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• fl(1I.R,\1 III C'IIC)N (~O.\ \l\lISS10N

n2". ~, "1 II I :'\; \ \'.

\\ '\"t U~t; It.. )~.l H.. 20';h 3

JaI1uary 5, 1979

HEt'-10RANDlJ!-1

At.tached pleas(~ find a copy of th(~ fin~l audit report of

the Arkansas Rcpublicl.l11 PJrty Fcdcra 1 C;):7Lp~i~;n COllUl1i ttce \'.'hich • \\]as approved by the Commi ssion on Dcc01nbcr 20, 1978.

TO:

'l'HROUGH:

F'ROr-1 :

SUUJECT:

SHARON SNYDER

PHESS O}:'l:'ICE

DOB COSTA

JUDY llA\'lKINS~

PUBI.llC ISSUl\NCE OF l\UDIT REPORT -

1\RIG\N ~j 1\S H.EPUBL I Ci\:: P1\R'l'Y FEDEHJ\L

CAr·1PAIGN CO:'~lIT'rEE

•

All informationt11 copies of this report h~vc been received

by all parties involved Lind this report may be rclc:asL:d to·thc

public as of today, January 5, 1979.

Attachment as stated

cc: Library

~AD

/i>ublic Record

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I"lD[R/\I. [1.l.C"IION CO.\1.\11SSiON

1\21") t: "n:tt I N \v. \V,\~, liNG l()N,U.C. 20·l&3

REPORT OF' 'l'lIE AUDIT DIVISION

ON 'I'IIE

AIU~l~N~;I~~ HEPUnI... IC1\N P1\R'!'Y FEDERAL Cru..1PJ\IGN CO:'~:'11'r'I'EE

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A. OvcrViC\'l

'Ehis report i~ based on an audit or the Arkansas

Republicilll Party Federal Campaign Committee ("the Cormnit.tee n )

l1ndcrtil}~cn b~' the Audit Divi.sion of the Federal Election

Conunissioll in accordance \-1ith the COlnlnission's audit policy

to determine \'lhethcr there has been compliance \·:i th the

provir.d.ons of the Federal Election Campaign ;~ct of 1971, as

amended (" the ;~ct: It). 'fhc audit \oJa~; conductC'd pt~~suant to

Section Is 38 (a) ((3) 0 f Ti tIe 2 of the Uni ted Stat '2 s Code \'Jhi ch

directs t.he COI~h~\ission to make fronl time to tirnc audi tf; and

fic]l1 il1v(~sti9ntions \\,ith respect t.o reports and statements

fil(~d under the provisions of the Act.

'rho Commi.ttee registered \oJi.th the ];'edcral E]ection

COJlunir;!>ion on 1~1urch 15, 197G a~ the State Fcd(~r...\l Campaign

C0IU1l1it.t0t! of the Arkansas Republican Party_ 'rhe CO:~lmittcc

maintains its headquarters in l~orth Litt1c R():-;}~, i\rkansas.

'I'he audit covered thl~ period from ,1~nnC:-lry 1, 1976

throU~lh H~rch 31, 1978, 1/ the final coverage d~te of the

Juor;t recent report filed-by the Commi ttcc at 1:.h6 time of the

uuc1i t. For the period Narch 15, 1976, thraus:} NovQmbcr 22,

19 P/6, the Co:m~li. ttce reported bCCjinning cush of $ -0-, total

rcccd.pls und c:-=pl"ndi ture~j of $13, 24~;, und cl,,~~i.n<J cash of

$-0-. For the p0rioa J~lnuary 1, 1978, thrO\.l~}:i :·:~41·(;11 31, 1978,

the CO:~l~~Li t t('C rcporte(l bC~J j nn.i ll~J C;l!-;h of ~~-O-, total rccci.pt~

of $3,750.00, tot~ll cXl'endjt:u).-c~.; of $3,~Gl.15, and a clotii1l9

C iU.;11 b~ll ,1 nee on 1-1 arch 3J., 197U 0 r ~~ t1 B8 • US •
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Thi!; iludi t. l"('port in h~l~.)cd on documcn t!,; ilnu \'/or}: i.nq

P(lp(!J:r.~ whi <.:h :alpport Vil<:h of the factual :~t.at.('\ment:;. '!'hey form

part of the record upon \'lhich the COlnmis~:i.on ba~cd i.t~ ucci:.;ionr;

on the JnLltlcrs in lhu rc.'port and \'lere available to Commis~;ioner5

(lna ilppropric:ltc fita f f .for revic\'1.

The pri.ncipal officers of the Committee during the

period audi t.cu \-J(~]"" Hr. 1\. Lynn Lowe, Chairmiln, through Novembl~r

19, 1976, Hr~. Add f.1i.lls, ChcJjrpcr~;on from Jinlu~ry 16, 1976 t.hl·Ol1~Jh

the close of lll... lJt.'}·iod audiLcc.1, and Dr. }"ou(-rl K. Luthcr, '!'leasul:cr.

c. SCOP(~

'rhc audi.t tncluc1ed ~uch tests uS verification of total rcpo)~t:cd rcccipt:-;; dJld 0xpcndi turcs and individual transactions;

rcvic\·J or required ~upp()rt5.ng documentation ilnd analysi.s of

Commi.tt.ee debts and olJli9ations; and such other iludit procedures

as dC~Ia(~d neccssar:/ undcr the circumstnncc3.

J t i.s the opj nj on of the l\tH.1i t. stnff, bn~cd upon e:-:~l.ln:i.ll~Lion

of the reports ~llHl :~t~ttcIa('nts filcc.1 and the l:cco~"c1s prc~cnlcd,

th:lt., e:·:c(~pt. for th(:' (:efjcienc.i.('~; noted b(~lo~.·.', t.he rcport~ and

stntC'nll~nt.s of the l\rl:dn~~a~~ n.cpublican P~ll~ty Federal Campni~Jn

Commi tl(~c f.:lirly pr('~~(':1t the financiiJ.l activiticf~ of t:hc Commi Ltcc

for the period COV('l'l~tl h~' the iludi t. Furt.hc'r, c;·:cc:pt ,lS not(.~d

be 10\'" , 110 matcl:ial })!'o:)l('I:1s in co:np] yi n~i \.:.1 til t.l~(: F(!c1crl\] Election

Camp,!i~pl Act \·:0re di~co\'cred during llH.~ cour:;{~ of lhe uudit.

Part lOG. 1 (e) of 'ri. t.lc 11, Chapter ] of the Code of

};'cdcrul }~e~ltllllti.()n~~ ~;t.:1tc::..;, in p.:1rt, th~t ih1rly committ.C'Qs \'lhich

have ('~;t~bli~;~ll.·d F(.~dt~r,il. ct1mp~li9n co~;·.:~lit.Ll·('~~ i'ur~;uant to Part

lO~~. G ~:h~111 ~llluc~lLc ;:(~ji,ini.~~trtlti\'(! C:::)(.':~~;I..'~; (':1 <:1 rca~:'oll~lb) 2

bll~~j:~ b\.~L\-:,-~\.~n thc'ir J·\..'dL'r~ll ilntl nOll-r\~.'dl..'r\ll ~\c:';,;o:Jnt~.; in proportion

lo tlh' ,Ul1oun t o[ f \In(l~~ p:-:pL'ndcd on l:'ecl~l-al dlhJ Hun-Federal

clet:tions, or Oll illlothcr l:c~l~onablc b~~i~; •

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. During our rc'J.~t'\-J of thc Committec's records nnd

)('llorl:1, we c1incov(~J:ed tll"t. no c:ldmini~tr~tivc co~ts \vere

.t I IOCiltcd bct\'Jccn the Fcdl'I:",l und non-Fe<.leral ilccounts. 'I.'he

(',.lllIni. ttce officials !jtatecl that these costs \-lcre borne entirely

1'1 t.he ztiltc c~mp~iCJn co:nmittcc. However, they ilgreed to illloc.:ltc

t Ia(' (H]mini~j triltive e;..:pcnscs be: l\'lcc.:n the Federal and non-t-'cderal

iH.'(·ounts in proportion to the total nmount of expenditures

IUdd(! by the Federal and non-Feueral committees.

,

H(~conuncnda li.on

The Commi ttec of.fi.ci~11s filed an amcnded report on Scplcnlbcr

15, 197B di ~closing the udministrutivc e:·:pcnr;c as n debt oVlcd to

the 1\r}~unsas H.epublican Party. Therefore, the 1\udit staff

rccorrunenc1s no further action bc taken on this matter.

B. Disclosure of Individual Contl-ibuti.ons

Section 434(b) (2) of Title 2 of the United St~tcs

Code rcquirc~ a polit i.c~l commi ttce to d .i.~~clor;e i.n its -reports

of recei.pts and cxpcIldi Lures th(~ full name and nlailing uddl"ess

(occupation ilnl1 the principal plncc of bur;ine!.i5, if any) of each

per~)()n ,..'ho he:t~.i made one or mort! contrihution~ to such cO::"Jnittec

\,·ithi 11 the calcndar year in an aggrcg,lLc: idilollnt or V.:lluc in C:-:C(1S~;

of $100,. together ,,-lith the anlount dnu date or such contribution.

Our revi.c\·.' of the record:. disclosed that the Co::mL1. t lee

c1 ic1 not itemi 2 C s i :.: (G) con t r ibu l: i on ~.;, C ucll in excc s S 0 f $100

(111(1 totaling ~~1,720.00. 'l'his rcpr('~..)l~lltf; all of the Con'J1~ittcc'~~

il(,llli~ablc i ndividual cOlltribution~;. ELich of the contributions

\'l(~)~e, ho,~cvcr, disclosed iU; uni tCluizcd receipts.

H(~c( tll1mcnu~ti.on

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'J.'hc Committ0c offici.nl~ filed an amended report on scptcmbc!r

l~), ) Y7U i. tcmizing the contribuLi.ons. 'j'hcrc[orc, the Audi t staff

rceol1UaCndf; no further action be taken on this l1\ilLtcr.
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Section 432 (c) (;~) or 'ritle ;~ of the United Stntc!~ Code'

l:cCJuirC'~j th<." trCi1~urer of il po] itlcal com:nittec to keep.'1 deLailed

(111<.1 c>:acL (lccount of the id'·ntifi.catioll of every person m~ki.nlJ a

contri.butioll in c:":cc~~s of ~;~)() I togetht.'r \'Ji th the dutc and ,1t\\ount

thereof aIld, i.f a pcrr.;on I s contributions i:HJ(JreCJat(~ morl' thiUl $100,

the ilCCOUlll ~~hal1 include the occupulion ,:uHl pr.inci.p.:ll plac~ of

business (if any).

D\1 r j n9 t h (; coU r ~; l: 0 f tho auui l., i t \'1il ~; deLc r 1111. nc c1 l hat

b;lnk c10PO~;i t ~jlips \·.·i th con tri btl lor.s I n~unc~ con tuincd thereon .

\.:(.~ )'C the only con tribut:ion documen La t ion re tainec1 by' th0 ComIlli t tee.

'J'h'~l~eforc, the Committee \';il~; un,~ble to provide ildequatt."l r<.~corU[~

f ()r 19 con t ributi 0 n s, C -:lC h j n (~:.~ c (~ ~~ S 0 [ ~; :) 0, tot 1 i. n9 $ 3 , 0 2 0 • 00 .

~j}: (6) of the contrib"-ltioll:; (·~·:ccedc\.l $]00, und totaled $1,720.00.

'l'h('~~e contributions rcprcsL'l1ll'd all of the contributions requiring

~\lch record retention.

The C0I11.i:1i t tee off.i (' i als \·.'C rc in formed o[ the ::-ecord-

)~(l('pi.Jl~j rcquil·cl:K~nts ~.;,:'t: f()j"t!l in the Act., i~nd \·:cr~ pro\'idc:c.l

in f ()1:l~;a t :l 0: 1 llC': co ~~;-: ~~ry to (':: t .: h 1 .~ ::h ~"(~C01·(!~:e!.' pin'J ~y~; tC::l th-:t t

\·~()uld il~j~-;ist the Co::~:.1i ttcu in compl~ling \'Ji lil the appl-op1.-iatc

provisions of the l~ct.

Si.nce the:' l~udit staff r~ccivcc1 copit.~~j of the.' contributor

j nfol:1Hntion fro;n tl:c Co:nnd.t.tce on AUSjust 21, 1978, no further

ilction is rccol11:11cnCiL:d on t.his In~tter.

D. OtllC'r I·1attcr'

Presented 1)(']0'..1 i~; illlolhc-r l:'.~ltl.l~r 1'lotc\.l during the

il\Hlit for \\'111.c.:h the .t\u..'iit ::La;'f f('cl~; nn act.ion i.s \·.'i'lrraatcd.

'1'hc' CO:I~::\ittce of[i<.:i~~l~: hd'h.· b~'\.··ll ilcl\·.l.!;Vl1 of t.J~e matter and

inr~)).·lilcd or .the rclat~"l ~·c(.Juj,rc:l~~nt5 of. lh(~ Act •

. 'l'hc Conunit.t(\(" hod no lH.:ti\9,itl' fl:l"'::' July 1, 197G

thl"(Hl t.lh l\U~lu~;t 31, 19·/G. ;~:~ a r(\~;\llt·-, tIlt' <1i:~c]o~\lrc l"0port.

for t lll' 1. hi rd ql4\1l·t2~· \oj!:' 19'iG \:.·l~' .i.n:~\.l\·\,·l·t.\.'ntJ~" l1~ll(:<.1 ~~"~LJ~ ('mbCl:

1, ]~J'l{; thl"Ou(jh ~;L·j"~-(":.• :h~r 30, ]~7G l·~:Llh\~· tll;~'l Lh.,~ cor~·c<;t

CO\·\.·)·d~il: date <.>1 ~lulJ' 1, l~·il.J llu:u\l~i~l ~~c.;i't.L·n.;)C':.- 30, 197G •
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