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REPORT OF 'filE AUDIT DIVISIOH

ON THE

ERTEL FOR CO~\GRESS CO:'l~'lITTEE

A. OVP rvi C\oJ

'1'h L:: rpport is hlt~;l'(l upon an audit of the Ert(l] for

Congr(:::~; COI:l;llitlcc ("t.he COL1l1i.tte(~II) l1n<1crla1~('n by the Audit

Divi~;ion or 11a~ F(\dernl Election Co:::ni:::iiol1 to d~t(~rllline \·,'hr'ther

thcrp ha~ bL\l'll eOlnpliance \-li.th the i)1-()vi~;iollS of the Federal

E.l~cti()n C:l111p:lir',l1 Act of 19"/1, n~; n:ncnded (lithe Act"). The

Cludi t v}a~ eon due tell pursuant: t.o S~C t ion 1~3 S ([1) «(}) of T1. t lc 2 J

UnIted SL:lt <.\~; Code, \'1hich directs the Connni~;ni.on to l1~akc [rotn

time to tililC ~llldits ano field :invest.:i~~ation[j \·]i1.:h respect to

rcportB and ~;latelI1cnts filed under the provisions of the Act.

TIH' Co:r:nl'i t t·(le rC~f i~ tered '~,::i.th th(! Federnl Election

Commission on Fl"'hrl1~n:::, I.) 1976, as the principal C(11:1pai~',n C01nl:d ttl'C dc~j ~,llat l.'d by thl~ lIC)l1c")rl1hJ e l\llell ~':" Ertel J DL:l:1oc1·atic

cnndilL 1t~(' i 0 1· L~ ll'C t inll to the Un i L(> d S ta tes HOll~; e 0 f Rcpr(~:-; cntl.\ICfi f1'ol11 l\.lllll~~\·lv~l11.ia's 17th COl1:::·cs:;ionnl District. The

Commi.tll'(' maj nta'Lns its hcaJquartc~s in \·Jillial1u;port,

llennsylvania. .

The :ludit covered the pcri(,J from January 1) 1976

t. hrough J\1nl'" 30, 197"/ , the f:Lna 1 cover~llr)e da te of thL~ 1'1test

repol·t fill'd by the Cl'nnni t tee a t the til1H.~ of the audit:. Tile

COliUiLLltec r('pnrted 11 bc:.~iHnin,~~ ca~~h balance- of ;;-0-, total

r e c c i p t s [ 0 r t 1H'pCr 'i \. HI 0 f ~~ 11 7 , 535 . ) 9, t () t 1 (~x r C Ill1 i t:u r e :"; for

the pcrioJ of ~llO"I, 713.39 and .:l closing caGh balance of $9,822.20.

'fh i:; and i t rcport" i:j hns C'll on dOC\ll;;Cn t:; ilnd 'Horkin!j

p:lper~ 8ul'pl1rti 11i'. c:H:h oi it~~ [aclu:ll :;t:lt l.'menl.:~. '.i"!1('V [orIll

P:l1:t of t.he r\.'col·d UPl111 \dlich the CO::'l;li:;~; Lon b~lSl'd i.ts'" ,1<~c:i ~ion:~

on thl' 11l.:1t t"\.'}~:~ in tlh: 1"epo1·c llnd \·... ~r(: :1vailnble to CO,14~lin:;iollL'r:j

nnJ apprupri.~LLe ~; Larf [or rl'vic\v.

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The pr:i.llci.pal officer:, or t.l1(~ C;oHlllllttec d\1rt1l1~ the

peri.od .1udiLeJ \'.'('1'(' Ur. Fl-edl·i.l~ I·" }'l.illlkel1horJ1, Ch:d.l·ll1an, and

Nt'. \·J;.llter ..J. lIl'im. 'l're~l:;Url.'r.

The {Hl<.lit i.ncludell ~;uch L(~~~ls aft v(~rificat·i.on of

tot"al r('port-c'd rpcei pt~; ;111d (\}:p(\n<.1 tt'Ul~C'~; :tl1l1 inlliv i.dual

trCln:; it e t iOll~;; r(~v ie\·] 0 f r,,"'C[ ll-L l"el! :; up porl ill g <!OCUlilCl) l.:l L :LOll ;

:llla] y:; i ~~ of COll1111il·t (~C dt'},l fj alld 01>.1 i r.ation:;; llnl1, :;\lch oth(\r

audit pi:occdl1J:e:; as deemed necC:::;~;:lry ulH.lcr the circul1l~; t:1l1C(~:i.

It i~_~ tlH--- op.i.ld.on of the Audit. :;L;l[[, h:u~e<1 upon (\:·:;llllil1:!t- ill:'!

of the r('p()rt~; :1l111 r;tat·( tr~('nt::; filcJ .. Illtl t 11(' ]·ecord:; pr{':;('nLed,

tha t, c':·:C('pt (O]~ the lIef 1.<:1 cncics nuLl'd 1J(~l(l\·J. the rl~pol·t~; ;UH.1

s t ;1 t (.i1l (~11 t· ~~ () r t }H\ Er II 1. r0 r C(1 n gr c ~; :; C(l~lm l.i. t· t: <. ' c f air 1.y p r ( ;C11 I

the firL~~lc.i a1. act'ivit'i~s ot the CllilH1LLttec for the pl'l~i()d COVl'1'l'd

by the oud:i.t. Ftll·t-hc:c, c:-:cept. <l~; not-cd be 1()\..r, no m(1l(')~jaL pr"l,i.\ :.',:

in eOl1Ii)1:lin~~ \·~iLh the Ft~dcr.'! I Election Cuinpaign Act \·!e)~c d.i~~c{)\'(:rcd

during t.lt,,~ cour~;e of the [lull i L.

Section Ij:~!t(h) (:-~) of Title ~.~, United States Code I St.~~tL·~.;

:~ n p ll.~ • t 11 ;~ (1 pol i Lie lIe 011.i :1.i. 1- I.e L' inc 1tH.•1e ! nits r ~' por t. :; t h (! •

l.dL'nt·lL:L\.;;:~-J.on of (ltlcll pl.'r~;on [l·OiH \·:h~·l::~ It 11:1:~ recc)).ved contrlhtltiol1~'; \·:~~1_ch in th(' :l~~~'.rl'~~;ltl· C'Xl.~Cl"'li $100., :ind the daLe, 31:1011nt,

and total ~~UlI1 of ~;uch Cl)ill ribut ion~; \·:lthin the calcndtLt:" year.

Section IO/i. 3 (a) of t h("' COilmii s~~ion'~; Rcgt11[~t'i()lis

BLatcs th~it each in-kinll cnnt'l-ibution shall be valul~d at: thp

usual :1nd l1l),.mal (;h~ll"l.~l.' (.)n tIlt, <..idte rl~('eivC'd anll reported if in

cxc('~):~ of $ 1.00 on the :tpprop)4 i :1 te :-; ell\ ·1.1ulc 0 r rcccip ls and

C'xpendi tur,,'f;, idcl1 t- if.i (.;"i .:l~; to its na Lure [lnd lis Lcd as an

in-kind contribution.

A re\Tic\·.l or t:1H~· C011lin:lttc'c' cl)l1tributor rccord:-; reveale,1

that tln·pe (3) j n-l~; nd cpntr°.i },ut:i.(lu:: r(.!ct'ivc(l bl~t\:l---en Svpt('J;ibf'l'

24, 19·iC> ~:nd Dc·ccllIl>c:.- 1, 19'1() tOt~1.l:i n~', $5!l:~. 7:~ \\'rcre not r(\po~·t:l'\ °

'1'h,," C"'~:I':; it t.l'C lldd IH) ('~':j).l ~111;1 t-·i on io)~ t.lh~ O~11i~-;~i()n of the in-k.i.lh

c\>11tr.i hu~.i.(-'l1:; fruin LIh: i·VP01:t.:;.

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The COll11l1i t t l'l' h~l:; fj."l l'd :111 [l1Ill'1l\.h'd l"l'l)()rt di:-;c] o~ing tlH~

i.ll-kind cOlllJ-i.huc:ioll!:. \·!t~, lh~refore, r\.'~~llllln('nd lh':lL no act.:i.oll

be taken un l h j:j 111:1 t tcr.

SL' c 1.1 () 1l If 3/, (b) (8) .:1n d ( 11 ) 0 f T.t t. 1.(, 2, U11 j t: ('~ d S tat t'

COlic, r:t'at ('!: ill p .. lrt 1"h:1l: :l po l.:i.tiC(,ll C<'l;i~::d 1 tee r,halJ. report

tlH' t.otal. :alll1 (If conLriLlILJ.oll:; ,-llHl c:q>endiltll:CS during the

r C' porl i IlL; pCJ• .i 0 (1 •

A rpv.ic.'\v of the Conmd.tt.('(,' ~j <1i:>cJ{)~;urc report:; ;lnd

rl'l.'ol"d:~ r('\!(':l Jvd 1.11:1 t in f iv(~ (5) .i.n:j LancC'!;, dUl" Lng t hl! pl'r i (HI

..July 2/., ] <.ri() lhJ·Ull~',ll l:O\'l'll:b(~r 1, 19,(>, the Cd1;;nd_tt(,~ l"l'p(lrl,-~u

d (,I q' :"'; i 11 C111- r (' d J t () t.. ,'1 1:i. 11 ~, r..; () , Z/1 3 . 7/" a ; h (, t h r (.' C f' j P t- ~; n11 c.l

('}~p('nd.Lt·u-,·(':;. Till\refprc', hot'h 1·C'('(' i pt.:~ ~l1HI l';,:p,'ndj t.\.lr('~; lO(IP01·t-l'd

".'(,')-(' OV(.'1"[;1 :~t ('d. A C(Ju!:lrLttc.'e o[fieia.l. (':-:D1 ~t~n('d that ~l wi :;tliH~I.:l"­

~:t ,lndin~', )'C'i',cll"d i II?, proper J:l.\porting of d<..'i)L~;· and obli.~alion~

c,nl~;eJ th~ error.

'fh(~ Comrn.i t t('~ h~~~; filL'd :-1n (1111('1'1(1('1.1 r('po)"t: corrC'ctini'. the

OVl)r~lt.~lt l'd t.ot ;11:~. \':l', thCl"LlforL' , rl'l'('l1:iil(':1d that no actj on be

l(lk(~ll on lhl~; II1;i L lcr.

St~ct:i()j) /t3!.(c) ()i~ T:Ltll' ;~, lJllil('~~ ~;~::1lC'~; COd~lJ f;taLcs

in p;lrt that rCl'()jal:3 l"l:ql\-Lrl~d to L(, f i.lvd ~;!l:: 1.1 be C\l:~;\llat.ivc

d\1 r .L n ~), t.11 e l' 11t 'll , : ; 1 r v....: a )'" lo \.,' 11 LC11 t' 11 l.' V r v 1. a t C' , I n tIlid i t: i\.) 11 J

S(' cli~) n 11 :1 If (1») (:-~), (i' ) ;1 n d ( 9 ) 0 r Tit'I t' :~, 1111 i t c cl SIIi t: l' ~; Cod 4.~ ,

st:! tcs in p;lrL t Ita L L'''lCh cOil::n.i t 1.<.,(,' :o~ l"l'port ~;ball include ('~ch

r p f 11 n d 1.~ e c c i \' l' d .i n (,:~ c ~,.' : ;; () :. ~; 1 0 0 : U HI to: 1l~ j d l':1 l 1.ric ~1l i. 0 n 0 f

e:lch P('l":;un f1"(li!i \·,::~l'~.1 Lt 11a:; )~L~l'l.' i.\'(~d l'd~ltr ~b"'ltioll::-j lq~ to \-.'rh01:1

it. lI~~ldc ....~:·~lH'11l1 i t t1!:t'~; ,·,':d ch in the' ;i!·,~\l"t'~')at:....· v:·:c()ed ~;100 J anti

t·}ll' d.. 1 t' L', i 11:: <.H 111 t tall d t 0 L111 ~'~ II ~~ 1 0 f S til.' 11 con t 1" .Lbution:..; and c)~pend:LtuJ:c~,; \.:.i l hin the c:il~ndlJr YC~lr.

TIl(\ C()ii1i:ri.tt(~e [1 1(~(1 FEe Fnl"liI ~':l ror- the pc\rio"l

..l~ln\.1:l1"Y 1. 19l1 llll~OUo;Jl ~':;~rch J I J 19°/i pU14::U;':lt t.o SVl~lil)n

10il.1(<,) (:~) :llHl (~)) (.L) or t.he COii':i!;i.:;:; illll l:t':',uJ.::lions. The

..l u 1y 1.(), 19 71 1" l ' : ) d rtfi J. c,Ion ;1 FEe )0\ l r 1:: ] .i i. C 1. t hIe:; t" 11 C'

l'() r r l' c t YC (' 1r t" (l \, 1. 4t L' () a.l. ~; J 111.1 t r l ' C l i p: ~; :-! :1 e :-: p (,n cl 1. t-U J: l~ ~;

for tb(' p('r:iod .1:lnt1:!r~,· .1, l~)-II' ~hr,),l:Jl :,~.·t:,al':l 31, lC:J/Oj "·.. L"l.'"L"I

, to .• f ,-" - • ° , 1 "", ... );. '1' 1, 1 .- " (r) ;. ":"" 1 1-' \ -, : " t ••" 11" I l. .L Lt •. , 1. . l l.. J • I l " l .•1l- _.1 \ It". ....; \ l. \) '. I. ..... ,. \.. l. \, L l Ii' ,~

tot ~ll Lll~~ :~l, ()"lb. q:) ~ll1d ,)ill' :i.t:Vlll.i,::l'd (':'l11'lld 1t ~::~l' totaJ..i l1~Y,

$1.~).5. 2]. A C('l!llld t It.~c 01 fi (' Lal l'Xl'1.;1.i.lH',l tiLl t she \·!a~~ l111a\,'arc

t 11 ~l t t 11 e r C'po 1: L 1"(' '1 u .L 1"edt11 c i. tendo:: ....·d f i (~ u ~~ ~~; .

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1n t HI d.t t ion, I Ill' COlll1lli t- t ' .. ' d i. t1 11 0 I. i l. ('111 i:~ (l J 2

('):P('IHlit:Ill'e:.;, l (lt .ll i \I;', [,;],? I) I• . 11 h, \'11 d (' 11 l' Ol1l!' d :a'tl a PJl)'0:: i.!'l:tl· <.' 1Y

12fX, of llil' COll'illit It'(":; 101:11. i.1·(·Pli~:db.ll' c::l','ndiLure:i illHl l'Ir, of

the Lllt'.:ll dol1.,ll" v~ll\1e of i.l.l'llli::;,bl<.' (';":p(·lldil\\l·,-,~j. A Committee

offi c i :.1. (':'~pl~l.i Ill' 1..1 lll~lt: t Ilc it.l~lH~; \v~}:l' llot ill'l:li;;Cll due to an

over:; .i.gh t on the it- part.

Rc~comllH'n(l:lt: i.on -_.-~._-_..._-_.- ------- '1'h(~ CUlilLd L 1 .. ,(, [oj] l'd :111 rllllC1H.1('(1 J~l·p()rt· ('1) ~<.'pt:cmher 1., 1977

!;lH)\.".i.ll~', t h(~ pr0l'"'r itL'lr.i ~::lt iotl~;. \'Jc, l.hCt"l'[ore t 17ccol1al11'nd that

no act i(JIl be till~l'll 011 chi:; 11l:ltLer.

1) • D.t ~: (' 1(.) : \I r l . 0 r I (' p u i t n 1- i ( :; -----.. - ----~------_.._- •..-- ------ Sectio)) II~~'J (1») (~)) of Ti.t] e ?, llnitcd ~~t'at('s Co<1(· t

:jt;,t.l':.~ that: a COllllilL1 1.('(: ::t;il ('111"'nL or O'"f,;1l1i_:~;lt ii. ll1 ~.;h.1] 1. inclutll'

Cl li :;cin:', of ~~] 1 l);lld·.:~, :;;d~l'i-y (h'l'():~.i t· 1"...\:';('::;, l';' othel~ lA('po:~it'()J·; \.. ~~

\l~;('d, \·:hile ~~l:CI lOll Il~~'~(<.') of Tit J(~ /., l1n'ltc·d ~~::ltcs Code, requi~'l-:: i1lly ('11,11);'." in .i1ll"on;:Lt:i(.n pn·\·-Loll:;]Y :;\l!J;,ti.u.(,,1 in a [;UIH'm~llt of

orr.i111 :i. ;.;;l U on t (J 1> " u:,POJ' 1 t't1 t· 0 lilC' C(l1llini.:;siOll \i Lrh in a ten (l 0)

clay llC)~ loll foJ. J u\,! i ll~~ tbe ch~n)f,c.

011 J U 11 C :!.], 19 7() t t 11 (, Cl)1;): :I.L t t. (.(.: ()p C'l h' ,,1 a c 11 l.\('k j n g

ac:coun t· \:-1 L11 t.lH' C()jl:~l;()n·...~l'n J t 11 i~d tiOU;1 l. l~:lnk i 11 }1::1-r J.~btl1~g,

l'('nll~;yJ VZlll.L:l. Up ,'!J::cndl'd ~; I :il Qi:lC'n t l)f Ol-;~,~Jn i :~;~ t ~_()n \-.';l~.; f:i.lc(l

<.li~~clu~;:i.l!~', lh.i.~j ~l\;d L\·.i()~l:d 1 (·p()~;iL('l~~~.r, The' ;ll' ...·\):ll~t •..::l~; c lo~.a:d in JU1'!P, .l.(.t'7i, dllll 1 ::(~ 1,,: 1'l11\.'V t1~:lil~;.i l,!"\-('d t () t ;~".' C,,-)~l:~i1it't.(·l: t~;

11liLin cht'cl~ i.l~~·~ C:\l'{'c)11ilL·. ;\ CPL,lI1rL tt-ec l\l i i ci;tl l\:<:·Jl.~;ined that he

\\'a~~ t1n;n·:~ll",,'" Lh~:t. ;111 ;.i:·il..:l1dcd ~~L~itcm(,i1t. 0\' org~!lll::dlion h;H.1 not

heen [ill~ll.

Ih~comllH\lh~:~ t i.on -----------------

The' C(I~~~:11iL1.l'C\ Cj,lcll ~11l ~lm~lH~;l1L'llt- lIll ~':()VC'11~~)\.:'1~ ~S, 1977

diBclo:;in~', the rl'po~.Jllu1~Y. \~e, LherL'f "rl', reco::::.:cl1l1 no action

on thi~.; lila t: ter.

f; r~ C t: 'i () 11 !~ 32 ( t1 ) l) r 'j' .i. t 1. e 2 t 1) I lit lO (1 St" : ~' c nell <.1 (' t ~; tat (~ ~-;

in p[lrt Lh~lL t 11\.' t l~l.. ;I:.all~Cr ~;h.lll. (,lJL;I: al ;tnd kl":~) a rvcl'"i.ptl.·d h i:~ l.,

~;tnlillr, LIll' P:i1~t. i l'ul;11~~;. fIll" eve}-y r':':l)('IIf~ i ('.\11-\.' ~.:ade 1):, ('1.- ('11 be!L:: i ~ of .:l pl).I.,Lrical. ('n:.:i:1i t ll.'(" :ill (\:·:cc~~:; oC :,,!OO oJ: 11': a ll':;~;(~l~ :tL;()Unt

i.f the :i:~,?',1·t.~~·.~lt f.' ~~1:h)U11r. of :;\1C!l l~::l'l·I1\:.i t.\l1·L~~; Lo the :~'L1~h.! pvr:;oll

dut·illf. tit~ c~lJ l'll\ldl." :.'\.'':.11- L':':CL'L~\l:; ~~lUU.

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In addition, Section 102.9«(')(/.) of the Commi~~;i.()1\'S

R('gulnt:ton~; ~~taLv~; Lhtlt in t-he nbs(\n(~t· of: a reccipted bill, the

callCC lled chl'~k ;llld the bill, invoIce, or con Lcmpd~~_-:nCo\l~;

nlcmoranduIll \-Jill ~l1[[ice.

A rcvie\v of the Commi t t- ... ' ,", (';tnCl? 11cJ checks and

:i.nvoices revealed that the Committee oi.d not li1alntain r0cl~ipt:B

for 75 expenditure!; totalling $15,223.62. Thi.s represent!; 277> of

the total ntlTI1bcr ~lnd 157. of the' dollar vo1luc of ~11 committee

C>:PC1Hli tUl-C~j rcqui.r in~') Gupport ing doc \1l110 11 ta t ion. 'i he 1:1a.i ('1: it:'

of Lhe p~:J'ml~n L:; \·:('rc COl.· media ~lllvcrt:i.~; ln~~ l1ntl reililhur:a.:d expen:;l·~;.

A Comnlittee official e:·~plained that some bills may hav~ been p:1 i II

without obtaining a l-eceipt.

The COll11uittee hn:~ [or\.;arucu receipt:; to sJpport all or tht.·~;·.'

C :"~ pen d i Lu r c ~; tot11 l' A11 J itst::l f [ for rev i \'.' . \oJ e, the r e [ 0 r t', r C C (j Glucnd no action on this matter.

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