Reporting the Purpose of an Expenditure to the Board of Elections

Happy Saturday, Campaign Finance Enthusiasts!

Quick Summary: NC campaign finance reporting requires disclosing the purpose of expenditures; the easiest way to give the Board of Elections what it needs the first time is to use the approved purpose descriptions. Do that by selecting Purpose Code O for “Other” and typing or selecting from approved Purpose Descriptions.

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Two Things are True: First, the State Board of Elections and County Boards must review a metric ton of campaign finance reports. Second, they also try in good faith to check ‘em all.

The State Board plays an extensive Zone Defense.To do both, i.e., review a metric ton of reports meaningfully to do their jobs, like everyone, they use tricks of the trade to sort information and spot things to follow up on—one of those things they watch is how filers report the purpose of their expenses.

How to describe expense purposes is today’s Trap of the Week. Historically, form filers had to fill out both a “Purpose Code” and a “Purpose Description…” These are identified boxes on the Form 1310 which is the form for reporting disbursements from the campaign account (i.e., the money going out the door…).

Now, and you see this both in the Campaign Finance Manual on Page 58 and in the way the State Board analysts kindly and thoroughly offer commentary in the audit memos campaigns receive (see the 2023 list here for light reading…)…

Here’s what to do: select the letter “O” when you’re e-filing for “Other”. This is Box H on the paper form. Every time so says the State Board in their manual. Then, in the Required Remarks (Box K on the paper form), you type or select from a whopping 56 available, approved purpose code descriptions listed on Pages 60-61 of the Campaign Finance Manual linked here. We recommend keeping that list handy when you’re coding expenses on ElectaFile or paper or anything else.

To be fair, you can do your own creative writing on describing the purpose of an expenditure, and your creativity is the only limit. However, that sort of freelancing might raise an eyebrow and catch you some follow up. Better to not be an individual and instead stick with the program, as your high school coach might’ve said.

See you next time, The ElectaFile Team

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