June> I r" 1980

PUBLIC ISSU;\NCI-: OF FINAL All])' 'L' REPORT -

'l'EXl\S r-lEDJCAL POl,.l'l'ICAL AC'[' I UN COMMITTEE

FRED EILAND

"HESS OFFICI:: 7' /

BUB COS'l'A 1\ A'--->,. . --, , I

,JlJ\)Y lIl\\oJKH~ S ./:/'._

\\,·\0.,111',1,\11', 11\ !lI·ltd

FEDI RAt ELECTION COMMISSION

cc: FEC L Lbr:ll'Y

R.~,p·.. ...P"...11) 1 : c i~,.\cc,rd , "

Int'onn~ltilln~ll copjt~S of this report h,lVQ been received

by all i'~!rtil'~; i nvo! ved "nd this report may be released to

the pllh.l.i\.~ .15 o[ today, ,June 19, 1980.

At'L'lChcLt plci1sC find a copy of the final audit report of

the '1't..:X~l~> r-ld!ic<11 po1.iti.cal Action Committee which was

apprnvl.'d b':' t'lh' ('Onlm i ssj 011 on June 9, 19BO.

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II I)I:RAt: HlCTION COM,\\ISSION

'l'hj !''; 'illd it report is basr::d on documcll ts and \Vod~ing

pdi-",rs ",;hich SUppOl-!' ~,ach of the !':1ctnal statements. 'rhey

! (1)'111 ;):1r t ur the' record upon \·;hi(;:1 the Commission based 1 ts

d,'(·i.~,;f()ns 0n tll(~ matb)rs in the 1:01'Ol:t am] \\7Cl:C aVuilub1e: to

COl:Ulli ~.;slonl·rs ;lIld upp:-oprLltc staf~ for rcvimoJ.

'PhL' ~l\ld i't covered the ::,01:.i ad Jilnuary 1, 1977 tlil:011gh

j·i:ll:c!1 31, I f)'jI), the linil1 COV01-:I',:e d.:lto of thl'lllost reCl.~nt

l:l,'i'Ul:t r.LI~~d I,y tho Committee at the tim<?~ or tho aUdit. 'rho

CC)lllmj t(:I.,".' n~p()I··Ll~d ull opening cas:1 G::llancr: on January .1,.1977

of ~~!)3,5(,4.5G, VItal I:cceipts [or t:10 period of $~}05,415.15

LuLd (~:':Jlonditl1'-(~S for the pcriocl of $848,17.6.1G und a

cl()~;ijl'J l~~ISh h:IL1l1c\.~ on fviarch 31, 1979 of: $110,1~O.G7• .!/

1/ Ti1(' d i scrl2p:,lI1c', in clldinc; c,,:;:: j s due- to rna thel1\~ltica L .

e':j~(;I-S OJl the Com:nittOt)I s rt.::)0:·~S.

The Conllnittc(~ rcqjstcl-\.,d ·..;ith the ,United SLltcs

IIO\lSe uf H(~preS0i'lLlt.i:\'l.'S Oi1 r\pri 1 J.;, pn1 to :;uP1JOrt candiclates"

~1lld ini'Ol:m the :mccUcal .pro[es~~io:·; u:- poliLical events which

~lffccl: Llll~ practice of medicine. '1':10 CornmittL'l'. maintajll~; l·ts

'hO~ld'lUul'b~I~~; -in l\U!.;till, '1'o::-:us.

HI';Pt',)R'\' OF TIlE 'l\UDI'l' DIV \~: ION

ON 'rIlE

'\'Jo::\i\S r~ED\ CAL POLI'rICl\L ACTIQN COMr-rrT'I'EE

'1'his I:"('port is based on .:ll1 auc1i t of thc '1'e:<<1s Meel tcnl'

Polftica1 !\ct.ion Committee (lithe Committee",), undei-t-akenby

Lhe !\ucl i. t Divi:=:,i on of the Federal Election Commission in

iICCOICc1,::mce wi th the Commission IS aud it: policy to determine

whether there hilS lK'QIl cOIllpliance\Vith the provisions of the

Jo'c,derillElcction C<1ml:Jaign,i\ct~of 1,971, as'amelil16d '("the"Act").

;I"iie'illlcUL"wa's "c()rldtlctcdiJiirsuai1't to Scct.'.i:on 43H(af(8) of'l'itle 2',»

clf the Uni ted Stu tc~~ Code which diTects the COIl1mission tei mu}~c

from time to t'ime audj ts and fl,el..:.:' in\'cstiqi1ti(~n~; with respcct ,

'to rc~pnl-t:s and statCl11CI1ts fi,led U:1,::Cl: the provisions of th(~ Act.,,: "

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B. Key Personnel

7\ re'.'iC\·/ of UK' Committee' s ,~,olici tation materials

;lI1d conl:l-1.but.or n~con!:; dinclosed the fo11owi.nq:

The~ COI!!ltd.ttl't· ~~olicitee1 contribution~; for the American'

r.lec1.ic;lJ. Political l\cl:ioll Cnmmit-tc'<.~ (;\t-1PAC) in conjunction wi.th, "

its O\\-n solic.iLlti')I1:;. ~1'1ll: COl11m.itt:oe received checks

l~ep'rcs0ntirlCJ ,cnmLinl.'d \'ontl"i.butiOlw fOI~ itself and Ai\1Pt\C,' \oJhich

\';l'ro do:)ositc:d i:lt:O 1.11·.' ,COllllnittl'e's checking account. 'l'he

pn~t1.(1n' of th\~ checks 1:L'p n~scnt,i)l(l l\t<1PAC con t 1." ibuti ons \here

:Hlbscquently fon';:lrdc'<! by separille check to i\i'-1PJ\C.

A.' 'I temizat:iorl of Contributio~s

Dud.ll..:.thc period covered l;ythe audit section 434(b)(7)

of Title 2,of the United States, Code" stated that each report shaH

d i.sclosc L'."ch contribution, rebutc, rf'~fund,· or other receipt in .

,:.:~:cess of ~~lOO ,notothenoJise.listcd' under pi1l"i1<]raphs (2) throuqh«(,).

:~ection l04~2(,b)(7):'of T~itle 11 of' the Code of Federal

Ht!~Julutic;Il~; stat'cd, in par.t, that each r.eport shall ·disclose.

each recc i.pt in e:·:ceSR of $100 nJcei ved durinq the reporting

period, to':.;ethe!~ v;i th thp idcnti f.i ca tion, dato and amount '

received, OCCU!.lZl tion, and princ.i pnl plnce of business of each

:,llch per:,on frO!~1 \·,homsl1ch r.eceipts have· 1'O('11 rl~ceivcd during

I.hereport i ntJ ~)C r i oe:: . '

'l'heJ pri ncipal office,'s of the Committee durinq the

period amlited were Hr. Charle~~ \vil:~on, Chairman, 1/1/77-1/28/79:

r-1r. Ceor9c G. Ale:·:ander, Chairman, 1/2.9/79-present: and Mr. Robert

:;tlukll, 'l'reasurer.

c. SCOT~~

The alii I it incl uded such test.:B as verification' of total

r.eported'" rece.i pt-:;'; ·...,11f1 .e:-:penditures and individualtramwctions;

'"0\710\'1 of reCJuin·r1 ::uppo'-ting documentation: annlysis of

'.Commi t tee debts .lIlel o}) I i 'lations: and such other audit procedures

;IS deemed neCCSS:l ry und<',- the. circumstances.

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Illlt~Lnq 1978 and 1979 tilt.' Committee only itemized its

port Lull 01 the (:(lntributions in eX('I'~::; of $100 and reported the

Ar-1PJ\l~ porLion an unitemizcd. 'fh.h: 1 ..~uJ.ted in 367 itemization

errors tot.:t.Liny $92,825 which aCCCllIllLB for 31. 47!l. of the number

and 50. 25'~, of the amount of l·ccei."l.~: n~quired to be itemized.

On l\pril 14, l~HHl, the COlllmittee submitted amcnc.kd

t~eports, corr0ctly .item.i:I.iIHJ the rcc(·ipts.

He-'commend a L j 011

'1'ho I\udit staff rl','omnh.:nds nCi fUI-lIWl" action on this

matter.