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Attachment as stated

FRED EILAL'lD

PRESS OFFICE ~h

BOB COSTA ~~ JUDY HAWKINS~

PUBLIC ISSU&~CE OF AUDIT REPORT - REPUBLICAN STATE CENTRAL AND

EXECUTIVE CO~t~ITTEE OF OHIO

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FEDERAL ELECTION COM,\\ISSION

cc: FEC Library

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\....-..P-ublic Record

August 7, 1979

All informational copies of the report have been

received by all parties involved and this report may be

released to the public.

Attached please find a copy of the final audit report

of the Republican State Central and Executive Committee

of Ohio which was approved by the Commission on July 31,

1979.

SUBJECT:

THROUGH:

MEMORANDUM

FROM:

TO:

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The Committee registered with the United States House

of ~epresentatives on January 11, 1974. The Committee mai~tai~s

its headquarters in Columbus, Ohio~

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FEDERAL ELECTION COMl\'\ISSION

Overview

REPORT OF THE AUDIT DIVISION

ON THE

REPUBLICAN STATE CENTRAL AND EXECUTIVE CO~~ITTEE

OF OHIO

A.

I. Background

This audit report {s bas~d on documents ~nd working

papers which support each of the factual sta~e~ents. They :or~

part of the record upon whi~h the Co~~ission based its decisio~s

on the matters in the report and were available ~o Commissioners

and 3~propriate staf: for review~

This report is based on an audit of the Republican

State Central and Executive Committee of Ohio (lithe Committee") ,

undertaken bv the Audit Division of the Federal Election

'Ccmmission i~ accordance with the Commission's audit policy to

determine whether there has been complia~ce 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)

0: Title 2 of the wnited 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 audit covered the period from January 1; 1976

through Octobe~ 23, 1978, the final coverage date of the

. latest report filed by the Con~ittee. The Cor.~ittee repor~ed

a beginning cash balance on January 1, 1976 of $5,772.09, total

receipts for the pericd of $1,773,791.08, total. expenditures :or

the ?eriod of $1,778,073.~9, and a closi~g cash balance cn

Oc~ober 23, 1978 of $1,~39.68.

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B. Key Personnel

The principal officers of the Committee during the

period of the audit were Mr. Kent McGough, Chairman, from

January 1, 1976 through June 29, 1977, Mr. Earl T. Barnes,

Chairman, from June 30, 1977 through the present, and

Mr. GeorgeC. Eyrich, Treasurer.

C. Scope

The audit included such tests as verification of total

reported receipts and expenditures and individual transactions;

review of required supporting documentation and analysis of

Committee debts and obligations; and such other audit procedures

as deemed necessary under the circumstances.

II. Auditor's Statement and Description of Findings

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

of the reports and statements filed and the records presented,

that, except for the deficiencies noted below, the reports and

statements of the Republican State Central and Executive Committee

of Ohio fairly present the financial activities of the Committee

for the period covered by the aUdit. Further, except as noted

below, no material problems in complying with the Federal Election

Campaign Act were discovered during the course of the audit.

Audit Findings and Recommendations

A. Excessive Contributions

Section 441a(a) (2) (A) of Title 2 of the United States

Code, states that no mu1ticandidate political committee shall

make contributions to any candidate and his authorized political

committees with respect to any election for Federal office which,

in the aggregate, exceed $5,000.

Section 44la(f) of Title 2 of the United States Code

states, i~ part, that no candidate or political committee shall knowingl~· accept any contribution or make any expenditure in

violation of the provisions of this section •
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A review of the Committee's records and reports

disclosed that contributions aggregating in excess of $5,000

were made to the '76 Taft for Senate Committee by the Committee

prior to the 1976 primary election which was held on June 8, 1976.

For the period January 1, 1976 through June a, 1976,

the Committee made 17 in-kind contributions totaling $1,439.83

as well as one (1) direct contribution of $5,000 on ~ay 11, 1976.

In addition, the Committee records disclosed that in 1975, the

Committee made six (6) in-kind contributions totaling $2,149.81,

to the '76 Taft for Senate Committee. Total contributions

attributable to the 1976 primary elections were $8,589.64 or

$3,589.64 in excess of the contributor's limitation of $5,000

per candidate, per election.

Although the '76 Taft for Senate Committee registe~ed

wit~the United States Senate on ~ay 21, 1975, and filed disclosura

reports during 1975, all of the contri~utions ($8,589.64) from the

Com~ittee we~e reported during the fi~3t two (2) quarters of 1976.

The Committee officials stat~d that they were unaware

that the excessive contributions were ~ade.

Recommendation

Cn April la, 1979, the Cc~~itte~ obtained a re:und for the

excessive contributions ($3,589.64) :~0~ the '76 Taft for Ser.atc

Corr~ittee. Additionally, the Ccrnmitte0 submitted copies 0:

both sides of the refund check wit~ t~e reverse side being

endorsed by the Committee. Therefore, we recoIT~end no further

action on this matter.

B. Disclosure of T~ansfe~s

Section 434(b) (4) of Titl.e :: of the United States

Code states, in part, t~at eac~ re~o~~ sh3ll contain the name

and address of each polltical cor.ni t "=e:.:: fron ~.;hlch t::e reportin0

committee received, or to whic~ that c~:~mittee made, anv transfe~

of funds, together with t~e amounts a~d dates 0: all tr~nsfers.

Sect~on lO~.2(b) (4) 0: Titl~ 11, Code of Federal

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t~e ~~en~~~lc~~~on 0: eacn pol~t~~a~ ~~~an~zatlcn rron ~h~ch

t~e ~epor~ing cc~~~i~tee received, O~ ~~ which t~e co~~ittee

made, a~:.:· t~ans:t~:- 0: :tlnCs, ~cge~~1e~ ·.·.·:.:.~1 t11e aJ:"~OU::-:S and da~cs

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The Committee publishes the Ohio Republican News, Inc.,

a newsletter, printed for the purpose of informing members of

the party's activities. The newsletter does not advocate the

election or defeat of any candidate for federal office.

Subscriptions for the newsletter are $1 and $2 and are deposited

into a separate account maintained by the Committee. They were

reported as unitemized receipts (line 17b) on the Committee's

disclosure report.

The Committee received transfers from unregistered

political organizations which were comprised of payments from

individuals for subscriptions to the newsletter. For the .

period January 1, 1976 through October 23, 1978, the Committee

received 436 transfers (ranging from $1 to $444) totaling

$19,408 which were not properly disclosed by the Committee.

Recommendation

Based ~pon the Audit staff's recoIT~endations, the Committee

filed amended reports on April 4, 1979, disclosing the transfers

in the required manner. Therefore, we reco~~end no further

action on this matter.

C. Expenditures ~ot Properly Reported

Section 434(b) (9) of Title 2 of the United States

Code states, in part, that each report shall disclose the

iden~ification of each person to whom expenditures have been

made b~' a political co~mittee within the calendar year in

excess of $100 or in an aggregate amount which exceeds $100.

A review of the Committee's reports disclosed that

the Committee failed to itemize expenditures of $100 or less

which aggregated in excess of $100 on thei= 1976 disclosure

reports. All expenditures in 1977 and 1978 were itemized. It

was dete=~i~ed that in 1976 there were 270 expenditures, tctali~g

$14,963.03, which aggregated in excess of $100 and required

itemization. This represents 20.03% of the number and 2.15%

of ~he a~ount of expenditures requiring itenization in 1976.

RecOL:".:::e:1dation

3ased upon the Audit staff's recommendation, the Comnittee

:ilec a~ ame~ded report on Ap=il 4, 1979, iterni=ing the

e:·:~~::.:ii.o::.:.=e5. Tl1ere:ora, ~·."e reccr:une::d :10 further ac-tion on

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"PrcGented below is another rnatternoted during the

audit for which the Audit staff feels no action is warranted.

The Committee has been advised of the matter and informed of,

the related requirements of the Act.

Upon review of the Committee's reported debts and

obligations, it was determined that the final pa~~ents of 22

debts totaling $57,527.92 were not reported on Schedule C as

required. All expenditures related to the debts requiring

itemization were disclosed or. Schedule B.

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D. Oth~r Matters

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