FEDERAL ELECTION COMMISSION

WASHINGTON, D,C. 20463

March 20, 2000

MEMORANDUM

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON

EMPLOYEE FEDERAL POLITICAL ACTION COMMITTEE

DUKE ENERGY CORPORATION (DUKE PAC)

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TO:

FROM:

RON M. HARRIS

PRESS OFFICER

PRESS OFFICE

ROBERTJ.COSTA

ASSISTANT STAFF D~JC~ AUDIT DIVISION

Attached please find a copy ofthe final audit report and related documents on

Employee Federal Political Action Committee Duke Energy Corporation (Duke PAC)

which was approved by the Commission on March 1,2000.

Informational copies ofthe report have been received by all parties involved and

the report may be released to the public on March 20, 2000.

Attachment as stated

cc: Office of General Counsel

Office of Public Disclosure

Reports Analysis Division

FEC Library
REPORT OF THE AUDIT DIVISION

ON

EMPLOYEES FEDERAL

POLITICAL ACTION COMMITTEE

DUKE ENERGY CORPORATION

Approved March 1, 2000

FEDERAL ELECTION COMMISSION

999 E STREET, N.W.

WASHINGTON, D.C.
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TABLE OF CONTENTS

EMPLOYEES FEDERAL

POLITICAL ACTION COMMITTEE

DUKE ENERGY CORPORATION

PAGE

Final Audit Report

Background

• Transmittal to Committee

Chronology

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A99-74

FEDERAL ELECTION COMMISSION

WASHINGTON. DC. 20403

I.

REPORT OF THE AUDITDIVISION

ON THE

EMPLOYEES FEDERAL POLITICAL ACTION COMMITTEE

DUKE ENERGYCORPORATION

BACKGROUND

A. AUDIT AUTHORITY

This report is based on an audit ofEmployees Federal Political Action

Committee - Duke Energy Corporation (Duke PAC), undertaken by the Audit Division of

the Federal Election Commission in accordance with the provisions ofthe Federal

Election Campaign Act of 1971, as amended (the Act). The audit was conducted

pursuant to Section 438(b) ofTitle 2 ofthe United States Code which states, in part, that

the Commission may conduct audits and field investigations of any political committee

required to file a report under Section 434 ofthis title. Prior to conducting any audit

under this subsection, the Commission shall perform an internal review ofreports filed by

selected committees to determine ifthe reports filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

B. AUDIT COVERAGE

The audit covered the period January 1, 1997 through December 31, 1998.

During this period, Duke PAC reported a beginning cash balance of$12,724; total

receipts of$124,863; total disbursements of$111,783; and an ending cash balance of

$25,823.1

C. COMMITTEE ORGANIZATION

Duke PAC registered with the Federal Election Commission on December

13, 1977 and maintains its headquarters in Charlotte, NC.

Figures in this report have been rounded to the nearest dollar. These amounts do not foot as a

result of a $19 change to Duke PAC's beginning cash on hand balance on March 1, 1998.

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Treasurers during the audit period included: Christin Jarvis Juvier (7/1/94-

1/15/97); Phyllis T. Simpson (1/16/97 - 3/19(98); Vincent M. Davis (3120/98 - 812/98);

and Jaqueline Granados (8/3/98 - 11/15/98). On November 16, 1998, Daniel Hill became

Treasurer and continues to serve in that capacity.

To manage its financial activity, Duke PAC utilized one Federal bank

account, one non-federal account, and one escrow account. The escrow account was used

as the initial depository for PAC contributions from Duke Energy employees. These

contributions were then transferred periodically to Duke PAC's federal and non-federal

accounts according to a predetermined ratio. Duke PAC made approximately 277

disbursements from its non-federal account for non-federal activity. From its federal

account, Duke PAC made approximately 150 disbursements. Duke PAC's federal

account received only contributions from individuals, approximately $124,438; the

majority of which were collected through payroll deduction.

D. AUDIT PROCEDURES

The audit included testing ofthe following general categories:

I. The receipt of contributions or loans in excess ofthe 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 ofthe information disclosed;

4. proper disclosure of disbursements including the itemization of

disbursements when required, as well as, the completeness and

accuracy ofthe information disclosed;

5. proper disclosure of debts and obligations;

6. the accuracy oftotal reported receipts, disbursements and cash

balances as compared to bank records;

7. adequate recordkeeping for committee transactions; and

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

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As part ofthe Commission's standard audit process, an inventory ofDuke

PAC's records was conducted prior to the audit fieldwork to determine ifits records were

materially complete and in an auditable state. Based on our review ofthe records

presented, it was concluded that they were materially complete and fieldwork began

immediately.

Based upon our examination ofthe reports and statements filed, and the

records presented by Duke PAC, no material non-compliance was discovered.

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FEDERAL ELECTION COMMISSION

WASHINGTON. DC 104(,.1

March 13,2000

Mr. Daniel Hill, Treasurer

Employee Federal Political Action Committee

Duke Energy Corporation (Duke PAC)

422 South Church Street PB05E

Charlotte, NC 28242

Dear Mr. Hill:

Attached please find the Report ofthe Audit Division on Employee Federal

Political Action Committee Duke Corporation (Duke PAC). The Commission approved

the report on March 1, 2000.

The Commission approved Final Audit Report will be placed on the public record

on March 20,2000. Should you have any questions regarding the public release of the

report, please contact the Commission's Press Office at (202) 219-4155.

Any questions you have related to matters covered during the audit or in the report

should be directed to Tesfai Asmamaw or Alex Boniewicz ofthe Audit Division at (202)

694-1200 or toll free at (800) 424-9530.

Sincerely,

Robert . Costa

Assistant Staff Director

Audit Division

Attac1U11ent as stated

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CHRONOLOGY

EMPLOYEES FEDERAL

POLITICAL ACTION COMMITTEE

DUKE ENERGY CORPORTATION

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Audit Fieldwork

Exit Conference

Final Audit Report Approved

01110/2000 - 0111812000

01118/2000

03/0112000

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