KEKORANDUPI

TO:

FROM:

August

FRED EILAND

CHIEF, PRESS OFFICE

ROBERT J. COSTA

ASSISTANT STAFF D~t[T~ AUDIT DIVISION

.,.,

.... , 1993

A~0040S6

SUBJECT: PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON

WORLEY FOR CONGRESS 1990

Attached -please find a copy of the final audit repo-rt on

worley for Congress 1990 which was approved by the Commission ~~ on August 23, 1993.

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

FEC Library
MW00412 7

A91-21

, ....,

REPORT OF THE AUDIT DIVISION

ON

WORLEY FOR CONGRESS 1990

I. Background

A. Overview

This report is based on an audit of Worley For Congress

19"9i> ("tne--Go_itt.ee") undertaken by the Audit Division of the

!'ederal Election Co_ission in accordance viththe provis-ions ofthe Federal Election Campaign Act of 1971, as Amended ("the Act").

The audit was conducted pursuant to section 438(b) of Title 2 of

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

aay conduct audits and field investigations of any political

co_ittee required to file a report under section 434 of this

title. Prior to conducting any audit under this section, the

Co_ission shall perform an internal review of reports filed by

selected committees to determine if the reports filed by a

particular comaittee meet the threshold requirements for

substantial compliance with the Act.

The Co_ittee registered with the Clerk of the House of

Representatives on February 5, 1990, as the principal campaign

committee for David James worley ("the Candidate"). The Committee

maintains its headquarters in Morrow, Georgia.

The audit covered the period from September 11, 1989,

the date of the Committee's flrst recorded transaction, through

December 31, 1990, the closing date for the latest report which

should have been filed at the time of the audit.l/ The Committee

1/ Subsequent to the completlon of fieldwork, the Committee

filed the 1990 January 31 Year End Report (See Finding

I LA. ) .
.,

-

2

reported a beginning cash balance of $-0-; tc~al receipts of

5303,265.43; total disbursements of 5295,580.86;2/ and an ending

cash balance on November 26, 1990 of $9,180.4-.3~

This repo~t is based on documents a~d workpapers suppor~ing each of its factual statements. They form ~art of the

record upon which the Commission based its decisions on the

matters in this report and were available to the CommisS1oners and

appropriate staff for review.

B. Key Personnel

During the period covered by the audit. the Committee'S

Treasurer was Kevin Bruce Getzendanner. The current Treasurer is

Gregg C. Brasher.

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 debts and

obliqations; and such other audit procedures as deemed necessary under the circu••tances•

II. Audit Findings and Recoaaendations

A. Failure to File Disclosure Report

Sections 434{a){1) and (2)(A)(iii) of Title 2 of the

United States Code state, in relevant part, that the treasurer of

a political coaaittee shall file reports of receipts and

disbursements in accordance with the provisions of the Act. If

the political comaitte. is the principal caapaign comaittee of a

candidat. for the Bous. of Representatives or for the Senate in

any calendar year during which there is a regularly scheduled

election for which such candidate is seeking election, a report

for the quarter ending December 31 shall be filed no later than

January 31 of the follOWing calendar year.

The Coaaittee did not file a disclosure report for the

period Noveaher 27, 1990 through December 31, :990 (Year End

Report due to be filed on January 31, :991'. Based en bank

~/ Total receipts and total d~sbursemen~s were calc~:a:ed =y

summing the current perlod totals for each report1ng period.

This differs from the figures for total recelpts and total

disbursements ($311,062.48 and S295,580.96, respectlvelyi

calculated by summing the amounts reported as calendar

year-to-date for 1989 and 1990.

3/ The totals do not foot due to dlscrepancles 1n t~e reported

cash balances.
3

statements and other Comolttee cec=:=s, th@ Audit staff determlned

that receipt activity totaling $6,243.84 and disbursement activity

totaling $8,423.83 shou:d have been reported for the period.

At the exit co~:erence! :~e Candidate indi=ated he was

aware tha~ the report had net been f:led and expressed a

willingness to file the disclosure repor~ for the period noted

above.

On July lS, 1991, the Committee filed the Year End

Report for 1990 with the Federal Election Commission.

Recommendation 11

The Audit staff recommends no further actlon on thlS matter.

B. Contributions Subject to 48 Bour Disclosure Notices

Section 434(a){6) of Title 2 of the United States Code

requires that each Treasurer of the principal campaiqn committee

of a candidate shall notify the Clerk, the Secretary, or the

Coaaisaion. and the Secretary of State, as appropriate, in ~~~~in9, of any contribution of $1,000 or more received by any

authorized -coaaltte-e of $ucn-candidate after th4! ~~th day, but

more than 48 hours before, any election. This notification shall

be .ada within 48 hours after the receipt of such contribution and

shall include the naa. of the candidate and the office souqht by

the candidate, the identification of the contributor, and the date

of receipt and a.ount of the contribution. The notification

required under this paragraph shall be in addition to all other

reporting requireaents under this Act.

Section 431(S)(A) of Title 2 of the United States Code

states that the term ·contribution- includes any gift,

subscription, loan, advance, or deposit of aoney or anythinq of

value made by any person for the purpose of influencing any

election for Federal office.

The Audit staff reviewed all Committe. deposits made

between tvo and twenty days of the general electicn ~11/06/90' to

identify and schedule all contrlbutlons greater than or equal to

$1,000. Th@ auditors identified 14 such contributions, including

two receipts in the fors of loan proceeds, ~otal~~g 532,500. Of

these, it appears the Committee did not fl:e the =equired ~otlces

for 6 contributions, totaling $:8,500, inc:udlng c~n~ributions :~

the form of loan proceeds (Sll,SJO\.

At the exit conference, the :andidate was provlded wlth

a photocopy of a schedule detalling these :~ems. :he Candidate

could provide no explanation and indicated the ~a~~e= would be

further researched.