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December 13, 1993

MEMORANDUM

TO:

FROM:

FRED EILAND

CHIEF, PRESS OFFICE

ROBERT J. COSTA

ASSISTANT STAFF DIRECTOR

AUDIT DIVISION

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON

FRANK RIGGS FOR CONGRESS '

Attached please find a copy of the final audit report on

Frank._ Rig.gsfor Congress which was approved by the Commission

on November 30,' 19~3.

Informational copies of the report have been received by

all parties involved and the report may be released to the

public.

Attachment as stated

cc: Office of General Counsel

Office of Public Disclosure

Reports Analysis Division

FEe Library
FEDERAL ELECTION CO~t"1fSSION

REPORT or THE AUDIT DIVISION

ON

'RANK RIGGS FOR CONGRESS

MW004936

A91-17

I. Background

A. Overview

This report is based on an audit of Frank Ri99S for

Congre.s (the Coaaitt.e), undertaken by the Audit Division of the

rederal Blection Co..i ••ion in accordance with the provisions of

the rederal Ilection C.apaign Act of 1971, aa a.ended (the Act). ~b.-audit wa._~onduct.d pursuant to ••ction 438(b) of Title 2 of

the United Stat••---eOd.---wblch--ata-t••-j - in -part# tha_t ~h. Co..is.ion

aay conduct audita and field inve.tigations of any politI-cal

co.-itt•• required to file a report under sectton 434 of this

title. Prior to conducting any audit under thia section, the

Coaai.sion shall pertora an internal review of reports €iled by

selected coaaitt••• to deter.ine if the reporta filed by a

particular coaaitt•• a.et the threshold requireaents for

substantial co.pliance with the Act.

The Co..itt•• registered with the Office of the Clerk

United States Bou•• of aepresentative. on Auqu~t 2: 1989. and

aaintains its headquarters in windlor, California. The audit

covered the period June 1, 1989 to neceaber 31, 1990. The

Coaaitt.e reported an opening cash balance on June 1, 1989 of

$-0-; total receipt. of $251,746.99; total disbursements of

$251,665.95; and, a ealh balance on Deceaber 31, 1990 of

$6,677.04.!1

This report is based on documents and workpapers

supportinq each of its factual statements. The documents a~d

workpapers form part of the record upon which the Commission based

its decisions on the matters in this report, and were avai:a~~e ::

Commissioners and appropriate staff for review.

!I A difference of $596 is due to math errors made by the

Committee ..
2

B. Key Perlonnel

Trealurers of the Comaitt•• during the audit period vera

Winifred P. Ri99. fro. inception to February 4, 1990, and Michael

J. Langston from February 5, 1990 to Oec.aber 31, 1990. The

current Treasurer 1s Daniel J. Christen••n.

c. Scope

Th. audit included such t.st. a. verification of total

reported receipts, disbursem.nts and individual tranaactions:

review ot required lupportin9 docu••ntation; analysis of debts and

obligations; review of contribution Ii.it.tion.; and other audit

procedure. d••••d nec•••ary under the clrcu••tanc••; except, due

to the lack of intoraation relative to the receipt of loans and

certain in-kind contributions, the Audit Itaff'. review of

co.pli.nee with the Ii.itationa and prohibitions on contributions

vas li.ited.

II. Audit Finding_ and Reco..endationa

A. It••ization of Disburse••nt.

Section 434(b)(S)(A) of Titl. 2 of the United- States

Code states that each report shall disclos. the na•• and address

of each per.on to wboa an expenditure in an aggregate a.aunt or

value in exc••• of $200 within the calendar year is aad. by the

reporting co.-itt.e to m••t a candidate or coaaitt•• operating

expen••, together with the date, a.aunt, and purpose of such

operating expenditure.

Our review of disburse.ents vaa conducted on a sample

basis. The results of our testing indicated a aaterial number of

di.bur••••nt. requiring it••ization were not 1t••ized on the

Co..itt••'. disclosure reportl. It should b. noted that during audit fieldwork the Coaaitt•• filed •••nded reporta. Based on our

reviev, the ••end••nta corrected the errors noted.

Reco...ndation 11

The Audit staff recommends no further action on this matter.

B. Matters Reterred to the Office of General Counsel

Certain matters noted during the course of the a~d~~

were referred to the Commisslon's Office of General Counsel.