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March 1, 2022 

MEMORANDUM 

To: The Commission 

Through: Alec Palmer 

Staff Director 

Dayna C. Brown 

Assistant Staff Di or 

Audit Division 

Rickida Morcomb 

Audit Manager 

From: Patricia C. Orrock 

Chief Compliance Off

Directo

Officer Off 

By: Christina Crussiah 

Lead Auditor 

Subject: Audit Division Recommendation Memorandum on the UtePAC (A19-07) 

Pursuant to Commission Directive No. 70 (FEC Directive on Processing Audit Reports), 

the Audit staff presented the Draft Final Audit Report (DFAR) to UtePAC (UTEP) on 

November 22, 2021 (see attachment). In response to the DFAR, UTEP requested an audit 

hearing on December 10, 2021, and the Commission granted the request on December 17, 

2021. The audit hearing was held on February 17, 2022. 

This memorandum provides the Audit staff’s recommendation for each finding outlined in 

the DFAR. 

In response to the DFAR, UTEP provided additional information and, in response to the 

audit hearing, UTEP provided more documentation, as noted below. 

UTEP continued to request that findings addressed or corrected be removed or reduced from 

the audit report. UTEP stated the “FEC provides no basis for maintaining corrected audit 
2 

findings in its DFAR. To encourage compliance with FEC audits, the FEC should remove 

and reduce findings that have been addressed.” 

During the audit hearing, UTEP gave a detailed description of the Ute Tribe (the Tribe) and 

its relation to UTEP, stating that it is similar to the Commission, as it is also a governmental 

entity. UTEP stated that it and the Tribe only discovered that UTEP was being audited by 

the Commission after firing its former treasurer. UTEP also discussed the problems it had 

with the former treasurer, stating that he created his own LLC in order to divert funds from 

UTEP to himself, and was reckless and inadequate in maintaining UTEP’s records. UTEP 

stated there are still records outstanding, and it is unlikely that UTEP will be able to obtain 

any more records as it has maximized its efforts to do so over the last year and a half. 

Additionally, UTEP stated during the audit hearing that it believes the DFAR did not reflect 

the “extensive efforts” it made to correct the public record. Further, UTEP stated it does 

not contest the audit findings in general, but it would like to see the corrected findings 

removed from the audit report. UTEP indicated it will comply and do what needs to be 

done “to get UtePAC moving forward in a good way.” In a written response subsequent to 

the audit hearing, UTEP indicated that the Tribe incurred costs of approximately $100,810 

in the course of its own audit and responding to the Commission’s audit. This cost was 

based on a review of the invoices from the accounting and auditing firm that performed the 

Tribe’s audit, as well as its General Counsel’s time spent responding to the Commission 

audit. 

Finding 1. Misstatement of Financial Activity 

The Audit staff notes, although UTEP filed Forms 99 (Miscellaneous Electronic 

Submission) to correct the public record, regarding its misstatements, this 

corrective action occurred in response to the audit. As such, the Audit staff 

recommends that the Commission find that UTEP understated receipts by 

$209,332 and disbursements by $198,202, overstated beginning cash on hand 

by $15,422, and understated ending cash on hand by $12,065 in calendar year 

2018. 

Finding 2. Increased Activity 

The Audit staff notes, although UTEP filed Forms 99 to correct the public 

record, regarding its increased activity, this corrective action occurred in 

response to the audit. As such, the Audit staff recommends that the 

Commission find that UTEP understated receipts by $248,162 and 

disbursements by $255,268 over the two-year reporting period ending 

December 31, 2018. 

Finding 3. Cash Disbursements 

UTEP stated that the letter from its financial institution explained that the cash 

transactions were actually transfers between accounts. Therefore, the amount in 

violation was not reduced from $131,300 to $13,640, but rather the violation amount 

has always been $13,640. 

The Audit staff notes that UTEP did not provide the letter from its financial 

institution until it received the Interim Audit Report (IAR). The Audit staff 

further notes there remains $13,640 in cash withdrawals (including ATM 
 

3 

withdrawals) from UTEP’s bank account, that were not resolved by the letter 

from its financial institution. As such, in the next phase of the audit process, 

the DFAR, the $131,300 amount in violation referenced in the IAR was reduced 

to $13,640. If UTEP had provided the letter from its financial institution during 

audit fieldwork or in response to the exit conference, the amount in violation 

referenced in the IAR would have been $13,640, with no reference to the 

$131,300. 

The Audit staff recommends that the Commission find that UTEP made cash 

disbursements totaling $13,640. 

Finding 4. Recordkeeping for Disbursements 

The Audit staff notes, in response to the IAR, UTEP provided documentation 

to support one transaction totaling $500. As such, the DFAR reduced the 

violation amount from $18,640 to $18,140. The Audit staff recommends that 

the Commission find that UTEP failed to maintain records to support 

disbursements totaling $18,140. 

Finding 5. Recordkeeping for Communications 

The Audit staff notes, in response to the IAR, UTEP provided documentation 

to support one transaction totaling $8,000. As such, the DFAR reduced the 

violation amount from $69,822 to $61,822. The Audit staff recommends that 

the Commission find that UTEP failed to maintain records to support 

disbursements for communications totaling $61,822. 

Finding 6. Disclosure of Disbursements 

The Audit staff notes, although UTEP filed Forms 99 to correct the public 

record for disbursements totaling $94,998, this corrective action occurred in 

response to the audit. As such, the Audit staff recommends that the 

Commission find that UTEP failed to correctly disclose disbursements totaling 

$94,998. 

The Office of General Counsel has reviewed this memorandum and concurs with the 

recommendations. 

If this memorandum is approved, the Proposed Final Audit Report will be prepared and 

circulated within 30 days of the Commission’s approval. 

If this Audit Division Recommendation Memorandum is not approved on a tally vote, 

Directive No. 70 states that the matter will be placed on the next regularly scheduled 

open session agenda. 

Documents related to this audit report can be viewed in the Voting Ballot Matters folder. 

Should you have any questions, please contact Christina Crussiah or Rickida Morcomb at 

694-1200. 

Attachment: 

- Draft Final Audit Report of the Audit Division on the UtePAC 

cc: Office of General Counsel 
Draft Final Audit Report of the 

Audit Division on the UtePAC 

(January 1, 2017 - December 31, 2018) 

Why the Audit 

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Financial Activity S

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Findings and Recommendations S

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Draft Final Audit Report of the 

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Table of Contents 

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Part I. Background 

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Part I 

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Authority for Audit 

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Overview of Committee 

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Overview of Financial Activity

(Audited Amounts) 

Cash on hand @ January 1, 2017 $ 298 

Receipts 

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Total Receipts $ 325,911 

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Total Disbursements $ 310,628 

Cash on hand @ December 31, 2018 $ 15,581 


Part III 

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

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Finding 2. Increased Activity 

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Finding 3. Cash Disbursements 

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Finding 4. Recordkeeping for Disbursements

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UHSRUWLQJDQGGHWHUPLQDWLRQRIKRZWRUHSRUWFRPPXQLFDWLRQGLVEXUVHPHQWVWRWDOLQJ

)RUPRUHGHWDLOVHHS

Finding 6. Disclosure of Disbursements 

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HLWKHUODFNHGRUKDGLQDFFXUDWHGLVFORVXUHLQIRUPDWLRQ,QUHVSRQVHWRWKHH[LW


FRQIHUHQFH87(3ILOHGWKH)RUP0LVFHOODQHRXV(OHFWURQLF6XEPLVVLRQWRLQFOXGH

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UHTXHVWHGWKDWWKHILQGLQJEHUHPRYHGIURPWKHDXGLWUHSRUWEDVHGRQLWVFRUUHFWLYH

DFWLRQV7KH$XGLWVWDIIDFNQRZOHGJHVWKHILOLQJRIWKH)RUPFRUUHFWHGWKHSXEOLF

UHFRUG+RZHYHUVLQFH87(3¶VFRUUHFWLYHDFWLRQRFFXUUHGLQUHVSRQVHWRWKHDXGLWWKH

ILQGLQJUHPDLQVLQWKHDXGLWUHSRUW)RUPRUHGHWDLOVHHS




Part IV 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

Summary 

'XULQJDXGLWILHOGZRUNDFRPSDULVRQRI87(3¶VUHSRUWHGILQDQFLDODFWLYLW\ZLWKLWVEDQN

UHFRUGVUHYHDOHGDPLVVWDWHPHQWRIUHFHLSWVDQGGLVEXUVHPHQWVDVZHOODVEHJLQQLQJDQG

HQGLQJFDVKIRUFDOHQGDU\HDU6SHFLILFDOO\87(3XQGHUVWDWHGUHFHLSWVDQG

GLVEXUVHPHQWVE\DQGUHVSHFWLYHO\87(3RYHUVWDWHGLWVEHJLQQLQJ

FDVKRQKDQGE\DQGXQGHUVWDWHGLWVHQGLQJFDVKRQKDQGE\,Q

UHVSRQVHWRWKHH[LWFRQIHUHQFH87(3FRUUHFWHG WKHPLVVWDWHGUHFHLSWVGLVEXUVHPHQWV

EHJLQQLQJFDVKRQKDQGDQGHQGLQJFDVKRQKDQGIRUE\ILOLQJ)RUPV

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ZRUNWRUHVSRQGWRDQGFRUUHFWWKHIRUPHUWUHDVXUHU¶VILQDQFLDOPDQDJHPHQWDQG

UHSRUWLQJWKLVILQGLQJKDVEHHQDGGUHVVHGDQGVKRXOGEHUHPRYHGIURPWKHDXGLWUHSRUW

7KH$XGLWVWDIIDFNQRZOHGJHVWKDW87(3 FRUUHFWHGWKHSXEOLFUHFRUGZLWKUHJDUGWRWKH

PLVVWDWHGILQDQFLDODFWLYLW\IRUWKHDXGLWSHULRG+RZHYHUVLQFH87(3¶VFRUUHFWLYH

DFWLRQRFFXUUHGLQUHVSRQVHWRWKHDXGLWWKHILQGLQJUHPDLQVLQWKHDXGLWUHSRUW

Legal Standard 

Contents of Reports. (DFKUHSRUWPXVWGLVFORVH

• 7KHDPRXQWRIFDVKRQKDQGDWWKHEHJLQQLQJDQGHQGRIWKHUHSRUWLQJSHULRG

• 7KHWRWDODPRXQWRIUHFHLSWVIRUWKHUHSRUWLQJSHULRGDQGIRUWKHFDOHQGDU\HDU

• 7KHWRWDODPRXQWRIGLVEXUVHPHQWVIRUWKHUHSRUWLQJSHULRGDQGIRUWKHFDOHQGDU

\HDUDQG

• &HUWDLQWUDQVDFWLRQVWKDWUHTXLUHLWHPL]DWLRQRQ6FKHGXOH$,WHPL]HG5HFHLSWVRU

6FKHGXOH%,WHPL]HG'LVEXUVHPHQWV86&EDQG

Facts and Analysis 

A. Facts 

'XULQJDXGLWILHOGZRUNWKH$XGLWVWDIIUHFRQFLOHG87(3¶VUHSRUWHGILQDQFLDODFWLYLW\ZLWK

LWVEDQNUHFRUGVIRUFDOHQGDU\HDUVDQG7KHUHFRQFLOLDWLRQGHWHUPLQHGWKDW

87(3PLVVWDWHGUHFHLSWVDQGGLVEXUVHPHQWVIRUDVZHOODVEHJLQQLQJFDVKRQKDQG

DQGHQGLQJFDVKRQKDQGIRU7KHIROORZLQJFKDUWGHWDLOVWKHGLVFUHSDQFLHVEHWZHHQ

87(3¶VGLVFORVXUHUHSRUWVDQGEDQNDFWLYLW\7KHVXFFHHGLQJSDUDJUDSKVH[SODLQZK\WKH

GLVFUHSDQFLHVRFFXUUHG


2018 Committee Activity 

Reported Bank Records Discrepancy 

%HJLQQLQJ&DVK RQ KDQG#

-DQXDU\

   

2YHUVWDWHG

5HFHLSWV   

8QGHUVWDWHG

'LVEXUVHPHQWV   

8QGHUVWDWHG

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'HFHPEHU

  

8QGHUVWDWHG

7KHEHJLQQLQJFDVKRQKDQGZDVRYHUVWDWHGE\DQGWKHGLVFUHSDQF\UHVXOWHGIURP

SULRUSHULRGGLVFUHSDQFLHV

7KHPLVVWDWHPHQWRIUHFHLSWVUHVXOWHGIURPWKHIROORZLQJGLIIHUHQFHV

• &RQWULEXWLRQVIURPLQGLYLGXDOVQRWUHSRUWHG 

• 2WKHUIHGHUDOUHFHLSWVQRWUHSRUWHG 

• 5HFHLSWVQRWVXSSRUWHGE\EDQNGHSRVLWV 

• 8QH[SODLQHGGLIIHUHQFH 

Net Understatement of Receipts $ 209,332 

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GHSRVLWHGLQWRWKHQRQFRQWULEXWLRQDFFRXQWIURP7KH8WH,QGLDQ7ULEHWKH7ULEH

WRWDOLQJ

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• )HGHUDORSHUDWLQJH[SHQGLWXUHVQRWUHSRUWHG 

• 2WKHUGLVEXUVHPHQWVQRWUHSRUWHG 

Understatement of Disbursements $198,202 

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GLVEXUVHPHQWVPHDOVWUDYHOH[SHQVHVYHKLFOHH[SHQVHVHTXLSPHQWSXUFKDVHVSXUFKDVH

RILWHPVIRUUHVHDUFKSULQWLQJPHGLDDGYHUWLVLQJFRVWVDFFRXQWLQJVHUYLFHV

VWDIILQJSD\UROOPHGLDFRQVXOWLQJVHUYLFHVLQWHUQHWVHUYLFHVWHOHSKRQHELOOVRIILFH

XWLOLWLHVUHQWVKLSSLQJFRVWVEDQNDQGUG SDUW\VHUYLFHIHHVRIILFHVXSSOLHVDQG

UHJLVWUDWLRQIHHVIRUHYHQWV

7KHXQGHUVWDWHPHQWRIWKHHQGLQJFDVKRQKDQGZDVDUHVXOWRIWKHUHSRUWLQJ

GLVFUHSDQFLHVGHVFULEHGDERYH



7KHUHSRUWHGHQGLQJFDVKRQKDQGGRHVQRWHTXDOUHSRUWHGEHJLQQLQJFDVKRQKDQGSOXVUHSRUWHGUHFHLSWV

PLQXVUHSRUWHGGLVEXUVHPHQWV7KLVZDVGXHWRDPDWKHPDWLFDOGLVFUHSDQF\LQZKLFKWKHUHSRUWHG

EHJLQQLQJFDVKRQKDQGIRUGLGQRWHTXDOWKHHQGLQJFDVKRQKDQGUHSRUWHGIRU


B. Interim Audit Report & Audit Division Recommendation

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C. Committee Response to Interim Audit Report

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• 87(3VWDWHGWKHIRUPHUWUHDVXUHU¶VFODLPWKDWKH3DVVXPHG>WKHUHZHUH@IHZHU

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• 87(3GLVDJUHHGZLWKWKHIRUPHUWUHDVXUHU¶VVWDWHPHQWWKDW37ULEDOPHPEHUVZHUH

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IROORZLQJWKHIRUPHUWUHDVXUHU¶VWHUPLQDWLRQ87(3IXUWKHUVWDWHGWKDWLWVLQGHSHQGHQWDXGLWUHVXOWHGLQ

ILQGLQJVVLPLODUWRWKRVHXQFRYHUHGGXULQJWKH&RPPLVVLRQ¶VDXGLW


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)(&UHTXLUHGKLPWRNHHSRUWKDWKHZDVKDYLQJGLIILFXOW\XVLQJWKH)(&

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DXGLWWKHILQGLQJUHPDLQVLQWKHDXGLWUHSRUW

Finding 2. Increased Activity 

Summary 

'XULQJDXGLWILHOGZRUNDFRPSDULVRQRI87(3¶VEDQNDFWLYLW\ZLWKLWVRULJLQDOUHSRUWV

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Legal Standard 

A. Reporting Requirements. $OOSROLWLFDOFRPPLWWHHVRWKHUWKDQDXWKRUL]HG

FRPPLWWHHVRIDFDQGLGDWHVKDOOILOHHLWKHU

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B. Contents of Reports. (DFKUHSRUWPXVWGLVFORVH

• 7KHDPRXQWRIFDVKRQKDQGDWWKHEHJLQQLQJDQGHQGRIWKHUHSRUWLQJSHULRG

• 7KHWRWDODPRXQWRIUHFHLSWVIRUWKHUHSRUWLQJSHULRGDQGIRUWKHFDOHQGDU\HDU

• 7KHWRWDODPRXQWRIGLVEXUVHPHQWVIRUWKHUHSRUWLQJSHULRGDQGIRUWKHFDOHQGDU

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• &HUWDLQWUDQVDFWLRQVWKDWUHTXLUHLWHPL]DWLRQRQ6FKHGXOH$,WHPL]HG5HFHLSWVRU

6FKHGXOH%,WHPL]HG'LVEXUVHPHQWV86&E DQG





Facts and Analysis 

A. Facts

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RQ'HFHPEHU7KHVHILJXUHVLQFOXGHGWKHXQGHUVWDWHPHQWRIUHFHLSWV

DQGWKHXQGHUVWDWHPHQWRIGLVEXUVHPHQWVIURPGLVFXVVHGLQ)LQGLQJ

0LVVWDWHPHQWRI)LQDQFLDO$FWLYLW\

B. Interim Audit Report & Audit Division Recommendation

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C. Committee Response to Interim Audit Report

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WRWKHDXGLWWKHILQGLQJUHPDLQVLQWKHDXGLWUHSRUW

Finding 3. Cash Disbursements 

Summary 

'XULQJDXGLWILHOGZRUNWKH$XGLWVWDIIGHWHUPLQHGWKDW87(3PDGHFDVK

GLVEXUVHPHQWVDQGLVVXHGRQHFKHFNSD\DEOHWRFDVKWRWDOLQJ7KH$FWUHTXLUHV

SROLWLFDOFRPPLWWHHVWRPDNHDOOGLVEXUVHPHQWVH[FHSWWKRVHIURPDSHWW\FDVKIXQGE\

FKHFNRUVLPLODUGUDIWGUDZQRQDFRPPLWWHHDFFRXQW,QUHVSRQVHWRWKH,QWHULP$XGLW

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3IDLOXUHWRFRPSO\ZLWKWKH)(&¶VEDVLFUHTXLUHPHQWVIRUFDVKWUDQVDFWLRQV ́DQG

UHTXHVWHGWKDWWKHILQGLQJHLWKHUEHUHPRYHGIURPWKHDXGLWUHSRUWRUWKHDPRXQWUHGXFHG

EDVHGRQLWVFRUUHFWLYHDFWLRQV87(3IXUWKHUVWDWHG LWSODQVWRLPSOHPHQWSURFHGXUHVIRU

PDLQWDLQLQJDSHWW\FDVKIXQGDQGGRFXPHQWLQJWKHXVHRIDSHWW\FDVKIXQGDVZHOODV

GRFXPHQWLQJUHSRUWLQJDQGSUHVHUYLQJUHFRUGVIRUGLVEXUVHPHQWV$GGLWLRQDOO\87(3

SURYLGHGDOHWWHUIURPLWV ILQDQFLDOLQVWLWXWLRQDWWHVWLQJWRWKHIDFWWKDWPDQ\RIWKH

WUDQVDFWLRQVZKLFKDSSHDUHGWREHFDVKGLVEXUVHPHQWVZHUHDFWXDOO\WUDQVIHUVRIIXQGV

EHWZHHQDFFRXQWVUHGXFLQJWKHDPRXQWRIYLRODWLRQIURPWR$EVHQW

DGGLWLRQDOGRFXPHQWDWLRQWKH$XGLWVWDIIFRQFOXGHVWKDW87(3PDGHLQFDVK

GLVEXUVHPHQWV 


Legal Standard 

A. Disbursement by Check. $SROLWLFDOFRPPLWWHHPD\RQO\PDNHH[SHQGLWXUHVLQ

FDVKQRWWRH[FHHGIURPDSHWW\FDVKIXQG$ZULWWHQMRXUQDOIRUVXFKFDVK

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PDGHE\FKHFNRUVLPLODUGUDIWGUDZQRQDFFRXQWV HVWDEOLVKHGDWWKHFDPSDLJQ¶V

GHSRVLWRU\LHV86&K

B. Petty Cash Fund. $SROLWLFDOFRPPLWWHHPD\PDLQWDLQDSHWW\FDVKIXQGRXWRI

ZKLFKLWPD\PDNHH[SHQGLWXUHVQRWLQH[FHVVRIWRDQ\SHUVRQSHUSXUFKDVHSHU

WUDQVDFWLRQV

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GLVEXUVHPHQWV7KHZULWWHQMRXUQDOVKDOOLQFOXGH

• 1DPHDQGDGGUHVVRIHYHU\SHUVRQWRZKRPDQ\GLVEXUVHPHQWLVPDGH

• 'DWH

• $PRXQW

• 3XUSRVHDQG

• ,IGLVEXUVHPHQWLVPDGHIRUDFDQGLGDWHWKHMRXUQDOVKDOOLQFOXGHWKHQDPH

RIWKDWFDQGLGDWHDQGWKHRIILFH LQFOXGLQJ6WDWHDQG&RQJUHVVLRQDOGLVWULFW

VRXJKWE\VXFKFDQGLGDWH&)5

C. Required Records for Disbursements. )RUHDFKGLVEXUVHPHQWWKHWUHDVXUHURID

SROLWLFDOFRPPLWWHHPXVWNHHSUHFRUGVRQWKH

• $PRXQW

• 'DWH

• 1DPHDQGDGGUHVVRIWKHSD\HH

• 3XUSRVHDEULHIGHVFULSWLRQRIZK\WKHGLVEXUVHPHQWZDVPDGH

• ,IWKHGLVEXUVHPHQWZDVPDGHRQEHKDOIRIDFDQGLGDWHWKHFDQGLGDWH¶VQDPH

DQGRIILFHVRXJKWE\WKHFDQGLGDWHDQG

• ,IWKHGLVEXUVHPHQWZDVLQH[FHVVRIWKHUHFRUGVPXVWLQFOXGHDUHFHLSW

RUDQLQYRLFHIURPSD\HHRUDFDQFHOOHGFKHFNRUVKDUHGUDIWWRWKHSD\HH,I

WKHGLVEXUVHPHQWZDVPDGHE\FUHGLWFDUGWKHUHFRUGPXVWLQFOXGHWKH

PRQWKO\VWDWHPHQWRUFXVWRPHUUHFHLSWDQGWKHFDQFHOOHGFKHFNXVHGWRSD\

WKHFUHGLWFDUGELOO86&FDQG&)5E

D. Preserving Records and Copies of Records.7KHWUHDVXUHURIDSROLWLFDOFRPPLWWHH

PXVWSUHVHUYHDOOUHFRUGVDQGFRSLHVRIUHSRUWVIRU\HDUVDIWHUWKHUHSRUWLVILOHG

86&G

Facts and Analysis 

A. Facts 

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DGYDQFHVKRZHYHUWKHSD\HHLVWKHSHUVRQUHFHLYLQJWKHDGYDQFH&)5E 
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GDWDEDVHSURYLGHGE\87(3DQGLGHQWLILHGWUDQVDFWLRQVWRWDOLQJLQYROYLQJ

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$FFRUGLQJWR87(3¶VIRUPHUWUHDVXUHUWKHFDVKGLVEXUVHPHQWVZHUHXVHGWRSD\YDULRXV

LQGLYLGXDOVDQGYHQGRUVIRUVDODULHVWHOHSKRQHELOOVRIILFHVXSSOLHVUHLPEXUVHPHQWRI

WUDYHOH[SHQVHVSD\UROODQGSULQWLQJRURWKHUDGYHUWLVLQJFRVWV7KHIRUPHUWUHDVXUHU

VWDWHGWKDWWKHVH H[SHQVHVZHUHFDPSDLJQUHODWHG

7KH$XGLWVWDIIUHYLHZHG87(3¶VGLVEXUVHPHQW GDWDEDVHWRDVVHVVWKHQDWXUHRIWKH FDVK

GLVEXUVHPHQWVDQGQRWHGWKHIROORZLQJ

• 2WKHUWKDQEDQNVWDWHPHQWV DQG ZLWKGUDZDOVOLSVGLVFORVLQJWKHFDVKWUDQVDFWLRQV

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FDPSDLJQH[SHQVHV

• RIWKHFDVKGLVEXUVHPHQWVWRWDOLQJZHUHQRWUHSRUWHG87(3ILOHG

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FDVKIXQG87(3FRQILUPHGWKDWWKHUHZDVQRXVHRIDSHWW\FDVKIXQGDQGDUHYLHZRI

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SXUFKDVHVIRU87(37KH$XGLWVWDIIFRQFOXGHGWKHFDVKGLVEXUVHPHQWVLQH[FHVVRI

WRWDOLQJZHUH H[FHVVLYHFDVKGLVEXUVHPHQWV

B. Interim Audit Report & Audit Division Recommendation 

7KH$XGLWVWDIIGLVFXVVHGWKLVPDWWHUZLWKWKH87(3UHSUHVHQWDWLYHGXULQJWKHH[LW

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87(3VWDWHGWKHRYHUZKHOPLQJSUREOHPZDV WKHIRUPHUWUHDVXUHU¶VXVHDQGPDQDJHPHQW

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C. Committee Response to Interim Audit Report 

,QUHVSRQVHWRWKH,QWHULP$XGLW5HSRUWUHFRPPHQGDWLRQ87(3UHTXHVWHGWKHILQGLQJEH

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Finding 4. Recordkeeping for Disbursements 

Summary 

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Legal Standard 

A. Required Records for Disbursements)RUHDFKGLVEXUVHPHQWWKHWUHDVXUHURID

SROLWLFDOFRPPLWWHHPXVWNHHSUHFRUGVRQWKH

• $PRXQW

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B. Preserving Records and Copies of Reports7KHWUHDVXUHURIDSROLWLFDOFRPPLWWHH

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Facts and Analysis 

A. Facts 

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B. Interim Audit Report & Audit Division Recommendation 

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C. Committee Response to Interim Audit Report 

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Finding 5. Recordkeeping for Communications 

Summary 

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Legal Standard 

A. Formal Requirements Regarding Reports and Statements.(DFKSROLWLFDO

FRPPLWWHHVKDOOPDLQWDLQUHFRUGVZLWKUHVSHFWWRWKHPDWWHUVUHTXLUHGWREHUHSRUWHG

ZKLFKVKDOOSURYLGHLQVXIILFLHQWGHWDLOWKHQHFHVVDU\LQIRUPDWLRQDQGGDWDIURPZKLFK

WKHILOHGUHSRUWVPD\EHYHULILHGH[SODLQHGFODULILHGDQGFKHFNHGIRUDFFXUDF\DQG

FRPSOHWHQHVV&)5E

B. Preserving Records and Copies of Reports.7KHWUHDVXUHURIDSROLWLFDOFRPPLWWHH

PXVWSUHVHUYHDOOUHFRUGVDQGFRSLHVRIUHSRUWVIRU\HDUVDIWHUWKHUHSRUWLVILOHG

86&G

Facts and Analysis 

A. Facts 

'XULQJDXGLWILHOGZRUNWKH$XGLWVWDIIUHYLHZHGGLVEXUVHPHQWVIRUFRPPXQLFDWLRQVWR

YHULI\WKHDFFXUDF\RIWKHLQIRUPDWLRQDQGSURSHUFODVVLILFDWLRQRIWUDQVDFWLRQVGLVFORVHG

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87(3ILOHG)RUPVLQUHVSRQVHWRWKHDXGLWWRDGGUHVVWKHXQUHSRUWHGGLVEXUVHPHQWV

6HH)LQGLQJ±0LVVWDWHPHQWRI)LQDQFLDO$FWLYLW\

7KH$XGLWVWDII¶VDQDO\VLVUHVXOWHGLQWKHIROORZLQJ

i. Disbursements – No Invoices or Copies of Communications Provided 

($66,577) 

7ZHQW\ILYHGLVEXUVHPHQWVWRWDOLQJZHUHSDLGWRQLQHYHQGRUV7ZHOYH

RIWKHVHGLVEXUVHPHQWVWRWDOLQJZHUHGLVFORVHGRQ6FKHGXOH%/LQH

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ii. Disbursements – Invoices Provided – No Copies of Communications 

Provided ($1,795) 


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iii. Disbursements – No Invoices – Copies of Communications Provided ($1,450) 

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ZHUHUHSRUWHGRQ6FKHGXOHV%/LQHEDQG/LQHZLWKSXUSRVHVRI

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XQDEOHWRYHULI\WKHUHSRUWLQJRIWKHVHDPRXQWVRUGHWHUPLQHKRZWKHDPRXQWV

VKRXOGEHUHSRUWHG7KH$XGLWVWDIIUHTXHVWHGFRSLHVRIWKHLQYRLFHV7RGDWH

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B. Interim Audit Report & Audit Division Recommendation 

7KH$XGLWVWDIIGLVFXVVHGWKLVPDWWHUZLWKWKH87(3UHSUHVHQWDWLYHGXULQJWKHH[LW

FRQIHUHQFHDQGSURYLGHGDVFKHGXOHRIWKHGLVEXUVHPHQWVIRUZKLFKIXUWKHUUHFRUGVZHUH

QHFHVVDU\WRYHULI\WKHDFFXUDF\RI87(3¶VUHSRUWLQJ,QUHVSRQVHWRWKHH[LWFRQIHUHQFH

87(3SURYLGHGVRPHLQYRLFHVDQGSD\PHQWUHFHLSWVZLWKFRUUHVSRQGLQJPHGLDUHFRUGV

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C. Committee Response to Interim Audit Report 

,QUHVSRQVHWRWKH,QWHULP$XGLW5HSRUWUHFRPPHQGDWLRQ87(3VWDWHGLW3ZRUNHG

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Finding 6. Disclosure of Disbursements 

Summary 

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HLWKHUODFNHGRUKDGLQDFFXUDWHGLVFORVXUHLQIRUPDWLRQ,QUHVSRQVHWRWKHH[LW

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UHPDLQVLQWKHDXGLWUHSRUW

Legal Standard 

A. Reporting Other Disbursements:KHQRWKHUH[SHQGLWXUHVWRWKHVDPHSHUVRQ

H[FHHGLQDFDOHQGDU\HDUWKHFRPPLWWHHPXVWUHSRUWWKH

• 7KHDPRXQWRIWKHH[SHQGLWXUHV

• 7KHGDWHZKHQWKHH[SHQGLWXUHVZHUHPDGH

• 7KHQDPHDQGDGGUHVVRIWKHSD\HH DQG

• 7KHSXUSRVHRIWKHH[SHQGLWXUHV86&E$DQG&)5

EL

B. Examples of Purpose

• $GHTXDWH'HVFULSWLRQV([DPSOHVRIDGHTXDWHGHVFULSWLRQVRI3SXUSRVH ́LQFOXGH

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• ,QDGHTXDWH'HVFULSWLRQV7KHIROORZLQJGHVFULSWLRQVGRQRWPHHWWKHUHTXLUHPHQW

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Facts and Analysis 

A. Facts

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RIWKHIROORZLQJ

• 7HQGLVEXUVHPHQWVWRWDOLQJZHUHPLVVLQJDPHPRWH[W VWDWLQJWKH\ZHUH

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• 7ZRGLVEXUVHPHQWVWRWDOLQJZHUHPLVVLQJDPHPRWH[WVWDWLQJWKH\ZHUH

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• 1LQHGLVEXUVHPHQWVWRWDOLQJZHUHUHSRUWHGZLWKWKHLQFRUUHFWSD\HHVDQG

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B. Interim Audit Report & Audit Division Recommendation

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