Political Financing Handbook for Nomination Contestants and Financial Agents (EC 20182) – December 2018
Note: This handbook is to be used for contests starting on or after December 21, 2018. For earlier contests, please use the 2016 version of the handbook.
10. Other Nomination Campaign Expenses
This chapter discusses nomination campaign expenses other than nomination contest expenses or the contestant's personal expenses and provides examples of typical expenses in this category. It covers the following topics:
- What are “other” nomination campaign expenses?
- Typical other nomination campaign expenses (nomination contest fees, compensation paid to the contestant, fundraising expenses, unused inventory, interest on loans, auditor's fees and cost of preparing reports)
What are “other” nomination campaign expenses?
Certain nomination campaign expenses that are reasonably incurred as an incidence of the contest are not to be included as nomination contest expenses or the contestant's personal expenses and are not subject to the expenses limit. These expenses are called “other” nomination campaign expenses.
These expenses must be reported because they must be paid for using campaign funds, or they must be accepted as non-monetary contributions or transfers.
Expenses before or after the nomination contest
An expense for property or a service used before the start of the nomination contest is a nomination campaign expense only to the extent that it was reasonably incurred as an incidence of the contest.
The following question can be asked to determine whether or not an expense incurred before the contest is a nomination campaign expense: if the contestant was not planning to participate in a future contest, would the expense have been incurred?
An expense for property or a service used after the selection date is a nomination campaign expense only to the extent that it is reasonably serving some purpose related to the contest.
Note: The contest start date and selection date are indicated in the nomination contest report provided by the registered association or the registered party that held the contest.
- The campaign rents an office on March 1, two weeks before the contest period starts. The selection date is April 30. The rental agreement is for two months and the rent is $300 a month. The nomination contest expense to be recorded is the rent for the month of April, plus the rent for 17 days in March: $300 + (17 / 31 x $300) = $464.52. The remaining amount, $135.48, is recorded as an other nomination campaign expense.
- After the selection date, the contestant invites volunteers to a thank-you party. Although the event is outside the nomination contest period, the expense is incurred as an incidence of the nomination contest. Accordingly, the expense has to be reported as an other nomination campaign expense.
Typical “other” expenses
Nomination contest fees
Nomination contestants might be required to pay a contest entry fee to the registered party or the registered association organizing the contest. These fees are other nomination campaign expenses.
Note: When a refundable compliance deposit is required, it is recorded as a transfer to the registered party or association rather than as an expense. If the deposit is refunded to the contestant, it is recorded as other cash inflow rather than as a transfer back to the contestant.
Compensation paid to the contestant
Compensation may be paid to the contestant from the campaign bank account.
It is advisable to include a written contract or other documentation with the contestant's return about any compensation paid because, in the absence of evidence, the payment of salaries may be considered an inappropriate use of campaign funds that would need to be returned.
Some fundraising expenses are other nomination campaign expenses rather than nomination contest expenses, even if the fundraising takes place during the contest period. See Fundraising expenses in Chapter 6, Fundraising, for more information.
Interest on loans before and after the contest period
Interest accrued on loans before and after the contest period is an other nomination campaign expense.
Fees charged by the auditor to audit the nomination contestant's campaign return are an other nomination campaign expense. The Canada Elections Act does not subsidize audit service fees of a nomination contestant.
Cost of preparing reports
Expenses associated with fulfilling the various reporting obligations set out in the Canada Elections Act are other nomination campaign expenses.
The cost of a courier service used one month after the selection date to send the contestant's return has to be reported as an other nomination campaign expense.