Final Audit Report of the 

Commission on the Joe Walsh 

for Congress Committee, Inc. 

(January 1, 2011 - December 31, 2012) 

Why the Audit 

Was Done 

Federal law permits the 

Commission to conduct 

audits and field 

investigations of any 

political committee that is 

required to file 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.^ 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) 

Joe Walsh for Congress Committee, Inc. is the principal 

campaign committee for Joe Walsh, Republican candidate 

for the U. S. House of Representatives from the state of Illinois, 

8th District, and is headquartered in Lake Zurich, Illinois. For 

more information, see the Campaign Organization Chart, p. 2. 

Financial Activity (p. 2) 

Receipts 

o Contributions from Individuals $ 1,321,815 

o Contributions from Political 

Committees 662,810 

o Other Receipts 26,455 

Total Receipts $2,011,080 

Disbursements 

o Operating Expenditures $ 1,858,014 

o Loan Repayments^ 13,400 

o Contribution Refunds 22,650 

o Other Disbursements 114,350 

Total Disbursements $2,008,414 

Commission Findings (p. 3) 

• Disclosure of Occupation/Name of Employer (Finding 1) 

• Receipt of Contributions in Excess of the Limit (Finding 2) 

Additional Issue (p. 4) 

• Disclosure of Occupation/Name of Employer - Best Efforts 

' On September 1,2014, the Federal Election Campaign Act of 1971, as amended C'the Act"), was 

transferred from Title 2 of the United States Code to new Title S2 of the United States Code. 

' 52 U.S.C. §30111(b) (fbnnerly 2 U.S.C. §438(b)). 

^ These repayments were for loans from the previous election cycle. 
Final Audit Report of the 

Commission on the Joe Walsh for 

Congress Committee, Inc. 

(January 1, 2011 - December 31, 2012) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Audit Hearing 1 

Part II. Overview of Campaign 

Campaign Organization 2 

Overview of Financial Activity 2 

Part III. Summaries 

Commission Findings 3 

Additional Issue 4 

Part IV. Commission Findings 

Finding 1. Disclosure of Occupation/Name of Employer S 

Finding 2. Receipt of Contributions in Excess of the Limit 8 

Part V. Additional Issue 

Disclosure of Occupation/Name of Employer - Best Efforts 12 
Parti 

Background 

Authority for Audit 

This report is based on an audit of the Joe Walsh for Congress Committee, Inc. (JWFC), 

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 52 U.S.C. §30111(b) (formerly 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 52 U.S.C. 

§30104 (formerly 2 U.S.C. §434). Prior to conducting any audit under this subsection, 

the Commission must perform an intemal 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. 52 U.S.C. §30111(b) (formerly 2 

U.S.C. §438(b)). 

Scope of Audit 

Following Commission-approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. the receipt of excessive contributions and loans; 

2. the receipt of contributions from prohibited sources; 

3. the disclosure of contributions received; 

4. the disclosure of individual contributors' occupation and name of employer; 

5. the consistency between reported figures and bank records; 

6. the completeness of records; and 

7. other committee operations necessary to the review. 

Audit Hearing 

JWFC declined the opportunity for a hearing before the Commission on matters 

presented in this report. 
Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Date of ReRistration January 13,2010 

• Audit Coverage January 1,2011 - December 31,2012 

Headquarters Lake Zurich, IL 

Bank Information 

• Bank Depositories Two 

• Bank Accounts Nine (six checking and three savings) 

Treasurer 

• Treasurer When Audit Was Conducted HeleneM. Miller-Walsh 

• Treasurer During Period Covered by Audit HeleneM. Miller-Walsh 

Management Information 

• Attended Commission Campaign Finance 

Seminar 

No 

• Who Handled Accounting and 

Recordkeeping Tasks 

Paid Staff 

Overview of Financial Activity 

(Audited Amounts) 

Cash-on-hand @ January 1,2011 S 21,891 

Receipts 

o Contributions from Individuals 1,321,815 

o Contributions from Political Committees 662,810 

o Other Receipts 26.455 

Total Receipts $ 2,011,080 

Disbursements 

o Operating Expenditures 1,858,014 

o Loan Repayments 13,400 

o Contribution Refunds 22,650 

o Other Disbursements 114,350 

Total Disbursements $ 2,008,414 

Cash-on-hand @ December 31,2012 $ 24,557 
Part III 

Summaries 

Commission Findings 

Finding 1. Disclosure of Occupation/Name of Employer 

A review of all contributions from individuals requiring itemization indicated that 28S 

contributions totaling $334,146 lacked disclosure of occupation/name of employer. 

Furthermore, the Interim Audit Report stated that "best efforts" to obtain, maintain and 

submit information had not been sufficiently documented for these contributions. JWFC 

did not submit a response to the Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC filed amended disclosure reports for 

106 contributions totaling $111,860 and materially complied with the Interim Audit 

Report recommendation. 

The Conunission approved a finding that during the period covered by the audit JWFC 

failed to disclose occupation/name of employer information for 106 contributions from 

individuals totaling $111,860 and did not demonstrate "best efforts" to obtain, maintain, 

and submit disclosure information with respect to these contributions. The Commission 

did not approve a finding for the remaining 179 contributions totaling $222,286. As 

such, this matter is presented in the "Additional Issue" section. (For more details, see p. 

5.) 

Finding 2. Receipt of Contributions in Excess of the Limit 

During audit fieldwork, the Audit staff reviewed contributions from individuals to 

determine if any contributions exceeded the limit. This review indicated that JWFC 

received apparent excessive contributions from 29 individuals totaling $92,325. These 

errors occurred as a result of JWFC not resolving the excessive portions of contributions 

by forwarding a presumptive letter to the contributor or issuing a refund in a timely 

marmer. JWFC did not submit a response to the Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC provided letters sent to contributors 

for contributions totaling $60,125 that were eligible for presumptive 

redesignation/reattribution. The Audit staff considers the $60,125 as excessive 

contributions that have been resolved untimely. JWFC did not address the excessive 

contributions resolvable only by refund to contributors or the U.S. Treasury totaling 

$21,200 nor did it file amended reports to disclose these contributions on Schedule D 

(Debts and Obligations). 

The Commission approved a finding that JWFC received excessive contributions totaling 

$92,325. (For more details, see p. 7.) 
Additional Issue 

Disclosure of Occupation/Name of Employer - Best Efforts 

As detailed in Finding 1 above, the Audit staff's review of all contributions from 

individuals requiring itemization indicated that 28S contributions totaling $334,146 

lacked disclosure of occupation/name of erhployer. Furthermore, the Interim Audit 

Report stated that "best efforts" to obtain, maintain and submit information had not been 

sufficiently documented for these contributions. JWFC did not submit a response to the 

Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC filed amended disclosure reports for 

106 contributions totaling $111,860 and materially complied with the Interim Audit 

Report recommendation. 

The Commission did not approve by the required four votes the portion of the Audit 

staffs recommended finding relating to JWFC's "best efforts" for the remaining 179 

contributions totaling $222,286. Pursuant to Commission Directive 70,^ this matter is 

discussed in the "Additional Issue" section. (For more detail, see p. 12.) 

Available at http://www.fec.gov/directives/directive_70.pdf 
Part IV 

Commission Findings 

Finding 1. Disclosure of Occupation/Name of Employer 

Summary 

A review of all contributions from individuals requiring itemization indicated that 285 

contributions totaling $334,146 lacked disclosure of occupation/name of employer. 

Furthermore, the Interim Audit Report stated that "best efforts" to obtain, maintain and 

submit information had not been sufficiently documented for these contributions. JWFC 

did not submit a response to the Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC filed amended disclosure reports for 

106 contributions totaling $111,860 and materially complied with the Interim Audit 

Report recommendation. 

The Commission approved a finding that during the period covered by the audit JWFC 

failed to disclose occupation/name of employer information for 106 contributions from 

individuals totaling $111,860 and did not demonstrate "best efforts" to obtain, maintain, 

and submit disclosure information with respect to these contributions. The Commission 

did not approve a finding for the remaining 179 contributions totaling $222,286. As 

such, this matter is presented in the "Additional Issue" section. 

Legal Standard 

A. Itemization Required for Contributions from Individuals. An authorized 

candidate committee must itemize any contribution from an individual if it exceeds 

$200 per election cycle, either by itself or when combined with other contributions 

from the same contributor. 52 U.S.C. §30104(b)(3)(A) (formerly 2 U.S.C. 

§434(b)(3)(A)). 

B. Required Information for Contributions from Individuals. For each itemized 

contribution from an individual, the committee must provide the following 

information; 

• the contributor's full name and address (including zip code); 

• the contributor's occupation and the name of his or her employer; 

• the date of receipt (the date the committee received the contribution); 

• the amount of the contribution; and 

• the calendar year-to-date total of all contributions from the same individual. 52 

U.S.C. §30104(b)(3)(A) (formerly 2 U.S.C. § 434(b)(3)(A)) and 11 CFR §§ 

100.12 and 104.3(a)(4)(i). 

C. Best Efforts Ensure Compliance. When the treasurer of a political committee 

shows that the committee used best efforts (see below) to obtain, maintain, and 

submit the information required by the Act, the committee's reports and records will 
be considered in compliance with the Act. 52 U.S.C. §30102(i) (formerly 2 U.S.C. § 

432(0) and 11 CFR§104.7(a). 

D. Definition of Best Efforts. The treasurer and the committee will be considered to 

have used "best efforts" if the committee satisfied all of the following criteria. 

• All written solicitations for contributions included: 

o a clear request for the contributor's full name, mailing address, occupation, 

and name of employer; and 

o the statement that such reporting is required by Federal law. 

• Within 30 days of receipt of the contribution, the treasurer made at least one 

effort to obtain the missing information, in either a written request or a 

documented oral request. 

• The treasurer reported any contributor information that, although not initially 

provided by the contributor, was obtained in a follow-up communication or was 

contained in the committee's records or in prior reports that the committee filed 

during the same two-year election cycle. 11 CFR § 104.7(b). 

Facts and Analysis 

A. Facts 

A review of all itemized contributions from individuals indicated that 285 contributions 

totaling $334,146, or 29 percent of the dollar value of individual contributions required to 

be itemized by JWFC, lacked disclosure of occupation/name of employer. Most of the 

contributor entries wiA missing information were either disclosed with the notation "Info 

Requested" or left blank on the Schedules A (Itemized Receipts) filed with the 

Commission. 

During audit fieldwork, the Audit staff reviewed the receipt documents provided by 

JWFC to determine if it had utilized "best efforts" to obtain, maintain and submit &e 

missing information. A JWFC representative explained that the list of contributors to 

whom the follow-up letters requesting the occupation/name of employer information 

were sent, was maintained electronically. That list was inadvertently destroyed when one 

of JWFC's computers "crashed." However, JWFC maintained a physical file for letters it 

received fi-om the contributors who responded to its request for occupation/name of 

employer information. The Audit staff reviewed the available follow-up letters and 

determined that JWFC maintained records for 88 individuals who made, in aggregate, 

106 contributions totaling $111,860. Nevertheless, during audit fieldwork, JWFC did not 

submit that information, as required, in amended disclosure reports and therefore did not 

establish "best efforts." 

B. Interim Audit Report & Audit Division Recommendation 

At the exit conference, the Audit staff discussed this matter with the JWFC representative 

and presented a list of 88 individuals for whom the occupation/name of employer 

information was available but not disclosed. The JWFC representative agreed to amend 

the reports to disclose the missing information. 
The Interim Audit Report recommended that JWFC establish "best efforts" by amending 

its reports to disclose the missing information relating to the 106 contributions. 

C. Committee Response to the Interim Audit Report 

JWFC did not submit a response the Interim Audit Report, nor were amended reports 

filed. The Audit staff made several attempts to contact the JWFC representative but was 

unsuccessful. 

D. Draft Final Audit Report 

The Draft Final Audit Report reiterated that JWFC establish "best efforts" by amending 

its reports to disclose the missing information relating to the 106 contributions. 

E. Committee Response to the Draft Final Audit Report 

In response to the Draft Final Audit Report, JWFC stated that it made "best efforts" to 

collect information for all 285 contributions that lacked disclosure of occupation/name of 

employer. As having done so during fieldwork, JWFC re-emphasized its adherence to its 

established internal procedures by referring to a miscellaneous report filed previously 

with the Commission, detailing JWFC's procedures for issuing letters to collect the 

missing contributor information. JWFC further asserted that its physical file for letters 

received from contributors who responded to its request for occupation/name of employer 

information was evidence of its "best efforts" to collect the information from all 

contributors. JWFC again admitted that its electronic list was inadvertently destroyed 

when one of its computers "crashed" and it no longer had physical evidence of all letters 

sent to the remaining contributors. Subsequently, JWFC filed amended disclosure reports 

for 106 contributions totaling $111,860 and materially complied with the Interim Audit 

Report recommendation. For these contributions, JWFC disclosed the required 

contributor information and established "best efforts" only after the audit. 

Commission Conclusion 

On November 6,2014, the Commission considered the Audit Division Recommendation 

Memorandum in which the Audit staff recommended that the Commission adopt a 

finding that during the period covered by the audit, JWFC failed to disclose 

occupation/name of employer information for contributions firom individuals totaling 

$334,146 and did not demonstrate "best efforts" to obtain, maintain, and submit 

disclosure information with respect to these contributions. 

The Commission approved a finding that JWFC failed to disclose occupation/name of 

employer information for 106 contributions from individuals totaling $111,860 and did 

not demonstrate "best efforts" to obtain, maintain, and submit disclosure information 

with respect to these contributions. The Commission did not approve a finding for the 

remaining 179 contributions totaling $222,286. As such, this matter is presented in the 

"Additional Issue" section. 
Finding 2. Receipt of Contributions in Excess of the Limit 

Summary 

During audit fieldwork, the Audit staff reviewed contributions &om individuals to 

determine if any contributions exceeded the limit. This review indicated that JWFC 

received apparent excessive contributions from 29 individuals totaling $92,325. These 

errors occurred as a result of JWFC not resolving the excessive portions of contributions 

by forwarding a presumptive letter to the contributor or issuing a refund in a timely 

manner. JWFC did not submit a response to the Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC provided letters sent to contributors 

for contributions totaling $60,125 that were eligible for presumptive 

redesignation/reattribution. The Audit staff considers the $60,125 as excessive 

contributions that have been resolved untimely. JWFC did not address the excessive 

contributions resolvable only by refund to contributors or the U.S. Treasury totaling 

$21,200 nor did it file amended reports to disclose these contributions on Schedule D 

(Debts and Obligations). 

The Commission approved a finding that JWFC received excessive contributions totaling 

$92,325. 

Legal Standard 

A. Authorized Committee Limits. For the 2012 election, an authorized committee may 

not receive more than a total of $2,500 per election from any one person or $5,000 

per election from a multicandidate political committee. 52 U.S.C. §30116(a)(1)(A) 

and (f) (formerly 2 U.S.C. §441a(a)(l)(A), (2)(A) and (f)); 11 CFR §§110.1(a) and 

(b) and 110.9(a). 

B. Handling Contributions That Appear Excessive. If a committee receives a 

contribution that appears to be excessive, the committee must either: 

• Return the questionable check to the donor; or 

• Deposit the check into its federal account and: 

• Keep enough money in the account to cover all potential refunds; 

• Keep a written record explaining why the contribution may be illegal; 

" Include this explanation on Schedule A if the contribution has to be 

itemized before its legality is established; 

• Seek a reattribution or a redesignation of the excessive portion, following 

the instructions provided in the Commission regulations (see below for 

explanations of reattribution and redesignation); and 

• If the committee does not receive a proper reattribution or redesignation 

within 60 days after receiving the excessive contribution, refund the 

excessive portion to the donor. 11 CFR §§ 103.3(b)(3), (4) and (5) and 

110.1(k)(3)(ii)(B). 

C. Joint Contributions. Any contribution made by more than one person (except for a 

contribution made by a partnership must include the signature of each contributor on 
the check, money order, or other negotiable instrument or in a separate writing). A 

joint contribution is attributed equally to each donor unless a statement indicates that 

the funds should be divided differently. 11 CFR§110.1(k)(l)and(2). 

D. Reattribution of Excessive Contributions. The Commission regulations permit 

committees to ask donors of excessive contributions (or contributions that exceed the 

committee's net debts outstanding) whether they had intended their contribution to be 

a joint contribution from more than one person and whether they would like to 

reattribute the excess amount to the other contributor. The committee must inform 

the contributor that: 

• The reattribution must be signed by both contributors; 

• The reattribution must be received by the committee within 60 days after the 

committee received the original contribution; and 

• The contributor may instead request a refund of the excessive amount. 11 CFR 

§110.1(k)(3). 

Within 60 days after receiving the excessive contribution, the committee must either 

receive the proper reattribution or refund the excessive portion to the donor. 11 CFR 

§§ 103.3(b)(3) and 110.1(k)(3)(ii)(B). Further, a political committee must retain 

written records conceming the reattribution in order for it to be effective. 11 CFR 

§110,1(1)(5). 

Notwithstanding the above, any excessive contribution that was made on a written 

instrument that is imprinted with the names of more than one individual may be 

attributed among the individuals listed unless instructed otherwise by the 

contributor(s). The committee must inform each contributor: 

• How the contribution was attributed; and 

• The contributor may instead request a refund of the excessive amount. 11 CFR 

§110.1(k)(3)(B). 

E. Redesignation of Excessive Contributions. When an authorized candidate 

committee receives an excessive contribution (or a contribution that exceeds the 

committee's net debts outstanding), the conunittee may ask the contributor to 

redesignate the excess portion of the contribution for use in another election. The 

committee must inform the contributor that: 

• The redesignation must be signed by the contributor; 

• The redesignation must be received by the committee within 60 days after the 

committee received the original contribution; and 

• The contributor may instead request a refund of the excessive amount. 11 CFR 

§110.1(b)(5). 

Within 60 days after receiving the excessive contribution, the conunittee must either 

receive the proper redesignation or refund the excessive portion to the donor. 11 CFR 

§§ 103.3(b)(3) and 110.1 (b)(5)(ii)(A). Further, a political committee must retain 

written records conceming the r^esignation in order for it to be effective. 11 CFR 

§110.1(0(5). 
10 

When an individual makes an excessive contribution to a candidate's authorized 

committee, the campaign may presumptively redesignate the excessive portion to the 

general election if the contribution: 

• Is made before that candidate's primary election; 

• Is not designated in writing for a particular election; 

• Would be excessive if treated as a primary election contribution; and 

• As redesignated, does not cause the contributor to exceed any other contribution 

limit. 11 CFR § 110.1 (b)(5)(ii)(B)(l )-(4). 

The committee is required to notify the contributor of the redesignation within 60 

days of the treasurer's receipt of the contribution, and must offer the contributor the 

option to receive a refund instead. 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff identified 29 individuals with apparent excessive 

contributions totaling $92,325. 

JWFC resolved $11,000 of the excessive contributions by sending presumptive 

reattributions and/or redesignations letters that were untimely. An additional excessive 

total of $60,125 could still be resolved, albeit untimely, via presumptive reattribution or 

redesignation letters being sent to the contributors. The remaining excessive 

contributions totaling $21,200 appear resolvable only by refund to the contributors or 

disgorgement to the U.S. Treasury. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff informed the JWFC representative of this matter at the exit conference. 

The Audit staff provided schedules of the apparent excessive contributions along with the 

necessary actions to resolve them. The representative stated that she planned to review 

all excessive contributions and obtain the necessary documents. She also mentioned that 

she would contact the JWFC employees to inquire about the records and reasons the 

excessive contributions occurred. 

Subsequent to the exit conference, the JWFC representative informed the Audit staff that, 

upon the receipt of the Interim Audit Report, the excessive contributions resolvable only 

by refund to the contributors ($21,200) would be disclosed on JWFC's Schedule D 

(Debts and Obligations) since JWFC has no funds available to make such refunds. In 

addition, the JWFC representative provided a list of contributors, along with their 

addresses, to whom presumptive reattribution or redesignation letters were going to be 

sent. 

The Interim Audit Report recommended that JWFC provide evidence that demonstrated 

that the contributions totaling $92,325 were not excessive or that they were timely 

resolved. Absent such evidence, JWFC should have resolved these apparent excessive 
11 

contributions by either (1) sending notices for those contributions that were eligible for 

presumptive redesignation/reattribution letters, informing contributors about how the 

excessive portion of their contributions was resolved and offering a refund, (2) refunding 

the excessive portion of each contribution that was not eligible for presumptive 

redesignation/reattribution letters or making a payment to the U.S. Treasury and 

providing documentation or, (3) disclosing the contributions requiring reflmd on 

Schedule D if ftmds were not available to make the necessary refunds. 

C. Committee Response to the Interim Audit Report 

JWFC did not submit a response to the Interim Audit Report, nor were amended reports 

filed. The Audit staff made several attempts to contact the J^C representative but was 

unsuccessful. 

D. Draft Final Audit Report 

The Draft Final Audit Report reiterated that JWFC received apparent excessive 

contributions totaling $92,325. Of this amount, JWFC resolved $11,000 previously by 

sending presumptive reattributions and/or redesignations letters that were untimely. 

Additional excessive contributions totaling $60,125 could still be resolved in a similar 

manner, albeit untimely. The remaining excessive contributions totaling $21,200 appear 

resolvable only by refund to the contributors or disgorgement to the U.S. Treasury. 

E. Committee Response to the Draft Final Audit Report 

In response to the Draft Final Audit Report, JWFC stated that, according to its established 

procedures, it submitted presumptive reattribution/redersignation letters to donors vrithin 

one week of receipt of their contributions. Based on these procedures, JWFC presented 

letters previously sent to 29 contributors. However, these letters were not dated and 

JWFC was not able to locate the exact dates of submission to each contributor. In 

response to the Draft Final Audit Report, JWFC re-issued these letters on August 1,2014, 

obtained contributors' signatures, as necessary, and untimely resolved excessive 

contributions totaling $60,125. JWFC did not address the excessive contributions 

resolvable only by refund to contributors or the disgorgement to the U.S. Treasury 

totaling $21,200, nor did JWFC file amended reports to disclose these contributions on 

Schedule D (Debts and Obligations). 

Commission Conclusion 

On November 6,2014, the Commission considered the Audit Division 

Recommendation Memorandum in which the Audit staff recommended that the 

Commission adopt a finding that JWFC received excessive contributions totaling 

$92,325.^ 

The Commission approved the Audit staffs recommendation. 

^ This amount consists of excessive contributions resolved untimely ($71,12S) and excessive contributions 

resolvable only by a refund to contributors or disgorgement to the U.S. Treasury (S21,200). S92,32S = 

$(71,125 + 21,200). 
12 

Part V 

Additional Issue 

I Disclosure of Occupation/Name of Employer - Best Efforts 

Summary 

As detailed in Finding 1 above, the Audit staffs review of all contributions fn)m 

individuals requiring itemization indicated that 285 contributions totaling $334,146 

lacked disclosure of occupation/name of employer. Furthermore, the Interim Audit 

Report stated that "best efforts" to obtain, maintain and submit information had not been 

sufficiently documented for these contributions. JWFC did not submit a response to the 

Interim Audit Report. 

In response to the Draft Final Audit Report, JWFC filed amended disclosure reports for 

106 contributions totaling $111,860 and materially complied with the Interim Audit 

Report recommendation. 

The Commission did not approve by the required four votes the portion of the Audit 

staffs recommended finding relating to JWIFC'S "best efforts" for the remaining 179 

contributions totaling $222,286. Pursuant to Commission Directive 70,^ this matter is 

discussed in the "Additional Issue" section. 

Lregal Standard 

The legal standard in the Finding 1 above is incorporated herein. 

Facts and Analysis 

A. Facts 

A review of all itemized contributions from individuals indicated that 285 contributions 

totaling $334,146, or 29 percent of the dollar value of individual contributions required to 

be itemized by JWFC, lacked disclosure of occupation/name of employer. Most of the 

contributor entries wi^ missing information were either disclosed with the notation "Info 

Requested" or left blank on the Schedules A (Itemized Receipts) filed with the 

Commission. 

During audit fieldwork, the Audit staff reviewed the receipt documents provided by 

JWFC to determine if it had utilized "best efforts" to obtain, maintain and submit die 

missing information. A JWFC representative explained that the list of contributors to 

whom the follow-up letters requesting the occupation/name of employer information 

were sent, was maintained electronically. That list was inadvertently destroyed when one 

of JWFC's computers "crashed." 

Available at http://ivww.fec.gov/directives/diFective_70.pdf 
13 

B. Interim Audit Report & Audit Division Recommendation 

At the exit conference, the Audit staff discussed this matter with the JWFC representative 

and presented a list of 88 individuals for whom the occupation/name of employer 

information was available but not disclosed. The JWFC representative agreed to amend 

the reports to disclose the missing information. 

The Interim Audit Report recommended that JWFC establish "best efforts" by amending 

its reports to disclose the missing information relating to the 106 contributions. 

C. Committee Response to the Interim Audit Report 

JWFC did not submit a response to the Interim Audit Report, nor were amended reports 

filed. The Audit staff made several attempts to contact the JWFC representative but was 

unsuccessful. 

D. Draft Final Audit Report 

The Draft Final Audit Report reiterated that JWFC establish "best efforts" by amending 

its reports to disclose the missing information relating to the 106 contributions. 

E. Committee Response to the Draft Final Audit Report 

In response to the Draft Final Audit Report, JWFC stated that it made "best efforts" to 

collect information for all 285 contributions that lacked disclosure of occupation/name of 

employer. As having done so during fieldwork, JWFC re-emphasized its adherence to its 

established internal procedures by referring to a miscellaneous report filed previously 

with the Commission, detailing JWFC's procedures for issuing letters to collect the 

missing contributor information. JWFC fiirther asserted that its physical file for letters 

received from contributors who responded to its request for occupation/name of employer 

information was evidence of its "best efforts" to collect the information from all 

contributors. JWFC again admitted that its electronic list was inadvertently destroyed 

when one of its computers "crashed" and it no longer had physical evidence of all letters 

sent to the remaining contributors. 

Commission Conclusion 

On November 6,2014, the Commission considered the Audit Division Recommendation 

Memorandum in which the Audit staff recommended that during the period covered by 

the audit, JWFC failed to disclose occupation/name of employer information for 

contributions from individuals totaling $334,146 and did not demonstrate "best efforts" to 

obtain, maintain, and submit disclosure information with respect to these contributions. 

The Commission did not approve by the required four votes the portion of the Audit 

staffs recommended finding relating to JWFC's failure to demonstrate "best efforts" for 

179 contributions totaling $222,286. Some Commissioners voted to approve the Audit 

Division's reconunendation for a finding in the amount of $334,146. Others did not, 

taking the position that the existence of written procedures, a form letter requesting 

additional information from contributors, and examples of actual responses from some 

contributors were sufficient to demonstrate "best efforts" for all the contributors. 
14 

Pursuant to Commission Directive 70, this matter is presented as an "Additional Issue."