Final Audit Report of the 

Commission on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 

Why the Audit 

Was Done 

Federal law pennits the 

Comiiiission to conduct 

audits and field 

investigations of any 

political committee that is 

requued to file reports 

unto the Federal 

Election Campaign Act 

(theAct).' The 

Commission generaliy 

conducts such audits 

when a committee 

iqipears not to have met 

tte threshold 

requirements fi)r 

substantial compliance 

with the Act The audit 

detennines whether the 

committee conqilied with 

the limitations, 

prohibitions and 

disclosure requirements 

of the Act 

Patare Aetlon 

The Commission may 

initiate an enforcement 

action, at a later time, 

with reflect to the matter 

discussed in this report 

About the Campaign (p. 2) 

Brenda Lawrence for Congress is the principal campaign 

committee for Brenda Lawrence, Democratic candidate for the 

United States House of Representatives fiom the state of 

Michigan, \A!^ District, and is headquartered in Soulhfield, 

Michigan. For more information, see the Campaign Organization 

Chart, p. 2. 

Financial Activity (p.2) 

• Receipts 

o Contributions fiom Individuals 

o Contributions fiom Other 

Political Committees 

Total Receipti 

• DbboiieiiieBti 

o Operating Expenditures 

o Contribution Refunds 

o Other Disbursements 

Total Disbursements 

Commlsaioa Finding (p. 3) 

• Misstatement of Financial Activity 

$528,753 

249,900 

$778,653 

$673,351 

1,000 

12,000 

$686,351 

' 32 U.S.C §30111(b) 
Final Audit Report of the 

Commission on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 
Table of Contents 

Page 

Parti. Background 

Authority fi»r Audit 1 

Scope of Audit 1 

Audit Hearing 1 

Partn. Overview of Campaign 

Campaign Oiganization 2 

Overview of Financial Activity 2 

Partm. Summary 

Commission Finding 3 

Part IV. Commleeion Finding 

Misstatement of Financial Activity 4 
Parti 

Background 

Authority for Audit 

This iqxnt is based on an audit of Bcenda Lawrence fiw Congress (BLFC), undertaken by 

the Au^t Division of the Federal Election Conunission (the Commission) in accordance 

with the Fedeial Election Campaign Act of1971, as amended (the Act). IlieAudit 

Division conducted the audit pursuant to 52 U.S.C. §30111(b), which pennits the 

Commission to conduct audits and field investigations of any political committee that is 

required to file a rqxnt under 52 U.S.C. §30104. Prior to conducting any audit under this 

subsection, the Conunission must perform an internal review of reports filed selected 

committees to determine if tiie reports filed by a particular committee meet the thicfoold 

requirements for substantial compliance with the Act. 52 U.S.C. §30111(b). 

Scope of Audit 

Following Commission-aqqicDved procedures, the Audit staff evaluated various riric 

foctors and as a result, this audit examined: 

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

2. the disclosure of disbursements, debts and obligations; 

3. the consistency between reported figures and bank records; 

4. the conqrieteness of records; and 

5. other canipaign operations necessary to tbe review. 

Audit Hearing 

BLFC declined the opportunity for a hearing before the Conunission on the matter 

presented in this report 
Part II 

Overview of Campaign 

Campaign Organization 

Important Datm 

• Date of Resislntion November 27,2013 

• Audit Coverafle November 7,2013 - December 31,2014 

Headanartcn Soutfafield. Michigan 

Bank Information 

e Rank TVnnaitnnM Two 

• Dana Accoums 1 wo CDCCKiog, one savings 

Treasurer 

• Treasurer When Audit Was Conducted Joe Livioti (3/17/15 - 4/29/2015) 

Robert S. Dziuida (4/30/13 -10/13/15) 

Lindsay Angobolzer (10/14/15 -

Present) 

e Treasurer Dunna Period Covered by Audit Shanm Baseman (11/27/13 - 3/16/15) 

Management Infbrmatlon 

• Attended Commissian Canapaign Finance No 

• Who Handled Accounting and 

Recordkeeinng Tarits 

Paid Staff 

Overview of Financial Activity 

(Audited Amounte) 

Cash-on-hand (St November 7,2013 S121 

Receipts 

o Contributians fiom Individuals 528,753 

o Contributians fiom Other Political 

( 

249,900 

IHIJI illirl|a|« S778d653 

Dbbuncmcnti 

O Onamtinp RvwfnHifiiiva 

o v^onuiDuuun iwiUDUS I,UUU 

o Other Disbursements 12,000 

Total Disbnisementa 3686,351 

Cash-on-hand @ December 31,2014 $92«423 
Part 111 

Summary 

Commission Finding 

Mlntatement of Financial Activity 

During audit fieidwoik, a compariaon of BLFC'a reported activity with its bank records 

identified a misstatement in 2014. In 2014, disbunements were understated by $25,608 and 

ending cash-on-hand was overstated by $2^10. Subsequent to the exit coinfixence,BLF€ filed 

amended disclosure reports and materially collected the disbursements. However, ending cariion-hand remained materially misstated by $8,022. In response to the Interim Audit Report 

recommendations, BLFC filed disclosure rqxnts vriiidi materially corrected the ending 

cash-on-hand. As such, BLPC has corrected the public record and had no additional comments 

in response to the Draft Fiiul Audit Report 

The CQmmission qiproved a finding that BLFC misstated its financial activity fin* calendar year 

2014. (For more d^l, see p. 4.) 
Part IV 

Commission Finding 

Mi—tatement of Financial Activity 

Bummary 

During audit fieldwofk, a campmacm of BLFC's reported activity with its bank reconb 

identified a misstatement in 2014. In 2014, disbursements were understated by $25,608 and 

ending cash-on-hand was overstated by $23,810. Subsequent to the exit confinence, BLFC filed 

amended disclosure reports and materially corrected the disbursements. However, ending cadion-hand remained materially misstated by $8,022. In response to the Interim Au^ Rqxnt 

reconunendations, BLFC filed amended disclosure reports vriiich materially corrected the ending 

cash-on-hand. As such, BLFC has corrected the public record and had no additional comments 

in response to the Draft Final Audit Report 

The Commission approved a finding that BLFC misstated its financial activity firr calendar year 

2014. 

Lefni Standard 

Contents of Raporta. Each report must disclose: 

• The amoumofcash-on-hand at the begirming and end oftfae reporting period; 

• The total amount ofreceiptsfisr the reporting period and for ttie election cycle; 

• The total amount ofdisbursements for the repGiting period and ftyr the election cycle; and 

• Certain transactions that require itemization on Schedule A (Itemized Receipts) or Sdhedule 

B atemized Disbursements). 52 U.S,C. §30104(bXl). (2X (3), (4) and (5). 

Faota and Analyala 

A. Facts 

During audit fieldwotk, the Audit staff reconciled BLFC's reported activity with its bank records 

fiv 2013 and 2014. The following chart outlines the discrepancies between BLFC's 2014 

disclosure reports and its barik records. The succeeding paragrqdu explain the 

discrepancies occurred. 

2014 Committee Activity 

Reported Bank Records DiscrcDancv 

Beginning Cash Balance @ 

. 1.2014 

$92,871 $90,036 $2,835 

Overstated 

Receipts $673,212 $677,845 $4,633 

Undetsbtted 

Disbursements $649,850 $675^58 $25,608 

Undentated 

Ending Cash Balance @ 

December 31.2014 

$116,233 $92,423 $23,810 

Overstated 
Tlie beguming caah-^-hand balaiKM was oventated by $2,835 and resulted fhmi prio^period 

discfcpancies. 

Tbe understatement of disbursements lesnhed from the following; 

• Unreported disbursements + 28,816 

• Disbursement rqx)rted twice 2,983 

• Reported, disbursements that did not clear the bank = 225 

Net Understatement of Disbuncmcnts + QUOS 

The misstatements described above resulted in the overstatement of the ending cash-on-hand 

balance by $23,810. 

B. Interim Andit Report A Andit DIvUon Recommendation 

The Audit staff discussed this matter during the exit conference and provided BLFC 

representatives with the 2014 bank reconciliation. The BLFC xqnesentatives concurred with the 

misstatement finding. Subsequent to the exit conference, BLFC filed amended disclosure reports 

vdiich materially corrected the disbursements misstatement. However, ending cash-on-hand 

remained materially misstated by $8,022. 

The Interim Audit RqxHt recommended that BLFC leoonrile the carii balance on its most recent 

report to identify any subsequent discrepancies that could affect the recommended renudning 

$8,022 adjustment Hie Interim Audit Rqxnt further recommeiided that BLFC adjust the cash 

balanoe, as necessary, on its most recent report, noting that the adjustment is the result of priori 

period audit adjustments. 

C. Committee Response to Interim Andit Report 

In response to the Interim Audit Report recommendations, BLFC filed amended disclosure 

reports which nnaterially corrected the ending cash-on hand misstatement identified by the Audit 

st^. BLFC stated that it has taken stqM to bolster hsoomidianceoperatioiis and engaged a new 

compliance firm to handle its accounting and rqxnt pr^Miation functions. As such, BLFC 

complied with the Interim Audit Report recominendations and corrected the public record. 

D. Draft Final Andit Report 

Hw Draft Final Audit Rqmrt acknowledged that BLFC amended its disclosure reports to 

materially correct its disclosure iqxirts. Further BLFC made organizational chan^ to better 

handle accounting and reporting fhnctions in the future. 

E. Committee Response to the Draft Final Andit Report 

BLFC's responae to .the Draft Final Audit Report provided no additional conunents. 

Cammineiim Conchinton 

On August 3,2016, the Commission considered die Audit Division Recommendation 

Memorandum in wliich the Audit staff recommended that the Commission find that BLFC 

misstated its financial activity fiir calendar year 2014. 

The Commission rqqrroved the Audit stafTs recommendation.