Rule 4-01 Records to be Kept.
(a) Generally. Candidates must keep records that enable the Board to verify the accuracy of disclosure statements, substantiate that expenditures were made in furtherance of the campaign, were qualified expenditures, or were permissible post-election expenditures, and confirm any matchable contributions claimed. Candidates must maintain and may be required to produce originals and copies of checks, bills, or other documentation to verify contributions, expenditures, or other transactions reported in their disclosure statements. Candidates shall maintain clear and accurate records sufficient to show an audit trail that demonstrates compliance with the Act and these Rules. The records shall be made and maintained contemporaneously with the transactions recorded, and maintained and organized in a manner that facilitates expeditious review by the Board. Nothing in this chapter shall be construed to modify the requirements of New York Election Law §14-118. The records maintained for each campaign finance transaction, whether maintained on paper and/or electronically, shall be accurate and, if necessary, modified promptly to ensure continuing accuracy. Records that are contemporaneous and complete, as described in this Rule, including records using forms supplied by the Board, shall be presumed to be sufficient to demonstrate financial activity. If at any time a candidate becomes aware that a record of an expenditure, whether maintained on paper or electronically or both, is missing or incomplete, the candidate may create a new record or modify an existing record, provided that the record so created or modified is clearly identified by the candidate as such, and provided, further, that if the missing or incomplete record is an invoice from a vendor, the candidate must in the first instance attempt to get a duplicate or more complete record directly from such vendor prior to creating a new record or modifying an existing record. In addition, the candidate must create a further record, in the form of a signed, dated, and notarized statement by the candidate and/or treasurer and/or other campaign representative having first-hand knowledge of the matter, explaining the reasons for and the circumstances surrounding the creation or modification of a record. The Board reserves the right not to accept a non-contemporaneous record created or modified pursuant to this paragraph if, after review of the timing and other circumstances, it determines that the record is not sufficient to document the actual transaction.
(2) Photocopies of checks and other monetary instruments. Candidates shall maintain a photocopy of each check or other monetary instrument representing a contribution or other monetary receipt. In order for a contribution in the form of a check signed by an authorized agent of the contributor to be matchable, participants must maintain:
(i) a copy of the check upon which is printed the name of the actual contributor; and
(ii) a document, signed by the contributor, which indicates:
(A) that the person signing the check is authorized to do so;
(B) the date and amount of the contribution; and
(C) the principal committee's name.
(3) Contribution records.
(i) For each contribution received, all candidates shall records demonstrating the source and details of the contribution as described herein. All records required to be maintained must be provided to the Board upon request.
(A) Cash and money order contributions. For each contribution received from an individual contributor via cash or money order, the record must be in the form of a contribution card.
(B) Check contributions.
(1) For each contribution received via check, the record must include a copy of the check made out to the authorized committee and signed by the contributor.
(2) For each contribution received from an individual contributor via check, the candidate must also maintain a contribution card, if the check used to make the contribution
(a) bears no address;
(b) bears a professional designation, such as “M.D.”, “Esq.”, or “C.P.A.”, and a non-residential address; or
(c) is a bank-issued or electronic check that does not include an original contributor signature.
(C) Credit card contributions.
(1) For each contribution received via credit card, including contributions received over the internet, the record must have been provided by the merchant or processor and must contain: the contributor’s name, residential address, credit card account type, credit card account number, and credit card expiration date. In the case of credit card contributions made over the internet, the contributor must actively agree online to an affirmation statement, as required by subparagraph (ii)(A) of this paragraph, and the candidate must maintain a copy of all website content concerning the solicitation and processing of credit card contributions. In the case of credit card contributions not made over the Internet and made by individual contributors, the candidate must maintain a contribution card.
(2) The candidate must also maintain copies of the merchant account or payment processor agreement, all merchant account statements, credit card processing company statements and correspondence, transaction reports, or other records demonstrating that the credit card used to process the transaction is that of the individual contributor (including proof of approval by the credit card processor for each contribution and proof of real time address verification), the account’s fee schedule, and the opening and closing dates of the account. Merchant account statements must be provided in such form as may be required by the Board.
(D) Text message contributions. For each contribution received via text message, the record must have been provided by the mobile fundraising vendor and must contain: the contributor’s name, residential address, and phone number; the amount of the contribution; and the name, residential address, and phone number of the registered user of the specific mobile device used to initiate the contribution, to the extent that such information may be reasonably obtained under law. The candidate must also maintain the following records for each text message contribution received:
(1) copies of all relevant third-party vendor agreements between the candidate and mobile fundraising vendor, copies of records maintained by a mobile fundraising vendor listing contributors and amounts pledged and paid, receipts indicating fees paid by the candidate to a mobile fundraising vendor and fees deducted by such vendor, and similar records relating to the solicitation or receipt of text message contributions;
(2) copies of any content used by the candidate to solicit text message contributions; and
(3) copies of any templates or scripts used by a mobile fundraising vendor to communicate with a contributor in facilitating and processing a text message contribution.
(E) Segregated account documentation.
(1) Segregated account contribution cards. For each contribution from an individual contributor that the participant deposits into a segregated bank account pursuant to Rule 5-01(n)(2), the record must be in the form of a contribution card.
(2) Segregated account bank statements, contribution cards, and checks. Participants seeking to comply with the exception contained in Rule 5-01(n)(2) must submit segregated account contribution cards and copies of segregated account bank statements and checks to the Board in the manner and to the extent provided by Rule 5-01(n) with each disclosure statement filing.
(F) Intermediaries. For each contribution accepted from an intermediary, including any contributions delivered to a fundraising agent, or solicited by an intermediary where such solicitation is known to the candidate, the candidate must maintain a separate record in the form of an intermediary statement. The intermediary statement must contain: the intermediary’s name, residential address, employer and business address; the names of the contributors; and the amounts contributed. This record must be signed by the intermediary, or if the intermediary is unable to sign his or her name, marked with an “X” by the intermediary and signed by a witness. Adjacent to the signature or mark, the intermediary must write the date on which he or she signed or marked the form.
(ii) Contribution cards.
(A) Contribution cards must contain the contributor’s name and residential address, the amount of the contribution, the authorized committee’s name, and the contributor’s selection of an instrument code corresponding to the instrument used to make the contribution. Credit card contribution cards must also contain the credit card account type, account number, and expiration date.
(B) Contribution cards must be filled out by the contributor or, if the contributor is unable to fill out the card, by another individual present at the time the contribution is made. Contribution cards must be signed by the contributor or, if the contributor is unable to sign his or her name, marked with an “X” by the contributor and signed by a witness to the contribution. Adjacent to the signature or mark, the contributor must write the date on which he or she signed or marked the contribution card. The Board shall provide a template of all contribution cards required to be maintained pursuant to this section.
(C) A contribution card that contains any additional information and signatures required by Rule 5-01(n)(2) shall also satisfy the requirements of that Rule.
(iii) Affirmation statements.
(A) Unless otherwise specified herein, above the line for the contributor’s signature, contribution cards must state: “I understand that State law requires that a contribution be in my name and be from my own funds. I hereby affirm that I was not, nor, to my knowledge, was anyone else, reimbursed in any manner for this contribution; that this contribution is not being made as a loan; and that this contribution is being made from my personal funds or my personal account, which has no corporate or business affiliation.”
(B) For text message contributions, the candidate must maintain records demonstrating that the contributor has certified via text message the following statement: “I certify I am the registered user of this phone and will pay the amount specified from my personal funds.”
(C) Segregated account contribution cards must state, above the line for the contributor’s signature: “I understand that this entire contribution will be used only (i) to pay expenses or debt from a previous election; (ii) by the candidate for an election other than the election for which this contribution is made; or (iii) to support candidates other than the candidate to whose campaign this contribution is made, political party committees, or political clubs. I further understand that this contribution will not be matched with public funds. I understand that State law requires that a contribution be in my name and be from my own funds. I hereby affirm that I was not, nor, to my knowledge, was anyone else, reimbursed in any manner for this contribution; that this contribution is not being made as a loan; and that this contribution is being made from my personal funds or my personal account, which has no corporate affiliation.”
(D) Intermediary statements must state, above the line for the intermediary’s signature: “I hereby affirm that I did not, nor, to my knowledge, did anyone else, reimburse any contributor in any manner for his or her contribution, and that none of the submitted contributions were made by the contributor as a loan. The making of false statements in this document is punishable as a class E felony pursuant to § 175.35 of the Penal Law and/or a Class A misdemeanor pursuant to § 210.45 of the Penal Law.”
(4) Transfers. Candidates shall obtain and maintain all records specified by the Board regarding transfers, including, but not limited to, in the case of transfers from a committee not otherwise involved in the covered election, other than another principal committee of the same candidate, a record, obtained prior to receipt of the transfer, demonstrating, for each contribution to be transferred to a participant’s authorized committee, the contributor’s intent to designate the contribution for the covered election. This record shall contain the statements: “I understand that this contribution will be used by the candidate for an election other than that for which the contribution was originally made. I further understand that the law requires that a contribution be in my name and be from my own funds. I hereby affirm that this contribution was made from my personal funds, is not being reimbursed in any manner, and is not being made as a loan.” This record must be signed by the contributor, or, if the contributor is unable to sign his or her name, marked with an “X” by the contributor and signed by a witness to the contribution. Adjacent to the signature or mark, the contributor must write the date on which he or she signed or marked the record.
(d) Bills. Candidates shall retain a copy of each bill for goods or services provided. Candidates shall maintain written documentation showing that a bill has been forgiven. Documentation for goods or services must be contemporaneous and must provide the date the vendor was retained or the date the goods or services were provided, the vendor's name and address, the amount of the expenditures, and a detailed description of the goods and services provided. If the invoice supplied by the vendor does not meet these requirements, the candidate must create an additional contemporaneous record containing the necessary information, and such record must be signed by the vendor and the campaign treasurer or other representative of the campaign. In the case of services that were subcontracted by the vendor, candidates must obtain documentation meeting the above requirements for the subcontracted services from the vendor. For wages, salaries, and consulting fees, candidates must maintain a contemporaneous record, signed by the employee or consultant and the campaign, and dated, providing the name and address of the employee or consultant, a detailed description of the services, the amount of the wages, salary or consulting fees, the date(s) on which the work was performed, the period for which the individual was retained, and a detailed breakdown of the number of hours worked. The Board shall provide specimens of records for employees and consultants, including daily timesheets for election day workers and consultant agreements.
(1) By check. A candidate shall make all disbursements by check, except for petty cash. The date, payee name, purpose, and number of each check, as well as all inter-account transfers, any other debits, and any additional information as determined by the Board, shall be recorded in a checkbook register.
(2) Petty cash. Candidates may maintain a petty cash fund of no more than $500 out of which they may make disbursements not in excess of $100 to any person or entity per purchase or transaction. If a petty cash fund is maintained, the candidate shall maintain a petty cash journal including the name of every person or entity to whom any disbursement is made, as well as the date, amount, and purpose of the disbursement.
(3) Credit card and charge card purchases. Candidates shall maintain a monthly billing statement or customer receipt for each disbursement from a credit card or charge card account showing vendors underlying the disbursement.
(4) Reimbursement of advances. Candidates shall obtain vouchers for any reimbursements they make to persons, including the candidate, for purchases made on behalf of the committee. The voucher shall be presented by the person making the purchase and shall include his or her name, the date and amount of the purchase, the vendor's name, and the manner of payment, including check number, credit card name, and cash. A receipt, bill, or invoice from the vendor shall be attached to the voucher.
(f) Bank records. Candidates shall maintain the following records received from banks and other depositories relating to accounts: (1) all periodic bank or other depository statements in chronological order, maintained with any other related correspondence received with those statements, such as credit and debit memos and contribution checks returned because of insufficient funds and (2) all returned and cancelled disbursement checks, including substitute checks which may be returned by the bank in lieu of canceled checks.
(g) Loans. The candidate shall obtain, maintain, and make available to the Board upon its request written documentation: (1) for each loan received, including loans made by the candidate; (2) for each loan repayment; and (3) that shows that a loan has been forgiven. The loan agreement shall be contemporaneous and in writing, shall be signed and dated by both parties, and shall provide all terms and conditions of the loan, including the amount and term of the loan. The candidate shall retain copies of loan checks and records of electronic transfers.
(h) Subcontracted goods and services. Candidates required to itemize the cost of subcontracted goods and services pursuant to Rule 3-03(e)(3)(ii) shall obtain and maintain documentation from the consultant or other person who or which subcontracts, containing all information required to be disclosed pursuant to that rule.
(i) Fundraisers. Candidates shall maintain records for all fund-raising events, including all house parties, which shall contain: the date and location of the event; the person(s) and/or organization(s), other than the candidate's authorized committee, hosting the event; an itemized listing of all expenses incurred in connection with the event, including all expenses whether or not paid or incurred by the authorized committee; and the contributor name and amount of each contribution received at or in connection with the event. This subdivision does not apply to activities on an individual's residential premises, including house parties, to the extent that the cost of those activities do not exceed $500 and are not contributions pursuant to §3-702(8)(ii) of the Code.
(k) Political advertisements and literature. Pursuant to New York Election Law §14-106, candidates shall maintain copies of all advertisements, pamphlets, circulars, flyers, brochures, letterheads, and other printed matter purchased or produced and a schedule of all radio or television time purchased and scripts used therein.
(l) Vendors. In addition to obtaining and keeping contemporaneous documentation (such as bills) for all goods and services provided by vendors, including campaign consultants and attorneys, and employees, when a candidate retains or otherwise authorizes a person or entity (including an employee) to provide goods and/or services to the candidate, and the candidate knows or has reason to believe that the goods and/or services to be provided directly or indirectly by this vendor will exceed $1,000 in value during the campaign, the candidate shall:
(1) keep a copy of the contemporaneously written contract with the vendor, which shall, at a minimum, provide the name and address of the vendor, be signed and dated by both parties, state the terms of the contract including the terms of payment and a detailed description of the goods and/or services to be provided, and shall include, if the contract was at any time amended, a contemporaneously written contract amendment, signed and dated by both parties and describing in detail the changes to the terms and conditions of the contract, or
(2) if no contemporaneously written contract has been entered into, keep a contemporaneously written record that includes the date the vendor is retained or otherwise authorized by the candidate, the name and address of the vendor, and the terms of the agreement or understanding between the candidate and the vendor including the terms of payment and a detailed description of the goods and/or services the vendor is expected to provide. If the agreement or understanding was at any time amended, the candidate shall create and maintain a contemporaneously written record describing in detail the changes to the terms and conditions of the agreement or understanding.
In addition to the records to be kept pursuant to subparagraphs (1) or (2) above, the candidate shall keep evidence sufficient to demonstrate that the work described in the contract was in fact performed and completed. Such evidence may include samples or copies of work product, emails, time records, phone records, and photographs or other documentary evidence. Where such evidence is nonexistent or unavailable, the candidate shall maintain affidavits signed by the vendor and either the candidate, treasurer, or other campaign representative having first-hand knowledge, describing the goods or services provided and the reason(s) why documentary evidence is nonexistent or unavailable.
(m) Advances. In such form as may be prescribed by the Board, candidates shall maintain records of advances which shall include the name and address of each person who made an advance on behalf of the authorized committee, the amount so advanced, the name and address of each payee to whom advanced funds were paid, the amount paid, and the purpose of each payment.
(n) Business dealings with the City. For each individual or entity making a contribution, loan, guarantee or other security for such loan in excess of the amounts set forth in §3-703(1-a) of the Code, candidates shall obtain and maintain all records specified by the Board regarding any response, or any failure to respond, concerning whether such individual or entity has business dealings with the City. Such record, at a minimum, shall request that the contributor provide the name of the agency or entity with which such business dealings are or were carried on and the appropriate type or category of such business dealings.
(o) Travel. Candidates shall obtain and maintain originals and copies of all checks, bills, or other documentation to verify campaign-related travel transactions reported in disclosure statements. In addition to the above, for all travel, with the exception of travel by public transportation within New York City, candidates shall create and maintain a contemporaneous record describing the campaign-related purpose of the travel, the complete travel itinerary, the dates of the travel, and the names of all individuals who participated in the travel. For travel by private car, candidates must create and maintain a contemporaneous travel log providing, for each trip and each vehicle, the names of the driver and passengers, the date(s) and purpose of each trip, the itinerary, including all the locations of any campaign events and other stops, the beginning and ending mileage, and the total mileage. Travel between two stops is considered an individual trip for logging purposes even if the stops are part of a multi-stop itinerary. For the purposes of reporting and reimbursing campaign expenditures, candidates shall calculate expenditures for travel by private car based on mileage according to the provisions of directive six of the New York City Comptroller.