FREQUENTLY ASKED QUESTIONS: FACIAL COMPLIANCE
1. What is a facial compliance review and why is the Commission reviewing reports and statements?
2. Is a facial compliance review a full audit?
3. Is a facial compliance review a sworn complaint?
4. Who is subject to a facial review?
5. Does receiving a notice of deficiency mean I am going to get fined?
6. I received a deficiency report, what do I do next?
7. With whom can TEC staff discuss the review?
9. What if I need more time to correct my report?
10. How do I correct my report or statement?
11. What if I disagree with the finding of a “deficiency”?
12. What if I decide I won’t correct my report even though it is not complete or accurate?
13. How do I know the review is over?
1. What is a facial compliance review and why is the Commission reviewing reports and statements?
The TEC is required to conduct Facial Compliance Reviews (FCRs) by section 571.069 of the Government Code. During a FCR, the TEC reviews a report or statement to determine if there are any apparent inaccuracies, errors, or omissions. If an issue is found during a FCR, the filer will have an opportunity to file a correction to the report at issue without penalty.
2. Is a facial compliance review a full audit?
No. During a facial review, the TEC only reviews the statement or report for apparent errors, omissions, or inaccuracies and political contribution maintained balances. The TEC may conduct a full audit if any errors, omissions and inaccuracies are not timely corrected or documentation necessary to determine whether the report is correct and accurate is not timely provided to the TEC.
3. Is a facial compliance review a sworn complaint?
No. The sworn complaint process is separate from a FCR. Details regarding the sworn complaint process are here.
4. Who is subject to a facial review?
Any report or statement filed with the TEC may be selected at random. This includes campaign finance reports, lobby reports, and personal financial statements.
5. Does receiving a notice of deficiency mean I am going to get fined?
No. If you timely correct the report to resolve the deficiency or show that the report was complete and accurate as filed, the facial compliance review will be closed without any sanction.
6. I received a deficiency report, what do I do next?
Review the deficiency report and make any necessary correction(s) to the statement or report that was subject to the FCR. If you have any questions call the number provided on the deficiency report cover letter to speak with the auditor. We will work with you to make sure the corrected report is complete and accurate.
7. With whom can TEC staff discuss the review?
FCRs are generally confidential and the TEC may only discuss the FCR with the person legally responsible for filing the report. However, the person legally responsible for filing the report can waive confidentiality to allow TEC staff to discuss the FCR with people identified by the filer. For example, a filer who had a consultant prepare a report subject to a FCR may wish to sign a limited waiver authorizing TEC staff to discuss the FCR with the consultant in order to speed up resolution of the FCR.
Corrections generally must be filed within 30 days of receiving he compliance review report to avoid a potential late fine. Deadlines can be extended upon request and with good cause shown. If you think you cannot comply with a deadline call the TEC to speak with the auditor.
While a filer will avoid a potential late fine by filing corrections within 30 days of receiving the compliance review report, corrections must be made seven (7) business days from when the filer receives the notice of a deficiency in order for a corrected report to be considered filed as of the day the report was originally filed. This is a technical distinction in the law, but it essentially means a filer will not be subject to a potential sworn complaint for an allegation of a reporting violation in the original report, if the report is corrected within seven business days of receiving the compliance review report.
9. What if I need more time to correct my report?
Contact the auditor and request an extension. Requests for extensions should be made in writing and state the reason(s) for needing an extension.
10. How do I correct my report or statement?
If you electronically filed the report or statement that is subject to the FCR, you must file a corrected report or statement electronically using the electronic filing application. If you filed the report or statement that is subject to the FCR on paper, you must file a paper correction.
11. What if I disagree with the finding of a “ deficiency?”
Contact the auditor and explain why you think the report is complete and accurate as filed. You may be required to provide documentation to allow the TEC to determine whether the report is complete and accurate as originally filed. That documentation must be provided within 30 days of your receipt of the compliance review report.
12. What if I decide I won’t correct my report even though it is not complete or accurate?
The TEC may vote to initiate a sworn complaint or a full audit if the TEC finds that the report does not comply with the law and a correction has not been timely filed.
13. How do I know the review is over?
You will receive a letter notifying you that the review has been closed.