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REPORT OF THE AUDIT DIVISION

ON TilE

IIEPFOR 0 FOR CON (11~ Esse0r·B·' 1TTEE

A• 0vcr' 'J ; e\'/

,. h ; 5 r p0 r t ; 5 b (l St'! don (j n au d ; t 0 f the Hepf 0 l' d

f 0 t' Con ~j res r. () mm ; ttl' (~ (t h (~ Co lidn itt r~.~) lJ nd(: r t a ken by the

J\ udi t D'j vis; 0 n 0 f t h Ffa d (~j' fi 1 [ , (~C t ; an r. [J rol :~l iss; 0 n ; n ace () r dan c (~

\'/ i t h the r. () rn Poi ; 5 5 ion I S It lJ di t pol; c.y t 0 detc r:~; ne \'J hc the r the t' (~

has b l~ (' ncoI:': p, i tl nee \'1 i t h the r '" (J 'J ; ; 0 n ~. 0 f the Fed C" 1'" a1 F.l {: C t 'j 0 n

C IIIPi'l ; n f\ c t 0 f 19 71, as ur.1 c: ndfI d (t he i\ c t ) . The il ud; t \'1 is

con d1I C l (~ d PU 1" S UII n t t 0 ~.; e c t ion 4 3B(II ) ( g) 0 f T; t 1e 2 0 f the Unit ed

St ~'~ t c C() dC \'i hie h di r' c c t the COin r1 iss; 0 n tom11 kef r' 0 m t i rn e to

i ; 1:1 C i\ lJ d its 11 nd f"j e1d 'i nvcst i qJ t ion s \\'; t h l' e 5 pee t tor C p(I r t and

s tat cine n t s f i 1edun del' t hG P1'" 0 vis ion 0 f the J-\ ct.

The COIl:m; t t 0. •• l' (I 0 ; s t c r L' d ','; i t h t h t.~ F(~ de" J 1 f.1 cr. t i () 11

C0 II~ mi S 'i 0 non \.1 l\ nUll t'" 'I -; 10 "l G, ; n SUP;) 0 '''' t 0 f H. J 0 e pI·, II e p for d ,

Cund -j dc1 t e f 0 '" the 0 f fie C' 0 f U. S. P. ep r' eS tJ 11 t j t ; v c f )' um hc 17t h

COl 19 l' (~ ssion J 1 L' i ~; t r' i c t 0 f r P. nn$'y 1 Vtl n'j () • T11 ceot:1in itt ee ii1 tl i nt 11 ins

its he adq UJ 1" t e \' Sill lLl r r i s bu)" ~1, Pen nsy 1vun; 11 •

The a ud i teo\' l \ " e ct the p C' rio d f '''' 0 :~1 J J nU ul"Y 7, 1976 ,

the ; nee p t ; 0 n dII t (~ 0f tilt C0 l~nn itt (~ e t h l" 0 tJ ~1 h J unc 30, , 977 ,

the f ; nII 1 C0 v er .) ~J (~ da t \\ 0 f 1. h C' 1 t est rep 0 )" t f ; 1 ed u t the t i 1'1 e

oft hc a lJ d it. Til p Co liIlll itt (~i~ r t'~ po r ted J b(~g inn; n9 c a $ h ba 1J nee

on J J nlJ iU" .y 1, 1976 0 f ~I - (1 -, tot i) 1 f' ec l~ 'i p t s f 0 l' the p c~ rio d 0 f

$91 ,S G2 . 20, tot ~l 1 e >: p (~ 11 d i t u'''' [\ S f 0 t the pt' l' i 0 d 0 f g1 , 731 • 4 3 ,

and a closin~ cash ballln":G llt June 30, 1977 of $130.77.

This aud; t l' CP() l'tis bII sed 0 n d() C \J mp nt sand "J (I \" kin <J

. Ptl pel's \'/ h; c h sup pOl" t c: il Ch 0 f t h(\ f actu,1 1 S1.: J t Cflll~ n t s • The y f 0 ~";:1

pn 1" t 0 f the '" (~ CO}'" d u po n \,,' hie h the C0 '~i ~l i s c; i r. n b() S e cj its ci ec i ion :,

on the I',at.tl~)"~' in tile r(~po,.. t llnd \','~r'~ a\'~ilJble to Co!;~mi~~iorh:t"S

,t nd l~ PPI" 0 Pl' -j ut t) S t J f f for' r' evie \.J •
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B. Key P~r~~}~

The pr ; 11 c i p(l 1 0 f f ; c cr 5 0 f the ComIn ittce du l~; ng the

peri 0 d co vel" cd by the uII di t \oJ ere f·' r. \oJ i 11 i ,,\:1 S. Len k c r, Cha ; rm J n ,

and r'1}-. Ed gar H. Hi t che 11 t Trca sur cr.

c. Scope

The audit included such tests as v0rification of

totall· cpo r ted r ec c i p t san d c xpen d i t u ,. c san J i nd ; v i d U il 1 t 1" an5 -

iJ C t i 0 11 ~; 1· ev ; C\'1 0 f ,. r. qu ; '" cds ur POl" ting doc u11 en t J t ; 0 n; un(l 1ys ; s

of Co li;m; t t c P deb t S (l nd 0 b1 i 90 t ion 5; u nd, sue hother au d; t proc cd ur l~ s as decIII ed nee c s s a r y UTI de r the c ; ). c UIII stu nee S •

I t 'j s the a p ; n ion 0 f the J\ ud; t s t a f f, ba Ii c d lJ P0 n (~ ;~ (1 mi 11 J t i () n

oftherep0 14 t:. 0 n d s tilt em c n t sf; 1 c dund the r f~ (" 0 ,. ds pre ~ ; e n ted. t h ~\. ,

(l X C cpt f 01· the de f ; c: i en c ; c s not r. d bel Ol,'J It the }' epo r' t 5 and s t l1 :: c rl'~ n t :",

ofthe He pfor d for Con ~.~ r' C S COinmit tee f II ; r 1y pre S 0. J1 t t h.; f i 11 ~~ nc i ,1 1

act i v i tie S 0 f t hr. C0 till it; t tee fOr" the pe ),,; 0d C0vcr cd by the a ud it.

Fur t hl~ r, e xC e pta s not e d bel 0 I, II 0 ill J t c ). i alp r' 0 b1ems ; nco r 1y ; n ,1

\'t' i t 11 the Fed era 1 E1 (~C t i 0 Ii Cil InPa i 9 n Act \'1 c r· e dis C 0 vcr c d duri ng t 1\ e

course of the audit.

Sec t ; 0 n 4 3.1 ( b ) ( 0) 0 f T; t 1e 2 0 f the Un; t 0 d Stat es

Cod estate s, ; n r (l r t, t hJ t ei1 c h ,. e po," t 5 hu11 dis c los e t h c

ide nt i fie (1 t ; 0 n 0 f e i..t c h per' s '-~ n t n \': h0 l~l (~;, fJ end i t ur' e~; h av c b e n

m~llle by such COlllln; tte(~ \'/ithin the clllendaf YGtJr' in excess of

$100 0 r ; nan a g9 '" cSJ t e J in 0 U Ii t \'! h ; chexc eeds S100 •

nUl" ; n9 t hreo lJ ''O $ e 0 f 1. he a udit, i t \oJ as de t c ,'Om; n (~

that the COJ.1t:littce did not ite!;Ji::e 4·1 expenditures, totJl1in~ S1 , SB9 • 20, \', tl i ch ; nth C J ~~ 9 r e~1 [I t e (~ x c eed (-: d S100 • Th P. S r~ f ; c: u ,,- c :;

\... ep l'" esc n t 1~, .~~: 0 f the n ul~ b er' II nd 2. 6 ~~, 0 f t 1\ e do 11 n l" v c1 1u 0 f the

totale xpen J itt.: " C5 r cqu; r i n~j i t Cl~l; Z a t ion . The t rea S U l· e r s t J t J

the J~} 9}. c9II t ion sy s t eIil \'J uS mJ i nt u i ned by 1" epn ~. tin 9 peri 0 ds ,

1'" u the l'" t hl\ n bye ale: n dc1 1" J' C 'J ,.. und u U1" Cedta f i 1e the nee c 5 $ l" j'

. amendlllcn ts.

RPr.o 1:1m C11 d t i () n -_....._--------

Si 11 CC \.: erec C '1 vedthe C~') ;':U i t. eel s tt men d d sChe du1 t~ son

Scpt e111 bel" -l t 1977, dis c los i ng til etcq U ; ,.. t: d ; nformat ; 0 n, ~': C

,.ceo m:1\ end n0 furthe 1-- il C t ; 0 :~ 0 nthi S IIIu t t cr •

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Section 432{d) of T;tl(~ 2 of the United States

Cod estute S tin par t. t hat ; t s hII 11 bethe dtJ t Y 0 f the t rea 5 ur' c " t. 0 0 b t a ; n \\ 11 d to k ee p Cl r ec e i p t c: rJ b i 1" s t (} t ; n9 t h part ; c t. 1J r 5 "

f 0 l' eve rye >. p(\ nd ; t LJ ,'e In a de; n xc c S S 0 f S100, und f 0 l' ex pen d ; -

t. u" csin ale ~, s f~ r atil 0 U nt t ; f the <1 90 reg ate um0 unt 0 f sue h .. >: pen di t ures tot hc c) III C person duri n9 a cal end urye a l" C xC c e ds

~I 100.

Sect.iun l02.9{c)(l1) of the r:otnm;~s;on's RC~lJll\t;nns

t II t c ~, i n pJ r t , t h\1 t \,' hen a l" C C 0. i pte db; °1 1 i s not u v n ; 1a1.> 1f! ,

the t r' ecJ 5 ur er' m,I .Y kcep t h (~ C 1 nee 11cdc hec ksan d the b; 11 t i tl V 0 i t.: c

o." 0 the reo nt c 111 P(J r' c) nco U$ III em0 t' and UIn •

1\ r' p. v ; C\,/ 0 f Com:n; t tee r ecor d s h0 ~,/(: d t hat the C() 11lI~1 itte r.

did not obtain u hill, ;nvoic~, 0.' other conteli1poroncou:, mCI;lQl'an-il;;:;

i n 50 ins tan ccs, 0 r ? 1:; 0 f the tot u1 c >: pen d; t U l' e 5 r er: ui ,'i n'J 5 U c h

sup p0 r t . The se ; t em tot J 1ed $8 , 353 • 5(3, rep '" e5 entin 9 10 · , ~'~ 0 f

th~ dollar value of all expenditures requiring supporting

documentation.

The t r' Cos lJ r (~r \'J c1 S (1 \ I u t" l~ t hat sup p() r tinn doc u~~ en t cl t i ('l n

\'t' S 11 0 t 0 btu i ned i II S0!11 e i n ~; tun c eS, il nd a9r ec d 0 0 b ui nthe S G

doc Ufa c: II t s f 0." 0 U r rev i CVI •

S; 11 CC \'/erer. c i 'l edther cqui red dC' CUIII Cnt J t ; 0 n, Sup p0 r t oj nC

eac h 0 f the ex pc: nJ i t u r' CS, ~'J ereco;nmen d no f u... t 11 er Jet; anon

t hi mut t e." •

Sec t ion il 3i+ ( b ) ( 2) 0 f i i t 1c 2 0 f the 1I n; ted Stat es

Code states,;n part, that CJch r~port shal) disclose the fUll

nIt til (\ II nd In u'i 1 i nU ~i d d l' 0~; S (0 cC u:) a t ion a:1 d p r inc; pal p 1cJ ceo f

bus .; neS 5, i f 11 n.'/) () f c ,~ c h pel" son \',' h0 has mad eon COl" r.~ 0 l" C

, con t l' ; but ion s v: ': t hi n t : C J 1end c:l ryear i n II n J 991" c: gut C ilm0 U n t

0.' val uc i n exc s a f ~~ 10Q •
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Our; ng th~ course of the audi t, it \'/as dctermi nad

t h() t the Co 111 III ; t tee d; dna t d; s c los c the (l C CtJ p" t ion 0 r p.' ; nC ; pal

p1(l ceo f bus; nc ss f 0,., 32 con t I' ; htI tors (:1 9..'~. 0 f the numbc r 0 f

reported contri butOl"S). The tr-cusurcr di d not compl ctely

'understand the disclosUl'C rCquil"cl11cnts ,'elating to contributor

; nf 0 .'mII t ; 0 n, but has a9 r c edt 0 dis c los e the r equi red ; nfor mat ion

in an umended report.

ReCOin in (' ndII t ; 0 n

Sin C C \oJ erec c i V edt hceomm; t tee's i\ In end cds chedu1e s

on Se ptembe," 24, 19 77, d; s c los ; n9 the I' Cqui red ; nforIII a t ion , \'J e l'ceoIIIme 11 d n0 fur- the \" act; 0 non t his mat t er •

Sec t ; 0 '1 4 3'1 ( b ) (~~) 0 f Tit 1e 2 0 f the Un; ted Stnt e

Cod C ." c: qui l" es, ; n pa\" t, t hut u comIn itt P. e dis c los c the na111 e

and udd r c 5 S 0 f C(j ch pol; tic It 1 C0 111 r.1 itt e c fl"o III v, hie h the

rep 0 r tin 9 commi 7 tee r c c c i vedany t~' a nsf c r 0 f fun ds, tog e the r

\'/ i t h Ulil 0 U nt san d dJ t e S 0 f a11 t ran 5 fers •

A 1" Cvic ~'I 0 f C0 ~~ mit tee 1" C C e ; p t r ceo 1" ds rev eale d t hilt

f; vC (5) S100 t r J nsf C f S (1 0".J 0 f the tot a1 nUIn bc run d 1. 7~~ 0 f t h0-

dol 1u}' vu1Uco,' I 11 t r il nsf c r' S r e c c i ve d) fro I~ i P(I 1; tic ale 0 mini t t cps

\'J t ." e ; l';1 pro per' 1y d; ~~ c los c d a sun i t CIn ; zed con t rib ut ; 0 n5 • Th(~

t r ens U1" C~" \., S lJrl ,1 tt: ,1 I' e t h 2 t t 11 iss; t u(\ t ; 0 n c xis ted, but has

ug l' Cedt 0 i t e111 ; ::: e the t r ai. s re.' 5 i n n amGndcdrePOl' t .

R con: :" r~!l d:1 t i 011 ----

Si 11 C C \'1 e " er. t i v (I d the Con: in ittee 's il j;~ end ed chc: du1eson

Scpt embel" 20'1, 1977, d; $ c 1c· sin G the l' equi .' edin for'mat ion, \'J C

r e comIil end n0 f lJ 1" the." il C t i 0:1 0 nth; s mJ t t e,...

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