1\.~',,, .... 11-:111 '-\\

\\ \"111'-( ,J( )', : II .'(I·ltd

FUJI-_RAI [\ tenON CO,\\,\ \\SS\( )N

REPOR'r OF 'rIllE AUDI'r lHVISION

ON TIlE

UNI'l'ED CM1PAIGN COHMI'l'TEE OF DAVIDSON COUN'rY

Dl':HOCHiYl'IC EXEcu'rIVE COHMITTEE #2

'rhe Committee r(~q i ~,tered with the Federal Election

Commission on July 24, 197B as an authorized committee desiqn.J.tcd

by the Honorable James R. :;"sser, Democratic Canc1id.:lte for Uni t(;(}

States Senate from 'l'enneS~;L'e. 1/ 'I'he Conuui ttee maintained its

headquarters in Nashville, 'renncssee.

1/ 1\1 thouqh the Commi t tee had bec.:n designated by the Honorable

.1'-il~\L'S 1~. S:1sscr, on October 18, 1976 and had filed reports

oi- l'L·,:~'ipts a:lc1 e:':LJc~nditurcs for the period commencing

(lele'::"'!" 19, l~nG, it h.:1d not filed a statement of organi::.J.-

I ill1:. l~l'fer to ;\uditor's Statement and Descriptions of

I'i I:": i n.;~; P~1l-,"1'.:L1;:~ i\.

A. Overview

'rhe audit coverell the period October 19, 1976 throu0h

December 31, 1977, the final coveraCJe date of the most recent

report filed by the COI~u~\ittee at the time of the audit. During

the pc.:riod, the Commi.ttee reportcd a beginning cash on hand

balance of $ - 0 -, total receipts of $15,502.00, total expenJitures of $15,479.60 and a closi.nq cash on hand balance of $22.~O.

This report is based on an audit of the united CampaiCjn

COlllmittee of D.:lvidson County Democratic Executive Committee =2,

(lithe Committee"), undertaken by the Audit Division of the Federal

Election Commission in accordance with the Commission's audit

policy to determine \\'hcU\l!r there has been comp1.iance with the

provisions of the Federal Election Campaign i\ct of 1971, as

<lmended (" the Act"). 'rhe audit was conducted pursuant to Section

438(<.1) (8) of 'l'itJe 2 of the United States code which directs the

Commission to make from timc to time audits anc1 field investi,;;alions with respect to reports and statements filed under the

provisions of the ;\ct.

1. ~ackrJ round

•
c. Scope

'rhe principal offi cars of the Committee during the

period audited were Mr. Phillip L. North, Chairman and

Hr. 'l'homas' C. Crmvford, -'rrea:;urer.

II. Auditor's Stutement un(~__I2~~scription of Findings

'\'he uudit incluckcl ::llch tests as verification of total

reported receipts and expenditures and individual transactions;

review of required supportinq documentation and analysis of

Comml t tee clc!bts and ob1i~luti()ns; and, such other audit procedures

uS clue'me',1 necessury under till.' circumstances.

section .133 (0) of '1' i t1e 2 of the Uni tcd States Code

require::; un authorized COlluni t tl~C (other thun ;:} principal cCl::lpaign

calami ttue) to file a statCI:lunt of organization- with the principul

ciJ.:~lpai(.ln con:r.littce within 10 days after it anticipates recciving

_con tribn tions or making expcndi tures exceedin~l $1,000. In

iJ.ddition, section 102.1(a) and (b) of the Commission's Regulations

rcquires the principal campui~jn.commi ttec to file a copy of the

statem(~!1t wit.hin the 10 cliJ.y pc·riod.

B. Kev Personnel

-----_._--

1\. !\cc;istration of ,";'..It-horizcd Committee

-2-

It is the opinion of thu Audit staff, bused upon examination

of t.iw reports and stutemcnts filed and the records presented,

tha t, L!:,ccpt for the deficiellcies noted belmv, the reports and

statemunt~ of the united CamlJulgn Committee of Davidson County

'Uelnocratic Executive Committee #2 fairly present the financial

<,ct.Lvi.lit~S of tht~ committee for the period covered by the audit:..

Fu l-thL'l-, except as noted below, no material problems in complying

: Vii th l ilL! \·'cucral Election C.:tllllJaign Act were discovered during

the course of the audit.

'l'his audit report is based on documents and working

papers whjcll 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.

•
•

-3-

During the course of the audit, it was determined that

the C:1 i l.'c! Campaign Committee of Davidson county Democriltic

E:-:ccuti'!.. Conunittee #2 became an affiliated committee authori:wd

by tho (;'Illdidate on october. 18, 1976, but had not filed a statement 0:- ol:qanization. '1'ho treasurer of the Committee \"a:~ of th(~ opinion t.!I~lt the stul<"llIent 'vIas properly filed with the pr.incipul

campai<;:l c.:ommittt..!c. I"urthf~r verification disclosed that the

stCltC:-:',l~:ll: had noL bCl!n rU,'d, hO'vlL'Ver, tll\.~ treasur.er c:·q>rcssed

a ..;ill i nqllcss to fil...: the ::l.iJtewt..'nt of on.lani7.aLion.

:3.:..:;,_,<1 upon the :\udit :;Ldff'~~ recommendation the committee

filee: i '.:; :-;tatcment of orqallizlltion on July 24, 1978. '1'hereforc,

no fU~:~:I,:I- Clction is recon~Jil{:ndl!d on the matter.

~(!L:tion .lJ2(d) of 'l'it I,! 2 Unitlx1 States Colle states,

,1n :'~'.:l:::~, that it shall be lhe dUl',' of the tr0Clsurer to obtain

<inn ;~-':'L';,. Cl rccei!,)ted bill, ~:;Llt ill.j the particulars, for every

l~:-:Fe::·.\.;i:..urc m.:tde by or on }x·h;d: Ilf a political committee in

(~:.:c':::::S ()~, :n.OO in amount, Clnd fill' :.1ny such c:·:pendi ture in a

lL:Ss-..;-:-- ~':l\Ount, if ti~e Cl~;(Jl:''':'j':lh: d:lil1t1l1t of such e:-:pcnditures

to t.:,t:: :-;,llll"': person L:urinl.i ;1 Cilll·II.!,ll- yecll: e:·:Cl..'L'L1s $100.

S('ction l02.()(c) (·il 0: I hl~ c0mnd.ssion' s l{c.~(Julations

statcf,;, i.n part, th~lt \'.'lwn ~l l',.'c,'iptl..'d bill is not available t.he

trca:;'.:~-"( may kccp .J. C~1!lcC'J l.'.'Ll ,~It""k shm':ing payment of the b.ill;

ane; t:i': IJi.ll, invoice, 01: Ot.:1CI: ,'()ntcmpor.J.ncous mc:mor.anc1um.

Our n ..~vie\'.' at: Ul(~ Cl)l'lmi (('ce's (:,xpcnditure r.ecords

di sc2.cs· ·-i tlli1 t. four (,1) '''':·:i'\..~:ld itlll',-,S, c:.1ch aQsrc'!:.1tinSj in C:':CL~SS

of :;FJ''j i1nd tot:.1lin.; ~;;~~,2::;9.G8, \·,,'I:e not. support.(~c1 by receiptL~L1

bi l:i.:-; c;- othL~r CO!1t.0;npol:<'1II<..~Oll~:; Il\' ·!i\nranC:.:1. 1!00';l~ver, c.J.ncelJ ell

c!1,'.::::::'; ·..:or(~ presl.'n tl:d fo'( (.':1('11 Ll f t11(~ fuU17 (,1) o:-:P'-.:I1<,!i tU17L:S.

'l'llL3 ~:··;.ncscllts 2S.57': or the lIu:nb,]r ~llld l-l.SC)'. of tile dollar

.:m:o'c:::·': ;-·.:...£uir in~j c10CC::\l~nti1 t ion.

;':::'.:'_,,1 upon t:1C :\udit ~;t~lrr';, rccommencbtion, thc~ treasurer

ob:.::;,i::L',: dccumcnLl::.ion in si..l~'pnr'.: of t:hc~ (~:-:pcnc1itures and

Pl:c..:s... ::·,:,·.d copies fc~- the :-..l.lc:i.t st:l!~f's rcvic\.;. Therefore, no

fLl~::'::""'~: .:.lct..ion is r,.:'co:1~mL:ndL<1 01: thc matter.
,",'0;

•

'. -4-

C. (llh. ~r r-tafters

'1'I"'::eIlted below is another matter noted during the audit

(or which l hI' J\udit st<lff feels no, action· is warranted. 'l'he

Conunittec hoi:; been advised of this discrepancy and informed of the

respective n~quirements (:)f the Act. '

II:. W\lS determlncdthnt the conulli ttee riled four ( 4) .

• disclosUl~c'l~ep()rts between ·1 and 66 'days a ftei I.he required

date. . .