FEDERAL ELECTION COMMISSION 

WASHINGTON, D.C. 20463 May 11,2012 

MEMORANDUM 

To: The Commission 

Through: 

From: 

Alec Palmer 

Staff Director 

Patricia Carmona 

Chief Compliance Officer 

Tom HintermistertA W . y/^ 

Assistant Staff Director OjK 

Audit Division 

Kendrick Smidi 

Audit Manager 

By: 

Subject: 

Robert Morcomb 

Lead Auditor 

Audit Division Recommendation Memorandum on the Friends of Todd 

Young (FOTY) (Al 1-06) 

Pursuant to Commission Directive No. 70 (FEC Directive on Processing Audit Reports), 

die Audit staff presents its recommendations below and discusses tfae findings in the 

attacfaed Draft Final Audit Report (DFAR). The Office of General Counsel has reviewed 

this memorandum and conqurs with the recommendations. 

Finding 1. Receipt of Apparent Prohibited Contributions 

FOTY had no additional comments on diis finding in response to the DFAR. The 

Audit staff recommends that tfae Commission find tfaat FOTY received apparent 

profaibited contributions totaling $19,100. 

Finding 2. Receipt of Contributions in Excess of the Limit 

FOTY had no additional comments on this finding in response to the DFAR. The 

Audit staff recommends that the Commission find that FOTY received apparent 

excessive condributions totaling $94,854. 

Findings. FaUure to File 48-Hour Notices 

FOTY had no additional comments on this finding in response to the DFAR. The 

Audit staff recommends that the Commission find tfaat FOTY failed to file 48-faour 

notices for 51 contributions totaling $75,700. 
Tfae Committee did not request an audit hearing. 

If diis memorandum is approved, a Proposed Final Audit Report will be prepared within 

30 days of the Commission's vote. 

In case of an objection. Directive No. 70 states that the Audit Division Recommendation 

Memorandum will be placed on the next regularly scheduled open session agenda. 

Documents related to diis audit report can be viewed in the Voting Ballot Matters folder. 

Should you have any questions, please contact Robert Morcomb or Kendrick Smitfa at 

694-1200. 

Attachment: 

- Draft Final Audit Report of the Audit Division on the Friends of Todd Young 

cc: Office of General Counsel 
Draft Final Audit Report of the 

Audit Division on tlie 

Friends of Todd Young 

February 12, 2009 - December 31, 2010 

Why the Audit 

Was Done 

Federal law permits the 

Commission to conduct 

audits and field 

investigations of any 

political committee tfaat is 

required to file reports 

under tfae Federal 

Election Campaign Act 

(die Act). The 

Commission generally 

conducts such audits 

when a committee 

appears not to have me{ 

tfae tfaresfaold 

requirements for 

substantial compliance 

widi die Ac* * Thf m-dit 

determini 

CO 

die 

profaibiti' 

disclosure 

of tfae Act. 

Future Actio^ 

The Commission msy 

initiate an enforcement 

action, at a later time, 

with respect to any of tfae 

matters discussed in this 

report. 

About the Campaign 

Friends of Todd Young is the»ncip3f^ campaign committee for 

Todd C. Young, Republica^. • •«'||late for tfae U.S. House of 

Representatives from tfaeAte o^T.'.' na, 9*^ District, and is 

headquartered in BloQjjy^ipn, In . For more information, 

see the cfaart on tfa^Eamphign Orgai v=-. p. 2. 

r 

vudioi /-.•-. 

Financia^Activity 2) 

• Receipts W ^ 

ciontributions«• l.idividuals 

oltTo::" ibutions fri 

!*_* '•nmittees 

o 

Co^ r 

o Offss ^ Opera' Expenditures 

Total ReSy pts 

Lsbursemi 

tg Expenditures 

C(mIfibution Refiinds 

contributions to Political 

t^onunittees 

["otal Disbursements 

$ 1,708,269 

233,843 

14,702 

7,404 

$ 1,964,218 

$ 1,926,326 

18,200 

5,000 

$ 1,949,526 

Findings and Recommendations (p. 3) 

• Receipt of Apparent Prohibited Contributions (Fmding 1) 

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

• Failure to File 48-Hour Notices (Fmding 3) 

' 2U.S.C.§438(b). 
Draft Final Audit Report of the 

Audit Division on the 

Friends of Todd Young 

February 12, 2009 - December 31, 2010 

4 

V 
Table of Contents 

Part in. Siunmaries 

Findings and Recommendations 

y 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Campaign 

Campaign Organization ^ 2 

Overviewof Financial Activity ^ 2 

Part IV. Findings and Recom}|^ndati^|^ f 

Finding 1. Receipt Apparent of Prohibited C * • .fautifl^^ ^ 4 

Finding 2. Receipt of Contributions in Excess off .-1 imit 7 

Finding 3. Failure to File 48-Hoia Votices 10 
Parti 

Background 

Authority for Audit 

This report is based on an audit of Friends of Todd Young (FOTY), 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 die audit pursuant to 2 U.S.C. §438(b), whicfa permits die Commission to 

conduct audits and field investigations of any political committeoitet is required to file a 

report under 2 U.S.C. §434. Prior to conducting any audit unj^Qiis^bsection, the 

Commission must perform an intemal review of reports fil^Bjjselected committees to 

determine whether die reports filed by a particular conuwee mBlthe tfaresfaold 

requuements for substantial compliance witfa tfae Act^^^^.C. §^ 

Scope of Audit 

Followmg Commission-approved procedure 

factors and as a result, this audit examined: 

1. the receipt of excessive contributions and loans; 

die receipt of contributions firom ntoibited sources^ 

die disclosure of contributions 

die disclosure of individual contribullpi^^m&ation and 

the consistency between reported figiu 

the completeness of ja|B[a||; and 

other committee wrancHmcessary to1ae review.' 

2. 

3. 

4. 

5. 

6. 

7. 

e of employer; 
Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Date of Registration Febmary 20,2009^ 

• Audit Coverage Febmary 12,208^^ tcember31,2010 

Headquarters Bloomingtoijiiini:. .na 

Bank Information 

• Bank Depositories One A ^ 

• Bank Accounts Ong^Se^^g accoun' 

Treasurer 

• Treasurer When Audit Was Conducted ^ TBBaK.Ness Ik. _ 

• Treasurer During Period Covered by Audit CofIm':^. Nas?^ 

Management Information 

• Attended Commission Campaign Finl ^ No 

• Who Handled Accounting and 

Recordkeeping Tasks 

rview of Fin^icial Activity 

..diMditcd Ajliounts) 

Cash'on-hjff® FeBHfrv 12,^P» 

ReceiptSinE ». 

o ConiBH||ions from ini^.i -duals^ 1,708,269 

o ContriS^^*- s from OtH^ ' Political 

Committ-'.-i^ 233,843 

o Transfers fxSsl^^c^ffsd Committees 14,702 

o Offsets to OperalwExpenditures 7,404 

Total Receipts $ 1,964,218 

Disbursements 

o Operating Expenditures 1,926,326 

o Contribution Refunds 18,200 

o Contributions to Political Committees 5,000 

Total Disbursements $ 1,949,526 

Cash-on-hand @ December 31,2010 $ 14,692 
Part III 

Summaries 

Finding and Recommendation 

Finding 1. Receipt of Apparent Prohibited Contributions 

During audit fieldwork, a review of contributions revealed tfaat FOTY received 24 

apparent prohibited contributions totaling $19,700. FOTY hadjs^jtBiied $3,750 of die 

$19,700, albeit in an untimely manner. 

In response to tfae Interim Audit Report recommendationdfOT^^^jesentatives provided 

documentation demonstrating that two contributions^^|JA|g $600!SSjtee not prohibited 

contributions and refunded the remaining $ 15,35^|rapp9irent prohibiiA^ntributions. 

The Audit staff concludes that FOTY receivedj^mirent pi^ibited contifl^ton&totaling 

$19,100 and has refimded all of these contribOTio^glbeit men untimely msKsr. 

(For more detail, see p. 4) 

Finding 2. Receipt of cdl|^butions nn|gccess of the Limit 

During audit fieldwork, the Audit staf^|^^|^ontributi^nii^!i individuals. This 

review indicated that FOTY had receivecuppaR^i^sive omtributions totaling 

$94,854. These errors occurred as a resulKf Fwrt^^i^vin g the excessive portion 

of contributions eidierJ^^B^ding a pres^^^ve lettjFTo its contributors or by issuing 

a refund in a tunelyjwrner. 

In response to the Int 

documentatioi^ampnstraT 

contribut 

3. Faili 

During adlneldwork, a 

periods reveSkhat FOI 

$75,700. MosrWLeunfd 

idation, FOTY representatives provided 

Tally resolved die apparent excessive 

mann^r(For more detail, see p. 7) 

^to 48-Hour Notices 

jew di contributions received during die 48-faour filing 

failed to file 48-faour notices for 51 contributions totaling . 

notices were for general election contributions. 

In response to tfae faiffim Audit Report recommendation, FOTY representatives stated 

tfaat diey faad no addmonal information to provide in connection widi tfais finding. 

(For more detail, see p. 10) 
Part IV 

Findings and Recommendations 

I Finding 1. Receipt of Apparent Prohibited Contributions | 

Summary 

During audit fieldwork, a review of contributions revealed diat FOTY received 24 

apparent profaibited contributions totaling $19,700. FOTY faad re^nded $3,750 of die 

$19,700, albeit in an untimely manner. 

In response to tfae Interim Audit Report recommendation^E^F^^epresentatives provided 

documentation demonsUrating tfaat two contributions, totnig $oBaHvere not prohibited 

contributions and refunded tfae remaining $15,350 i^l^a^mt pron^^d contributions. 

The Audit staff concludes that FOTY received ana^nt prohibited comw|tions totaling 

$19,100 and has refunded all of these contribujffl^ albeitun an untimely^ 

Legal Standard 

A. Receipt of Prohibited Contributions - General l^Ubition. Candidates and 

committees may not accept contributifc|||in the form ofl^Qey, in-kind contributions or 

loans) from the general treasury fiinds oR^^ations. ThilVkniidition applies to any 

incorporated organization, including a no^stoSlm^ation, H incorporated 

membership organization, and an incorpoilted.a^oHBfete^U.S.C. §441b. 

B. Definition of Lil 

business entity rec 

established. 11CFR§1 

ty Compank. A limited liability company (LLC) is a 

under th&laws of the State in wfaich it was 

[Hion 111 Ljiyts aH^^rohibitioiIS to LLC Contributions. A contribution 

LC is subjeH^onu^^gnJimits and prohibitions, depending on several 

\ plained beil ^ 

LI (': • Parmershiji. ! .le o^tribution is considered to be from a parmersfaip if tfae 

ULX « .-.^-.ss to be.-ated as a parmership under Intemal Revenue Service (IRS) 

tax rulc>. i " i: it m^-.-s no choice at all about its tax status. A parmership 

contributi.".^;- r. wot exceed $2,400 per candidate, per election, in die 2010 

election cycl. S .ch a contribution must be attributed to each lawful parmer. 

11 CFR §ll€ffl(a), (b), (e) and (g)(2). 

2. LLC as Corporation. The contribution is considered to be from a corporation— 

and is barred under tfae Act—if die LLC cfaooses to be Ureated as a corporation 

under IRS mles, or if its sfaares are traded publicly. 11 CFR § 110.1(g)(3). 

3. LLC widi Smgle Member. The contribution is considered to be from a single 

mdividual if the LLC is a smgle-member LLC that faas not chosen to be dieated as 

a corporation under IRS mles. 11 CFR §110.1(g)(4). 

D. Limited Liability Company's Responsibility to Notify Recipient Committee. At 

die time it makes the contribution, an LLC sfaall provide to die recipient committee 
infonnation on how the contribution is to be attributed and affirm that it is eligible to 

make tfae conttibution. 11 CFR §110.1(g)(5). 

E. Organizations Financing. Organizations diat are not political committees under tfae 

Act tfaat make contributions and expendimres, but do not qualify as political committees 

under 11 CFR 100.5, must demonstrate througfa a reasonable accounting metfaod tfaat tfae 

organization has received sufficient funds subject to the limitations and prohibitions of 

tfae Act to make such contribution, expenditure or payment. 11 CFR § 102.5(b). 

F. Questionable Contributions. If a coinmittee receives a contribution diat appears to 

be profaibited (a questionable contribution), it must follow die jjifStb^cs below. 

1. Witfain 10 days of tfae treasurer's receipt of tfae questyr-.e contribution, tfae 

committee must either: 

• Retum the contribution to die contributor ^tB^t dt\-^^ • • -.; or 

• Deposit die contribution (and follow die^^^^^ow). 1 U • k §103.3(b)(l). 

2. If tfae committee deposits the questionabJgfRntribution, it may f^ispend die 

3. 

4. 

funds and must be prepared to refund 

funds to make tfae refunds or establisli a s 

depository for possibly illegal contributions^ 

Tfae committee must keep a vaitten record 

be prohibited and must includSTi'^ infiirmation 

contribution. 11 CFR §103.3(bK*V " 

Within 30 days of the treasurer's1|ceip'. u: fllMuestiofiSble contribution, tfae 

erefore maii fficient 

[t in a camps 

03.3(b)(4).^ 

wfay tfae contribution may 

: .-'orting die receipt of the 

committee must 

contribution 

statement 

explanatii 

11 CFR §103. 

itribution 

depos 

until 

must 

contributions 

§103.3(b)(4). 

est for evidence that tfae 

inclu(|5^, for example, a written 

wfay the contribution is legal or an oral 

e in a memorandum. 

ust either: 

jhe contribution; or 

le contributor and note die refund on the report 

d in ^c h die refund was made. 11 CFR §103.3(b)(l). 

appears to be illegal or is deposited mto a campaign 

used for any disbursements by tfae political committee 

faas been detennined to be legal. Tfae political committee 

a separate account in a campaign depository for such 

maintam sufficient funds to make all sudi refunds. 11 CFR 

Facta and Analysis 

A. Facts 

During audit fieldwork, the Audit staffs sample review of contributions received by 

FOTY identified contributions diat appeared to be from prohibited sources. As a result, 

the Audit staff performed a review of all deposit batches for profaibited contributions. 

This full review identified tfae following possible profaibited contributions: 
• 16 checks from LLCs totaling $14,650; and 

• eight checks from corporations totalmg $5,050. 

For tfae contributions from corporations, die Audit staff verified tfae corporate stams of 

tfae entities, as of the date of the contribution, with the various Secretary of State offices 

and a registered agent of a company. For conti'ibutions from the LLCs, FOTY provided 

no documentation tfaat stated wfaetfaer tfae companies elected to be treated as a parmersfaip 

or corporation for tax purposes. 

FOTY did not maintam a separate account for the possible prohi^ 

review of casfa balances detennined diat FOTY did not maintaij 

refunds of tfae possible profaibited contributions.^ 

contributions. A 

uent fimds to make 

Prior to audit fieldwork, FOTY sent out letters to contnpwrs re^ 

permissibility and allocation of tfae possible prohibji^Rl^and coi 

Specifically, FOTY sent these letters on March ]jfrlO\ 1 and May 6,2( 

die 

contributions. 

Of die 24 possible prohibited contributions totalu 

FOTY refunded contributions from corporations tot 

these refunds in an untimely maimer.%Jfaerefore, tfae rel 

profaibited contiibutions is $15,950 (SMMQ- $3,750). 

mtified by th^udit staff, 

1,750; however, FOTY made 

dng amoimt of possible 

B. Interim Audit Report & Audit Divi 

Tfae Audit staff discussed^ismatter with 

and provided a scheduk^HHnsparent prol 

A FOTY representg^j^stated^f tfaey were^ 

mdat 

"^repf^Hlrtves at tfae exit conference 

rited cont^utions identified in die review. 

Iprking on obtaining more documentation. 

In response to tfae exit 

tfaat faad bee|fifflHift£ont 

contribu|»n. jtio> 

and d^^dit staff re^ 

conmo!n2S it identifiec 

jepig^tatives provided some copies of letters 

reqtiess^l^ormation about tfae permissibility of tfaeir 

^ all tfae letters subsequent to tfae 2010 election cycle 

formation relating to tfae 24 possible prohibited 

The Interim 

• Provide 

^Report flommended diat FOTY: 

jnce^nonstrating that the remaining 20 contributions^ in question 

were made'Hhmrmissible fimds; 

Refimd $15,9)Rl, the remaining amount of apparent prohibited contiributions tfaat 

eitfaer faas not been refimded or faas not received a statement or explanation from 

tfae contributor attesting to tfae permissibility of tfae contributions; 

Disgorge tfae remaining fimds ($15,950) to die U.S. Treasury and provide 

evidence of sucfa disgorgement; or 

^ FOTY's primary election was on 5/4/2010. The cash-on-hand analysis showed that, on 4/28/2010, funds 

were not sufficient to make all tfae necessary refiuids. 

^ It should be noted that one of the contributions was only partially refimded. 
• If fimds are not available to make tfae necessary refimds or disgorgement, disclose 

die contributions requiring refunds on Scfaedule D (Debts and Obligations) until 

fimds became available to satisfy diis obligation. 

C. Comniittee Response to the Interim Audit Report 

In response to tfae Interim Audit Report, FOTY provided documentation demonstrating 

tfaat two contributions, totaling $600, were not profaibited contributions because tfae 

contributor files federal income taxes as a parmersfaip. Also, FOTY provided 

documentation demonstrating tfaat tfae remaining contributions were refimded in an 

untimely manner. 

Tfae Audit staff concludes tfaat FOTY accepted apparent pro] 

$19,100. FOTY refunded all of diese conti:ibutions, albe 

I Finding 2. Receipt of Contribu; 

contributions totaling 

manner. 

from individuals. This 

ontributions totaling 

le excessive portion 

mtributors or by issuing 

Summary 

During audit fieldwork, the Audit staff reviewed conl 

review indicated that FOTY had recei; • :>:*arent exc 

$94,854. These errors occurred as a ri-* I o IV not 

of contributions either by forwarding a • •••\. '. .-tter to 

a refimd in a timely manner. ^ ^ 

In response to the Intg^-.. \^\]' Ueport rea-'.:mendatiof[i FOTY representatives provided 

documentation deog-'ating '• -.i it had mate^Uy resolved tfae apparent excessive 

contributions, albeit .::-u:' -iiiti- •I^j^anner. 

irized ('niiiiiillii-e 

more dian 

::ia(a)(l)(A),m:FR 

B. Handling 

contribution tfaaf 

• Retum tfae 

ibutioi 

For the 2010 election, an authorized committee may 

er election from any one person. 

.1(a) and (b) and 110.9. 

That Appear Excessive. If a committee receives a 

e excessive, the committee must either: 

ii*nable cfaeck to tfae donor; or 

Deposit tfae attributions and keep enough money on hand to cover all potential 

refimds until tfae legality of tfae contribution is establisfaed. If deposited, tfae 

committee must seek a reattiibution or a redesignation of tfae excessive portion, 

followmg tfae instmctions provided in die Conunission regulations (see below for 

explanations of reattribution and redesignation). If tfae committee does not 

receive a proper reattribution or redesignation witfain 60 days of receiving tfae 

excessive contribution, refimd tfae excessive portion to tfae donor. 

11 CFR §103.3(b)(3), (4) and (5). 
C. Joint Contributions. Any contribution made by more than one person, except for a 

contiribution made by a parmership, shall mclude tfae signature of each contributor on die 

check, money order or otfaer negotiable instiiunent or in a separate writmg. A joint 

contiribution is attributed equally to each donor unless a statement indicates that the funds 

should be divided differendy. 11 CFR §110.1(k)(l) and (2). 

D. Reattribution of Excessive Contributions. Commission regulations permit 

committees to ask donors of excessive contributions (or conti:ibutions tfaat exceed the 

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

joint contribution from more than one person and wfaetfaer tfaey would like to reattiribute 

tfae excess amount to anotfaer contributor. Tfae committee mus* i^k% tfae contributor 

diat: 

The reattribution must be signed by both contribu^a, -

The reattribution must be received by tfae conu^iQ^ w 'i.'..^Aays of the 

committee's receipt of die original contribu^ 

The contributor may instead request a re^j^r of die excessive an t. 

llCFR§110.1(k)(3). 

1. 

2. 

3. 

Within 60 days of receiving die excessive contribuulrap committee must eitfaer receive 

the proper reattribution or refund the^cessive portioinffihe donor. 11 CFR 

§§103.3(b)(3) and 110.1(k)(3)(ii)(B).^b||^apolitical^l!^m 

records conceming the reattribution in cBfllHlBMl to be effeSBfe!^ 1 CFR §110.1(1)(5). 

Notwithstanding die above,_any excessive^ 

written instmment imnfl^^nifa tfae name 

attributed among tfa^mividiiHIksted, unles! 

The conunittee shcfn^n^ eacflbntributor: 

1. How the contrii^AD wmhrWiiabuted: 

2. Tha 

E. 

to redesi 

committee 

1. Then 

oranptDution tfaat was made on a 

'more throne individual may be 

istmcted otherwise by die contributor(s). 

st a refund of the excessive amount. 

The redesij 

committee's 

The contribut 

live CnHbutions. The conunittee may ask the contiibutor 

on dithe contiibution for use in another election. The 

ntributor that: 

t be signed by the contributor; 

ust be received by the committee within 60 days of die 

of the original contribution; and 

may instead request a refiind of the contribution. 

llCFR§110.1(b)(5)(ii)(A). 

Within 60 days of receiving die excessive contribution, the committee must eidier receive 

tfae proper redesignation or refimd tfae contribution to tfae donor. 11 CFR §§ 103.3(b)(3) 

and 110.1(b)(5)(ii)(A). Fiulfaer, a political cominittee must retain written records 

concerning die ^designation in order for it to be effective. 11 CFR §110.1(1)(5). 
Wfaen an individual makes an excessive contribution to a candidate's autfaorized 

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

general election if the contiribution: 

1. Is made before tfaat candidate's primary election; 

2. Is not designated in writing for a particular election; 

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

4. As redesignated, does not cause tfae contributor to exceed any odier contribution 

limit. 

Tfae coinmittee is required to notify tfae contributor of tfae redesignation witfain 60 days of 

die treasurer's receipt of tfae contribution, and must offer tfae cont|j|^utor tfae option to 

receive a refund instead. 11 CFR 110. l(b)(5)(i)(D)(ii). 

Facts and Analysis 

A. Facts 

During audit fieldwork, tfae Audit staff utilized a^l&bination of samplB^^g and 

focused reviews to identify apparent excessive^^^ibutidl^from individi^teifaling 

$94,854. This total is comprised of $94,554 ^m^^ectednUar value of wesample 

errors, and $300, die result of a focused review of tfllh^uning contributions. These 

apparent excessive contributions lesif^d from FOTY nnesolving the excessive portion 

of contributions by forwarding a Dresun|lttjj|e letter to its cHlkibutors, informing them of 

how their contribution was redesigiiate9RRH|^d or refiin^Mltie excessive 

contiribution. FOTY resolved excessive wnmUHh^gtalm^jPl 1,820 in an untimely 

manner, by issuing refimds. prior to auditibtifklhioi 

B. Interim Audit j^^rt &^^Qit DivisioiiQ^ecommendation 

The Audit staff di^flRfudiis iSter at the exuBmprference and provided FOTY 

representatives witfa a scMm|de^fc^^ contributions. The 

representatij^jj^flipj^ genMBlii58WwSlMiroresumptive letters and issuance of 

refimds.. 

In rcS'iiHSiB^to the exit cc 

relative t(Wh^DParent exC 

refund cfaecdSnted in Aui 

negotiated. Th^kditsts 

2011, totaling $21?^ 

i;ence, K i Y representatives submitted documentation 

iive Ontributions. The Audit staff received copies of tfaree 

it 2011 and totaling $550; two of these checks were not 

Iso received copies of presumptive letters dated August 5, 

As a result of the re&ds issued prior to audit notification ($11,820), tfae refunds issued 

in response to tfae exit conference ($550) and tfae presumptive letters sent to contributors 

in response to the exit conference ($21,450), the remaining apparent excessive 

contiibutions FOTY did not address totaled $61,034 ($94,854 - $11,820 - $550 -

$21,450). 

^ The sample error amount was projected using a Monetary Unit Sample with a 95 percent confidence level 

plus the result of a focused review of contributions not included in the sample population. The sample 

estimate could be as low as $53,689 or as high as $135,419. 
10 

The Interim Audit Report recommended that FOTY provide documentation 

demonstirating that contributions totaling $61,034 were not excessive. Absent such a 

demonstration, FOTY sfaould faave resolved tfaese apparent excessive contributions by 

either (1) sending presumptive redesignation/reattiibution letters informing contributors 

about how die excessive portion of their contributions was resolved and offering a refimd, 

(2) refimding the excessive portion of each contribution and providing evidence of such 

refunds, (3) disclosing the contributions requiring refiind on Schedule D if funds were not 

available to make the necessary refimds, or (4) making a payment of $61,034 to the U.S. 

Treasury and providing evidence of such payment. 

C. Committee Response to the Interim Audit Report j^lm^ 

In response to the Interim Audit Report, FOTY provided coMLof presumptive 

redesignation and/or presumptive reattribution letters senUroM||ient to receiving the 

Interim Audit Report. After reviewing the documentatiJnthe AcC' aff concluded tfaat 

$44,076 in apparent excessive contributions had bc^f^s^^ed in a:. • ely manner. 

FOTY also provided photocopies of two negotiat 

individuals, totaling $300. ^ ^ ^ 

In summary, of die $94,854 in apparent excessive. i* ' »-reions, FOTY has demonstirated 

diat it resolved contiibutions totalingt$77,896 ($21,4!^'• ;• 1,820 + $550 + $44,076) in 

an untimely maimer. 

Findings. Failure^ to File 

Smnmary > \- •• « 

Durmg audit field^ j:!V*^ic^'' ^'f contributi(«flceived during tfae 48-faour filing 

periods revealed that FO \'\ ' •!.-;1 * :. wir notices for 51 contributions totaling 

$75,700. jrfir*"'i^- -ifil^ifri--'.:es werenm: general election contiibutions. 

to die ln\-i :•: ^\ dit '<\^^Bff recommendation, FOTY representatives stated 

^. 10 additionl .formjRa to provide in connection with this finding. 

Legal StandiM 

Last-Minute Co!|p'ilMili^s (48-Hour Notices). Campaign committees must file special 

notices regarding c < i'^'itions of $1,000 or more received less than 20 days but more 

than 48 hours befor^Ky election in which the candidate is..running. This rule applies to 

all types of contributions to any autfaorized committee of tfae candidate, including: 

• Contributions from the candidate; 

• Loans from the candidate and other non-bank sources; and 

• Endorsements or guarantee of loans from banks. 11 CFR § 104.5(f) 
11 

Facts and Analsrsis 

A. Facts 

During audit fieldwork, the Audit staff reviewed contributions of $1,000 or more 

received during the 48-hour notice filing period for the primary election (4/15/2010 -

5/01/2010) and for die general election (10/14/2010 -10/30/2010). FOTY failed to file 

48-hour notices for 51 contributions totaling $75,700, as summarized below. 

Primary General Total 

48-Hour Notices Not Fiied $2^00 

(2) if 

$75,700 

(51) 

Tfae contributions for which 48-hour notices were not fil 

$60,200, eight political committees for $13,500 and tW 

B. Interim Audit Report & Audit Division Rj 

This matter was discussed with FOTY repres 

Audit staff provided a schedule of the contributi(^ 

filed. FOTY representatives did not provide any co: 

The Interim Audit Report recommenc 

faour notices were filed in a timely ms 

relevant. 

C. Committee Resp 

In response to tfae 

additional informi 

m 41 individuals for 

00. 

imendation 

confereii^ 

^8-faour noti( 

on tfais matter. 

die 

were not 

FOTY eidic 

dditional^ 

evidence diat tfae 48-

ents it considered 

t Repor( 

representatives stated tfaat tfaey faad no