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FEDERAL ELECTION l~OMMISSION

1\2' '" SIKHt N W.

W;\StIiNG l()N.(}(. 2Cl4b3

REPORT OF THE AUDIT DIVISION

ON THE

CITIZENS FOR HICKS COHt1ITTEE

I. Background

A. Overview

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This report is based upon an audit of the Citi.;~ens

for Hicks Committee, The New Generation for Hicks, and the

Hicks Luncheon Committee ("the Conunittee(s)") undertaken by

the Audit Division of the Federal Election Commission in

accordance with the Commission's audit policy to deternline

whether there has been compliance 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 filed under the provisions of the Act.

The Citizens for Hicks Committee rcnistered with the

Federal Election Commission on June 7, 1976 as the principal

canlpaign commit tee designa ted by David V. Hicks, the Repub lican

candidate for the United States House of Representatives from

New York State's 24th Congressional District. Mr. Hicks

authorized The New Generation for llicks on June 30, 1976

and the Hicks Luncheon Committee on August 16, 1976.

Thc audit covered the period April 1, 1976 through

June 30, 1977, the final coverage date of thc' latest report

filed by the Committees at the time of the audit. The

Committees reported the following activity during that period:

Citizens For

Committee Hicks

The New Generation

for Hicks

Hicks Luncheon

Committce

Beginning Cash -0-

Total Receipts $58,083.16

-0-

$ 910.00

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$700.00

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Total

Expenditures 54,896.64 1,285.00 700.00

Ending Cash 3,186.52 (375.00) -0-

"~~';' !I Actual expenditures were $910.00. The $375.00 was ~~ ,i a debt absorbcd and paid by the Citizens for Hicks ~. '~'" "I''ll '.-.., Conunit tce .

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Termination reports were filed by the New Generation

for Hicks Comnlittec on Novenilicr 4, 1976 and the Hicks Luncheon

Committee on September 15, 1976.

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.

B. Key Personnel

The principal officers of the Committees during the

period audited were:

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Committee Chairlnan Treasurer

C. Scope

The audit included such tests as verification of

total reported receipts and expenditures and individual transactions; review of required supporting documentation; analysis

of Con~ittcc debts and obligations; and, such other audit procedures as deemed necessary under the circumstances.

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Citizens for Hicks

New Generation for

Hicks

Hicks Luncheon

Committee

Josiah Bunting, III Edwin C. Phillips

Michael Mannix Edwin C. Phillips

Albert T. Hall Malcolm A. MacIntyre

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II. Auditor's Statement

It is the opinion of the Audit staff, ba5ed upon examination of the reports and statements filed and the records presented, that the reports and statements of the Citizens for

Hicks and the Hicks Luncheon Comnlittce fairly present the

financial activities of the COlnmittecs for the period covered

by the audit. No material problems in complying with the

Federal Election Campaign Act were discovered during the

course of the audit .

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Further, based upon examination of the reports and statements filed and the records presented, it is the opinion of the

Audit staff that, except for the deficiencies noted below, the

reports and statements of the New Generation for Hicks fairly

present the financial activities of the Committee for the period covcred by the audit. Except as noted below, no material problems in complying with the Federal Election Campaign Act were

discovered during the course of the audit.

Ill. Audit Fin~i~8s and Recommendations with Respect to the

NC\-1 Generation tor Hicks Com:l1ittee

A. CampaiGn Depository

Section 437b(a)(1) and (b) of Title 2, United

States Code, states, in part, that any political committee

authorized by a candidate to receive contributions or to make

expenditures on his behalf, shall maintain a single checkin~

account at a depository designated by the candidate and shall

deposit any contributions received by the committee into such

account. No expenditure may be made by any such con~ittee on

behalf of a candidate except by check drawn on such account,

other than petty cash expenditures not to exceed $100.

The Con~ittee did not maintain a checking

account as required and all disbursements were made in cash.

Committee records and reports verified that only three (3)

expenditures in excess of $100 had been made. These three

(3) accounted for all but $50.80 of the Committee's actual'

expenditures.

Reconunenda t ion

The Audit stnff recommends that no action be tnken on this

matter since the expenditures in excess of $100 accounted for

less than 2% of total money expended by the Committees durinb

the campaign.

B. Filing of Statement of Organization

S~ction 433(a) of Title 2, United States Code,

states "each political committee \vhich anticipates receiving

contributions or making expenditures during the c31cndar year

in an a~gre~atc amount cxceedin~ $1,000 shall file with the

Commission a ~tatc~ent of organization, within 10 days after

its organi~:3tion or, if later, 10 days after the d3te on \.;hich

it has information \-1hich causes the comnlittce to anticipate it

will receive contributions or make expenditur~s in excess of

$1,000."
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As of the date of the audit the Committee had

not filed a statement of organization, although it did file

one subsequently on December 6, 1977. Also, one report

reflecting all Committee activity has been filed.

Recommendation

Since the Committee has filed a statement of organization

the Audit staff recommends no action on this matter .

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