Part II
Overview of Campaign

Campaign Organization

Important Dates

McNerney for Congress

¢ Date of Registration

May 10, 2004

¢ Audit Coverage

January 01, 2005 — December 31, 2006

Headquarters

Dulin, California

Bank Information

e Bank Depositories

4

e Bank Accounts

4 checking account

Treasurer

e Treasurer When Audit Was Conducted

William C. Woodruff

¢ Treasurer During Period Covered by Audit

Rita Copeland

Management Information

e Attended FEC Campaign Finance Seminar

No

¢ Used Commonly Available Campaign
Management Software Package

Yes

¢ Who Handled Accounting and
Recordkeeping Tasks

Paid Consultant

Overview of Financial Activity

(Audited Amounts)

Cash on hand @ January 01, 2005 $ 2,385
Receipts

o Contributions from Individuals 1,964,671
o Contributions from Political Committees 492,794
o Offsets to Operating Expenditures 820
o Other Receipts 6,032
Total Receipts $ 2,464,317
Disbursements

o Operating & Other Disbursements 2,422,850
Total Disbursements $ 2,422,850
Cash on hand @ December 31, 2006 $ 43,853



Part I
Background

Authority for Audit

This report is based on an audit of the McNerney for Congress, undertaken by the Audit
Division of the Federal Election Commission (the Commission) 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 internal review of reports filed 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, the audit scope examined:

1. The consistency between reported figures and bank records;

2. The disclosure of individual contributors’ occupation and name of employer; and,
3. The receipt and permissibility of loans.


Part ITI
Findings and Recommendations

¢ Based upon our limited examination of the reports and statements filed, and the records
presented by McNerney for Congress, no material non-compliance was discovered.


FEDERAL ELECTION COMMISSION
Washington, DC 20463

October 11, 2007

MEMORANDUM
To: Robert W. Biersack
Press Officer
From: Joseph F. Stoltz S* Swe SS
Assistant Staff Director
Audit Division
Subject: Public Issuance of the Audit Report on McNemey for Congress

Attached please find a copy of the audit report on McNerney for Congress, which
was approved by the Commission on September 27, 2007.

All parties involved have received informational copies of the report and the report
may be released to the public.

Attachment as stated

cc: Office of General Counsel
Office of Public Disclosure
Reports Analysis Division
FEC Library
Web Manager


Report of the Audit Division on

McNerney for Congress
January 01, 2005 - December 31, 2006

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 committee
appears not to have met
the threshold
requirements for
substantial compliance
with the Act.! The audit
determines 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 any of the
matters discussed in this
report.

' 2 U.S.C. §438(b).

About the Campaign (p. 2)

McNerney for Congress is the principal campaign committee for
Jerry McNerney, Democratic candidate for the U.S. House of
Representatives from the state of California, 11" District, and is
headquartered in Dublin, California. For more information, see
the chart on the Campaign Organization, p.2.

Financial Activity (p. 2)
+ Receipts

o Contributions from Individuals $ 1,964,671
o Contributions from Political
Committees 492,794
o Offsets to Operating Expenditures 820
o Other receipts 6,032
o Total Receipts $2,464,317
¢ Disbursements
o Operating Expenditures & Other $ 2,422,850
Disbursements
o Total Disbursements $ 2,422,850

Findings and Recommendations (. 3)

e The scope of the audit was limited as outlined in Part I of the
report. Based upon our limited examination of the reports and
statements filed, and the records presented by McNemey for
Congress, no material non-compliance was discovered.


Table of Contents

Part I. Background
Authority for Audit
Scope of Audit

Part II. Overview of Campaign

Campaign Organization
Overview of Financial Activity

Part III. Findings and Recommendations

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