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• FLL.JlR/\1. El£CTION CO~1,"\lSSION

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REPORT OF TilE AUDIT DIVISION

ON TilE

DANFORTH FOR SENATOR COMMITTEE

I. Background

A. Overview

This report is based upon an audit of the. Danforth for

Senator Committee ("the ComnliLtee"), undertaken by the Audit Division

of the I·'cderal Election Commission in accordance with the Commission's

audit policy to determine whether there has been compliance with the

provisions of the Federal Election Campaign Act of 1971, as amended

('!thc Act"). The audit was conducted pursuant to Section 438 (a) (8)

of Title 2 of the United states Code which directs the Commission to

make from time to time audits and field investigations with respect

to revorts and statements filed under the provisions of the Act.

The Committee registered with the Secretary of the Senate

on April 16, 1975~ in support of John Claggett Danforth, candidate

for election to the office of United States Senator from the State

of Missouri. The Conunittee was designated as the principal campaiqn

committee for the 1976 election. The Committee maintains its

headquarters in Jefferson City, Missouri.

The audit covered the period from January 1, 1975 throu1h

December 31, 1977. The Committee reported a beginning cash balanci.'

at January 1, 1975 of $0.00, total receipts and expenditures fo~ tiH~

period January 1, 1975 through December 31, 1977 of $786,737.60 and

$783,214.08 respectively, and a closing cash balance at December 31,

1977 of $2,985.06. !/

This audit report is based on documents and working papers

supporting each of its factual statc~cnts. They form part of the

record upon which the Commission based its decisions on the matters

in the' report and \vcre available to Commissioners and appropriate

staff for review.

Arithmetical and posting errors contained in reports filed durins

1975 and 1976 results in ~n apparent. understatement in closing

cash of $538.46 per report.cd--(ig~.

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Thf' principal officers of the Committee during the period

of the audit were Mrs. Almira B. Sant (1/1/75-1/1/76), and Mrs.

Marian Kraemer (1/1/76 to present) Chairpersons, and Mr. John W.

Doyle, Treasurer.

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B. Key P(~rsonne1

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c. Scope

The audit included such tests as verification of reported

receipts and expenditures and individual transactions: review of

required supporting documentation; analysis of Committee debts and

obligations; and, such other audit procedures as deemed necessary

under the circum:;t.llnces.

II. Auditor's Sf.dement and Descriptio~! of Findings

It is the opinion of the Audit staff, based upon examination

of the reports and stat.ement~; filed and the records presented, that,

except for the deficiency noted below, the reports and statements

of the Danforth [or Senator Committee fairly present the financial

activities of the Co~nittee for the period covered by the audit.

Further, except as noted below, no material problems in complying

with the Foderal Election Campaign Act were discovered during the

course of the audit.

A. Apparent Corporate Contributions

Section 44lb(a) of Title 2, united States Code, states,

in part, that it is unlawful f6r any corporation to make a contribution or expenditure in connection with any election to any Federal

office and unlawful for any Federal candidate, political committee,

or other person to knowingly accept or receive any contribution

from a corporation.

A review of the Committee's contribution records revealed

that six (6) contributions, totaling $425.00, were received from

apparent corpora tc C'11 ti tics. The Coromi t tee \oJas informed on March 9,

1978 by the i\udit ~taff of the apparent corporate status of the

contributors. Fiv0 (5) refund checks (totaling $375.00) were sent

to five (5) contributo)~s on ~larch 17, 1978 by the Conunittee. The

sixth apparent corporate contribution of $50.00 was refunded on

September 28, 1976, one (1) duy after deposit, by the Committee

in accordance with sC'ction l03.3(b) (2) of the Commission's

Regulations. Ont' (1) refund check ($25.00) was returned by the

contributor, ~cc()mp.:lnicd by a notation" indicuting that the

contribution w~s from personal funds and not a corporate contribution, thus, leavinq four (4) apparent corporate contributions

($350.00) u!1rcsolvcd. The m:lttcr was referred to the Commission's

Office of Ccncr.:l1 Counsel on ~t.:lrch 13, 1978, where Matter Under

Rcvi0w 55](78) waG initi~tcd. The review conducted by the Office

of t;l'lh.'ral ('ounsc 1 indicated tha t three (3) of the remaining four

(4) contributions werc' not corporatl~ contril.>utions (see Recap belo\oJ).

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Recap: Status

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# of Contributions Amount

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Returned per 11 CFR 103.3(b) (2)

Not incorporated per contributor

Not incorporated per MUR 553(78)

Apparent corporate contribution

1

1

3

1

6

$ SO

25

325

25

$425

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Based on these facts and the Committee's prompt action

in refunding the ntonics, the Commission voted on June 13, 1978 to

close the matter with no further action.