MEMORANDUM

TO:

FROM:

fEDERAL ELECT10~ CO,"1MISSJON

September 29. 1992

FRED EILAND

CHIEF, PRESS OFFICE ~~

ROBERT J. COSTA 7\./<......-

ASSISTANT STAFF DIRECTOR

MWQ04288

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON

HOOSIERS FOR TIM ROEMER

Attached please find a copy of the Final Audit Report on

Hoosiers for Tim Roemer, which was approved by the Commission on

-Sept-ember 22, 1992 .. -

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

FEe Library
FEDERAL ElECTION COMMISSION

WAStUNCTON. 0'( 20463

REPORT OF THE AUDIT DIVISION

ON

HOOSIERS FOR TIM ROEMER

MH002918

A91-23

Ie Background

A. Overview

This report is based on an audit of Hoosiers for Tim

Roemer ("the Committee"), undertaken by the Audit Division of the

Federal Election 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 ~f

the United States Code which states, in part, that the Commission

aay conduct audits and field investigations of any political

committee required to file a report under section 434 of this --~ltle-~ -- Pri-orto-eoRd-u-e-t-i-n-g any -audi-t -und-'!t _t!lis ,,_c~ion, the

Coaaission shall perform an internal review of reports----fffe-d- ljy

selected coamittees to deter.ine if the reports filed by a

particular co..ittee aeet the threshold requireaents for

substantial co.plianee with the Act.

The Co.-ittee registered with the u.s. House of

Representatives on July 11, 1989 as the principal caapaign

co.-ittee of Tia Roe.er, De.ocratic candidate for the u.s. Bouse

of Representatives (3rd Congressional District) froa the state of

Indiana. The Co.-ittee aaintains its headquarters in South Bend,

Indiana.

The audit covered the period from the inception through

Deceaber 31, 1990, the closing date for the latest report filed at

the time of the audit. The Co.-ittee reported a cash balance on

July 1, 1989 of $-0-; total receipts for the period of

$503,511.62; total disbursements for the period of $473,060.15;

and a closing cash balance on December 31, 1990 of $31,826.64~/.

This report is based on documents and workpapers which

support each of its factual statements. They fora part of the

record upon which the Coaaission based its decisions on the

matters in the report and were available to the Commissioners and

appropriate staff for review.

~/ The reported totals do not foot due to mathematical errors.
-2-

8. Key Personnel

The Treasurer of the Committee during the audit period

vaa rred P. Crowe. The current Treasurer is John R. Gildea.

c. Scope

The audit included such tests as verification of total

reported receipts and disbursements 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. Audit Findings and Recommendations

A. Misstatement of Financial Activity

Sections 434(b}(1),(2), and (4) of Title 2 of the United

states Code state, in part, that each report of a committee shall

disclose the beginning cash on hand, and the total amount of all

receipts and disbursements for the reporting period and the

calendar year ..

The Committee's bank account activity was reconciled to

-reported activity by the Audit staff. For calendar year 1990, the

Co..i ttee understated i tsreceipts- --by -$1--,-38-4-~-O-3. --The---Co..itt~.__ ~i_d

Dot report $1,448.78 in interest income, $444.88 in offsets to - expenditures and $100 in contributions. In addition, there

reaained an unexplained overstatement of receipts of $609.63.

Further, the Committee understated disbursements for

calendar year 1990 by $8,774.22. The Coaaitte. did not report 14

operating expend!tures totaling $10,234.12. The Coaai"ttee also

reported expenditures totaling $2,410.96 which vere later voided

and aade no adjustment. The Audit staff noted that the Committee

aade several math errors when reporting total expenditures

amountin9 to $1,304.50. There remained an unexplained

overstatement of disbursements of $353.44.

In addition to the above described adjustments, a math

error totaling $1,375.17, resulting from addition and subtraction

errors on the summary pages of 1990 disclosure reports, as well as

an overstatement of beginning cash on January 1, 1990 of $576.38,

caused the ending cash as of December 31, 1990 to be overstated by $9,341.74 .. The correct ending cash balance was determined by the

Audit staff to be $22,484.90.

At the exit conference, the Audit staff provided the

Committee representatives with photocopies of workpapers detailing

the above misstatements. The Committee representatives indicated

a willingness to file amendments to correct this problem.
-3-

In the interim audit report the Audit staff recommended that

within 30 calendar days of service of that report the Committ•• file a r~~orehensiv. amendment for 1990 correcting the

ai.atatement of financial activity noted above.

In response to the interim audit report, the Committee filed

amendments for each reporting period, which materially corrected

the misstatements of financial activity noted above.

Recommendation 11

The Audit staff recommends no further action with respect to

this matter.

B. Disclosure of Contributions from Political Party and

Other Political Committees

Section 434(b)(3)(B) of Title 2 of the United States

Code requires, in part, that each report shall disclose the

identification of each political committee which makes a

contribution to the reporting committee during the reporting

period, together with the date and amount of any such

contribution.

Section l04.3(a)(4} of Title 11 of the Code of Federal

Regulations requires, in part, the disclosure of the a99re~ga~te

year-to-date totals for all committees that make contributions to

the reporting committee, together with the date of receipt, and

the amount of the contribution.

A review of the Committee's contributor records

indicated the Committee vas required to itemize on Schedule A 267

contributions froa political committees, totalling $286,586.79.

Of these, the it.aized entries for SO contributions, totaling $41,222.79, did not contain the correct aggregate year-to-date

total. In addition, other errors were noted with respect to 7

additional entries.

At the exit conference, Committee representatives were

provided details with respect to these items. They were willing to

file amended reports correcting the problems noted above.

In the interim audit report the Audit staff recommended

that within 30 calendar days of service of that report, the

Committee file amended Schedules A to correct the public record.

In response to the interim audit report, the Committee

filed amended Schedules A which materially corrected the

disclosure problems noted above.
-4-

••co...ndat1on 12

~he Audit staff recoaaenas no further action with respect to ~ft11 .atter.

c. Matter Referred to the Office of General Counsel

A certain matter noted during the audit has been

referred to the Commission's Office of General Counsel.