More “fiscal responsibility” from the RNC

It seems the “fiscally responsible” Republicans in charge of the Republican National Committee have found new meaning for the term “office supplies:”

Listed on the report in the category of “office supplies” are purchases from a New England winery and a Capitol Hill liquor store, as well as more than $3,800 from a Florida clothing store. The category of “meals” also seems to extend to the sartorial, with a $450 purchase from a high-end Manhattan boutique — one that has no restaurant or take-out shop on the premises — falling into that category, as listed on the RNC’s reports to the FEC. That purchase, as well as one for more than $500 from the Florida clothing store, are attributed to RNC Deputy Finance Director Debbie LeHardy, who, according to the report, was reimbursed for them.

LeHardy also received reimbursement for more than $2,800 in “tips” between December 2009 and February 2010, according to the reports.

[…]

In February, as the RNC’s finance chiefs gathered in Boca Grande, Florida, for their Finance Leadership Meeting — the meeting at which the RNC’s “fear” strategy for donors was revealed in a telling PowerPoint presentation — the RNC made purchases totaling $3817 at Fugate’s. On its report, the RNC labels the purchase as “office supplies,” but Fugate’s general manager Nancy Blank says her store doesn’t sell office supplies. Fugate’s sells men’s and women’s clothing and accessories, Blank told AlterNet. “We’re a specialty department store,” she said.

Of that total LeHardy, the RNC deputy finance director, received direct reimbursement for $513. The rest was a separate purchase made the next day, and billed to an RNC American Express account. The name of the AmEx cardholder is not listed on the FEC report. My calls for comment to the RNC and to LeHardy were not returned as of press time.

Records also show that LeHardy received reimbursement for $282 spent at Boca Grande Outfitters, which bills itself as “the area’s most complete saltwater fly fishing and light tackle outfitter.” The report designates the reimbursement for “meals.” Aaron Sutcliffe, a clerk at BGO, said the store doesn’t sell food.

In December, RNC reimbursed LeHardy for $453 worth of “meals” from Henri Bendel, a posh boutique on New York’s Fifth Avenue. Bendel’s is an upscale source for costume jewelery, handbags and make-up. The store bills itself as a “Girls’ Playground for trendsetting young women from around the world.”

Clearly the folks at the RNC have a good handle on what it means to be “fiscally responsible.”

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4 thoughts on “More “fiscal responsibility” from the RNC

  1. Question: How do you think expense reports are reviewed for appropriateness? Do you think that somebody scrutinizes the expense receipts to see if they are applicable to the category they are listed under? Do you think they have an actual expense form they use for reimbursement?

    What can you tell me about the Democratic Party side of the coin that would create confidence in me that this does not happen on the Blue side?

    No sarcasm intended. I am interested in how political parties ensure that expenses are accurate and appropriate.

  2. PB-

    There is a difference between internal organizational expense reports/accounting and the FEC reports that are public.

    Most campaigns I have worked in, who have consultants that may work with high donors, invoice their expenses on a separate invoice. So for example, someone is taken to dinner, the consultant’s invoice will read something like “Food Expense on behalf of Fundraising”. The consultant maintains the actual receipt. The FEC report lists a payment to the consultant (not the bar) and uses the invoice as the accounting document if an audit is done. The public only sees the FEC report.

    You can go to http://www.fec.gov to pull up actual FEC reports to see what the form looks like.

    1. Thanks, Laurie

      Am I correct then that only expense reports that are audited would have a correlation between the receipt and the expense? How else would one know that $100 for a handbag was listed as a food expense?

      1. PB-

        The report that would be audited by the FEC is the FEC report. The FEC report has no receipts submitted with it, but committees must hold the receipt in case of audit. The $100 expense listed as food when it is really a purse is internal audit….or was entered on the FEC as food, but there is no restaurant located at the address listed on the report. (Investigative reporting.)

        The RNC’s problems are because whomever was in charge of their accounting submitted and reimbursed inappropriate expenses. AND then submitted that record to whoever was doing the FEC report. Or more than likely, it was entered into an electronic data system that automatically generates the FEC report and no one reviewed the report closely before submitting.

        There is usually two individuals/departments that do the accounting…1) internal (like the accountant) and 2) FEC report (the fundraising staff). These errors could have been caught and corrected prior to the submission of the report if there was coordination between the two departments.

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