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FEDERAl. [LrCTION COMMISSION

u;zc; " S, KII , N.W.

W,\SttIN(; ")N,Ue, 2046J

. REPORT OF THE AUDIT DIVISION

ON THE

MACHEN FOR CONGRESS COMMlTTEE

J. Background

A. Overview

This report is based upon an audit of the Machen

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, 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 reqistered with the Federal Election

Commission on March 4, 197~, as the principal camoaign committee

designated by Mr. Jyles Machen, Candidate for election to the

U.S. Bouse of Representatives from the 5th Congressional District

of Alabama. The Committee maintained its headquarters in

Huntsville. Alabama •

. The audi t co vere d the peri 0 d t1 arc h 1, 1976, the i nception date of the Committee, throuqh October 19, 1976, the

final coverage date of the termination report filed by the

Committee. The Committee reported a beginning cash balance

at March 1, 1976 of S-O-, total receipts for the period of

$59,146.20, total expenditures for the period of $59,146.20 and a closing cash balance at October 19, 1976 of $-0-.

. This audit report is based on documents and working · papers supporting each of its factual statements. They form

part of the record upon which the Commission based its decisions

on the matters in this report and were available to Commissioners

and appropriate staff for review.

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8. Key Personnel

The principal officers of the Committee during the

pertod covered by the audit were Mr. Hall Brant, Jr., Chairman, .nd Mr. Robert E. Wilkinson, Treasurer.

c. Scope

The audit included such tests as verification of

reported receipts and expenditures and individual transactions;

review of requ;r~ed supporting documentation; analysis of Committee

debts and obliqations; and. such other audit procedures as deemed

necessary under the circumstances.

II. Auditor'~ Statement and Description' of Findings

It is the opinion of the Audit staff, based upon examination of the reports and statements filed and the records

presented, that the reports and statements of the Machen for

Congress Committee fairly present the financial activities of

the Committee for the period cover~d by the audit. Further,

except as noted below, no material problems in complying with

the Federal Election Campaign Act were discovered during the

course of the audit.

Cont_ri bu ti ons

Section 44lb(a) of Title 2, United States Code, prohibits

any corporation from making a contribution or expenditure in

connection wi th any e1 ection for Federal .office.

The Committee received two corporate contributions--the

first on March 22, 1976, in the amount of $25.00 and the second

on April 7, 1976. in the amount of $50.00. We recommended to th~ Committee that they return the two corporate contributions.

On October 12. 1977, the Candidate refunded the contributions

to the corporations and filed a candidate report on October 29,

1977. with the Office of the Clerk of the u.s. House of Repre- sentatives disclosing the contribution refunds.

Recommrndation

We recommend the Commission take no further action on

this matter.

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FEDERAL ELECTION COMMISSION

112S K StREET N.W.

WASHINGlON,D.C.20463 January 23, 1978

c_.~"'I-:

Mr. Jylcs Machen

1515 Locust Circle, Southeast

Huntsville, Alabama 35801

Dear Mr. Machen:

Enclosed for your information is a copy of the final

audit report of the Machen for Congress Committee which was

approved by the Commission on December 22, 1977.

As of this date, all audit reports pertaining to the

random audits conducted within your District have not yet been approved by the Commission. However, while Commission

policy regardinq the public release of Congressional random

audit reports is to issue the reports of all audits conducted

within the District as a full District release, the policy Cefurthcr provides for the public issuance of an audit report , which has been approved by the Commission for more than

thirty days. Therefore, upon notice by return receipt that

your informational copy of the report has been received

(within approximately five days), it will be issued publicly

by the Commission as a partial District release.

Should you have questions regarding the public release

of these audit reports, please contact Mr. David Fiske of

the Commissionls Press Office at (202) 523-4065 or toll free

at (800) 424-9530. · Any questions you may yet have related

to matters covered durinq the audit or in the audit report should be directed to Mr. Jim Nycum of the Audit nivision at

(202) 523-4155 or at the above toll free number.

/~#:-- Assistant Staff Director

for the Audit Division

Enclosure as stated

CERT IFIE0 t1A IL:

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RE~~~N RECEIPT REQUESTED

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