AK006863

FEllER:\L ELECTIO' C()i\r\l\1ISSfON

TO:

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September 19, 1995

MEMORANDUM

RON M. HARRIS

PRESS OFFICER

PRESS OFFICE,

ROBERT J. COSTA, 16 J£p' .'! ':

ASSISTANT STAFp'X'dlitFTOR'

AUDIT DIVISION i

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON T"JIE

DEMOCRATIC EXECUTIVE COMIUTTEE OF FLORIDA

Attached please find a copy of the final audit report and related documents on the Democratic Bxecutive Committee

of Florida which was approved by the Cam.ission on september

11, 1995.

Informational copies of the report have been received by all parties involved and the report llay be released to the

public.

Attachment as stated

cc: Office of General Counsel

Office of Public Disclosure

Reports Analysis Division

FEC Library

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REPORT OF THE AUDIT DIVISION

ON

Democratic Executive

Committee ofFlorida

Approved Septanber 11,1995

FEDERAL ELECTION COMMISSION

999 E STREET, N.W.

WASHINGTON, D.C.
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TABLE OP COH'l'BHTS

DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA

Page

Executive Summary

Final Audit Report

Background

Findings

Transmittal to Committee

Chronology

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3

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5

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FEDERAL ELECTION COMMISSION

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FINAL AUDIT REPORT

ON

DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA

EXECUTIVE SUMMARY

The Democratic Executive Committee of Florida (the

Committee) registered with the United States Bouse of

Representatives on April 19, 1972 as the State Camaittee for the

Democratic Party of Florida.

The audit was conducted pursuant to 2 U.S.C. Section

438(b), which states that the Commission may conduct audits of

any political cOllDDittee whose reports fail to aeet the threshold

level of compliance set by the Commission.

The findings of the audit were presented to the Cam.ittee

at an exit conference held at the completion of fieldwork on

February 9, 1995 and later in an interia audit report. The

Committee'S response to those findings are ir~luded in this

final audit report.

The following is an overview of the fin.~inCJ8 contained in

the final audit report.

Shared Federal and Non-federal Activities - 11 CFR sections

106.S and l02.5{a). Cam.ittee reports, as initially filed, did

not properly disclose information related to its shared federal

and non-federal activities. For the period January 1, 1991

through August 28, 1992, the non-federal account generally paid

for shared activity (except for payroll transactions) and was

reimbursed by the federal account. Further, payroll

transactions (totaling $820,269) and other disbursements

(totaling $25,738) were not disclosed. During the course of the

audit, Committee officials stated that procedures have been

implemented to manage and disclose its shared activity in

accordance with 11 CFR Section 106.5(9)(1).

As a result of the manner in which the Comaittee handled

its shared activities, transfers between various federal and

non-federal accounts totaling $748,413 were not itemized as

required.

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Finally, expenditures from the Committee's non-federal

accounts totaling $62,591 appeared to have been made in

connection with federal elections.

In response to the interim audit report, the Committee

filed amended disclosure reports which materially corrected the

public record. Additionally, the Committee amended its reports

to recognize an outstanding debt owed to its non-federal account

for those expenditures made in connection with federal

elections.

Disclosure of Financial Activity, Receipts and Debts and

Obligations - 2 U.S.C. Sections 434(b)(l)-(4) and (8). Reported totals for receipts and disbursements were understated by

$797,942 and $843,379 respectively, for the audit period

covering calendar years 1991-92. Beginning and ending cash were

also misstated. Further, contributions from political action

committees totaling $10,000 and interest received totaling $3,967 were not itemized as required. Finally, debts and

obligations amounting to $31,929 had not been disclosed as

required.

In response to the interim audit report, the Committee

filed amended disclosure reports which materially corrected the

public record.

Subsequent to the Commission's consideration of the Pinal

Audit Report, the Committee amended its Statement of

Organization to reflect Mr. George E. Comerford as its

Treasurer.

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AK006833

FEDERAL ELECTIO~ CO/\.1fv\ISSION

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REPORT OF THE AUDIT DIVISION

ON

THE DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA

I. Background

A. Audit Authority

This report is based on an audit of the oemocratic

Executive Committee of Florida ("the Committee"), undertaken by

the Audit Division of the Federal Election Commission in

accordance with the Federal Election Campaign Act of 1971, as

amended (the Act). 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

subsection, the Commission shall perform an internal review of

reports filed by selected cOIIIIIlittees to determine if the reports

filed by a particular committee meet the threshold requirements

for substantial compliance with the Act.

B. Audit Coverage

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The audit covered the period from January 1, 1991,

through December 31, 1992. The Committee reported a beginning

cash balance on January 1, 1991 of $137,874; total receipts for

the period of $879,377; total disbursements ~o:. che period of

$1,016,546; and an ending cash balance of $705.!1

c. Committee Organization

The Committee registered with '!·.he United States House of

Representatives on April 19, 1972 and maintains its headquarters

!/ frne figures cited in this report were rounded to the

"t..4arest dollar.

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in Tallahassee, Florida. The Treasurer of record during the

period covered by the audit was Monnie Robison, formerly known as

Mennie Yungkans.!1

To manage its federal financial activity, the Committee

maintained four bank accounts. From these accounts the Coaaittee

made approx~ately 1700 disbursements. Approximately 1700

contributions (about $185,000) from individuals were received. In

addition, the Committee received 94 contributions (about $134,000)

frca other political committees as well as 126 transfers from its

non-federal committees (about $1,171,000) for shared expenses.ll

D. Audit Scope and Procedures

The audit covered the following general categories:

1. The receipt of contributions or loans in excess of

the statutory limitations~

The receipt of contributions froa prohibited

sources, such as those from corporations or labor

organizations;

Proper disclosure of contributions from

individuals, political committees and other

entities, to include the ite.ization of

contributions when required, as well as, the

ca.pleteness and accuracy of the infox.ation

disclosed (see Finding II.E.);

Proper disclosure of disbur88118Dt. including the

iteaization of disburse.ent. when required, a. well

as, the completeness and accuracy of the

information disclosed (see Finding II.A.);

Proper disclosure of COJmIlittee debts and

obligations (see Finding II.F.);

Accuracy of total reported receipts, disbursements

and cash balances as compared to Comaittee bank

records (see Finding II.D.)~

7. Adequate recordkeeping for Committee transactions;

!I According to a Committee representative, Ms. Robison served

as Treasurer until December 19, 1992; at which ttme George

Comerford became Treasurer. Mr. Comerford has been

represented to be the CODDDittee's current Treasurer. No amen~nts to the Committee'S Statement of Organization

have been filed to date.

~I As presented at Finding 11.0., the Committee's reports understated receipts and disbursements.

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8. Proper reporting and funding of activities

conducted jointly on behalf of federal and

non-federal elections and candidates (see Pindings

II.A., B., and C.); and

9. Other audit procedures that were deemed nec•••ary in the situation.

Unless specifically discussed below, no material

non-compliance with statutory or regulatory require.ents v•• detected. It should be noted that the Commission aay pursue further any of the matters discussed in this report in an

enforcement action.

II. Audit Finding_ and RecOlmllendations

A. Use of Punds from a Non-federal Account

Sections 102.S(a)(1){i) and (ii) of Title 11 of the Code

of Federal Regulations state, in part, that a political ca.mittee

that finances political activity in connection with both federal

and non-federal elections shall either: establish a separate federal account in a depository, such account shall be treated as

a separate federal political committee which shall ca.ply with the

requirements of the Act and all disbursHl8nts, contribationa,

expenditures and transfers by the cOBBittee in coDDflCt'.iQD with any

federal election shall be made frOll its federal 8CC01lDtJ or,

establish a political committee which shall receive only

contributions subject to the prohibitions and It.itatioaa of the

Act, regardless of whether such contributions are for us. in

connection with federal or non-federal elections.

Section 106.5(g)(1) of Title 11 of the Code of Pederal

Regulations provides that committees that bave ••tabli.bed

separate federal and non-federal accounts under 11 CPR 102.5 shall

pay the expenses of joint federal and non-federal activities as

follows: (i) pay the entire amount of an allocable expense from

its federal account and shall transfer funds fro. it. non-federal

account to its federal account solely to cover the non-federal

share of that allocable expense; or (ii) establish a aeparate allocation account into which funds from its federal and

non-federal accounts shall be deposited solely for the purpose of

paying the allocable expenses of joint federal and non-federal

activities.

Sections 434(b)(S)(A) and (C) of Title 2 of the United

States Code state, in part, that each report under this section

shall disclose the name and address of each person to vha. an

expenditure in an aggregate amount or value in excess of $200

within the calendar year is made by the reporting ca.aittee to

meet a committee operating expense, together with the date, amount

and purpose of such operating expenditure. Further, each report shall disclose the name and address of each affiliated comaittee

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to which a transfer is made by the reporting committee during the

reportinq period and, where the reporting committee is a politica

party committee, each transfer of funds by the reporting committee

to another political party committee, regardless of whether such

committees are affiliated, together with the date and amount of

such transfers.

Although 11 CFR Sl06.S(g)(1) requires joint expenditures

to be paid from a federal account, the Audit staff determined

that, except for payroll expenditures, the non-federal operating

account generally paid for shared activity and was reimbursed by

the federal account during the period January 1, 1991 through

August 28, 1992.!1 On August 6, 1992, the Committee established a

separate (federal) allocation account and implemented procedures

to comply with 11 CFR Sl06.5. Prior to August 6, 1992, the

Committee made transfers at regular intervals from its federal

account to its non-federal operating account to fund the federal

portion of shared expenses. The Audit staff's analysis indicates

that sufficient funds were transferred to the non-federal

operating account with respect to the federal share of joint

expenses. Further, adequate permissible funds appear to have been

deposited into the non-federal operating account to fund the

federal portion of shared expenses.

The Audit staff noted that during the audit period, the

Committee failed to itemize 10 transfers totaling $111,251

disbursed from its federal account to its non-federal accounts.

In addition, these transfers were not included in the Committee's

reported activity (see Finding 11.0.).

The Committee also maintained a separate payroll

allocation account for wage, salary, and payroll tax expenses.

The non-federal operating account, the non-federal house and

senate victory accounts, and the federal operating account made

regular transfers to the payroll account so that it could issue

paychecks and pay payroll taxes. These transfers to the payroll

account were not included in the Committee's reported activity

(see Finding II.D.). Further, the Committee failed to report, on

Schedules 8-4, all disbursements from its payroll account during

the period 1/1/91 through 6/30/92 which totaled $820,269. In

addition, the Audit staff identified fifteen petty cash

disbursements totaling $3,100 disbursed from its payroll account

that were not itemized as required.

Committee representatives advised the Audit staff during

the course of the audit that procedures have been ~plemented to

manage and disclose its shared activity in accordance with 11 CPR

Section 106.5(g)(1).

!/ It should be noted that during this period, the Committee's

federal operating account occasionally paid for shared

expenses and would subsequently be re~ursed from the

appropriate non-federal account.

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Finally, during 1992, the Committee failed to itealze

six disbursements to vendors totaling $25,738 disbursed fra. its

federal allocation account.

The Audit staff discussed this matter with the

Committee's representative at the exit conference and provided workpapers detailing the omissions noted above. The CODaittee'8

representative agreed to file appropriate amended disclosure

reports.

The interim audit report recommended that the Comaittee

demonstrate that it did not make disbursements from its

non-federal operating account for the purpose of financing federal

activity. Absent such a demonstration, the Committee could offer

any other comments and/or documentation it believed relevant to

this matter.

The interim audit report also recommended that the

COllUDittee file:

o Schedules 8-4 (for Line 21a) iteaizing all expenditures from its payroll account; to include the above noted

petty cash expenditures;

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Schedules 8-4 (for Line 21a) or Scbedules B (for Line

21b), as appropriate iteaizing the six diabura...nts to

vendors noted above;

Schedules B (for Line 21b) ite.izing all transfers from

the federal account to non-federal accounts, and

(Memo) Schedules 8-4 which detail all joint expenses disbursed fro. the non-federal account (to support the

transfers from the federal account to be reported on

Schedule B for Line 21b).

cIn response to the interia audit report, the Ca-ittee

filed Schedules B and Schedules 8-4 which .aterially disclosed

payroll transactions, petty cash expenditures, disbur....nts to

vendors and transfers from the federal account to the non-federal

account, as recommended above.

However, the Committee did not file memo Schedules 8-4

to support the transfers from the federal account. In the

narrative portion of its response, the Committee states there are

no Schedules 8-4 since "[d]ata from 1991 was lost due to ca.puter problems. In addition, documentation was not retained by prior

employees as to why transfers were made. We do not wish to assume

why these transfers were made; therefore an explanation cannot be

given at this time."

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B. Reporting of Transfers from Non-Federal to Federal Ac~ounts fnr Shared Activity (Schedule H-31

Sections 106.5(9)(1) and (3) of Title 11 of the Code

of Federal Regulations provide, in relevant part, that

committees that have established separate federal and

non-federal accounts under 11 CFR 102.5 shall report each

transfer of funds from its non-federal account to its federal

account or to its separate allocation account for the purpose of

paying such expenses.

The Audit staff reviewed Committee bank records to

identify all non-federal transfers received by the federal

account, the federal allocation account or the payroll allocation account. Based on our review, the Committee failed

to itemize 98 transfers from non-federal accounts totaling

$748,413, which are detailed below:

1 . Non-Federal Transfers to the Federal Operating

Account

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The Audit staff reviewed 23 transfers from

non-federal accounts to the Committee's federal operating

account, totaling $169,504. Seven of these transfers were from

the Committee's non-federal operating account, 15 transfers were

disbursed from the Committee'S non-federal house victory

account, and one transfer was received froa the C~ttee'8

non-federal senate victory account. The Committee failed to

itemize all 23 of the transfers on Schedule B-3.

2. Non-Federal Transfers to the Payroll Account

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The Audit staff reviewed 88 transfers to the

payroll account from the Committee'S non-federal accounts

totaling $740,261. Transfers received prior to July 30, 1992

were neither included in the CODIlittee'8 reported activity (see

Finding 11.0.), nor itemized on Schedules B-3.

Based on our review, it was deterained that the

Committee failed to itemize: 21 transfers totaling $278,805

received from the non-federal operating account; 29 transfers

totaling $222,279 received from the non-federal house victory

account; 23 transfers totaling $64,925 received from the

non-federal senate victory account; and one transfer in the

amount of $7,200 from an unidentified non-federal account.

Thus, 74 non-federal transfers totaling $573,209 were not

itemized on Schedules 8-3, as required.

Additionally, for the remaining 14 transfers

which had been itemized, the Committee incorrectly disclosed the

name of the account which was the source of the transfer on its

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Schedules 8-38 The Committee disclosed the name of the account

w:lich received the transfer, rather than the name of the

non-federal account that disbursed the moneys.

3. Non-Federal Transfers to the Allocation Account

The Audit staff reviewed 14 transfers totaling $137,088 received from the non-federal operating account during

the period August 6, 1992 through December 16, 1992. Of these

transfers, only one, in the amount of $5,700, was not itemized

as required on Schedule H-3. Of the 13 itemized transfers, the

committee incorrectly disclosed the source of the transfer as

the transferee account, rather than the transferor account, on

its Schedules H-3.

At the exit conference, the Audit staff provided the Committee's representative with schedules of the omissions

noted above. The Committee's representative agreed to file the

necessary amended disclosure reports.

The inter~ audit report recommended that the

Committee file Schedules B-3 to amend its reports to correctly disclose the transfers described above.

In response to the interim audit report, the

Committee filed Schedules H-3 which complied the Audit staff's

recoJlllll8ndation.

Expenditures in Connection with Federal Elections

Punded by the lion-Federal Account

Sections 102.5(8)(1)(i) and (ii) of Title 11 of the Code

of Federal Regulations state, in part, that a political cam.ittee

that finances political activity in connection with both federal

and non-federal elections shall either: establish a separate federal account in a depository, such account shall be treated as

a separate federal political committee which shall comply with the

requirements of the Act and all disbursements, contributions,

expenditures and transfers by the committee in connection with any

federal election shall be made from its federal account; or,

establish a political committee which shall receive contributions

subject to the prohibitions and l~itations of the Act, regardless of whether such contributions are for use in connection with

federal or non-federal elections.

Section 110.7(a) of Title 11 of the Code of Federal

Regulations states, in relevant part, that the national committee

of a political party may make expenditures in connection with the

general election campaign of any candidate for President of the

United States affiliated with the party. In addition, such

expenditures may be made through any desiqnated agent, including

State and subordinate party committees.

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As a result of our review of disbursements from the

Committee's non-federal accounts, the Audit staff identified 17

expenditures made from the non-federal operating account 1n

connection with federal elections totaling $62,591.

Based on the Committee's annotated documentation, three

of these expenditures, totaling $6,791, were made relative to

"Clinton/Gore" for telephone and consulting. Additionally, the

documentation for two of these disbursements indicated they were

"transition" related.

Of the remaining fourteen expenditures, four expendi~ures, totaling $9,500 were made to each of four authorized

candidate committees. Available documentation consisted of

canceled checks and expense authorization forms which note -GOTV"

as the purpose. However, disclosure reports filed by each of

these authorized committees disclose these payments as

contributions from the Florida Democratic Party.

The remaining ten expenditures included: payments to

vendors for polling, postage and printed materials made on behalf

of congressional candidates, payment of National Convention hotel

expenses and expenditures for the use of a rental car and beepers

at the National Convention by Senator Graham from Florida, an

incumbent candidate for the U.S. Senate in 1992.

The Committee's representative was ad'Tised of this

matter at the exit conference and was provided a schedule

detailing these expenditures.

In the inter~ audit report, the Audit staff rec~nded

that the Comaittee provide documentation demonstrating that

disbursements were not made from a non-federal account in

connection with federal elections. Evidence kl11l3itted vas to

include:

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documentation and/or an explanation detailing the

nature and purpose of transition expenses incurred on

behalf of Clinton-Gore and why they should not be

considered contributions to or expenditures on behalf

of a Presidential candidate;

documentation which itemizes all costs relative to the

National Convention hotel and associates these costs

with individuals;

documentation and/or an explanation of why Rational

Convention expenses incurred on behalf of federal

congressional candidate(s} should not be considered

contributions to or expenditures on behalf of the

candidate; and

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o any documentation and/or explanation of the nature of

"GOTV" payments to federal congressional candidates,

as well as payments to various vendors for

goods/services on behalf of other federal

congressional candidates demonstrating why these

should not be considered contributions to or

expenditures on behalf of the candidates.

Absent such a demonstration, the Audit staff

recommended that the Committee re~urse $62,691 to the

non-fec9ral account. The Audit staff further recommended that

the Committee file appropriate (memo) Schedules B (for Line 23)

to amend its disclosure reports to properly disclose these

expenditures.

The Committee's response stated that no documentation

could be found as to why prior employees made such transactions

and would not speculate nor assume why such expenditures were

made. The response also notes that the Committee will re~urse

the non-federal account for these expenditures over the next

twelve months so as not to deplete the federal account.

Committee reports have been amended to reflect this debt to the

non-federal account.

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D. Misstatement of Financial Activity

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Sections 434(b)(I), (2) and (4) of Title 2 of the

United States Code state, in relevant part, that each report

shall disclose the amount of cash on hand at the beginning of

each reporting period, the total amount of all receipts, and the

total amount of all disbursements for the period and calendar

year.

The Audit staff's reconciliation of the Committee'.

reported activity to its bank activity for the audit period revealed the following misstatement~:

1.

8. Beginning Cash~c~-~~d Balance

The Commit·e~ ~sported a beginning cash

balance at January 1, 1991 of S:J:,874. Utilizing bank records,

the Audit staff determined the correct beginning cash balance to

be $202,325. Therefore, the Committee'S beginning cash balance

was understated by a net amount of $64,451. The Committee did not

maintain workpapers, bank reconciliations or other records which

demonstrated how the amounts contained in its disclosure reports

were obtained. Absent such information, the Audit staff was

unable to identify the reason(s) for this misstatement.

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b. Receipts

The Committee reported total receipts of

$173,752 for 1991. Based on our analysis of C~ttee bank

records, the Audit staff determined that the Comaittee should have

reported total receipts of $589,222. Therefore, the Committee's

reported receipts were understated by a net a.ount of $415,470.

This understatement was the result of the following:

o transfers from non-federal accounts not

reported (see Finding II.B.) $399,760

$ 3,584

$ (3,681)

$415,471

$ 15,807

interest received and deposits not

reported (see Pinding II.E.)

reported receipts not supported by

Committee r~ords

o

o

, miscellaneous reconciling adju.~nt

Total (Net) Understatement

c. Disbursements

1,145

$ (81,833)

$ (21,685)

$ (2,630)

$

$ 533,694

$ 60,179

reported disbursements not supported

by Committee records and

voided checks

math errors

other disburse.ents not reported

disbursements reported twice

payroll disbursements not reported

(see Finding II.A.)

The COJIaittee reported total disbur....nts of .. $256,267 for 1991. Based on the Audit staff'. review of bank

recorcl8, it was determined that the Ca.Dittee should have reported

total disburseaents of $748,822. Therefore, the C~ttee's

reported disbur....nts were understated by • net ~UDt of

$492,555. This understat...nt resulted f~ the following:

transfers to non-federal accounts not

reported (see Finding II .A. )

• .....,

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•

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$ 492,555

, miscellaneous reconciling adju.~nt

Total (net) Understatement

$ 3,685

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d. Ending Cash-on-Hand Balance

The Committee reported an ending cash on hand

balance on December 31, 1991 of $55,359. The Audit staff

determined that this amount was overstated by a net amount of

$12,634. This overstatement was pr~rily due to the

misstatements noted above. The correct ending cash balance was

determined to be $42,725.

2. January 1, 1992 through December 31, 1992

8. Receipts

The Committee reported total receipts of

$705,626 for 1992. The Audit staff determined that, based upon

bank records, the Committee should have reported total receipts of

$1,088,097. Therefore, the Committee's receipts were understated

by a net amount of $382,471. This understatement resulted from

the following:

0 interest not reported

(see Finding II.E.2.) $ 520

0 transfers from non-federal accounts

not reported (see Pinding II.B.) $ 350,407

0 contributions not reported

(see Finding II.E.1.) $ 24,175

0 miscellaneous reconciling adjustment $ 7,369

Total Net Understatement $ 382,471

b. Disbursements

The Committee reported total disburs~nts

of $760,279 for 1992. The Audit staff's review of bank records

revealed that the Committee should have reported total

disbursements of $1,111,103. Therefore, the Committee's

reported disbursements were understated by $350,824. The

understatement resulted from the following:

o payroll disbursements not reported

(see Finding II.A.)

o transfers to non-federal accounts

not reported (see Finding II.A.)

o other disbursements not reported

(see Finding II.A.)

$ 286,576

$ 111,072

$ 28,957

o disbursement amount incorrectly reported $

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reported disbursements not supported

by Committee records

o miscellaneous reconciling adjustment $ (248)

Total (Net) Understatement $ 350,824

c.

c. Ending Cash-on-Hand Balance

The reported ending cash balance at December

31, 1992 of $706 was understated by $19,013. The correct ending cash balance was determined by the Audit staff to be $19,719.

This understatement resulted from the effects of the receipt and

disbursement misstatements noted above.

At the exit conference, the Audit staff

explained that the misstatements of financial activity were caused

primarily by the Committee's failure to disclose activity from its

payroll account, as well as its failure to report transfers

between its federal and non-federal accounts. Copies of the bank

reconciliations were provided to the Committee. The Committee's

representative agreed to file amended reports.

The interim audit report recommended that the

Committee file amended reports for calendar years 1991 and 1992 to

correct the misstatements of financial activity described above.

In response to the interim audit report, the

CODDIlittee filed SUJIIIIlary and Detailed SUJIIIIlary Pages for calendar

years 1991 and 1992 which materially corrected the ~sstatement of

financial activity.

E. Disclosure of Receipts

Section 434(b)(3)(B) and (D) of Title 2 of the United

States Code, states, in relevant part, that each report under this

section shall disclose the identification of each: political

committee which makes a contribution to the reporting committee

during the reporting period, together with the date and amount of

any such contribution: and each affiliated committee which makes a

transfer to the reporting committee during the reporting period

and, where the reporting committee is a political party committee,

each transfer of funds to the reporting committee, regardless of

whether such committees are affiliated, together with the date and

amount of such transfer.

Section 434(b)(3)(G) of Title 2 of the United States

Code states, in relevant part, that each report under this section

disclose the identification of each perso~ who provides any

interest to the reporting committee in an aggregate value or

amount in excess of $200.00 within the calendar year, together

with the date and amount of any such receipt.

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Section 431(13) of Title 2 of the United States Code

states that the term "identification" means: in the case of any

person, other than an individual, the full name and address of

such person.

The Audit staff's review of Committee receipt records

identified the following disclosure matters:

1. Contributions from Political Committees

'...uring fieldwork, the Audit staff reviewed 94

contributions r~~eived by the Committee from political action

committees, party committees, and other political committees,

totaling $133,533. Of these contributions, the Committee failed

to itemize two contributions totaling $10,000. One contribution

was from a political action committee for $5,000 and the other was

from an unregistered committee for $5,000. The Audit staff notes

that the contribution from the unregistered committee is excessive

in the amount of $4,OOO~ The Committee transferred, although

untimely, this excessive contribution to its non-federal operating

account in June, 1993.

The political action comm~ttee contribution was deposi~ed on December 31, 1991 and never reported. The

contribution from the unregistered committee, received on OCtober

26, 1992, was initially disclosed on the Committee'S 1992

Post-General Disclosure report. When the Committee subsequently

amended this report on July 7, 1993 the contribution had been

transferred to the Committee'S non-federal operating account and

it was not disclosed.

At the exit conference, the Audit staff discussed

this matter with the Committee's representative who agreed to file

amended reports.

2. Interest Receipts

During fieldwork, the Audit staff reviewed 25

interest receipts totaling $4,139 and noted that 23 of these

interest receipts, totaling $3,967, were required to be itemized.

Our review determined that the Committee did not itemize any of

these interest receipts on its disclosure reports.

In addition, the Audit staff became aware of a

certificate of deposit account held by the Committee during the

audit period. Records requested by the Audit staff relative to

this account were not available by the close of fieldwork.

At the exit conference, the Audit staff informed

the Committee of its failure to disclose interest receipts. The

Audit staff also requested that the Committee furnish records

regarding its certificate of deposit account. The Committee'S

representative agreed to provide the records.

Page 15, Approved 9/11/95
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The certificate of deposit records were received 0

Pebruary 27, 1995. After reviewing the records, the Audit staff

determined that the certificate of deposit account was • federal

account, for which the Committee had failed to report the interest

earned during 1991. This interest, when combined with the

interest from the Committee's other account, yielded total

interest earned of $6,916, of which $6,744 was not itemized as

required.

On February 28, 1995 the Committee was apprised of

the changes to this finding. The Committee's representative

agreed to file amended reports. Copies of schedules detailing the

interest receipts not itemized as required were faxed to the

Ca.mittee to assist its personnel in the amendment process.

The inter~ audit report recommended that the

Committee file Schedules A to amend its disclosure reports to

itemize the noted receipts.

In response to the interim audit report, the

Committee filed Schedules A which complied the Audit staff's

recommendation.

F. Disclosure of Debts and Obligations

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Section 434(b)(8) of Title 2 of the United States Code

states, in part, that each report under this section shall

disclose the amount and nature of outstanding debts and

obligations owed by or to such political committee.

Sections 104.11(a) and (b) of Title 11 of the Code of

Federal Regulations state, in part, that debts and obligations

owed by or to a political camaittee which remain outstanding shall

be continuously reported until extinguished. A debt or

obligation, the amount of which is over $500 shall be reported as

of the date on which the debt or obligation is incurred.

Reports filed during 1991 and 1992 did not disclose any debts owed to or by the COlBlittee. The Audit staff reviewed

operating expenditures for calendar years 1991 and 1992. saeed

upon our review, two debts owed by the Committee were identified

which had not been disclosed as required during calendar year

1992. One debt, which arose from legal services provided during

the period March through June, 1992, had an outstanding balance

that reached $28,519 during June, 1992. The other debt arose from

disputed amounts on a credit card bill totaling $3,110. No debts

existed as of December 31, 1992.

The Audit staff discussed these matters with the

Committee's representative at the exit conference and provided workpapers detailing the above noted debts. The Committee's

representative indicated amended disclosure reports would be

filed.

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The interill audit report rec~nded that the C018littee

amend its reports by filing Schedules D, which properly diaclose

the above noted debts.

In response to the interia audit report, the C~ittee

filed a Schedule D which materially complied the Audit staff's

recODBendation.

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Page 18, Approved 9/11/95
FEDERAL ELECTION COMtv1ISSION

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Septe.ber 12, 1995

Mr. George E. Comerford, Treasurer

Democratic Executive Cam-ittee of Florida

517 North Calhoun Street

Tallahassee, FL 32302

Dear Mr. Comerford:

Attached ple.s. find the Pinal Audit Report on the

Democratic Executive Ca..ittee of Plorida. Cam-ission

approved the report on Sept-.ber 11, 1995.

The C~i••ioft approved Pinal Audit. Report viII be placed

on the public record on sept-.ber 15, 1995. Sboald you have any

questions reg.rdi~~ the public reI.... of ~-zeport,-pl...e

contact the COIais.ioD'S Press Offica at. (202) 219-4155. Any

questions you have related to ..t.tera covered duriDCJ the audit

or in the report should be dir:ected to 8111 AD~. or Alex

Boniewicz of the Aud1t Div1.108 at (202) 219-3720 or toll free

at (800) 424-9530.

SiDeerely,

£Jo

Assistant Staff Director

Audit Division

Attachment as stated

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to

Page 20, Approved 9/11/95
CBROIfORLOGY

DEMOCRA'lIC BXECU'l'IVE COMKIi-rBB OP FLORIDA

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Audit Fieldwork

Interim Audit Report to

the CODDDittee

Response Received to the

Interim Audit Report

Pinal Audit Report Approved

1/11/95 - 2/10/95

6/30/95

8/9/95

9/11/95

·Page 21, App~ 9/11/95