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RL87/110587

FEDERAL ELECTION COMMISSION

WASHINGTON, 0 C 20463

November 5, 1987

MEMORANDUM

tn

TO:

FROM:

SUBJECT:

FRED EILAND

CHIEF, PRESS OFFICE

ROBERT J. COSTA ~r .J

ASSISTANT STAFF D~~~ AUDIT DIVISION

PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT - CRYTS IN CONGRESS COMMITTEE

Attached please find a copy of the above mentioned Final

Audit Report which was approved by the Commission on October 28,

1987.

Informational copies of the Final Audit Report have been

received by all parties involved and the Final Report may be

released to the public.

Attachment as stated

cc: FEC Library

1W)

Office of General Counsel

Public Disclosure /

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• FEDERAL ELECTION COMMISSION

WASHINGTON, 0 C 204&3

RL87/l02287

A87-6

o

.....

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REPORT OF THE AUDTT DIVISION

ON

CRYTS IN CONGRESS COMMITTEE

I. Background

A. Overview

~his report is based on an audit of Cryts In Congress Committee (Wthe CommitteeW), undertaken by the Audit Division of

the Federal Election Commission in accordance with the provisions of the Federal Election Campaign Act of 1971, as amendea (Wthe

ActW). ~he audit was conducted pursuant to 2 U.S.C. 5 438(b)

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

internal review of reports filed by selected committees to

determine if the repor~s filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

The Committee registered with the Clerk of the Bouse of

Representatives on January 23, 1986 as the principal campaign committee of Wayne Cryts, Democratic candidate for the u.S. Bouse

of Representatives, representing the 8th district of Missouri. ~he Committee maintains its headquarters in Puxico, Missouri •

The audit covered the period from the Committee's

inception, January 1, 1986 through December 31, 1986. The

Committee reported an opening cash balance on January 1, 1986 of

$-0-; total receipts for the period of $310,876.06; total

disbursements for the period of $309,506.83; and a cash on hand

balance at December 31, 1986 of $1,369.23.

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

The Treasurer of the Committee during the period covered by the audit was Ms. Charlotte Sifford •

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C. Scope

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The audit included such tests as verification of total

reported receipts and disbursements 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. The disbursement

records vere not maintained in a manner which allowed testing by the auditors relative to the proper reporting of debts and

obligations.

II. Audit Finding and Recommendation

A. Misstatement of Financial Activity

Sections 434(b) (1),(2) and (4) of Title 2 of the United

States Code state in part, that each report shall disclose the

amount of cash on hand at the beginning of the reporting period and the total amount of all receipts and disbursements for the

reporting period and the calendar year.

The Audit staff performed a reconciliation between the '~ Committee's bank records and disclosure reports. Total reported receipts were understated by $5,963.60 and total reported disbursements were understated by a net amount of $6,189.60. As

a result of these understatements, the ending cash on hand

balance, as of December 31, 1986, was understated by a net amount

of $(226.00). These discrepancies resulted from the following:

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Receipts

0 Unreported contributions from $5,100.00

Political Committees

0 Unreported In-kind Contributions 728.27

0 Unexplained Difference 135.33

Total Unreported Receipts $5,963.60
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Disbursements

• Net underreporting of

disbursements $5,828.39

• Unreported I n-Itind 3,092.27

contributions

• .ath error. $ (504.35)

• Reported voided check (300.00)

0 Reported inter-account

transfer (850.00)

0 Unexplained Difference (1,076.71)

Total Net Disburaement Errors $6,189.60

The Committee did not make a statement regarding the

misstatement of financial activity.

In the interim audit report, the Audit staff

recommended that the Committee file a comprehensive amendment to

correct the misstatements noted above. On October 21, 1987, the

recommended amendment was filed.

Recommendation

The Audit staff recommends no further action •

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