For Political Party AUP
(Updated December 2013)1;i
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES
Secretary of State of Ohio
(Republican/Democratic) Executive Committee
Address
We have performed the procedures enumerated below, with which the (Republican/Democratic)
Executive Committee (the Committee) agreed, solely to assist the Committee in evaluating its compliance
with certain requirements included in Ohio Rev. Code Sections 3517.1012, 3517.13(X)(1), 2(b), (3)(a),
and (4), 3517.17, and 3517.18, for the year ended December 31, 20XX. The Committee is responsible
for complying with these requirements. This agreed-upon procedures engagement was conducted in
accordance with the American Institute of Certified Public Accountants’ attestation standards and
applicable attestation engagement standards included in the Comptroller General of the United States’
Government Auditing Standards. The sufficiency of the procedures is solely the responsibility of the
Committee. Consequently, we make no representation regarding the sufficiency of the procedures
described below either for the purpose for which this report has been requested or for any other purpose.
Cash Receipts
1. We inquired of the Committee whether they deposited all gifts from corporations, labor
organizations and all gifts restricted to operations into the same fund into which they deposit
amounts received from the State Tax Commissioner. [They informed us they did use this fund for
all such gifts.] [Management informed us they received no such gifts.]ii
2. We footed each Statement of Political Party Restricted Fund Deposits Ohio Rev. Code Section
3517.17 requires (Deposit Form 31-CC), filed for 20XX. We noted no computational errors.iii
3. We compared bank deposits reflected in 20XX restricted fund bank statements to total deposits
recorded in Deposit Forms 31-CC filed for 20XX. The bank deposit amounts agreed to the
deposits recorded in the Form.
4. We scanned the Committee’s 20XX bank statements and noted they reflected four quarterly
payments received from the State Tax Commissioner pursuant to Ohio Rev. Code 3517.17(A).
The Deposit Forms 31-CC reported the sum of these four payments without exception. [We
scanned the Committee’s 20XX bank statements and noted they did not reflect four
quarterly payments received from the State Tax Commissioner pursuant to Ohio Rev.
Code 3517.17(A). The Deposit Forms 31-CC did not report two payments in the amount of
$X,XXX and $X,XXX, respectively.]
5. We scanned other recorded 20XX receipts for evidence that a corporation or labor organization
may have exceeded the $10,000 annual gift limit Ohio Rev. Code 3517.13(X)(3)(a) imposes. We
found no evidence that any corporation or labor organization exceeded this limit.
6. Ohio Rev. Code 3517.1012 requires the Party to file Forms 31-CC electronically with the
Secretary of State when the Committee receives gifts from corporations or labor
organizations. We viewed Forms 31-CC submitted for 20XX on the Secretary of State’s
website. << Electronic filing is required if the Committee received gifts from corporations or labor
organizations. Omit this step if the party did not receive the above gifts and was not required to
file electronically. You can access electronic filings at:
http://www2.sos.state.oh.us/pls/cfonline/f?p=119:35:3790556472915995 (in the Entity Type tab,
change entity type to “Political Parties”, and type “Restricted” in the party name box)
1
Please read the document, AUP Additional Guidance for additional information, which we updated in
February 2013. This document is available at the IPA Resources page on the AOS home page.
Cash Reconciliation
1. We recomputed the mathematical accuracy of the December 31, 20XX reconciliation for the bank
account used for receipts and disbursements restricted pursuant to Ohio Rev. Code Section
3517.1012(A). We found no computational errors.
2. We agreed the bank balance on the reconciliation to the bank statement balance as of December
31, 20XX. The balances agreed.
3. We agreed reconciling items [in excess of $[X]] appearing on the reconciliation to canceled
checks, deposit slips, [or to name of documentation]. We determined that the dates and amounts
on those documents support that those items were proper reconciling items and were recorded in
the proper amount on the reconciliation as of December 31, 20XX.
Cash Disbursementsiv
1. We footed each Statement of Political Party Restricted Fund Disbursements Ohio Rev. Code
Section 3517.17 requires (Disbursement Form 31-M), filed for 20XX. We noted no computational
errors.
2. Per Ohio Rev. Code 3517.13(X)(1), we scanned Disbursement Form 31-M filed for 20XX and
inquired of management whether they transferred any cash from the restricted fund to any other
political party account into which contributions may be made or from which contributions or
expenditures may be made. We found no evidence of prohibited transfers.
3. We compared the amounts on checks or other disbursements reflected in 20XX restricted fund
bank statements to disbursement amounts reported on Disbursement Forms 31-M filed for 20XX.
We found no discrepancies.
4. For each disbursementv on Disbursement Forms 31-M filed for 20XX, we traced the payee and
amount to payee invoices and to the payee’s name on canceled checks. The payees and
amounts recorded on Disbursement Forms 31-M agreed to the payees and amounts on the
canceled checks and invoices.
5. We scanned the payee for each 20XX disbursement for evidence that it might represent a
contribution or campaign-related disbursement, both of which Ohio Rev. Code 3517.13(X)(2)(b)
prohibit. We found no evidence that any restricted fund disbursements represented contributions
or campaign-related disbursements.
6. We compared the signature on 20XX checks to the list dated [date] of authorized signatories the
Committee provided to us. The signatory on all checks we selected was an approved signatory.
We compared the endorsement to the payee listed on the check without exception.
7. We scanned each 20XX restricted fund disbursement recorded on Form 31-M for evidence that it
represented a transfer from the restricted fund to any other state or county political party, which
Ohio Rev. Code 3517.13(X)(4) prohibits. We found no evidence of any transfers.
8. We compared the purpose of each disbursement OR [the disbursements we selected in step
3 above] listed on 20XX Disbursement Forms 31-M to the purpose listed on the vendor invoice
and to the purposes Ohio Rev. Code Section 3517.18 permits. We found no instances where the
purpose described on the invoice violated the restrictions of Ohio Rev. Code Section 3517.18.vi
[We found one exception: The Committee issued Check No. 456 for $9,876 to the Smithville
Gazette for advertisements supporting the election of Joe Joseph. Section 3517.18(B)(1), Ohio
Rev. Code, prohibits payments supporting the election of a particular candidate. Accordingly, we
are hereby issuing a finding for recovery . . .(etc.).]
9. Ohio Rev. Code 3517.1012 requires the Party to file Forms 31-M electronically with the
Secretary of State when the Committee receives gifts from corporations or labor
organizations. We viewed Forms 31-M submitted for 20XX on the Secretary of State’s
website. << Electronic filing is required if the Committee received gifts from corporations or labor
organizations. Omit this step if the party did not receive the above gifts and was not required to
file electronically.
We were not engaged to, and did not examine each Statement of Political Party Restricted Fund Deposits
and Statement of Political Party Restricted Fund Disbursements filed for 20XX, the objective of which
would have been to opine on compliance. Accordingly, we do not express an opinion. Had we performed
additional procedures, other matters might have come to our attention that we would have reported to
you.
This report is intended solely for the information and use of the Secretary of State of Ohio and for the
Republican/Democratic Executive Committee and is not intended to be and should not be used by
anyone other than these specified parties.
Auditor Signature
(DATE)
NOTE: We will no longer attach forms or financial statements to this report.
i
RC 3517.1012(B) created various new campaign finance forms required to be prepared and filed by
political parties. If needed for reference, links to sample blank forms on the Secretary of State’s website
are below:
http://www.sos.state.oh.us/SOS/CampaignFinance/Filing/CFForms.aspx
Here is a link to the form for deposits (Form # 31-CC):
http://www.sos.state.oh.us/SOS/Upload/candidates/forms/31cc_NON.pdf
Here is a link to the form for disbursements (Form # 31-M):
http://www.sos.state.oh.us/SOS/Upload/candidates/forms/31m_NON.pdf
These forms are available in PDF or Excel files. The links above are for the PDF versions, but the Excel
version may be accessed from the first link.
ii
Note: Per RC 3517.1012(A)(2), parties must deposit gifts restricted to operations and all gifts from
corporations or labor organizations into the same fund into which they deposit “checkoff” amounts
received from the tax commissioner. The parties may use this fund for unrestricted gifts, or may deposit
unrestricted gifts into a separate account.
iii
RC 3517.10 describes somewhat complex filing requirements and deadlines. However, a committee
must file at least two reports annually (for the six month periods ending June 30 and December 31). We
are not concerned with the frequency of filing or meeting filing deadlines. Our focus should be on
whether all transactions recorded in the restricted fund bank accounts are recorded on a Deposit or
Disbursement form.
iv
We no longer include a separate step for payroll disbursements. RC 3517.18 permits staff salary
disbursements. That statute does not restrict their duties. Therefore, we would test checks paid for staff
salary disbursements for accuracy, but will not question the activities upon which the staff worked.
v
If there are a relatively large number of disbursements, you need not test every disbursement. Modify
the procedure description, using the applicable example from the following:
We haphazardly selected [number] disbursement transactions. . .
If you report exceptions from this test, conclude with the finding as follows:
We noted two checks, for $345 and $1,234, for which there was no documentation attached, such
as an invoice, to support its allowability. Because we did not test all disbursements, there may be
other instances where this occurred.
If the service description on the invoice is insufficient for us to determine the payment’s allowability per
RC 3517.18, we should obtain additional evidence from management or the vendor. If we cannot
reasonably assure the payment was allowable, we should describe the payment and state we were
unable to determine whether it was allowable under RC 3517.18.
vi