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LPF Audit Committee Final Annual Report 2020

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Audit Committee
Final Report - February 21, 2020
by Suzanne Gilmore (Chair)

Members:
Suzanne Gilmore. (Chair since December 15, 2019), Davie Parrish, John Olivadoti (ex-officio), J. Mark Barfield (ex-officio)

Establishment:
The Audit Committee was originally created as an Ad Hoc committee of the LPF in 2018 following a decision by the EC to provide more oversight of financial transactions.  The committee was made a Standing Committee at the May 4 and 5, 2019 LPF Annual Business Meeting.

Rules Establishing and Guiding:
LPF Bylaws
ARTICLE III Standing Committees and Ad Hoc Committees
 
Section 1. Standing Committees

A. Standing Committees of the LPF shall include the following:
Candidate Committee
Communications Committee
Membership Committee
Platform Committee
Rules Committee
Fundraising Committee
Legislative Action Committee
Affiliate Support Committee
Audit Committee

B. Committees and Committee Chairs shall be appointed by the Chair of the LPF with the approval of the Executive Committee, unless otherwise provided in the Constitution or Bylaws. Each Committee shall consist of at least three members of the party (disregarding ex-officio members). Appointment terms shall last until the next Executive Committee election or until the committee member is removed or replaced, unless otherwise provided in the Constitution or Bylaws. Removal of persons on a committee shall need the approval of the Executive Committee. Actions of all Committees shall be reported on a regular basis to the Executive Committee. Special committees may be created by the Executive Committee and shall also follow these requirements unless otherwise provided upon their creation. The duties of all standing committees shall be stated in the Bylaws. Further clarification of duties may be added to the Standing Rules.

C. Along with a Chair, all standing committees, unless otherwise provided in the Bylaws or Standing Rules shall have a Vice Chair. Along with performing the normal duties of the committee, the committee Vice Chair shall also act in place of the committee Chair, if the Chair is absent or cannot perform the duties of the Chair.

Section. 10. The Audit Committee

The committee shall be composed of the LPF Treasurer (ex officio), LPF Vice Chair (ex officio) and a minimum of three (3) other LPF members and no committee Vice Chair. The committee shall work to ensure the proper reporting of LPF contributions and expenditures, to provide oversight to the LPF Treasurer position, and to provide overall accounting and budgeting support to the LPF and LPF committees. Specific duties shall include, but are not limited to: (1) QuickBooks (and its successors) reconciliations, (2) quarterly profit and loss statements of LPF committees, (3) reviewing FEC reports, and (4) assisting the Treasurer with selection of yearly auditor,(5) creating and maintaining documentation on best practices.


Events:
Meetings were held regularly throughout the year at least monthly on average, or more frequently when needed.

Reviewed Quickbooks at least quarterly.

The Audit Committee prepared a Budget for EC approval with projections for expenditures for 2020 and including projections of revenue and from where likely obtained. This is the first time to our knowledge that the LPF has had a formal budget prepared and approved. Past information was provided back to 2015. Projections were made based on current needs, including, but not limited to web, server, CRM, email expenses, as well as convention expenses and income. Convention figures were based on comparison to previous similar years. The 2020 budget reflected projections for a presidential election year and compared to 2016, with a slight reduction from 2016, since 2026 convention was in Florida. When that occurred, there was a very large contingency of people who attended the LPF convention in hopes of obtaining a delegate slot at the LP Convention. 2021, not being an election year, is expected to result in fewer delegates attending the LPF convention, unless some other event(s) intervene to change the dynamics. The budget will be updated at least quarterly and projections revised according to ongoing expenses and income.  Budget includes a running profit vs loss total year to year over time. We are on track to have completely recovered from unexpected expenditures of 2019 and profitable again by the end of 2020. The EC will be presented with the 2021 budget for approval in December 2020.
https://docs.google.com/spreadsheets/d/1EHxpJb1KsF_T3Uez3987gtKZThgzGKm_UbwfwVxEA9k/edit?fbclid=IwAR32Cchlpt9nZkl_rKF1lfn63lcO-A-xKmlLDMilBLOGs4dyq9uxpedMQpM#gid=990135386)


Resolved issue with contract work on social media under consideration for a contract with an LLC. Obtained E2 visa of principal manager, researched, drafted questions for FEC specialist, Responded to Chair on approval by the Audit committee as requested by the EC. Currently awaiting final contract which includes current dates and provisions for FEC compliance and transparency.

Heard presentation by an individual from California who offered to do FEC compliance work. Determined that the party appears to be already doing the same level of work.

Worked with the LPF Chair and Treasurer (also Convention Committee Chair) on convention expenses and projected revenue. Reviewed the proposed Holiday Inn contract and made recommendations. Had final contract reviewed by a CPA firm, then presented to EC for approval.

The Committee conducted research, obtained documents, drafted responses, obtained affiliate’s response to follow-up questions by the Federal Elections Commission (FEC) regarding a complaint. Sent the responses to the LP attorney for review, and the LPF Chair drafted and submitted the final version within the timeframe allowed by the FEC.

Responded to notice by the FEC of a discrepancy condition. Determined that there was no actual discrepancy. The problem was in what was being reported to FEC (all transactions, not just federal elections transactions). Consulted with LP FEC compliance specialist. Determined to stop reporting non-federal transactions, and to report non-federal transactions to Florida DOE. Added to LPF’s Federal bank account to total $2,500. Responded to FEC. Amended reports as appropriate.

Worked with the Communications Chair to resolve several issues: 2019 Convention Statement of Financial Activities; Stripe donation form reporting, user ability to cancel Recurring Donations, and possible eCanvasser connectivity to Gravity Forms.
#1 - February 19, 2020, 01:29:30 PM