Relased 6/25/85

FEDERAL ELECTION COMMISSION

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REPORT OF THE AUDIT DIVISION

ON THE

SONIA JOHNSON-CITIZEN FOR PRESIDENT COMMITTEE

I. Background

A. Overview

This report is based on an audit of the Sonia JohnsonCitizen for President Committee ("the Committee"), to determine

whether there has been compliance with the provisions of the

Federal Election Campaign Act of 1971, as amended ("the Act") and

the Presidential Matching Payment Account Act. The audit was

conducted pursuant to 26 U.S.C. S 9038(a) which states that

"after each matching payment period, the Commission shall conduct

a thorough examination and audit of the qualified campaign

expenses of every candidate and the committees authorized by the

candidate who received payments under Section 9037."

In addition, 26 U.S.C. S 9039(b) and 11 C.F.R. §

9038.1(a) (2) state that the Commission may conduct other

examinations and audits from time to time as it deems necessary

to carry out the provisions of this subchapter.

The Committee registered with the Federal Election

Commission as the principal campaign committee for Sonia Johnson

on October 28, 1983. The Committee maintains its headquarters in

Arlington, Virginia.

The audit covered the period from October 3, 1983,

through November 6, 1984, the final coverage date of the last

report filed at the time of the audit. In addition, certain

financial activity was reviewed through February 1, 1985. The

Committee reported an opening cash balance of $-0-, total

receipts for the period of $411,989.88, total disbursements for

the period of $407,749177, and a closing cash balance on November

6, 1984, of $4,238.70._1

• 1/ The totals do not foot due to a mathematical error on the

summary pages on the disclosure reports
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This report is based upon documents and workpapers which support each of the factual statements. They form part of

the record upon which the Commission based its decisions on the

matters in the report and were available to Commissioners and

appropriate staff for review.

B. Key Personnel

The principal officers of the Committee during the

audit period were: Mary R. Boone, Treasurer from October 3, 1983,

to January 25, 19841 Mark A. Dunlea, Treasurer from January 25,

1984, to June 25, 19841 Lynn E. Fontana, Treasurer from June 25,

1984, to August 15, 19841 and Julie J. Ainslee, Treasurer from

August 15, 1984, to present.

c. Scope

The audit included such tests as verification of total

reported receipts, disbursements, and individual transactions~

review of required supporting documentation; analysis of

Committee debts and obligations; review of contribution and

expenditure limitationsl and such other audit procedures as

deemed necessary under the circumstances.

II. Finding and Recommendation Related to

Title 2 of the United States Code

A. Matter Referred to Office of General Counsel

A.

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A matter noted during the audit has been referred to

the Commission's Office of General Counsel.

III. Finding Related to Title 26 of the United States Code

Determination of Net Outstanding Campaign Obligations

Section 9034.5(a) of Title 11 of the Code of Federal

Regulations requires that the candidate submit a Statement of Net

Outstanding Campaign Obligations (NOCO) which contains, among

other items, the total of all outstanding obligations for

qualified campaign expenses and an estimate of necessary winding down costs within 15 days of the candidate's date of

ineligibility•
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In addition, 11 C.F.R. 5 9034.1(b) states, in part, that if on the date of ineligibility a candidate has net

outstanding campaign obligations as defined under 11 C.F.R. S

9034.5, that candidate may continue to receive matching payments provided that on the date of payment there are remaining net

outstanding campaign obligations.

The Committee filed a NaCO statement on September 7,

1984 showing the Committee's financial position at the date of

ineligibility August 23, 1984. The Committee filed an amended

NOCO statement on January 7, 1985, updating the estimate of its

financial position to January 4, 1985. The Audit staff reviewed

the amended NaCO statement and has prepared an audited NOCO

statement which appears below.

Sonia Johnson-Citizen for President

Audit Analysis of Committee's NOCO Statement

-as of January 4, 1985~/

Assets - Cash in Bank ~., Accounts Receivable

Capital Assets

'"'" Total Assets

• Obligations Accounts Payable

0

Estimated Winding Down Costs

Salaries $7,870.00

C Rent & Utilities 400.00

Supplies 100.00

..r Telephone 400.00

fT Accounting fee 3,000.00

Miscellaneous

Office Expenses 300.00

Total Obligations

NOCO (Deficit as of

January 4, 1985) B/

$11,862.38

415.00

3,800.00

$16,077.38

$21,608.93

12,070.00

33,678.93

(17,601.55)

•

~/ The date of the NaCO statement accompanying the Committee's

fourth matching fund request.

Since certain estimates were used in computing the amount,

the Audit staff will review the Committee's reports and

records to compare the actual figures with the estimates and

prepare adjustments, as necessary.

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The Committee Treasurer has agreed with all the

components of the audited NOCO statement. In addition, a review

of the Committee's bank statement activity for the period January 5, 1985 to February 7, 1985 indicated that the Committee received

$7,433.96 in matching funds and other receipts.

Conclusion

The Committee's remaining entitlement at February 7, 1985 is

$10,167.59.