Interim Report of the

Audit Division on the

Bartlett for Congress Committee

January 1, 2007 - December 31, 2008

Why the Audit

Was Done

Federal law permits the

Commission to conduct

audits and field

investigations of any

political committee that is

required to tile 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.1 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.

About the Campaign (p. 2)

The Bartlett for Congress Committee is the principal campaign

committee for Roscoe G. Bartlett, Jr., Republican candidate for

the U.S. House of Representatives from the state of Maryland, 6th

District, and is headquartered in Middletown, Maryland. For

more information, see the chart on the Campaign Organization,

p.2.

Financial Activity (p. 2)

• Receipts

o Contributions from Individuals

o Contributions from Other

Political Committees

o Offsets to Operating Expenditures

o Other receipts

o Total Receipts

• Disbursements

o Operating Expenditures

o Total Disbursements

$ 210,439

128,752

3,140

18,418

$360,749

$272,131

$272,131

Finding and Recommendation (p. 3)

• Misstatement of Financial Activity

1

 2U.S.C. §438(b).
Interim Report of the

Audit Division on the

Bartlett for Congress Committee

January 1, 2007 - December 31, 2008
Table of Contents

Page

Parti. Background

Authority for Audit 1

Scope of Audit 1

Part II. Overview of Campaign

Campaign Organization 2

Overview of Financial Activity 2

Partni. Summary

Finding and Recommendation 3

Part IV. Finding and Recommendation

Misstatement of Financial Activity 4
Parti

Background

Authority for Audit

This report is based on an audit of the Bartlett for Congress Committee (BFC),

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 scope of this audit was limited to the following:

1. The consistency between reported figures and bank records.

2. The disclosure of individual contributors' occupation and name of employer.
Part II

Overview of Campaign

Campaign Organization

Important Dates

• Date of Registration

• Audit Coverage

Headquarters

Bank Information

• Bank Depositories

• Bank Accounts

Treasurer

• Treasurer When Audit Was Conducted

• Treasurer During Period Covered by Audit

Management Information

• Attended FEC Campaign Finance Seminar

• Used Commonly Available Campaign

Management Software Package

Bartlett for Congress Committee

September 12, 1991

January 1, 2007 - December 31, 2008

Middletown, Maryland

Two

Two checking; one Certificate of Deposit

Robert Perry

Robert Perry

No

Yes

Who Handled Accounting and Recordkeeping

Tasks

Volunteer Staff

Overview of Financial Activity

(Audited Amounts)

Cash on hand @ January 1,2007 $204.949

Receipts

o Contributions from Individuals

o Contributions from Other Political Committees

o Offsets to Operating Expenditures

o Other Receipts

Total Receipts

Disbursements

o Operating Expenditures

Total Disbursements

Cash on hand @ December 31, 2008

$210,439

128,752

3,140

18,418

$ 360,749

$272,131

! 1272,131

$293,567
Part III

Summary

Finding and Recommendation

Misstatement of Financial Activity

A comparison of BFC's reported financial activity to its bank records revealed that cash on hand,

receipts, disbursements and ending cash on hand had been misstated for calendar years 2007 and

2008. For 2007, BFC understated beginning cash on hand by $1,517, understated receipts by

$20,061, understated disbursements by $12,373, and understated ending cash on hand by $9,205.

In 2008, beginning cash on hand was understated by $9,205, receipts were understated by

$17,635, disbursements were understated by $55,310, and the ending cash on hand was

overstated by $24,575. The Audit staff recommends that BFC amend its reports to correct the

misstatements. (For more detail, see page 4.)
Part IV

Finding and Recommendation

Misstatement of Financial Activity I

Summary

A comparison of BFC's reported financial activity to its bank records revealed that cash on hand,

receipts, disbursements and ending cash on hand had been misstated for calendar years 2007 and

2008. For 2007, BFC understated beginning cash on hand by $1,517, understated receipts by

$20,061, understated disbursements by $12,373, and understated ending cash on hand by $9,205.

In 2008, beginning cash on hand was understated by $9,205, receipts were understated by

$17,635, disbursements were understated by $55,310, and the ending cash on hand was

overstated by $24,575. The Audit staff recommends that BFC amend its reports to correct the

misstatements.

Legal Standard

Contents of Reports. Each report must disclose:

• The amount of cash on hand at the beginning and end of the reporting period;

• The total amount of receipts for the reporting period and for the election cycle;

• The total amount of disbursements for the reporting period and for the election cycle; and

• Certain transactions that require itemization on Schedule A (Itemized Receipts) or Schedule

B (Itemized Disbursements). 2 U.S.C. §434(b)(l), (2), (3), (4), and (5).

Facts and Analysis

The Audit staff reconciled reported financial activity to its bank records for calendar years 2007

and 2008. The following charts outline the discrepancies for the beginning cash balance,

receipts, disbursements, and ending cash balance for each year. Succeeding paragraphs address

the reasons for the misstatements.

2007 Activity

Opening Cash Balance

©January 1,2007

Receipts

Disbursements

Ending Cash Balance

©December 3 1,2007

Reported

$203,432

$111,480

$31,731

$283,181

Bank Records

$204,949

$131,541

$44,104

$292,386

Discrepancy

$1,517

Understated

$20,061

Understated

$12,373

Understated

$9,205

Understated

The beginning cash balance on January 1,2007 was understated by $1,517 and is unexplained,

but likely resulted from prior period discrepancies.
The understatement of receipts resulted from the following:

• Unreported interest from Certificate of Deposit $8,231

• Eight unreported Political Action Committee receipts 7,300

• Unreported receipts which cleared bank account 4.530

Understatement of receipts $20.061

The understatement of disbursements resulted from the following:

• Thirteen unreported disbursements $12,666

• Three reported disbursements not supported by check or debit (273)

• Unexplained difference (20)

Net understatement of disbursements $12.373

The $9,205 understatement of ending cash on hand resulted from the unexplained beginning cash

balance difference as well as the receipt and disbursement misstatements noted above.

2008 Activity

Opening Cash Balance

@ January 1, 2008

Receipts

Disbursements

Ending Cash Balance

©December 3 1,2008

Reported

$283,181

$211,573

$172,716

$318,142"

Bank Records

$292,386

$229,208

$228,027

$293,567

Discrepancy

$9,205

Understated

$17,635

Understated

$55,310

Understated

$(24,575)

Overstated

The understatement of receipts resulted from the following:

• Under-reported receipts

• Unreported interest from Certificate of Deposit

Understatement of receipts

The understatement of disbursements resulted from the following:

• Disbursements not-reported

• Refund reported but not supported by check or debit

• Unexplained difference

Net understatement of disbursements

$9,042

8.593

$17.635

57,367

(2,300)

243

$55.310

BFC failed to report fifty disbursements in the amount of $57,367. These expenditures appear to

be primarily for political advertising and operating expenditures. Although the Audit staff

supplied this information to BFC, no explanation for the omission of this information on the

disclosure reports was offered.

2

 These columns do not foot as a result of a discrepancy between the ending cash balance of one report and the

beginning cash on the succeeding report in the amount of $3,895.
The ($24,575) understatement of ending cash on hand resulted from the misstatements noted

above.

At the exit conference, the Audit staff provided the BFC's representative with schedules

detailing these discrepancies. The representative agreed to file the appropriate amended reports.

Interim Audit Report Recommendation

The Audit staff recommends that, within 30 calendar days of service of this report, BFC:

• Amend its reports to correct the misstatements noted above.

• Amend its most recently filed report to correct the cash on hand balance with an

explanation that the change resulted from a prior period audit adjustment. Further, BFC

should reconcile the cash balance, of its most recent report to identify any subsequent

discrepancies that may impact the $24,575 adjustment recommended by the Audit staff.