County-level political party committees have regularly failed to disclose hundreds of thousands of dollars in campaign expenses and contributions, sometimes leaving voters in the dark about their finances until after Election Day, according to audits conducted by the California Fair Political Practices Commission.
At least 11 audits conducted since 2002 show numerous committees that have failed to disclose their finances properly. As we’ve been writing this week, county central committees are often called upon to route large sums of money into tight races, helping donors and politicians bypass limits on individual campaign giving.
Central committees are often volunteer organizations with little professional accounting expertise and scant knowledge of complex campaign-disclosure laws. Sometimes, money that passes through the committees goes unaccounted for until long after voters or opposing campaigns can use it to inform their decisions.
Last election cycle, for example, the Democratic Party of Sacramento County apparently failed to disclose more than $250,000 in contributions from unions and professional groups until the day after Election Day. The committee’s chairwoman said the error might have been caused by an inexperienced treasurer and said the committee would work more carefully to follow the law.
However, not all disclosure omissions by county parties have been innocent mistakes. In 2003, The Los Angeles Times revealed that county committees were once used to deliberately hide contributions until after Election Day, before a loophole allowing them to do so was closed by the Legislature.
The following audit findings should give you a sense of how committees in recent years have failed to follow the law:
2005-2006
Monterey County Republican Central Committee
Period covered: Jan. 1, 2005 – Dec. 31, 2006
Findings: Failed to file late-contribution reports for donations from the committee to various candidates totaling $532,405; failed to file late contributions for contributions to the committee totaling $164,000; failed to properly file four pre-election statements; failed to disclose subvendor information for more than $400,000 in committee expenses.
Comments: Committee provided no comment in the audit
San Diego County Democratic Party
Period covered: Jan. 1, 2005 – Dec. 31, 2006
Findings: Failed to file two reports totaling more than $270,000 in contributions and $149,000 in expenses; failed to disclose incoming late contributions totaling $24,000.
Comments: According to the audit: “Mr. Martinez (committee treasurer) stated that there was confusion with the new reporting requirements for county political party committees. He added that the Committee filed the Preelection Statement for the period July 1 through Sept. 24, 2005, after being notified by the (Secretary of State) that preelection statements were missing. He further noted that all other statements were filed timely, and they are currently complying with the special reporting requirements for political party committees.”
2003-2004
Fresno County Republican Central Committee
Period covered: Jan. 1, 2003 – Dec. 31, 2004
Findings: No documentation was maintained to determine the actual value of contributed television airtime from a donor, Harry Pappas, to the Dean Gardner for Assembly 2004 committee.
Comments: According to the audit: “Mr. Parsons (the committee treasurer) stated that … the Committee did not have direct control of the contributed airtime being used by the candidate.”
Monterey County Republican Central Committee
Period covered: Jan. 1, 2003 – Dec. 31, 2004
Findings: Failed to file a $10,706 late expenditure report for costs of producing and mailing a ballot brochure; failed to file a late contribution report for a $1,500 non-monetary contribution to Californians for Schwarzenegger; failed to file one pre-election statement.
Comments: Committee provided no comment in the audit
San Diego County Democratic Party
Period covered: Jan. 1, 2003 – Dec. 31, 2004
Findings: Failed to itemize contributions totaling $9,460; understated contributions totaling $8,111; failed to disclose subvendor information for expenditures totaling $720,838.
Comments: According to the audit: “Mr. Martinez (committee treasurer) stated that during the period these contributions were received, the committee’s volunteer treasurer, who did not have a lot of financial background, attempted to comply with the reporting requirements to the best of his knowledge and ability and he never intentionally excluded any data … Mr. Martinez stated that the committee was not aware of the requirement to disclose subvendors.”
San Joaquin County Republican Central Committee
Period covered: Jan. 1, 2003 – Dec. 31, 2004
Findings: A $50,000 contribution made to Podesto for Senate was not reported on the appropriate pre-election statement. The statement was amended to disclose that contribution on Election Day.
Comments: According to the audit: “Ms. Lawler (the committeee treasurer) stated that the Committee filed an amendment to disclose the contribution as soon as they realized the information had been left off the original statement.”
2002
Fresno County Republican Central Committee
Period covered: Oct. 2, 2002 – Dec. 31, 2002
Findings: Two outgoing late contribution reports totaling $45,000 were filed late.
Comments: According to the audit: “Mr. Parsons (the committee treasurer) stated that he was not aware, at the time, of the requirement to file (late contribution reports) for contributions made. He explained that the committee filed (the reports) for contributions received. He further stated that late filing penalties were paid to the Secretary of State.”
Merced County Republican Central Committee
Period covered: Oct. 20, 2002 – Dec. 31, 2002
Findings: Failed to file a report for a $14,900 late contribution to Friends of Greg Aghazarian.
Comments: Committee provided no comment in the audit
Monterey County Republican Central Committee
Period covered: July 1, 2002 – Dec. 31, 2002
Findings: Failed to file a late contribution report for a $25,000 contribution to Jeff Denham for Senate; failed to file a late independent expenditure report for $21,168 made on behalf of Jeff Denham for Senate.
Comments: Committee provided no comment in the audit
Riverside County Democratic Central Committee
Period covered: July 1, 2002 – Dec. 31, 2002
Findings: Failed to file late contribution reports totaling $62,900 in incoming donations; failed to file several required pre-election reports.
Comments: According to the audit, “Mr. Froelich and Ms. Durkee (committee treasurers) stated that the Riverside County Democratic Central Committee had a volunteer organizational body throughout the time of the audit period and that they have since hired Durkee & Associates to maintain their records …”
Riverside County Republican Central Committee
Period covered: Oct 20, 2002 – Dec. 31, 2002
Findings: Failed to disclose incoming contributions totaling $54,357
Comments: Committee provided no comment in the audit
Keep in mind that these committees were reviewed through the FPPC’s selective-auditing process. There are lots of other county committees whose books have not yet been examined. We ran across plenty of apparent disclosure issues in our reporting on central committees, so it’s a pretty safe bet that some errors and omissions have not yet been reported.
The FPPC has more audits on tap for this year. Check them out here.
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