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PUBLIC ISSUANCE OF AUDIT REPORT -

REPUBLICAN PARTY OF FLORIDA -

FEDERAL CAMPAIGN ACCOUNT

JUDY HAWKINS

BOB COSTA

FRED EILAND

PRESS OFFICE

1\.!'l'" "110:111 NW W\"'HI~C; I()~.J)L .!04fd

FEDERAl. ELECTION COMMISSION

Informational copies of this report have been received

by all parties involved and this report may be released to

the public.

Attachment as stated

November 26, 1979

cc: FEC Library

Rl\D ..' -~P'ublic Record

Attached please find a copy of the final audit report

of the Republican Party of Florida - Federal Campaign Account

which was approved by the Commission on November 7, 1979.

SUBJECT:

FROM:

THROUGH:

TO:

t-mMORANDUM

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It!:; "'110:111 NW.

W.\....IIIM; J( N.I ) l· . .!1I4h \

FEDERAl. HECTION COMMISSION

Background

REPOR'l' OF THE AUDIT DIVISION

ON THE

REPUBLICAN PARTY OF FLORIDA-FEDERAL CAMPAIGN ACCOUN'l'

/\. Overview

The Committee reqistercd with the Federal Election

Commission on August 27, 197h as the federal campaign account

of the Republican Party of Florj~a. The Con~ittee maintains

its headquarters in Tallahass0c, Florida •

This audit repoL!: is based on docullIonts and workinq

papers which support each o( the filctual sta h.:ments. 'l'hey form

part of the record upon \\lhich the Commission bilsed its decisions

on the matters in the report and \\le1'e available to Commissioners

and appropriate staff for review.

!/ The Committee rc-rcgistered with the Commission on

.September 18, 1978 •

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The audit covered the pel~iod from l\ugust 27, 1976

through December 31, 1976, tho final coveraqa date of the

terminati.on report filed by thn Committee 1/. The Committee

reported a beginning cash balance on i\uqust 27, 1976 of $-0-,

total receipts for the ped.nd of $24,833.76, total expenditures

for the period of $24,833.7G and a closing cash balance on

December 31, 1976 of $-0-.

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This report is based on an audit of the RepUblican

Party of Florida-Federal Campaign Account (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

di n~cts the Commission to ma};e from time to time audits and

field investigations with respect to reports and statements

f i.led under the provisions () r the Act.

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B. Key Personnel

RecOTTU\lcnda tion

On May 10, 1979, the Committee officials submitted copies

of cancelled checks used to refund the prohibited contributions,

therefore, the Audit staff recommends no further action on this

matter•

A. Prohibited Contributions

During the course of the audit, it was determined

that the Committee received and accepted two (2) contributions,

from business entities totaling $35.00. Subsequent confirmation

with the Secretary of State's office in Florida revealed that

these business entities were incorporated at the time the

contributions were made. The Committee officials were not aware

of this situation but agreed to take the appropriate corrective

action.

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Section 44lb(a) of Title 2 of the United States

Code states, in part, that it is unlawful for any corporation

whatever, to make a contribution or expenditure in connection

with any election to any Congressional office, or for any

candidate, political committee, or other person to knowingly

accept or receive any such contribution.

II. Description of Findings

The audit included such tests as verification of

total 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 circumstances.

The principal officers of the Committee during the

period auditod were r-1r. Bill Taylor, Chairman, and Mr. Harry

Schooley, Treasuror •

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B. Allocation of Administrative Expenses

Soction 434b(2) of Title 2 of the United States Code,

states, in part, that each report shall disclose the full name

and rna i1 j nq addres~:; of each person who has made one or more

contributil)ns to or. for such committee wi.thin the ca1encldr year

in an agq rc~qi.l te amount or value in excess of $100, tOCJcUwr with

the amount and date of such contributions.

Section 104.3 (.t) (1) unci (2) of Title 11 of the code

of Federal Requl.ltions states, in part, that each in-kind

contribution shaJ] be valued at the usual and normal chal~q(~ on

the date rCC01.V0c! ;md reported .1 f in excess of $100 on the

appropriate scl1('d\lll~ of receipts and expenditures, identified as

to its nature and listed as an in-kind contribution.

Section 106.1(e) of Title 11 of the Code of Federal

Regulations states, in part, that party committees which have

established Federa1 Campaign con~ittees pursuant to Section

102.6 sha 11 alloc'1 te administrative expenses on a reason'lble

basis bet\'1een the i r Federal and non-Federal accounts in pi-aport i (1:1

to the amount of funds expended on Federal and non-Feder.,l

elections, or on another reasonable basis.

During mil: reviC\·, of the Comm] tt.ee' s reports and

records, we deter.mined that the administrOltive costs were not

alloc~ltC'd betwepn the Federal and non-Fc~dc·r.,l accounts for the

period the Con~jtl:l~e \'1as reqistered (8/:n/7(,-12/31/76). Committee

officials stated that these costs were p"id entirely by the Stelte

Committee, a non-(·\.:der.:l1 committee.

Subseqlwnt to the audit fie1dwor}: the Committee

determined that itn allocable portion of the administrative

expenses for the pc·riod 9/8-12/31/76 totaled $1,412.21. RasL'c1

on the documrm t.:l t i on submi t ted by the Commi t tee, the Audi t s ta f f

has determined tllOl t $1,412.21 in administrative expenses appC'~ll~S

reason.:lble for the period the Committee \'1as in existence.

On June 11, 1979, the Committee filed a report

disclosing an in-kind contribution for. $1,412.21 from the

RepublicLln Party of Florida, the non-Fc~deral Committee, stat 1.IW

that the contribution represented payment of the Committee's

1976 administrative expenses. In addition, on October 9, 1976,

the Cor.unittee notified the COMmission by letter that the nonFederal account accepted corporate contributions in 1976.

'l'herefore, the COMmittee aMended its reports to disclose $1,412.21

as a debt owed to the non-Federal account, stating that a refund

would be made when funds become available •
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Reconunendation

Based on the above stated actions by the Committee the

Audit Division reconunends no further action on this matter.

C. Preservation of Receipts

Section 432(d) of Title 2 01" the United Stiltes Code

sti.ltcs, in part, th,lt it shall be UlP duty of the trcasun-'r to

obta.1n and keep u. n'ceipted bill, stilti.nq the particulan;, for

0.vc~ry expenditure 1lI.llle by or on beh,11 I" of a political cOlllmittee

ill excess of $100.00 in amount, and 1"01- any such expenditure in

it l(~sser amounl., if the aqgreqate amount of such expenditures to

tlll! same person dur i nq the· calendar YC'.lr exceeds $100.00.

Additionally, Section 102.9(c) (4) of Title 11 of the

Code of Federal RC0ulations states, in pnrt, that instead of a

receipted bill, the treasurer may keep the cnncelled check

showing payment of the bill: and the bill, invoice, or other

contemporaneous memorandum of the transaction supplied to the

committee by the payee.

Our review of the Commi ttce' s expl'ndi ture records

disclosed eiqht (8) expenditures, totaling $5,055.33, that were

not supported by receipted bills, invoices, or other contemporaneous

memoranda. This represents 57.1~ of the nunilier and 20.4% of the

dollar value of itemized expcndi tures. Conmli ttee of f icials agreed

to obtain and forward the required document~tjon.

Recollunend.:l tion

On Hay 10, 1979, the Committee offici.:lls submitted document..ltlon

for two (2) expenditures tot~linq $3,000 nnd Qvidence of their

efforts to obtain the documl'nt.:ltion for t.he rt'mill.ning six (6)

expendi tU1~es tota 1.1 nq $ 2,0 S:i. 33. There fore, \o,JC' recommend no

further .:lction on this m"ttel- •
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