0-

J) ,

FEDERAL ELECTION COM~lISSI0N

H.!; K SHU l T N W.

W,\~ttlNC10N.D.C. 204&)

0· ...

':-' .

" .....

REPORT OF THE AUDIT DIVISION

ON THE

RINALDO FOR CONGRESS COMMITTEE

I. Background

A. Overy i e\'1

This report is based on an audit of the Rinaldo for

Congress Committee (lithe Committee"), undertaken by the Audit

Division of the Federal 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 (lithe 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 reports

and statements filed under the provisions of the Act.

The Committee registered with the Office of the Clerk

of the United States House of Representatives on March 7, 1974~

in support of the Honorable Matthew J. Rinaldo, Candidate for the

office of United States Representative from the 12th Congressional District of New Jersey_ The Candidate designated the Committee

as his principal campaign committee on March 17, 1976. The

Committee maintains its headquarters in Union, New Jersey.

The audit covered the period fro~ January 1, 1:75

through June 30, 1977~ the f;nal coverage date of the latest

report filed by the Committee. The Committee reported a

beginning cash balance on January 1, 1975 of $367.01, total

receipts for the period of .$205,577.55, total expenditures

for the period of $166,332.58, and a closing cash balance on

June 30~ 1977 of $39,611.98.

This audit report is based on documents and working

papers which support each of the 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

Commissioners and appropriate staff for review.

. .
-2-

:~~ Auditor's Statement and Descr~ption of Findings

It is the opinion of the Audit staff, based upon examination I~" the reports and statements fi led and the records presented, that, :'~~~pt for the deficiencies noted below, the reports and statements

,"; the Rinaldo for Congress Committee fairly present the financial

:.. ::'j v i tie S 0 f the Comm ittee for the peri 0 d covered by the au d it• . IIi"cher, except as noted below, no material problems in complying .·!~h the Federal 'Election Campaign Act were discovered during the : .: .U's e 0 f the au dit. ,. ,

....

"

•

•

.~\.. 'I;~ ...

.:

\ '......

A. Contribution Limitations

..-

• B. Key Personnel

The principal officers of the Committee during the

period covered by the audit were Mr. Raymond H. Hartlaub, Esq., Chairman, and Mr. Homer F. Dukes, Treasurer.

Section 441a(a)(1){A) of Title 2 of the United States ~: destatesthat no pers on s hall make con t r ; buti on s to any candidate and his authorized political committees with respect

to any election for Federal office which, in the aggregate, ..~xceed $1, 000.

The Committee reported a receipt of $1,235.00 on

March 14, 1917, from the Committee to Elect a New Governor, an

unregistered committee.

The Audit staff was informed that the Committee to

Elect a New Governor was created solely for the purpose of

persuading the candidate to run for the office of Governor of

New Jersey. When the candidate declined their offer, the

Committee to Elect a New Governor contributed the funds raised

($1,235.00 from five (5) individuals) to the Rinaldo for Congress Committee.

c. Scope

The aud.i t inc 1uded such tests as veri fi ca ti on of tota 1 , ~uorted receipts and expenditures and individual transactions. . flew of required supporting documentation and analysis of . ,',)a1mittee debts and obligations; and such other audit procedures

_.r. .Jeemed neces sa ry under the ci rcums ta nces. #

. .

'."

..

-"

I
• •

... -3-

We recommended this contribution be reported in the

names of the five (5) individuals. who originally contributed to

the Gubernatorial Committee, and that written authorization for the transfer be obtained from those individuals. The Committee

officials agreed with our recommendation, stating the necessary information could be obtained.

Recommendation

We received the Committee's amended schedules on November 10,

1977. disclosing the required information. The Committee has also

presented written authorization from the contributors of the Committee to Elect a New Governor authorizing the transfer of their

contributions. Therefore, we recommend no further action on this

matter.

B. Cash Contribution in Excess of limitations

•

Section 441g of Title 2 of the United States Code

states, in part 9 that no person shall make contributions of

currency to or for the benefit of any candidate which 9 in the

aggregate, exceed $100, with respect to any campaign of such

candidate for nomination for election, or for election, to

Federal office.

Our review of the Committee's contribution records

revealed that the Committee received and accepted one (1)

cash contribution of $500. Committee officials gave no explan- ation concerning this matter.

Recommendation

Since we received a copy of the Committee's check, used to

refund the excessive portion of this contribution to the contributor, we recommend no further action on this matter.

c. Retention of Supportino Documentation for Expenditures

Section 432(d) of Title 2 of the United States Code

states, in part, it shall be the duty of the treasurer to

obtain and keep a receipted bill, stating the particulars, for

every expenditure made in excess of $100, and for expenditures in a lesser amount, if the aggregate amount of such expenditures

to the same person during a calendar year exceeds $100 •

. .
.

. " ,-4-

Section 102.9(c)(4) of the Commission's Regulations

states,· in part. that when a receipted bill is not available,

the treasurer may keep the cancelled chec~s showing payment of

"he '1ill, and the bill, invoice or other contemporaneous .... rr.~morandum.

During the course of the audit. it was determined

the Committee did not obtain and keep the bill, invoice, or ~ther contemporaneous memorandum for 41 expenditures, totaling j18,973.38. This figure represents 17.15~ of the number and j~.07% of the dollar value of all expenditures requiring supporting 1<,cumentation. The treasurer stated that he was unaware of this ~~tuation but agreed to obtain and f~rward the necessary documents.

:\~commenda t ion

Since we received copies of the necessary supporting documentation on October 13. 1977, we recommend no further action

i'ln this matter.

D. Itemization of Transfers

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

Code requires. in part, that a committee disclose the name and

address of each political committee from which the reporting committee received any transfers of funds, together with

amounts and dates of all transfers.

Our review of Committee records indicated that 28

transfers, totaling $2,557.00 were reported as unitemized

receipts. These figures represent 24.14% of the number and

6.18: of the dollar value of all transfers received. The

treasurer was not aware ttalt transfers less than Sl·JO

required itemization, but expressed a willingness to file

the necessary amendments.

Recommendation

Since we received the Committee's amended schedules

on October 13, 1977, disclosing the required information, we

recommend no further action on this matter.

•

. .

..., . .... .
.~ . ; .

.i

t .

• .\t • •

.. •

-5-

,

..•

,

t

t

\

i

j

••

E. Other Matters

Presented below is a matter noted during the course 0' the audit for which the Audit staff feels no action is w~rranted. The Committee has been advised of this discrepancy and informed of the respective requirement of the Act.

The Committee .did not report one (1) 'outstanding debt

of $561.75 on its debt and obligation schedule. This debt was

due December 22, 1976 and subsequently paid on May 13, 1977.

•

4 ..4 112:. > a t.. s • •
Candidate/Committee:

CONGRESSIONAL AUDIT REPORT

Matt Rinaldo / Rinaldo for Congress Committee

.. . ...-.......:.....;.;... ... ':'~.'... -- -. • ':".~'",.. ........... ..~~'=O'holal>.... ...........'----... ..-_

12

New Jersey

District:

State:

Major- Oppo~ent( s) : Richard Buggel1i' (0)

Buggelli 49,189

1972

None

$166,332.58

$205,577.55

Republican

Rinaldo 136,973

Buggell;

PrimarJ Eiec~i err

General ETec~icn

Union County

Fi~t Eiac-:ad (if appTicable):

tata.l Reca; pts. fc~ ?f!riad:

Votes Cast:

ather Candid~tes Audited:

Political Party Affiliation~

Location:

........

. .....,

..-... ·-,tl"" ttl

.... ,-,

:.. ~; .....

.. -:'·f·
•

•

C'

"

C

•

FEDERAL ELEC1IC)N COl\t\l\lISSION

n2~ 1\ SlIU U \\'.

"\'A5HI~Gl0N.Dl·. 2('4h\

ADDITIONAL INFURMATION REGARDING mIS ORGANIZATION

MAY BE I.DC'ATED IN A OOMPI.ETED OOMPLIANCE ACTIC!:t

Fn.E RELEASED BY THE OOt+tISSION AND MADE PUBLIC m

'!HE PUBLIC RECORDS OFFICE. roR '!HIS PARTICUIAR

ORGANIZATION'S COMPIE1'ED OOMPLIANCE ACTION Fn.E

SIMPLY ASK FUR mE PRESS StI+1ARY OF mR 41 r73

'!BE PRESS StM-fARY WIlL PROVlDE A BRIEF HISroRY OF

'!HE AND A StM1ARY OF THE ACTIONS TAKEN, IF Nfi.

Audit 4! 11
,

,

.(~.

.(.

..

'=,. •.. ''If \.' ..1< .. i ... " I"~

·t I··~:\'" ,- or , ~' •• "

~.,

,: ~.

( ,. i . I ..

.

•;

t

, "" ....- ...

Ie

/. :"

.~ .. ..

.

i·

(..

,

>'

/

..

,'"

/

,.

'-.