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FEDERAL ELECTION COMMISSION

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A83-26

REPORT OF THE AUDIT DIVISION

ON THE

FRIENDS OF PEYSER

I. Background

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A. Overview

This report is based on an audit of the Friends of

Peyser ("the Committee"), undertaken by the Audit Division of the

Federal Election Commission in accordance with the Commission's

audit policy to determine whether there has been compliance with

the provisions of the Federal Election C~~pai9n Act of 1971, as

amended ("the Act"). The audit was conducted pursuant to Section

438(b) of Title 2 of the United States Code 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 reports filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

The Committee registered with the Clerk of the House of Representative~ on October 21, 1977 and maintains its

headquarters in Irvington, New York.

The audit covered the period January 1, 1981, through

December 31, 1982. The Committee reported an opening cash on

hand balance at January 1, 1981 of $29,973.41; total receipts for

the period of $205,817.83; total disbursements for the period of

$218,610.13i and a closing cash balance on December 31, 1982 of

$9,788.65. _/

This report is based on documents and working papers

supporting each of its factual statements. They form part of the

record upon which the Commission based its cecisions on the

matters in this report and were available to Commissioners and

appropriate staff for review.

1/ The closing cash balance on December 31, 1982 is misstated

due to reporting discrepancies noted in Finding II.A.
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B. Key Personnel

The Treasurers of the Committee during the period of

audit were Mr. Edwin L. Sibert, Jr. from January 1, 1981 through

June 29, 1981, and, Ms. Elizabeth Riveroll from June 29, 1981 to

present.

c. Scope

The audit included such tests as verification of total

reported receipts and disbursements and individual transactions1

review of required supporting documentation; analysis of

Committee debts and obligations; and such other audit procedures

as deemed necessary under the circumstan~es.

II. Audit Findings and Recommendations

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 each

reporting period, the total amount of all receipts, and the total

amount of all disbursements for the period and calendar year.

The Audit staff performed a reconciliation of committee

bank accounts to reports filed and noted that for the period

January 1, 1982 through December 31, 1982, the Committee

understated its receipts by $9,247.05; its expenditures by

$5,018.68; and, its ending cash by $11,347.68. The

understatements were caused by the Committee's failure to report

certain receipts and expenditures, in addition to mathematical

errors made in preparing reports.

The Audit staff recommended that the Committee amend

its January 1, 1982 through December 31, 1982 reports to

accurately reflect its financial activity •.

On July 22, 1983, the Committee submitted a

comprehensive amendment which complied with this request.

Recommendation

The Audit staff recommends that no further action be taken

on this matter.
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B. Itemization of Contributions from Political Committees

Section 434(b)(3) (B) of Title 2 of the United States

Code states that each report shall disclose the identification of

each political committee which makes a contribution to the

reporting committee during the reporting period, together with

the date and amount. of any such contribution.

During the course of the audit it was noted that the

Committee failed to report 4 contributions totaling $8,075.12

received from political committees. The Committee was provided with a schedule of this information.

The Audit staff recommended that the Committee amend

its reports to properly disclose the above mentioned

contributions.

On July 22, 1983, the Committee submitted an amendment

which complied with this request.

Recommendation

The Audit staff recommends that no further action be taken

on this matter.