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HDERf\l ELECTION COMMISSION,

September 10, 1980

ME~10RANDUM

TO:

",

'~HROUGH':

FRO~l:

SyBJEC'l' : '

, Attached please find a copy of the final audit report' of

the,Regular Hudson County Dinner Committee (Nov. 1976) which, , wasapprovedb~· the Commission on 'August 29, '1980'-" , ,

Informational copies of this report'havebeen,receivcd , by' all parties imml'!ed,and ~his report"'may be released to' , 'the ·public as of tocai', September 10,' 1980.

,A,.ttached ;-t:; stated

.cc: FEe Library

R.'\D

Public Record ~_,
FEDERAL ELECTION COMMISSION

The audi tors e:·:ami ned financial records from September,

1976, (tho Commi tt\'Q began receiving contributions in

SC!:Jtember), throll.1h ;·!ay, 1977, to determine disposition

of residual funds on h~nd at termination (see Findin0 E) .

This audit report is based on documents and working

papers which sup!Jort each of the factual statements. They form

!)art of the record upon \-:hich the Commission basC"c1 its decisions

()n the n13 tters .i n the report and were ,"w~ilablC~ t:r) Commissi oners

~nd appropriate st~ff for review.

For the pCl~iod ,mdi ted, the Committee reported a

bcainninq cash h~lance of 5-0-, total receipts of S197,158.00,

total expenditures of $130,147.78, ~nd an endin0 cash b~lance

of 567,010.22.

'T'he Committee re": istered wi th the Fedora 1 r1f)ction

Commission on October l:!, !C)7G. 'T'he Committee mair:tained its

headquarters in Union City, New ~ersey. The audit covered the

period from reCJistr~tion t:lrough December 31, 1976, the coverago

date of the Commi ttC"c' s termi nation rc!)ort. .!/

REPORT OF THE AUDIT DIVISION

ON

REGULAR HUDSON COUNTY

DINNER COMMITTEE (NOV. 1976)

A. Overview

This report is basf)d on an audit of the Regular Hudson

County Dinner Committee (Nov. 1976) (lithe Committee") undertaken

by the Audit Division of the Federal Election Commission in

~ccordance with the Commission's audit policy to determine

Khethcr there has been compliance with the provisions of the

Feder~l Election Camp~i0n l'.ct of 1971, as amended (lithe J\ct").

The audit was conducted pursuant to Section 438{a) (8) of. Title 2

0:: the United States Code, which at the time of the audit,

directed the Commission to make from time to time ~units and

field investigations with respect to reports and stntements filed

unc:er the provisions of the Act.

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,'\lld i t Findi nClS une: RecoP'lmencli1tions TT ~-_.-- .~-------_--:'-._-_.----_._--_.---_ -_._--_.- •

Durin,: thc- !)('riod of: t:lw audit, SectiOl~ 102.9 (e) of

'l'itlf' 11, CCc1L\ 0:: !'eC:e:r.::tl l~('C:JuLlti()m;, st:1ted if. there is a

sho'::i!!': th.:1t bcs:: c::orts helve b"('!1 1TlClc1e ta obt::lin the required

infnnn:\t-ic':l, the rc!:)Orti!1-:.: commit'l,!e shall be c1i..'l:r:10c1 to be in

COTIl;,l i '\ ::c·~~ '::i th t:h-i s ::;CCtiO:l.

Durin~-j the :;(~dcd of Lll" duc1it, Sl~cti()n ,'i12(c1) of'ritle2 of thc~ t'ni ted St.:1 tcc-; Cc't:r:.: rl'<!11 i 1-''-'c1 the trcaSU1~(,l~ elf il poli ticC11

cc~nllnittt~e to obtain a!:d kl"~:' II r,'cf~iptcd hill, sLltinq the

pClrt i ...:t: L.I1-S, fnr Cl'lC'C:' c:·:;_'c·ncl 1 llll-c' made by or on bc~hC1l f of a

politic.-ll committec' i:, c·:·;c,·:;::; of ~~lOO in C1mount, and for any such

expenc!i lure 'in ~1 lCSS':::l~ amount, if the ,'(:,1reqC1tc amount of such

expc~nd i tU!~e to t:k' Sc::.::1C P'-'l-~~on Chll- i nq i1 c.:11cnLlar ye'1r exceeded

SlOO.

OUr' CX:1!:iilntion o[ CC11l1mi ttc.'C l:'<?cords rC"!':uled that

the l'o:n::,.ttt('{) ne,:oti.:1':::c<: iu.; o\·;n Clll)C}:, r.:::d0 P;l'.:.,blc to "cash"

in th,_' ,'1Tlotmt of SSO,OOO. These funds \':"-!l"C usc:d to make 35

c;1sh ~Id·:anc.:o::;, tOLIU:~(: ~~·;f),l!)O.nO, to 2; Drecinct ch.:tirmcn und

thn:.-' ('3) e:·::)enc1iLll-'~':;' trL:l inq S185.71, to three (3) vendors

on :';C"':. ';:11'.<'1- 1, or ~';()':".!::,l>"'~- :;, 19,(" for 00t-OUt-t::'c-votc purposc~s.

During the period of 111'-' audit, Section 432 (c) (4) of

'1'i tIc 2 0: the Uni ted St.:1 tcs COtlf' r-f'qu i red the trcusurcr of a

politiccl1_ committ.2c' to b:_'l~:) a dc" 01 i led ar~,l l'X.:1Ct .:lccount of the

ic1cnti::ication 0: evcr~' person tIl It/hom a!~': l'xpcnc1iture \Vas mude,

the date ilnd C11TlOi.l:lt thereof. Clnd 1:1\1' nam0 .11ll! addn..!s~; of, and

offin' SOU~lht by, cae:, C;111c1idCll!' 1111 \vhos<' 11...'h"l f :-:uch expenditun'

Wt.1S nl~l(!c.

'I'he audit included such tests .1:; verific::ltion of total

reportL'<! n~ceipts llnc1 r-~:':!I0.nditur0.s and llldividulll transactions;

revic\.; o[ requirc·<! su;,;,nl-tinq dacumentatilH1 llnd analysis of

Cammi l. tL'(~ debts <lntl ob I i qa tions; and such other Lludi t procedures

as c1<~l'I1\(~cl necessary under the ci r.cumstancl'S.

"-IH' pl-incip::ll officers of the committee durinq the

periud dlldi b-d \oJerc: Bern;ln.l ~~. Hartnett, Jr., Chairman;

,Joseph :1. S i lTlllno\'ich, 'rrC.::lsurer.

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'\'11. 'se 38 t 1-~tll~~i.Ictions were reported by the Committee as election

d.ly expensl's ill the amount of $50,000. The advances to the 27

pn~cinct c:11iI j r.m, 'n varied in amounts from $50 to $5,000. The

Committee PI-I'~;I'llted to the auditors receipts for each of the

38 U-ilns;]I'l jnn:; which stated the funds were "for use for food,

poll WLltc!l.·'"::, ;lIld i.ncidentLl] expenses for election workers, for

the (~encr.11 EII!ction of November 2, 1976."

committee officials explained to the auditors that

the preci net chi! i I~men used thei r cash Lldvances to pay poll wiltchen.;

in Llmounts 0'· $5.00 - $15.00 on election day. No documentalion

supporti nq thcs(:, SS.OO - ~;15. 00 expendi tures wa::: presented for

examination durinq the audit.

l\ctinq upon the recommendations of the auditors,

the ComIn ittee, by can tacti nq fonn(~r Commi ttee officials and

precinct ch~irmen, located and submitted for review documentation

for the $'>.00 - $15.00 election day expenditures totaling

$12,762.74. This amount represents approximately 26% of the totnl

dmount c';.:pended on election day. 'I'he Committee submitted a statement to the auditors which detailed their efforts to obtain

documentation for the remainin.J $36,572.97. The statement also

e:.:pn'ssoc1 the ConH:1i ttee' s be'] ieE th~tt they have made their best

C:~C()I-ts to obtain the required documl'ntation.

Since the Commi ttee has oomp1 i 1.'11 \.,.i th the recommendations

n! the' iluc1itors by submi.ttinq cl0CtllllC'ntation for a portion of the

('1ectio:1 day C':-:!)l~ns('s, ,1I1d b:l.';nl:~(' the Committee hLls submitted

('vidL'net' cl('monstT~1ti.WJ thoil- hc·:-~t .~rl'()rts to obtClin t:,c remainil1<1

dOCllm('I~t-..tt:j()l1, the :\udit. st~lff rl'L'l)mmcnc1:~ no further :lotion in

this m~lttc~I-.

p" DisclosUl:e •• ••••~. __ •••• of Contribllh'l- • ~.. __•••fnfol"mtltion4

Durinq the pedod of the audit, Section 434 (b) (2)

of Title ~, United States Code, required the disclosure of the

ful] nanh' :.Illd m~i 1 i nq .:Idcll~C.~SS, occupation and principu.l place

of bu~:; i nc::>:~ ()f coClch :)C'r.:,~on \d10 h~s m<1de one or more cO:1t;.ibuti ons

to or for .:I polit".ic,.1 commith'(' \\,jthin the C'~]ond.'ll~ ,:"e::~~ in an

dqnl-L"J .• tc' ;1mollnt' or v~11ll(~ in (~:-:C(':>~~ of S]OO, togethl"'!- \'lith the

dlHOUIIL ~1l~C: (!::tL, 0: such contrlbllt·i()n~"

Dlll"inq th·..' :1 ..... d.od OL th,' .• uctit, Section ·13~ i::') (l-1) of

Titl.' C)!- t11t.' l';~i:-c'Cl States CO':L' st,tted \-:hen Committ.:e treasurc·l.-:~

::;!,c1'.-; t-h.1t bl'::;l' ('::-:-(1~~tS h:n'o !Jl'I'!1 lI~,ecl to obt~in and scll::::1it the

i 11 :('nnd t i (111 n:'l!:l i ~',:(: b':" thi s subsoct ion, t1;('~' sh<111 l"'c deemed t(1

bl) in c():;lpli~lnCt"" '..;ith thi::; subsc.'ction .
c. Dl~cloSUl-O • • _.__ __.4M __ • _.

(,: !'isDosition ••" __e •'of •Residual --••• _._-_._._-~_.----.-Punds•

(fur (':':,1:~1 in.: t i .... n of ('0:::::11 t tccrccord~-> .:lnc1 (~.i:;c losuro

r,,"ports 1."0':0.11 •.:-,: t:1:11' t'!l<' ('o!:uni ~-.tt'(' did not disclose :':1(2 dis":'

,Position 0: n~!-1i,:u~11 !l!lld:; tOt:ll.illq '$(,7,183.52. Duri:1Q .the

audit it ',':<.15 d~'t:L':-lllinr"!'! t.h~lt S(,(),76:~.lJ7 of the residu:l1 fm1ds

w;is tr~I'ns;:crrcc1 to tIl(' Hudson Calmty Ecqu1.1r ,Democr.J.tic orgLlniz<1'<:

t50n Llnd the rCffi3inin': SG,~~O.55 W.:.1S used for gcner~l cXFcn5es

fflcurrcc1 in tecuin;ltin'l the Committec's activities.

!'ur i !h1 th",:.,.'j- i\)(1 of the 0.udi t -, Scction 102. -1 (0.) "o'f

'I'itl,' II ~,:- t:1C~ C0dv ;,:- i·~,'c1'2r.:ll pcau1<ltions stated, i!l·i)~ll~t, "' ..

IhZlt \~hcn:" l)(~1i~:ic,11 c(J1!l!1litteo secks to c1isbimd';-n. ~;h'lll fi1c~

d notice of 'tc:rmi:nti f J:l \.;llich sh:111 cont,lin Ll stLltC:::l0:1t .:.15 to

the clisposi·tio:1 (~:= n·;-:idu.ll func1s.

P/~'l~';l-'(: ("':1 t::c' C():n::1itt-·""t"l':-~ :~(\~~:·()t;~·;·~-·, t:1C .:"·.udit st:l:-: rccomm<.'nds

llt1 ftlrtb'~" .:cti0n in ::::i:; :il::tt·.'l-.

:\ctin.:: upon tht~ rccom:::enc1.:ltions of the CiuC:i":.01.-S, ,the

.cc:>mmi.t.tc;:: :~i1,?d sta~~:r:l~"':lt ~f dis:)osit;on 0:: rcsid:::,1.[Ul1ds

.\-.'1 th I:h.'" co:::::n SS -:.0:1 ..... :; ~cn 1"0:: It)c,tpd thL"' .1boy(: facts .:::;(t further

':~l::itC'c1 th,lt tho rC'sirl~L:1 fU:1C.1s \,'l:,rc riot subsC<ll1C'ntl':' ::Sl'':: in

connl!ct.inn \·:it·,:: Fcc1c·j-.:,1 l~1,'ctio:1l-~.

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Based· upon theCr~:nmrttee's demo"nstration of best efforts

l"obt.:l.in the rer!uirr·d in::Ol-m<ltion, .. the· :\udit. staff'recommends

.110 furthcr.:lction in'th i;; m.:lt ter.

1-,cLing upon the i~ecommcndati6n~;()f the auditors, the

Commitb:'" oIttempted toobt.:l.in the requirclL'informntion bv contactinq

<l formcl-.(:IJmmittc(: .0ff-il:iaL Cinc1 some 'of th~:' contributors'. "'he

. Committer:"lJbt.:lined and'elisc.losed in amcnc!r-'(l reports, the occupation

'.' for 100':': fJ!" the contr i hutors' and-thc principal' plncc of busi ness'

'for 52'1. of the contributors.' .. .

Our e:·:aminatiot1.of: Committee disclosure reports indicated

that theCommitLce did not disclose the occupotion and principal

place ofbusineHs of the contributors [or 198 contributions in

excess of $100 (]OO~ of itemized contributions). These 198 contributions totaled $67,OOO.OO._In addition, the aggregate amount of

all contributions made within the calendar year for each contributor

. \vas not .i nr.:l uded on the Comrni ttee. disclosure., reports. _, 'e', '

e.
Certain other matters noted during the audit were referred

to the Office of General Coun~e1ori June18~ 1980.

D. Other Matters ------------

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