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FEDERAL ELECTION COMMISSION

1\2r, ~IRII' N.VV.

WA~HING 'ON,D.C. 204b.~

April 25, 1979

MEMORANDUf\1

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" TO:

THROUGH:

FROlvl :

SUBJECT:

FH1':J) l~ILAND

PRE:;!; OFFICE -::;:)~

BOn COSTA ~­ JUDY IlAWKINS.;l.........

PUBLIC ISSUANCE OJ" AUUIT RCPORT -

\-JASIIINGTON srrATE D(~r10CRATIC COr1.HI'rTEE

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Attached please find a copy of the final audit report

of the Washington State Democratic Committee which was

approved by the Commission on March 30, 1979.

As of this date all informational copies of the report

have been received by all parties involved and this report

may be released to the public.

Attachment as stated

cc: FEC Library

RAD

,/'Public Record

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FEDERAL EL[CTION COtv\,\\ISSION

H2C) 1\ SlRll r N \V.

\\'t\<'.UNGI0~.D C. 204b3

REPORT OF TilE AUDIT DIVISION

ON TilE

WASHINGTON STATE DEHOCRATIC COHt-!ITTEE

AND THE

WASHINGTON STATE DEHOCRATIC COHf.1I'I"rEE/FEDERAL

Background

A. OverviCvl

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This report is based upon audits of the Nashinqton

St~tc Dp t'1ocrt:ltic Commi ttec and the \\lashington State Democratic

~OD1~~tt(~('!Y~QeX·il.1-,- 1Jncl~J'"tqk9n_ py tl1Q A~!qit _Piyi~JQn gf t:h~

Federal Election Commission in accorcl.lncc ",i t.h the Conunission' s

andi t pn 1. icy to dclcrmine \oJhethcr there has becn compliance ",ith

the provisions of the F'c'deral Election Campaign Act of 1971, as

uIn0ndcd ("the Act"). 'J'hc audit ,..l(l~l conducted pursuunt to Section

4 38 (.:t) (B) 0 f Tit1c 2, Un i t eel f) tate ~~ Cade, \'lh i.c h c.1 i r c c t s the

Commi s i on to makc f r ("'Ill time to time (1 ud its and f i. c 1dinv est i r; \1 t :L 0 n

\·:i th rc~~pcct to reports ilnd stiltCI!lpnts filed under the provisions

of the l\ct.

The \'lushinqto)l St.lte Dcmocr.:l.tic Committee reqist l'r0d

":ith thc~ Federal Election Commission on ]\uqust 15, 1975. 'I'he

Cor:mli t tee had roll intilint~d seven (7) bunk ilccoun t~, on~. (1) of

"/hich \':11~ relutcd to fcdcr.:l.l nctivitv. "'his Committee tcr~lin.:l.ted

on AU\Tust 3, 1976 st.:l.tin~J that no sUJ)port \-Jould be given to

c~ndid<1.tes for federal office. On Septemher 2, 1976, the

\'l.:l.~)hinqton Stu te D~mocr(ltjc Party rC~J i st0rcd the lvashington

Stelte nCr.1ocriltic Committec/F('c1crul \vith the Federal Election

Conunission to report the activi. ty rcl.:l. ling flolcly to the one

(1) federal bunk uCCollnt. 'rIle Committees m~intained their

hCudqullrters in Seattle, t·:aflhinqton.

The Cludit covcre<l the pcrjocl ,1.111Utlry 1, 1976 thr0uqh

"June 30, 1978, the clate of t-hp current rpl'0rl due of th0 Commiltpc

at the time of the iludit.. 'fhe \':cJshinqtnll St:lte Dcmocratic

Cor.u~li ttec/Fcdcral reported (1 bC'Jinning cash balance ilt August 1,

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]97~ of $6,583.92, 1/ total receipts of $36,672.51, total

e:-q If 'nd i tures of $39-;-985.99, und an ending cash balance ilt June 30,

197H of $3,270.44. The Conunittec terminated on Auqust 24, 1978.

B. Kc'l Personnel --------

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'l'h(~ principal officers of both Conunittecs during the

pcr.i.o(l cover(~d by the audit were Mr. Neale V. Chancy, Chairman,

and Nr. Phill.i P Krueger, Treasurer.

r:I.'h(~ auc1i t incluc1<:,<l such tcsts as verifica tion of

total reported receipts iln<i expenditures and individual trans-

(lctjon~;; revi.o\oJ of requir(\d ~;upportinCJ documentation; analysi.s

of COI1lll\ i t tee debts and aD 1 i (F1 tions; and such other audit proccc1u rc

as dePlllcd necessary under the circumstances.

Tlis lhe op j n ion 0 f t h (~ Aud itsta f f hu S ed t1ron e :.~ Z1min:1 t- ion

of th("~ reportfj and sta tCT~lcnt~; filed and the records prcsen tnd,

th<1.t t hc~ \';"shinqton State DeIl\f)Crntic Commi tt(~(~ \-lllS nnt a pn 1 i. t 1.cCll

cOI:lmi tLee as <.lefinec1 by the Act and is not subject to the :jurir;-

dicat:jon of the Commission.

This opinion is bused on the fact that this COl:1mit:tc(' did

not [;upport cand id(ltc~s in connection vii. th F'cdcrc:11 el(~ction~~.

Comm.i tLec offi.cials st.J.tc\d th<1t reports \-:ere filed \.;i th thp

ComIl\i~)~;ion upon instructions (rom Commission personnel • ..

It is also the opinion o[ the Audit staff, based upon

cx~mi nlltion of the reports au<l stutel~cnts filed ;1n<1 the rl"cnrd~;

prc!;PHtC'cI, that th~ report;, antl statcInonL[; of the \vl.1shinqton Stal:(

DCl!l()("ril tic COlmni t lcc'/Fe<.1era 1 [a irly prf~~)cnt. thf~ f inancia i

activ.ity of the Comnittcc for the period covered by the audit.

No m.ll.erial problems in C()!:1p] ying \-li th the F0c1er~11 Flecti0n

Campt\ i.qn Act \.;crc discovered during the c<"'urse of the andi t •

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!_/ 'rho CC'r.~11l itt c(~ i1c1 .. ''1U:1 te 1~· d isclosec1 the source of these funds

as required by 11 CPR 104.10.

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