Altachment as stateJ

PUBLIC ISSVANCE OF l\UDIT HEPOHT -

REPUBLICAN S'I':"\'('E CEN'I'RI\T. COi-1i'H'I"I'EE

OF HA!::YL:\i~D

FHED E1I.l\ND

PRESS OFFTCI::« ./

BOB COS'l'l\ N~

JUDY 1li\\VKINS*4t'ln)

ITDERAL 1:t.rCTION COMMISSION

,-June 27, 1980

cc: FEC],i b l-ary

1':"\D

Pub 1 i c Rcco nls 1''---

Inforrnatj on<.11 copies of the report have Deen recei'.'c\.l

b'/ all rnrt:ic~s i.nvolv('d 311<1 th i ~~ report rna':, be released

tn the' public.

l\ t t.:'lched please f.in(l a copy of the finnl audi t report

()f the I\epublic<'ln Stutc Ccntr~l Com::litt.ce of :1uryland, \d1ich

\\'~IS approved by the Commission on June 25, 1980.

SUBJECT:

'\'llROUGII :

'1'0:

!\1 !·:MORANDUM

,..

..
A. ov(~rvie\'!

HEPOH'I' 01" 'I'll!': i\lJD.l'l' DIVISION

ON 'PilE

REPUBLICAN s'rNl.'l': CEN'l'R1\I.. CmlM'['l"I'EE

OF M/\HYLANI)

\' ..... 111 ••1.\1>.... \1\ :1111.;

F1:DF.RAI. ELECTION COM,\\ISSION

The Commi. ttcc' repcw Led ::l bcq inning cash b:llCl:1cc' of

~,~3,B91.SH, total receipts ffJ)' the: pOl~iocl of $:~()4,592.o2, total

c:,~Jt2ndit.llr.CS for tho pL:1:iod (,I' $261,3::31.56, <:\I1d a clos-:':,q c<lsh

b.:11.::t11(;'.: .1:; of No':embL:l' '27, Ilj'/B, of $7,l03.8.~.

1:' 'j'::'.~ Com:nittce:'s !'i~-st di:;cl()~,t.l1~C: L-L:!)Ort, :~j1ed o:~ ::,)velllhr.~r

/.(" 197G, inclw:,_,'ti J.-l~c._·ii)t .J.I1C: (":':i:c'nditun:: .:l.cti':~::·:' .:1~; of

.1. I: i u.-u:y I, :I ') -; {), t h'_'l~l) f. 0 rl}, Comm 1. t te''':; reCGl:d s \\.~::.::: .:, :,:al:1.l :11:,:-:

.-::; () i ,J.'1 n t.l.J.l:';" 1, I ~l7 6. i'Je' no '.:c:d nt" Fodel.- a 1 .:1 C t i ',<, ::", d 11 L1.lh_:

1-:1'-' p':l:ioc! J.~l;IU;!:-':· 1, l.hrcmqh SCi:'t(~mlx.:r 8, 1.976.

Thc Commit tl'C' n~gisL(· rt·d with tho Federal L:,~'..:ci: ion

C(1;al1li~:;:-5ion on September 8, If,'/f•• 'rho Committ'2e ma-intai:'::; its

heCldq\l.:11:tL~rs in l\nn.:1i,olj~;, fl.1;.lr"/L'tl1l1. 'l'he audit covcrL·d ::he

p,:r1.oc.! from SL'ptC::~lbcr 8, lCJ7() thl'ouqh NC)\'(~mbcr '.27, ]C)-;:~, tl1(~

C,)\·Cl:.:1(;"~ d.::ttc of the .l.ltest, 1"'I'Ol~t fi.llxl. at tlw time: 0:: t'.!W

.:1Ui': Lt 1/.

This report is bas0~ on an audit of the Republican

~;tate Cl.:ntraJ. Committee of Huryland ("the Committee") u:1dartaken

by the i\ud it Oi vision of tiK' Fed(~rul Election Commissic:'. in

('lc;:,orcL':ll1ce wi til the Commiss.i on 's audit policy to deter~i!lc

\."ilethe~~ there hi.1S been camp 1 i .mca \."i til the provisions 0:: the

FC'l1cral Electiun C.:1mp,::tiqn Act of 1971, LlS .:1mended ("t:~e :\ct").

Tlw antIit was conducted pllrsudllt: to Section 438(a) (8) 0:: 'I'.itle 2

Ilf the United St.-ltcs Code wh.i,:ll directs the Conuni~.si(J;'. to m.:1ke

I'l~om time to time audits and I il.·1d investigations wi l:1 .n'~:;p(~ct

t(J 1.·l.~P8:-ts and ~;t.:1temC'nts [j I,:d uncler thl' pro'/isiolls n: lht~ Act:.
-2-

.l ndopcnc:c':,:: l:::.::)t:ncl i tun,::: III C:Ulllll_'C t:. i on

~;.(~l1~!_~~~~--~~.(l'~?i-~.~_o5·~~:!lljl~:I) ':l\'

".

:~I'ction 1..1.0./ (11) (·l) ut: '!'j Llc 11, Cocl(~ uf FL'(1t:ral

i':l~';1I1_1t ion:; prohibits St:.:lb.: l.:llllUiI.i LLl"~:5 of a lJolitic.::l par1:y

L l.~l.l:ll nl~·ll:.~nq i.lldt.:!~t2~lde!1t. ....... :.:;H..::1(1 i ttll".. ,:; .i. 11 CC>l111Cctit):1 ...:i't:1 tIle

Ih~Il"!':ll ,.~L~,:Li.(l:l call,:)..:d.l!:: uf .;~lndid.·1L,:~; rOl- l·'l:'ci.:l::l1 offic0.

lJt11-inq CH1!- l.-,~"~·:il..··": (J:~ l\>Ill1:ti '_~:t..~,,\ l:l~C()l~\"!~:; \.;(: Ilu::.cd

C~", I ; '" '" I',. :.' I ,'". _n -; ; ," ,.: • (' ....] . " .' '.,.)' 1()7l' .. 1 a I__ ll_I(;d JoB l.l __ :1,.&\,: .~: I .1' ~1).:u.l1., t t: 1 •• l ~·_·~:O;)·.:~', " ),

Ln t~~f_" f"(\!':~l lJf ~ln "C· ~_.\.~. j \.)'1·: :':.alil" • 'I'll L:-; l'On1!:l1~n i L~'::' t1 ():l (~:':r,rcs:~ l.y

:H.fVt)c:tt:Cti t-hl i ~~ll..~cti,.. ~·. I.):' : ;." :.:,l:.lllll i\...~a:~ l'..l:Hii\: ..1tl.: :~()~- Pl~t.:~;.ilie:1t

l"lf t:l{" t;!~iLt.\d St."ltt_\:-~, ..:::.:~,: L:11' (h'!t',11 \)( ~!1l\ i)t\i::ot.:r:'!tic (~Clntli(L:lt·.t~.

(',H':!:.;'; ,I~;:;l .. ,:i.ll·.,.:..l \·:i:::, 0::: ..: ::.:ili:1'j "':"1',' :;;.1.,171.31. f{)l~ :J;::"oduction ... n I . '1 ..•. J' ""1 t·, 1 I- I "";J " .,' • .' t • .•••• 0 .'. , •• : -' ;.] -. ........ ~.. d.;. C 0 \ l... ... ~.I, l.; l" Or' _ , _' •• • l· .... ,_.1 t \ \. ) 0 J • t ( ! t' t..~ .". t ; t :- 1 j ~:"'J • 1 ...:. o~ 0.1 Y

<)th(:l~ ,1c::.i\·it'/ in c.;:.::'.:..::..: ):1 ,,·:i t.:l !",-:d .... l':! i •.'.LL'CUO::S t::-:.lcrt",}:c~n

;)'/ t:~·..: CI"'::l!~lit~0l: ();"~:""·.. l::~:""~·.~ -,,:::1::1 th... ' C():iu:~i.tt(.\l"" t.~:·::'(:n\..i(:(i S150.00 for

~~(j:;t:~1~:t: (":: La.'!l-.ll f "J:':' -: 1.'.":·~,,::·'~·:~:~i(1!l.l! ca:l!~did ..lt.:f:'.

S,~cti()n IOSI.l(:-I} uf. TiLl.,' II, Cude o~ Foder.:ll H.eguL'Lio::~;

('1',)'-:;'1"" ""Llll" '1 1 1 ' ••- -\·········.. :J·t·'ll··· .. ·•• fO :'"\11 ",. 111:1"'U'-~ 1·· '- L.Lo.l.... l l :'L Ild_ d ... c.::- __ .~: .. ,l..' 01 .. " 1.••pC <". '- ......)~ '-, •

comIn.::t: LL~"" I.t n- .."'I COl11!;1U:1:',;:::•.:.D!1 ,'::.:; q'v::::l y ,IJ\'OC:l t~:l'J t~l: e lect~on

c'r cl(~:-'-::1.t of li clcarl-/ id"llti :-il~d C:lildidal:L' \d1i.ch is not madc

\-,-itl: LhC'.c;()()i"~I~.:1ti.on. OJ: '..:i:·:l 1.:1.' l"'jul- l:():.l:~(~nt oC, O~- ~!: c:on:,ult:l t 1 ('1:1 ~':1. tit, 0 r ;t t t ::.... r '-", :'..l '.• : : \. l' ,. ; :1:' ;' :(':: t J. ( ) I: 0 i, ,'\ C; .:J. ::.. .fd 3 t e

L)r ~1!1': .~ih·i1L ())- Zltlt:hc,:·::~~_),~ CCi::I:niltt't· (I:" ;~tll... ll C:l:~~~i ..·;;lt(·.

Till: audi t i::c1udcd such tv:·;ts as ver1. t: ieation of tot,:l1.

I'l'p()l~t:ed ,n.·ccipts and <'~;':i)enclitun':; ..llld individual tr.::nsllctions;

I'cvic\'\/ (II' n~quired SUi)iJortinq clOCIIIIl'.'lIt~1t ion andanal~osis of

C()mm.itt0l~ d,.'bts and obl.i.•j:1cioml; ,llId st:ch oth(~l~ .-lIldit proceclures

':'IS (lceml.'d Ilccess"ry UUdOI- tlK~ C.rn.'lIll1::L.ll1Cl~S.

[.I.

'J'ili:; .:mdit report .I.B bascd 011 doclimPIlL:; ilnd working

p.:lpl~r:;· which ::u\lport cilch .ot the file'tuil! stuteml~nts. 'rhey form

p.:lrL ort Il\~ I"l~l.:onl upon whil.:h the Commi:::.;ion bilHCd it~: deci.sions

0l1. LilL' 11101 Ltl'I::: j.1l the r.eport :lnd \"l.·n~ ,"lvaililble to Commissioner!;

ilnd uPIII·Lil'l~iate staff for revicw.

'I'he pLinc.ip,:l1. ()!"r·il:ce~·: or the CommiU:r~(! dur'fnq the

period audit:cd\l1cre: D~o/id H.• l"on'll,lnl, Cha'.irm'",n, Septcmlwl", 19'7G

Ull'ouqh Sl~t:C'mber', 1977; IJr. I\r1:: l\llf~n, Ch;tfnnan, Sel)f.c·mbl.~I-, '1977

l:lll:'ouSh t1ll.~ clos(~ o( t:l" :ll1dit LJel~iod; and H!5 ••Jc'anette D. ,\'Jessel,

'I' eC'.:lSU1~l' I" •
'.e

c

c.

.~-

•

-3-

-/\ Commi ttee offic.:L:ll informed the nudltol:s th~lt the

_,~l.cctl''1i''ll·"m \'Ins not.intended to infltiencc the out.come _of th(~

}'17u Ct·l,.·!· ..d _Elel:tion, but W"l~:; intcnded to raise' funds [or the

Cummit.t i·i·':; qt~lwr.J.l oiJL·r.:ltions. 'I'he·contribuLions .qoll(~l'atod

by Ute t·I,·ctiolltjr.am \'lore used Ly th(~, Committee ill COI11H.:cti.on

wlth sLIII~ i,nd .loC.:l.l l'lection .:lc£iv.ityonly.,·

l~'.1commL'Il,I.ltion

.. '''Sin~e_the C(lI1un.i.l.t(:.. ~'~:; F(~dcl:.:tl acthrity pl.:lyl)d onl'r'.,.:l.VI~l:Y

, l-ill\it'(~d Tole in tlwir total acth'lty, 'and in viev. of·'l-h;~,l.:lpse

" .."," ('J! t1mt..:·si nce Lhl.' :lc t'j '-'i.t'/ took p l.:lcc,' thl~ i\ucli t s t.:l f t: recollllnench;

,Iloftll:ther uCtiull .111 Lid::; matter.

13 • ~~~~~9!1_t._~~).'1. ~):~: ~_t.:l!Jl~~'?.r .t_~_nCJ ...!?!.?~.!:1.:~~~!1_~ ..~!-.Lo_~~!.9.£..E:·:p~,:,,1.9.~ _~urc~.

,_ . ,Durin'lthc) p(~Li.OllcoV01:C·d by the :mdit,Sectioll'432(d)

',.'L'I'itl.e2 of:the,Uldted St,.tos, Coclcst.• tcs that it sh.:l11 be

Lh;~'dul:y of the' trcLlsu n .. l: to ()btLl in and k(~dlJ.:l rccc.Lpted b l 11,

sLlt1ntJ the. IJLlrt i.CULll~::;, [01: C':{~'l"; o:·:pelld it.tl1:o· 1I1.:telc by- or on

,bch.:L1.[:(,)f,·;-lIJo.lit1c.:l1 ci)ml1\itt...:c~i:1 ~:·:c,-,~~~ 1)1" $100 .in LlmOtlI1t, und

- 1'01:: Llnyf~uchc:·:ill~ndi.tun.' in :1 1,_~:';:-;~)r .~1l\O\int., if' th(.. 21g~p:eSFltc

,11ll0tlllt· of SUdl.·l~xp-cndit\.u'L::_; to t.hc' S:llac PI~l'~;t)n -during a calentl.:lr.

\'1~:lr0xc'eeds ~~IOO. "

DUl:.ilhl thl~ iX.'l:io;! t~()V'--'~'·.:c.:by t.hl~ :mdit, S(!ction-102 •.9'

(c) (·1) 01 'J'it.1.,~ll., t:'.ld<~ n: !·\·dc~·.l.l Hc:quLltion:;, provided·that'

Whdl •• n..'c<.~.i.ptc:d bi.!.!. i:; not ,1'-·.:t~laJ.;lQ, th<" rl'n~.:tsurcr Ill.:ly kee1-)·;·

Llw c~lI1c,--,lr:d clteck(:,;) :;;1,y,·:.in,: ::;::·::~it~J1t(s) 0:' 'thl~ bill; and the

.b i.-.l.:L, invul LX: .01: oth~l" (.",'111 ll:m:)()l" :1:1I:0U8 mCIll01:.:lndu::l of the

i:.L"a;l~:;;:lct.i.lm supplied to tilt: C~)j;~:1.L~tel! by tht1 PilYOI~ iclcnt:ifyin~l

::'ih) p.:iyC'c uncl COllt:.:lini.:1<; t!tl~ .1:nou:lt·, d:lto, LInd part-ic,u.la.t·s 'oJ

t.h~ ,1)XIK1ncliturc.

Our 1~cvi,:.:\-! of Com:nit'.:c,,: "::'::lcncli.t'..ll''-~ t~ecords revcLllcd

thLlt the Conunittec did not 1~c~t3i:1 :;ufficil'nt docum',:mtLltion [01: 73-

l·:,:penclitures ,lllade dudnq .I'17(i, t'.-Wil of \-,1hi-::h \':.l~' i.ll C:-:CI~S8 of;

,0.1" ~lqgl.'0'J~lt<..'d in excc..'s::-: of $100. 'l'h~se 73 c:-:pl'llditurcs (46.'2':. o~

t·llt) tot.::! numlJl:L of i.tl:::Li.::t~d 19fG <:,:,:pt:n(1.i.t:.~~·~:~) :'l!Uountcd to

:;:J3,:1:2"'7.U:;, ()[' 30.4.) OI" t()L~:l~ l~)~'t) ,-·:·:pcnli.iLul.·(~S. rl'lH~ ~1lh.litor,~';

,.'x.'IllLnL',i ,1 CLlIl.:,)ll~d c;;<'cL !'lJL" ~_-:'_';; of thc'~51~ t":-:!,,..~nd i. Ltll:L-'~;.

i'l'.:onmlt.':l.l."l tion .. .

13l.~I."'."llSL'" l)!- tht.-'l l.··~~ ..-l:-~l)n~·; ::t..:t: :-:,:)~~t:1 i~1 t:1t..; l~l~Cc.)~nnl-::n(L::ltion

!:~~lcic ft.:1.- -t-h(~ :q"l;\rjou~~ ::incii.n~:, :.11'0_' :.... ~ll..!it ~;~.:1.i.: recomn\enli~;

:10 furthl'l" ••ct.i.un .i.I: ·.::1i:·; m.-:L.~·":-:'.