• FEDERAL ELECTION COMMISSION

\\'ASHINCTON. D.C. 2~63

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A83-90

REPORT OF THE AUDIT DIVISION

ON THE

UTAH REPUBLICAN PARTY (FEDERAL ACCOUNT)

I. Background

A. Overview

This report is based on an audit of the Utah Republican

Party (Federal Account) ("the Committee"), undertaken by the

Audit Division of the Federal Election Commission in accordance

with the provisions of the Federal Election Campaign Act of 1971,

as amended ("the Act"). The audit was conducted pursuant to

Section 438(b) of Title 2 of the United States Code which states,

in part, that the Commission may conduct audits and field

investigations of any political committee required to file a

report under section 434 of this title. Prior to conducting any audit under this subsection, the Commission shall perform an

internal review of reports filed by selected committees to

determine if the reports filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

The Committee registered with the Federal Election

Commission on March 16, 1978 and maintains its headquarters in

Salt Lake City, Utah.

eo The audit covered the period January 1, 1981 through December 31, 1982. The Committee reported an opening cash on

hand balance on January 1, 1981 of $1,022.85; total receipts for

the period of $130,977.36; total disbursements for the period of

$124,026.62 and a closing cash balance on December 31, 1982 of

$7,973.59.

This report is based on documents and work papers supporting each of its factual statements. They form part of the

record upon which the Commission based its decisions on the

matters in the report and were available to the Commissioners and

appropriate staff for review•

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B. Key Personnel

The Treasurer of the Committee during the period covered by the audit was Mr. G. Preston Parker. The current

Treasurer is Mr. R. Todd Neilson.

c.. Scope

The audit included such tests as verification of total

reported receipts and disbursements and individual transactionsJ

review of required supporting documentation; analysis of

Committee debts and obligations, and such other audit procedures

as deemed necessary under the circumstances.

II. Audit Findings and Recommendations

A. Itemization of Expenditures

Section 434(b) (5) of Title 2 of the United States Code

requires that each report under this section shall disclose the

name and address of each person to whom an expenditure in an

aggregate amount or value in excess of $200 within the calendar

year is made by the reporting committee to meet a candidate or

committee operating expense, together with the date, amount, and

purpose of such operating expenditure.

During the course of the audit it was noted that the

Committee failed to itemize fifteen (15) expenditures, totaling $11,044.60. This represents 39.47% of the number and 10.01% of

the dollar value of those expenditures requiring itemization.

In the interim audit report the Audit staff recommended

that the Committee amend its reports to. properly itemize the

above. mentioned expenditures.

On December 6, 1983, the Committee filed an amendment

to its disclosure reports which complied with this request•.

Recommendation

The Audit staff recommends that no further action be taken

on this matter •
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Itemization of Contributions

from/to Political Committees

Section 434(b) (3) (B) of Title 2 of the United States,

Code states that each report shall disclose the identification of

each political committee which makes a contribution to the

reporting committee during the reporting period, together with

the date and amount of any such contribution.

In addition, Section 104.3(a) (4) (11) of Title" 11 of the

Code of Federal Regulations, in relevant part, provides that each

report shall disclose the identification of each contributor and

the aggregate year-to-date total for such contributor to include

all committees (including political committees and committees

which do not qualify as political committees under the Act) which

make contributions to the reporting committee during the

reporting period, together with the date of receipt and amount of

any such contribution.

Section 434 (b) (4) (el of Title 2 of the United States

Code states that each report shall disclose transfers to

affiliated committees and, where the reporting committee" is a

political party committee, transfers to other political party committees, regardless of whether they are affiliated.

During the course of the audit it was noted that the

Committee failed to itemize seven (7) contributions totaling

$40,625.00, received from political committees and other

committees not qualified as political committees under the

Act. i /

Further, the Committee made a transfer to a non-federal

committee (Utah RepUblican Party), totaling $6,000, which was not

itemized.

In the interim audit report the Audit staff recommended

that the Committee amend its reports to properly itemize the

above mentioned contributions/transfer.

On December 6,1983, the Committee filed an amendment to . its disclosure reports which complied with this request.

Recommendation

The Audit staff recommends that no further action be taken

on this matter •

• 1:/ Three of seven contributions, totaling $40,000, were

received from the RepUblican National Co~~ittee - Expenditures.