Kansas Governmental Ethics Commission Why are missing, large money transfers between a Kansas PAC and a federal 527 PAC from 2006 ignored by the Kansas Governmental Ethics Commission? Are a missing $25,000 transfer and two $15,625 transfers big enough to trigger the need for an “errors and omissions” notification, and the need for an updated PAC report? The Ethics Commission has known about these omissions since August 2007 but has taken no action.

A review of the IRS 8872s filed by the Young Democrats of America shows three large transfers between the ProKanDo PAC and the YDA’s 527 PAC in June and July 2006.

Young Democrats of America\'s IRS 8872

The June 30, 2006 IRS 8872 filed by the Young Democrats of America shows a $25,000 payment by the ProKanDo PAC on June 28, 2006. The total receipts for YDA in this report were $33,000 (76% from ProKanDo), while their expenditures were $29,351. YDA would have been seriously in the red financially without this “loan” from the ProKanDo PAC. ProKanDo PAC has never reported this $25,000 loan to the YDA 527 to the Kansas Ethics Commission.

IRS 88782:  $25,000 from ProKanDo to YDA

Less than two weeks after the end of the June 30, 2006 IRS 8872 reporting period, YDA turned around and sent two $15,625 payments back to the ProKanDo PAC:

IRS 8872:  $15,625 from YDA to ProKanDo

IRS 8872:  Second $15,625 from YDA to ProKanDo PAC

YDA reported the purpose of their expenditures as “Fundraising”. ProKanDo PAC has NOT reported receiving either of the $15,625 checks from YDA.

Here’s the math from the ProKanDo perspective: -$25,000 + $15,625 + $15,625 = $6,250.

ProKanDo Receipts and Expenditures, July 24, 2006

The ProKanDo PAC only reported a $6250 contribution from YDA in its July 24, 2006 PAC report (report is large 14 MB file — look on p. 17.)

ProKanDo PAC Report:  $6250 from YDA to ProKanDo PAC

Kansas law requires ProKanDo PAC to report ALL THREE transactions, not the one. The Ethics Commission has known about these omissions in the ProKanDo report since August 2007 and has chosen to take no action.

The Ethics Commission refused a request in Jan 2008 for an individual to address them about actions the Commission was not taking regarding PAC reports. Continued failure of the Ethics Commission to enforce ethics regulations promptly on PACs should be scrutinized by the Kansas legislature in 2009.

The Kansas Ethics Commission should act swiftly to eliminate the perception they are ignoring violations of Kansas ethics regulations.


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