCIDENTAL POLITICAL COMMITTEE REPORT FORM C-4. First Page: Filing Designation 27 FORM C-4. First Page: Reporting Period 27 FORM C-4. First Page: Name and Address 27 PREPARING REPORTS, continued FORM C-4. First Page: Cash Sumnaary 27 FORM C-4. First Page: Certification 28 FORM C-4. First Page: Schedule A: Receipts Sections 1 through 3 28 FORM C-4. Schedule B: Expenditures 29 FORM C-4. Schedule C: Corrections 29 FORM C-6. POLITICAL COMMITTEE FINANCE REPORT FORM C-6. First Page: Filing Designation 29 FORM C-6. First Page: Reporting Period 30 FORM C-6. First Page: Name and Address 30 FORM C-6. First Page: Cash Summary 30 FORM C-6. First Page: Certification 31 FORM C-6. Schedule A: Receipts Sections through 8 31 1 FORM C-6. Schedule B: Expenditures Sections and 2 33 1 FORM C-6. Schedule C: Debts Not Yet Paid 34 FORM C-6. Schedule D: Corrections 35 FORM C-7. NOTICE OF PRE-ELECTION CONTRIBUTIONS 35 REFERENCES APPENDIX: SAMPLE COMPLETED FORMS INTRODUCTION The purpose of this manual is to provide a practical guide to accounting and reporting procedures for treasurers of political committees and others who are involved in the election process. This manual is nota substitutefor{he \a\NS and rules governing campaign finance and practices. Specific citations are noted throughout the manual. If precise legal language is required, users of this manual need to consult Montana Code Annotated (MCA) and Administrative Rules of Montana (ARM). MCA Title 13, chapter 37 provides for public disclosure of contributions and expenditures made to influence elections; therefore, accurate disclosure of those transactions requires: (1) an understanding of the laws and rules; and (2) the maintenance of detailed accounts from which periodic finance reports can be prepared. The manual is divided into three major parts: POLITICAL COMMITTEES, POLITICAL COMMITTEE ACCOUNTING, and POLITICAL COMMITTEE FINANCE REPORTING. Part 1, POLITICAL COMMITTEES, defines and describes the various types of political committees and the specific reporting requirements for each type. Part 2, POLITICAL COMMITTEE ACCOUNTING, discusses the responsibilities of committee treasurers, outlines basic record maintenance practices and accounting principles, defines and provides examples of contributions and expenditures, and describes contribution limitations as well as contributions that are illegal to give and to receive. IV Part 3, POLITICAL COMMITTEE FINANCE REPORTING, identifies the different statements and reporting forms required for filing, who must file them, how the various forms are to be completed, and when and where these forms areto befiled. The Appendix contains sample completed forms. A supplement to this manual contains blank forms that may be reproduced as needed. Treasurers ofcommittees who have questions concerning accounting practices and reporting procedures are urged to write, call, or fax the Commissioner of Political Practices. The address, telephone number, and fax number are provided on the front cover and on the front page of this manual.