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Key Takeaways:

  • A handful of states and localities have a lobbying audit process to ensure that filers are not only submitting their reports on time but also providing the lobbying bureaus with accurate information. Lobbying audits are just as critical and time consuming as an IRS or state tax department audit, and many jurisdictions make the audit process very public.
  • Here are our tips for always being prepared for a potential audit: keep track of the work your lobbying team is doing, save all documentation, and stay organized when submitting any responses.
  • Consequences of noncompliance can be serious. Audit findings can highlight discrepancies in registrations or reports, resulting in more work and a trail of corrections. In more serious instances, lobbying commissions can hand down fines.


Many of us are breathing a sigh of relief for making it to the other side of the April tax deadline, but if you are a registered lobbyist in certain jurisdictions, don’t get too comfortable. A handful of states and localities have a lobbying audit process to ensure that filers are not only submitting their reports on time but also providing the lobbying bureaus with accurate information. Compliance audits verify the accuracy of lobbyists’ reports and offer the public confidence in lobbying laws and regulations. 


The Meticulous Audit Process

Lobbying audits are just as critical and time consuming as an IRS or state tax department audit. For example, in New York City, be prepared to not only submit documentation to support the details you submitted in your reports, but to also participate in an audit examination with the Chief Investigator either in person or through a video call. During the examination, the registration, reports, any amendments, and all supporting documents will be thoroughly reviewed no matter how minuscule an amendment may be. 

Similarly, the Maryland State Ethics Commission provides a long list of supporting documents that may be needed to get through one of their audits. This ranges from a cash receipts journal to canceled checks to conference attendee lists. Lobbyists being audited in West Virginia will get a friendly but serious letter from an independent CPA firm. It’s only after the CPA has conducted their audit that lobbyists will be given a chance to make their case for any slip ups.


Noncompliance and Keys to Success

Many jurisdictions make the audit process very public. In Connecticut, client lobbyists selected for audit are chosen during a live public hearing, and it is highly known for being their most attended meeting. California’s robust Political Reform Audit Program will make the final audit report available to the public, where they won’t shy away from identifying any violations.

Audit findings can highlight discrepancies in registrations or reports, resulting in more administrative work and a trail of corrections. In more serious instances, lobbying commissions can hand down fines for noncompliance.

What are the keys to successfully deal with an audit? Here are our  top tips: 

  • Keep track of your lobbying team. All lobbyists, whether they are in-house or retained, are subject to audits, so get a good understanding of the work they are doing.

  • Save all documentation. Since you’ll need to justify why you reported certain compensation, expenses, gifts, lobbying activity, or any other details that an auditor can request, make sure you can easily find this information.

  • Get organized. Before submitting a response, review all of your paperwork to ensure you are answering your jurisdiction’s specific audit requirements.

Nervous About Audits? Talk to Us!

Ensuring that your organization has a system in place to make the audit process less onerous is critical, both to your company and for everyone’s piece of mind. MultiState regularly works with the jurisdictions that conduct random audits and can work with you to get an audit completed quickly and efficiently. Learn more about our industry-leading lobbying compliance services and don’t hesitate to reach out to our team with questions.