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MJ001317

FEDERAL ELECTION COMMISSION

\\ "SHI-.;GTO'- 0 C ~O~bl

September 4, 1990

MEMORANDUM

TO:

FROM:

FRED EILAND

CHIEF, PRESS OFFICE

ROBERT J. COSTA ~' ,

ASSISTANT STAFF DIRECTOR

AUDIT DIVISION

SUBJECT: PUBLIC ISSUANCE OF FINAL AUDIT REPORT

LOUISIANA HOST COMMITTEE 1988, INC.

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CO Attached please find a copy of the final audit report on the

Louisiana Host Committee 1988, Inc., which was approved by the

Commission on August 2, 1990.

Informational copies of the report have been received by all

parties involved and the report may be released to the public.

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C) Attachment as stated

cc: FEC Library

Reports Analysis Division

Public Disclosure

Office of General Counsel
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MJOOl.l.G1

FEDERAL ELECTION COMMISSION

WASHINGTON 0 C 204&3

FINAL REPORT OF THE AUDIT DIVISION

ON THE

LOUISIANA BOST COMMITTEE 1988, INC.

I. Background

A. Overview

This report is based on an audit of the Louisiana Host

Committee 1988, Inc. ("the Committee") to determine whether there

has been compliance with the provisions of the Federal Election

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

conducted pursuant to 11 C.F.R. 59008.9 which states, in relevant

part, that the Commission shall conduct an examination and audit

of each host committee registered under 11 C.F.R. 59008.12(a){1).

The Committee registered with the Federal Election

Commission on January 19, 1988 as the host committee for the 1988

Republican National Convention. The Committee maintains its

headquarters in New Orleans, Louisiana.

The audit covered the period September 1, 1987 through

June 30, 1989. During the period, the Committee reported a

beginning cash balance of $0, total receipts of $1,892,915.19,

total disbursements of $1,821,173.33, and an ending cash balance

on July 10, 1989 of $71,741.86.

This report is based on documents and working papers

which support each of its factual statements. They form part of

the record upon which the Commission based its decisions on the

matters in this report and were available to Commissioners and

appropriate staff for review.

B. Key Personnel

The Treasurer of the Committee during the period audited

was Mr. Louis Costa.

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

limitations; and such other procedures as deemed necessary

under the circumstances.
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II. Findings and Recommendations

A. Misstatement of Financial Activity

Sections 434(b)(1), (2) and (4) of the United states

Code require a committee to report the amount of cash on hand at

the beginning of each reporting period and the total sum of all

receipts and disbursements for the reporting period and calendar

year.

The Audit staff's reconciliation of the Committee's

reported activity to its bank activity during the audit period

revealed the following misstatements.

1. Receipts

The Committee's reported receipts were understated

by a net amount of $368,451.47. The components of the

misstatement are as follows: l()

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Reported Receipts

Arithmetic error on

Schedule A

Loan Reported Twice~/

Unreported In-Kind

Contributions

Unreported/Itemizable

Receipts

unreported Unitemizable Receipts~/

Unexplained Difference

Correct Reportable Receipts

$ 4,750.00

(10,000.00)

308,175.11

34,334.40

31,652.98

(461.02)

$1,892,915.19

368,451.47

2,261,366.66

~/ The Committee received two loans for $5,000 each. The loans

are included on the detailed summary page of the Committee's

disclosure report on line 16 (Loans and Loan Repayments

Received) as well as on line 19 (Other Income).

~/ The Audit staff determined that for the period 9/1/87 through

9/30/88, the Committee received $245,268.33 in unitemizable

receipts. The Committee's report for the period discloses

$213,615.35 as unitemized. The amount $31,652.98 represents ~~€~if.f~~~nce.
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2. Disbursements

The Committee's reported disbursements were

understated in a net amount of $411,672.34. The components of the

misstatement are as follows: /

Reported Disbursements

Arithmetic error on

Schedule B

Loan Repayment Reported

TWice~/

Unreported In-Kind

Contributions

(27.10)

(10,000.00)

308,175.11

$1,821,173.33

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In-Kind Contributions

Reported on Schedule A

but not Schedule B 115,395.19

Disbursement Reported Twice (315.78)

(Payment to Lamothe and

Hamilton for legal services)

3. Ending Balance

The reported ending balance at June 30, 1989 was

overstated by $43,220.87 resulting from the misstatements detailed

above. The correct ending balance at June 30, 1989 was

$28,520.99.

Correct Reportable Disbursements o

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Unexplained Difference (1,555.08) 411,672.34

$2,232,845.67

In response to the recommendations of the interim audit

report, the Co..ittee filed a comprehensive amendment correcting

reported receipts, disbursements, and cash on hand.

~/ The Committee reported the loan repayment on line 23 (Loans

and Loan Repayments Made) and on line 24 (Other Disbursements)

of the detailed summary page of the disclosure report.
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