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Preventing misappropriation of funds

April 25, 2023

Some federal political committees have encountered instances where committee staff misappropriated funds. In addition to the obvious hardship, misappropriation often causes committees to file inaccurate disclosure reports with the FEC, leaving them vulnerable to enforcement action and potential liability for those reporting errors. To help protect committees, the FEC provides a safe harbor for political committees that have certain internal controls in place to prevent misappropriation and associated misreporting. For more information on internal controls to prevent misappropriation and what to do if misappropriation is discovered, please consult this page.