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II DERAL. ELECTION COM,\-1ISSION

REPORT OF TIlE AUDI'l' DIVISION

ON THE

AREA \'1IDF. Rl\IJIJY

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'Jlhe audit c0vcrcd the !'1(~r i,nll April 1, 1977 through

September 30, 1977, the final COV(~I'~l<le date of the most rC'cent

l-eport filed b~' the Committee at I:hL~ time of the audit. ,!/

nurinCJ the p(~l~iod, the commit:tc\(! 1""!lortec1 a beginninq cash on

hand balance of $ -0-, total reC(!j!1ts of $10,343.08, totul

expenditures of $10,343.08 and clo:;J,nq cash on hand b\11.J.nce of

$ -0-.

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1/ Tho Conl!~li tt.ce' s acth-ities \'lore tC'rmin.J.ted on September 30, ] ')71 .

'L'he C0mmittee re<Jisterec1 \.,.1. th the Federal Elcci:ion

Comrli~sion on ,June 28, 1977 a~ a joi nt', func1raisin~J Committee,

the proceeds of which were evenly divided by the principal

camp.:tiqn c0l11111i ttecs of. the IIonorubl e ,Tames R. Susser, Democrutic candidate for Uni ted Stutes Sen;.lte from Tcnne~see and

the llonoruble· 1:<1 ,Tones, nemocrCltic cClndidatc for nnited Stutes

House of Representatives from the ~('\'('nth Con~Jressional

nintrict of '('ennessec. '1'he Commi t tee maintained its hea<1C1uartcrf;

in nilan, 'J'L'nnessee.

']'his report is based on <tn audit of the Area \'i'ide

Hally, ("the Committee"), undertaken by the Audit Division

of the Feder.al Election Commission in accordance \-1i th the

Commission IS audit policy to determine \V'hether there has been

compliance with the provi~ions of the Federal Election Campaign

Act of 1971, as amended (lithe Act"). The audit was conducted

pursuant to Section 438(a) (8) of Title 2 of the united States

Code \'1hic11 directs the Commission to lIIal:e from time to time

audits and field investigations wit!l r~spect to reports and

st:at,C'menl:~ filed under the provi~inll:~ of the Act.

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J\. J~cceipt of _Cyrporate Contributi.ons

ll. ~~.~:l~_tor' s st<ltem9nt and Description of Findings

Scope

~'~ey Personnel

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Sl!ction 441lJ (.,) of '1'i tIc 2 of the United States Code

stub:::>, in part, thai. it is unJa\'lful for any corporation to ma~:e

a con t1~ ibu t.Lo!1 or C:-:I'''~IILliture in connection \'1i th any Federal

election to politic;ll office and unlawful for any candidate,

poli t Leal cammi t tee, or other person to knm.;ingly accept or

rr~c0i\'c any :;uch con tribu tions from a corporation.

i\ rcn: ie\-: 0 f tlle cOl\uni t tee's contribution records,

includinq copic~; of contributor checks, and verificZltion \\'.lth

th..:: ;l:~:)t'nlJdato Sl:cr"'.:l'll'-y of St.:l.te indicated that three (3)

cor;101-Litjon~.; mado three (3) contributions, totaling $220.00

to ::.llL' ,\1'-'::'-1 \-:il;O H.:llly committC'C' .

It .i~; the opinion of the Auditstaff, based UPO:1 e:·:amini:lt.:i.or~

or Lho 1'(,:.:'01' ts and s ta tomen ts fi led .:lnd the records presented,

that, CXCCi)t for the deficiencies noted below, the reports arid

statements of the Area Wide Rally fairly present the financial

clctivitics of the Committee for thc pElriod covered by the audit.

1"urtiH,r, c':~ccpt as noted below, no material problems in complyin,;

wi th tho Feuerul Election Campaiyn Act were disco\yered durinIJ tb'

course of the audit.

'rhe audit included such tests as verification of total

reported receipts and expenditures and individual transactions;

review of required supporting documentation and analysis of

Commi t b'<" c1':lbts and obligations; and such other aucli t procec1urc~;

uS <.k'L·m(~d necessary under the circumstances.

'l'he principal officers of the Committee during tho

period ~udjted were Mr. Herb Davis, Chairman and Mrs. Imogene

Harris, 'I'reasurer.

This audit report is based on documents and working

papers which support each of the factual statements. They

form part of the record upon which the Commission based its

decisions on the matters in the report and were available to

Commission~rs and appropriate staff for review.

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R(:COll::n1 'ndation

H:\sed upon the l\udit stafi"s recommendation, the IIonorable

,J'lml~:; E. Sasser's principal campai(.!n committee, Sasser For

SCll'II,~ Commit.tee, refunded its allocated portion of the corporate

con LI' i Lu tion LInd submi t ted copies 0 f the refund checks to the

i\tldjt. :;t.:lff as evidr;nce of the refunds.

'I'h'.' matter \·;as r('ferred to the Office of General Counnel

on ,Jlll11; 22, 1978 \·;here H.:ltter Under Review 625 was initiated.

On ,J Ill':" 27, 1978 the Commission found reason to believe th.:lt the

Sas~~,;:' For Senate Committeo and the corporate contributors had

vio1.:,L~~d section 441b(<1) of 'l'ith.' 2 of the Unitod States Code,

which :J!:ohibits the US8 of corI?or.l to funds in connection with

Fedl; ,-.11 elections.

(Ill :'1e:ptember 2B, 1978, I:he Offic;(~ of Gene;ral Counsel

r(~c(;:;.:l.,.:nd(~d th<1t the Cc:u;nission t<1ke no further action and close;

the :~ 1c' on this ::,atte:l- since the f<1cL:j of this case, supported

by :·;t::tLV::l~·,nts obt<1i:1(~c.! from each reslJr)nc:ent, indicated that no

knm'; 1.1:<; ·:iol.<1 tions oec\.! rrcd, <1ncl the rr.·cipio:1 ts acted promptly

to Po: :'und CO I: po r:.1 tc, mor:ies mis tuke:nl'/ <1Gccptr~d. Based upon

the n:~c:~::::l'lh!ation, the Conllnis::;ion (h.:termined on October 4, 1978

t.o :::1;:',) no fl:l.-thc,r i.ict:.~on on the m<1tl:~r. •
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HDERAL ELECTION COMMISSION

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ADDITIONAL INFURMATION REGARDING mIS ORGANIZATION

MAY BE I.DQ\TED IN A 00MPI.E1'ED CDMPLIANCE ACrION

.. FILE RELEASED BY THE mMISSION AND MADE PUBLIC IN

. mE PUBLIC RECDRDS OFFICE, FOR 'IHIS PARTICULAR

ORGANIZATION'S 00MPI.E1'ED CDMPLIANCE AcnON FILE

SIMPLY ASK FUR 'mE PRESS StM1ARY OF MJR iF {; J }: ,

mE PRESS sm+1ARY WIlL PROVIDE A BRIEF HIS'roRY OF

mE AND A smM\RY OF 'mE ACl'IONS TAKEN, IF PNY,

Audit if! /(.r