Debts and obligations must be reported continuously until paid. Unpaid bills and written contracts or agreements to make expenditures are considered debts. Regularly recurring administrative expenses such as rent, utilities and salaries are not considered to be debts until they are past due.
Reporting on PAC forms
PACs report debt in the “Debts and Other Obligations Owed by the Committee” category on Form 3X, supporting Line 10.
A debt of $500 or less is reportable on Schedule D, supporting Line 10, once it has been outstanding 60 days from the date incurred (the date of the transaction, not the date the bill is received). The debt is disclosed on the next regularly scheduled report.
A debt exceeding $500 must be reported on Schedule D, supporting Line 10, in the report covering the date on which the debt was incurred.
To itemize a debt, the committee discloses:
- Complete name and address of creditor
- The purpose of the debt
- The amount outstanding at the beginning of the reporting period
- Additional amounts incurred on the debt
- Payments made to reduce the debt
- The outstanding amount owed on a debt or obligation
If the exact amount of a debt is not known, the PAC reports an estimated amount. The committee must either amend the report (and all subsequent reports) to indicate the correct amount, once a correct figure is known, or include the correct figure, along with an explanation of the change, in the report for the reporting period during which the amount is determined.
Reporting with FECFile
To enter a debt go to the Summary Page tab, right click on “Line 10 Other Debts Owed BY the Committee” and select ”new.”