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October 21, 1997

MEMORANDUM

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TO:

FROM:

SUBJECT:

RON M. HARRIS

PRESS OFFICER

PRESS OFFICE

ROBERT J. COSTA fII,1.f,--

ASSISTANT STAFF DIRECTOR

. AUDIT DIVISION

PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON

KEVIN QUIGLEY FOR CONGRESS

Attached please find a copy ofthe final audit report and related documents on

Kevin Quigley for Conaress which was approved by the Commission on October 1S. 1997.

Infonnational copies ofthe report have been received by all parties involved and

the report may be released to the public.

Attachment u stated

cc: Office ofGeneral Counsel

Office ofPublic Disclosure

Reports Analysis Division

FEe Library
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REPORT OF THE AUDIT DIVISION

ON

Kevin Quigley for Congress

Approved Oetober IS, 1997

FEDERAL ELECI10N COMMISSION

999 E STREET, N.W.

WASHINGTON, D.C.
TABLE OF CONTENTS

KEVIN QUIGLEY FOR CONGRESS

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Audit Report

Background

Findings

Transmittal to Committee

Chronology

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REPORTOF THE AUDITDIVISION

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KEVIN QUIGLEYFOR CONGRESS

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I. BACKGROUND

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A. AUDIT AUTHORITY

This report is based on an audit ofKevin Quigley For Congress (the

Committee),llJ1dertaken by the Audit Division ofthe Federal Election Commission in

accordance with the provisions ofthe Federal Election Campaign Act of 1971, as

amended (the Act). The audit was conducted pursuant to Section 438(b) ofTitle 2 ofthe

United States Code which states, in part, that the Commission may conduct audits and

field investigations ofany political committee required to file a report under Section 434

ofthis title. Prior to conducting any audit under this subsection, the Commission shall

perfonn an internal review ofreports filed by selected committees to detennine ifthe

reports filed by a particular committee meet the threshold requirements for substantial

compliance with the Act.

B. AUDIT COVERAGE

The audit covered the period from the Committee's initial deposit, March

8, 1996 through December 31, 1996. The Committee reported a beginning cash balance

ofSO; total receipts for the period of$499,571; total disbursements for the period of

$482,656; and an ending cash balance ofS16,915.1

C. CAMPAIGN ORGANIZATION

The Committee registered with the Federal Election Commission on April

2, 1996, as Citizens for Kevin Quigley for Congress, the principal campaign committee

ofKevin Walsh Quigley (the Candidate), Democratic candidate for the U.S. House of

Representatives from the State ofWashington, 2nd District. On May 3, 1996 the

Committee changed its name to Kevin Quigley for Congress.

All amounts in this report have been rounded to the nearest dollar.

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The Treasurer ofthe Committee from its inception until January 31, 1997,

was Christine Wakefield. Mr. Stephen M. Dean became the Treasmer on January 31,

1997 and is the em-rent Treasurer. The Committee maintains its headquarters in Lake

Stevens, Washington.

To manage its financial activity, the Committee used one bank account.

From this account, the Committee made approximately 410 disbursements. The

Committee received approximately 2,000 contributions from individuals, totaling

approximately 5202,615, which represented about 400A» ofthe Committee's total receipts.

In addition, the Committee received 204 contributions from political action committees

and other committees, such as party committees and candidate committees, totaling about

5293,154 (or 59OA» oftotal receiplc;), and received other receipts, totaling 53,803 (less than

1% oftotal receipts).

D. AUDIT SCOPE AND PROCEDURES

The audit covered the following general categories. However, the scope of

the testing of.contributions received from individuals was limited due to the fact that the

Committee's contribution records were not maintained in a manner which allowed the

Audit staffto perform substantive testing ofaggregate contributor totals. The

Committee's files included a printout ofcontributions in deposit order and photocopies of

all contributor checks deposited to the Committee bank account arranged in the same

order. The Committee did satisfy the recordkeeping requirements of 11 CFR §102.9 in

maintaining its receipt records.

The audit included testing ofthe following general categories:

1. The receipt of contributions or loans in excess ofthe statutory

limitations;

2. the receipt ofcontributions from prohibited sources; such as those

from corporations or labor organizations;

3. proper disclosure of contributions from individuals, political

committees and other entities, to include the itemization of

contributions when required, as well as, the completeness and

accuracy ofthe information disclosed;

4. proper disclosure ofdisbursements including the itemization of

disbursements when required, as well as, the completeness and

accuracy ofthe infonnation disclosed;

s. proper disclosure ofComminee debts and obligations;

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the accuracy oftotal reponed receipts, disbursements and cash

balances as compared to Committee bank records;

adequate recordkeeping ofCommittee tnmsaetiODS; and

other audit procedures that were deemed necessary in the situation.

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Unless specifically discussed below, no material non-compliailce was

detected.

D. AlJDlT FINDING AND RECOMMENDATIONS

Based upon examiMtion ofthe reports and statements filed and the records

presented by the Committee, DO material problems in complying the Federal Election

Campaign Act were discovered during the course ofthe audit.

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October 16, 1997

Mr. Stephen M. Dean , Treasurer

Kevin Quigley for Congress

1029 Springbrook Road

Lake Stevens, WA 98258

Dear Mr. Dean: .0

Attached please find the Report ofthe Audit Division on Kevin Quigley for

Congress. The Commission approved the report on October 15, 1997.

The Commission approved Audit Report will be placed on the public record on

October 21, 1997. Should you have any questions regarding the public release ofthe

report" please contact the Commission's Press Office at (202) 219-4155. Any questions

you have related to matters covered during the audit or in the report should be directed to

Philomena Brooks or Ray Lisi ofthe Audit Division at (202) 219·3720 or toll free at (800)

424·9530.

Sincerely,.

~~Assistant StaffDirector

Audit Division

Attachment as stated

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CHRONOLOGY

KEV1N QUIGLEY FORCONGRESS

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Audit Fieldwork

Final Audit Report Approved

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719/97 -7/18/97

10/15197

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