April 10, 1979

\

FRED EILAND

PRESS OFFICE~~ I

BOB COSTA ~'-...--/

JUDY HAWKINS'J'-

PUBLIC ISSUANCE OF AUDIT REPORT -

REPUBLICAN STATE CO~~1ITTEE OF DELAWARE

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FEDERAL ELECTION COMMISSION

cc: FBC Library

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/'Public Record

Attached please find a copy of the final audit report

for the Republican State Committee of Delaware which was

approved by the Commission on March 28, 1979.

As of this date, April 10, 1979, all information copies

of the report have been received by all parties involved and

this report may be released to the public.

SUBJECT:

FROf-t :

THROUGH:

TO:

MEMORANDUM

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, This rc~port is based on documents and ,.;or}:ing papers

supporting each of its factual statements. They form part of

the record u:-on which the Commission based its decisions on the . matters in tl1l~ report and ,."ere available to Commissioners and

appropriate staff: for rcvic\·:.

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FEDERAL ELECTION COMMISSION

REPORT OF TIlE AUDIT DIVISION

ON TIlE

REPUBLICAN STATE CO~~1ITTEE OF DELAWARE

A. Overvim-l

Backqround

This report i.s based upon an audit of the' Republican

State Committee of Del\l\...are (lithe Committee"), undertaken by

the Audit Division of I-he Federal Election Commission in

accordance \·,i th the Conlin i ssion'saudit policy to determine ,·,het:-.e~

there has been complLl\\ce ,·,i th the provisions of the Federal

Election C~!!\p~ign Act of 1971, as amended (lithe Act"). The audit

was conducted pursuant to Section 438(a) (8) of Title 2 of the

United St::l tcs Code' wh-i eh directs the Cornmission to make from ti~·.·:!

to time audits and field investigations with respect to reports

and statements filed 'under the,provisions of the Act.

The Co~~ittee registered with the Federal Election Con~ission on September 9, 1975 as a state committee of the

Republican Party and filed. a termination report on February 24,

1977 because the Committee took no active part in the campaig::s

for Federal office in 1976. However, the Committee re-registe~c::l

on February 3, 1978 because of an arrangement between the Conmittee and the Republican National Conunittee (RNe) in which . the RNC "laS to pay the salary' of an organizational director \·:ho

'-lorked at the headauarters of the Committee located in WilmiDc:tc:1,

Delaware. The audit covered the period January 1, 1976 throu0~ June 30, 1978 the dal:0 of the latest report filed by the Committee at the title of the. audit•. ' .

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II. Auditor's Statement

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This opinion is based on the filCt that the Cormnittee hils

not supportt::d Federal candidates to an extent ""hich requi res

a cOI:'unittee to register and commence filing disclosure reports

with the Commission •

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B• !~~y Personnel

It is the opinion of the Audit staff, based upon the

examination of the reports and statements filed and the records

presented, thilt the Republican State Cornmittee of Dela\'lare is

not a politicill conunittee as defined by the Act and is not subject

to the jurisdiction of the Commission •

C • Sc-.:.?pe

The audit included such tests as the verification of

total report(~d receipts and expenditures. and individual transactions; review of required supporting documentation; analysis

of Co~ittec debts and obligations; and such other audit

procedures as deemed necessary under the circumstances.

'L'hrl principal officers of the Cornmittee for the period

covered by the audit were Mr. Herman C. Brown, Chairman, and

r-tr. Paul '1'. 1I,1rt, Treasurer for the period January 1, 1976 to

February 2~, 1977, the date of the original termination report

of the Commi.ttee, and Mr. Jerome o. Herlihy, Chairman and

Mr. cyric W. Cain, Jr., Treasurer for the pe~iod April 1, 1977

to the prer;ent.

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