• FEDER/At ELECTION CO,\1,\\ISSION

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February 16, 1979

l4EMORANDUM

TO:

THROUGH:

FROM:

SUBJECT:

FRED S. EILAJ.'lD

PRESS OFFICE

~¥BOB COSTA

JUDY HAWKIN/,LPUBLIC ISSUANCE OF AUDIT REPORT - PENNSYLVANIA GOP CONGRESSIONAL CO~~ITTEE

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Attached please find a copy of the final audit report

of the Pennsylvania GOP Congressional Committee which was

approved by the Commission on January 25, 1979.

As of this date, February 16, 1979, all informational

copies of the report have been received by all parties involved

and this report may be released to the public.

Attachment as stated

cc: FEC Library

~D

~ublic Record
• FEDERAL ELECTION COM,\t\ISSION

1\.!c; K SI Rill N.W.

~'v.·\'.IINC 1()N.D.l. 204f,.,

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REPORT OF THE AUDIT DIVISION

ON THE

PENNSYLVANIA GOP CONGRESSIONAL COMMITTEE

I. Background

1\ • OverVie\ol

This report is based upon an audit of the

Pennsylvania GOP Congressional 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 comnliance with the

provisions of the Federal Election Campaign Act of 1971, as

amended ("the 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 fi~ed

under the provisions of the Act.

The Committee originally registered with the Federal

Election Commission on September 17, 1975 under the name of "A

Salute to Pennsylvania Committee. II The Committee changed its

name to the Pennsylvania GOP Congressional Committee on

September 7, 1976 in an amendment to its statement of organization

\vhich further identified the Corcunittee as a state conunittee of

the Republican Party. The Committee maintains its headquarters

in Harrisburg, Pennsylvania.

The audit covered the period from January 1, 1976 to

March 31, 1978. During this period the Committee reported an

opening cash balance of $6,335.19, total receipts of $228,080.89,

total expenditures of $234,316.08 and a closing cash balance of

S100.00.

This audit report is based on docucents and working

papers supporting each of its factu~l statements. They form

part of the record upon which the Commis~ion based its decisions

on the matters in this report, and were available to Commissioners

and appropriate staff for review.

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• B. Key Personnel

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The principal officers of the Committee for the period

covered by the audit were Mr. Richard C. Frame, Chairman January 1,

1976-March 29, 1977, Mr. Richard C. Filling, Chairman March 29, 1977

to the present, Mr. George C. Werner, Treasurer January 1, 1976-

August 19, 1977 and Mr. Jacob D. Yaros, Treasurer October 11, 1977

to the present. 1/

c. Scope

The audit included such tests as verification of total

reported receipts and expenditures and individual transactions;

review or required supporting documentation; analysis of Committee debts and obligations; and such other audit procedures

as deemed necessary under the circumstances.

II. Auditor's 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, except for the deficiencies noted below, the reports and

statements of the Pennsylvania GOP Congressional Committee fairly

present the financial activities of the Committee for the period cov~red 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.

A. Disclosure of Transfers-In

Section 434(b) (4) of Tit~e 2, United States Code requires

a committee to disclose the name and address of each political

committee from which the reporting committee has received any

transfer of funds, together with the amounts and dates of all

transfers.

During the course of the audit, it was determined that

the Co~mittee did not itemize 32 transfers-in of $100 each. This

represents 50% of the total number of and 9.17~ of the total dollar

value ($34,900) of all transfers. The Committee included these

transfers-in of S100 or less with unitemized contributions. The

treasurer explained that he was unaware of the requirement to

itemize all transfers regardless of amount.

Mr. Werner resigned as Treasurer of the Committee on August

19, 1977 and Mr. Yaros was disclosed as the Treasurer on an

amended statement of organization received October 11, 197i.

An Assistant Treasurer was in office during the vacancy in

the office of Treasurer.
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~he committee was advised of this matter at the conclusion

of the audit and filed an amended report correctly itemizing these

transfers-in on October 23, 1978. _

Recommendation

Since the Committee has filed an amendment correctly itemizing

these transfers-in, no further action in this matter is recommended.

B. Disclosure of Contrihutor Information

Section 434(b) (2) of Title 2, United States Code

requires a committee to disclose the occupation and principal

place of business, if any, along with the full narne and mailing

address of each person who has made one or more contributions to

the committee which, in the aggregate, exceed S100, in a calendar

year together with the amount and date of such contributions.

A review of the Committee's contribution records revealed

that the Committee did not adequately disclose the occupation and

principal place of business of 136 (36.96%) and 94 (25.54%) contributors, respectively. At the request of the Audit staff, the

Committee conducted a mailing in order to obtain this information.

The results of the mailing received in an amended report on

October 6, 1978, indicate that the Committee received 79 responses

for the contributor's occupation and 46 responses for the contributor's principal place of business. This reduced the percentage

(and total number) of the inadequate disclosure of occupation and

principal place of business to 15.49% (57) and 13.04% (48)

respectively.

Recommendation

It is the op~n1on of the Audit staff that the Committee has

used its best efforts in attemptinq to secure this information.

Therefore, no additional action in this matter is reco~ended•

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