Attachment as stated

December 17, 1979

PUBLIC ISSUANCE OF AUDIT REPORT -

DEMOCRATIC NATIONAL COMMITTEE - TRAVEL

ESCRO\v ACCOUNT

FRED EILAND

PHESS OFFICE

BOB COSTA

JUDY HAWKIN~

FEDFRAI. ELECTION COMMISSION

W"~IlI~c; ION. DC 11l4bl

cc: FEC Library

R.=\D

Public Kecord

Informational copies of this report have been received

by all parties involved and this report may be released to

the publLc.

nt t.~ICjl":,-; i.:;i0.:"s,~ find a .:::opy of the final iludi t report

of the Democratic National Committee - Travel Escrow Account

which 'vas approved by the Commission on December 6, 1979 •

SUBJECT:

FROH:

THROUGH:

MEMOHAN DUM

TO:

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I. Backqround

REPORT OF THE AUDIT DIVISION .. ON THE

DEt-10CHATIC NA'I'IONAL COmUTTEE - TRAVEL ESCROW ACCOllN'f

FEDERAL Ell ( II( IN COMMISSION

\\ ·\""1:-'<; II IN. (ll :111'0\

. A. overview

The audit covered the period from July 1, 1977

throuqh September 30, 1979, the final coveraqe date of the

most recent report filed by the .Committee. The Committee

reported an opening cash balance on July 1, 1977 of $-0-,

total receipts for the period of $549,153.45, total expenditures

for the period of $538,102.91, and a closing cash balance on

September 30, 1979 of $11,050.54 •

The Committee reqistered with the F0d0ral~10ction

Commission on August 8, }977, and maintains its headquarters

in \vashin<Jton, D.C. 'l'hC' primary function of the Committee, as

an affi1i.:lte of the Democl."i"ltic National Committee ("DNC"), is

to receive reimbursement checks for individuals traveling on

government .aircraft for political purposes. All money received

is submitted to the u.s. Treasurer or other billing agency. As

an affiliate of the DNe, all administrative expenses of the

Committee are paid by thu DNC Services Corporation which serves

.as the source for disbursements of administrative costs for all

DNe affiliates.

This.report is based upon an audit of the Democratic

Nil tional Conuni ttee - Travel Escrow Account (" the Cammittee") ,

undertaken by the Audit Division in accordance with the .

Commission's audit policy to determine whether there has been

compliance \.;i th the provisions of the Federal. F.lection 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

Cod~ which directs the Commission to make from time to time

audits and field investiqations with"respect to reports and

statements filed under the provisions of the Act.

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II. Finding ilnd RecommC'ndation

B. Key Personnel

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I t is the opinion o!: ,the i\udi t sta fi, based upon examination

of the reports 'and statcmei1ts filed and the records presented, that

the reports ~ll1d st.:ltemcnb; of the Democratic National Cnmr.littee ...:

1'ravel E~crow Account f~irly p~cscnt the financial acti~ities of

the Conuuittcc for the pQl'iod covered by the audit. No :a;lterial

problems in complyinq wi th the Feder.:ll Election Car.1pa :i.(T~ l\ct were,

discovered during the cotlrsl.~ of the audit•

The audit incl~deJ ~uch tristsas verification of total rcpol~tcd receipts, exp(~nc1i tllres and individual, transactions;

review of required supportinq documentation;' analysis of

COITuni ttec debts, and obli ga tions; and such other audit procedures

as deeml:xl necessary under the circumstances.

This report is based upon 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 matters in the report and were available to Commissioners

and appropriate staff for review.

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'rhe principal officer.sof the Committee during the , period audi. ted were as, follows i '

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Date Chairman ' ,

Treasurer --'

7/1/77 - 6/6/78 Kenneth' M. Curtis Joel !>!cCleary

6/6/78 ..

- 4/4/79 John C• White Evan Dobelle

,0- 4/4/79 - 9/30/79 John C. \'lhite Peter G. Kelly

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C. Scope