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FED[RAI. IJ [eTION COtv'f\USSI()N

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REPORT OF TUE AU 0'1 t 0 I VI SION

ON TUE

ADAMS FOR CONGRESS COMMITTEE ..

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A. Overvj ew

Thi s report is based on an 'audi t of the Adams for

COlt ~J res s Co mm ittc c ( .. the Comm ittc e .. ), un der t aken by the Au di t

Division of the Federal Election Commission in accordance with

the Commission's audit policy to determine whether there has

been compliance with the provisions of the Federal Election

Campaigll Act of 1971, as amended ("the Act n ). The audit was

conducted pursuant to Section 438(a)(8) of Title 2 of the

United States Code which directs the Commission to make from

time to time audits and field investigations \'lith respect to

reports and statements filed under the provisions of the Act.

The Committee registered with the Federal Election

Commission on April 12, 1976 as the principal campaign committee

designated by J. W. Adams, III, candidate for the office of

United States Representative from the 8th Congressional District

of Georgia. The Committee maintains its headquarters in Macon, Gcor·gia.

The audit covered the period from March 19, 1976

through September 30,1977.1/ The Committee ,"epo,"tcd a beginllin~J

cash balance on f.1~rch 19, 19/G of $-0-, total receipts for the

per i 0 d 0 f $20 3 , 3eG• 29, toti.l 1 c x p(l nd i t u'"es for the pe '" i 0 d 0 f

$20 2 , 529 • 71 and a c losi n9 cas h hal (\ nee 0 n f4 i\ r ch 31, 1977 0 f

$486.57. ,£1

11 The C0 IIIIII itt c P \oJ itsexem p t from f i 1i n9 dis c los ur c '"epo,"t s

for' the qUi! ,·te,'s end i nu June 30, 1977 and September 30,

1977• A r[c r 0 r I~l 3a \'1 as f i 1ed f 0 ,.. cae h qua l't cr.

The l.> a nk I" e c() nc i 1i i\ t ion $ d; s c los ed r c ce i pt s \oJ ere un de r stat ed

$150 • 38, expen d -i t II r c u1\ de" s tat cdS 5G~) •01, and end i ng cas h

ovc '" s t ,1 ted $4'1 • 62, ,. C 5 U 1 t ; I'gin a net d; f fe'" e nee 0 f $370 •0 1 •

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This audit report is based on documents and working papers·which support each of the factual statrments. They form part of the record upon which the Commi~sion based its

decisions on the matters in the report and were available to

·Commissioners and appropriate ~taff for review.

B. !£L Personnel

The principal officers of the Committee at the time

of the audit were G. Paul Jones, Jr., Chairman, and Timothy K.

Adams, Treasurer.

c. SC0 I!.().

The iludit included such tests as verification of

total reported receipts and expenditures and individual

t ran sac t ion S; t' e vie'II 0 f r cqui red sup po r tin 9 doc umen tat ion and

analysis of Committee debts and obligations; and such other

audit procedures as deemed necessary under the circumstances.

II. Aud;tor'~__~ta~ement a~d DescriP_~!on of Find~

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

of the ,"eports ilnd statCtnpnts fi led ilnd the records p,ooesented,

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

s tat em e 11 t S 0 f the Ad aIII S for Con 9 I" C sse 0 mmit tee f a i ,.. 1y pre sen t

the fillancial activities of the Committee fo}' the pe,ooiod covered

by the ,1 udit. r ur' the r, ex c 0 ptas not cd bel 0 \'1, no IIIate ria 1

problems in complyin~J \'lith the Fcde."al Election Campaign Act

wC"'C di scover'cd duri ng the course of the audi t.

A. fo rJ~olOO ute Con t_l~t 1J_~_liQn s

Section 441b(il) of Title 2 of the United States

Cod cstate s, i n pal"'t, t hat. i tis un1it \~ f u1 for an.Y Cat" POl"it t ion

tomake a con l r i hut ion 0 l' C X pen di t urei nconne ct ion \'/ i t hany

fed e r'ale 1cc t ion top0 1i tic a1 0 f fie e and un1(l \., f u1 for any

cand'dute, political COl:ll:JittCC, or other person to kno\'Iingly

accept or receive any such contributions from a corpol"ation.

A ... c vic\oJ 0 f the ComIII ittc e 's con t '" i but 0 r' r ceo,"'d s rev e a 1(l d

35 C 0 tl t '" i but ion S \'1 e '"erec e i v c d froIII :ll bus inc sse n titi e s • Rceo," d s

Illaintained by lfH~ Secretul"y of Statp in the states involved

i n die a t (? d t hit t s eve n (7) () f the en liti c S, ace 0 U 11 t. i n9 for s eve n

( 1) 0 f the con t r i hut i OilS, tot c1 1i n9 ~I () I 5 . 00, \./ e r' e inc 0 r' p0 rat e d

at the time cOIlLriuution~1 \:el'C made. The Committee \'lllS info'''I;1t~d

on Jan u a... y 3, 1 978 by the ,,\ ud itstit frof the \\ pP,u" en teo." POl" a t p

status of the l~ntitics. The m(lltt~'" \~ilS '''CfCl''l''cd to the COl1lmi~~,i()!l's

Office of G(~IH~)'tll Coun~(~l on J\IIlUlll'Y 9, 197B, \-,here r·1attcr Undl~t"

Rev i e\'1 11 95( 1B) \Iasilli t i ated • .... ....

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Subsequent to the referral, the Committee Treasurer

submitted materials which the Offi~c of General Counsel considered

to adequalely document the sources of four (4) of the contributions

as non-corporate funds. . , •

On February 22, 1978, thd Commission, based upon the

recommendation of the Office of General Counsel, found reason to

believe that three (3) remaining business entities violated

Section 441b(a) of Title 2 of the United States Code by making

corporate contributions to the Committee. It was determined that

the t hr ee (3) t" eIII a i ni n9 con t rib uti 0 ns \'/ ere ref unded by the

Committee to th(' contributors suh~equcnt to the initiation of

the HUR. The G(!lIcral Counsel, therefore, recommended that the

Commission take no further action on the matter.

Based on these facts, the Commission voted on April 13,

1978 to close the file on the matter with no further action.

8. Preservation of Receipts

Section 432(d) of Title 2, United States Code, states,

in part, that it shall be the duty of the treasurer to obtain

and keep a receipted bill, stating the particulars, for every expenditut"'c made by or on behalf of a political committee in

excess of $100 in amount, and for' any such expenditure in a

1c sse r aIII 0 U nt, i f the a99,-. egut e aIII 0 U nt 0 f s uchex pen di t U res

to the same person during a calendar year exceeds $100.

In addition, Section 102.9(c)(4) of the Commission's

Rcgu1iltions states, in part, that instpad of a receipted bill,

the t rea sur C ,-. IIIay kc ep the can cell ed chec k s h0 \oJ i n9 paymen t

of the bill, and the bill, invoice, or other contemporaneous

mem0 '" and um•

Our ,.. P vie\oJ 0 f the C0 IilIII itt e c 's c xpen d i t ur erecords

dis c los ed 51 e x pen d i t ures, ea chag9'" ega tingin c xc es s 0 f $100

and totali n9 S60 , 30 6 . 9 1, \'J C r' c not SLIP P() '" ted by r e ce i pte d bill s

orothe t" sup po r' l 'j 11 9 doc UIIIentat ion . H0 \'J e e''', can eel 1ed che c ks

\'1e rep'" c sen ted for' each 0 f the 51 ex pen di t ur' C S • This r' epre sen t s

a p Pr'O x i mat ely 11 '.~ 0 f the numbe," and 36 ~~ 0 f the doll a '" amo unt

requiring supporting documentation.

The t rca su'" e'" stat d t hat t his res u1ted froman

appa," en t 0 ver' s i g ht by the Comm ittec •

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"Recommendation

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The Committee officials presented the required documentation

for 49 of the 51 expenditures to the Audit staff for review. In

addition,. they presented evidence of their efforts to obtain the

documentation for the remaining. t\~O (2) items. It is our opinion

that the Committee has demonstrated its best efforts to obtain

and submit the required document~t;on pursuant to l02.9(c) of

the Commission's Regulations. Therefore, we recommend no further

action on this matter.

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Recommendation

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c. Disclosure of Expenditures

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otit.. i n9 the il Ud it, i t \'1 a s dc t e rill i ned t hat the Commit tee

did nol itemize five (S) tr'illlsfers f,"ol11 political committees,

totaling ~<~,S4B, repre5ent.i"~1 llPP1"oxilHatcly 13~:' of the numbe,'" and

B~: of the dollar amount of all transfers •

Section '134(b)(il) of Title 2, United States Code,

s tat e s, i n pa ,.. t, t hat C il C h 1" e po," t s hill 1 con tit i nth e nam e and

add res S 0 f e a c h pol i tic ale 0 m!nit tee f." 0 Ill· \oJ h i c h the rep 0 r tin9

committee ,"eceiv~d any tr'an$fet' of funds, togethcr" \oJith the

amounts and da tes of all t'''(\1\5 fet's.

The Com111 ittec f i 1edan it III end cdrcpo r ton ~1 arc h 21, 19 78 ,

dis c los i n ~J the nc c e s s a r" y i t CIII i z a t i OilS • The ref 0 r e, \'J erecommen d

no fur'ther action on this matte ....

Our rev i e \"' 0 f the Comm ittec 's ex pen d i t ur erecor ds

disclosed that the Committee did not itemize 40 expenditures,

each aggregating in excess of $100 and totaling $3,852.20.

This represents approximately 9:'~ of the number' and 2% of the

dollar amount of itcmizable expenditures.

The t rca sure ,.. s tatedt hat the e e xpen d i t ures \oJ ere

not itemi zed bee a1Isethceomill ittee 's a 9 ~J reg at ion sy s tern \oJ as

maintained on a quarterly, rather than a yearly, basis.

Section 434(b)(9) of Title 2, United States Code,

states, in part, that each report shall contain the identificat ion 0 f e it c h person to \oJ hom ex pen di t ures have bee n mad e by

the com111 i l tee \,' i t hi nthe cal end a,.. yea r inanag9reg ate am0 unt

0'" value in excess of $100, the amount, date, and purpose of

each such expcnditure.

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Thp Co111m itte e f i 1cd an am end ed rep 0r ton r4 arc h 21, 1978 ,

i t em i z i nq the t ran s fer s • The ref 0 r e, \'/ere C omm end no fur the r

act ion 0 nth isma t t c t" •

The trea surer of the Comtn i t tee sta ted tha t because

of an apparent oversight, combined with his misinterpretation

of the Act, these transfers were reported as unitcmizcd

receipts. •

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Rccommendiltion •

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E. Disclosure of Proceeds From Fundraising Events

Section 434(b)(6) of Title 2, United States Code,

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

amount of proceeds from eact1 fundraising event.

We determined that proceeds from fundraising events

had not L)(~ end i sc los edon the r c qui red Schedu1e sO.

We were informed by the treasurer that the Committee

he 1d t \./ 0 (2) fun d r a i sin9 cveil t s • It e ; ndie ated t hat a ppro xi mat ely

$15 , 000 \'1 a s r c c e i vcdin ; nd i vi d ua 1 con t r ; but ion S 0 f S100 to

$150 f r' 0 III the firs t eve ntand il Ppro xi III ate 1y S2 , 000 \'1 as r ece ; vcd

in individual contributions of $25.00 from the second event.

The S e i t eIII S \-J ere dis c los editsind i vi d U J 1 con t ributi 0 nson the

Committee's reports, however, because of his unfamiliarity

\oJ i t h the r' e qui 1" e d f 0 1" In at, the t rea sur c r' s tatedthat noSc he du1e s

o \oJ ere f i 1ed •

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\oJ e r C' c c i vedt 11 eSc hedu1e s Don ~1 arc h 21, 1978, d; s c losi n9

the fundril is i ng pr'oc(~cds. Thcl"efol~e, \'Je ..-ecommcnd no furthcl'

action Oil this mattct~.

Section 434(b)(8), (II), and (14) of Title 2, United

Sl ale S Cod e, s tat (~S, i n purt, t hat e a c h rep 0 t~ t s ha 11 dis c los e

t hc t: 0 t it 1 slim 0 f ill 1 '" e ce i pt 5 and ex p(' ndi t lIl" e s, and sue h other

infor'mat.ioll as shall be requ·irpd by the Commission •

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Our r~view of the Committee's records d1scl~sed

that, because of minor bookkeeping errors, total receipts

were understated a net amount of $150.38, expenditures were

understated a net amount of $565,01. and ending cash was

overstated a net amount of $44.62 •.

• The trca~urer acknowledged the bookkeeping errors • . Recommendation

The Committee filed an amended report on March 21, 1978

disclosing these corrections. 'Therefore, we recommend no

further action on this matter.

G. Oth~L~1atters

Presented below arc other matters noted during the

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

The Committee has been advised of these discrepancies and

informed of the respective requirements of the Act.

1. Five (5) contributions, aggregating in excess

of $100 and totaling $400, were not itemized.

2. Two (2) refunds, exceeding $100 and totaling $370.76 were not itemized •

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• Candidata/Committee:

CONGRESSIONAL AUOIT REPORT

J. W. Adams I Adams for Congress Committee

State:

Oistric-::

Location:

Georgia

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Political ?artJ ~ffiliat;cn: Republican

Billy Lee Evans

Votes Cast: G~neral ~iec:ion -

Other C~ndica:=s ~udltad: Evans

Evans 91,351 Adams 39,623

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PrirnarJ E1 ec~i on -

Tot~l ~x~enci:~r~s for ?~ricd:

Firs~ ~iec~a~ (if ~ppiic~b1~):

None

$203,386.29

$202,529.71

N/A
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FEDERAL ELECTION COM,\\lSSION

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ADDITIONAL INFORMATION REGARDING '!HIS ORGANIZATION

MAY BE lOCATED IN A CDMPLETED OOMPLIANCE AcrION

FILE RELEASED BY THE CXM1ISSION AND MADE PUBLIC m

'!HE PUBLIC RECDRDS OFFICE. FOR '!HIS PARTICUlAR

ORGANIZATION'S CXJMPLETED aH'LIANCE ACrION Fn.E

SIMPLY }SK FUR mE PRESS sm+1ARY OF MUR /1 7tS

'lHE PRESS sm+fARY WlIL PROVIDE A BRIEF HIS'IDRY OF

'!HE AND A sm+fARY OF THE ACrIONS TAKEN, IF Nfi.
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