Chapter 9: The Main Report (Form 460)

Official Source: Chapter 9 - Committee Report - Form 460

Introduction

If you are running a campaign that raises or spends more than $2,000, the Form 460 is your constant companion. Think of it as your campaign's general ledger or bank statement that you publish to the world.

This form tells the public three things:

1. Who gave you money.
2. How you spent that money.
3. How much cash you have left.

Filing this form accurately is the core of California's transparency laws. Errors here are the most common source of fines.

Who Must File Form 460?

You must file this form if you have a controlled committee (you are a candidate) or a primarily formed committee (supporting/opposing a candidate) and you have raised or spent $2,000 or more in a calendar year.

• Note: Once you trigger the $2,000 threshold and file your Form 410 (Statement of Organization), you must keep filing Form 460s periodically until you officially terminate the committee, even if you stop raising money.

The Anatomy of Form 460

The form is broken down into a Cover Page, a Summary Page, and several "Schedules" (A through I). You generally fill out the Schedules first, then carry the totals to the Summary Page.

The Cover Page

This is the "Face Sheet." It lists:

• Filer Information: Your committee name, address, and ID number.
• Period Covered: The specific dates this report covers (e.g., January 1 through June 30).
• Verification: You (and your treasurer) sign here under penalty of perjury to certify the report is true.

Schedule A: Monetary Contributions (Money In)

This is where you list the checks and online donations you received.

The Rules:

1. Itemize over $100: If a donor gives you $100 or more (cumulatively in a calendar year), you must list their:
   • Full Name
   • Street Address (No PO Boxes)
   • Occupation
   • Employer (or name of business if self-employed)
   • Amount received this period
   • Cumulative Amount (Total they have given you all calendar year)
   • Per Election Total (Total they have given for this specific election—Primary or General)
2. Under $100: You do not need to list names for small donors (e.g., $25). You lump these together as "Unitemized Contributions" on the Summary Page.
3. Intermediaries: If someone hands you a check from someone else, you must disclose both the true donor and the intermediary.

Schedule B: Loans Received

This is where you list money you borrowed.

• Includes: Loans from banks, loans from supporters, and loans from the candidate (you) to the campaign.
• Forgiveness: If a lender tells you "don't worry about paying it back," that loan moves from Schedule B to Schedule A (it becomes a contribution).

Schedule C: Non-Monetary Contributions (In-Kind)

This is for goods and services donated to you for free (or at a discount).

• Valuation: You must report the Fair Market Value. If a printer gives you $1,000 worth of flyers for free, you report a $1,000 non-monetary contribution.
• Details: You must list the donor's info (Name, Address, Occupation/Employer) just like a monetary contribution.

Schedule D: Support/Opposition of Others

Use this only if your committee spent money to support or oppose other candidates or ballot measures.

• Example: You are running for Senate, but you donated $500 to a friend running for School Board. You list that here.

Schedule E: Payments Made (Expenditures)

This is your checkbook register. You list every payment you made.

The Rules:

1. Itemize over $100: If you pay a vendor $100 or more, you must list:
   • Name and Address of Payee.
   • Code or Description: You must describe what you bought. The form has standardized codes (e.g., LIT for campaign literature, CNS for consultants, OFC for office expenses).
   • Tip: If you use a code, you usually don't need a written description unless the code is vague (like OTH for Other).
2. Under $100: Lumped together as "Unitemized Expenditures."
3. Credit Cards: If you pay the credit card bill, you must itemize the sub-vendors on Schedule E (or Schedule G) if a single purchase was $100+. You cannot just write "AmEx - $5,000." You must list the restaurants, airlines, and stores you paid via AmEx.

Schedule F: Accrued Expenses (Unpaid Bills)

This is for debt. If you hired a consultant or bought mailers but haven't paid the bill yet, you list it here.

• Why? This prevents campaigns from hiding spending by simply not writing the check until after the election.
• Process: When you finally pay the bill later, you show the payment on Schedule E and reduce the debt on Schedule F.

Schedule G: Payments by Agents

Use this if a campaign worker or consultant spent their own money and you reimbursed them.

• Example: Your campaign manager put a $500 hotel room on their personal card. You reimburse the manager.
• Reporting: You list the manager as the payee on Schedule E, but you list the hotel on Schedule G so the public knows who actually received the money.

Schedule H: Loans Made to Others

Use this if your campaign loaned money to another candidate or committee. (This is rare for standard candidate campaigns).

Schedule I: Miscellaneous Increases to Cash

This is for money coming into your account that is not a campaign contribution.

• Examples: Interest earned on the bank account, a refund from a vendor (e.g., you overpaid the phone bill and they sent a check back), or selling an old computer.

The Summary Page

This is the balance sheet where everything comes together. It has three columns:

1. Column A: Total this period (from the Schedules you just filled out).
2. Column B: Total from the last report's Column C (carryover).
3. Column C: Cumulative total to date (A + B).

Key Lines:

• Line 16 (Ending Cash Balance): This number MUST match your bank statement balance (after adjusting for outstanding checks/deposits). If it doesn't match, you made a math error or missed a transaction.

How to File

1. Electronic Filing:
   • State Candidates: If you raise/spend $25,000 or more, you must file electronically with the Secretary of State using certified software.
   • Voluntary: You can file electronically even if you are under the limit (highly recommended).
2. Paper Filing:
   • Even if you file electronically, the state often requires a paper copy with original "wet" signatures (or compliant digital signatures).
   • Check Chapter 10 for specific deadlines and locations.

Action Plan: Completing the Form 460

Common Pitfalls

• Missing Employer/Occupation: If you don't have this for a $100+ donor within 60 days, you must return the money. Do not leave it blank.
• The "Credit Card" Trap: Listing "Chase Visa" as the payee without listing the restaurants and stores where the money was spent. This is a guaranteed audit finding.
• Unpaid Bills: Forgetting to list bills you owe but haven't paid yet (Schedule F).
• Wrong Period: Including transactions that happened after the closing date of the report. Stop exactly at the closing date.
• Math Errors: Column A (This Period) + Column B (Last Period) must equal Column C (Total).