•

r1.1 >1 R/\I 1.1 [<..~ liON (:( )~1f\1ISSI0~~

1t a') ... "I ~II I \\'

\\··\~It!'l,ll )'.1 H . .!04fd

February 1, 1979

~1.l0:

'j'IIlZOUGII :

PUBLIC ~SSUANCL OF AUDIT RLPORT -

Fur~D FOR A CONSLRVA'l'lVE !·thJORITY

•

l\ttachc!'] plcns(~ find il copy of the final audIt report

for t.hl' FUild for a Conservative ~1.~ljori'lY \'lhich was approvC'd

by the' Con.iaiGBion on J,tnuury 25, 1979.

l,s of thifi <.late, FC'Lru~ry 1, 1979, all informutionc:.l

C()p.ic'~; ()f ':he rr'port havc' he(\ll recciv0J by ill 1 r'3rLi.cs

invol vcc1, i1)l<1 thi~» report Il1ny be released to th(;~ public.

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Hi\[\

Pu])] j c H<'cor<.·i
•

• IIJ)[R/\1. lI.LC·IION CO,\\I\lISSION

I\.!~) K \I~tli N\V

\\'" "'t t1"'C I()~.I> C. :!()·U) l

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•

•

REPOHT OP TIIl~ AUDIT DIVISION

ON

'j'IIE I·'UND FOR A CONfjERV1~rl'lVE Ml\JOHI'l'Y

1\. Overvic\·J

'l'his report is based upon an iluc1i t of the Fund for

u Conr;crval iva ~lajority (" the Conuni t tee") undert.aken by the

l\udi t. Di v i~: ion of the Federal· Election COlmni~;sion in accordance

"li th the Cowmission' ~i audi t policy tr) dctermine \·!h(~t.her lhC'rc

has been cO!llpJ.iallce \·:i t.h the provi~;i()n!i of the Fedt'ral Election

CampClign i\ct: of 1971, as amended ("tl}(~ Act"). 'fhe audit was

c()nduc t'('ll pll r~~uant to Secti on 438 (it) «(~) of rri. tIe 2 of the Uni ted

:; l (1l(~~ COl1\! which d tt"ccts the COH~mi~;si.on to make from t.ime to

t il~·.,:' iHll: j l:: <Hid fieJ d inv(~sti~;~ltion~:; ..:i. th reE~pcct to reports a:1d

~;Ldtf.'!.i(~nt.~j f ilecl undl~r the provision:: of the Act.

'j'l)(~ Commj L Lee ori<Jinally rc~r if; tcrcd 'vi th the Se<;rc tary

of tilt! Sellatc on t .. t~~lu~.;t 1., 19·/2, Ullc!Cl" the nall~C of Youn~t i\mcrica I~;

CdI:1p~d.~n1 C( ,,,.i.1i L teo. On Jan\1\:u~y 10, 1977, the Conuni~sion l:eC(~j vcd

"n ~!~~it.'J1(1L"d ~~t·.;ltcI:1(~nt of. OrS~lni:~':lli():l re[]ccting a Ch(lll<J(~ in the

(\l;:':;~:l Lll.."'t.!'~: Jid:nc to "'l'hc Fund for (: ('C)n~ervalivc f·1ajority". 'rhc.!

('();~lmitl.l'c ll\d.i.lll.ains il.~; he~dqul!rt('r:; ill HcL(~iln, VircJinia.

'j'}H' iHH1it covered tlv~~ pC'.: .in.:] J~nuary 1, 1975, the

( • j f <. 'c Li.v (~ (rd l" l 0 l. l huh.c t u~; a! ac n d d, t h r 0 \1 <J h Jtl~ r c h 31, 19 "7 7 ,

t lie fj IL1.1 c()v ... \r~lCj\.~ (1~~~·.(~ of the li1.t·_:~~t. r(~pnrt filc(1 by the

('c.):~~:~~i.t.tl,:c ,d. the til:H'" of the· i.~Ul1:i.t. Dur:inq th;ll p(~rjod, tb(~

("(\.~::.·~t~I··(' 1·(·ij\J.t.. Ll~~11hl\jjnnin'J c~:~)h of' ~::]~l,G~13.:)1, rec("'ipt~; of

:.~:,~:·I,~lU~~.:~O, ("':-:p(~nditur(~s of G:'~~}~),3.1~).O·I, (~nd (\)1cLinq c:l~;h of

:~: :' I :: .! • • .: .I •

'.1'11 i.~; ilUdi L ~·c..'port .i~; h~l~';cc1 Cdi (l(),"'1iHh"~lL~; il!)cl ,-.'orkj :19

j"'.:lp;'r~; ~~ll:'i'·'!·Li.n~; c:tch of it:; f'lcLu'll :~t·lltC!:~·:'nt~.;. 'rhc'Y f01"m

p.ll'L 0:- th.' 1l'c.:n;.. ,1 \l~·.I;Il \.·h.il·h th,,~ c( ,::·.ti:::.~.ion l)~l~~('d it~; <.It'ci~·;.1011~-;

( ': i', . ... : - t I ..~. :: J: '; ~'.:. : " ': " '] .': ;:: .I: '.. ':',' d ....-d i J,tl) 1 , l U Cu:.~: ,d ~; ;.1. ( ): h •1: [;

,t :,d , j .i ·r ('; , I' : • I t.,~ ~.~ t:' iff(;r r (~'.' i.'.:\',' •

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'i'h., prillCipul of[iccr~; of th~ Co;r.:nitt.t~e \,:crc \'1,lYIH~ J.

Thorburn, t. '1.,1 L1"m~ll, and Hona] ,,1 F. Docksai, '!'rCilsurer, J(l,nl1':ll~Y 1,

19'/~ t1l1'(dl ;11 ::('plC'11IIJcr 2B, 1975; nnd ROll Hobinson, Chairuhlll, and

;John HucL.1,,·/, 'j'l~l~a~,~\ll:er, fro:~1 r;eptembcr 29,197:> t.hrough the

clo~;c of the' period covorf,'el by the audi t.

'fh(! <Judit includ"d ~;l1ch tests as vc'rification of'

repol-ted l" c·.. ~~ pl.~~ ~llld c:·:p' -II'! iLul~CS and .lllciividual tral1r;<lct ion!;:

rcviv\·! of l"'.":U:l It'd ~;llpp()rl i ns doct1!:1C'nl~d~ioni ilnuly~;is of ('olllmi t:tCl~

<.1()bt~~ d:ld c;,] .i.1;:ttiol1:;i <.~!1d ~.:uch olh~r iHlc1it proce(lurc~ c1~3 d(~l~m~ll

11 (" C (' ~.~ : l r':/ 1: f. i ".l- t h( c iret1 :II LCd1C e~; •

Ir. 1·.t1(.1itr'1·'~; f;t()Lt"\m(~nt Lilld D(~~~c;-ipt-j(,n of ]='inc1jnqs

----_ ....._--_....._-------..------- ._~-------._----------~-

It: i.~.~ i ll{~ opirdor1 02: the ;,.uai~: ~JtClff, ba~>0d on the c:-:i1min<ltio:1

of d; :~CJC'::i:.,' ~-'··l,ort.:; ,UlC,1 rccc)l.d~') l-Jl:C'~:(~l1tcd, t.h.:lt the Fund [or (l

Cc;n~:(~~:'.'~~tj·.. · ::,-~~j(j(iL::' hit:', Hot cor~d\:ctcl1 it~; (~cti\"iti.es in comp]i:"..nc(~

\,:,i th l·h·, :",~ :, :',tJ l:](:cti(j!l ("'~::~?~l~~;:l, :"'.ct'. ,..<?f ~9'1]~, u.~:; 1l~~(:1:cl('(1, and :'::Zt.

L}H' d.i :.(.~] ,-." .;. 1-~ ::~~'i-t':.;, ~'.', ('\r~ '~I::.r.:~.LJ.y j ,I J(,'.1, (10 not tl~l)·.1.y prc~~~cl~l

tL~: l.i;l~;:'.... :.:,::'l (lcLivi.t.y 01 Li:l~ CO~:::'·..LttJ.'(' [or t.hc p(~rioc1 ,nIdi tl!cl.

; If't j ()n t1 3·t (:) (( I) ; ! :> (:!. 3) u f. 'ri t 1.( 2 () f the Un i ted

~~l',;~.,':: Cc.,:,' ~-, ';t1; j';,~~'; a pol.i ~_lc~:l cr :,:;,d LLt.)(' Lo rC'I-'o~~t on il ~;epar~ltt'

SCL,·I.~L'j~' ~.~:- :"'1;'; (,. ()C J.l ..•-., ,-,:-" "n \-"("'1 'jn,l l >·, ,n,' 'n:- (\'·'·l··n(~-LI.", )"

z: ;-l' J':,: '.', .' .' '. >: ...-: l.': d ,~~ I,. l' \ .: -' .: 1 ~: ,~~ ,':. ~:} l ~ ~ : '~' .~; [" (\ t ; ; i ~i; );";<; ;~ (1{; Jl: ' '." .

C:":j-'.·:·; .. ~': : U~-,' .=:~ (,:,:(.,_.~;:; of' ~;] no, :::~,: ~.:ll.' n~~:::c~, <;d(h-l':":~ and ()~-ricc

~;C',l:~~jt ;':.: t .":: l', .1(;,;/.1,d... (~ 0:1 \,'::,,-:" .. ;, ·;1'~.1 t ;;1'I..·h l'=':1'- :},~.i.tnrL~ ""'':'4~',; r~~l'--~.:;

~l;:'41 1(1 .:~ :,: .;.-'/ '.,:. :L:L.:l: ~~~H-:l :1::,'..l: 'nd. :ll c:'::"'jj',iii Ul-(~ i~~ lIll1l1(~ in

C(H):.t-·~-:~t,~!:!l, (';.:~_'·l)_~;IL.ic,n, ,"- C(;':·~,·l·~. \·:.i.Lh, (lC dL Lho rCl1U(~[;t or

~"~ , c, .". .' ~" : " :. f • , c "; d i. l • : :. \' I, j ,- :; : l' , 1.1 t }1. ) ~.- .i. :', l : \ 1 C u:::,a i. t' t c e ()1: (1 ~J ('11 t

t'").t I l , • : 1 l":;:: ,'::. , \

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,.:.1 !.!~'.l ~.3~·, ll:"~'. :~t.; .':-- -. . n;1 };~"'ll:,~I:- ('I. l~,'~)~!ld l\(~dij~i.n

'. ,~.:.1 ... ,: ~''''I .:.'\.:.' _ ,: .. ~:~ .i~~;', ~),\n: ·nt' ('~.;h·'1111:i.tU1'L'::

(- 1'; -:'\.' L: :; • I :. , ,~ : ; .! I ':), t l' ( ... ':, ,: . ; ~. ,,-, '_ f ili 1edt:0

"': 't'J .· .• : ...n.-( ~".~ ;\,.. )~~.~ 1·1\·.1~ .1,\:1 ()~. ])h;.': '!h~l'IlC() in

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'·le rcco1tlm<"I\{lf~c1 thC:lt the Cc:r:::li ttec fi1(~ the required

f; c he' cl ttl (~ ~) r-: for the j JH.1 c p e 11den t c:--:r)en(1 i t u r e ~; \'1hic h they f i 1c d

to J. 'P()l" t l' r()i h" 1:] ~', d l1l1 a ~;~P~lt- a le C:__ :: L i;: i<':d tion o( Illdepcndcncc

fo)' l.ho~;e \·:hich \'ll~r(' previoll~.~ly ident.ified it!, such. \'le received

th(' )'C'CJt1('stcd tlOCUl1\('nts from t:he Co~r:~d.t·tce on SeptcmbCl' 7, 1977.

Tn uccorc!.:1ncc \-lith Commis~~ i r::1 policy, thi.n matter \vilS

)-('ft'l'rl'c1 to the Off icc of (~r~n('r~ll C(J'J!)~~cl on Oct-abel- 1·1, 1977,

\":hl' l· ... ' :·la t t.t~ r Ulldc' 1- l~l:v i~~..l f SO 3 (7 P.) ~dl <: instiluted.

On FC'bru:II'y 23, 1978, the Cr):~;!:lis~;ion found rC~l:;on to

};~'~1 il-'v,' th.:t. th,'" c • .;litLc(; h;tcl viol:: J

_ .(~ 2 U.f;.C. Sect.ion ..1311 (b)

(~) and (13), an<.1 1.1l(' Co~.l:aitlt:e \'IuS notified accordin~jly. l\f.ter

illl<Y,·l.Lll(J u reaf:~oll;ib'lp pc~r:iod for CCJ;r.::... iL:':'c('"! response, on ~1u.y 17,

1~)78, the COltl~!1.is:_~j <in found re(l~;()nLlbl·:: c~.use to believe that the

ConI::': 1 ttl '(! h.:1cl vied d l c'd the ci t(,c1 sc~c:::: en of tho Act. 'l'hc

('(ll;·.ili ~;::.~ on lhcn (,n t,. '}"(\d iT': to II CO;lC:i.: ~: L ~()ll prOCf2~;~; \·.~i th the

l\)ill~il:i.Llcc \':hich cllJ!!d.nai..cc1 in a rcvj ~.' J conciliat.ion CJ~Jl~(~cmcnt,

('(\nt~lin.inq d. cjvil IK:nalt.:l ot $3,00C', 1 Ci.lHJ acccpt('(l ill"H1 si9ncd

hy t h·, t\... ::.!'~i tlC'Cl ()1~ nL"Lo:';c,;, 3], 19r/~~, ~l!1c.1 approve..} by th(~ COmmi~..if,;j.O!1

on :~()\'\·:::b·..'~~ 21, l~)·IB •

B~l~:(~(l 01~ th(~ ('o::.::,i.i.tl'("~'; .. ·:-:·(\~~l~~ t:o\':~rd C01~lp)ii1ncc

~lnd tllp r('cc::.. :~,'nlLd .;1..):10;- the· of-fice:: c.'':' (~,~·~n\.""ral Coun~;cl, the

C():ll;i~:i ~;~;j on \'ot.t'd ()j1 ,l.tnuar~' :", 19"19 I t.o c] o~;e the file on thi~

HId L L(:r (t;l~l ~.dL(' 110 rtll·l.lh:!;~ (let 1.on.

!~cC't j()ll .1.;:i (;.l) (~) (,f" 1J'.i tIl' :~, U!li~cc1 ~;l:,ltc~~ Codc~

r{'ql~i.rt.'~~ rnlitic~i1 t'\,::;:nitLc(':,,: to .i.ll('.1i',_~·:~ .in t.he:ir rcport~.> to

t-lh~ C(\i::::;i:'~:;i():l th(~ jull n:.!.:··~, t:l~·tj].ii·.·; ,-,::>-I..~~~~, Occup.:ltion and

1'1.incl!',:1 1·1,,'·c oC Lll:~.ir.~-':~~; uf (~(1C;'l :. _ :'~':l " ~lO h;l:; 11~~1c1l~ ():~e or

'H:Cq'l' ,,'l':d i ':.. ::t .i.u:~.~ tIl L:1C' C'~;:i:,ti~t·:.·(' ·,,'.~_~: ..~;l i..:~:~ c;t.l('n(1l~~- YC'~lr

l~:~:i:;~:·,.j~(:t j,!:'-:t,·;I~, ~':::~~\'~'~~l (")~:.,::l;)O,) ~~(~'.1l":.:~., .:~ '.:i t:~:.. L!l~~ .'ll.;:r:',\.~:,~~,<.:~:.h~, 'c'

u \, ,~ (\ , .Ll. l , I. ' 'd, I .' , ) ,~ , ..1 l.l d.... • I d .. t. 1. (..- •. (I .) c. t .. L Lt.)n \.., • .1 .....1. l.l ...t

l' . ':1 .. ' c':::: r~l·· .. l!·,'J ;':".'(".i.:- -: .... Ll1':lL ;:. 5.. : !l:. du:.\' (>1. t-lll~ t 1·l':\:.~\~l"l"·

( 11 d 1 .J: : .i ,.: 1 ,.~ u:::: i; i ~.'~., ", ' t ~, \ ::l ' h .i. ; .:-.... (.;' :)l't ~; . t () (,}.. t· ':Ll n t 1H"'

)"t .,;:.~ ,', ',: .i~.· \.: I.: \t.:' ':\ dl;,~ ...:~.:' }; .. ',.'j) ~l ..... : .,·t \..' r·\'l~l.ii·d 0;- t~h' l't~~(')~.. ~~:

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( 1 ) [ 0 r ] (, B c ()n t.ribu tor ~; i l. {~In i zed ( G9 • l'~ 0 f tot e:t 1. )

d\ll-.inq th~ <1u<lit. pC'l'ioel, tlll~ COlami.t..tC(~ failed to provide the

...01 d' r .i b II tor's 0 C CUi), d i un i1 n <1 p r i nc i lJalp1 ace 0 f b U:J inc ~~:.; ;

(2) tlH' ('t illlIll.l t lee r(~cc i vcd r:ou tine COll\mi:;~jion He-ques t~

f(n~ i\d(l.i l ional ] nf nll'ldtion (l~l"J\I) rc~q\ll,~;tinCJ this intorm'::ltion

.i nco11 11 (' c l. .i. 0 n \'4' i t h :;,. v(,11 ( 7 ) rep0 r L ! ;

( 3 ) t h 0 (. / )i lIl!d t t ('(, mac1 (~ il ~; t 'C ( ) 11d a t. t ('1 np l to (>1J t clin thi s

inr()l~m~lt i():l [01:- (llll'/ 1',':0 of t.hc~ f;PV"ll }~l,li\.II:j (r('ducinq t11(' above

PC'I"CI'Illll';" to 53.:;':,), [a.i.l.i.ll~) to lil,dnLtti.n.:l CO:ilI,]f.~te rccol'd of

lob t 'i r c' f i () :" ~; ;

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(~) in ](·I.L(~r re~;pon~:;l::; to t'.·.·o oth~r l'~Fj\I'~ (concerninq

the 10 c1tl'.' i:..!:c-and J() cia'! tJo:..;t-clc~ction ref)()rt~;), tl1c COI,~:nittcc

C.·L·llc,<.1 1.1 1:", l~'l,l ll'·L· L' \.4. ·4 L. -.1 .. \...\"4 .' \i

1 l-11"'-)'14~ .- ...... ... }J""l ,-.J CJ~,r.{'Ol-t(· ..._ .•.J t·o· (')"'~I--ll'll _ I-Jl.( '.\',""l '-' .. 4,"- }"l' ,1._ ,..J.) ,.· ..·1·nC·1 ... :J

.i.llforin(lt i ()!1, but-, d~: \'ld~; ~:l1h~~L'(llJl~ntly di~;cl()~:{'d, thc~;e bL'~jt cf[orL~;

J:l~i('rr(~l: (~;:.Ly t 0 L:~·_· ()r.itJindJ. 1:(':t1ul'~;L on tL·:::: d()Z!Ul~ r·.'p]y card

r;c'lll out v:.i. tll the ;;0] iciLl!Ll.e·n lcLt.(~r; ilud,

c.> ) i n /~.~ .i 11 ~; t~; n (·(.,_; 011 l11 r" ( •r· (3 ) FE (~ r v !)(J ~~ L:; ( 7 110 ,

B/lO lin\'1 ]O/]~)/~iC) d ";'I':;l '_';-:\~1·t:~1l ~:l:!:';) :::;d })··c·n '~~>~d (;~l tho~(~ •

i t \ ',.: i :: \ ' 1 l ' I.. • .' ; 4 .; ; _ ; : l I' .: 1 d (' }: j n ''.r t 11 !. r " (1 u .~. J•( ;d i. a r() ,.;: 1 t 50:1, 1-· u t thitt:

th.I.~: cll::o ):t..':l~:";-\'·.i (,.;!j' lo L~lt~ (11-.1(Ji.n;:1 rl·,~l.~,-"'~:t· ill Lhs~~ ~;ol.i.cit.. d.jo:

p~d.. 1:l.\L.

It \·.';1:~ th·' ()!d n.i Cq-~ ,-'f thl' i'\\H'ii t ~~t.(lff tll:lt thr~

Crl:;:~:1it-t(:I' f;d.ll.,l to 1.,;:>'~! .1-\~~::~(1.1:l:)1(~ b",;.',t- effort. to old~lin

l!l:.' t..~():1~ ;1-'i::',:' I:: \ "'i;';:Li(':l ~.::,_~ ~)1'i:1l i~,:d :J1;!c(' or l)\l~~~llt..-':;~~

i ; 1 i 11',' 1.':'.>., : . _' .)! : : " • : : .:-'... \ •. ' ~'( : ~. : .. ; 1:.', ....' ~' ... :.'! '; ..::: ':.' >. ,~~ ~: :: L

llH~ CO:i,:.ll~ ~.~l· : ... ;;:(' II :;.· ... ·011,: ~1.~.L(':I::~t Lu c;,t:,;:n Lh,· ). qld~:'\'i

.il1l·ll]-~:·;;~t.;('n f)4.~::~ ~il t·I");1t.1·j1q:t·(.tl~, dUC\:.::.'::t ~l:~·~:t~ cLfot:t:; itnd

I i 1.(' il CC":',; 'i-\. ~ll.':~,~:: ',', I ,!::~\'l1(i('d J"1..:pc1 rL \.; it h t.;;'.: ~!dt 1i t:io11al

t ,) thl.~ l'.:

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h,l(l viol all'd t-hp ci t<'d ~ecti.on o[ the l\ct. This matter was also

jl1C]tldf_~d iu till' CU!H'il.i.ation Pt·OC('~;:: \'1h](;h follo\,:cd. In response,

tll(! ('t)iitlil.l.ttl'" ~;\lL::1.~.LL(·d on t'\l1q\1:~l 7.?, 1978, i.nformation on

cOllll 6iInd.or (h ·1..:\1i ' ..1 _ion and pr i nc i.p~ll place of bu~incs~:; \vhich

)'f'c!Ul'I'd t!tl.! (''':::;~li t t ,.,-,':; <1('fjl~i('nc,/ rill'p to 37.~;~ ilnd indi.cated

il ~:('(;(llld c:lt Lt'l!lill L:nl 1Jc(~n ll\dd(' lu reach all of t.he contributors

.iIl\·O]VI·l1. Oil D.. -·(.. :;·::·.... !- l~), l~))H, thl' CUI~nnitL('<.~ fULther fil",'d an

C:'1!I('l~dt'd re'!'orL ;~hu"':l;lq 1111!l\{.!, C:lddl'I':;~;, ilnd lh(~ occupation and

I,)'i nC:l pal p] ;Il'(' (l~' L'~l:; i 11('~::; f(»- t Il():: .. , cunt.r.i.bt1tor~_; on \·"ho:n

.in! (l11:1:ll lUll \·... t:: <,\:,~ lli.Il' d.

'1'11:i :; :::: : ( 1- 'dii : ; j I, ( .] u, 1,,- 'l1 i!l l1l(, conc i 1 j a t j ()n \:1 ~Jl~ e c men t

~1CC\ 'pl'('d iilH.l ;;it.!r1.-,;cl by the! Cc:,lll\j L Lc(! on October 31, 1978, and

(lpprov(~d by the C(I::.::I1.s:;lon on I':OVl\lrtb(_~l~ 21, 1978.

B:l~;c~<1 0:1 t.~lC' r(~C(\jtl~nl_'nc1~d:lU!l of the Office' o[ General

l\)"'1~1=,;VJ., t l1l_~ Ct·):.:::.~~~::_i u11 vol t.. d on ,.I~l!l\l 4ry :>, 1979, to close the

f i 1t • 0 n t. h L~; 1L1 i t. t. c' r iII H 1 t-; 1}: t.. no f u ). l h, ')' i1C t ion.

Ct. ])·... ·,l'1·~ 1~'"· (.,'j" t,:·'\·'!·l·'.){'.(') .~: ~_.. _... .:..:_.:- ._-- .

~(\(.'~ :ll... : .::: (~)) ("~) ":':.- 'rit 1·-' :~, t~ni.tf."tl st:,~~·(,~: Cc~:..:c,

r('(l~li~:t..~:~ t.h:~L c:l i c;:.~.;'.~l·dl \.·(\:::::Lil.tl'C' d;_::I..~l()::t..~ :in it.~; r('~)orts the

t.Pl ill :a11,1 0:: "1 n(1.i \',~ :~l.-d COllt:r.i,but- _i ni1~; uChl(~ t 0 ~;l1ch cO~l:nit.tce

(.;ul'il~9 ill,,' )'-\.'\J)Oi'~~:I~_~ i'":l·j(Hi.

OUL' '·1· ...·.: ~" or t h." c("'::l:~\i Ll .,.,.':.; ]"('c.)rd~; ~tnd t1.i ;:C10~;Ul~(~

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~;"_.I"l~n).{~~~ r1'('::~ ~·::.:.il· l~I'l') \'··;It-',·j:.i tt'i"_''''~ hy d ~~\11):-~L'11'i..ll.~nt

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'llll(\lVln\' '11 t ~, l' ,- ; II: ;'. ,t' t t h,'::" ] 9·/:' rcc(d.p ts in to the total receipts

fot" th"t '''''\'''', ;Hl:'l'p:t;J P t th(~ 1~)'/() totals accordingly. On

~;('pt(':itl"'1 ", 1"'/", dud ,ltll\\t;lt"j' 31., 1978, the Committee filed the

r v 'I 11 ' : ; t • 'd "Ill" JId u" .1tl : d ( ", I 1I d t l'1 ~' r l [ 1e c t: i n the corr e c t i.lJf(,ri'~,lt if)11.

~; i I h"t' t ht' C( ':.1111 itt t '.' 11,:; cC)::lp]:i ed \-11 th our rccommendat.i.on

i 11 t hi:. 1. !. d t. (I 1', \'.'t ' l" ( •( I! I' ii' . I I' 1 11 () r\l r: t. h( r leti ()n •

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~t.'·ct.i.O!l 'lJ:~(d) <d 'l'.it,lc' 2, UnitC'c1 Slates Code,

~: t-. d'(':; .i. n p.tr t t ltd L tIl!, I t "t. ':l:'; Ill''- '1 1:;hd] 1 }~P(~P i1 receipted bi 11 ,

~;Ld.t il::.l tllt' p;ll.·l.ici.l]dl·:~, j ... )~- V'.',"ry l·;·:p(\lldit.urt.~ nlildc by a

pol·it.icdl eCl!i::;ti ttr:(" in ... ::(~(.'~~~; of' ~;:1.00 :in ~l!:10unt, and for nny

~~l',:h l'::~I':'I;j l\.~~t~~; t.o t1!" ~',.l:·' '1':',('~l i f t11c~ ,:"l'J~p1(~9atc~ amount

();~ ~;I.Jf'11 ~-::l'(·il\Titll.l:(!~.~ t,f) rll;d 1"'1 ~~<.,n (iUtlf1Cr nc'-..-rle-}TeJar l:e-a-r

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or i.11\· lJ: .. l~:;~I"t·i()ll C 1 ,;)t.lil1il1(J tL·· i\d)-~ictl]il~-:; of the' cxp(·nditurc~.

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1,; I, 1::':,"11"" (1;1 ~! (~( :d·' : I' . ",:;';: '.1 fer (':':L'cnc1iL\u.. e~; .i.n

(,:,:~,::;:; (':- ~~lOO (lC v;;1i('11 l.\.~I::\·;, ':. 111 l·;~l·I.';~:; of $100.

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I·:. ~~~~portin9. of Earm~rkcd Contl.-ibutions

~;ect ion t141a (a) (n) of '1'i tic 2, Uni ted States Code,

~;l~ll(':; in part \'li th r(~:-;pct'l. to carmurl~ed contributions, that

th(~ interl1\('diary or conduit ~;ha]l report the original source

(Inc) 1he int'ended r('ci.pient~; of Bueh contributions to the

CO;lliai~;::~ion.

Our rcvi,('\"l of lbp Conuni t l('e rccol~c1:-j ShO\'ICd the

)"('cr';pt of five (!)) :;:1, noo (~drm.:lrkvd conlr i1J\lli()n~~ solicited

by thl.' Co:.~ll!il.t(~c~ in Ctllllil'ct.ion \-li.th i.n(lci:·~~lld('nt c;·:pellditurcr;

J!l;:d.: on bl'h~l1 f (jf ,·\,,!~;tld l~I·")(jiln. 'l'he~c c()nLril)ution~; \'lere

!~() 1 i c.i. ted ~.:P":C ifj c.l·1 l~' j () r' l 11 i S pll1·pr)~:~ (l!lrl t'.hea con t: r ibntors

j 11 (lUt~~:;tion \..~,-!rc full~' (i'.'/;ll-e that. their gi[t~ \vould be going

(·l:t.irl~ly for the bCll~[it of the canllidiltc involved. \"lc

r~" '( J;Ulil('IV.1c..:d to the C()l~\m itt·(·( that they am0nu the report in

Cj\li':;f';,on to reflect tlH~ c~!n:l;lrkcd nature of the contri.butions

by .i dt :nt ify.i ng the c:111dld" l.t· on \vl1()~jc behalf thc~y \'v·ere received,

{{Hj! {Tler\,jl [11 t:.-I1C· f;ic-t t-ha t': thc-y- v:e-re t-o- h-e- ·t1-~ef:1- fe-r- th-Q. -p·u-];-P-o-s.c

of 1,: .• 1;inCj .indi-_'pcnC:(·llL (';':l Jf 'ndiLure:, on bC'hiJlf of }~onll.ld Hcagan.

l~( '( 'i :i ';'\1H:;~ t i (·n

:;; llCt~ \.,.' rc·c.... ·j \.'c:d t l~,' ('( \:;\~Iti t. L("~~' s C:~1:',~\ll<:c~d ~')chc~dulcs on

:;, 'I'; j":;}'·.'l' '/, .I ~)7·1, ~;ho',.'i i"l f Lr. reqt~t'~~L(~c1 informLlt.ion, no

1 \lrt il'."· act .ion i~.., r(~coj::::1',']ldt'd on thi!; in.:ttlcr.

'II c'm;.:·::lt-..i.(;n of C()I:{) ibtlt-..i()n~~

:;('ct-jon 434 (b) C~) or 'r.i.t 1(; :~, Uni.Lr~c1 f;:~i:Lc;; Code,

II .': I II';: Ii,'l j i,i\:;ll co~:~:~:l.{·Lt·t·;~ to .in<.:l\1'~'~ in their reports the

'I, i! 11 .•i',', ll;~li.1 il1 CJ add·(":::·~;., (H~cni'(d j(n1 and pl:illcip~tl pli1ce of

}'l!:, i "','::.; cd cdcll r,(~r;';()n ·~':1Jo h;tS mdJl~ Ollt} or HiOl:l~ Gontl:ibutions

le. !1 1,· (·(,:;';;i,ll~ '.·.·.it.11.ln the' c.-:ll·'J1l1:tr :lPc:.r in ~tn uq(J]~eCJat.c amount:

(II ·,'.llth' ill l';':C('~;:; of ~~lOO, tn]eLllcr \·;J.tb lh~~ i.i,lonnt and dilte of

:,\,: \'I:~~ril'~l:io:};;.

(l:,'- t·::::,~;:; i!.i~'~1 Of' ('«.~:.~3.tt:(~.. ~·{r>('~-.~:~ j'hl~,c:ltc'u. nine

((I J ,"'Jl: l' i;.\l'. :~ql,: '!'I·:I:I·~;.~~ 1::'\ in (:::C(':;:~ o:~ ~;lGO r()}~ 3 calendar

y"" \.il i.'!l \:.,!,' jj()~ .i: '.':.1\ ~:-": t!~; 1:'(":\11 1'·. ~: (':-' '.be' r{:~"orl".~ to the

l't \ :;. 1;' .. ::' ,.i',:lt , .. e,) ("l:i~~ .·.:;'~1: ~l'-:~:; ;:~,~re repol:ted

,,;i t:\ ;:. 't'll \"•• ..-:::'\~:.t ;;, }(,':'\I! t 'inq .in '4:: ~L'.i·.ll·~·~qdte Gvc'r-rcporti.ng

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t·:.. rVL'(:;l\iiH'l.t1pd tr) th<..! Co:m:littcc that tht,y includt!

the illlov,' (Iji\i.:..;~;.i()ll:~ lttld mill.. , the neC0[;~i(1ry corr(\l:linq auju:~Lmcnt~;

in t.ll,·j, ("::l'r('hl'Il:~i':~~ <1W"lldu('nt~; for the pcric,\.1:.: illvol\·... ,d. On

~~('1't. •. 1.!;,~ I "I, l~)'rl, ,..'(' rc'c('i,v('r1 ilmr~ndn~cnts \·.'hich cont dillOd l he

n'ill'~ (~') t .::i Lt-l'd cc;llf rj};ut· irJIl:; rc~r(~rr(,'<l to llbo,/l'. 'rlH\~;(l ;l1i~('nc1rH('nt~~

(Li d }l(ll I I' f J('c t t.be f j ve C~) ov(~r-rcpor Lcd con t 1".i but ion~; • Ho\..'evcr,

t 11(· l~lid it:: La! f du'_::; not. bl'l.i I.:Vl.' thl!..; di:.~C)~t~Pi.llll'':' i~; m~lt\"rial and

\':~11! ~·:t:L:: l.llY 111j-tll~'1- dctjon.

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~: illt'I' t- h" ('oll~ad. t t.ee hl..l!; ma tcrj a 1] Y complied in thi~.; Ina t. t.c~r ,

\.;(~ )"l·C·,.I:·· ..··ll(! no [u~-tlicr actiun.

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", ''''''. L1 th~l~' ~:h--:-' C(~ .. ::l.it.ll\\· r~'~]l'd to jtl\~.d.:·,(' ~·.'.·"·l·n (7)

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the' duelit (()r ·..;bieh t.he Audit. :;taff r(,co:~l~ilcncl~; 110 further action:

.1) Durinq the' C'=·:l.1m.i.n~tioJ1 of the COIHIId L tee's records,

the Ccm,Ll i I tJ (! '.·:d~.; fO{ll1d to ll:l'.'\,! Hlililltained a LdJlJ~ account I no\'I

C ]. (l l <1, <Ill 1. j lie; t' 11 "" d \ H! i t 1:" 1 i c.1 \'J1d. c !1 i t fa i] '-'d t 0 d i ~; c 1(,> : : l' in

it:.> Ur:.iq.illoll :;t,;ll('i!lI'llL ()~. (ll·qdll.i.::~ttjon or uny dIll('Ild:ac'nt t.h"l~ctO.

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CC:H:l;j Lt"t',' .in i 1-.:; ll'l)(l14L~; (i 11.·d \·l.llL LIt,-' C(':ll;lli:;~;.ion throu~Jh the

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:~) OlU- t'1·.·.'.iJ.·.-.' oS. Lh~.: Cc::...iiLt.(!f~'S ~1(~lll'):al f30]jcitut.ion

(~:fo~(t~j J"\'('dl()d thZlt o~- tht' IS mult.iplC'-piecl' ~;olicitations

u~·.;I'~c1, ]] (·\)!:~·;l.i.r:('(·l ~t!l ~d :."1·~'~1 .:Ol.":·: of l.b2 notic{~ r~Cjuircc1 by

:~ ll. ~; • c. '1 ~::) (b) 0 n 0111 Y (): 1 ( • ( 1 ) P j f' C Q j nthe r; () 1. j cita t .i 0 n pacl~ C~ t ,

t \,;0 (:~) !'(, I. i c~.i L:lt ..1Cl}1 P~l(':.,' {~ .. h,:d llO llolicl.' at. lJJ], and t\,;O (2)

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J:f :1;~!('~ ;.:c", :'.:1 l •.i::cJ.(',·(,\~ :.!!.~ 0:' :'-~., L\:u (2) ::;0] .i(:.i.Lat:ion Pd.c}~(~ts

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