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Annual Report on Election Finances January 1, 2012 to December 31, 2012

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Annual Report on Election Finances January 1, 2012 to December 31, 2012 Annual Report on Election Finances January 1, 2012 to December 31, 2012 Office of the Chief Electoral Officer Annual Election Finances Report 2012 1 Introduction This report summarizes the financial activities of the Liberal Party, the New Democratic Party and the Progressive Conservative Party for the period January 1, 2012 to December 31, 2012. The original of this report has been forwarded to the Queen’s Printer for reproduction purposes and availability to the public. A copy has been supplied to the Legislative Librarian for further reference by Members of the House of Assembly and summary information is also available for viewing on the Elections Newfoundland and Labrador webpage at www.elections.gov.nl.ca. Office of the Chief Electoral Officer 2 Annual Election Finances Report 2012 History of Election Finance Legislation The Elections Act, 1991 (“Act”), which was passed by the House of Assembly in June 1992, provided for the comprehensive regulation of financing by political parties, district associations and non-affiliated candidates in elections. Part III of the Act dealing with election finances was proclaimed into force on October 1, 1993, but pertained only to registered political parties and registered candidates in elections. Initially, it was intended that experience with election finance regulation of political parties would be evaluated before proclaiming Part III to pertain to district associations. This partial proclamation necessitated an amendment to Part III in December 1993 in the form of a transitional provision that treated all candidates in an election as if they were non-affiliated candidates. On January 26, 1996, the Government of Newfoundland and Labrador issued a policy statement, with the agreement of all political parties, which placed further restrictions on district association activities during the 1996 General Election campaign period. Significant amendments to the Act received Royal Assent on June 5, 1998, to take effect on September 3, 1998. The most significant of the new amendments from an election finance perspective was the removal of annual contribution limits for individuals and corporations who wish to donate to a political cause. Also, the amended Act is no longer applicable to the operation of local political district associations. The Act places the onus on the various political parties for controlling and reporting on the financial activity of their district associations with respect to political fundraising by requiring all such funds to be channelled through the political party accounts. Further amendments to the Act, which affected certain provisions of Part III dealing with election finances, received Royal Assent on June 14, 2007. These provisions changed the official length of time for a campaign period to end four months from polling day as opposed to the previous six month period, increased the candidate nomination fee deposit to $200 from $100, and made refund of the nomination fee contingent on timely filing of election finance reports as opposed to the previous process where refund of the nomination fee deposit was contingent on a candidate receiving at least 15 per cent of the popular vote in their district. Office of the Chief Electoral Officer Annual Election Finances Report 2012 3 Election Finance Compliance ANNUAL FINANCIAL STATEMENTS Under Part III of the Act, registered political parties are subject to fundraising guidelines and to the public disclosure of their financial affairs in the form of an annual filing of audited financial statements. The deadline for filing of the annual Political Party statements is legislatively set at April 1 of the year following the year to which they relate. The three political parties registered with the Office of the Chief Electoral Officer at the beginning of the 2012 calendar year filed the required audited financial statements pertaining to 2012 and their financial statements have been certified by the Chief Electoral Officer as having met the requirements of the Act. The New Democratic Party and the Progressive Conservative Party filed the required financial package by the April 1, 2012, deadline. The Liberal Party was granted an extension to the deadline after the Office of the Chief Electoral Officer reviewed those reasons and determined that they did not involve willful intent or neglect on the part of their Chief Financial Officer. The Liberal Party Statements were received July 24, 2013. Appendix A to this report presents a summary of the annual financial statement information provided by the parties for 2012. The actual financial statements on which this summary is based may be viewed at the Office of the Chief Electoral Officer during normal business hours. POLITICAL CONTRIBUTIONS - ANNUAL Subsection 299(3) of the Act requires that a registered political party shall file, along with the annual financial statements required under Section 303 of the Act, a listing with respect to contributions received in the year that either individually or in sum exceeds $100 together with the name and address of the contributor(s). Appendix B to this report contains a comprehensive listing of contributions to the reporting parties made during the period covered by the report. Also, in instances where funds raised by local district associations are transferred to political parties and those funds contain amounts that would be considered contributions under the Act if the contribution were made directly to the party, a listing of contributors to the district association must be supplied by the party involved. Any such contributions are incorporated into the comprehensive listing contained in Appendix B. OTHER ISSUES In general, there were very few compliance problems encountered as a result of the review of the political party’s 2012 financial filings. All compliance issues associated with these filings were considered minor in nature and have been resolved to the satisfaction of the Chief Electoral Officer. Office of the Chief Electoral Officer Annual Election Finances Report 2012 5 APPENDIX A REGISTERED POLITICAL PARTIES COMPARATIVE SUMMARY 2012 FINANCIAL STATEMENTS Office of the Chief Electoral Officer Annual Election Finances Report 2012 7 STATEMENT OF FINANCIAL POSITION OF POLITICAL PARTIES REGISTERED UNDER PART III AS AT DECEMBER 31, 2012 Liberal Party NDP PC Party 2012 2011 2012 2011 2012 2011 $ $ $ $ $ $ Assets Cash 12,551 21,624 44,698 - 716,909 300,660 Accounts Receivable 14,947 4,051 1,120 3,480 30,257 94,589 Funds in Trust/Term Deposits - - - - - - Fixed Assets - - 649 927 2,229 2,786 Other - - 2,014 - - 3,891 Total Assets 27,498 25,675 48,481 4,407 749,395 401,926 Liabilities Current Demand Loan/Bank Indebtedness 648,175 646,675 - 6,111 - - Election Payables - - - - - - Payables and Accruals 160,062 135,583 4,501 49,360 10,121 40,653 Total Liabilities 808,237 782,258 4,501 55,471 10,121 40,653 Surplus (Deficit) (780,739) (756,583) 43,980 (51,064) 739,274 361,273 Total Liabilities & Surplus(Deficit) 27,498 25,675 48,481 4,407 749,395 401,926 1 Office of the Chief Electoral Officer 8 Annual Election Finances Report 2012 STATEMENT OF INCOME AND EXPENSES FOR POLITICAL PARTIES REGISTERED UNDER PART III FOR THE YEAR ENDED DECEMBER 31, 2012 Liberal Party NDP PC Party 2012 2011 2012 2011 2012 2011 $ $ $ $ $ $ Income Contributions 21,274 266,000 47,126 226,219 588,920 460,100 Advertising 10,500 16,630 - - - - Convention/Fund Raising 199,486 92,850 75,187 1,991 94,412 198,028 Interest - - - - - - Transfers In 12,944 14,400 55,283 7,025 177,656 106,875 Nomination/Membership Fees - - - - - - Other/Miscellaneous 26,836 1,170 19,517 10,585 1,465 51,701 Total Income 271,040 391,050 197,113 245,820 862,453 816,704 Expenses Advertising/Printing 2,175 2,602 2,350 - - - Convention - - - - 42,036 294,117 Bad Debts - - - - - - Interest & Bank Charges 7,543 3,249 3,108 2,996 1,417 1,640 Depreciation - - 278 397 557 696 Elections - Federal/Provincial 11,529 218,284 1,372 333,143 5,414 872,211 Fundraising 106,323 27,778 56,256 - 146,330 68,824 Interest on Debt 29,595 32,922 - - - - Miscellaneous 3,752 2,124 - - - - Office Rent 13,274 12,266 5,848 8,129 17,628 16,272 Office Supplies 14,224 9,122 2,071 1,073 19,442 13,742 Office & Equipment 345 3,945 - - - - Caucus/Executive - - 253 4,683 - - Professional Fees 5,085 6,370 5,396 4,520 49,869 38,994 Research/ polling - - - - 13,244 152 Wages & Benefits/Commissions 59,740 52,934 14,743 202 99,064 109,459 Telephone/Internet/Utilities 9,570 16,493 9,346 4,746 6,860 9,427 Transfers Paid Out 5,874 27,656 - - 36,414 - Travel/Meetings 26,167 7,819 1,048 2,162 46,177 43,491 Total Expenses 295,196 423,564 102,069 362,051 484,452 1,469,025 Excess (Deficiency) (24,156) (32,514) 95,044 (116,231) 378,001 (652,321) Office of the Chief Electoral Officer 2 Annual Election Finances Report 2012 9 APPENDIX B LISTING OF POLITICAL CONTRIBUTIONS VALUED AT GREATER THAN $100 MADE TO POLITICAL PARTIES DURING THE PERIOD JANUARY 1, 2012 TO DECEMBER 31, 2012 Office of the Chief Electoral Officer 2012 CALENDAR YEAR Annual Election Finances Report 2012CONTRIBUTIONS TO POLITICAL PARTIES 11 EITHER INDIVIDUALLY OR IN TOTAL VALUED AT MORE THAN $100 Contributor City/Town/Province Amount Party 10664 Newfoundland Ltd. St. John's, NL 1,000.00 PC 4536631 Canada Inc. St. John's, NL 2,500.00 PC 58756 Newfoundland & Labrador Inc Deer Lake, NL 400.00 Lib A Harvey & Company Limited St. John's, NL 10,000.00 PC Adey, Tony Benoit's Cove, NL 100.00 NDP Adey, Tony Benoit's Cove, NL 37.50 NDP AE Consultants Ltd.
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