• Candidate/Commit~ee:

.:)-;'1/t/1i..

C~NG~SSrC~AL ~UD!7 ~E?CRi

Bill Brock

State:

District:

Location:

Tennessee

N/A

N/A

James R. Sasser (0) ·

•,..

eo

Political ?arty Af~ilia:icn:

~ajor Opponent(s):

Other Candida:es ;udi:ed:

Republican

James R. Sasser (0)

'Iotas Cast: Generai ~1ec:ion -

Prima~J ~1ec~ion •

James Sasser (0)

Bill Brock (R)

Unopposed

- 751,180 - 52.S~

- 673,231 - 47~·

51,528,622.18

•

~otal :xpendi-::Jr!s ~or ?~ri=d: Sl,525,757.6~

ri~st :1ec:ed (if :cc7~ca:i~): Senate 1970

nouse 1962
· .

FEDERAl. [LlClION COMMISSION

Bll) K ~IIU II N \\'.

\\,,\5. tiNt; '()N,I) C. 204h'

REPORT OF THE AUDIT DIVISION

ON TIlE

CITI~~NS FOR SBNATOR BHOCK

AND THR

CONCRR~l!~n TRNNESSEANS

I. Background

A. Overvie~l

,.

--

'.

This report is based on an audit of the Citizens for

Senator Brock and the Concerned rrcnncsseans (lithe Cornmittec(s)n),

undertaken by the Audit Division of the Federal Flection

Commission in accordance with the provisions of the Federal

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

audit was conducted pursuant to Section 438(a) (R) of ~it1e 2 of

the Uni ted States Code \-.'hich rlircc ts the ComITlission to make

from ti~e to time audits and field investigations with respect

to reports and stateMents filed under the provisions of the

Act.

The Citizens for Senator Brock registered with the

Federal Election Commission on August' 15, 1975 as the principal

campaign committee designated by the Honorable l~i11iaJ'l F. Brock, III,

the Republican candidate for the United ~tates Senate fro~ the

State of Tennessee. The Honorable l"ri11iarn E. Brock, III authorized the Concerned Tennesseans on October 29, 1976. ~he Concerned

Tennesseans filed a termination report on Decer.tber 6, 1976,

covering the perioc Octoher 19, 1976 through November 22, 19;6.
~.

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The audit covered the period Auqust 15, 1975, the

inception date of the principal campaign committee, throu~h

December 31, 1977, the final coverage date of the most recent

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

that period, the Committees reported the following activity:

Beginning 'rota1 Total ~nding

Conunittee Cash Receipts Expenditures Cash

Citizens for $-0- $1,478,622.1B $1,475,757.64 S2,864.54

~enator Brock

Concerned $-0- $ 50,000.00 $ 50,000.00 $ - o -

Tennesseans

This audit report is based on documents and working

papers supporting each of its factual statements. mhey form

part of the record upon which the Co~ission based its decisions

on the matters i.n this report and \eJcre available to Commissioners

and appropriate staff for review.

B. Key Personnel

The principal officers of the Cornmi ttees during the

period audited were:

Conunittce

Citizens for

Senator Brock

Concerned

Tennesseans

Chairnlan

s. L. Kopald

~enry J..oeb

Treasurer

~arvin R. Hayes

8/15/75 - 2/2/76

Leroy Norton, Jr.

2/3/76 - Present
I

I·

-3-

c. Scope

The audit included such tests as verification of total

reported receipts and expenditures and individual transactions:

review of requir~d supportinq documentation; analysis of the

Committee debts and obligations; and such other audit procedures

as deemed necessary under the circumstances.

II. Auditor's ~tatement and nescription of Findinqs With

Respect To 'I'hc Citizens for Senator Rrock committee

It is the opinion of the Audit staff, based upon examination of the reports and statements filed and the records presented,

that, excopt for the deficiencies noted below, the reports

and statOnlCints of the Citizens F'or Senator Rroc]~ Committee fairly

present the financial activities of the Committee for the period

covered by the audit. Further, except as noted below, no

material problems in complyinq to,i th the Federal Flection Campaign

Act were discovered during the course of the audit.

A. Contribution in Excess of Limitation

Section 44la(a) (1) (A) of 'J'itle 2, of the Unit.ed States

Code, states that no person shall make contributions to any

candidate nnd his authorized political committees with respect

to any election for Federal office which, in the aggregate,

exceed Sl,OOO.

The Committee received and accepted a contribution of

$2,500.00 on October 28, 1976, from the E. F. Hutton Group Political

Action Committee (lithe PAC"). At the time the contribution was made,

the PAC was not a multi-candidate political committee 11 which is

permitted to make a contribution(s) up to $5,000.00 per candidate per

election. Therefore, the PAC's contribution limit was $1,000 per

candidate per election.

Recornrncnclation

Since we received a copy of the Committee's check, used

to refund the excessive portion of the contribution to the contributor, we recommend no further action on this matter.

•

!I Sec 2 U.S.C. 44la(a) (4) for definition of multi-candidate

political committee •
-4-

B. Debts and Obligations not Properly Reported

Section 434(b) (12) of Title 2 of the United States

Code requires, in part, that a political committee disclose

in its reports the amount and nature of debts and obligations

owed by or to the committees, in such form as the Commission

may prescribe and continually report their debts and obligations after the election at such periods as the Commission may

require until such debts and obligations are extinguished.

Section 104.8(b) of the Commission's Regulations

states, in part, that a debt shall be disclosed on Schedule

C, if in excess of $500, or morc than 60 days old.

Upon review of the Committee's reported debts and

obligations, it was determined that the final payments of 46 debts,

totaling $28,373.27, were not reported on Schedule C as required.

We dctermined that a portion of these 46 debts did not require

disclosure on Schedule C, as thc~' were not in excess of $500 or

over 60 days old. However, it has been the Committee's policy to

disclose all outstanding debts at the end of a reporting period.

We recon~ended that the Committee file the necessary amendmcnts to

Schedule C to disclose the final payment of the reported debts,

which were in excess of $500 or over 60 days old. All expenditures

requiring itemization were disclosed on Schedule B, as required.

Recommendation

Since the Committee filed the required amendments to

Schedule C on July 20, 1978, disclosing the necessary transactions, we reconunend no further action on this matter.

c. Disclosure of In-Kind Contributions

Section 434(b) (2) and (4) of Title 2 of the United

States Code states, in part, that each report shall disclose

the full name and mailing address of each person who has made

one or more contributions to or for such committee or candidate

within the calendar year in an aggregate amount or value in

excess of $100, and that each report shall disclose the name

and address of each political conm\ittec from which the

reporting committee received any transfer of funds, together

with the amounts and dates of such contributions and transfers.
t

-5-

Section l04.2(b) (4) of the Commission's Regulations

states, in part, that all transfers from political comn\ittees,

including transfers from other political organizations, shall

be disclosed in the period received.

Section l04.3(a) of the Commission's Regulations

states, in part, that each in-kind contribution shall be

valued at the usual and normal charge on the date received and

reported on the appropriate receipt and expenditure schedules,

identified and listed as an in-kind contribution.

Durinq the course of the audit, it was determined

that the scttlC'tn('nt of a Committee debt owed to an individual

resulted in an in-kind contribution from that individual. The

original ~450 d0ht of the Committee was settled for $200. The

remaining $250 portion of this debt represents an in-kind

contribution from the individual which has not been reported

by the C'oItunittee.

Additional1y, '-tIe determined that the Cornmittee did

not itc~ize eiqht (8) in-kind contrihutions from other committees

totaling $310.40. These fiqures represent 3.04~ of the total

number and .l4~ of the total dollar amount of all transfers

received.

Recommendation

Since we received copies of the Committee's amended schedules

on July 20, 1978, disclosing the required transactions, we reco~~cnd

no further action on this matter.

D. Other Matter

Presented below is a matter noted during the audit

for which the Audit staff feels no action is warranted. The

Committee has been advised of the discrepancy and informed

of the rcspcctiv0 requirements of the Act.
•. •• ...... ...4,.. l .. 4.r...... • ==C:::::::;;:JtIaW.••4-.. ...., =

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The Committee maintained separate records and bank

depositories and filed separate reports for the primary and

general elections. In addition, the Committee maintained

separate aggregution systems for the primary and general

election contributions. Hence, the Co~nittee did not aggregate

each contributor's primary contribution with his qeneral election

contributions on a calendar year basis as requirpd by Section

434(b) (2) of Title 2 of the united States Code. W0 tested 655

contributor cards from the general election contriLJutor file

(representing approximately lor~ of the contribulcll- cards within

this file) to all primary contributor cards and noted that 3.82%

of these contributions, totaling $1,598, were not itemized as

required. The Corrunittee's accountant stated that separate

aggregation systems were maintained primarily as a result of

reliance upon the 1975 Interim Guidelines for the Tennessee

Special Elections.

III. Auditor's Statement with Respect to

the Concerned 1.'ennesseans Committel~

It is the opinion of the Audit staff, basco upon examination

of the reports and statements filed anu the records presented,

that the reports and statements of tho Concerned Tennesseans Committee fairly present the financiwl activities of the Committee

for the period covered by the audil. No materi.al problems in

complying with the Federal Election CamlJaign Act were discovered

during the course of the aUdit.
FEDERAL ELECTION COMMISSION

1\.!~ '" ~IKH 1 N \N

W/\"HINC 1()N.I> C. 204b \

L'

•

REPORT OF THE AUDIT DIVISION

ON THE

CITI7tPNS FOR SENATOR BROCK

AND TUB

CONCEIDIED TRNNESSEANS

I. Background

A. Overvie~l

This report is base~ on an audit of the Citizens for

Senator Brock and the Concerned lj1ennesseans ("the Committee(s)"),

undertaken by the Audit Division of the Federal Flection

Commission in accordance \~ith the provisions of the Federal

Election Carnpaiqn Act of 1971, as amendccl (lithe Act"). The

audit was conducted pursuant to Section 438(a} (8) of ~itle 2 of

the United States Code which directs the Com~ission to make

front tiITle to time audi ts and field investiqatioT's \-1i th respect

to reports and stateMents filed under the provisions of the

Act.

The Citizens for Senator ~rock registered with the

Federal Election Commission on August' 15, 1975 as the principal

campaign cornmi ttee designated by the Honorahle t4illiarn F. Brock, III,

the Republican candidate for the United ~tates Senate from the

State of Tennessee. The Yonorable ~illia~ E. Brock, III authorized the Concerned mennesseans on October 29, 1976. ~he Concerned

Tennesseans filed a termination report on Dece~ber 6, 1976,

covering the perioc Octoher 19, 1976 through November 22, 1976 •

---....~ ,,* X_P.' .,..,,-.• 1_ .. 449. r--....._ ""''''_~'''''''''''QIIr.''''-''''~''''''.''''''''''' ~~'''''''''''''4",''-''''---''''' ,.._ '\.
I

... . .

-2-

The audit covered the period Auqust 15, 1975, the

inception date of the principal campaign committee, throuah

December 31, 1977, the final coverage date of the most recent

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

that period, the Committees reported the following activity:

Beginning Total Total ~nding

Committee Cash Receipts Expendit.urCfj Cash

Citizens for $-0- $1,478,622.18 $1,475,757.64 S2,864.54

Senator Brock

Concerned $-0- $ 50,000.00 $ 50,000.00 $ - o -

Tennesseans

This audit report is basco on documents and working

papers supporting each of its factu&31 statements. rTthey form

part of the record upon which the Commission based its decisions

on the nlatters in this report and were available to Conunissioners

and appropriate staff for review.

B. Key Personnel

The principal officers of the Committees during the

period audited were:

•

•

Committee

Citizens for

Senator Brock

Concerned

Tennesseans

Chairman

s. L. Kopald

f~enry J..oeb

Treasurer

Marvin B. Hayes

8/15/75 - 2/2/76

Leroy Norton, Jr.

2/3/76 - Present

Justin ll\lilson

_.,....,..._........ • _.,.,,__-=--__--......~, ...--._- ..._:..-........--.. --~ e CU44W.*", ace , ......,..,,~~-,.-"I''IJ'f:l;

,

,

•
• c. Scope

-3-

The audi t i Ileluded such' tests as verification of total

reported receipts and (':-:pendi tures and individual transactions;

review of required ~alpportinq documentation; analysis of the

Committee debts and obligations; and such other audit procedures

as deemed necessary under the circumstances.

II. Auditor's ~tatempnt and Description of Findinqs With

Respect '1'0 'rhe C:rtizcns for Scnator Brock Committee

It is the opinion of the Audit staff, based upon examination of the reports and statements filed and the records presenten,

that, except for the deficiencies noted below, the reports

and statements of the Citizens For Senator Brock Committee fairly

present the financial activities of the committee for the period

covered by the audit. Further, except a~ noted below, no

material proble~s in complyinq with the Federal Flection Campaign

Act were discovered during the course of the audit.

A. Contribution in EXC0SS of Limitation

Section 44la(a) (1) (1\) of 'ritle 2, of the tTnited States

Code, states that no person shall make cont"ributions to any

candidate and his authorized political co~~ittees with respect

to any election for Federal office which, in the ag~regate,

cxceed Sl,OOO.

Thc Committee received and accepted a contribution of

$2,500.00 on October 28, 197fi, from the }~. F. Hutton Group Political

l\c t ion Commi t tce' ("the PAC"). At thc time the contri bution \oJas Made,

the PAC was not 0 multi-candidate political cow~littee 1/ which is

permitted to make a contribution(s) up to $5,000.00 per candidate per

election. Therefore, the PAC's contribution limit was Sl,OOO per

candidate per election.

Recommendation

Since we received a copy of the Co~~ittee's check, used

to refund the excessive portion of the contribution to the contributor, we reconuncnd no further action on this rna tter.

•

!/ See 2 U.S.C. 441a(a} (4) for definition of multi-candidate

political committee .
· .

-4-

B. Debts and Obligations not Properly Reported

Section 434(b) (12) of Title 2 of the United States

Code requires, in part, that a political committee disclose

in its reports the amount and nature of debts and obligations

owed by or to the committees, in such form as the Commission

may prescribe and continually report their debts and obligations after the election at such periods as the Commission may

require until such debts and obligations are extinguished.

Section I04.8(b) of the Commission's Regulations

states, in part, that a debt shall be disclosed on Schedule

C, if in excess of $500, or more than 60 days old.

Upon review of the Committee's reported debts and

obligations, it was determined that the final payments of 46 debts,

totaling $28,373.27, were not reported on Schedule C as required.

We determined that a portion of these 46 debts did not require

disclosure on Schedule C, as they were not in excess of $500 or

over 60 days old. However, it has been the Committee's policy to

disclose all outstanding debts at the end of a reporting period.

We reconunended that the Committee file the necessary amendments to

Schedule C to disclose the final payment of the reported debts,

which were in excess of $500 or over 60 days old. All expenditures

requiring itemization were disclosed on Schedule B, as required.

Recommendation

Since the Committee filed the required amendments to

Schedule C on July 20, 1978, disclosing the necessary transactions, we reconunend no further actiqn on this matter.

c. Disclosure of In-Kind Contributions

Section 434(b) (2) and (4) of Title 2 of the United

States Code states, in part, that each report shall disclose

the full name and mailing address of each person who has made

one or more contributions to or for such committee or candidate

within the calendar year in an aggregate amount or value in

excess of $100, and that each rc~ort shall disclose the name

and address of each political conunittce from which the

reporting committee received any transfer of funds, together

with the amounts and dates of such contributions and transfers•

'. ._..-_-_....~. ~_.__-_.--~·_....,.-r ..-.·--_......- ....¥4.._...PW".~.Pl.,........~.,......-.-.........~?.;
. . I

j

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-5-

Section I04.2(b) (4) of the Commission's Regulations

states, in part, that all transfers from political committees,

including transfers from other political organizations, shall

be disclosed in the period received.

Section 104.3(a) of the Commission's Regulations

states, in part, that each in-kind contribution shall be

valued at the usual and normal charge on the date received and

rcported on the appropriate receipt and expenditure schedules,

identified and listed as an in-kind contribution.

Durinq the course of the audil, it was determined

that the settlement of a Committee debt owed to an individual

resulted in an in-kind contribution froM that individual. The

original S450 debt of the Committee was settled for $200. The

remaining $250 portion of this debt represents an in-kind

contribution from the individual which has not been reported

by the Co~nittee.

Additionally, we determined that the Committee did

not itclllize eight (8) in-kind contributions from other committees

t()laling $310.40. These figures repr~sent 3.04% of the total

number and .14% of the total dollar amount of all transfers

received.

Recommendation

Since we received copies of the Committee's amended schedules

on July 20, 1978, disclosing the required transactions, we recommend

no further action on this matter.

D. Other Matter

Presented below is a matter noted during the audit

for which the Audit staff feels no action is warranted. The

Committee has been adviscd of the discrepancy and informed

of the respective requirements of the Act.

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The Committee maintainsd separate records and bank

depositories alld filed separate reports for the primary and

general election:.. In addition, the Coromi ttee maintained

separate aggreqdLion systems for the primary and general

election contributions. Hence, the Committee did not aggregate

each contributol"S primary contribution with his general election

contributions all a calendar year basis as required by section

434(b) (2) of Title 2 of the United States Code. We tested 655

contributor card~; from the general election contributor file

(representing approximately lO~ of the contributor cards within

this file) to ~ll primary contributor cards and noted that 3.82%

of these contrilHltions, totaling $1,598, were not itemized as

required. The Committee's accountant stated that separate

aggregation systems were maintained primarily as a result of

reliance upon the 1975 Interim Guidelines for the Tennessee

Special Elections.

III. Auditor's Statement with Respect to

the Concerned Tennesseans Committee

It is the opinion of the Audit staff, based upon examination

of the reports and statements filed and the records presented,

that the reports and statements of the Concerned Tennesseans Committee fairly present the financial activitics of the Committee

for the period covered by the audit. No matcrial problems in

complying with the Federal Election Campaign Act were discovered

during the course of the audit.
•

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FEDERAL ELECTION COM,'-'''SSION

1\2:; 1\ tlU l T \\'.

\A'-\"HI:\.C T()l\. .LH 2046 \

ADDITIONAL INFORMATION RE~1NG '!HIS ORGANIZATION

MAY BE IDCATED m A OOMPLETED OOMPLIANCE AcrION

Fn.E RELEASED BY THE ClH1ISSION AND MADE PUBLIC IN

1l1E PUBLIC RECORDS OFFICE. FUR'lHIS PARI.'ICULAR

ORGANIZATIONt S COMPLETED OOMPLIANCE ACrION FILE

SIMPLY ASK FUR ntE PRESS St»fARY OF MIJR 11 6~t

'mE PRESS SlM1ARY WIIL PROVIDE A BRIEF HISroRY OF

'!HE CASE AND A stMfARY OF mE ACrIONS TAKEN, 1F ANY•

Audit #! /I?