Attachment as stated

July 17, lr),/9

PUBLIC ISSUANCE OF AUDIT HEPOR'l' -

REPUBLICAN S'l'i\'l'E CENTRAL C0:-1:.JI'I"l'EE

OF' NE\"l MEXICO/REPUBLICAN Cl'\~1pr\T(~N

CO~mIT'rEE 01" NEN MEXICO ,

FRED EILAND

PRESS OFFICE

ROBERT J. COSTA.

,JUDY lIA\"lKINS . .

It", "'11-:111 :"Ii\\'

\\"\"'"1"<; J( >:\:.1)( , 211.1""

FEDERAl. HECTION COMMISSION

cc: FEC Library

Ri\D

\/ Publ ic ~ecord

All informational copies of the report have been

n!\.x~ived by all indivi(hlUl~; involved and this report may

})(, released to the public as of today, July 17, 1979.

Attachedp1e~se find a copy of the final audit report

of the Republican state Central Committee of ~IC\.; Hexico/ '

Republican Campaign Committee of,New Mexico\...hich ,.;as

ap~yt'oved by the Commission on June 27, 1979.

SUBJECT:

FROH:

't'll ROUGII:

'1'0:

~Jo:MOlU\NDUM,

,

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1'0...., ""I~'lll " \\

\ \ \',In,,( . II \" ; II .'11 \" \

HDi-.RAl Ell C. liON CO'\\l\ \ISSI( )N

REPOR'[' OF '['liE 1\UDI'~' DIVISION

ON THE

J{[':l'lIBLICl\N S'l'i\'I'l': CEN'I'I~l\T. COMr-n'j''I'EE OF NE\v MEXICO

f\1\1D TIlE

REPUB1.IC1\N CJ\l\1Pl\IGN COHHITTEF. OF NP.\v r·mXICO

~'he ,l1ltli t cc":cn-'d the period .T':111U.:1ry 1, 1976 t.hrouqh

Octobel- 21, 1978, the fi n,l1. COvcr.:1C1C date of: the most recent

ro!'or t r i lod by tho C~lmp:li c:n ComPli ttee at the time 0 f th0. .:Jill! i to

The S l:a tC' Cental Comm.i t tnc reported a b(~~l innin~l cnsh bnlanci' it t:

.Tnllu'lry 1,1976 of r;1·l,275.43, toted. recci!)ts of S100,466.:·Q,

tot,ll c:·:penc1i t:urcs of S5 3,986.37, und an cndinq cnsh halnncl~ ':11:

:1.:n·ch 31, 197G of S()O,75:>.29. 'J'he rampaiqn Committee reportC'c1

.:l lx~(I.innincr cash bal.tl1cl' of ~-o- on 1\pril 29,1976, total re'c0..i!)!:s

or S(i7,70·L03, total (':-:l'C'IH1iturl~:s of $62,827.56, ending c<lsh

b~lLlnc(' .:It ()ctO!X:l: ~~1, ]C)7;~ (:>:: S.1,87G.47 •

1\. overvim\'

':'ho Stal'e Ccnt"l"':ll Commi.tt:(·(' reni~tl'I~L'd \vith the Pnited

:·a.'ltl'~:: l!()use of Rcpn:s(~l1LltiVt;S on i\pri.l 19, 1972. The Stnte

Contru1 Committee tormin,lted OIl f"<IY 11, 1976. "'ho Cl1mpuiqn ('ommiU.I'I'

l'eCJist('I-"~(1 \vith the Fc.'dl~r..1J. Election Commission on ~'ay 11, 197G to

support: only FC::'c1crl1] cund i C:;I t(~s. '!'hl~ ('ommi t h'C's mnintained the'; r

h("l(l(~tt.:lrl:c~rs in i'\1buCluc'rejtH~, :10\': ~.1L'xico.

'J'his report i.s based upon nudi ts of the l~epuhli Ci:m

St':lte ('('ntral Committt;.~ of Ne\oJ ~·1exic() (lithe Stnte Centra] Commith:(''')

,mel th(~ Pl'!Jnblic.:m (';lmp,1:iQn Committt:'t.' of i'1C\'l ~·10xico (lit-lit: cnmpnic!!1

Cnmmitl:(,pll), llndc:r.tab"n by the i'\ud:i t nivisiol1 of the Federal l~lcct.inll

l'ommiss"ion in ,lccorc1,1I1cc with tlw commission's .:ludit policy to

detcrmiJ'" wht."l:l1l.'l· tlwro hilS boc'n comld.i'mce with the provisions of.

thc' FI~dc'I-,l1 l~l\'ction (\lm\"li rJn .:\ct of 1971, as amended (lithe 7\ct").

'J'he' ,md"it \\las concluetc'c1 \,un>lwnl: to f~('ction 438(':1){8) of '!'itle 2,

lin i h.-'c1 S t,l tes Code, \·:h i ch rI i rc:cts the' conunission to mnke from t.imc

l.n time ,lll<Uts and field il1vc~st:iqations \"ith rr,~.,p('ct to reports·

oI1H! st,lh~menl:~ fih'd unlll'r the pro\ri~don~ of tht~ l\ct.

1.

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It is the opinion or the Audit staff, b,HHx1 upon cx;:\min.:1tinnof the report.s and s t.:1 tem('ll ts filed and the records presented,

trw t, C:-:Cl:~l)t for the defi ci encies noted belo\v, the rL"!ports ilnd

st:ll:P1l\ents' of the Republ i.c~1n State Central Commi ttce of tlc'\V 1\1n:-:ico

.:1 nd the Republic,-ll1 C'ilmpaiqn Committee of New ~lC'xico fairly pro;;cn t

l- ill' financial i1ctivi ties () f: t.he Commi ttees for the perioc1 CO\'e~l!d

::,. the .:1uc1it. T'utthe".}:, eXc0pt ilS noted below, no rnnb--r:i.a1

!'l'nbl CI:1S i!1 cum],} ,,'i.nq wi. th the Federal F.lection Camp.::d qn Act ',,;'-'r'i."

d i ~: ...-::("I\·erel1 dur i llq the course of the audit •

IT. Auditor's Stilt0ment

The auc1i t included slIch tel~1:s as ver.i f i c.:ltion of tot;} 1

report.ed receipts ;}ne! expcnditlln--s and individu~11 transactions;

r ...n:ie\v of required supporti.ng documentation; an.:llysis of rommitt0c

(It·hLs and obI iqa tions; and such other <ludi t procedures a~1 deemed

IH..'cesSat..:, under the circullu-; t-ances.

-2-

'I'heprincipa1 officers of the State Central Commi U:c~c

were Mr. Jack Stahl, Chairman, and Mr. Tony D. Chan, 0.0.,

'I'reasurer. 'rhe pri ncipa 1. officers of the campaign Coromittce Kerc

~·1r. ..1ack Stahl, Chi:lirman, for the period 1\pri1 29, 1976 throu':Th

~pri1 28, 1977, and Mr. Gary Carruthers, Chairman, for the period

~pril 29, 1977 through October 23, 1978; Mr: Tony D. Chan, O.D.,

Treasurer, for the period April 29, 1976 through April 28, 1977,

Rhonda Parsons, Treasurer, for th0 period 1\pril 29, 1977 throuah

l1ctober ~3, 1978. - .

This audit rc~Pll"t is based on documents and workinq

!,"pl'rs which support c.:1l:h of the.- factual statements. 'rhey form

!'" ,- t of the record upon wh i ch the Commission based its deci:d ons

llll the matters in the report and were available to Commissioncrl;

dlld approIJ,-i..:1te staff for review•

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II I. I)c~~~ripl:i..0n of_£~_nc1in~;s \'lith RCSPN~t to

_i:J.1..<':_~_~'puhlican_J~t~te C..ntral comlii-'-ttcl~'-of i'le,'! rtexico

'1\.. !~cnortin(.L_~~f Hcceipt.s and Exnendi.tures

Sect'jon 4111(b)(l) throuqh (4), (8), (9), und (11)

or 'I'itle 2, l1nit('cl :'I·..-ll:(~~ Code, requires a politic.,l committee

tl) include in it~ report~ the identification of each person

fl'ol!l whom it h.:lS received contributions or made expendi ture~,

\-,hiI:11 in the a(lc:rcqal:e n:-:r.(~l.'d $100, duri.nq the calcndar year

tOCl(,ther with the dnte, .:.1monnt, .:.1nc1 total sum of all contribut ions .-111<:1 e:-:penditurc.~s wi IlIin the calenc1i'lr ycar.

Our revicw of Coml11,i. t tec~ rocords revealed the State

Cnnl:ral Cor.m1ittee f<1.ilec1 to fil<:, a report of receipt~ and

(':':;)('nclitures cOVeril1Cf the l>l'dncl i\nril 1, 197() throuqh l\,!1ril 29,

] 97G. 'l'he amount: of unrcpll!'I:I'll .'lel: i vity c1urin(~ this period

\':.:.1~ aP!1ro:,:in!l.b::!1y 57,036 in !','cI,jpts and $18,414 in expenditures.

'I'i1(! rl'!~C<:l~\ll~L:!~ ;'\qn' ...~c1 to f i 1\! •• !'('!)ort to disclose the unreported

act:i':ity.

RC·C0!11;'H.:l1l1a t i 011

since t:h~ St:.at0. Centr.,I ClIII11l1ittee filed an amended report

()n '-!'-lI1U<:ll~':.' 2, 1979 cHsclo~i no I'he actj vit.y occurrinq for the

!'(.:l":i.od 'I\.pd.l 1, 1976 throllllh A!)!'il 29, 197G, ,.:0. rec02r:cond no

fut·thC'l~ <:lct.ion on this r.l'-ltt:(~r.

S(~ction 43·1 (b) (11) of 'pitle 2 of the l'nited StLttes

C()d(~ rcnuin~~, :i n n~ll~t., thill: .1 committee disclose the nume

.::nd .:1c1c1ru!;!·~ o~ eilch poli tj c;:J1 cOl~lmi ttce to \·!hich t.hat committee

h.:lS In.:1c!e .:1n,,' tran!'1f('~r of fUJ1l1~, t()'lcthl~r \'l:i th t.he .:1!'10tmts and

(L,tt~S of .:111 l.l".:Insrcrs.

l't:!: rcvie:l or t.lll~ f; t.-ll:o central CC'J111'li ttec recorcls

1"(!'.T':''-ih~d 1:1::1t 13 tr.::1l1~i7t~rr; to nol itical COn1J::.i t:tees all under

~~100.00 .,1:(: t:ot.:1l:inrj $J7J.8:i (~2.4" of the total mUl1ber .:mc1 2.6"·

cf (':10 totZll dol1~!i~ Ltmol1n[' of .:111 tr.:1nsfcrs ;'l;"((:e) \\"Or0 il11propcr]'..

dif;clOSt~l1 m; unit.cmizcd op(~r;ltinq c:-:rcnc1ituros. The State Centr.,1

C(:::,mi I: t.0.C 'l'retl~Urer re~s:1()nc1...'d thLtt. she \'las un.:l'::arc of the requirc-

:::c.nl: to :i1:',):T!:':C~ Lt1.1 tr.1n~-;fc'I·!'1, rcn.:ln11css of .':11Ount, and \'1ould

r! 1c t:11C' l:C(:U~ 1"(,(1 :-:;:\('1',,1:'10111: •

~:! nCI~' t :lt~ ~~t·:tt(~ (",·:-:t·~·:11 C'O!"l::l;.t:tc'c' f:i 1c'l(1 ;1i1 ;l!!",,~""r~(!~'""\l.l r(~~c)rt

()n :\~,~"'i 1 ~r) I n -;l, i:~;;("1,~~;~.rll: t110 t:r~1:1s~-L'r'"~, "..... \"1 rt'("():·':··~"'I!llt 110

~·::l~:·::,-'~· .~l.·~ ; ':. (\!~ ':~ i ~.'.~,. ~·l·.
Si11CC ,t:~(l C'::1:1:):1:i~:t: (·(":ui1li.ttC'e fi.l·-·t! :111 0!nC11(1!~·:~~~"'..t ()~1 fo·;:·r,j 1

. \{}, 1.979 l.1i s~:]o::d.!1(: l1i·,~ c"11:;!Tiblltor i l~lo()rm:1tion, '..:C: r ..~~:dm::ieJjci

n,) further ~lct i ,111 on Lh i:: 1:1.'1 t ter.

1\. ni:;cl()f:lln~ of Contri.butions ----.-- .-. -_. _._._-_._.- ---

J. Tt' ViClf> (k~t\.~nn:i ned that tho State C.-'nt-r.-l1 ('omm rU:l~0

d irl ·notc1".lsclo'::,·· that .::tIl ohliCl.::ltion of ~~1,400 o\'l0d to ,t:he ('nnulli ttcc

ltildbeen s~1tif.;ri,'d (itC'I:dzccl on the Schedule of· P\.~bt::;·.::ln(l 'Old iqiltion:~

'..,:ith an oub,t:llllliil'! b.l,1'-1T1CC' of ~-O-)~. 'J'he St.::lt.c Ccntr.::ll COlll111it~h:"~·~'S

l'\'ports did (1:i::t:lo:';0th.. · receipt.of funds,which s.::lt.isfied tl1"

1111] iqn'ti on.

c.

~':(,(:t:i·nn ·13·1 (!') (:~) or 'ritle ~t'~r the T."nit'."-c:Stl.1tC·s endc

states, in p.·ll~L, [ihlt t'~lch l:\~port sh;1Jldisclc)s(~ t):(~ full n"nK~

.::m(1 l1Iailinq addl'':'s::; (ncctlp"tirin nnel princil~al, nl.::lc(' of business,

if 011\')' ()f." e,le]) p0.rs(--n~\':h;) hL1.s mnde ~11C~ c'r' mor;'~ cOl:t.rihuUons to

or fo~- such C(::i1!~1ittcc' 0:- C:lllCUelut.e '..:ithin n ccl1cn,1,~1- ':0;11' in :In

aqqrC'qnlc ~lmC1tlllt oi~ \-:11ul~ in cxco.ss of ~~lOO, tC)c;,~t:-lr'l--,..:ij:h·l·h(~

-:1r:l'Jtll1t ,mel d<i\:C' 0:: sUl~h cnnl:ri.hutions.

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I V.

l'l-\)scntccl belo\'! 'is a matter (1if>cuf>sed \-lith the St'::lt:e

('('ntr.::tl Commi tt0C durinc; ('he audi t· for which the :\udi t sta [r

. r('(~ls . no fur thel- .::lction ,i:; \·larr'::lll'ted.

f'tl1~i.n(;thd C0t~I-::':' of the ':lll(:it., it \':;lS d ,,:·~i::·;d [-h.d:

I h('.C.::lmp<'lj(lnCO;~nl1ittc0 dill not report t,hc OCC1.l:"lti," ,-:l:t! :.;':i Il\~i!;'il.

:,1,-1(:(') of hurdnc~ss for 1.S .i l:t:'illi7.ed conl:l-i.hut()r:~, t:o~~,:1.i.::~; .~·::~"lnO

.....(." H'!, ,)'f tjl~ ""-Jt"e>l ntl"1" ')- -'lll1,'1"P .)c t,1 1 ·, t'o"'ll "~C)]-j"': ".l·'l.'I",' ... .J ... " ,'-. • 1" L-\ t.. •• e":L.:. l..l 0 . \...l _l l. . J '-" "........ • • ~... '- , ...

)-,;c:uirinq j tcmi:-':.::lti.on). '!'he CClmp.:1:i'<"11 ('(,l1Imi ttcc ':'n;~I:',U1~6r inform'·'.l·

ll:, th':it.she \':::l~; .::l\'ltlrC of :~qmc om:i.~~.Ll)n;, -in contl-jj)utnr i:lform~lt:i.o:l

.-tlle! h.-lel intc':,c:':';'l to fiJ (' :111 ;:11IC'nclment.

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::,·,-t:ion ,132(c!) of '\"itlc 2 of the l'nit.eel States Code

:·;l:;!t:CH, in \'dl't, lh~t it sholll be the duty of the- treasurer to

obtain and k,·, -p ,I I"CC(' i pt:c'd I> i 1.1, st<i'tincT the p,ll:1:iculars, fOIl'very cxpL~lldiL1lrL~ mad\' by or on behalf of a polit.ica1 cornmith!c

i n c~xcc'ss or ~:.; 100 in <:lmoun t, ','mel "rH- ;:my' sudy c-:,:pr~nditure'in' ;\

I \:~~:-;e\: . i:lmOUI1 L, ,i f the ;:\lrqreq,l!:f' ;lmOlln t of such v:·:pcndi turef; \.0

t:h,: S;\ml~ p(~r:-;()n durin" ~1' C;:l("W!;1J- year exceeds. ~·:!OO.

Tn ;\dr.1ition, Sc:ct.ion l02.C)(c) (4) of 'l'it1e 11, Code' of

Yt··r.l\~\'~iJ. RL:qulations stab:~~:l, in IJ;lrt, that \-;hon ;\ receipted bill

is not avai1~b1e, the treasurer rni:lY keep the cnnce11ed check

::how.inq p;:l~'ment of. the hi1.1~ i:lnc1 the bUl, i.nvoice, or other conI c~m!)()r.aneous memor,:nc1um. '

Our r(~\'ic\': of tho C;:1I1\F~i(ln ('omI:1:i. ttee' s expenditure

l-\}c()r(l~.:; (li~~cl()~1c(! fi'v'e (5) c:-:!)()ncl.i t\lt~I':--'~' C::,1C!1 1.r1 - (~:-~cess 'of (1r_

:lIJ(p:,:(:;:\!:inq in c':':c":ss of ~;lOO and t'd"linq :-:1;7411.89, not

:,~upport:c-d Jr,: r,'·c,,"'i.i~:::(:ll bi.'] 1s or 0th··!' cr.•,': t.c':,l!)Or:ll1l.)OUS m(~m()1~:111(L"'I.

'l'lw tlI1SllPil\,!' !:"d c>:·:!)(~nditures l-Cprc-:';, 'Ill '.):l!)rn:d mil Le1y 22. 7r::. n f

t..h(~ tot::l1 llumb(-'r .:l~'.c1 :~·L7~:, of tht: !.Il! dl c:nll;\r ;1l110unt of e:·:pen-

,ditun:.'s rL',!lIirin(j such sUPFort:.. C:ln,·,,!·lc·d C'hL"C]',:; \·,ero avnil;lhlo:',

't'n f,;u!,],nj" t :111 of th,~ l:,:·:p(~nl1 i tures.

~~.i nCl' t'lk C::::,:):d qil ('omm i t te·:, _, s1.ll!m i l: tc'c! copies of the·

11o.'C;,,~,~~;;jc,! :;Ui,;,()t-ti.I'.0 c!ocu!nc)nt':'lt.i.on on /',l)\-il 30, 1979, W(~

!'C'COi1lll\c'nc! Ill' rllr:':h('~~- :lction on thi~j m.ltLe):.

1'1''-':;C'!1':,.~·.:: bt"lU':1 arc c)the1" lll:lt:te~r" discussed W1 th th(~

,(-,unp:liqn ('l)i:ni tl:,.-'c' clurin(J the ;111(:.1 t :',.>t" '::hich the i\udit ~~t:aff

f t "lt-l l f~'"n('') rt1!·t-hl~l:" :1 1..:::jon is \·.',-11~,r~lnl:....·(t.

1. It ':::lS' dc:-!:c'nll:i nc'd th.lt' l:h,:: C;\;ai).:li\J11 Committ(~e.

dill' nIl!: c!i::I.·I()~~<,' t·]'..::t: ~;(!v(~r;-Il n!},liC:;1\·i.0:1S o'::od by the Committe(~

l!.ld h'-"Il :~:!~·i~::i"",.l (i~:O::1iz(:d on tl",: :·~(:1'.t~;1t1]0 of nrbts and

t1Jd iq.ltlol1:; ,..:~ ~·l'. .::'. cnl~~,ti:1nclinq b:I]:l!1c'-' c:- ~~-O-). 1'ho C'~mpi:1iqn

C,)j'.m\i~·!:l;'~':; t','!'c-:-:'[-': (lid d.i"C]OSI.: tilt"' l~:':l:O~:dittll'C' of funds \·:hich

:~. : t 1. :-~ i· i t.~' d t: ,"I ():'I: . :: t:.i ()n ~~ .