FEDERAL ELECTION COMMISSION 

WASHINGTON, D.C. 20463 

November 14,2008 

Scott S. Mackenzie, Treasurer 

Americans Against Illegal Immigration PAC 

3464 South Utah Street 

Arlington, VA 22206 

Dear Mr. Mackenzie: 

Attached, please find the Report of the Audit Division on Americans Against 

Illegal Immigration PAC. The Commission approved this report on November 06, 2008. 

The Commission approved Final Audit Report will be placed on the public record 

on November 24, 2008. Should you have any questions regarding the public release of 

this report, please contact the Commission's Press Office at (202) 694-1220. 

Any questions you may have related to matters covered during the audit or in the 

report should be directed to Horace Inniss or Thomas Nurthen of the Audit Division at 

(202) 694-1200 or toll free at (800) 424-9530. 

Sincerely, 

Yevrvo!Av 

Wanda J. Thomas 

t~

Acting Assistant Staff Director 

Audit Division 

Attachment as stated 
Report of the Audit Division on 

Americans Against 

Illegal Immigration PAC 

July 05,2005 - December 31,2006 

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. 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. 

2 USc. §438(b). 

About the Committee (p. 2) 

Americans Against Illegal Immigration PAC (AAIIP) is a nonconnected, non-qualified, multi-candidate Political Action 

Committee and is headquarters in Montrose, California. For 

more information, see chart on Committee Organization. 

Financial Activity (p. 2) 

•	 Receipts 

o	 Individuals $ 891,736 

o	 Loans 3,000 

o	 Other Recei pts 13,984 

o	 Total Receipts $ 908,720 

•	 Disbursements 

0 Operating Expenditures $ 848,037 

0 Contribution Refunds 25 

0 Other Disbursements 22,224 

0 Total Disbursements $ 870,285 

Finding and Recommendation (p.3) 

•	 Disclosure of OccupationlName of Employer 

I 
Table of Contents 

Page 

Part I. Background
 

Authority for Audit 1
 

Scope of Audit 1
 

Part II. Overview of Committee
 

Committee Organization 2
 

Overview of Financial Activity 2
 

Part III. Summary 

Finding and Recommendation 3
 

Part IV. Finding and Recommendation 

Disclosure of Occupation/Name of Employer 4
 
1 

Part I 

Background 

Authority for Audit 

This report is based on an audit of Americans Against Illegal Immigration PAC, 

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 disclosure of individual contributors' occupation/name of employer; and, 

2. The consistency between reported figures and bank records. 
2 

Part II 

Overview of Committee 

Committee Organization 

Important Dates AAIIP 

• Date of Registration July OS, 2005 

• Audit Coverage July OS, 2005 to December 31, 2006 

Headquarters Montrose, California 

Bank Information 

• Bank Depositories One 

• Bank Accounts Escrow Account 

Non-Profit Checking 

Treasurer 

• Treasurer When Audit Was Conducted Scott B. Mackenzie 

• Treasurer During Period Covered by Audit John W. Leuthold 

Management Information 

• Attended FEC Campaign Finance Seminar Yes 

• Used Commonly Available Campaign 

Management Software Package 

Yes 

•	 Who Handled Accounting and Scott B. Mackenzie 

Recordkeeping Tasks 

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand @ July 05, 2005 ­

0	 Indi viduals 

0	 Loans 

0	 Other Receipts 

Total Receipts 

0	 Operating Expenditures 

0	 Contribution Refund 

0	 Other Disbursements 

Total Disbursements 

Cash on hand @ December 31, 2006 

$0 

$ 891,736 

3,000 

13,984 

$ 908,720 

$ 848,037 

25 

22,224 

$ 870,285 

$ 38,435 
4 

Part IV
 

Finding and Recommendation
 

I Disclosure of Occupation/Name of Employer 

Summary 

AAIIP did not adequately disclose the contributor's occupation/name of employer for 

665 contributions totaling $63,906. Follow-up letters were sent to a number of 

contributors requesting the information. Although responses were received, AAIIP did 

not file amended reports disclosing the new information. In response to the interim audit 

report, AAIIP materially complied with the interim audit report recommendation. It 

provided copies of the letters it sent to the remaining contributors and filed amended 

reports disclosing the contributor information it received. 

Legal Standard 

A. Itemization Required for Contributions from Individuals. A political committee 

other than an authorized committee must itemize any contribution from an individual if it 

exceeds $200 per calendar year, either by itself or when combined with other 

contributions from the same contributor. 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. 11 

CFR §§100.12 and 104.3(a)(4) and 2 U.S.c. §434(b)(3)(A). 

C. Best Efforts Ensures 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. 2 U.S.c. §432(h)(2)(i). 

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

have used "best efforts" with respect to contributions 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 after the 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. 
5 

•	 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 

The Audit staff reviewed contributions from individuals reported on Schedule "A" for 

disclosure of occupation/name of employer. The review identified 665 contributions, 

totaling $63,906, where AAIIP did not adequately disclose the contributor's occupation 

and/or name of employer. AAIIP was able to provide copies of 375 follow-up donor 

letters that requested the missing information. Even though a number of responses were 

received, AAIIP did not file amended reports at the time it received the information. 

Further, there was no evidence that AAIlP sent follow-up letters to contributors for the 

remaining 290 contributions ($36,414) lacking such information. 

This matter was discussed at the exit conference. Subsequent to the exit conference, 

AAIIP filed amended reports disclosing the contributor information it received. 

Interim Audit Report Recommendation and Committee's Response 

The Audit staff recommended that AAIIP contact each contributor for the remaining 290 

contributions lacking the contributor's occupation and/or name of employer; submit 

evidence of such contact; and, amend its reports to disclose any information received. 

AAIIP materially complied with the interim audit report recommendation. It provided 

copies of the letters it sent to the remaining contributors and filed amended reports 

disclosing the contributor information it received.