FEDERAL ELECTION COMMISSION

WASHINGTON, 0 C 204h3

April 6, 1981

MEMORANDUM

TO:

FROM:

FRED EILAND

PRESS OFFICE

BOB COSTA

SUBJECT: PUBLIC ISSUANCE OF FINAL AUDIT REPORT

ARRANGEMENTS COMMITTEE OF THE REPUBLICAN

NATIONAL COMMITTEE FOR THE 1980 REPUBLICAN

NATIONAL CONVENTION

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Attached please find a copy of the final audit report

for the above named committee which was approved by the

Commission on March 27, 1981.

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 /
, FEDERAL ELECTION COMMISSION

WASHINGTON, 0 C 204&3

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REPORT OF THE AUDIT DIVISION

ON THE

ARRANGEME~TS CO}~~ITTEE OF THE REPUBLICAN NATIONAL

CO~~ITTEE FOR THE 1980 REPUBLICAN NATIONAL CONVENTION

I. Background

A. Overview

This report is based on an audit of the Arrangements

Committee of the Republican National Committee for the 1980

Republican National" Convention (lithe Committee"), to determine

whether there has been compliance with the provisions of the

Federal Election Campa:"gn Act of 1971, as amended ("the Act").

The audit was conducted pursuant to Section 9008(g) of Title 26

of the United States Cede which directs the Commission to cond~ct

an examination and aud:"t of the payments for Presidential

nominating conventions no later than December 31 of the calendar

year in which the convention is held. In addition, Section 90J8.9

of Title 11 of the Code of Federal Regulations states, in par~,

that the CO~i5sion shall conduct an examination and audit of t~e

convention corr~ittee nc later than December 31 of the calenca~

year of the convention.

The Co~~ittee registered with the Federal Election

Commission on ~ugust 10, 1978 as an affiliate of the Re?ublica~

National Committee. o~ June 4, 1979, the Republican National

Committee desicnated t~e Committee as the convention committee of

the Republican·Party. The Committee maintains its headquarte=s in

Washington, D.C. The audit covered the period from August 10,

1978 through Septembe~ 30, 1980. During the period, the Co~m:"~tee

reported a beginning c~sh balance of $-0-, total receipts of

$4,517,451.76, total expenditures of $4,408,756.54, and an en=i~g

cash balance C~ Septe~~er 30, 1980 of $108,695.22. In additic~,

certain financ~al activity has been reviewed through March 4, 1981.
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" This audit 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 principal officers for the period audited were:

Mr. Bill Brock, Chairman; Mr. William J. McManus, Treasurer,

for the period August 10, 1978 through February 22, 1979, and

Ms. Ginny C. Martinez, Treasurer, for the period February 22,

1979 to the present.

c. Scope

II. Finding and Recommendation

The audit included such tests as verification of total

reported receipts and expenditures and individual transactions;

review of required supporting documentation "and analysis of

Committee debts and obligations; review of contribution and

expenditure limitations; and such other audit procedures as

deemed necessary under the circumstances.

• A. Unspent Portion of Fund Payment

Section 9008(h) of Title 26 of the United States Coce

states, in part, that the Commission shall have the same autho=ity

to require repayments from the national committee of a major party

as it has with respect to repayments from any eligible candidates

under Section 9007(b).

In addition, Section 900S.lO(e) (1) of Title 11 of

the Code of Federal Regulations states that if any portion of

the payment under 11 C.F.R. 9008.3 remains unspent after all

convention expenses have been paid, that portion shall be

returned to the Secretary of the Treasury.

Also, Section 9008.10(9) (2) of Title 11 of the Code

of Federal Regulations states, in part, that the national

committee shall repay to the Secretary within 90 days of the

notice, the amount of the repayment.
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On January 23, 1981, the Commission approved the

Audit staff's determination that the Committee's unspent

portion of its entitlement as of November 20, 1980 was

$28,046.21 (surplus). As a result of audit work performed

after the 30 day response period to the interim audit report,

our review of the Committee's financial activity for the period

November 21, 1980 through March 4, 1981 indicated that the unspent

portion of its entitlement, as of March 4, 1981, is $15,758.85.

The Committee's financial position; as of March 4, 1981 is depicted

below:

Arrangements Committee of the Republican'National

Committee for the 1980 Republican National Convention

Financial position as of March 4, 1981

Assets

Cash-in-bank

Accounts Receivable

Capital Assets

Total Assets

$ 90,708.85

1,000.00

750.00

$ 92,458.85 $ 92,458.85

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Obligations

Accounts Payable for Qualified

Convention Expenses ($ 18,200.00) II

Estimated Winding Down Costs ~/

11/20/80 to July, 1981 (projected termination date)

Misc. Office Expense ($ 3,500.00)

Printing & Distribution of the

Convention Proceedings (55,000.00)

Total Obligations

Net Unspent Portion of Entitlement

($ 58,500.00)

($ 76,700.00) ($ 76,700.00)

$ 15,758.85

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Not included in this amount is a $67,594.55 bill the

Committee received from a vendor. The Committee staff

have stated that the Co~~ittee is not liable for this bill

and no action will be tnken concerning this bill.

The estimates for expenses by the Committee were provided

by Committee staff.
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Reccmmendation

. 'Based on a review of the Committee's financial position,

it is the recommendation of the Audit staff that, absent the

Committee's showing to the contrary, the Committee's unspent

portion of the entitlement of $15,758.85 3/ be repaid to the

Treasury pursuant to 11 C.F.R. 9008.• "10 (e)T1) within 90 days of

the receipt of this report pursuant to 11 C.F.R. 9008.10(9) (2).

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The results of the audit of the Civic Host Committee did

not impact upon the Committee's repayment amount. The

Audit staff will review the Committee reports and/or

records in order to establish the accuracy of the estimates

in the above financial analysis.
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