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FEDERAL ELECTION COMMISSION

1.US K SIiUll N.W.

W,\SUING10N.U.C. 2n46J

REPORT OF THE AUDIT DIVISION

ON THE . LYNN GREER FOR CONGRESS COMMITTEE

I. Background

A. Overview

This report is based upon an audit of the lynn Greer

for Congress Committee (lithe Committee ll) undertaken by the Audit

Division of the Federal Election Commission 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 (lithe Act ll ). The audit \Alas conducted

pursuant to Section 438(a)(8) of Title 2, 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 Federal Election

Commission on March 25, 1976, in support of Mr. Lynn Greer,

Candidate for the Office of U.S. Representative from the 5th

Congressional District of Alabama. The Committee maintained its

headquarters in Rogersville, Alabama.

. The audit covered the period March 5, 1976, the inception date of the Committee, through May 24, 1976, the final coverage date of the termination report filed by the Committee. The Committee reported a beginning cash balance at March 5. 1976, of $-0-,

total receipts for the period of $22,735.50, total expenditures for

the period of $22,735.50" and a closing cash balance at May 24,

1976, of $-0-. During this period the Candidate reported receipts

of $850.00 and expenditures of $850.00.

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 this report and were available to Commissioners and

appropriate staff for review •

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• B. Key Personnel

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. The principal officers of the Committee during the

period covered by the audit were Ms. Shirley Clanton, Chairwoman,

and Mr. Willard Shelton, Treasurer.

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c. Scope

The audit included such tests as verification of

reported receipts and expenditures and individual transactions;

review of required supporting documentation; analysis of Committee

debts and obligations; and, such other audit procedures as deemed

necessary under the circumstances.

II. Auditor's Statement and Description of FindinQs

It is the opinion of the Audit staff, based upon examination

of the reports and statements filed and the records presented, that, except for the deficiencies noted below, the reports and

statements of the Lynn Greer for Congress Committee fairly present the financial activities of the Committee for the period covered

by the audit. Further, except as noted below, no material problems in complying with the Federal Election Campaign Act were discovered

during the course of the audit.

A. Contribution in the Name of Another

Section 441f of Title 2 of the United States Code

states in part that no person shall make a contribution in the

name of another person.

Our examination of the Committee's contribution records

revealed that the Candidate contributed $3,900.00 from April 17

to May 1, 1976, and the contributions were reported as being given by six (6) different contributors. The Candidate stated the

individuals listed as contributing the $3,900.00 had performed volunteer services for the approximate value of the reported contri bution. He fu rthe r sta ted he. had i nq ui red of the Comm; ssi on

as to how to report the services and was instructed to report the

services in the manner described. When we inquired as to who the

Candidate spoke with at the Commission, he was unable to identify the person •

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We requested the Committee to amend their report to

properly reflect the contribution made by the Candidate and to

delete the value of volunteer services provided by the individuals

since such services are not viewed as contributions under Section

431(e)(S)(A) of Title 2, United States Code. The Committee filed

the requested amendment on October 18, 1977.

Recommendation

We recommend the Commission take no further action on this

matter.

B. Contribution-in-kind

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

in part requires the Committee to disclose the name and mailing address along with the occupation and principal place of business

of each person who has made one or more contributions aggregating in excess of $100 to the committee or the candidate within a

calendar year.

Our examination of the Committee's records revealed

that the Committee had received from an individual a contributionin-kind for newspaper ads in the amount of $354.30 on April 30,

1976. However~ the Committee did not report the receipt of the

contribution-in-kind. We requested the Committee to amend their

reports to reflect the contribution-in-kind and they filed the

requested amendment on October 18, 1977, disclosing the information.

Recommendation

We recommend the Commission take no further action on this

matter.

c. Inappropriate Attribution of Contributions

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

Code in part requires the Committee to disclose the name and

mailing add)~css along with the occupation and principal place of business of each person who has made one or more contributions

aggregating in excess of $100 to the committee or candidate within

a calendar year •

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Our examination of the Committee's contribution records

revealed that the Committee's Treasurer had made contributions to

the Committee totaling $1,177.90 while the reports disclosed the

Treasurer's aggregate contributions to be $1,000. When we pointed ~ut to the Committee officials that the contributions exceed the

$1,000 limitation, they indicated two (2) of the contributions

totaling $177.90 were made by the Treasurer's spouse. Further,

the Committee had not itemized the two (2) contributions in its

disclosure reports. At our request, the Committee provided a

written statement from the Treasurer's spouse stating the two

(2) contributions were made by the Treasurer on her behalf, and

the Committee filed an amendment to its reports disclosing the

spouse as the contributor.

Recommendation

We recommend the Commission take no further action on this

matter.

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FEDERAL ELECTION COMMISSION

lUI) K 51 REt1 N.W.

WASHINC10N.D.C. 204&3 January 23, 1978

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Mr. Lynn Greer

P. O. Box 279

Rogersville, Alabama 35652

Dear Mr. Greer:

Enclosed for your information is a copy of the final

audit report of the Lynn Greer for Conqress Committee which

was approved by the Commission on Dece~ber 22, 1977.

As of this date, all audit reports pertaining to the

random audits conducted within your District have not yet been approved by the Commission. However, while Commission

policy regarding the public release of Conqressional random

audit reports is to issue the reports of all audits conducted

within the District as a full District release, the policy

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urther provides for the public issuance of an audit report ~hich has been approved by the Commission for more than

thirty days. Therefore, upon notice by return receipt that

your informational copy of the report has been received

(within approximately five days), it will be issued publicly by the Commission as a partial District release.

Should you have questions regarding the public release

of these audit reports, please contact Mr. Oavid Fiske of

the Commission's Press Office at (202) 523-4065 or toll free

at (800) 424-9530. Any questions you may yet have related

to matters covered during the audit or in the audit report should be directed to Mr. Jim Nycu~ of the Audit Oivision at

(202) 523-4155 or at the above toll free number.

Sincerely,

As'""'tf'>oar2.000~ Assistant Staff nirector

for the Audit ~ivision

Enclosure as stated

CERTIFIED MAIL: R~.IUR~~, RECEIPT REQUESTED

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