Attached as stated

FRED EILAND

PRESS OFFICE ~V~

BOB COSTA ~f~

JUDY HA'~KINS /( r' (" :'j.1;:J

PUBLIC ISSUANCE OF T"INAL AUDIT REPORT -

IDAlIO REPUBLICAN CONGRESSIONAL CAMPAIGN

Cmu.UTTEE/IDAIIO REllUI~LICAN STATE CENTRAL

Cm-lr>lI'r'rEE

II.DERAL ELECTION COMMISSION

September 10, 1980

Informational copi0s of this report have been received

by all parties involved and this report may be released to

the public as of today, September 10, 1980.

cc: FEC Library

RAD

Public H.ecord!'-

Attached please find a copy of the final audit report of

Idaho Republican Congressional Campa5,gn Committee /Idaho

Republican State Central Committee which was approved 1.>~' the

Commission on August 28, 1980.

FRm.l :

SUB~JECT:

'rIlROUGH:

'1'0:

ivlEl-10RANDUM

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FEDERAL ELECTIOt\ COMMISSION

REPORT OF ,THE AUDIT DIVISION

ON THE

IDl\HO REPUBLICAN STATE CENTRAL COMMITTEE

1. !.3_~_c.k~J.':<:?:.l.n~l

l\. ovcr-vi e\~

This re~urt is ba~ed on an audit of the Idaho

Republican State 'Cc.!ntl-al Committee (" the Committee"),

undertaken by the A~lit Division of the Federal Electiori

Commission in accorchncewith the Commission's audit policy

to determine ~hether there has been compliance with the

provisions of the FeJcral ElcctiollCam~aign Act of 1971,. as

amended (lithe Act"). 'rho audit ·was conducted pursuant to,

Soction.438(a) (8) of Title 2 of the United States~Code which,

at the' time of the audit, directed the Commission tomako

(rom'tinK' to time u.u(~i ts and field in\·cst igatiom; wi th respect·,

,tu ·r.cportsand st.:ttor.:.ents filed' unc1et··provisions (Jf'the i\ct. .

'I'he ConU11ittec reqistered <:1S the Idaho R('!Jublican:-'

Conqn~ssion~11 Camp<:dCjI1 Conunittee (TRCCC) ''lith the cLerk of

the U.S. ,1I0\l~~(~ or H"IJrc'scntCltiveson October 18, 1.()74. 'l'he

IRCCC Li LL'cl c1 b~rmi:l.::lt.il.m report for the p(~riod endilll.1 Dccembel', ,

3J, 1~)7(,.On O,~tolJC'~' 3.1, 11)77, the Committl~e registerp...!\~.ith

tlh.~ Fc:der~l.l Eh'ct iU:1 COI:1mission as the Idaho Republica:l State

C('lll.r-d Cnnunitc':'L' (IRSCC). The Commi.ttee m.:lintaincd its·

hC'Lld'i\l;ll·t\'I~f; .in Boi~;~~, 1'daho.

The audit ~0vcred the period from January 1, 1976

throuqh !'1.ll·ch 31, ]/J7H, t.he final COVcr.:lge date of the latest

disclosure report fil·::-d by the .Committee at the tir.\c o~ the

.audit.

'I'he l·j·:CL:(' r·:'!'l.)t·tcd a bC<jinning c.:lsh balance Oll i\pril.

l, 19,(, 1/ I):: ~~·lG.CJ·l, toL"l.l receipts of $24,~77.00, total

e "·' .,'" 1 I '1 •. \' I' ". , ,. s" J' " 'I) (\ 1 '111;'" C 10" J.' I"'q C,., c'll b'" 1 "I'C' a~' 0 I' .,t).. ··.l. '- l.'-.,.;.' l" ••, _'j, J .....). _,~, L (., '-.. 1. ..:,,;::) c." .C-& .. .J •

Docember 31, .1')~G 0: $-0-.

L/ 'l'::c' I RCl'L" f.il~C: :'"I~L fonn .3c1 (posL~.:lrd) fOI~ t!1n p('I~iod

1,' - 3,31:'7G,
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'rill) tRSCC reported a beginning cash balance on

October 1, Iq77 of $-0-, total receipts of$7,47l.5l, total

expendi.ture:; of $u,~59.67, and a closing cash balance of

:n., I 7 ,3. G7 ~u; () f H':H" C h 3 1 , 1 97 8 •

'l'his audi t report is based on documents and work

p':lpers ,...hich support each 'of its factual statemen'ts. ''l'hc~'

form part of the record upon which the "Commission based its"

decisions on the matters in,~hercport and were available

to"Con~issioncrsarid ap0r6~ri~te staff for revIew.

13. Kc\" Personnel -_._-~----~- . -- --_..

'l'hcprin<:ip.:\l officers of the IRCCC duririg the

period Lludited \\"cr,': lIopcKac1ing, Chairman, andD. Duff McKee,

'['reasurer, 10./IS/i' ,I - 4/6/7G: VcnlOn Ravenscroft,' Chairman,

~'\Ild ~harle~. CheI1l:'/, 'I'1.'easlll~0r .1/6/ - 12/31/76. '

'rhe l.,rir:;_·ip31 of:ice1.'s of l:h,~ T!~SCC were Dennis..

tot.,Olsen, Chairma:l, :1nd C:larles Chehcy, '['1"(:-asurer.

C • Sc()~)e

Tho ,:lUclit inclu(~...~c1 such'tesb; ':Hi verification' of

I"C'ported rc.'c0i ;ltS em':: c:·:pcnd i tures Llnd individual transactions:,

I·l~vic\... uf 1.'C(!\.1 i.red supporti:1l; docurncnt.1tion: analysis of debts

'lIld obl.ilj:lti ,_):1:3; .:1:~d sllch ot:H.'l" dud it procedures as (leerneu

Il'.'ccssary Ul~,-~el" t:l<: ci rcu:::~;tancos.

s""Llon ·1-llb(~1) of. Title nf the United Stntcs

('lJd(~ ~·;t.:\LL·:;, in n.:lrt, th:lt it is u:.Ln\'l:ul. [or anv corporation

,l.,) ,m::lb~ ;1 co::t.l:1Lut.i,on ,)l" ,:::·:pendit.tll.. e in connection with any

1·\~der':ll.,".'~,L'c~.i()n t? " pl)liti(~.:lJ offie,', .:1nd it is unlawtul:.,for

~lllY ~JU1.ltl(~:I.1. C()I1I!:~l.t.~:,-:,-, k::o':::n<jl'/ tu .lcc0Vt 3n,:, such contr~­

IluLiu:l i.·I.. om:, CU!"P(;!';\L.l.0:1.

F.w t!:.: :)·.:l.".iO(: Cl}':·,~!",-:d by Ill•. ' :mdit, Section 434(b) (2)

\):: 'L'.it1.t_~ ~: t..)!- '.::1l': L:~1it.l;d ~~t.J.tt:S Codt~' ~;tatcd, ill1J.:lrt, t:llat cac11

l"l'PU1: t.. Slhll.1 ,i i.:';': lo:;(~ the ::ul.l n.:lm(' .alld r:1ai ling address of eLlch

i"'I"SO:1 ""h,) h::;: ::."d·:· o:lt: c:: :HUI....' Cl)llf: I' i butions to or for such

l:()r!l:~~i ~tt\t" \~'.i ~:-:..i.:~ t:l·~: C~11l...'\::.~lCll: ~.\.::'.:ll." ia ..111 d\;qrcgato anlOl.1nt or

\'.11.C:·':: .i:: o:·:cc.:;;:; u: S100, tu,;et:l0l: ','lith t:10 amount and dLlte of

~~tlL::; cc,nt.ri:')~::· i()~l;;.
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Dill-ins; the .:ludit, it was .:th,{) cletermilll!d Lh.:1t the

CommitLcl: ~lCCL~ptcd b:o (2) curpuI"ate: cnntributiun:, .:1nd, ill

"dditio:l, i1cccpLcd a tLl:1SfL:I' t'!"om Lb,! st.:ltc cultllnittco of: 20"i, of

lllud:: reel} i \'l:<1 Ilndl:l~ ·1c!.:l~10' s tCI:': chl:ck-of:f: prOljl",1m which wel~C

'"\Jl1uninr!!.c..:d wit.h !JP)hi:J,iLL": [und~; pl:lol.- to the' tr,1n~-;fel~.

For the period covered by the audit, Section 104.3(a)

of fl'iLll' 1.1, Code of Federal Requlations, stated, in part, that

each ill-I: i lid contribution shall be valued at the usual and normal

ch"r<Jt: 'lll t.he date received and rcported if in excess of $100 on

the ':IPI'I-upriate schedule of: receipts and expenditures, identified

i1S to it:~ nature.> and listed i1S lln "in-ki.nd contribution".

S,-,ct: i.U!1 1.01',. (t.) u:" '1' i:... j (' 11, Cu~i,) of I-',~d'.!l"__,l j·:e\ju!:ltil.1!'ls,

L<:-"cLi':l' ,\;;l-j i I), 1')77, di1:(':et.:·d pal'!.':' l"u:!::::it:t(~c:·~ \vhiC:-J

:'1,-:.":'> ",·~·;t.d")! i ~;~l' ,_~ Ft.·\.~t.':.~:ll Cl.1:apl.l i l;:1 CuIll::1 i Lt.·-ll~S ttJ ~ll IOC.:ltc

.l'::':i i :, i ~; L r ,_1 L i',:.· .::.:: 'c':l ~";c-, ,; l)l1 .1 I"c::l 50:1..b 1(: lJC\ S.1 s bc: to..:cct.:·u t h0 1r

j"_";(':-,:i .1:,.: :10:,-:·'",,:,-,:',11 d,·c·lillll::S •

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'l'ik':.i0 matte'l"S ,\'('I:e I"L~f(~l.-r(:d to the COll\lnission's Office

\) f Gen(!L,l COi.lnsc 1 for 1'u I: UW r rov im·;, whe 1."0 OU :\p l- i.1 20, J.I) 71) ,

r-1.:ltte.>1." Undl:')" 1\'.","10\'; lJ5L w"s lldti.:1tr.!c.!. As a I:l:sult of .:1 pl·eli.min~11:Y

L(~qal ,':l'-lly:;i~~, th') Commi~,sion f.ound n~llson to beli,l:!\'c the CommiLtt.)c

ViOL..lt\·d ~;L'ct.iun ·1·lll)(..l1 hy: 1) c1ceept.i.nq the in-kind contribul:iul1

() f: PCI·/Ill'.: III :-or .:leimin 1.;-j t !'.1 t i \'C' l~:': pen s(~ s bj' Lh.' ~; t.:1 b~ comml t tee, :n

,'CCl!!Jtj Wl the CUL"i.'Ol"::ltC· C'l)nt:~il.>utions, .:lull 3) by .1ccept.i ihJ the:

trC1l1sf'01- of ;20', of L:.·..· 1.:.1ho t.::l:·: chl)c~:-()fr fllnd:; :~n)m the :.it.::ltr.:!

dCC,-JUlll C(JI~t,li.n i iP; c:_.'!~!'l)!·:1~.· fU!lds.

Our exanlination revealed that the slllte committee (an

UnrC~l.1 s tered stall leyel P':ll~ty orqanizd tioll) p.:licl the ,'Idministrative

expenses ot' the Committee. We also noll~cl tlwt the' st.:llJ~ conm\.i.ttec

paid the adminisLI-ative e:·:pc..:nses with funds whusr.: SOUl:C'l! \l1as

dcrivl~d from, in part, COI"pOrate contributions. Such corpor.::lte

contribu tions an~ pcnnl S5 ib.l.(~ under 1(:"ho st;"} te electl on laws.

Our analysis of: administrative expenses yieldc:!d an estimlltc of

$13,071.75 as a reasoll.::lble amount th.::lt the Committee should have

reimiJut::5e.>d the state committee. 1/ Our estilU.::lte W.::lS dcrivc:!d by

clividin(J the pCl~eent':FJc of recl:ipts fOl~ Federal elections by the

tot.::ll of receipts for Fcch)ral, stlltc and local elections. Our

I~x.:l.mi.n.:lt.iun of c:,:pl~nditur(:s indLc"t.'(1 th.:l.t thc Committee reimbursed

the st.:ltc' cUIl\mi.t.:tcl.: $1,lS,loB.I for ;ldl!li:listrati\'c~ c:qx:nses, leavinSi

:111 unrL:im!JlIl:~'':cl I.).:! I ,1::CL' ()~- ~~(),().l().()·l, ,..-hieh n~pn:~~el1t:l~d .:1n in-kind.

contri.butlon. F;'ll·thc~;:10!·l~, thL' CuminiLtce did !lot report the rec(.'ipl

l)f tillsin-kind contl" i.l.m tl.on.

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Si.!:CL' the Cum::1it::.·.."..· :1::~; i.nclud(~d the J:ccluired infor;n.1tion

on I.: 11 c: i r amo..:!lc!c:dl~·.):.c:,·~_, t:" ..· :\udi t stu f:;~ recommc'nd,;; no far their

;,\ctiol1 .

D.i sc1osur'2 0:-' OCClltl,1 Lion Clnd Pri nc i I)Cl1

I>"fac'c-0(" 'B"U 5 i!1"C"s's" ~T-C'()j1'f.r1.b\:l£ol:S'·· ,--

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Our ''':-:·:;1I:1i:;.:i::'':.O!; of: re~)Ol·ts fi..lecl \.;ith the Commission

Clnd cunlri.bt.ltion n}(;()~~.:::s r(:·:~o.led tho.t the Commi ttce did not

il1l;.lude eith(~L" Lhl~ oC'c·.:pati.C!1 <l!1d:ol~ pri.ncip<ll j 1 lace of

hl\~":.i\ll~SS fCll~ .j.} il~d.:":1,:U<ILs, repl.·•.!scmting 70=;'. or .:.l11itt.:ll1tzed

l;l.ln LI: i bu LLoriG.

For the ?,~riocl cu'.'eeell by the aullit, Section 434 (b) (2)

of 'l'iL.1 e 2 of the L':1i tc~d St.:ltes Code required the disc1m~ure

of: the full n;:tIne o.:;d r:1aili!1c:i i1ciLll'css (occup.:ltion and :principul

pl,H:e of business, i: any) c';= each person who has made one or

1I\1l'~C:' contribution:;' to' il pol i tico.l ,committee wi.thin the co.lcndar

':"',1" in an C1lJqrl''1.:lt>.:~':::-:10unt: 01' vtl!UC in,excess of $LOO, to(:ether

with th(~ o.mou;lt .111-: d.:.:'.:c 0: such cuntributions. -

I3:-!~;0d un .1.~·:.ll;C' :':'o:n t1K~ uuditoc·:; durinq fieJd',·/ork,

the Cnmmi.ttcl~ aiHcn,::c.: .::hO.11' !·l'POI-t.S to include t.he missinr:;

contri.l.mtul." in;:l)1"m~1L.js:;. The: .,mended repC)l·t \\'a:·; rcceiv:uc!:'on

.Iuly 1.1,1978.

Upon further investigation of the matter, the Office

ot: (;. 'Iweul Counsel recommended that the Commission take no

fll/'I'II"'" i1cti0l1 uqainst. the Committee reg.:1rdi'ng the violation of

SC'I:1 illl1 4411J(.:1). The Offic:(~of Gc'ne'rillcounsel based its

n:coll\l1\t!nc.lil t ion upon e\·idencetha tthe Comrni ttce, absent any

COl\lll\ i:-;~ Lon CJuidunce i1t thc: ti rile', mude an effort to reimburse

ildrili'lIi~;tra'tive (~XpenS0s ba;·;'~d upon what thcCommi'ttcc be1ie\1ed

W<l~; u )~casollablc met-hcd, ,alld baRed 'on 'the 'Commi'ttee's attempts

to usc con"ective measurcs to aJlcvJatc the possibi 1 Lt:i of

....,cc(~ptinq ,Cl),·\,ol~ato :u:1ds. ()!1 a"nuary 8, ] 980, thl~ commissiqll

,.ipfn"oved thl~ n.~commc:1do.ti.O:l of the Of fice u[ G0.ner.:l!. 'Counsel. and

closed the fi Ie. . ..

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ADDITIONAL INroRMATION REGARDING nns ORGANIZATION

MAY BE LOCATED IN A <DMPlE1'ED CDMPLIANCE ACIION

FnE RELEASED BY mE CXM1ISSION AND MADE PUBLIC IN

'mE PUBLIC RECDRDS OFFICE. :FUR nus PARTICULAR

ORGANIZATION'S COMPLETED OOMPLIANCE ACITON FnE

SIMPLY ASK FUR mE PRESS SlH1ARY OF M1JR 41 9 51

'mE PRESS stH1ARY WILL PROVIDE A BRIEF HIS'IDRY OF

'mE CASE AND A sm+1ARY OF '!HE ACrIONS TAKEN, IF Pm.

FEDERAL ELECTION COMMISSION

II.!; jo,. ~IRlll '\\.

\V.\"III'-C 10'.1 ) C. .!Il.th \

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