FAQs

When can I close a surplus funds account?

When the balance reaches $0.  File the last C-4 report and indicate that it is the "final" report.

Can I invest my surplus funds?

Yes.  Campaign funds or surplus funds may be invested in bonds, certificates, tax-exempt securities, savings accounts or other similar instruments in financial institutions or in mutual funds. Financial institutions other than banks, savings and loan associations, and credit unions may NOT be used as the campaign depository into which contributions are deposited and out of which campaign expenditures are made. However, brokerage houses and other financial institutions may be used for investing campaign funds so long as the investment by the brokerage house or other institution is in the form of bonds, certifi-cates, tax-exempt securities, and mutual funds.

Notify the PDC when you invest campaign or surplus funds:

  • Notify PDC by letter of the date, amount and the name of the financial institution where the surplus is invested. Do not report the investment as an expenditure on Schedule A or on the C-4 report.
  • Deposit all interest, dividends or income earned by the investment into the investment account. Re-port this income as miscellaneous receipts on line 1d of the C-3 report.
  • When the investment is terminated, re-deposit the principal plus the accrued earnings into the origi-nal campaign account. Notify PDC by letter that this redeposit has been made. Do not report this transfer as a contribution on the C-3.
  • Check with the IRS or your personal tax consultant about any tax liability that the investment may create.

What is a non-reimbursed public office-related expense?

A "non-reimbursed public office-related expense" is an expenditure incurred by an elected or appointed official, or a member of his or her immediate family, solely because of being an official. WAC 390-24-032 If the official incurs a non-reimbursed public office-related expense that also, in any manner, could be considered personal in nature, PDC staff recommends paying the expenditure with personal funds, and then seeking reimbursement from a surplus funds account only for that specific portion that is directly related to his or her elected office. 

 

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