To manage its financial activity, FOTJ maintained one bank account.
From this account, approximately 800 disbursements were made, totaling approximately
$1,307.486. FOTJ’s receipts were comprised of approximately 2,860 contributions from
individuals, totaling $585,782; 270 contributions from political committees, totaling
approximately $405,157, and, three loans from the candidate in the amount of $340.000
Accounting and recordkeeping functions were performed by campaign staff, which
utilized commonly available campaign management software.

D. AUDIT SCOPE AND PROCEDURES
Following Commission-approved procedures, the Audit staff evaluated

various risk factors and as a result, the scope of this audit was limited to the following
general categories:

1. The receipt of contributions or loans in excess of the statutory
limitations;
2. the receipt of contributions from prohibited sources, such as those

from corporations or labor organizations:

3. proper disclosure of contributions from individuals, political
committees and other entities, to include the itemization of
contributions when required, as well as, the completeness and
accuracy of the information disclosed;

4. the accuracy of total reported receipts, disbursements and cash
balances as compared to bank records:

5. adequate recordkeeping for receipts transactions; and,

6. other audit procedures that were deemed necessary in the situation.

As part of the Commission’s standard audit process, an inventory of
FOTJ’s records was conducted prior to the audit fieldwork to determine if its records
were materially complete and in an auditable state. Based on our review of the records
presented, it was concluded that they were materially complete and fieldwork began

immediately.

Based upon our examination of the reports and statements filed, and the
records presented by FOTJ, no material non-compliance was discovered.

Page 20f 5 Approved 10/04/01



CHRONOLOGY

FRIENDS OF TIM JOHNSON
Audit Fieldwork 8/13/01-9/27/01
Final Audit Report Approved 10/04/01

Page Sof 5 Approved 10/04/01



FEDERAL ELECTION COMMISSION AIT

WASHINGTON D (20465

REPORT OF THE AUDIT DIVISION
ON THE
FRIENDS OF TIM JOHNSON

1 BACKGROUND

A. AUDIT AUTHORITY

This report is based on an audit of Friends of Tim Johnson (FOTJ),
undertaken by the Audit Division of the Federal Election Commission (the Commission)
in accordance with the provisions of the Federal Election Campaign Act of 1971, as
amended (the Act). The audit was conducted pursuant to Section 438(b) of Title 2 of the
United States Code that 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 subsection, 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.

B. AUDIT COVERAGE

The audit covered the period from October 14, 1999 (the date of FOTJ’s
initial deposit) through December 31, 2000. FOTJ reported a beginning cash balance of
$-0-; total receipts of $1,338,024; total disbursements of $1,311,887; and a closing cash
balance of $26,137.'

Cc COMMITTEE ORGANIZATION

FOTI registered with the Commission on November 9, 1999 as the
principal campaign committee for Timothy Johnson, Republican candidate for the U.S.
House of Representatives from the state of IHinois, Fifteenth District, for the 2000
election. FOTJ maintains its headquarters in Champaign, II and its treasurer is Mr. James
Bray.

' All figures in this report have been rounded to the nearest dollar

Page lof 5 Approved 10/04/01


FEDERAL ELECTION COMMISSION

WASHINGTON. DC 20463

October 5. 2001

Mr. James Bray, Treasurer
Friends of Tim Johnson
PO Box 17097

Urbana, IL 61803

Dear Mr. Bray:

Attached please find the Report of the Audit Division on the Friends of Tim
Johnson (Final Audit Report). The Commission approved the report on October 4, 2001.

The Commission approved Final Audit Report will be placed on the public record
on October 15, 2001. Should you have any questions regarding the public release of the
report, please contact the Commission's Press Office at (202) 694-1220. Any questions
you have related to matters covered during the audit or in the report should be directed to
Robert Morcomb or Marty Favin of the Audit Division at (202) 694-1200 or toll free at
(800) 424-9530.

Sincerely,

sgh 7

Robert J. Costa
Assistant Staff Director
Audit Division

Attachment as stated

ec: William J. McGinley, Counsel, Patton Boggs LLP
Kenneth P. Jones, Counsel, Patton Boggs LLP

Page 3 of 5 Approved 10/04/01



FEDERAL ELECTION COMMISSION

WASHINGTON DC tan

October 17, 2001

MEMORANDUM

TO: RON M. HARRIS
PRESS OFFICER
PRESS OFFICE

FROM: ROBERTJ.COSTA = A/
DEPUTY STAFF DIRECTO
AUDIT DIVISION

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON
FRIENDS OF TIM JOHNSON

Attached please find a copy of the final audit report and related documents on
Friends of Tim Johnson, which was approved by the Commission on October 4, 2001.

Informational copies of the report have been received by all parties involved and
the report may be released to the public on October 17, 2001.

Attachment as stated

cc: Office of General Counsel
Office of Public Disclosure
Reports Analysis Division
FEC Library


Page 4 of 5

Approved 10/04/01


REPORT OF THE AUDIT DIVISION
ON

FRIENDS OF TIM JOHNSON
Approved October 4, 2001

FEDERAL ELECTION COMMISSION
999 E STREET. N.W.
WASHINGTON, D.C.



TABLE OF CONTENTS

FRIENDS OF TIM JOHNSON

PAGE

Final Audit Report 1
Background 1
Transmittal to Committee 3

Chronology 5