Current through Register Vol. 54, No. 44, November 2, 2024
(a) A registrant shall maintain records
reasonably necessary to substantiate the filings of lobbying activity made
under sections 13A04 and 13A05 of the act (relating to registration; and
reporting).
(1) The Department will prescribe
standardized forms for reports, which shall be used by all principals, lobbying
firms and lobbyists required to be registered under the act.
(2) In maintaining records, registrants may
use any reasonable methods of estimation and allocation.
(3) Records of lobbying activity may be kept
under any reasonable accounting basis, which includes:
(i)
Cash basis. Revenue and
related assets are recognized when received and expenses are recognized when
payment is disbursed. For example, payroll costs are reported when paid, not
when the associated hours are worked.
(ii)
Accrual basis. Income
is recognized when earned and expenses when incurred. For example, payroll is
recognized when the associated hours are worked regardless of when payment is
made.
(iii)
Modified
accrual basis. Recognizes an economic transaction or event as revenues
in the operating statement when the revenues are both measurable and available
to liquidate liabilities of the current period. Available means collectible in
the current period or soon enough thereafter to be used to pay liabilities of
the current period. Similarly, expenditures are generally recognized when an
event or transaction is expected to draw on current spendable
resources.
(4) Records of
lobbying activity shall be maintained in sufficient detail to enable the
registrant to fully comply with the act and this part.
(5) The records must identify the general
subject matter or issue being lobbied. The specific contents of a particular
communication, or the identity of those with whom the communications take
place, need not be recorded or maintained.
(6) A registrant should keep its records on
the same accounting basis for the 2-year period covering its registration under
the act. If a registrant changes its accounting basis, then it should make an
internal record noting the date of the change and the reason for the
change.
(b) A registrant
may keep records of all lobbying activity separate from records of the
registrant's nonlobbying activity. A registrant may keep records related to
registering and reporting under the act separate from other records relating to
lobbying.
(1) Records that integrate both
lobbying and nonlobbying activities shall be retained and made available for
inspection or audit under this section and Chapter 61 (relating to compliance
audits).
(2) An expenditure
incurred partially in connection with lobbying may be prorated by any
reasonable accounting method, but the method used shall be described in detail
in the records maintained as to the expenditure.
(3) A registrant may value time spent
lobbying in using any of the following examples of viable options as long as
the method selected is a reasonable method of estimation and allocation:
(i) A registrant may employ a good faith
estimate by using any reasonable method of estimation and allocation.
(ii) A registrant may keep a record of all of
the time spent lobbying.
(iii) A
registrant may use the entire fee expended for lobbying.
(c) A registrant shall retain the
documents used in recordkeeping reasonably necessary to substantiate the
filings to be made under section 13A04 or 13A05 of the act for 4 years from the
date of filing.
(1) The documents to be used
in recordkeeping include, but are not limited to: books, journals, ledgers,
accounts, statements, invoices, bills, vouchers, receipts, charge slips,
cancelled checks, payroll check stubs, time sheets, tax returns and related
forms, contracts, subcontracts, business diaries and calendars and other
related written or computerized records.
(2) Original source records received by the
registrant shall be retained in their original form to the extent
possible.
(3) Records prepared by
the registrant under this section may be in written or computerized/electronic
formats.
(4)
Computerized/electronic records shall be maintained to enable the Department,
the Commission, the Office of Attorney General or the Board to access in
readable form all of the information reasonably necessary to substantiate the
registration statements or reports.
(5) Affidavits may be used if actual records
are lost, stolen or destroyed through no fault of the registrant, or are
otherwise unavailable, and cannot be recreated from other sources. An affidavit
must be as complete and detailed as is reasonably possible, and include the
specific reasons for the unavailability of the actual records.
(d) Reportable expenditures shall
be supported by original source documents to the extent they are available. If
an original source document is not available to support a reportable
expenditure, the registrant shall upon payment of the expenditure promptly
prepare a written voucher, journal entry or other written or electronic form of
record to document the expenditure. The record must include a notation of the
reason an original source document was not available.
(e) The documents and records maintained and
retained to substantiate expenditures must reflect for each reportable item,
the following information:
(1) The full names
of the payor and payee.
(2) The
date of the transaction.
(3) The
dates and forms of payments.
(4)
The full name and official position of each State official or employee who was
a beneficiary, and the amount of the expenditure reasonably attributable to
each of them.
(5) The number of
immediate family members of a State official or employee, who were
beneficiaries, and the amount of the expenditures reasonably attributable to
them.
(6) A description of the
goods or services or other consideration for which the expenditure was made or
incurred.
(f)
Contributions of resources which are reportable under section 13A05(b)(5) of
the act shall upon receipt be promptly documented by the registered principal
through the preparation of a written receipt, an entry in a journal maintained
by the principal, or other written or electronic form of record.
(g) Documents and records maintained and
retained to substantiate contributions of resources reportable under section
13A05(b)(5) of the act must reflect for each reportable item, the following
information:
(1) The full names of the donor
and donee.
(2) The amount or value
and date of the contribution.
(3)
In the case of a nonmonetary contribution, a description of the goods, services
or other forms of resources provided.
(4) Instructions, directions, conditions,
restrictions, limitations or controls provided or imposed by the donor as to
the use or disposition of the contribution.
(h) Upon written request by the Office of
Attorney General, the Department, the Commission or the Board, documents
reasonably necessary to substantiate filings made under sections 13A04 and
13A05 of the act shall be made available for inspection and copying within 30
days.
(1) The Office of Attorney General, the
Department, the Commission or the Board may extend this 30-day deadline in
connection with its own requests, when circumstances compelling an extended
deadline are established.
(2)
Computerized/electronic records shall be provided in readable form.
