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FEDERAL ELECTION COMMISSION

1'11) K ~I Rill N W.

W,\SHINC 10N.O (. 2(}4()'

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REPORT OF THE AUDIT DIVISION

ON THE

BETTER GOVERNMENT COMMITTEE

(Richard l. Ottinger)

1. Background

A. Overvi ew

This report is based upon an audit of the Better

Government Committee (lithe Committee"), undertaken by the

Audit Division of the Federal Election Com~ission in accordance

with the Commission's audit policy to determine whether there

has been compliance with the provisions of the Federal Election

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

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

States Code, which directs the Commission to make from time to

time audits and field investigations with respect to reports and statements filed under the provisions of the Act.

The Committee registered with the Clerk of the U.S.

House of Representatives on April 23, 1974 in support of the

Honorable Richard L. Ottinaer, candidate for election to the

office of u.s. Representative from the 24th Congressional District of New York. The Committee maintains its headquarters in Scarsdale, New York.

The audit covered the period from January 1, 1975,

the effective date of the Act as amended, through June 30,

1977, the final coverage date of the latest report filed by the Committ~e at the time of the audit. The Committee reported

a beginning cash balance as of January 1, 1975, of $2,537.50,

total receipts for the period of $62,243.69, total expenditures for the period of $63,036.36, and a closing balance as of

December 31, 1976 of 51,744.83. 1/

1/ The Committee filed FEC Forms 3a for the period January 1,

1977 to June 30, 1977 .
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. This audit report is based on documents and working

papers supporting each of its factual statements. They form

part of the record upon which the Commission based its

decisions on the matters in the renort and were available to

Commissioners and appropriate staff for review.

B. Key Personnel

The principal officers of the Committee during the

period of the audit were Raymond T. Heilpern, Chairman and

Helen W. Heilpern, Treasurer.

c. Scone

The audit included such tests as the verification of

total reported receipts and expenditures and individual transactions; review of required supporting documentation; analysis of Committee debts and obligations; an~, such other audit

procedures as deemed necessary under the circumstances.

II. Auditor's Statement and Description of Findings

It is the opinion of the Audit staff, based upon examination of the reports and statements filed and the records pre- sented, that, except for the deficiencies noted below, the

reports and statements of the Better Government Committee fairly

present the financial activities of the Committee for the period covered by the audit. Further, exceot as noted below, no

material problems in complying with the Federal Election Campaign Act were discovered during the course of the audit.

A. ReportinQ of Exemnt Accounting Services

Section 434(b)(2) of Title 2, United State Code,

requires that each report shall disclose the full name and

mailing address (occupation and orincipal place of business,

if any) of each person who has ~ade one or more contributions

to or for such committee or candidate within the calendar year

;n an aggregate amount or value in excess of $100.00, together with the amount and date of such contributions. Further,

Sections 431(e)(4) and 431(f)(4)(J) of Title 2, United States

Code, exclude from the definitions of contribution and expenditure, legal and accounting services rendered to or on behalf of the

Committee solely for the purpose of ensuring compliance with

the provisions of the Act, by the regular employer of the individual rendering the services. However, the value of these

services must be reported in accordance with Section 434(b)

of Title 2, United States Code .

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During the course of the audit, it was determined

that an individual provided bookkeeping services to the

Committee at no cost. This individual was a salaried employee

of a partnership of which the assistant treasurer of the

Committee was a Odrtner. Accordinq to the assistant treasurer,

this individual ~pent approximatel~ 30-40 hours durin" normal

working hours in the preparation of the payroll, tax, and

disclosure reoorts 9for the Com~ittee. Servic~s of this nature

must be repor~ed as exempt accounting services from the

partnership employing the individual providing the services.

Recommendation

On February 2, 1978, thp Committee filed an amended report assiqning a value of 5250.00 to the bookkeepinq services provided

and dis c los i ng the 5 er vic e S ;1 S d n i n- kin d con t rib uti 0 n from the

partnership. Therefore, no further action is recommended on this

matter.

B. Disclosure of Occupation and Principal Place of Business

Section 434(b)(2) of Title 2, United States Code,

requires that each report shall disclose the full name and

mailing address (occupation and principal place of business,

if any) of each person who has made one or more contributions

to or for such committee or candidate within the calendar year

in an aggregate amount or value in excess of ~100.00, together

with the amount and date of such contributions.

Our review of Committee contribution records revealed

that the occupation and princioal olace of business of 24

contributors (32.9:~) whose aqqr~Qate contributions exceeded

$100.00 were not disclosed. These contributions totalled

$4,600.00 (26.94~ of total itemized contributions).

In order to-obtain additional information~ such as

occupation and principal place of business for a contributor,

the Committee would attempt to contact the contributor by

telephone. The Committee officials were of the opinion that

this procedure represented their best effort in obtaining

additional information.

Recommendation

On February 2, 1978, the Committee filed amended reoorts

disclosing the occupation and principal olace of busines~ for

18 of the 24 contributors noted above. Considerino the Committee's

efforts to secure this information, the Audit staff recommends

no further action on this matter •

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Itemization of Transfers-!n

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Section 434(b)(4) of T;tle 2, United States Code,

requires that each report shall disclose the name and address

of each political committee or candidate froM which the reportinq committee received or to which that committee made any transfer

of funds, together with the amounts and dates of all transfers.

Contribution records revealed that the Committee did

not itemize 11 transfers-in totallinq 5835.00 (42.31~ of total

number and 11. 43~.', 0 f tot a1 doll ar va 1ue of all transfers - in)

each aggregating lp$s than 5100. The assistant treasurer was

of the opinion that the Committee was required only to itemize

transfers-in, which in the aggregate, exceeded S100.00.

Recommendation

The amended rpports filed by the Committee on February 2,

1978 itemized the transfers noted above, therefore the Audit

staff recommends no further action on this matter.

D. Itemization of Expenditures

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Section 434(b){9) of Title 2, United States Code,

requires that each report shall disclose the identification of

each person to whom expenditures have been made by such

comm itt ee\'l; t hi nthe cal end aryear ; nan aq9reg ate amo un tor

value in excess of $100.00, and the amount, date, and purpose

of each such expenditure.

During the course of the audit, it was determined

that the Committee did not itemize 23 of 127 expenditures (18.l1~), each a9~rcgating in excess of S100.00 within the

calendar year, totalling Sl,330.22 (1.21~ of total itemized

expenditures). Thi5 was a resuit of the Committee not maintaining an aggregation system to identify multiple expenditures

to the same person.

Recommendation

The amended reports filed by the Committee on February 2,

1978 disclosed the expenditures noted above 9 therefore no

further action is recommended by the Audit staff.
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Presented below are other matters noted during the

audit for which the staff feels no further action is warranted.

1) The Committee wrote four (4) checks payable to cash.

each in excess of S100.00, totalling $1,640.00 for reasons other . than to replenish the petty cash fund. However, proper documentation

was maintained for each of the expenditures.

2) The Candidate aid not file a Statement of Candidate

designating the Committee as his principal campaign committee for

the 1976 election .
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CONGRESSIONAL AUDIT REPORT

Candidate/Committee: DAVID HICKS/CITIZENS FOR HICKS

State: NEW YORK

. District: 24

Location: WESTCHESTER COUNTY (NEW YORK CITY SUBURBS)

Political Party Affiliation: REPUBLICAN

Major Opponent(s): RICHARD OTTINGER (D)

Other Candidates Audited: OTTINGER

Votes Cast: General Election - OTTINGER 99,761

Primary Election - NONE

HICKS 81,111

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Total Receipts for Period:

Total Expenditures for Period:

First ~lected (if applicable):

$59,693.16

$56,881.64

N/A