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MEMORANDUM:

~EDERAL ELECTION COMMISSION

WASHINGTON, 0 C 204&.1

April 28, 1986

TOI

PROM:

SUBJECT:

FRED EILAND

PRESS OFFICER

ROBERT J. COSTA

ASSISTANT STAFF DIRE R

AUDIT DIVISION

PUBLIC ISSUANCE OF FINAL AUDIT REPORT - COMMITTEE ON ARRANGEMENTS FOR THE 1984 REPUBLICAN

NATIONAL CONVENTION

Attachea please find a copy of the final audit report on the

Committee on Arrangements for the 1984 Republican National

Convention which was approved by the Commission on April 23, 1986.

Informational copies of the report have been received by all

parties involved and the report may be released to the public.

" Attachment as stated

C

C1" cc: FEe Library

RAD

C~ Office of General Counsel

Public Record

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• FEDERAL ELECTION COMMISSION

WASHINGTON. D.C. 20463

REPORT or TIIB AUDI., DIVISION

OR '1'IIB

COMMlftBB ON ARRANGBMBNTS POR '1'IIB

1984 REPUBLICAN lIA'l'IONAL CORVBR'1'ION

I. Background

A. Overvie"

This report ie ba.ed on an audit of the Committee on

Arrangements for the 1984 Republican .ational Convention (-the Committee-), to determine whether tbere haa been compliance with

the provisions of the Pederal Blection Campaign Act of 1971, a.

ce amended (-the Act-). The auait .a. conducted pur.uant to Section

9008(g) of .,itle 26, United States Code which direct. the

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commi••ion to conduct an examination and audit of the payments for Presidential nominating conventions no later than December 31

of the calendar year In which the convention i. held.

The Committee regi8tered with the Pederal Blection

Commission on Septe.ber 7, 1982 as an affiliate of the Republican Rational Committee. On June 2, 1983, the RepUblican Rational

Committee designated the Committee a. the convention committee of

the RepUblican Party. The Committee .aintains its headquarters in Washington, D.C. The auait covered the period from February 17, 1982 through September 30, 1984. During the period, the

Committee reported a beginning cash balance of $-0-, total

receipts of $8,753,193.79, total expenditures of $8,437,961.92,

and an ending cash balance on Sept..ber 30, 1984 of $315,231.87.

In addition, certain financial activity bas been reviewed through October 31, 1984. "

Thi. audit report i8 bae.d on documents and working

papers which support each of its factual state.ent.. They form

part of the record upon which the Ca.mission based its decisions

on the .atters in this report and were available to Commissioners

and appropriate Btaff for revie••

B. Key .ersonnel

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The Treasurer for the period audited .a. Mr. George L.

Clark, Jr.
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The audit included such tests a. verification of total

reported receipts and expenditures and individual transactions,

review of required supporting documentation and analysis of

Committee debts and obligations, review of contribution and

expenditure limiations, and such other audit procedure. as deemed

neceaaary under the circumstances. •

II. Finding Related to Title 2 of the United States Code

A. Misstatement of Financial Activity

Section 437(2) of Title 2, United States Code provides that each committee or other organization which represents a

national political party in making arrangements for the

convention of such party held to nominate a candidate for the '~ office of President or Vice President, shall, within 60 days following the end of the convention (but not later than 20 days prior to the date on which presidential and vice-presidential electors are chosen), file with the Commission a full and

complete financial statement, in such form and detail as it .ay prescribe, of the sources from which it derived its funds, and "~ the purpose for Which such funds were expended.

The Audit staff'. reconciliation of Committee bank

accounts to reports filed for the period January 1, 1984 through September ~O, 1984, indicated that the Committee overstated its

receipts and its disbursements by $250,000.00. The overstatement

was caused by a Committee error made in preparing the reports.

On December 19, 1984, the Committee filed an amendment

correcting its misstatement of financial activity.

Recommendation

It is the Audit staff'. recommendation that no further

action be taken on this matter.

" III. Pindings Related to Title 26 of the United States Code

A. Unspent Portion of Pund Payment

Section 9008(h) of Title 26, United States Code states, in part, that the Commission shall have the aame authority to

require repayments from the national committee of a ••jor party

as it has with respect to repayments from any eligible candidates

under Section 9007(b) •

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In addition, 11 C.P.R. S 9008.10(e) (1) atat.s that if

any portion of the payaent under 11 C.P.R. I 9008.3 re.alna

unapent after all convention expenses bave been paid that portion .hall be returned to the Secretary of the ~reasury.

Alao, 11 C.P.R. S 9008.10(9)(2) atatea, in part, that

the national committee ahall repay to the Secretary within 90

day. of tbe notice, the ••ount of the repayment.

Calculation of the Unspent Portion of the Entitlement

of the Committee on Arrangements for the 1984

RepUblican National Convention

a. of October 31, 1984

Aaount of Federal Punds

aecelved by the Committee

Adju.ted Total of Convention

Bxpenses Made

cr Total .",

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Bstimated Winding Down Costs:!1

Contract - Convention Proceedings Purniture Rental

Miscellaneous

Repayment Amount 1/

$8,080,000.00

( 8,069,368.11)

$ 10,631.89

( 6,000.00) ( 1,000.00) ( 2,468.04)

$ 1,163.85

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On January 10, 1985, the Committee repaid $1,163.85 to

the U.S. Treasury pursuant to 11 C.P.R•• 9008.10(e).

1/ ~he estimated winding down costs for the Committee were

provided by Committe_,8taff. Actual expenses will be

compared against these estimates, and adjustments made if

appropriate.

11 ~he Committee repaid $302,506.36 of interest income to the

U.S. '1reasury on October 10, 1984 in accordance with 11

C.P.R" S 9008.6 (a) (5) •

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In addition, by letter dated July 18, 1985, the

Ca..ittee forwarded a cbeck In the amount of $2,784.08. According to the Committee, this amount represents the value of

unexpected refunds received from vendors since January 10, 1985.

On JUly 23, 1985 the check was delivered to the u.s. Tre.sury for

depoalt into the General Fund pursuant to 26 U.S.C. S '008(h).

BtcOlIIDendatlon

The Audit staff recommends that no further action Is

neee••ary at this time.

B. Matters Referred to the Office of General Counsel

Certain matters noted during the audit were referred to

the Commission's Office of General Counsel.

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