FEIJERt\1 El.ECTION cOJ\'I\'\lSSION

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HI':PORT OF THE AUDIT DIVISION

ON TIlE

WEST VIHC1;J I A STATE DEf'.1()CPJ\TIC TELETHON COf,'liITTEE

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This r0port is b~scd on an audit of the West Vir~ini~

St~tc Dcmocr.:ttic Tclethon COIr.r.littee ("the Comnittee") undert.J.}:en

bv the Audit Division of the Feoeral Election Commission in

accordanc.e. \-lith thQ ~9nlm:i.~.~Jo!l's auc1i t policy to determine whethc.-

there hns been compliance '*li th the provisior'i"s' 6f"theFcderal

Election Campaign Act of 1971, as amended ("the Act"). The audit

w~s conducted pursuant to Section 438(a) (8) of Title 2 of the

united States Cede \'lhich directs the Commission to make from

time to time ~udits und field investiqations \vith respect to reports and sta.temcnts filed under the provisions of the l\ct.

The Cor.u~littt"'l~ registered \-lith the t~nited Stutes House

of Representatives on July 8, 1974 as an affiliate of the ~cst

Virqinia StQtc Democrat.i.c r:xccutive COInnlittec. The Commi.ttee

maintains its h0~J~u~rters in Charleston, ~est Virginia. The

audit covered th~ period Janu.:lry 1, 1976 through November 17,

1978.

This audit report is based on docunents and workincr

papers which support each of the factual ~tatcments. They form

part of the record upon which the Commissi0n based its decisions

on the rna t ters in t.h.. report and \·~·crc ava i 1 ~blc to Conunissio!1c'\rs

and appropriate staff for review.

B. Kc".' p(q-~~onnel -'------

'l'hc principal officers during the period auditC'd

\·:cr~ r·!r. J. C. Djllon, ,Jr., C;:~irman anl1 r'r. F.0bert J. Burke,

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FEDERAL ELECTION COMMISSION

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~1arch 27, 1979

MEr-iORANDUM

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TO:

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FRO~1 :

SUBJECT:

FRED EILAND

PRESS OFFICE

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BOB COSTA I~ ........ y'- \..._._.-'

JUDY' IfAHKINS f)--

PUBLIC ISSUANCE OF AUDIT REPORT -

\~EST VIRGINIA STATE DEMOCRATIC

TELETHON COMMITTEE

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Attached please find a copy of the final audit report

for the West Virginia State Democratic Telethon Committee

which was approved by the Commission on March 8, 1979 •

As of this date, March 27, 1979, all informational

copies of the report have been received by all parties

involved and this report may be released to the public.

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/ublic Record
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The iludit includl~d such tests as verific~tion of

total reported receipts and expenditures and indivictu~l

trans~ctions; rl~view of required supporting documentation and

analysis of COl1anittee debt~; and obligations; and such other

audit proc(:x1ur(':; as dcencd necessary under the circumstances.

It is thc~ opinion of the Audit staff, based upon examin~tion

of the rcport~j and statements filed and the records presented,

that the Nest Virginia State' Democratic Telethon Committee is not

a political conunittee as dofined by Section 431(d) of ~itle 2 of

the Uni ted States Code and therefore not subject to the juri Sltiction of the COlr.mission.

This opinion is -based -on the fact -tha-ttheCommittee h:lc1 no

receipts or expenditures in connection with Federal elections

durin<] the period ~udited. 'rhe Committee carne into existence

to opcr(tte \'1ithin \'1cst Virqinia in conjunction with the

DC'InOCrlltic :-!ationlll Telethon III Committee and rer.1ained in ('·:·:~stcncc \·;ithoul requesting u w~iver of reporting because of t.he

possibil i ty of supportinq F(~deral cilndidates in the future. r~hc I

COlllm.i t tee is receptive to be'i ng tcrminated as a pol i tical CO~~I:1i t tc •

J3ased upon the informati.on presented in this report, the

i\udit staff recommends th:lL the Committee be administrativelv

termina ted by the COf,lf,lir;s i on and informed of the terrnina tion:

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FEDERAl. El EeTION COM"'1ISSI0~

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REPOH'l' OF THE AUDIT DIVISION

ON THE

~JEST VIRGINIA srrl\rrE DEMOCRATIC TELETHON COfv111ITTEE

Background

A. Overview

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This report is based on an audit of the West Virgini~

State Democratic TcJcthon Committee ("the Committee") undertaken

by the Audit Division of the Federal Election Commission in

accordaJice "ii th -th-e- -Commission' s- audit-policyto determine-whether

there has been compliance with the provisions of the Federal

Election Campaign Act of 1971, as amended ("the Act"). The audit

was conducted pursuant to Section 438(a) (8) of Title 2 of the

United States Code \-lhich directs the COn'.mission to make from

time to time audits and field investigations with respect to reports and statemcnts filed under the provisions of the Act.

The Commi ttcc registered \·"i th the united States House

of Representatives on ~uly 8, 1974 as an affiliate of the West

Virginia State Dcmocr~tic Executive Cc~nittee. The Committee

maintains its headquarters in Charleston, West Virginia. The

audit covered the period January 1, 1976 through November 17,

1978.

This audit rcport is based on documents and workina

papers which support cach of the factual statements. They form

part of the record upon which the Co~~ission based its decisions

on the matters in the report and were available to Commissioners

and appropriate staff for review.

B. Key Personnel

The principul officers duri~g the period audited

were Mr. J. C. Dillon, Jr., Chairman and r~r. Robert J. Burke,

Treasurer •

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The audit included such tests as verification of

total reported receipts and expenditures and individual

transilctions; review of required supporting documentat i on and

analy~~is of Committee debts and obligations; and such ot her

audit procedures as deemQd necessary under the circumstdnces.

II. Auditor's Statement

Tt is the opinion of the Audit staff, based upon examination

of the reports and statements filed and the records presented,

that the West Virginia State Democratic Telethon Committee is not

a political committee as defined bv Section 43l(d) of Title 2 of

the United States Code and therefore not subject to the jurisdiction of the Commission.

This opinion is based on the fact that the Committee had no

receipts or expenditures in connection with Federal elections

during the period audited. The Committee came into existence

to operate within West Virginia in conjunction with the

Democratic National Telethon III Committee and remained in exi ~~­

tence without requesting a waiver of reporting because of the

possibility of supporting Federal candidates in the future. The

Conunittee is receptive to beinq terminated as a political comrnittt·f'.

Rcconuncndation

Based upon the information presented in this report, the

Audit staff recommends that the Committee be administratively

terminated by the Commission and informed of the termination •