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RL872/122187

FEDERAL ELECTION COMMISSION

WASHINGTON, D.C 2()({)3

A87-15

December 21, 1987

MEMORANDUM

TO:

FROM:

SUBJECT:

FRED EILAND

CHIEF, PRESS OFF?E:CE

ROBERT J. COSTA

ASSISTANT STAFF 01 CTOR

AUDIT DIVISION

PUBLIC ISSUANCE OF FINAL AUDIT REPORTCITIZENS FOR LAURENTI, INC.

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Attached please find a copy of the final audit report on

Citizens for Laurenti, Inc. which was approved by the Commission

on December 8, 1987.

Informational copies of the report have been received by all

parties involved and the report may be released to the pUblic.

Attachment as stated

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cc: FEC Library

~lic D isclosure~ Office of General Counsel
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RL87,2/l20287

FEDERAL ELECTION COMMISSION

WASHINCTON. D.C 20463

A87-1S

REPORT OP THE AmIT DIVISION

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CITIZENS FOR LAURENTI, INC.

I. Backgroun4

A. Overview

This report is based on an audit of Citizens for

Laurenti, Inc. (Wthe CommitteeW), undertaken by the Au4it

Division of the Federal Election Commission in accordance with

the provisions of the Federal Election Campaign Act of 1971, as

amended (Wthe Act W). The audit was conducted pursuant to Section

438(b) of Title 2 of the United States Code which states, in

part, that the Commission may conduct audits and field

investigations of any political committee required to file a

report under Section 434 of this title. Prior to conducting any .~ audit under this Section, the Commission shall perform an I • internal review of reports filed by selected committees to .~ determine if the reports filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

The Committee registered with the Clerk of the House of

Representatives on December 28, 1983 and maintains its

o headquarters in Trenton, New Jersey.

The audit covered the period January 1, 1985, through December 31, 1986. The Committee reported an opening cash on

hand balance on January 1, 1985 of $8l.93~ total receipts of $335,708.8S~ total disbursements of $304,079.23~ and a closing cash balance on November 20, 1986 of $3l,7ll.SS.

On October 21, 1987, the Committee submitted a 1986 Year End

Report disclosing an opening cash balance on November 21, 1986 of $3l,7l1.SS~ total receipts of $6,080.47; total disbursements of $37,309.10~ and a closing cash balance..: on December 31, 1986 of

$482.92.

This report is based on documents and workpapers supporting 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

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The Treasurers of the Committee during the period of

the audit were Mr. John B. Petito from January 1, 1985 through November 26, 1985, Mr. Steven M. Richman fran November 27, 1985

through July 20, 1986, and the current Treasurer is Mr. Gary Matthews.

C. Scope

The audit included such tests as verification of total

reported receipts and disbursements, review of individual

transactions and required supporting documentationJ analysis of

Committee debts and obligationsJ and such other audit procedures

as deemed necessary under the circumstances.

II. Audit Findings and Recommendations

'f) A. Reporting of Expenditures

Section 434(b) (4) of Title 2 of the United States Code

states, in part, that each report shall contain, for the

reporting period and the calendar year, the total amount of all

disbursements.

Section 434(b) (5) of Title 2 of the United States Code

requires, in relevant part, that each report disclose the name

and address of each person to whom an expenditure in an aggregate

amount or value in excess of $200 'within the calendar year is

made by the reporting committee to meet a candidate or committee

operating expense, together with the date, amount, and purpose of

such operating expenditures. Additionally, each report shall

disclose the name and address 9f each person who receives a loan

repayment from the reporting committee during the reporting period, together with the date and amount of such loan repayment.

During the course ·of the auditors' review of Committee

disbursements, it was noted that 19 expenditures, totaling $16,333.35, were not reported. Additionally, two loan

repayments, totaling $626.93, were not reported.

It should be noted that it was the Canmittee's practice

to itemize all disbursements regardless of amount.

The Treasurer was apprised of these matters and agreed

to f il(! amendments as required.

I n response to the Interim Audi t Report, the Cornmi ttee

filed an amendment bn October 21, 1987, substanti ally disclosing these disbursements as part of the Canmi ttee' s 1986 Year End

.Report.

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