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REPORT OF THE AUDIT DIVISION

ON THE

NATIONAL REPUBLICAN HERITAGE

GROUPS (NATIONALITIES) COUNCIL

1325 K 5TREE r 'NW.

WA5HINGTON.D.C. .:!0463

FEDERAL ELECTION COMMISSION

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The Committee registered with the Comptroller General

of the United States on April 17, 1972, as an affiliate of the

Republican National Committee. The Committee maintains its

headquarters in Washington, D.C.

The audit covered the period from January 1, 1976

through December 31, 1978, the final coverage date of the

latest report filed by the Committee at the time of the audit.

The Committee reported a beginning cash balance on January 1,

1976 of $20,190.97, total receipts for the period of

$371,696.98, toeal expenditures for the period of $355,408.41,

and a closing cash balance on December 31, 1978 of $36,479.54.

This audit report is based on documents and working

papers which support each of the factual statements. They

form part of the record upon which the Commission based its

decisions on the macters in the report and were available to

Commissioners and appropriate staff for review.

A. Overview

This report is based on an audit of the National

Republican Heritage Groups (Nationalities) Council (lithe

Committee") undertaken bv the Audit Division of the Federal

Election Commission in accordance with the Commission's

audit policy to determine whether there has been compliance

with the provisions of the Federal Election Campaign Act of

1971, as amended ("the Act"). The audit was conducted pursuant

to Section 438(a) (8) of Title 2 of the United States Code

which directs the Commission to make from t~me to time audits

and field investigations with respect to reports and statements

filed under the provisions of the Act.

I. Background

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?.ecomrnendation

A.Acceptance of Corporate Contribution

II. Finding and Recommendation

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B. Key Personnel

Section 441b(a) of Title 2 cf the Unit~d States

Code states, in part, that it is unlawful for any corporation

to make a contribution or expenditure in connection with a~7 ~l=c~~on to Federal office.

During the course of the audit it was determined

that the Committee received and accepted a $100.00 contribution

from an incorporated entity in March of 1976. Pursuant to a

recommendation by the Audit staff, the Committee determined

that the check had been drawn on a prohibited source and

subsequently refunded the entire amount on April 3, 1979.

The COIn.llittee has provided the Audit staf:: with copies of

both sides of the cancelled refund check.

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Since the Committee refunded the contribution and

submitted evidence of the refund, it is the recommendation

of the Audit staff that no further action be taken on this

matter.

c. Scope

The audit included such tests as verification of

total reported receipts and expenditures and individual

transactions; review of required supporting documentation

and analysis of Committee debts and obligations and such

other audit procedures as deemed necessary under the

circumstances.

'rhe principal officers of the Committee during the

period covered by the audit were the Honorable Edward J. Der~inski, Chairman for the period January 1, 1976 through - - -'MaT 20, 1977, Mitchell P. Kobe1inski, Chairman for the period

May 21, 1977 through December 31, 1978, and Stanley Glod,

Treasurer for the period January 1, 1976 through December 31,

1978.

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