ALEX1/090288

FEDERAL ELECTION COMMISSION

A87-35

Septembe r 2, 1988

MEMORANDUM

TO:

FROM:

SUBJECT:

FRED EILAND

CHIEF, PRESS OFFICE

ROBERT J. COSTA -;:(jtC- ASSISTANT STAFF DIRECTOR -

AUDIT DIVISION

PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT

ON THE POLITICAL ACTION COMMITTEE OF THE

ASSEMBLY OF TURKISH AMERICAN ASSOCIATIONS

Attached please find a copy of the Final Audit Report

on the Political Action Committee of the Assembly of Turkish

American Associations which was approved by the Commission

on A ug ust 26, 1 988 •

Informational copies of the report have been received by

all parties involved and the report may be released to the

public.

Attachment as stated

cc: Office of General Counsel

Office of PLblic Disclosure

Peports Analysis Division

FEe Library
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FEDERAL ELECTION COMMISSION

WASHINCTON. D.C. -.s

A87-35

ALDl/OI27.,

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ItBPORf OP ". AUDI" DIVJSI08

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POLITICAL A~IOR COMMIftBl or If. ASSBMBLY W trlJRKISB

,. AMBRJCAR ASSOCIATIOa

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~. Backgrouna

&. OXervl••

~I. r.port t. baa.d on an audit of tbe Political

action Committee of the a....b17 of "ur~l.b a..rican As.oelation.

(8th. Committe.-), una.rt8t.n by tb. Aualt Division of tb.

,.a.ral Election Comal••ton in accordanc. wltb tb. provlalona of ~b. Federal Election Campaign' Act of 1'71, ••••ended (-tb. Act8 ). ~he audit va. conduct.d pur.uant to 2 U.I.C. I 438(b) whlcb atat••, in part, tbat the e~l••lon .ay conduct audite ana

field inve.tigation. of an, political committ•• requir.d to file

a report under Section 434 of tbl. title. Prior to eonauctlng

any audit uDder tbJ•••ctJoa, tb. Com.i••loD .hall perform an

internal reyl•• of r.port. f11,a b, .electea commltt••• to

deter.lne if tb. report. filea by a particular committe••••t the

tb%eabola requir••ent. for aubltantial compliance with the Act. . '

!be Committ•• regilt.r.a witb tbe Pederal .l.ctlon

Ccmml••ion on May 30, 1'85, and .alntain. itl beadquart.r. In ~a.blngton, D.C. ~b. connectea organization of tb. Committe.

durin? the audit period wa. the a••••bl, of ~urki.b American

Aeeoe_atlone (8tbe Connected Or9~n!~t!on·)~ a aeaberehip

organ!sa t1011.

• The IlUdit co._rea the perloc1 lIay 30, 1'85 through ».cem~r 31, 1,a&. ~b. Committee reportea an opening c••h

balance on JUDe 1, 1985 of '-0-, total receipt. for the perlee! of . t70,405, total dlsbur...ent. for the period of "',059, ana •

clo.ln; cash balance on Deceaber 31, 1186 of '.,3.'.

Tb18 ~.port tl ba••a on aoc~ent. and workpapera aqpportlng each of it. factual .tate.ent.. !bey form part of the

z-ecord upon vblcb C01D.JDil.ion baled itl dec1.ion on tbe .attere in ~b. r.port anc5 were a.allable to tb. CCDJD11.ionera ana

appropriate ataff for r.view.
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B. Key Personnel

~be ~reasurer of tbe Committee during tbe perled.

coverea tbe audit vas ~. Bulent Atelay_ ~be d••19n•t ea

agentll of tbe Committee Is Mr. Brol Ozdemir.

c. ScoP'

~he .ualt includea auch te.ta •• verification of total

reportea receipts, disbursements and individual aisbursement

tranlactlone, review of requirea supporting aocumentation, analyeis ~f Committee debts ana obligation., and Buch other aualt procet'l~r.8 •• deemea necesaary unaer the circumltanc... Bowver,

although the contribution recorda provided by tbe Committe...t

the recordkeeplng requirement. of 2 U.S.C. I 432(c) ana 11 C.P.R.

J 102.ICa), they dia not incluae any .aterial preparea outaide of

the Committee. ~er.for., DO verification of Inalvidual

contribution tran••ctlan. vaa performea.

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II. Audit Plnaln98 a~ Recommendationa

A. Mi8.tat~ment of Pinencle1 Activity

Section. 434(b)(lj ana (2) of ~itl. 2, united State.

eoa., require tbat • colUl1ttee report tbe beginning ca.h on hand

ana tbe total aum of all Eecelpt. aade during a reporting peri04

aDd tb. calendar year.

~he Aualt ataff perfo~ed a reconciliation of activity

per tb. Committee'. bank account to ita disclosure report. wbicb

lndicatea that total receipt. on tbe 1986 Year Bna Report w.re

underatatea by '8,000 resulting In an una.r.tate.ent of ending cash at December 31, 1986 of f.,OOO. ~hl. underatatement v •• apparently the result of the Committee'a fallure to report an

$8,000 depoait on.December 12, 1986.

~h. Cammittee re~esentatlve atatea that b. bellovea

tbe depoait va. compos." of funda intended for the Connected

Organization but lDaavertently depoalted into the COmmitt•••• account. On Januarf 25, 1188, the Committee representative providea record. of thia receipt wblcb 8upport.a thl. contention. ~ln.lly, tb. Committee representative stated that tbe Committe.

would fl1e ani amend~ report diaclosing tbe deposit. ·

1/ According to a letter r.ceived ••bruary 2, 1'88, tbe

Committee 1. currently without a ~r.a.ur.r. ~b. d••lgnatea

agent i. addte.alng all is.ue. until a ~r.a.urer 1.

appointed.
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In the Int.ria Audit ••port tbe AlIait atatt reco...naea

that the Co..i~t•• ..end tb. Y••r Bna 1188 di.clo.ur. report to

corr.ct tbe r.ceipta ana cub Oft baNS fllur... Oft "un. I, 1188, tbe C~ltt•• fJl.a aD ...na.a E.port to diaclo•• tb. a.posit ana

corr.ct tbe al••ctate••nt Doted abo... ~,,-. • .... 0

.ecomm.naatlgn '1 .- ~b. Audit 't.~f r.coaa.na. no furth.r action on tbla .att.r • ., .

B. Mattera Referr.d to the Offic, of aeneral COun••l

Certain .att.r. not.a aurlng th. audit v.r. r.ferred to

the CCIDIIll••1on'. Offic. of G.n.ral Coun..l.

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