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• fEDERr\l ELECTION CO,\1fv\lSS10N

112S K SliU r ~J.'vV,

W,\SHINC TON.O.C. 204&J

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REPORT'OF TUE AUDIT DIVISION

ON THE

BUD SHUSTER FOR COUGRESS COr·1H I TTEE

I • Bac kfJ •• 0 t~).LC!

A• 0vcrvie\'1

This report is based on an audit of the Bud Shuster

for Congress Committee (ItthQ Committee"), undertaken by the

Audit Division of the Federal Election Commission to dct~ ...mine

whether there has been compliance with the provisions of the

Federal Election Campaign Act of 1971, as amended (lithe Act").

The audit was conducted pursuant to Section 438{a)(8) of Titl~

2, United States Code, which directs the Commission to make

fro m t ; In P. toti mea udits and f ; e1dinvest; gat; 0 ns \'1; t h res II t: C t

to reports and statements filed under the provisions of the Act.

The ComIn itte e 0 r i q ina 11 y reg; s t ered \'1 i t h the 0 f f; c e

oftheel er k 0 f the U.s. H0 use 0 f Rep res en tati v eson r·' arc h 7,

19i4. On July 20, 1976, the Committee \'las designated a~ tf~e

principal campaign committee of the' Honorab,le E. G. IIBud" Shuster,

the Republican Candidate for Representative from P~nnsylvnnia's

rlinth (9th) Congr'cssional District. The Committee maintains its

headquarters in Everett, Pennsylvania •

The audif covered the period from JanuJry 1, 1975

through June 30, 1971', the fi na 1 covel·age da te of the 1a tes t

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

Comm; t tee rep 0 r tad abegin n; n~J cas h ba1a ric·e 0 f 560 7. G4 t tot J 1

r ecei pt s f 0 1" the pc l~ i 0 d 0 f $1aa, 952 • 22, tot 1 ex pe 11 d i t lJ r e ~, ·f ul"

the per; 0 d a f $105 , 2i 9•38 and a c los i n9 ca 5 h ba1anceo f S4 t 27~l • '..t ~-~ •

This a udi t rep 0 r t ; s bas edon doc umen tsanrl \'J 0 •• kin (]

papers supporting each of its factual stutcm~nts. They fort:1 p.lr':

of the .·ecord upon which the Commission based its d~cision5 on

the Ii)ut t c rsin the rep 0 r tand \" e t~ e ava; 1d b1e to COinm; ss ; 0 ne.' ~', J Ji ,~

app ,~o p•• i ute s t a f f for rev; ew•
• B. Key Pcrsonn~l

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The principal officers of the Committee thr'oughout

the peri 0 d a ud; ted \'1 ere f" r • All an G. Han c0 c kt Cha ; rIn an, nd

Mr. Gary Ickes. Treasurer.

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The audit included such tests as verification of

total reported receipts and expenditures and individual trun~­

i1 c t ; 0 ns; r e'I ie',', 0 f r cqu; '" ed sup po r t ; n9 doc umen tat; 0 n; a nul y s i ~'J

o f Co rlim itt C:'~ d (') b t un d 0 b 1 ; gat; 0 ns and, sue hothar au di t

procedures as dcc!:lcd nccc5sar-y under the circumstances.

I 1• Au dito r '~) St J t eIII t~ n tand De 5 c r; pt ion 0 f F; nd; nq s

It is the opinion of the Audit staff, based upon exarninat; 0 n 0 f the r 0 p0 r t sand st;l t er;i cnt s f i led and the r ecor ds pre - sented, that, except for the deficiencies noted below, the

reports and stJtements of the Bud Shuster for Congress Committ~0

fairly present the financial activities of the Committee for t.lle

period covered by the audit. Further, except as noted below,

no material pr-oblems ;n complying with the Federal Election

Cam pai 9n Act \-1 ere dis co ve '" ed dur ; n9 the co U r se 0 f the audit.

A. Disclosure of Transf~rs

Section 434(b)(~) of Title 2, United States Code,

states that each report shJll contain the name and address cf

e a c h pol ; tic a·1 COinmit tee 0 '" can did ate fro m \1 h; ch the rep 0 r tin ,'!

committee or the candidate received, or to which that committee

or candidate made, any transfer of funds, together with the

amounts and dates of all transfers.

Are v; r; 'o'J 0 f the Comr:l; t tee •s con t rib uti 0 n '" ecordsail d

othe r cor.1m; t tee s' rep 0 r' tsf; 1 ed \'1 ; t h the Commiss ion rev eale <i t h\.! t

the Co lilmit tee d) d not ; t er.l i :: e 28 t ran s f e,.. S :. i n tota1; ng 4 , 2Gl~ • 0 CJ •

The unit era; zcc t r nsf c rsac C0 U nted f 0 ,.. appro ;\ i mat ely 29~~ (\ f t h

tot a1 ntJmber 0 f t ran sfers ,.. ccei vcd by the Comm; t tee and 11 :'~ ," (' t h(~

to tal do 11 a)' ar.1 0 U nt . A Co min itte e 0 f f; cia 1 exp1a; ned t hat t hr

transfers were not itemized due to an oversight on the part 0f

the Comm; t t·~e.

Recomr.l (' nd(l t ; 0 n

Based on the Audit staff's recommendation the Committee

f i 1edan amen dt~ d rep 0 r t 0 :~ 0C to bcr 12, 1977 d; s c losi n9 t !l c

transfers. The Audit staff recommends that no further action

betaken 0 nth ; 5 171 cl t t er •
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B. Disclosure of Contributions

Section 434{b)(2) and (4) of Title 2, United States

Code, st'ltcs that repol"ts shJl1 disclose the full name and

mailing 'lddrcss (occupation Jnd principal place of busincs5~

; f it ny) 0 f ea ch pe '" son \'1 h0 has mJ dcone 0 r m0 r e con t rib uti 0 n

too r for sue h commit tee 0 rca ndid J t c (i nc1udin g the pu,. c hJ S r:

of ti ckets fo'" events such as di nners, 1 unchcons, ra 11 i es, il nd

similar fundraising events) within the calendar ye~r in an

a 9 9 reg ate am 0 U ntor val ue i n e xc e 5 s 0 f S100, tog ethe r \'/ i t h t h.~

amount and date of such contl"ibutions.

A review of the Committee's contributor record5

disclosed 16 contributions in excess of S100 totaling $3,G10.OQ

\'1 ere not ; t emi zed 0nthe Cornm; t tee I s dis c los ur erepo r t 5 . TIi

; temizcd contributions accounted for approximately 25~; of th·:

total number of contributions requiring itemization and 2~~ 0;

the total dollar amount. Committee officials explained thJt

the contributions were not itemized due to a bookkeeping error.

Recommendation

The Committee filad an amended report itemizing the

contributions on Oc~ober 14, 1977. The ftudit staff, therefore,

recommends that no further action be taken on this matter.

Section 432(d) of Title 2, United States Cod~,

states, in part, that the treasurer shall obtain and keep il

receipted bill, stating the pal"ticular's, fer every expend;tur'~

made by or on bahalf of a political committee in eXCQSS of S100

inatil 0 Unt, and for any 5 Uchexpen d ; t u rei n alesse r a :~l 0 unt, , f

the a99,. ega team0 U 1~ t 0 f sue hexpan d i t ures·-·t 0 the sam c p.. ." s C t1

duri n9 a cal end a rye are xc r:.: eds S100 . Fu1'" the l", Sec t ; 0 n 10 . 9 ( c ) ( )

of the COlilnlission's Regulations provides that in the abSl!nc~ of t1

r ec ei ptedb; 11, the can c 11ed check s h0 \'1 ; n9 paymen t \1 r,,~ t ~.

i nv0 ; ce, b; 11, 0 r con tempo ran eo us rn eIn 0 ran duI~\ Will s uf fie e ·

c. a ; n t enG nco. 0 f ..i 0 00 r tin gOo cum e n tat; 0 n

for Exncndi :IJr'cs

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A review of the COMmittee's invoices r~veal~d thJ~

the C0 r:1 ti1 ittee d; d not r.i;l i nt uina dequa t (~ sup p0 r t ; n q doc u~~ .~ r. ~. l~ ~. ; \"j fl

for 5i expend; tures. Thp.se expend; tutcS total eJ :..t •• ,·~9i. 71 .~'1·~

a Cco unted for a ppro xi r.13 tel y 21:.: 0 f .the tot a1 n1I ~l bC t

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the tot a1 do 11 a r v0 1uIn e a f Comill ; t tee expen d; t U 1· CS •• Cqui ,.. ; n Cf

such documentation •
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Sub seq tI P. nt too ur f 1C1d\'10 ).. k t the Com111 itte Q 0 bt a i ned 11":

5 ubm; t ted f 0 ).. rev i 'II by the Au d itst J f f sup p0 r t ; n9 doc UIi1 C n tat i () :.

for 50 0 f the e x pr. nd ; t ures • I n add i t ion tat 1c tl S t t \'/ 0 c1 t t em pt ~~

have bee n mad e toob t a; n doc uIII cn tat 10 n for the rema i ni n9 s e vf~ n (,:)

expenditures. These expenditures involved two entities. One

has not rC5pondcd to ComMittee requests, and the other is no

longer in business •

HpcommcndJtion

Based on the Commi ttee ",;; Qfforts outl i ned above, the I\udi

stilff recomMends th.Jt the Commi ss;on determi ne that tht~ COlnt~; t~.·

hd sus e d its L s t e f for' t s toe 0 mp'1 y \', i t h Sec t ion 4 32 ( d) it nd fur'::" ':-

rccomr.lcnds that no further action be taken on this matte.--.

D. Cornorate Contributions

Section 441b(a) of Title 2, United States Code, state~~'1

in part, that it 1S unlawful for any corporation organized by

() utho r ; t y 0 fany 1a\'1 0 f Con 9 ress toma I< e a con t rib ut ; 0 nor e :< p (: n ': -

i t ur e ; nco nne c t ion \'1 i t hany e 1e c t ion to any pol ; t ; cal 0 f fie C Ii n :..

U n1awf u1 for any can did ate t pol it; cal comm; t tee, 0 rother per S0 r;

to k no \,/ ; n91y ace ep tor r ec e i ve any con t r; but ion fromaca }" p0 rat i c :~ .

Arevie\o,J 0 f the Comin ; t tee I 5 con t r ; but 0 r r e c 0 .-- d rev!? ,1 1 t - :

41 con t rib ut ; 0 ns r eC ei ved f r' 0 rn 35 co Ii1 pan i e5 • Pee ar dS III J i n t J i r~·~ .!

by the Sec l" eta r y 0 f Stu t e ; nthestate sin'I 0 1ve d ; nd i cat edt h.1 ;:

ten (10) of the companies accounting for 13 of the contribution',

tot «11 ; n9 S1 , 225 . 00 \'1 ere inc 0 r' po rat e d . The COinra i .t tee \'1 a 5 i nfori 1r'· ,

on 0c t 0 be." 10, 1977 by t h.e t\ U ditst a f f 0 f the a p par c nteo r p0 r J ~.

stat uS 0 f the C 0 III pan i es . The In a t t e r \'/ a s ref e l" red tothe

Commission's Office of General Counsel on October 6, 1977,

where Matter Under Review 457(77) was initi~tcd. All of the

con t rib uti 0 nS \,' ere ref unded b'I the Comiii itt eeon i 0 vePl be." 13, 1~) .' .

Fur the 1" i nformJ t ; 0 nob t a i ned 'f rom the con t r ; but 0 t"s dis c10 5 edti ! ;~

S (lve n (7) 0 f the can t r i hut ion s totali n9 S8 75 . 00 from f 0 U)· (,t) (l:'

1. he COl" POt· a t ion s \tJ ere not dr ·1 \':non cor PO)" ate uc C t1 U n t 5 • Res p0 n .,: (", ,

f r () In the rein u ; n; n9 s; x (6) cor' p0 rati OilS i ndie li ted t hat t hP.1 \'/ C~ }. ~~

un ~IJ are 0 f the pro vis ; 0 nS 0 f Sec t ; 0 n 44 1b ( a) 0 f Tit1e 2, Unit e d

Stutes Code.

Bus edon the s e fa c t $, and t ~1 e Co r:1 In ittc e • s prompta c t i Ii n

in refunding the monics, the Co~mission voted on January 13, ~9;

toe los e t h f i 1eon the mat t e r \o,J; t h n0 fur the 1" action •
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FEDERAL ELECTION COM,\t1lSSION

1425 1\ SIRH I ~v

WASHI~C ION,[)\'-. 2040\

ADDITIONAL INFORMATION REGARDmG mIS ORGANIZATION

MAY BE lDCATED IN A 00MPIElED OOMPLIANCE ACrIOO

FlLE RELEASED BY THE aJ+1ISSION AND MADE PUBLIC IN

'!HE PUBLIC RECORDS OFFICE. FOR '1HIS PARTICUlAR

ORGANIZATION'S COMPLETED OOMPLIANCE ACrION FIIE

SlMPLY JSK FUR THE PBESS StM-1ARY OF MlJR 4J 'YSZ . ,

'lBE PRESS St»1ARY WIlL PROVIDE A BRIEF HIS'IORY OF

'lHE CASE AND A SlM1ARY OF 11£ ACrIONS TAKEN, IF ANY.