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TABLE OF CONTENTS

NATIONAL COMMUNITY PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

Page
Executive Summary 1
Final Audit report 3
Background 3
Findings 5
Transmittal to Committee 7

Chronology 9


14, 1997. The Pharmacists maintains its headquarters in Alexandria Virginia and its
treasurer is Mr. John Rector who also served as treasurer during the period covered by the
audit.

To manage its financial activity, the Pharmacists maintained one bank
account. The committee receipts were comprised of approximately 1,555 contributions
from individuals, totaling $133,449. The accounting and record keeping functions were
performed by the committee using commercially available management software. The
Pharmacists did not file its disclosure reports electronically during the period covered by
the audit. Paid staff who had not attended any FEC seminars performed the record
keeping and reporting functions.

D. AUDIT SCOPE AND PROCEDURES
Following Commission-approved procedures, the Audit staff evaluated

various risk factors to determine the scope of this audit. The audit included testing of the
following general categories:

1. The receipt of contributions or loans in excess of the statutory
limitations;
2. The receipt of contributions from prohibited sources, such as those

from corporations or labor organizations;

3. Proper disclosure of receipts from individuals, political committees
and other entities, to include the itemization of contributions or
other receipts when required, as well as, the completeness and
accuracy of the information disclosed;

4. Proper disclosure of disbursements, including the itemization of
disbursements when required, as well as, the completeness and
accuracy of the information disclosed;

5. Proper disclosure of debts and obligations;

6. The accuracy of total reported receipts, disbursements and cash
balances as compared to bank records.

7. Adequate record-keeping for transactions; and,
8. Other audit procedures that were deemed necessary in the situation.
As part of the Commission’s standard audit procedures, an inventory of

Pharmacists records was conducted prior to the audit to determine if the records were
materially complete and in an auditable state. Based on our review of the records

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FEDERAL ELECTION COMMISSION

WASHINGTON, DC 20463

REPORT OF THE AUDIT DIVISION
ON THE
NATIONAL COMMUNITY PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

EXECUTIVE SUMMARY

The National Community Pharmacists Association Political Action Committee
registered with the Federal Election Commission on July 23, 1975 as the National
Association of Pharmacists Political Action Committee. The Committee maintains its
headquarters in Alexandria, Virginia.

The audit was conducted pursuant to 2 U.S.C. §438(b) of Title 2 of the United
States Code that states, in part, that the Commission may conduct audits and field
investigations of any political committee required to file a report under Section 434 of
this title.

The audit was for the period January 1, 1999 through December 31, 2000. The
Audit staff found that the Committee met the threshold requirements for substantial
compliance with the Federal Election Campaign Act, as amended. The Commission
approved the Final Audit Report on July 11, 2002.

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FEDERAL ELECTION COMMISSION
WASHINGTON. DC 20464 AO01-22

REPORT OF THE AUDIT DIVISION
ON

NATIONAL COMMUNITY PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

I. BACKGROUND
A. AUDIT AUTHORITY

This report is based on an audit of the National Community Pharmacists
Association, Political Action Committee (Pharmacists), undertaken by the Audit Division
of the Federal Election Commission (the Commission) in accordance with the provisions
of the Federal Election Campaign Act of 1971, as amended (the Act). The audit was
conducted pursuant to Section 438(b) of Title 2 of the United States Code that states, in
part, that the Commission may conduct audits and field investigations of any political
committee required to file a report under Section 434 of this title. Prior to conducting any
audit under this subsection, the Commission shall 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.

B. AUDIT COVERAGE

The audit covered the period from January 1, 1999 through December 31,
2000. The Pharmacists reported a beginning cash balance of $18,612; total receipts for
the audit period of $137,187; total disbursements for the audit period of $139,725; and
ending cash balance of $16,073.

Cc. CAMPAIGN ORGANIZATION

The Pharmacists registered with the Commission on July 23, 1975 as the
National Association of Pharmacists Political Action Committee and changed its name to
the National Community Pharmacists Association Political Action Committee on April

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FEDERAL ELECTION COMMISSION

WASHINGTON, DC 20463
July 23, 2002
MEMORANDUM
TO: RON M. HARRIS

PRESS OFFICER
PRESS OFFICE

FROM: JOSEPH F. STOLTZ tL,
ASSISTANT STAFF DIRECTOR
AUDIT DIVISION |

SUBJECT: | PUBLIC ISSUANCE OF THE FINAL AUDIT REPORT ON
NATIONAL COMMUNITY PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

Attached please find a copy of the final audit report and related documents on the
National Community Pharmacists Association Political Action Committee that was
approved by the Commission on July 11, 2002.

All parties involved have received informational copies of the report and the
report may be released to the public on July 23, 2002.

Attachment as stated

ce: Office of General Counsel
Office of Public Disclosure
Reports Analysis Division
FEC Library


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presented, it was concluded that they were materially complete and the audits
commenced immediately.

Il. AUDIT FINDING AND RECOMMENDATION

Based on our examination of the reports and statements filed, and the records
presented by the Pharmacists, no material non-compliance was detected.

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CHRONOLOGY

NATIONAL COMMUNITY PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

Date
Initiation of Audit April 08, 2002
Audit Fieldwork May 13, 2002-
June 10, 2002
Final Audit Report Approved July 11, 2002

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Approved July 11, 2002


REPORT OF THE AUDIT DIVISION
ON THE

NATIONAL COMMUNITY
PHARMACISTS ASSOCIATION
POLITICAL ACTION COMMITTEE

Approved July 11, 2002

FEDERAL ELECTION COMMISSION
999 E STREET, N.W.
WASHINGTON, D.C.





A01-22

FEDERAL ELECTION COMMISSION
WASHINGTON. DC 20403

July 12, 2002

Mr. John Rector, Treasurer

National Community Pharmacists Association PAC
205 Daingerfield Road

Alexandria, VA 22314

Dear Mr. Rector:

Attached please find the Final Audit Report on National Community Pharmacists
Association PAC. The Commission approved the report on July 11, 2002.

The Commission approved Final Audit Report will be placed on the public record
on July 22, 2002. Should you have any questions regarding the public release of the
report, please contact the Commission's Press Office at (202) 694-1220. Any questions
you have related to matters covered during the audit or in the report should be directed to
Horace Inniss or Wanda Thomas of the Audit Division at (202) 694-1200 or toll free at
(800) 424-9530.

—

/ s
elG / } AML )
/ Joe Stoltz ae

Assistant Staff Director
Audit Division

cc: Robert Bobowski, Assistant Treasurer

Attachment as stated

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