Interim Audit Report of the 

Audit Division on the 

Ohio Republican Party State 

Central & Executive Committee 

01/01/2007-12/31/2008 

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 conimittee 

appears not to have met 

the threshold 

requirements for 

substantial compliance 

with the Act.^ The audit 

determmes 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 the matter 

discussed in this report. 

Ahout the Committee (p. 2) 

The Ohio Republican Party State Central & Executive Committee 

is a state party committee headquartered in Columbus, Ohio. For 

more information, see the chart on the Committee Organization, 

p.2. 

Financial Activity (p. 2) 

• Receipts 

o Contributions from Individuals 

o Contributions from Political 

Committees 

o Transfers from Affiliates 

o Transfers from Non-federal 

Accounts 

o Offsets/Other Receipts 

Total Receipts 

• Disbursements 

o Operating Expenditures 

o Refunds of Contributions 

o Independent Expenditures 

o Coordinated Expenditures 

o Federal Election Activity 

o Other Disbursements 

Total Disbursements 

$ 3,058,229 

1,666,512 

11,851,559 

2,385,909 

1,310,775 

$20,272,984 

$ 5,304,397 

1,747,000 

50,000 

13,003 

10,710,668 

1,345,414 

$19,170,482 

Finding and Recommendation (p. 3) 

• Reporting of Debts and Obligations 

2U.S.C. §438(b). 
Interim Audit Report of the 

Audit Division on the 

Ohio Republican Party State 

Central & Executive Committee 

01/01/2007-12/31/2008 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Committee 

Committee Organization 2 

Overview of Financial Activity 2 

Part III. Summary 

Finding and Recommendation 3 

Part IV. Finding and Recommendation 

Reporting of Debts and Obligations 4 
Part I 

Background 

Authority for Audit 

This report is based on an audit of the Ohio Republican Party State Central & Executive 

Committee (ORP), undertaken by the Audit Division of the Federal Election Commission 

(the Conmiission) 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 intemal 

review of reports fried 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 

Following Commission approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. The disclosure of disbursements, debts and obligations. 

2. The disclosure of expenses allocated between federal and non-federal accounts. 

3. The disclosure of individual contributors' occupation and name of employer. 

4. The consistency between reported figures and bank records. 

5. The completeness of records. 

6. Other committee operations necessary to the review. 
Part II 

Overview of Committee 

Committee Organization 

Important Dates 

• Dateof Registration October 5,1982 

• Audit Coverage January 1,2007 - December 31,2008 

Headquarters Columbus, OH 

Bank Information 

• Bank Depositories Two 

• Bank Accounts 10 Federal, Six Non-federal 

Treasurer 

• Treasurer When Audit Was Conducted Mr. Paul Hoag 

• Treasurer During Period Covered by Audit Ms. Sara Brown 

Management Information 

• Attended FEC Campaign Finance Seminar Yes 

• Who Handled Accounting and Recordkeeping 

Tasks 

Paid Staff 

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand @ January 1,2007 $ 172,248 

o Contributions from Individuals 3,058,229 

o Contributions from Political Committees 1,666,512 

0 Transfers from Affiliates 11,851,559 

o Transfers from Non-federal Accounts 2,385,909 

o Offsets/Other Receipts 1,310,775 

Total Receipts $20,2724^84 

o Operating Expenditures 5,304,397 

o Refunds of Contributions 1,747,000 

o Independent Expenditures 50,000 

o Coordinated Expenditures 13.003 

o Federal Election Activity 10,710,668 

o Other Disbursements 1,345,414 

Total Disbursements $19,170,482 

Cash on hand @ December 31,2008 $ 1,274,750 
Part III 

Summary 

Finding and Recommendation 

Reporting of Dehts and Ohligations 

Audit fieldwork identified debts to five vendors that ORP failed to report. The debts totaled 

$1,195,892. The Audit staff recommends that ORP amend its disclosure reports to include these 

debts. (For more detail, see p. 4) 
Part IV 

Finding and Recommendation 

Reporting of Dehts and Ohligations 

Summary 

Audit fieldwork identified debts to five vendors that ORP failed to report. The debts totaled 

$1,195,892. The Audit staff recommends that ORP amend its disclosure reports to include these 

debts. 

Legal Standard 

A. Continuous Reporting Required. A political committee must disclose the amount and 

nature of outstanding debts and obligations until those debts are extinguished. 2 U.S.C 

§434(b)(8) and 11 CFR §§104.3(d) andl04.11(a). 

B. Separate Schedules. A political committee must file separate schedules for debts owed by 

and to the committee with a statement explaining the circumstances and conditions under which 

each debt and obligation was incurred or extinguished. 11 CFR § 104.11(a). 

C. Itemizing Debts and Obligations. 

• Once it has been outstanding 60 days from the date incurred, a debt of $500 or less must 

be reported on the next regularly scheduled report. 

• A debt exceeding $500 must be disclosed in the report that covers the date on which the 

debt was incurred. 11 CFR §104.11(b). 

Facts and Analjrsis 

A. Facts 

Disclosure reports filed by ORP durmg the audit period did not disclose any debts owed. 

Although ORP paid the majority of invoices timely, it carried outstandmg balances with five 

vendors that were not disclosed as debts. During audit fieldwork, a review of vendor invoices 

and computer files identified debts totaling $1,195,892 that should have been disclosed on 

Schedules D (Debts and Obligations).^ The vendors consistently mvoiced ORP for the balances 

due. Some of the undisclosed debts were outstanding prior to the beginning of the audit period. 

^ Each debt in this amount was counted once. In order for ORP to correctly file amended reports, the schedule 

provided included the amount of each debt required to be reported for each reporting period. 
B. Interim Audit Report & Audit Division Recommendation 

The Audit staff informed ORP representatives of this matter at the exit conference and provided 

schedules detailing the undisclosed debts for each reporting period for the audited cycle. ORP 

representatives indicated that amended reports would be filed. 

The Audit staff recommends that, within 30 calendar days of service of this report, ORP amend 

its reports to disclose the debts and obligations addressed above.