Part II

Overview of Committee

Committee Organization

Important Dates

Voters for Choice Friends of Family Planning

e Date of Registration

April 25, 1979

e Audit Coverage

January 1, 2001 - December 31, 2002

Headquarters

Washington, DC

Bank Information

e Bank Depositories

2

e Bank Accounts

1 Checking , 1 Investment Account

Treasurer

e Treasurer When Audit Was Conducted

Mary Jean Collins

e Treasurer During Period Covered by Audit

Mary Jean Collins

Management Information

e Attended FEC Campaign Finance Seminar _| Yes

e Used Commonly Available Campaign Yes
Management Software Package

e Who Handled Accounting and Paid Staff

Recordkeeping Tasks

Overview of Financial Activity

(Audited Amounts)

Cash on hand @ January 1, 2001 $ 84,370
Receipts

o Contributions from Individuals 577,573
o Contributions from Political Committees 5,855
o Other Receipts 123,363
Total Receipts $ 706,791
Disbursements

o Operating Expenditures 699,069
o Contributions to Fed. Candidates 18,588
o Other Expenditures 78,806
Total Disbursements $ 796,463
Cash on hand @ December 31, 2002 $ -5,302


o If the committee does not receive a proper reattribution within 60 days
after receiving the excessive contribution, refund the excessive portion to
the donor. 11 CFR §§103.3(b)(3), (4) and (5) and 110.1(k)(3)Gi)(B).

Reattribution of Excessive Contributions. Commission regulations permit committees
to ask donors of excessive contributions (or contributions that exceed the committee’s net
debts outstanding) whether they had intended their contribution to be a joint contribution
from more than one person and whether they would like to reattribute the excess amount
to the other contributor. The committee must inform the contributor that:
1. The reattribution must be signed by both contributors;
2. The reattribution must be received by the committee within 60 days after the
committee received the original contribution; and
The contributor may instead request a refund of the excessive amount. 11 CFR
§110.1(k)(3).
Within 60 days after receiving the excessive contribution, the committee must either
receive the proper reattribution or refund the excessive portion to the donor. 11 CFR
§§103.3(b)(3) and 110.1(k)(3)Gi)(B)- Further, a political committee must retain written
records concerning the reattribution in order for it to be effective. 11 CFR §1 10.1(1)(5).

Revised Regulations Applied. The Commission recently adopted new regulations that
allow committees greater latitude to reattribute contributions to joint account holders and
has decided to apply these regulations to current matters. The Audit staff has evaluated
the excessive contributions discussed below using the new regulations.

Facts and Analysis

‘A review of contributions from individuals indicated VEC received contributions from
eight individuals that appeared to exceed contribution limits by $23,953. Seven of the
contributions in question were either credit card contributions or written on a check that
identified only one accountholder. The other was a contribution of stock owned by a
single individual. Documentation that the contributions were reattributed to other
individuals was not made available during audit fieldwork.

VFC deposited the funds into the federal account and untimely transferred $18,253 to the
non-federal account. The transfers to the non-federal account were made between
October 2002 and August 2003, more than a year after VEC received the contributions.
Of the $18,253 in transfers, $16,053 was designated by contributors for non-federal
activity; the remaining $2,200 was undesignated. In addition, there remained $5,700
($23,953 - $18,253) in excessive contributions from three individuals that was not
transferred to the nonfederal account. The $5,700 includes one contribution for $5,000
that was designated by the contributor for non-federal activity; the remaining $700 was
undesignated. VFC maintained sufficient funds in the federal account to refund most of
the excessive contributions when they were received.

The Audit staff presented this matter to VFC representatives during the exit conference

along with a schedule of possible excessive contributions. Representatives for VFC


Part IV
Findings and Recommendations

| Finding 1. Disclosure of Operating Expenditures

Summary

A sample review of operating expenditures itemized on the disclosure reports filed with
the Commission revealed that for approximately 21% of the sample items VFC did not
disclose, or inadequately disclosed, the payees’ addresses. In response to the Audit
staff’s recommendation, VFC filed amended reports that adequately disclosed the
missing information.

Legal Standard
Reporting Operating Expenditures. When operating expenditures to the same person
exceed $200 in a calendar year, the committee must report the:

e Amount;

e Date when the expenditures were made;

e Name and address of the payee; and

¢ Purpose (a brief description of why the disbursement was made). 2 U.S.C.

§434(b)(5)(A) and 11 CFR §104.3(b)(3)(i).

Facts and Analysis

A sample review of disbursements itemized on Schedule B (Itemized Disbursements)
revealed that for approximately 21% of the sample items VFC did not disclose, or failed
to adequately disclose, the payees’ addresses. Most of these disclosure errors occurred
during the period January through April of 2001. A 100% review of disbursements
reported in that time period determined that for 72 of 83 itemized disbursements (87%)
the payee addresses were not disclosed or not adequately disclosed.

The Audit staff presented this matter to VFC representatives during the exit conference
and provided a workpaper that showed the disbursements that were made during the
period January through April of 2001 for which the payees’ addresses were missing or
inadequate. Representatives for VFC stated that amended reports would be filed to
disclose the payee’s addresses.

Interim Audit Report Recommendation and Committee Response
In response to the Audit staff’s recommendation, VFC filed amended reports that
adequately disclosed addresses for the disbursements noted above.


Part III
Summaries

Findings and Recommendations

Finding 1. Disclosure of Operating Expenditures

A sample review of operating expenditures itemized on the disclosure reports filed with
the Commission revealed that for approximately 21% of the sample items VFC did not
disclose, or inadequately disclosed, the payees’ addresses. In response to the Audit
staff’s recommendation, VFC filed amended reports that adequately disclosed the
missing information.

(For more detail, see p. 4)

Finding 2. Disclosure of Occupation and Name of
Employer

VFC failed to disclose occupation and/or name of employer for 36% of the contributions
from individuals itemized on the disclosure reports filed with the Commission. The
Audit staff recommended that VFC contact each contributor for whom such information
was lacking, submit evidence of such contact, and disclose any information received in
amended reports. In response, VFC provided evidence of its efforts to obtain the missing
information and filed amended reports that corrected the public record.

(For more detail, see p. 5)

Finding 3. Receipt of Contributions in Excess of the
Limitation

A review of contributions from individuals indicated that VFC received contributions that
appeared to exceed the limitation for contributions by $23,953. This amount includes
$18,253 that was untimely transferred to the non-federal account, and $5,700 that
remains unresolved. The Audit staff recommended that VFC either provide evidence
demonstrating that the contributions were not excessive, transfer the excessive
contributions to the non-federal account or issue refunds to the contributors, as
appropriate. In response, VFC provided copies of checks (fronts only) to the non-federal
account in the amount of $5,000 and to four contributors to issue refunds totaling $2,900.
The response stated that copies of the canceled checks would be provided when received
from VFC’s bank.

(For more detail, see p. 6)


information was missing. Representatives for VFC stated that the contributors would be
contacted in an attempt to obtain the required information and that amended reports
would be filed.

Interim Audit Report Recommendation and Committee Response
The Audit staff recommended that VFC provide evidence that best efforts were exercised
to obtain and submit the required contributor information. Absent such evidence, VFC
must make an effort to contact those individuals for whom the required information is
missing or incomplete, provide documentation of such contacts (such as copies of letters
to the contributors and/or phone logs), and amend its reports to disclose any information
obtained from those contacts.

In response, VFC provided evidence of its efforts to obtain the missing information and
filed amended reports that corrected the public record.

Finding 3. Receipt of Contributions in Excess of the
Limitation

Summary
A review of contributions from individuals indicated that VFC received contributions that

appeared to exceed the limitation for contributions by $23,953. This amount includes
$18,253 that was untimely transferred to the non-federal account, and $5,700 that
remains unresolved. The Audit staff recommends VFC either provide evidence
demonstrating that the contributions were not excessive, transfer the excessive
contributions to the non-federal account or issue refunds to the contributors, as
appropriate. In response, VFC provided copies of checks (fronts only) to the non-federal
account in the amount of $5,000 and to four contributors to issue refunds totaling $2,900.
The response stated that copies of the canceled checks would be provided when received
from VFC’s bank.

Legal Standard
Political Committee Limits. A political committee may not receive more than a total of

$5,000 per year from any one contributor. 2 U.S.C. §§441a(a)(1)(C), (2)(C) and (f); 11
CFR §§110.1(a) and (d) and 110.9(a).

Handling Contributions That Appear Excessive. If a committee receives a
contribution that appears to be excessive, the committee must either:
e Return the questionable check to the donor; or
¢ Deposit the check into its federal account and:
o Keep enough money in the account to cover all potential refunds;
o Keep a written record explaining why the contribution may be illegal;
o Include this explanation on schedule A if the contribution has to be
itemized before its legality is established;
o Seek a reattribution of the excessive portion, following the instructions
provided in Commission regulations; and


FEDERAL ELECTION COMMISSION

WASHINGTON, D.C 20463

September 27, 2004

MEMORANDUM

TO: ROBERT W. BIERSACK
PRESS OFFICER
PRESS OFFICE

FROM: JOSEPH F. STOLTZ ' Dy
ASSISTANT STAFF DIRECTOR
AUDIT DIVISION

SUBJECT: | PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON
VOTERS FOR CHOICE FRIENDS OF FAMILY PLANNING

Attached please find a copy of the final audit report and related documents on
Voters for Choice Friends of Family Planning, which was approved by the Commission
on September 10, 2004.

Informational copies of the report have been received by all parties involved and
the report may be released to the public.

Attachment as stated

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


excessive or that they were timely Teattributed, refunded, or transferred to the
non-federal account.

¢ Absent such evidence, transfer the $5,000 designated by the contributor for non-

federal activity from the federal account to the non-federal account and provide
evidence of the transfer (photocopies of the front and back of the negotiated

instrument); and refund $2,900 ($2,200 + $700), to four contributors and provide
evidence of such refunds (copies of front and back of negotiated refund checks);?

and

° If funds were not available to make the necessary transfer and refunds, disclose
the amounts due as debts on Schedules D (Debts and Obligations) until funds
become available to make the transfer and refunds 3

In response, VFC Provided copies of checks (fronts only) to the non-federal account to
ake the $5,000 transfer and to the four contributors to issue tefunds totaling $2,900.

i -federal account, the
> In the case of the excessive contributions untimely transferred ($2,200) to the non-fe

i fers.
Committee may reverse these trans! :
> VFC reported a cash-on-hand-balance on May 31, 2004, of $5,446.


Finding 2. Disclosure of Occupation and Name of
Employer

Summary

VFC failed to disclose occupation and/or name of employer for 36% of the contributions
from individuals itemized on the disclosure reports filed with the Commission. The
Audit staff recommended that VFC contact each contributor for whom such information
was lacking, submit evidence of such contact, and disclose any information received in
amended reports. In response, VFC provided evidence of its efforts to obtain the missing
information and filed amended reports that corrected the public record.

Legal Standard

A. Required Information for Contributions from Individuals. For each itemized
contribution from an individual, the committee must provide the contributor’s occupation
and the name of his or her employer. 2 U.S.C. §431(13) and 11 CFR §§100.12.

B. Best Efforts Ensures Compliance. When the treasurer of a political committee
shows that the committee used best efforts (see below) to obtain, maintain, and submit
the information required by the Act, the committee’s reports and records will be
considered in compliance with the Act. 2 U.S.C. §432(h)(2)(i).

C. Definition of Best Efforts. The treasurer and the committee will be considered to
have used “best efforts” if the committee satisfied all of the following criteria:

e All written solicitations for contributions included:

o Aclear request for the contributor's full name, mailing address, occupation,
and name of employer; and
o. The statement that such reporting is required by Federal law.

e Within 30 days after the receipt of the contribution, the treasurer made at least one
effort to obtain the missing information, in either a written request or a
documented oral request.

© The treasurer reported any contributor information that, although not initially
provided by the contributor, was obtained in a follow-up communication or was
contained in the committee’s records or in prior reports that the committee filed
during the same two-year election cycle. 11 CFR §104.7(b).

Facts and Analysis

The Audit staff reviewed all contributions from individuals itemized on Schedule A
(Itemized Receipts) for adequate disclosure of occupation and name of employer. The
review determined that VFC failed to disclose or did not fully disclose the contributor’s
occupation and name of employer for 185 (36%) of the 509 contributions required to be
itemized. In addition, VFC did not maintain documentation that demonstrated that best
efforts were exercised to obtain the missing information.

The Audit staff presented this matter to VFC representatives during the exit conference
along with a schedule of contributors for whom the occupation and name of employer


Part I
Background

Authority for Audit

This report is based on an audit of Voters for Choice Friends of Family Planning (VFC),
undertaken by the Audit Division of the Federal Election Commission (the Commission)
in accordance with the Federal Election Campaign Act of 1971, as amended (the Act).
The Audit Division conducted the audit pursuant to 2 U.S.C. §438(b), which permits the
Commission to conduct audits and field investigations of any political committee that is
required to file a report under 2 U.S.C. §434. Prior to conducting any audit under this
subsection, the Commission must 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. 2 U.S.C. §438(b).

Scope of Audit

This audit examined:

The receipt of excessive contributions and loans.

The receipt of contributions from prohibited sources.

The disclosure of contributions received.

The disclosure of disbursements, debts and obligations.

The disclosure of expenses allocated between federal and non-federal accounts.
The consistency between reported figures and bank records.

The completeness of records.

Other committee operations necessary to the review.

SNAWARYWND

Changes to the Law

On March 27, 2002, President Bush signed into law the Bipartisan Campaign Reform Act
of 2002 (BCRA). The BCRA contains many substantial and technical changes to the
federal campaign finance law. Most of the changes became effective November 6, 2002.
Except for the period November 7, 2002, through December 31, 2002, the period covered
by this audit pre-dates these changes. Therefore, the statutory and regulatory
requirements cited in this report are primarily those that were in effect prior to November
7, 2002.


Table of Contents

Part I. Background
Authority for Audit
Scope of Audit
Changes to the Law

Part II. Overview of Committee

Committee Organization
Overview of Financial Activity

Part III. Summaries

Findings and Recommendations

Part IV. Findings and Recommendations
Finding 1. Disclosure of Operating Expenditures
Finding 2. Disclosure of Occupation and Name of Employer
Finding 3. Receipt of Contributions in Excess of the Limitation

Page

wn


Report of the
Audit Division on
Voters for Choice

Friends of Family Planning
January 1, 2001 - December 31, 2002

Why the Audit

Was Done

Federal law permits the
Commission to conduct
audits and field
investigations of any
political committee that is
required to file reports
under the Federal
Election Campaign Act
(the Act). The
Commission generally
conducts such audits
when a committee
appears not to have met
the threshold
requirements for
substantial compliance
with the Act.' The audit
determines whether the
committee complied with
the limitations,
prohibitions and
disclosure requirements
of the Act.

Future Action
The Commission may
initiate an enforcement
action, at a later time,
with respect to any of the
matters discussed in this
report

1 2US.C. §438(b).

About the Committee (p. 2)

Voters for Choice Friends of Family Planning (VFC) is a
nonconnected political action committee. VFC qualified
for multi-candidate status on April 25, 1979 and is
headquartered in Washington, DC. VFC is in the process
of terminating as a political action committee and since
September 2003 has disclosed minimal financial activity.
For more information, see chart on the Committee
Organization, p. 2.

Financial Activity (p. 2)

e Receipts

o Contributions from Individuals $ 577,573
o Contributions from Political

Committees 5,855
o Other Receipts 123,363
o Total Receipts $ 706,791

e Disbursements

o Operating Expenditures $ 699,069
o Contributions to Federal Candidates 18,588
o Other Expenditures 78,806
o Total Disbursements $ 796,463

Findings and Recommendations (p. 3)

e Disclosure of Operating Expenditures (Finding 1)

¢ Disclosure of Occupation and Name of Employer
(Finding 2)

¢ Receipt of Contributions in Excess of the Limitation
(Finding 3)