Draft Final Audit Report of the 

Audit Division on the 

Friends of Todd Young 

February 12, 2009 - December 31, 2010 

Why the Audit 

Was Done 

Federal law permits tfae 

Conunission to conduct 

audits and field 

investigations of any 

political committee tfaat is 

required to file reports 

under tfae Federal 

Election Campaign Act 

(tfae Act). Tfae 

Commission generally 

conducts sucfa audits 

wfaen a conunittee 

appears not to faave mej 

the tfaresfaold 

requirements for 

substantial compliance 

witfa tfae Act.' The audit 

determinf<^\hLMh%.'r 'Tuconunil'.-.-compile., w ':: 

tfaeli) -li.-.linns, 

profaibititiiiN and 

disclosure rci|iiiivments 

of tfae Act. 

Future Action 

Tfae Commission may 

initiate an enforcement 

action, at a later time, 

witfa respect to any of tfae 

matters discussed in tfais 

report. 

About the Campaign 

Friends of Todd Young is tfae :@^cipaf campaign committee for 

Todd C. Young, Republic. :i V. i t-iilate for tfae U.S. House of 

Representatives from tfae^ 'e c I isi: .na, 9^ District, and is 

faeadquartered in Bloogj^n , Im!. For more information, 

see tfae cfaart on th^^mnphign Organ:/ .. . p. 2. 

Financial^^ivit3^V 2) 

• Receipts ^ ^ 

Contributions .:i ' dividuals 

o C I' ' ibutions fi:( C) i,-

IV-.'ii.i. Committei-- ^ 

o '^bisters :i'l':.. \utfaorj^d 

Operaipg Expenditures 

pts 

$ 1,708,269 

233,843 

14,702 

7,404 

$ 1,964,218 

isbursemf 

g Expenditures 

o Comribution Refimds 

ontributions to Political 

Committees 

btal Disbursements 

$ 1,926,326 

18,200 

5,000 

$ 1,949,526 

Findings and Recommendations (p. 3) 

• Receipt of Apparent Profaibited Contributions (Finding 1) 

• Receipt of Contributions in Excess of tfae Limit (Finding 2) 

• Failure to File 48-Hour Notices (Finding 3) 

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

Audit Division on the 

Friends of Todd Young 

February 12, 2009 - December 31, 2010 

r 
Table of Contents 

f 

Page 

Part I. Background 

Autfaority for Audit 1 

Scope of Audit 1 

Part II. Overview of Campaign 

Campaign Organization ^, ^ 2 

Overview of Financial Activity ^ 2 

Part III. Summaries 

Findings and Recommendations J \ 3 

Part IV. Findings and Recompfendatidns 

Finding 1. Receipt Apparent of Profaibited CuL Mtio^a ^ ^ 4 

Finding 2. Receipt of Contributions in Excess or:l.i-1'.: it 7 

Finding 3. Failure to File 48-Hour Notices 10 
Parti 

Background 

Authority for Audit 

Tfais report is based on an audit of Friends of Todd Young (FOTY), undertaken by tfae 

Audit Division of the Federal Election Conunission (the Conunission) in accordance witfa 

tfae Federal Election Campaign Act of 1971, as amended (tfae Act). The Audit Division 

conducted tfae audit pursuant to 2 U.S.C. §438(b), wfaicfa permits tfae Commission to 

conduct audits and field investigations of any political committe^^ is required to file a 

report under 2 U.S.C. §434. Prior to conducting any audit un^Miissubsection, tfae 

Commission must perform an intemal review of reports fil^^selected committees to 

determine wfaetfaer tfae reports filed by a particular comiqmsG nlfttfae threshold 

requirements for substantial compliance with the Act^^^.C . §^ 

Scope of Audit 

Following Commission-approved procedure 

factors and as a result, this audit examined: 

1. tfae receipt of excessive contributions and loans 

tfae receipt of contributions from Afaibited sources 

tfae disclosure of contributions reed 

tfae disclosure of individual contribuinrs 

tfae consistency between reported figu 

tfae completeness of ji^nfe: and 

otfaer conunittee QiiRati^BEcessary to me review. 

2. 

3. 

4. 

5. 

6. 

7. 

valuated variOs risk 

e of employer; 
Part II 

Overview of 

Campaign Organization 

Important Dates 

• Date of Registration February 20,2009 -

• Audit Coverage February 12, lifecember 31,2010 

Headquarters BloomingtoniP^ana 

Bank Information 

• Bank Depositories One k 

• Bank Accounts Oi^^ec^ng accounTreasurer 

• Treasurer Wfaen Audit Was Conducted * "L.^Ness^ 

• Treasurer During Period Covered by Audit C^U - K ETass^ ^ 

Management Information 

Seminar 

• Wfao Handled Accounting and 

Recordkeeping Tasks 

S:.:: 

Q'^ervie^gio ink] f Financial Activity 

Lditcd Amounts) 

Cash-on-hsyprd (ff liebnigir\ 12,2^1^ ^ 0 

Receipts ^ 

o t!on^^^.ions from Ind! -• -duals^ 1,708,269 

o ContriBQ^ns from Ot'-..-i Political 

Committ.-. * w 

o Iransters , \' '-o^jssea Conunittees 

233.843 

14,7U2 

o Offsets to Opei^'^B Lxpenditures 7,404 

Total Receipts jr $ 1,964,218 

Disbursements 

o Operating Expenditures 1.926,326 

o Contribution Refunds 18,200 

o Contributions to Political Conunittees 5,000 

Total Disbursements $ 1,949,526 

Cash-on-hand @ December 31,2010 $ 14,692 
Part III 

Summaries 

Finding and Recommendation 

Finding 1. Receipt of Apparent Prohibited Contributions 

During audit fieldwork, a review of contributions revealed tfaat FOTY received 24 

apparent profaibited contributions totaling $19,700. FOTY faad jsAttied $3,750 of die 

$19,700, albeit in an untimely manner. 

In response to tfae Interim Audit Report recommendationwOT i^wesentatives provided 

documentation demonstrating tfaat two contributions^||||dni^ $600^k£ not prohibited 

contributions and refunded the remaining $15,35^^pp9rent prohibH^^ntributions. 

Tfae Audit staff concludes that FOTY receivedj^^ent pj^ohibited contmMon&totaling 

$19,100 and has refunded all of tfaese contribm^^^beit^^ untimely n^Rer. 

(For more detail, see p. 4) 

Finding 2. Receipt of cJ^teibutions n^^cess of the Limit 

During audit fieldwork, tfae Audit staf^0^M^ontribution|«fh individuals. Tfais 

review indicated tfaat FOTY faad receivewppaH^b|^essive^itributions totaling 

$94,854. Tfaese errors occurred as a resultnf Ffl^T^^^^^ving the excessive portion 

of contributions either jM^|^y;ding a pre^^tive lett^o its contributors or by issuing 

a refund in a timely npner. 

In response to the Inte^^^diA^Qrtreconu^dation, FOTY representatives provided 

documentatim^^nonstrg^fcmia^HB^Bynally resolved tfae apparent excessive 

contributi^^^M^^an un^mLv maimer. (For more detail, see p. 7) 

FiiffiBBlS. Failt 

During aiHnfieldwork, a 

periods revelB^at FC! 

$75,700. MostWaeunfiJ 

to 4S-Hour Notices 

ew df contributions received during tfae 48-faour filing 

ailed to file 48-faour notices for 51 contributions totaling 

notices were for general election contributions. 

In response to tfae Inffimi Audit Report recommendation, FOTY representatives stated 

tfaat diey faad no additional information to provide in connection widi diis finding. 

(For more detail, see p. 10) 
Part IV 

Findings and Recommendations 

Finding 1. Receipt of Apparent Prohibited Contributions 

Summary 

During audit fieldwork, a review of contributions revealed tfaat FOTY received 24 

apparent profaibited contributions totaling $19,700. FOTY faad reminded $3,750 of die 

$19,700, albeit in an untimely manner. 

In response to tfae Interim Audit Report recommendation JP'^Bspresentatives provided 

documentation demonstrating that two contributions, totHig $6BaB|ere not prohibited 

contributions and refunded the remaining $15,350 inAa^git pronfl^dcontributions. 

The Audit staff concludes that FOTY received amrar^t prohibited comH|tions totaling 

$19,100 and has refunded all of these contribu|j^^ albeitun an untimely^ 

Legal Standard 

A. Receipt of Prohibited Contribulions - General IWubition. Candidates and 

conunittees may not accept contributi^^ynthe form ofnney, in-kind contributions or 

loans) from tfae general treasury funds cR^^jgtions. Thi^ndiBition applies to any 

incorporated organization, including a na^stoci^^jmration,Unincorporated 

membership organization, and an incorpo%edj^pH^^|^U.S.C. §441b. 

B. Definition of Linked LuRB^y Compai 

business entity reQ^^|d as aiHLC under th) 

establisfaed. llCFR§I^YgJ 

A limited liability company (LLC) is a 

^s of tfae State in wfaich it was 

fact®! • 

1. 

rohibitions to LLC Contributions. A contribution 

mlimits and prohibitions, depending on several 

C. AppU^lion III'i.hnits 

from adCLc is sub-.-.i contri 

«:xplained bekiw. 

li e .•• Partnership ffae cdhtribution is considered to be from a partnersfaip if the 

LLCt;i!ii-.*<es to be Mated as a partnership under Intemal Revenue Service (IRS) 

tax rul.^. tM if it ni|pbs no choice at all about its tax status. A partnership 

contribul t'-i not exceed $2,400 per candidate, per election, in tfae 2010 

election cycl.- ^>.cfa a contribution must be attributed to eacfa lawful partner. 

11 CFR §lieiri(a), (b), (e) and (g)(2). 

LLC as Corporation. Tfae contribution is considered to be from a corporation— 

and is barred under the Act—if the LLC chooses to be treated as a corporation 

under IRS rules, or if its shares are traded publicly. 11 CFR §110.1(g)(3). 

LLC with Single Member. The contribution is considered to be from a single 

individual if tfae LLC is a single-member LLC tfaat faas not cfaosen to be treated as 

a corporation under IRS rules. 11 CFR § 110.1(g)(4). 

2. 

3. 

D. Limited Liability Company's Responsibility to Notify Recipient Committee. At 

tfae time it makes tfae contribution, an LLC sfaall provide to tfae recipient committee 
information on how the contribution is to be attributed and affum diat it is eligible to 

make die contribution. 11 CFR § 110.1(g)(5). 

E. Organizations Financing. Organizations that are not political committees under the 

Act that make contributions and expenditures, but do not qualify as political conunittees 

under 11 CFR 100.5, must demonstrate dirough a reasonable accounting method diat die 

organization has received sufficient funds subject to the limitations and prohibitions of 

the Act to make such contribution, expenditure or payment. 11 CFR § 102.5(b). 

F. Questionable Contributions. If a conunittee receives a contribution that appears to 

be prohibited (a questionable contribution), it must follow the y^r^^i^es below. 

1. Witfain 10 days of tfae treasurer's receipt of tfae quesi .ti:i..'*le contribution, tfae 

conunittee must eitfaer: 

• Retum tfae contribution to the contributor vj[iti it depoit • it; or 

• Deposit die contribution (and follow die^ .-i^-jJIlow). J! ( I K §103.3(b)(l). 

2. If the conunittee deposits the questionabl^^ntribution, it may :.iV<gend the 

fimds and must be prepared to refund^:!—-' It mu^^erefore maimvi: Efficient 

fimds to make the refiuids or establish a -.-.v >.•'.- ai^llint in a campai^ 

depository for possibly illegal contributions. ' I c 1^ § 103.3(b)(4). 

3. The conmiittee must keep a vaiitten record ex^'i. • i:.; why the contribution may 

be prohibited and must inclu(..- 'i.i« 'i.^.^rmation v :-.i:::'i.-:)orting tfae receipt of the 

contribution. 11 CFR §103.3(b,--; ^ 

4. Within 30 days of the treasurer*s%ceipi ti:, I i:- .•stiQi;wjle contribution, tfae 

committee must makeat least one vmti^toi i*- '. ..-.;'iest for evidence tfaat tfae 

contribution is^lH^^Mence of lenity inclwii--, for example, a written 

statement fra^mie comHitor explai^g wfay the contribution is legal or an oral 

explanatio^^^nyrecor^d by the conmitee in a memorandum. 

11CFR§103.3( 

5. Widudfj^j^p daJ^Ke coifBHI^^ust either: 

!5rfir^^Bkgali^fcLthe contribution; or 

Refund tfaelBbibutio^^e contributor and note tfae refund on tfae report 

covering tfae ^n d in v^ch die refund was made. 11 CFR § 103.3(b)(1). 

AiiJ^^itribution tSappears to be illegal or is deposited into a campaign 

depos^wshall nolK used for any disbursements by tfae political conimittee 

until tfae^^yibut^faas been determined to be legal. The political committee 

must eithe^n^fa a separate account in a campaign depository for such 

contributions^maintain sufficient funds to make all such refunds. 11 CFR 

§103.3(b)(4). 

Facts and Analjrsis 

A. Facts 

During audit fieldwork, tfae Audit staffs sample review of contributions received by 

FOTY identified contributions tfaat appeared to be from profaibited sources. As a result, 

the Audit staff performed a review of all deposit batches for prohibited contributions. 

This full review identified tfae following possible profaibited contributions: 
• 16 cfaecks from LLCs totaling $14,650; and 

• eigfat cfaecks from corporations totaling $5,050. 

For tfae contributions from corporations, tfae Audit staff verified tfae corporate status of 

die entities, as of the date of tfae contribution, witfa tfae various Secretary of State offices 

and a registered agent of a company. For contributions from the LLCs, FOTY provided 

no documentation that stated whetfaer tfae companies elected to be treated as a partnersfaip 

or corporation for tax purposes. 

FOTY did not maintain a separate account for tfae possible 

review of casfa balances determined tfaat FOTY did not mainta 

refunds of tfae possible profaibited contributions.^ 

Prior to audit fieldwork, FOTY sent out letters to cont 

permissibility and allocation of tfae possible profaibiJ 

Specifically, FOTY sent tfaese letters on Marcfa yftlOW and May 6,2( 

contributions. A 

ient fimds to make 

Of tfae 24 possible profaibited contributions totali 

FOTY refunded contributions from corporations to^ 

tfaese refunds in an untimely manner.^Qierefore, tfae rd 

profaibited contributions is $15,950 ($XHB(L: $3,750). 

die 

contributions. 

mtified by th^udit staff, 

1,750; however, FOTY made 

ing amount of possible 

B. Interim Audit Report & Audit Dii 

The Audit staff discussedthismatter witfa' 

and provided a scfaedu^M^^parent prol 

A FOTY representafiK^statea^Bt tfaey were^ 

mdal 

Tepfcs^fe^aves at tfae exit conference 

>ited contjroutions identified in tfae review. 

Iprking on obtaining more documentation. 

In response to tfae exit cl 

tfaat faad begH^M^ontri 

contributjfmTHo^^^FO' 

and d^Eudit staff reci^j no 

conmolMiLS it identifi( 

repre^tatives provided some copies of letters 

rs reqaesi^^brmation about tfae permissibility of tfaeir 

^ all tfae letters subsequent to tfae 2010 election cycle 

formation relating to tfae 24 possible profaibited 

Tfae Interim7ffi|kReport flommended tfaat FOTY: 

• ProvideeHmce dffiionstrating tfaat tfae remaining 20 contributions^ in question 

were made^BU^missible fimds; 

• Refund $ 15,9^, tfae remaining amount of apparent profaibited contributions tfaat 

either faas not been refunded or faas not received a statement or explanation from 

tfae contributor attesting to tfae permissibility of tfae contributions; 

• Disgorge die remaining funds ($15,950) to tfae U.S. Treasury and provide 

evidence of such disgorgement; or 

^ FOTY's primary election was on 5/4/2010. The cash-on-hand analysis showed that, on 4/28/2010, funds 

were not sufficient to make all the necessary refunds. 

^ It should be noted that one of the contributions was only partially refunded. 
• If funds are not available to make the necessary refunds or disgorgement, disclose 

the contributions requiring refunds on Schedule D (Debts and Obligations) until 

fimds became available to satisfy this obligation. 

C. Committee Response to the Interim Audit Report 

In response to tfae Interim Audit Report, FOTY provided documentation demonstrating 

tfaat two contributions, totaling $600, were not profaibited contributions because tfae 

contributor files federal income taxes as a partnersfaip. Also, FOTY provided 

documentation demonstrating tfaat tfae remaining contributions were refunded in an 

untimely manner. 

Tfae Audit staff concludes tfaat FOTY accepted apparent proUKed contributions totaling 

$19,100. FOTY refunded all of these contributions, albejM sSA^timely manner. 

Finding 2. Receipt of Contribu; 

Summary 

During audit fieldwork, the Audit staff reviewed conH^Kons from individuals. This 

review indicated tfaat FOTY faad received .ipparent exce^ra|contributions totaling 

$94,854. Tfaese errors occurred as a ICMII't?! FOTY not re^Hi^fae excessive portion 

of contributions eitfaer by forwarding ii pr^sumi^iv«: '.jtter to UpRntributors or by issuing 

a refund in a timely manner. 

)rcsi 

\ 

In response to tfae Int|^. A K.-port reco%nendatiofi, FOTY representatives provided 

documentation derpg*i'-i ating it faad mate%lly resolved tfae apparent excessive 

contributions, albeit ii- .-i: . itinv^v nanner. 

Legal Syiidard 

A. Auwrized CdfiPltee 1 .iii^ . For tfae 2010 election, an autfaorized committee may 

not r^^\ L" more tfaan. .•" of $5L :r«3?^er election from any one person. 

2 U.S.C. 51*ila(a)(l)(AX 11 CFR 10.1(a) and (b) and 110.9. 

B. Handling^'ciiilributioiis That Appear Excessive. If a committee receives a 

contribution tfaM -trsif' be excessive, tfae committee must either: 

• Retum the qu|^onable check to the donor; or 

• Deposit the ontributions and keep enough money on hand to cover all potential 

refimds until the legality of the contribution is established. If deposited, tfae 

conunittee must seek a reattribution or a redesignation of tfae excessive portion, 

following tfae instructions provided in tfae Commission regulations (see below for 

explanations of reattribution and redesignation). If tfae conunittee does not 

receive a proper reattribution or redesignation within 60 days of receiving tfae 

excessive contribution, refimd the excessive portion to tfae donor. 

11 CFR §103.3(b)(3), (4) and (5). 
C. Joint Contributions. Any contribution made by more tfaan one person, except for a 

contribution made by a partnersfaip, sfaall include tfae signature of each contributor on the 

check, money order or otfaer negotiable instrument or in a separate writing. A joint 

contribution is attributed equally to eacfa donor unless a statement indicates tfaat tfae funds 

should be divided differendy. 11 CFR §110.1(k)(l) and (2). 

D. Reattribution of Excessive Contributions. Commission regulations permit 

conunittees to ask donors of excessive contributions (or contributions that exceed tfae 

conunittee's net debts outstanding) wfaetfaer tfaey faad intended tfaeir contribution to be a 

joint contribution from more tfaan one person and wfaetfaer they would like to reattribute 

the excess amount to anotfaer contributor. Tfae committee mus^ U'- tfae contributor 

diat: 

1. Tfae reattribution must be signed by botfa contribut^, 

2. Tfae reattribution must be received by tfae comi^ii^^ wit' - : fi' • days of the 

committee's receipt of tfae original contribut 

3. Tfae contributor may instead request a re^mi of the excessive i.t. 

llCFR§110.1(k)(3). V / 

Within 60 days of receiving the excessive contributraMMe conunittee must either receive 

the proper reattribution or refund tfae^xcessive portion^M^e donor. 11 CFR 

§§103.3(b)(3) and 110.1(k)(3)(ii)(B).^tad|^ a political^^nittee must retain written 

records conceming tfae reattribution in^^^J ^ tn be effecl^^l CFR §110.1(1)(5). 

Notwithstanding tfae above, any excessive^ 

written instrument imp|j^i^B|h tfae name! 

attributed among th^^ividulAisted, unles! 

The committee slkfflnfv eacHontributor: 

1. How tfae contriOT^n wjbtei|j2^ted; 

2. Til ll lliMiHiiliiliiil^Bf m 

)ution tfaat was made on a 

'more tfa^one individual may be 

structed otfaerwise by tfae contributor(s). 

st a refund of the excessive amoimt. 

E. ICSffifenation of E: 

to redesigl^kdie excess 

committee im^inform thi 

1. The redeBjiation 

2. The redesi 

3. 

ive i;m!ributions. The committee may ask the contributor 

ion di die contribution for use in another election. The 

ntributor that: 

st be signed by tfae contributor; 

ust be received by tfae committee witfain 60 days of tfae 

conunittee's Kbipt of tfae original contribution; and 

Tfae contributor may instead request a refund of tfae contribution. 

llCFR§110.1(b)(5)(ii)(A). 

Witfain 60 days of receiving tfae excessive contribution, die committee must eitfaer receive 

tfae proper redesignation or refimd tfae contribution to tfae donor. 11 CFR §§ 103.3(b)(3) 

and 110.1(b)(5)(ii)(A). Further, a political conimittee must retain written records 

conceming tfae redesignation in order for it to be effective. 11 CFR § 110.1(1)(5). 
Wfaen an individual makes an excessive contribution to a candidate's autfaorized 

conimittee, tfae campaign may presumptively redesignate tfae excessive portion to tfae 

general election if the contribution: 

1. Is made before that candidate's primary election; 

2. Is not designated in writing for a particular election; 

3. Would be excessive if treated as a primary election contribution; and 

4. As redesignated, does not cause the contributor to exceed any otfaer contribution 

limit. 

Tfae committee is required to notify tfae contributor of the redesignation within 60 days of 

tfae treasurer's receipt of the contribution, and must offer the contqbutor the option to 

receive a refund instead. 11 CFR 110.l(b)(5)(i)(D)(ii). 

Facts and Analsrsis 

A. Facts 

During audit fieldwork, tfae Audit staff utilized a^^bination of sampISR^ng and 

focused reviews to identify apparent excessive|^^ibutid)^from individfi^^ftialing 

$94,854. Tfais total is comprised of $94,554 ^di^^^ect^BHar value of wesample 

errors, and $300, tfae result of a focused review of uR^mming contributions. Tfaese 

apparent excessive contributions resisted from FOTY na^olving tfae excessive portion 

of contributions by forwarding a presufe||^eletter to its^^obutors, informing them of 

how their contribution was redesignatec^pMh^ed or refiuiH^roie excessive 

contribution. FOTY resolved excessive mnm^H^^gtalingj^l 1,820 in an untimely 

maimer, by issuing refunds, prior to audit%ti£jAtic^ 

B. Interim Audit B^)rt ft'^^^it Divisioii^ecommendation 

The Audit staff di^fllftidiis iflter at tfae exn^jiference and provided FOTY 

representatives with a s^milMMti^^pparentlKcessive contributions. The 

reoresentatij^mjljg^} genCT^BpestlMl^proresumptive letters and issuance of 

refunds.. 

In r^SpS^yo tfae exit cc 

relative t^^^pparent ex( 

refund checBWated in Aui 

negotiated. Tn^mditsts 

2011, totaling $217 

fence, K i Y representatives submitted documentation 

sive Ontributions. The Audit staff received copies of three 

st 2011 and totaling $550; two of tfaese cfaecks were not 

Iso received copies of presumptive letters dated August 5, 

As a result of the re^ds issued prior to audit notification ($11,820), die refunds issued 

in response to tfae exit conference ($550) and tfae presumptive letters sent to contributors 

in response to tfae exit conference ($21,450), tfae remaining apparent excessive 

contributions FOTY did not address totaled $61,034 ($94,854 - $11,820 - $550 -

$21,450). 

* The sample error amount was projected using a Monetary Unit Sample with a 9S percent confidence level 

plus the result of a focused review of contributions not included in die sample population. The sample 

estimate could be as low as $53,689 or as high as $135,419. 
10 

Tfae Interim Audit Report reconunended tfaat FOTY provide documentation 

demonstrating tfaat contributions totaling $61,034 were not excessive. Absent sucfa a 

demonstration, FOTY sfaould faave resolved tfaese apparent excessive contributions by 

either (1) sending presumptive redesignation/reattribution letters informing contributors 

about faow the excessive portion of their contributions was resolved and offering a refund, 

(2) refimding the excessive portion of each contribution and providing evidence of such 

refunds, (3) disclosing the contributions requiring refund on Schedule D if funds were not 

available to make the necessary refunds, or (4) making a payment of $61,034 to the U.S. 

Treasury and providing evidence of such payment. 

C. Committee Response to the Interim Audit Report ^ 

In response to the Interim Audit Report, FOTY provided con\-« i»f presumptive 

redesignation and/or presumptive reattribution letters sent^ii'^'.-ijligit to receiving the 

Interim Audit Report. After reviewing the documentaticmthe AM I >:aff concluded tfaat 

$44,076 in apparent excessive contributions faad beg; :.-|dWl in a;^ 'r.^i! ely manner. 

FOTY also provided pfaotocopies of two negotiat^rrefund cfaecks sei.' M ^lo 

individuals, totaling $300. ^ \ ^ 

In summary, of die $94,854 in apparent excessive c n::.: hi- ons, FOTY faas demonstrated 

diat it resolved contributions totaling,$77,896 ($21,45(i • 11.820 + $550 + $44,076) in 

an untimely manner. 

Findings. Failure, to File ^IjaurlP^pSes 

Summary j ^ 

During audit fieldwoi i, ^ .. viei>- nf contributid^|l&ceived during tfae 48-faour filing 

periods revealed tfaat FOW \..I\K: n .:!.- '• '..^m notices for 51 contributions totaling 

$75,700. \lti-: i \ "ILJ !::::lh-ii i:i v .-:•.• ii " general election contributions. 

In rj^*-'"!^ to tfae Inti-i iiii .A idit l<i-:'i!|^recommendation, FOTY representatives stated 

tfaat tlie5^^^ no addition.". : :orm.v ..-n to provide in connection witfa tfais finding. 

Legal Standard 

Last-Minute Cinilriiiutyns (48-Hour Notices). Campaign conunittees must file special 

notices regarding i ti-.^iutions of $1,000 or more received less tfaan 20 days but more 

than 48 hours beforq^y election in whicfa tfae candidate is running. This rule applies to 

all types of contributions to any authorized committee of tfae candidate, including: 

• Contributions from tfae candidate; 

• Loans from tfae candidate and otfaer non-bank sources; and 

• Endorsements or guarantee of loans from banks. 11 CFR § 104.5(f) 
11 

Facts and Analysis 

A. Facts 

During audit fieldwork, tfae Audit staff reviewed contributions of $1,000 or more 

received during tfae 48-faour notice filing period for tfae primary election (4/15/2010 -

5/01/2010) and for die general election (10/14/2010 - 10/30/2010). FOTY failed to file 

48-faour notices for 51 contributions totaling $75,700, as summarized below. 

Primary General Total 

48-Hour Notices Not Filed $2,500 

(2) if 

$75,700 

(51) 

The contributions for wfaicfa 48-faour notices were not file 

$60,200, eight political conunittees for $13,500 and two 

im 41 individuals for 

)00. 

B. Interim Audit Report & Audit Division R^ffinmendation 

This matter was discussed witfa FOTY repres^Ajves at t!l|&exit confereii^ 

Audit staff provided a scfaedule of tfae contributioin|r ^^jA^S-faour notic 

filed. FOTY representatives did not provide any co^Bns on this matter. 

die 

were not 

The Interim Audit Report recommenc 

hour notices were filed in a timely mi 

relevant. 

C. Committee Respoi 

hi response to the Injffim Au< 

additional informsRi 

FOTY eidiei 

dditional 

lit evidence tfaat tfae 48-

lents it considered 

it Repoi 

representatives stated tfaat tfaey faad no