toll free: Official Agent Handbook

Transcription

1 Official Agent Handbook 1

2 Disclaimer This handbook sets out the Green Party of Canada s current understanding of how to organize under the Canada Elections Act and is issued to assist you in understanding how you can work with the Green Party of Canada (GPC). The views expressed in this handbook are not law and are not intended to replace the official text of the Act. How the Act applies to any particular case will depend on the individual circumstances of that case. Elections Canada is constantly revising interpretations of the Act and so you are encouraged to read the manuals, information sheets, bulletins and forms published by Elections Canada as well. If in doubt phone the National Office of the Green Party of Canada at,. Copyright 2007 Green Party of Canada 2 Official Agent Handbook

3 Contents Getting Materials... 4 Duties... 5 Campaign Bank Account... 5 Accepting Donations... 5 Payment of Expenses... 6 Issuing Receipts... 6 Books and Records Use the EFR... 6 Accepting and Recording Transfers... 7 Authorizing Advertising Materials... 7 Filing the Return... 7 Elections Canada Requirements... 8 Campaign Bank Account... 8 Issuing Official Receipts... 8 EC Receipt of Official Receipts... 9 EC Candidate s Statement of Personal Expenses... 9 EC Candidate s Electoral Campaign Return... 9 CRA T Contributions to a Candidate at an Election Information Return EC Candidate s Statement of Surplus EC Official Agent s Checklist Official Agent Handbook 3

4 Every candidate in a federal election is required by Canada s Election Act to have an Official Agent for their campaign. In essence, the Official Agent controls the flow of money, materials and services provided in lieu of money, and ensures the campaign s finances and activities are compliant with the Canada Elections Act. It is important to have a good working relationship with the candidate and with the campaign manager, if there is one. You will need to be in daily contact with these people. Please also read the following booklets in conjunction with this one for a more complete idea of what a political campaign entails: Candidate Handbook Campaign Handbook Sample Campaigns Handbook Nomination Contestant Handbook If this is your first time as an Official Agent there are a few considerations you need to make. Before you agree to the position be honest about how comfortable you are dealing with finances and keeping accurate records. If you aren t good with finances or with numbers make sure you make the candidate aware of this before you agree to keep track of the finances for an elaborate campaign. Make sure you are aware of the financial goals for the campaign you are involved in. If you have done your own taxes you can manage the responsibilities of an Official Agent for a small first time campaign. Make sure you get a copy of the Electronic Financial Return (EFR) software, (available for download from on the GPC Campaign on a CD, or from the Returning Officer when the candidate registers). This will save you a lot of agony and it allows you to print off all the receipts required by the campaign. This software will automatically record all contributions in the correct locations and tally up the campaign return automatically for you. Not only does the EFR software allow you to keep accurate records it will automatically produce your final report which can be printed off and ed to Elections Canada which in turn gets the $ nomination deposit returned in a matter of weeks instead of months. Getting Materials As the Official Agent for a candidate in a federal election you will need to take possession of all the paperwork required by Elections Canada. Before the election is called and your candidate is officially nominated and registered, you can find most of the forms on Elections Canada s website ( or the GPC Campaign on a CD. Forms, manuals, checklists, and sample documents are all found in the Candidates Section under Information for Political Parties, Candidates and Others. In the Candidates Section explore the sub-sections called Manuals and Forms. Be sure to explore the Supplemental forms section where you will find a lot of sample paperwork for Official Agents. These documents are all in.pdf format, so ensure you have Adobe Acrobat Reader installed in your internet browser to access these documents. You can download this free program at products/acrobat/readstep2.html to ensure you have access to these helpful documents. As the Official Agent, you should accompany the candidate when they register with the Returning Officer in your riding. By accompanying the candidate when he or she is submitting the nomination papers you can personally accept the campaign paperwork from the Returning Officer. The Returning Officer will give you a document folder that contains EC Electoral Campaign Return, and many more documents. 4 Official Agent Handbook

5 It is recommended that you accept and use the EFR Software provided in this folder. This software replaces all the forms the Returning Officer gives you and you should never ever accept the paper tax receipts if you use the EFR Software. The EFR Software allows you to print your own receipts valid for income tax purposes. If you do accept the paper copies of the receipts you will lose the $ nomination deposit without a chance to appeal or correct the situation should you not return one single unused receipt or the proper carbon copy of an issued receipt. It is an unnecessary risk and the EFR Software will, essentially, be your one stop shop for keeping records because as you enter information it will be sorted properly and will allow you to print the campaign return immediately as well as a copy to Elections Canada for a faster turn around on the $ nomination deposit. Duties Campaign Bank Account Once you have been accepted as a Candidate s Official Agent by the Returning Officer, your must open a separate bank account for the electoral campaign in a Canadian Financial Institution. The account must name the account holder as Name, Official Agent (e.g. John Doe, Official Agent). Failure to open this account results in a summary conviction of fines up to $ and up to six months in jail, or both. The campaign bank account must be completely separate from all other bank accounts, especially the EDA s bank account. All of the candidate s financial transactions for the campaign that involve the payment or receipt of money are to be paid from, or deposited to, the account by the Official Agent. This means that if there is a fundraising campaign all of the fundraisers will need to be aware on how to record contributions before they are given to you, the Official Agent, for deposit into the campaign bank account. It is very important that fundraisers record the contact details for all contributors before they pass on the contribution to you so you can ensure the contributor does not violate his or her contribution limit. This means you will have to double check your record books to determine whether or not the contributor has made a donation to the campaign and that any additional donations does not exceed their contribution limit. All contributions need to be deposited into the campaign bank account to ensure you have supporting documentation of the contributions when you file the electoral campaign return. Accepting Donations The official agent must receive all contributions to the campaign. This means that all money given to a canvasser, fundraiser or to the candidate must be turned over to the Official Agent for deposit in the account. Neither the candidate nor any campaign worker may keep any part of that money to pay expenses. Non-monetary contributions, such as the donation or loan of goods and services, must also be made through the Official Agent. This is important because the donated goods and services are electoral campaign expenses that may be subject to the election expenses limit. There is more information on recording non-monetary donations in the return in the Receipts for Non-Monetary Donations section below. A word of caution: The campaign bank account must be completely separate from all other bank accounts, especially the EDA s bank account. Even if you do not plan on accepting any contributions or incurring any expenses, this account must be opened. Cheques must be made payable to the Official Agent. Cash contributions are now limited to $20. If someone wishes to contribute more than $20 it must be donated by using a credit card or personal cheque. Official Agent Handbook 5

6 When accepting contributions an Official Agent must: Record the contact details of the contributor and the contribution amount in the your books. Ensure anyone involved in fundraising is recording the details of the contributor and passing this on to the Official Agent. Ensure that the contribution does not put the contributor over their electoral contribution limit by reviewing previous contribution records. Issue a receipt not valid for income tax purposes for non-monetary contribution within 30 days of receiving it. If ineligible, return the contribution within 30 days or forward it to the Receiver General. Issue a receipt valid for income tax purposes, for monetary contributions of $20 or more. Payment of Expenses The Official Agent is the only person authorized under the Canada Elections Act to pay or to authorize the payment of election expenses. The only exceptions are the candidate s personal expenses paid by the candidate, and the expenses paid out of a petty cash fund by persons authorized, in writing, by the Official Agent. Issuing Receipts The Act requires that the Official Agent issue a receipt for all monetary and non-monetary contributions in excess of $20 or more. Monetary donations of $20 or more must get a receipt valid for income tax purposes. All non-monetary donations must receive a receipt not valid for income tax purposes, which is essentially an acknowledgment that you received a specific good or service worth a recorded and specific value. All monetary donations of $20 or more that can not be issued a receipt valid for income tax purposes, including donations that were received for the campaign before the writ was dropped, must be issued with a receipt not valid for income tax purposes. It is best to have the local EDA accept all contributions prior to the candidate being registered so the EDA can issue tax receipts for all the money raised which can then be transferred to the campaign account. The Official Agent is the only person who can issue receipts, valid for income tax or not, for the campaign. An official receipt is a receipt that is valid for income tax purposes. It is wise for the Official Agent to create/buy their own receipts for the campaign to account for nonmonetary donations. Official Agents need generic receipts that contain 2 copies, one for the contributor and one for the campaign records. A copy of every single receipt will get submitted with the campaign return. Receipts for Non-monetary Contributions If someone contributes anything other than money, an Official Agent must provide the contributor with a receipt not valid for income tax purposes unless the goods and services were deemed to have no commercial value. No commercial value is defined to be a good or service provided by a person who is not in the business of providing that property or service and the amount for it is $ or less. These receipts basically acknowledge the worth of the goods or services donated. An Official Agent must calculate the fair market value of all goods and services given to the campaign. Fair market value is the lowest price available to anyone else seeking the same good or service. So, if a candidate is lent a car for the election an Official Agent should determine the fair market value of a similar car by getting an online quotation for a similar car for the same length of time. Print a copy of the website that shows the price and you have a car valued fairly. It is always best to simply take monetary contributions and buy everything for your campaign including all your goods and services, since any contributor who gives money will get a refund on their income tax. Books and Records Use the EFR Using the EFR Software will help ensure you file the campaign return properly and much more quickly. If any mistakes are made the software points it out and helps you correct it, rather than you getting to the last page to find the numbers don t add up then redoing the entire document a few dozen times in the hope you ve recorded everything properly. The EFR Software doubles as your books and records throughout a campaign 6 Official Agent Handbook

7 so you can be working on the campaign return throughout the election campaign rather than spending days on end after the campaign searching for missing shreds of paper. EFR also allows you to instantly identify contributors who have made multiple contributions so you know instantly if they ve exceeded their contribution limits and you are required to return a portion of any donation made. Plus, the software allows you to print the tax receipts valid for income tax purposes at home. And as an added benefit, Elections Canada runs a fully staffed support desk just for EFR support, so any questions you have about using the software can be answered by the people who designed it, throughout an election. The Official Agent must keep books and records of all contributions and expenses. This includes: If the amount of the contribution exceeds $20 obtain the name of the contributor, and if it exceeds $200, obtain both the name and address of the contributor recording a non-monetary contribution as both a contribution and as an expense in EC Candidate s Electoral Campaign Return; and issuing, accounting for and controlling all receipts, and returning unused income tax receipts to the Returning Officer within one month after election day. Accepting and Recording Transfers If the candidate receives non-monetary transfers from an EDA or Registered Party, the Official Agent must retain a copy of the Notice of Transfer/Receipt provided by the transferor. If none is provided, the Official Agent should contact the transferor or to get one. If nothing is provided at this point, the Official Agent can make a receipt/notice of receipt of goods and/or services that provides the date, details on what was provided, and from whom. It must also contain a cost breakdown of what was transferred at fair market value. Authorizing Advertising Materials Every piece of election advertising from television and radio commercials to flyers, brochures and signs shall mention in or on the message that its transmission was authorized by the Official Agent of the candidate or by the registered agent of the party, as the case may be. Filing the Return The electoral campaign return needs to be audited and filed with Elections Canada within four months of polling day. The return must be filed with the auditor s report, EC Candidate s Statement of Personal Expenses and all supporting documents. If the campaign you are involved in isn t very large, you should try to get the return to your Auditor within one to two months of the polling date. This gives you plenty of time to make any of the necessary corrections before filing the return with Elections Canada before the four month deadline. Failure to file the return correctly and on time forfeits the $ nomination deposit and is a summary conviction of fines to $ , jail time up to All election materials are legally required to contain the phrase Authorized by the Official Agent for NAME OF CANDIDATE [320]. If the materials you are using were transferred to your campaign from the Green Party of Canada (generic election materials), they must contain the phrase Authorized by the Registered Agent for the Green Party of Canada [320]. Official Agent Handbook 7

8 six months or, or both for anyone convicted (Official Agent and/or candidate). Throughout the electoral campaign you should be keeping records of all contributions and expenses as well as all bank statements for the campaign bank account. The bank statements must be for the campaign bank account opened according to Elections Canada s specifications Name, Official Agent (e.g. John Doe, Official Agent). No other bank account is a valid campaign bank account. It is also very important that the candidate keep receipts and invoices for their personal expenses to support their personal expense claims. Make sure the candidate provides you with EC Candidate s Statement of Personal Expenses within three months of polling day, as you will need this form to complete the return before you submit it to the Auditor and file it with Elections Canada. Even if they did not incur any personal expenses throughout the election period, the candidate must complete this form indicating such and sign it. Elections Canada Requirements As the Official Agent, you must provide the candidate with a signed statement consenting to act in that capacity. The campaign bank account cannot be an EDA bank account. The business of an EDA is separate from the business of a campaign even if their goals are the same. Campaign Bank Account The Official Agent is required by law to open a bank account labeled NAME, OFFFICIAL AGENT, (i.e. John Doe, Official Agent). Even if you do not plan to raise any money at all or accept any contributions, you must open this bank account. This will prove that you never received any monetary donations and the bank statements must be sent with the candidate s campaign return. The penalties for not opening this account are costly and severe. Issuing Official Receipts If you are using the EFR Software you should never accept the paper copies of the receipts because you can print your own copies at home. The EFR Software will identify whether or not a contribution receipt is official or not valid for income tax purposes for you. The Act requires that the official agent issue a receipt for all monetary and non-monetary contributions in excess of $20. Receipts valid for income tax purposes may only be issued by the Official Agent for monetary contributions received in the period beginning on the day the nomination of the candidate is confirmed by the returning officer, and ending on the day which is 30 days after election day, so long as the contributions received after election day were in transit on election day. Make sure that the proper copies of these receipts are given to the correct people, and that copies for your records are kept in a safe location. Make copies of these receipts to be doubly sure you have a record of them. 8 Official Agent Handbook

9 EC Receipt of Official Receipts If you are using the EFR Software you should never accept the paper copies of the receipts because you can print your own copies at home. If you did not accept the receipts and are using the EFR Software you can skip this section. Within one month of polling day, the Official Agent must return the unused Official Receipts to the Returning Officer. When the receipts are returned, your Official Agent should get form EC Receipt of Official Receipts from the Returning Officer. If the Returning Officer does not give this to you, make sure you ask for the form as some auditors require it to conduct their audit. Not all Returning Officers are aware that they must provide this form so they may not offer it. If you do not receive this form when the Official Receipts are returned, make sure you contact the Returning Officer to get a copy before your return is given to the Auditor. EC Candidate s Statement of Personal Expenses The candidate must provide this form to the Official Agent no later than 3 months after the polling day. Even if you incurred absolutely no personal expenses you must fill out this form indicating such. The candidate must provide receipts and/or proofs of purchase (such as receipts or items on a credit card statement) for every expense listed on this form and sign the form. The Official Agent must review this form and amend it accordingly, if required. This form must be submitted to the Auditor and filed with Elections Canada along with the rest of the return. EC Candidate s Electoral Campaign Return Using the EFR Software will allow you to generate this document once all contributions and expenses are recorded. It will print the document for you to sign and sent by post to Elections Canada with all the supporting documents. However, the main advantage here is that EFR also allows you to generate an electronic copy you can directly to Elections Canada for them to process your campaign return much more quickly and efficiently. ing a copy in addition to the official, signed and supported paper copy means your $ nomination deposit is returned in a matter of weeks rather than months. Make sure you read all the instructions carefully before you fill out this document. It is a good idea to make trial copies of these forms if this is your first attempt at filing an electoral campaign return. If you are having trouble with this document, please contact your regional organizer who can help or point you to an experienced Official Agent who can help. This is the most important form the Official Agent must fill out and file on time. You can find a sample document at in the Supplemental form section under Candidate Forms. It is essential to begin working on this form as soon as possible after the polling day. This document must be completed by the Official Agent and signed by both the Official Agent and the Candidate before it is sent to the Auditor. Once the final audit occurs, this document is then sent to Elections All returns must be filed with the auditor s report, EC Candidate s Statement of Personal Expenses and all supporting documents [451(4)]. Official Agent Handbook 9

10 Canada and arrives there within four months after polling date, so the sooner you start the process, the more time you have to make corrections and file it before the deadline. Failure to file this document on time means you will lose your $ deposit and incur other severe penalties from Elections Canada of a minimum $ fine and/ or minimum 6 months in jail or both. This is easily avoided if you file correctly and on time so don t put this task off until the last minute. CRA T Contributions to a Candidate at an Election Information Return This form is sent to CRA, Charities Division and not Elections Canada. Make sure you send the completed form T-2093 included in the candidate kit provided by your Returning Officer at the same time you file EC Candidate s Electoral Campaign Return. EC Candidate s Statement of Surplus Once the Official Agent has file EC Candidate s Electoral Campaign Return, Elections Canada will issue a Statement of Forecasted Surplus. At this time, the Official Agent must close the Campaign Bank Account and distribute the amount forecast by Elections Canada to the Registered EDA, or if there is not one present in the riding, to the National Party. Form EC Candidate s Statement of Surplus must be filled out and submitted to Elections Canada within 60 days of receiving the notice of surplus and 7 days after disposing of the funds. Additional Documents EC Official Agent s Checklist This can be found at in the Candidates section under Forms, Supplement. It is a very extensive document that you can check off throughout the campaign to ensure that you are meeting all your requirements as they come up. Please review it at the very beginning of the campaign and use it throughout the election campaign. added full name for clarity check sentence structure 10 Official Agent Handbook