A key element of Tostenson's memo deals with his accusation that the party appears to have violated federal law by repeatedly delaying the deposit of employee payroll contributions into their retirement accounts. He said the "misappropriation" helped cover party expenses before the money was deposited.
"As reported on our payables at the state executive meetings last summer there was as much as $12,000 not deposited at any one time," he wrote. "This represented months of paycheck withholdings by the Party which had not been deposited within the 30-day legally required time limit."
The party offers Simple Individual Retirement Accounts for some employees. Federal law requires that money deducted from employees' checks for those accounts be deposited as soon as possible, and in no case later than 30 days after the month when it was withheld.
In cases of tardy deposits, employers may be required to make the plan whole by paying back any lost investment earnings. If they had mixed the employees' retirement money with general operating funds they could be required to pay an excise tax.
Party records show that money was withheld for employee retirement plans from September 2005 through May 2006, but Federal Election Commission (FEC) records reflect no deposits into the accounts during that period. In June 2006, the party made two makeup payments totaling $12,243 into the accounts.
The delay in depositing the money could have benefitted the party by giving it temporary access to the employees' funds.
Carey didn't explain why the retirement money wasn't deposited promptly.
"There seemed to be some gray areas as to what was the requirement," Carey said. Asked to explain the gray areas, he said, "I really would prefer not to get into the weeds on something like that. (StarTribune.com)
Supposedly, the newly-elected Chairman of the State GOP - Tony Sutton - is holding an overview of 2010 election today at 1:30 at GOP HQ; I'd bet they don't get "into the weeds" on just how much GOP mismanagement - when Sutton was GOPer Treasurer - is going to figure into 2010.
