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Fl DE RAL ELECTI()N C();\1,\lISSIC)N

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I r ~()ERAL ELECTION COI\1,\1ISSION

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•

REPORT OF THE AUDIT DIVISION

ON THE

AUSTIN FOR SENATE

A. overvi.c\-J

This report is based on an audit of 1\ustin For

Senate (lithe Committee"), undertaken by the Audit Division

of the Federal Election Commission in accordance with the

conunission's audit policy to determine whether there has been

compl i~nce \vi th the provisions of the Federal Election Camp.:li'1n

Act of 1971, as amended (lithe Act"). 'rhe audit \vas conducted

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

Cude which directs the Commission to make from time to time

audits and field investig~tions with respect to reports and

statements filed under the provisions of the Act.

The Conunittee reqistered \vith the Federal Election

Commission on October 15, 1975, as the principal campaign

Committee for the Honorable Richard II. Austin. 'I'he Committee maint~ined its headquarters in Detroit, Michigan.

The audit covered the period from October 1, 1975,

through June 30, 1977, the final coverage date of the last

report filed by the Committee at the time of the audit. The

Committee re~orted a beginning cash balance on October 1, 1975,

of $ -0-, total receipts for the period of $239,665.92, total

0xpcndit.urcs [or the period of $235,150.07 and a closinq

c.:lsh bal.:1ncc on June 30, 1977, of. $ -0-. 1/

1/ Di~~crencc $4,515.85 - for the period ~/1/76 through

6/30/76 the Committ8c reportc~ $4,515.85 in unitcmizcd

receipts, howcv0r, the Committee also itemized this figure

( $"; , 315 . 8 S ) 0 n 5 cheLlu 1c l\, t :10 r e by, 0 vcr 5 tiltinq the tot .:11

rec0ipts tor the period bj" $4,515.85 •
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-2-

111 I I. Audit Findinqs and Recommendations

A. Prohibited Contribution

Section 4 4Ib (a) of Ti tIc 2 0[' the Uni ted States

t·odc states, in part, thilt it is unla\vful for any corporation

\vh~ltcver, to m.:.tY:l' a contr ibution or expenditure in connection

with any election to any Conqressional office, or for any

candid.:ltc, politi_cal commi ttce, or other person to knowingly

accept or rccci V(: Cllly sucll con l r ibution.

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,

Sect jon 4-l1.:l(f) (If Title 2 of th(~ United States

CoLIC' states, in pal-t, thdt 110 c~ndidc:1tc, political committee,

or off icer of a po litj Cd J c"oInmi t tee sha 11 kno\-Jing ly accept

any such contribution in vi()l~tion of the provisions of this

section.

'rhe Committee reccdvel1 nine (9) contributions,

tot.:llinq $622. 50, from hus i nl~S~~ en t i ties. Subsequent

confirmation \',Tith the Secret~tr,;, l)f Stette's office in ~1ichiq(1n

rcvca led thll L :11.L 0 f the en tit i \. 'S \\lQrc incorporated a t the time

the c () n t r i bu t ion s we r c~ m,-ld .

RCCOITU1\Cnd,-l t ion

CommitteC" o~7~icil-lls h:IVC~ submittc)<.l copies of the checks

used to refund the nj nL~ (9) contri but ions, there fore, we

rt~commencl no furLh~r aclion on th is ffilitter.

Section 432 (d) of Titlc~ 2 of thfl Uni ted States Cou~

~L~ltcs, in purt, that .it sh.ll1 be the duty of the treasurer

lo obtain ond keep a rccl·ii1LL'd bill, st~ting the purticulars,

f 01' every expend i tlll-C made' b'/ or on behalf of 3 political

cl)mmittcc in excess of $100 in .:lmount, and for any such

l'xi'L'nditure in .:1 lcssL"r dl11<1tlnt, if the a<Jqrec;ate amount of

~~uC'h L':<pcnditurc~-; to lhl' ~;.llHC· person durin~j the cale:nuLlr year

\. ... X (. t eel s $ 1 0 0 •

1 n aLl J i Li 0 11, SL'l t i () n 1 0 :.2 • 9 (c) (4) 0 f '}' i tIc 11 0 f the

Ctll.i~ of Fl-:deral H·~qul~ltioE':-; st:ltc~s, in part, th~lt instead of

.~ receipted bill, the tr'-'~lsurer may keep the cancelled check

shn\-ling r.:1~·mcnt 0: the bill~ and the bill; invoice or other

("nntL'mpor~lncous Ilh.:mor~lldum of the trLlnsClction supplied to the

ct)::1mi t tee b'/ t!h) ~--':l ':ee.
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Dur i 11<) til.. course of the audi t, it \oJas determined

th(lt 17 C

) l~xpc~ndiLllt-(~~~, totdling $49,565.38, were not supported

by rt~c{~i pLl~d bj 1 1~~, i.nvoi cos, or other contempordncous memoranda.

Il'h i s rc'prl~S(\n ts ] J'. () [ the number und 23. 1 of tiH' do lli1r va luc

of all i tl!miz(!d C-X!)l·l1ditures.

Committc-\.." officials sub1'1ittcd clocument~llion ~;upportin~1

40 l!xpenditures, tnldlinq $16,929.00, and evidence of their

e f. fOl-ts tn obt~l i n thl' documen tiltion for 128 other eXl H-Ild i tures

tolCll i nq $ 30, 19 () . 7 d • Huwever, the Commj t tee apparcn II'I f ailed

to obtain or dC'lHon:.;Ll-.ll.- its efforts to obtain the documentation

for the rcmaininq 11 (':·:l'('nditures totalin<J $2,439.60.

Recomm\..~ndoJ. t ion

B~scd on the .-.bovc.' information we recommend no further

(Jction on this ffiattc'r.

c. ~'latters H\.}[l'rrcd to the Office of General Counsel

Cert~in ()lh(~l:- ma t ters noted dur inq the aud i t were

rC~~~l~rrL'd to the Cumm i ssion' s Of~icC' of Gener;ll Counsel [or

co:~sldC'1-\.1tion on l\u'J\l~;t 2·1, 1979, dnd ~·~arch 3, 1980.
,"