3404 DESK REVIEWS AND AUDITS

3404.1 The Report Analysis and Audit Division (Audit Division) of the Office of Campaign Finance shall conduct Desk Reviews of each Report of Receipt and Expenditure filed with the Agency to ensure the accurate reporting of financial activity, as shown by the following:

1. (a) The ending balance from the last report filed is carried forward as the beginning balance for the report under review;
2. (b) The information on the Summary Page, including both columns A and B, is complete and correct mathematically, and presents an overall view of the financial activities of the filer;
3. (c) The information on the Detailed Summary Page, including both columns A and B, is complete and correct mathematically, and presents an overall breakdown of the categories of all receipts;
4. (d) All Schedules A provide complete and detailed information for each receipt, an itemized list of, and which equals, all receipts for each of the categories on the Detailed Summary Page, and that each contribution does not exceed contribution limits;
5. (e) All Schedules B provide complete and detailed information for each disbursement, an itemized list of, and which equals, all disbursements for each of the categories on the Detailed Summary page, and list valid purposes for each expenditure;
6. (f) The information on Schedule C is complete and detailed as to all receipts received from sales and collections, and the total is carried to the Summary Page;
7. (g) The information on Schedule D is complete and detailed as to all debts and obligations (excluding loans) owed by or to the filer, and the total is carried to the Summary Page; and
8. (h) The information on Schedule E is complete and detailed as to all loans made by or to the filer, and the total is carried to the Summary Page.

3404.2 At the conclusion of the Desk Review, the Audit Division will issue a Request for Additional Information (RFAI) letter to each filer whose Report of Receipts and Expenditures was found to contain errors or discrepancies. The RFAI will detail the errors and discrepancies noted during the Desk Review, and will require the filer to respond within fifteen (15) calendar days and provide corrections or file an

amended report.

3404.3 In addition, the Audit Division may conduct full field audits and periodic random field audits of the receipts, disbursements, and debts and obligations of candidates ; principal campaign committees; political committees; inaugural, transition, and exploratory committees; legal defense funds; and constituent-service and statehood fund programs.3404.4 Full Field Audits may be initiated as follows:- (a) Following an election year, the principal campaign committees of candidates newly elected to office may be selected for full field audit in the non-election year occurring thereafter; or

- (b) The Director of the Office of Campaign Finance may direct the conduct of full field audits as the result of complaints received for the investigation of alleged violations of the Campaign Finance Act of 2011 from either the OCF or members of the public, or by order of the Board of Elections.3404.5 Periodic Random Field Audits will be conducted as follows:- (a) For candidates and continuing principal campaign committees, the auditees will be selected from the list of timely filers for each January 31^st and July 31^st report date, following the close of the filing deadline;

- (b) For political action committees, the auditees will be selected from the list of timely filers for each January 31^st and July 31^st report date, following the close of the filing deadline; and

- (c) For Constituent Service and Statehood Fund Programs, the auditees will be selected commencing with the April 1^st report date and every other quarterly filing deadline thereafter, during the calendar year.3404.6 The Audit Branch must notify the Treasurer of the committee selected for audit in writing of the audit, and request the delivery to OCF by a date certain within thirty (30) calendar days of the issuance of the letter, of all underlying documentation, including bank statements and records, copies of deposit slips, contributor checks and cards, invoices, and loan documents supporting each and every transaction reported during the coverage period.3404.7 Upon receipt of all financial records, the audit field work shall commence and include the review of all disclosure reports for completeness and mathematical accuracy, the reconciliation of bank account records to the disclosure reports filed, and such other audit procedures as deemed necessary.

3404.8 Once the fieldwork is completed, the Audit Division shall issue a Preliminary Audit Report, with Findings and Recommendations, and require the submission of a written response, amended report, and/or additional documentation by the committee within thirty (30) calendar days or less after receipt of the Report.

3404.9 The Final Audit Report will be released and made available to the public following the receipt and review of the committee response for compliance with all outstanding issues.

3404.10 In the event of the failure to provide committee records or to respond to the Preliminary Audit Report, in whole or in part, or to any other request of the Audit Division, including the Request for Additional Information, the Audit Branch will refer the failure to comply to the OCF General Counsel for the initiation of the enforcement process pursuant to § 3700 of this title.

3404.11 It is the policy of the Board of Elections that extensions of time to take action required within a period of time under this chapter will not be routinely granted, without a demonstration that good cause exists for such a request, and the extension shall not exceed 15 days.

3404.12 During the period of any audit under this chapter, the committee must continue to file any reports of receipts and expenditures which may become due.

SOURCE: Final Rulemaking published at 60 DCR 1402 (February 8, 2013).