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CONGRESSIONAL AUDIT RE?ORT

BERKLEY BEDELL

Candidate/Committee: The People to Re-Elect Bedell Committee

State: IO\'1a

District: 6

Location: Western Iewa - Sioux City

Political ?arty Affiliation: Democrat

~ajor Cpponent(s): JoAnne Soper - Republican

Other Candidates ~udi~ed: Soper

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''!ctes Cast: r._.~". eroe 0;;;; I • ~_i. =_1 ec~,'- on - Bedell. • e 13~oJ" 507 - Soper• • _ , 62 292

Primary El ecti er. - None

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iotal Receipts f~r P~riod: S99,220.19

iotal Expendit~res for ?~riod: S94,538.3i

First Elec~;c (;7 ~~oliC3b1e): 1974
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It 0 nor c1 b1e Be r k1cY ~J. Bed ell

"n(, Fed c rill nu i 1 din ~t

r t. Dod q (', I 0 \./ a 50 50 1

Dear Congressman Bedell:

[ nc los e d for .y 0 tJ r ; n f 0 rPl tl t ; 0 n i (l cOP.Y 0 f the fi na 1

uudi t rep 0 r t 0 f the P00 p 1(l to He - Po 1 e c t Bcd ell Comrli t tee wh ; c h

\oJ a sapp t'" 0 v(' d by l he Co 111miss ion 0 nnec e III her 1, 19 7 7 ·

As of this date, all audit reports pertainin~) to the

random audits conducted within your District have not yet

h P. Cnappro v P. d by t h(' Co rlln; s s ; 0 n . H0 \'1 eve r, wh ; 1e Comm; s S ; 0 n

I'oliey reqardinq thp public release of Congressional random

audit reports ;s ta issue the )"cpor"ts of all audits conducted

within the District as a full District release, the policy

f lIl" the r pro v ; des f 0 •• the pub 1 i cissua nee of an au d ; t report

\'J h ; eh has bee napP"00 v ed by the Commiss; 0 n for m0 rethan

thi ... ty d~lVS. Thet'cf(»"e, upon notice by return receipt that

your inforll~ational copy of the report has been received

( \.:; t h i n (\ Ii Pl" 0 xi mat c 1.Y f i ve cI a Vs ), ; t \-1 ill be iss ue d pub 1i ely

b.\' t hfl r 0 Pll'Ii ss ion a"~ 11 pat" t ; a 1 0i s t r ; c t r e 1e a s e •

Should you have questions reqardin~J the public release

ofthe s c l~ lJ d i t f e po r t s, p1 e G sec 0 n t act ~, reOav i d Fi s k e 0 f

t h(' Con::'1 i (~ c; i (' nit; Pr p s!; 0 f f ; ccat (? n2) ~.) 2 3- 4 0 6 5 0 r toll f r e e

a t (~~ ()(1) I:? . - 9 :> 3o. . f, ny C1 u est ion S you In.1 Y yet h a vcr e 1ate d

t (l r~ <1 t t [qo s c () V(\ r t.' d d uri 'H1 1. hP 11 U ci itor' i nthe a ud i t r enort

s h () ~, I ,1 bed i r fl C t. edt 0 r·~ r. Tho i~l it s H<1 S l~ 1h 0 ..' S tor t·, r. Cr a; q

r~ u (~ ~) l"\ 11 n f t l (' (HI d; t Di vis ion d t (:. 02, 523- 4155 0 rat the

a b n\' e toll f l" e e n u1'1 her.

Sincerely, ,.. )

./;'?.~ ,S j /~ /'t /l-l'-f.vT / .{,~_I~ Rob (' r t'rJ. Co <; t c1

AssistJnt ~t~ff nirector

for the ,"uoi t Division

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Ht·. ~, a cOo n a 1 d Sm; t h, Tr a S lB" P. r

I' l" 0 P1e toRe - (l 1e c t Bed ell C0 1~1I1l itte e

fl32 BadqpfO\J Buildinq

Sioux City, Iowa 51101

nell r Mr. Suti t h :

January 211 , 1978

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Enclosed for your information is a copy of the final

a u di t r P. p() r t 0 f the Peo p 1e toRe - f~ 1(l c t Bed e 11 COIn r1 itt c whie h

was approved by the Commission on December 1, 1977.

As of this date, all audit reports pertaining to the

random audits conducted within your Oistrict have not yet heen approved by the Commission. However, while Commission

pol icy}'e q u r din 9 the p u h 1 ; c t

1

e 1 e a s e 0 fr.o n g res s ; 0 na 1 ran d 0 m

audi t r'eports ; s to issue the rCDorts of all iludi ts. conducted

within the District as a full District release, the policy

further provides for the public issuance of an audit report

\'J hie h has bee n l\ p pro ved by the ComIII iss ; 0 n for III0 rethan

t h; r t y day s . The t" e for' e, upo" not; ce lJ y ret ut· n r ece ; pt t hat

your informational copy of the report has bc~n received

( \AJ i t h ina p n r n x ; III <1 tel y f ; 'J e du.Y s ) It i l \'J ill be iss u e d pub 1 i c 1y

ny the C0 ::1m; s <; ion a sapart i a 1 n; s t ric t r e 1e () 5 e ·

Should you have <1uestions r~Q(lr('inq the public release

ofth c s e u lJ d i t r (~ pOl" t C;.. D 1e a sec0 fl t act ~1 r. na v i d F i s k e 0 f

the Co 1'1111 ; 5 s i () n I s r 11 P S 5 () f f ; c a t (20 () 5 2 3 - 406 5 0 r toll f r e e

(1. t (p, 00) : ~ 2.l - 9 5 30 • f\ n.Y (~U est ion s you Illll Y yet h a v ere1 a t d

t 0 l~lll t t e r S C0 vet" e d dU l" ; nq the a ud itor i nthe a ud; t '1 e p 0 r t

s h0 til d bed ire etc d t 0 ~1 r -: h0 III II s II as (~ 1h0 r s tor ~~ r. era i q

f\ usse 11 0 f t h (' f, u d ; to; vis ion a t (2 0;) S2 3- 4 15 5 0 rat the

abo v l'" t 0 1 1 f r e e n lJ I:1bet" •

Sincerely,

Hobpt"t \J. Cos ta

1\. c; (, ; s t il n t S1. II f f nire c tor

for the J\udit Division

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REPORT OF THE AUDIT DIVISION

ON

TUE PEO PL[ TOR E- [ L[ CT B[ 0ELL C0~1 r-1 ITT E[

A. Overview

This report is based upon an audit of The People

to He-Elect Bedell Committee (lithe Committee ll ) undertaken by

the Audit Division of the Federal Election Commission in

accordance with the Commission's audit policy to determine

\'J hc the r the )'1 e has beencomp 1ian ce wit h the pro vis ion s 0 f the

Federal E1pction Campaign Act of 1971, as amended (lithe Act").

The cJ U d i t \'J d S con duc ted pursua nt to Sec t ion 438 ( a ) ( 8) 0 f Tit1e

2 of the United States Code which directs the Commission to

make from time to time audits and field investigations with

respect to l'cports and statements filed under the provisions of the Act.

The Be de 11 Rall yeoIIIIll; t tee 0 rig ina 11y reg; s t e red \'1 i t h

the Federal flection Commission on January 5, 1976, as an affiliated committre of the terminating People for Bedell Committee

( act i ve dur ; r, 9 the 1974 campa i 9n ) • \-1 hen the Rall y Commit tee I s

fun d 1" dis ; fl ~, il Ct ; v i 1:yen ded, ; t t er m; nat P. rl 0 n f"' arc h 31, 1976, and

trlilnsferreci its cash-on-hand into The People to Re-Elect Bedell

COIl\I!li t lc(~, \'Jhich r'poistercd \,J; th the fedpr"al E1 cction Commission

on \1 J n U it r y 28, 1976 :' The Pe0 p 1e toRe - [ 1pc t c dell Co mOlitte e

; s the pr inc i pill C Cl IIIPa i 9ncorn 111; t tee for t tll~ H0 n0 l" a b1e Be r k1ey

Bed (I 11, CII ndid il t 0 for r p. - r 1e c t ; 0 n tothP. U0 S. H0 use 0 f Rep res e ntaL;vps fr(J1~l the 6th District of Io\',a. Th~ ComMittee maintained

its headquarters in Sioux City, Iowa.

The audit covered the period D~cember 9, 1975, through

J 1I ne 30, 197./ . [1 u l~ i nq t h() t per' i 0 d the C0 IIIIll; t tee rep 0 r ted b p 9 inn i n9

ca ~. tl 0 f S- 0-, tot it 1 r e c e; pt s 0 f $q9 , ?- 2O. 19, totalexpen di t ur (~s 0 f

$9·. , 380 R7, and end i n9 cas h 0 f Stl , 681 • 3? .
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This audit report is based on documents and working pap~rs supporting each of the factual stat~ments. They form

part of the record upon which the Commission based its decisions

on the matters in this report and were available to Commissioners

and appropriate staff for review.

B. Key Personnel

The principal officers of the Committee during the

period of the audit were Mr. MacDonald Smith, Chairman, and

Co-Treasurer; Mr. Dean Loss and Mr. H. F. Schroeder, Co-Vice

Chairpersons and Ms. Maxine Yager, Co-Treasurer.

C. Scope

The audit included such tests as verification of

reported receipts and expenditures and individual transactions;

review of required supporting documentation; analysis of Committee debts and obligations; and, such other audit procedures

as deemed necessary under the circumstances.

II. Auditor's Statement and Description of Findings

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 deficiencies noted below, the reports and

statements of the People to Re-Elect Bedell Committee 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 with the Federal Election Campaign Act were

discovered during the course of the audit.

A. Itemization of Individual Contributors

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

Code requires a committee to disclose the full name, mailing

address, occupation and principal place of business of each

person whose contributions to or for the committee aggregate in excess of $100 during a calendar year, together with the

amount and date of each contribution.

During the audit the following findings were identified:

a. Fourteen contributions (16.0~ of the itemizable

contributions) aggregating io excess of $100 from 12 individuals

were reported as uniternized rCLeiots. The contributors' names

and c; ties 0 f ... e siden ce \oJ ere dis c los cd 0 11 sup p1emcnt II r y a t t achmcnts submitt{'d in partial support of unitemized totals for

vol until."y d; s c los ureofall con t ... ; but 0 r s . The sec 0 nt rib uti 0 ns ,

ran ~J i ngin a111 0 tin t s from SlOt 0 S100, tot alE? d S1,0S0 (1 2 . 3~.~ 0 f the

i t eoli 7. ab1e am0 unt ) .

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b. Five (5) contributions (4.6~ of the itemizab1e

contributions) aggregating in excess of $100 had been received,

but were neither itemized as required nor disclosed on a supplementary attachment. The amounts were included as unitemized

receipts. These contributions, ranging in amounts from $10 to

$100, totaled $292.50 (4.5% of the itemizable amount).

c. The reported amounts for four (4) contributions

differed from the amounts entered on the Committee's records.

The net result of this amounted to an underreporting of $63

(.7% of the total itemizable amount).

d. The Committee's reports omitted adequate information regarding the occupation and principal place of

business for 40 contributions requiring itemization, representing

45.5% of the total itemizable contributions.

e. The Committee failed to itemize an in-kind

contribution of $110.00 {1.3% of the total itemizable amount}.

We recommended to the Committee that reasonable

attempts be made to obtain the necessary contributor information and to include this additional information or

documentation of bpst efforts to obtain such information

with other corrections and additions in a comprehensive amendment for 1976. The treasurer acknowledged their need

to correct the public record regarding these matters. The

Committee agreed to obtain the information and to file an

amended report as recommended.

Recommendation

It is the recommendation of the Audit staff that the

Commission take no additional action since the appropriate amendment was received on September 12, 1977.

B. Itemization of Transfers Received

Section 434(b)(4) of Title 2 of the United States

Code requires that all funds transferred between political

committees be itemized, regardless of amount.

During the audit, it was determined that three (3)

t ran sfers (7. 7~/. 0 f the t ran sfers r ece; vcd) from pol i tic ale 0 mmittecs had not been itemized as required. These transfers,

ran gingin am0 Unt s fro 111 S25 to S250, totale d S375 (1. 6~~ 0 f the

total itemizable amounti .

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Werec() III : I at I ndp J t tL1 t t h f~ r 0 11.11. ittf' i t CIII i ze thes e trilnr,f~r~ clnd adju<;l thf' ,1J'p"C'pr;dtp ~umm(lry sheet totals in

i l s COlli Pr p hp n s i v e dillend nH~ f1 t f n r' 19 1(; . The C0 litIII ittec a9 r eed

to amend thec;e items .Jccordingly.

As the information was corr~ctly disclosed in the amendment

t't'('cived Septpn1pcr 12, 1977, no further action is recommended.

c. Dis c 1J)_~_l!}' p. 0 fOeb t sand 0b 1J..llil.-~iQ~

Section 434(b){12) of Title 2 of the United States

CodC' requir-es di~,(:losure of the amount. and natut"e of debts

0\'1 e d by the CO III ill ittee and the con tin U 0 us rep 0 r tin 9 0 f tho se

debts until extinguished.

The review of debts and obligations determined that,

as of June 30, 1977, the COMmittee h~d outstanding debts of

$602.69 owed to the Candidate for campaign-related expenses, and

a $2,500 outstanding bank loan which were not disclosed as debts

and 0 b1 i 9uti 0 nSO\'Ied by the COlli III ittee • Her ecommen dedthat the

Committee submit an amended FEC Schedule C to reflect the debts

yet outstanding. The treasurer agreed to amend the report as

requested.

Recommp.ndlltion

As the a pp 0 p ,.. i ate i nformat ion \'J il S dis c los edon the comprehensive amendment for 1977 received on September 12, 1977,

we r ecomIIIend n0 fur' the t~ act ion •

D. othe r r·' a t t er s

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Pt' esen t E: d bel 0 \./ al'e III <1 t t c l~ s not ed duri ng the a ud; t for

\'Ihich the staff feels no Cor:l:nission action is \'JarrantC'd:

a . 0U r' ; n9 the r c\' i e\" 0 f l~ CC e ; pts, i t \,' as not edthat

i n 12 0 f 19 ins tan cesthceoIi: :'1; t tee f ail edt() dep0 sit r ece i pt s

f "0m 17 fun drII ; sin q ev(' nt S \'J; t hi nthe t' equi t~ edt en (1 0) day

period. One (1) d~rosit w~s 73 days and anoth0r 46 days from

•. c Ce i pt. The r eIil a i ni n~l ten (1 0) did not excccd 23 day s .

The Co IIIIII itt C G \., asadvis e d 0 f t hp pro vis; 0 nS 0 f

PJ r' t 10 . 3(a) n f t h0 r. () dt"' 0 f r f~ dera 1 neg u1at; () n reg J r din 9

dcpo sit t i IIIerequi \" em cnt s . -; he Tr' ea s ut~ e t' as ured t hut f ut ur e

dcpo sits \v ill beti 1:1 ely .
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b • n1I r i nCJ the c () t It~ (~P 0 f t h(' a ud it. i t \'1 as f 0 Und t hat

11 0 f 245 totalexpP. nd i t lJ r e ~, ,1 r; q " eqat i nq i n exc cS S 0 f $100 1aeke d

" " 4' q U (1 t c 5 U Ppo r tin ~J doc UIII en ttl t ion. IhHoJ e v r, d 11 can cell e d che c kS

\'1 " "l' t1 Vu i 1t1 b 1can d l hc c xpen d i t ures we r erep0 r ted pro per 1y to

lhe Commission.

We,'r. c0 mm end ecl t hat the Commit tee ; ncrease ; t s

future efforts to obtain sufficient documentation of expenditures

d ~, r equi red i n Par t 10 • 9 ( c) 0 f the Cod (t 0 f r e<.I f! r'il 1 r~ e 9u1uti 0 ns •

1.,p Tre(15ut"cr repl ied ('lffirmativcly to the notification.

c. During review of Committee solicitation material,

it was found that th~ required solicitation notice was either

oIII itt (~ d f) r ina 1 t e ''" e d for 111 0 n t\'/0 (2) 0 f f 0 ur (4) pie c e s 0 f

literature.

The Committee was advised of its responsibility

reg a.'din 9 t his r equi ,'eIII ent . The Trea surera ssured us t hat a11

f ut ur e Co Tnmit tee sol ; c ; tation mute ria 1 V/O U1d con t a i nthe n ces sa ry

notice prescribed in Section 435{b) of Title 2 of the United

States Code.

All of the findings listed above appear to have

been caused by cl~rical oversight.
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