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.HOERAl. H[CTION COMi\·\ISSION

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The Comnlittee filed an April 10, 1978 report which reflected

additional acti~ity of $1,329.00 in receipts and $1,404.00

in expenditures relating to the refunding of apparent corporate

c6ritributions (see Finding A) • .

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I.' Ba:ckgrou~

A. Overview

REPORT OF THE AUDIT DIVISION

ON THE

HEARNES:FOR SENATOR COMMITTEE

, This report, is 'based on anaudit of the lIearnes for'

Senator Committee (lithe Committee") ,undertaken by the Audit

'Division of the Federal Election Commission in 'accor'dance with - ,·the Commission's audit policy to 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 which directs the Commission to make, from time to . time audits and field investigations \'lith respect to reports

'and statements filed under the provisions of the Act., .,

" " The Committee registered with the OfficeoLthe ,.' , Secret.al~Y of the Senate on twlarch 6, 1975 in'support of Warren

E. lIearnes, candidate for th60ffice of United States Senator

from the State of Missouri. On January 13, 1975, the Committee

was designated by the Candid;tt:e as his principal campaign

conmlittee for the 1976 election. The Committee maintained its

headquarters in Charleston, !-lissouri.

In, accordance "with'"the 'Commission IS Audit "'Po1icy , the

audit covered the period from January 1, 1975, through September

30,1977, the final coverage date of the termination report filed

by the Committee. 1/ The Committee reported a beginning cash

balance as of December 24, 1974 of $-0- , total receipts of' , $694,148.05, total expenditures of $694,148.05 and a closing cash

ba1;tnce of $-O~ on September 30, 1977 •

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A. Apparent Corporate Contributions

II. Auditor's Statement and Description of Finding

TENURE

3/03/75-06/02/75

6/02/75-09/30/77

3/03/75-06/02/75

6/02/75-08/17/75

8/17/75-10/01/75

10/01/75-03/31/77

4/01/77-09/30/77

TITLE

Chairman

Jr. Chairman

Treasurer

Treasurer

Treasurer

Treasurer

Treasurer

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

of the reports and statements filed, and the records presented,

that, except for the deficiency noted below, the reports and statements of the Hearnes for Senator Conunittec fairly present the

financial activities of the Committee for the period covered by

the audit. Further, except as noted below, no material problems

in complying \·,i th the Federal Election Campaign Act were discovered

during the course of the audit.

B. Key Personnel

The principal officers of the Committee 'and their tenure

during the period of the audit were:

Section 441b(a) of Title 2, United States Code, states,

in part, that it is unlawful for any corporation to make a contribution or expenditure in connection with any election to any

Federal office and unlawful for any Federal candidate, political

com."ui t tee, 01" other person knowingly to accept or receive any

contribution from a corporation.

The audit included such tests as verification of

reported receipts and expenditures and individual transactions;

review of required suppor.ting documentation; analysis of

Committee debts and obligations; and, such other audit procedures

as deemed necessary under the circumstances.

This audit report is based on documents and working

papers which support each of the factual statements. They form

part of the record upon which the Commission based its decisions

on the matters in the report and were available to Commissioners

and appropriate staff for review.

NAME

C. Scope

Robert H. Coon

Gregory J. Nooney,

Robert E. Hearnes , Edwin C. Houx

Robert E. Hearnes

Willard Wilkinson .. Robert E. Hearnes

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Our review of thc Committec's contribution records

indicated that 18 contributions (totaling $1,579.00) were received

from 10 apparent corporatc cntities. The Committce was informed

on Fcburary 9, 1978 by thc Audit staff of the apparent corporate

status.

Fifteen of the apparent corporate contributions were

refunded by thc Committee on February 10, 1978. Further information

obtained fr.om the contributors indicated that the remaining three

(3) contributions from three (3) of the entities were not, in fact,

from corporate funds.

This matter was referred to the Commission's Office

of General' Counsel on February 17, 1978 where Matter Under Review

541-78 was initiated. The review conducted by the Office of General

Counsel confirmed that seven (7) of these contributions (totaling

$1,104.00) were from corporate sources.

Based on these facts and the Committee's prompt action

in refunding the monies, the Commission· voted on June 28, 1978

to close the file on the matter with no further action •

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FEDERAL elECTION COMMISSION

B.!i I\. SIRH' "w.

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MAY BE UX'ATED·IN A CXH'LETED aH'LIANCE ACrI~

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