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Public Record. •

'1'bia -.or..... _&'1188 to Ut'y iso ,.. tIaa~, • of

Getobel' " 1'7', tho audi~ ft'!JOrt:; £01' the follawiD'l

ca F t~tee .... baeD naeivod by all putioa iDvolveel

anct My 110 roloaaocl to tho publicI

Mastor., Mato... Pilot.K I·c_ionel'. Action PUDd

to,

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....,

suan:cr.
1. 1l:lC:k<11:0Un4

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I~·... 'litI I '"\\" \\\"'N.t"~.lh ........t

ftllllAi. Illl:llON COM.\ISSIC*

'!'!l' - C."o::tmlt.ll.·\.! r(."c.h~t.·~~r\.~J wit.h d1\.' U.S. nt'.m~.;o a~

!,~, .:. '~ .. ~k:l::':1 ti_"('S un 4\pri1 1~, 19;J, n'l'0rtinIJ th~~ Int.(·~· ;".1 tiOr.'l1

t'" f '.:~ ,~.l': i. ..~a of ~l_l£lt.C·l·tJ, l'l3t~n ,"ln~! I' i h)L~ i\::a it;J Ct..,:~~ .~: '''l'

ew,:.,:::":.,! inn. 'thC" Co:-.:.littt.·I' m'li:ll.ainu ita hcnll(.iuart·... :-:: in ~:' ,e.: ,." ,.:~, ::. \.; Y(lrk.

UPOk'1' Ut' 'r!lB AUDt,. DlVtSlo."t

"'Tim :.:'·,~;·n~It.a.;, .,\'1'1::-; .. I)UhrH 1'&:-JSI01tERS M."1'IO:J nr.::l

.1/ " ..':, ! tl~~db; .10 r.::~ 1"·c·.·.· 1ll;I·h,·:.t:,ti~':lll~· d~:': to tbe

Cr,:.:. ~. : ..,,'.; LIf.' nt·,' t.o .,,~,,~u ,-;'(.·1:' rc'port C.:lsh-.-,~-hand

:~:'. •r,&:.·~! .• :·., 1, J'~.:." (.~\.:~~ 1·01:h.:I.l_: 1..•• I~.!lmr:).

·!'h\..· mlflit covorcd th,~ pt!t:tnc1 from J01nU:lr~' 1, 11)15 (h:··.·~:',;:.. .1:::1.....'0, l')7:i, th\.., fin;,} ,·o·,,"ra,,'" dal.(! of t!l~

::If':: t 1',.. •. -:1 t. ",'tlOrt f i h'cl b::' t:ll' ('(':atl i t tel"! ~t tIl'" ti:.~·~ () ('

t!.c- .a::,Iit •

'1'hi8 l'Oport i8 basad on :til audit of tbo MaatnrB,

M4tt.'s , 1'11ots ItnDS101l0~8 ,\etlan "tlnd C·tho Caa1t.too·).

un,l,H.-tak,'·n by t.oo Audit Division or tho Federal Sloct1on Cn::~ia:Jicn in aC!(1ordancc with the: Conani.8ioat 8 ..it. !JQli~·

to J\.'t\l::::,illO wh"':!wr. t.h,--rn baa ba,.m ,-..,mul1anco wlU, th'3 t:t.·e·:L~Lm.; of th,~ I·...~u...·t·.d I·:lcctit.lll t·••mp~l~ln Act of 1971, au .-.r.i;·:~,;,·..l (-~.h~ i\(~t -) • ":11- :lwtit: W:I!; contluet('C! !'Ur8uant te :~...c::iCtn 433(:1) (8) ()! 'l'it.lu 2 of t:lw 1~llited Stat.es CoJ·'" wbicu

\.ih·~·~t3 t:~...: (~()l:ltlll:l~don tn Ul-"lkc fr~:;t tift'.o to tJr.e audits aRil rl..~.l j:~·..~~·ti'l.,'-Io:l~: with r\~••p'·'!;: til rOpOrts anJ st:lt:::~·,:,nl8

fi !o,.': un::nr t.h.' prc-vi:;i():l~; of til,' ;\~t.
-2-

"'is audit: r.·port: la balIOCI OIl doc_au and _1"1119

p_1pOrs whlch support ".K.'" of tIIIo f.ct...l flt:atfSOftt:S. !laDy

fona ~rt of tho l'Vcon' upon ..lala tho c..-.8.1oft ballOtl Ita d~JlJluns Oft t:ho ..th·rn In tIIIo I'GPOrt: lInel wero a·I.lllablt.· to

COIDI!Ifu:doners ancl apl.lr:uIJI"lato ataff for roview.

h. r., 'y Pcr8Oftn~1 --.. . '1'00 principal offiC0S"8 oC the· e:e-at tt(~O durl'ttJUllt

)1C"rln d iludltod 1lK're Wll11_ F. 1'1tzlt"llrlclc, "uainun frUM

J:anllilry 1, 1975 t:o NovGIIbor 2, '."" and .tolna B. Vlolcls,

c..1aainaan, fraaa NoYOllll.>ur 3, IrK tbmuqh .J1Iftf! 18, 1"8, Ra~

Soid:D4ft, 'l'rcasurer, fna Ja1lU!1' I, 1"5 to SoI'te-rnbt"'r 1', 1~'7

4nU l)iut.£.40 :4a~::iu, "1'oaulU'cr, frua ~~'~Lcmbur 14, 19';7 to

.luno 10, 1978.

'rho ;uhUt l1WI ..,i~~c1 SUl!b tlmts .an vcriricl.tioD .... to'·.tl rq·,;rt~.·d n'r.:(~iiJt.:; ,"md ":~l"~llditUl"QU lIt1U indivl\lui11 trmU:iwt it.n~",

rf":1 \'w of r'"'!~itti ~'('(1 BUn', \"t t nfJ dOC!111Qent.~t ioft and 4n.;llysln uf

'·cn~;it.tl~~~ d.·bb; .m,1 oh.1 i·I.et ions, :at,,1 sUf:h otht:'r ~tldlt tlr...·'·rlu1.·<.~~

aa di~'·'::lt'd 1l'~L"t.'~.H~.lI··{ un,",,·,· II&<' circuau;tanc(·s.

1t i~: lIw opinion u' tho Audit slaff, ba:w...l ul'on C'~::l!:lJ:1.1H on of lh(' rC'!,ur'~; u!1(l st~t('m(·t1t.3 ril,:~d ,m'l lht.! rc..'t'!OJ".t~l

..r\."~;cnb'cl, lh~lt, ,'xc,'!>l' f".· the- doficiencies no!:.pti L~low, '"btl

rt"port.l; .tnU a:l..lt t:'mnnt B ot I ho J.1c,stt"'ru, "tatcs , l'i101:.8 l'nIUJion('1.·~

ActJull "'ulld fo.lil"l·~· I'lo"Hl'ttt the-: fJni:lllcial :acliviti~8 of UK!

Co::::dtt(lO fOl~ th,' I""riotl (!o\'C'l"cd by the :audit. Further, CXC('l,t,

~u nott'li bl... tc~, 110 L't.el,·."j.ll problems in compl~'in(J with til" .·(-Il~'ral l';lcct ion Camr;.leln Act wcr..' discovored durin~, the caUl'S'"

of th,,~ audit.

A. (~p.m~d:l·:1J:td __.... ~-_ _. __4_._ 401.... _0Cor.,~itt:nc _ I e.I"\lnd~ -..... __

r.,"cthm 43:~(l,) of 'rit:l,~ 2, Unitt.·J ~t~t,·tl (~odt!, st.lh-il,

in l'~lC'\':mt i'~61·t, th.1!. ;.11. fun,10 of a l'olitica1 cucmith'l.' aJhall

1'0 st."ql'l.'·.I~lh·d 1"'0::1, •.:ad ....../ not ~! cocunillfJlc41 with, any IJOrnon.:ll funcl~ of off!c-\"l't;, r~4'::ll"'r:;, or at4~(1C.i~b~s of a:mch commit:b!c.
-3-

J':: a r~sult or our r.·;·licw of COr.Jr.Iittcu diuc:loasure !'~!")l·ta . all.I t~:.;punultur·"" ."u(."Ortl.;, va dotor::linc~ th:at thc

i:l.•::.~-.i.tt,.··! 1Il.I(iu :an oX!J(~nl,iitur~ of $.0,000 on April 10, 1976,

to :tr. JLim ~. 1i3ro1ci, Cur.unlttnu Counsel. ,~c wt!re If.fo.,u~l

l:~· ~·110. lI;u·oIJ that t'''''.) $·IO,or,1) •.....1:' 1ntcn"kd to cstabll:;!l 0\

m·,·!c:J"~ll (.".,mml U:uo savin';:; ...t;~:·.qnt for fUlurf' l~(Jlll

I!enH n·.·C,,(~it·:~. Ho-....ovor, t.l1i:: dC'l.!OUnt waal not: catabliul,,·d t::~til .Ju::,~ 2, 1976, .:.nd th.:.- i:,:;!.•·umcnt. uO('d to opcn tht' ..lc~:ount

W.:4;; .:l ch\Jc!: dra':A."n on 'tn oacc:cur.'- nf Mr. llaro1d·s.

:~nbs\~~aont tt) t.he cl'.J~Q Qr fieldwork, in A telephon~

(~Q:l·:t...:l·oJ;lt"i()n ~t,.. narcl.l con~;'r:::f'd that tho 1ntormedla-to acc:cunt.

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~) Our r'!':inw of l·o:nmittt·u records nnd uiuc'·:l9uro t'~!porta for tJ;.· P~!·t(J~l ,\pril 1 thrt)tI';h June .10, 19;6, rC O

M41cc!

that tho ("nTl'lld.tt\~o lnc()....."ctly r.!po.:t.....\,l two (2) lnt~:·-biUlk

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,·Il.~--, ~:'.: i1'< ILl'" ,~..·.~r 1,1.)' . ,. !~;.·.~l!· : ,~:. to :'f~:: 1-/ .,:,", :·,~.'.,t'

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t~, ~·.:d aat i.~ :.';\~~. "~":

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I'.i /'.:' ci 1. 't, J ~';", t !l',' C",;..:.: itt· . ,!t.; ··..l::· :-~~ .. :~ ::l:: •. ," •.,,:! !".:.'" (.. ~' .t~;~ r'·d.·~,:~ "... '

.~:;:.~ " ;.~ !;.: ':'1" Of .:: '\'1:: :'~,' '•.'.:! .;: •t ..

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:;.:(~l f 'tit .,J2 (d) u r '1' i t 1<! 2 n f th·: l:nl. t cd ~1....t~1J

Co':'! ~;lat..",~ Ul.l1 II nh.• 11 be t.!w dll";' 0:' l!~.: tr~"lBur(!r Lt'

£"1\ to. i n 0111.:1 l;, '1'10 •• l"(:'CciI''''d L U " :.'.1: in~j t.h:.:: p.:lrl!C"'1I1an;,

ro:' (.· ..·.·l·~· ,'·;p,·u·!!' nr(' m.It!.· 11'/ n,' on ." hall of "' politlc.a1

(;(\:mni.U.·.... in ('~.:".,':t;.; of ~ltlO in ~t1:.0UII', .,:tll ror. Llnv tu&ch

(\;':j" ud i l.t:Ct' in •• )c:.sC'r .n ,')1.mt., 1 r '.h·· ..1·:lr·'''';.'1tc .3U10Ullt "f

Sll(!h ,,:.;::, ':llatU!','U to th.~ S:U::(' l)crsun durIn'; a c:alcnd...r Y".')r

C::~'·,:"l~; 1~O. :~"ction 102.9 (c) (·n uf 'I'i 11·.' 11, Co,",," of .·rd....r:ll

W";ul "_~.r··;;l, uti"";! "h.lt: \·:'1'.'1~.'l r'(~t'ipl": 1;111 f~ not aV.ll1:ibl.',. lil\~ L!··...·,1;.;~4 .. .. ,. 1•••,-.. 1-:'-4."i· (i) l:.... • 4...·,1~!\.; .• t l~·.: (;;._ .~:~ ...:.':\4;i:l~ 1)..4~·::1C:lt..i

of UK' !..Ut, ,lU,i (Ii) th,~ hIll, lr:'"ol"~l! OJ' r.th\1r cOllt.-:mpQl:'anoc";;.

ti·":·.')l"i'l:l !u;:: of 1;.!11' I '·,l:l:·.t,,~ti(~n :;up!Jllcd ~f.) t:~l' Ccr.u:dttc~ b~· thn

l":·-~·/·~·· \..r":lt:ttn~.;~.= t 11'-' r'\'i11t r;.',: i .1fct";:l"lli·~.I=1.
1". ~! :-. ':- ~., !~ • ~"':'.:

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. ,':.·t :.l '.. ;.~ t •.• tt ••.... :--.,!...... ,!.

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t:. _____ It ,.:~t! •:~ .•I it," of' I::;!:on(ll • L tur....••• :;

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1. 'i'!.·· l·("':·~:i· ~_. l- \~('11.;.i.:;t.,~:"".·~1·.: fi 1,-\,& 1'':8 ,1lt;t.:l(1~·~~··\..·

~:. :.• ~; ~' ~.:.,: \Z~ 1.fl :' :.~!;.' If:-.. L.~·~· ~r··-\.·l·,·l!(,n ••:l~l .~\'-L~·/

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(1:'1 .J't~';' '., l'n", t:~·:· CI)::'!l1!.t::.....; fih',i ~ui'Pl.··:~(·!lt~H·y

~;:-t..':~ ..::·:d1t:; to it·:: ,atbt:ti::;;j(.; ()~ :,t:l'z' 17, r.~:lt~~l"ially l.i~(·loflln.,1

t!l(. j~ ...:.. ~; \·it\.'l1 ...I.e···ll'.

~':,"' r·.;cc::,::~,."r,~tt'(; in O~'l· ~,~:,.1it.. f~:..~!in\:n l(-t.t~r. that. tlt~l

(·u...r.•.i~t·" in~1,: .•: in co:..; ~·.;,:-.en:~i'.·,' .,:·.··~.:~:· ..:lls :or th,~ ~'.::ar:: l~.·:j

l::l:'c:: :1 1'):'~ t ::.~ nl:w (ft) ·,':·:rv:l\!iLUl·.·:; .:: ::,. :~ •.'.l aM l·\.!t!uircol. t';t~

.ll~~,) c"et.~=:::..~,·:~~:~,l IJl:lt. tll'- t~~r!',-)~~4.' f():· t;~:· 16 t ...··::'-:.·l~(:ittlr· ...!8

r'ot .,~ J r'!1~~,! .1:.:-e'."\J J~' l11~t lIt!.,::.: <...':1 t!1,-~ Cl'::·.!"'~" ·L,,- ':1111':('! :t.en'~~~,"::-ilcnt~.

•'ta' ~""':i,'\oJ "l~~n (!!~h::lo",~,"J t.h.ii,;. the Co:t:mlttcc dht n..:tt

:..~t~~·:· tIp i'':.lt'l O~t· 0:' 1ft i~··:::i;:.~.l p:·:t·'!l:littHrf:S h;tali~l~' $9.50).: • ... '.:~ in,: t!:·.· y, ,t:-;; l't7';, ]')';7, ,1nJ t','iB.

;;in..:t..' l:l\-' l~.:..Ulli_l..t(llf' !-:~!~; C:)lt.! li.t:'(! •..:i!':l C)t:~· rt··(iut..'llt in all :..• t~· ';'.1 .ll r·.'.·:.. ··!.!t.;~, :1" :·,:,·~·:~t .~ :,,·t .1C):1 i:.~ ~·t·t.·{): ..:.:·_·%l'tC\.t.

(,ur r(~vh:w or Cf):"::~lttoc' f." ,'unl:'l rcv~alcd that nine! (g.)

(!:-:j>.'r.dit.u}",·:~ (·1.84', of Ul',: total nu:td.Jt!I.· of itcmizable cXJX'lldlt~!"

c&'1l!h o"HI·,:.;.:,!..!n., in "XCe:h. of $100 W'.:·l·'" not itcmizo4 OIl tllo Comr.~itlpc·;; llis.-:losur" rf'Fc~tn for t.b,~ poriod auc11ted ,'i·/o (5\

(,x!"'n~ULur":1 flurin" 197f., thr('(' (3) during 1976, aacl 0Ikl (ll d~1"l

197';). "h,':~.:- c:-:p,,·nditm'.·;; tot ..lud $11,821.64 arad represofttC-'4

4.(17 . of th\~ to,:.,t doll.ll· valn.· of itt ::.t~ab10 exponditurea•

~~.·d.t(,!, .n.Hb) (9) and (10) of 'l.'ill.:· 2 of t!w united

;~t~,~ ,.;; t~C'd.· n."1'1i .'·~S that t::u:h r(,pol't dl!sc::1oso lho l(h~ntlflcaticn

uf p,ach 1.",~r':~"u ,,, whom cxp(~ndlture's ".'-:0 ~"C'n mml,., in an a<.JtJr\.!:!~.t

\'" 1u,' in'':.:' '''::, I): SIOO card th~ .11,'0""I, date, and put"pou." or

ouch •.,.:, ....:.41 i I ur.!~;.
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2. O-.:r t~"vh~ ..... of' CO:=li ttC'-l r~cords lind L11aclasurQ

r\.'1-,orta l"(!voal..:~! th.ll th.! e(j:il:i,lttoo did not ~port a dc'ht. in th.. .u::ount of $376.f,.'). 1t W.1U notod t&"lt un in\Oo"-':c d:\tt~~1 ~l61rch 1.

197"1 w."\;; not Pdf.! uul i1 .:.di' 2~i, 1971. Thl~ (ti'ttt ::h.-,uJd h<l';n bt~t'n r(:purtt"l1 .at. th'l t l.t:·,- of t:hQ tr:mn.lction, itS l°\.'clulr~d !:~'

11 Cl·t~ 104.8(11).

3. OUr r· ~'!h-...z o! the COJfo!!1it tOl!' tJ expend! t ures

,H:;l!loucd II check writ.b·n on I\U(;USt 28, 1'76, p~j·a1.>J to ·c.,:~h· in tho il1r.o~n" of. ~':1, 500, whi<"h W:lS nc~ \l~'wll f'o~ l~tt:·

C~l•. ~1 "Ul~l;osc.. SuL••'~·~iU.,·:.L il. it•.: ,·'i .;~.(}·~~d t:.~~ t!~~ r't:~;':Q£~a

f(HO, ..111,,11 tho fun,ls w"~r\' u::-.1, l·c·t:~\btU·.~.:-munt of Cmn::itt~

'i'!'ll::Ld' c:-:P(::'1g(~3, \1,'\O:'~~ i! _.: j;·:.·.1 on th·· Caromi ttl:'~' n oiscloF:~~'_:::

r,';;lJlol:;. 'l'h0 Co:,::.ti!:t ':l' ~:.:,: ",:':i.~l"t.l o' tho rC·:Iuir·~=IF~:~t:.J of

2 l;.S.'·. ·!:!·l (:l) an,; j 1 ,':.':: 102.10 l·<.!'~~i.;,·;.lhn c.l,-~b \J:'::-"~~lt~:".~~

i:l \!:.:,-.,"~~~.; of ::101) :-,.:.:: :,1,·· .i t(, !:·~tl:" '::1~h !~tl1·1 C~t.'fl.

4. OUt- l·'''~·!t'~': .,:- c,.:':::~::i tf.·t.~ 1,~.n': rt"~(.;r~lJ .1!ld 8ta': .. ~::'c:,I .. ~, ....,!-·;.U,i;:.ltioll !.'::\.,:':L.!\~.; ~·:l:~t t".·:' (:!) :-·.:;;,,::itf.)ci .. n ";\"l~" net

lit..,·l\.·~~, -:, 41:t ''''t~' :~:l'l":' ,I:: t;:~- ,., :~::li=:"·>t":·:; :il(t·_·~~~~:,t ()f

t.;" :-..1:1;.::lLlt.i~':~. ~···,;)~;""Z~:";:· t·~) • ~\.~\~ ••~.)~...!:., t:!1t _' t·~~:...... lt~,,·~ COtl!t~;·!l

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C~~('t;\',-l ~:\ ~;t'~: .. '·.~:::!:' of : .'., ,\. 'i':., t:L,:.::.~':'~.t·~·." ,..:... ~; .i.:'l:·(~~·~:.,;r:1 o~· '..:-._?

!,,:·:·t .i:l,"11t r,"'\~~11:: -:.:-:It".S ,1° ;! t:.::.\.~ • .;:~ {::) (I)).