[LPGa Executive Committee] Accounting For The Leveling Fund

[Mark Mosley]

*I have what I believe is a minor critique of how the money transfers 
between the Leveling Fund and the Sec of State are being documented in 
the Treasurer's reports.**
**
**The short of it is that this money transfer between the LPGa and the 
Sec of State should not be included as Income or Expense, but should be 
balanced between the Leveling Fund bank account and a, yet to be 
created, Receivables account that records the money being held by the 
Sec of State that will be returned to the LPGa.**
**
**For those of you on the ExCom who are not familiar with what the 
Leveling Fund is and why it exists, you can **go here and review 
<http://freedomindeed.com/lpga/levelingfund/>**what I wrote about it 
before the 2019 LPGa convention.  This should only take you a few 
moments and will inform you about why this fund is relevant to our 
efforts to place candidates. **
**
**Let me illustrate the nature of these transactions. For a moment, 
let's play pretend.**

You are my super duper ultra-precise bookkeeper and this is what you 
have observed:*

 1.

    *Every March on even numbered years I give $100 to my friend, Joe*

 2.

    *Every March on odd numbered years Joe returns that $100 back to me*

 3.

    *And this money transfer game has continued, with integrity, for
    almost thirty years*

*What would you call this behaviour?*

*How would you account for this in your financial books?*

*
At its core this is what is happening between the LPGa and all the 
government offices that collect partisan candidate filing fees, mainly 
the Secretary of State but also, potentially, all the respective 159 
county voter registrars.  Yes, I know this is really weird but consider 
the source.  This is specified in the Georgia Election Code, 
specifically, OCGA **§ 21-2-131.

I have two reasons for my objections to how this is carried in the 
books:***.W

  * *It confuses the Income statement.  The Income statement will show a
    huge Expense for filing fees in the even numbered years and huge
    single chunk of Income in the odd numbered years.  The reality is
    that the Leveling Fund money was LPGa Income only once when it was
    originally raised between 2000 and 2004, and since then has only
    been transferred to the Sec of State and back.  And further, the
    Income statement needs to accurately show real Income/Expense for
    the current year or month.  This would be line items for membership
    dues, pledges, current fundraising efforts, etc.
    *

  * *The amount of money the the Sec of State is holding is
    "disappeared" until it suddenly appears as Income in the odd
    numbered year.  For reasons of awareness, transparency and
    institutional memory the money held by the Sec of State that we
    expect to be returned should always be visible to the ExCom.*

*Ryan, may I have a few moments to answer questions about this at 
tonight's meeting?  There is no compelling reason for any immediate 
action from Evan or the Body, it is most important that all of us on the 
ExCom are well informed and have time for due consideration, but I do 
feel that the issue needs be raised at this time.*

-- 

Mark Mosley
mark at markmosley.com
(404)826-1606

restive America ... What have you been thinking?

“... the slave must know no law higher than his master's will.”
-- Frederick Douglas

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