[LPGa Executive Committee] Accounting For The Leveling Fund

[Evan Durkovic]

Hey Mark,

Thanks for the email. I have no problem changing the way it's reported to
what you described.

Thanks,
Evan

Evan Durkovic

On Mon, Apr 13, 2020, 2:35 PM Mark Mosley via Lpgaexcomm <
lpgaexcomm at lists.lpgeorgia.com> wrote:

> *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
> _______________________________________________
> Lpgaexcomm mailing list
> Lpgaexcomm at lists.lpgeorgia.com
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>
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