95

Draft Final Audit Report of the 

Audit Division on 

Weber for Congress 

(January 1, 2019 - December 31, 2020) 

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 

Future Action 

of the Act. 

DRAFT

The Commission may 

initiate an enforcement 

action, at a later time, 

with respect to any of the 

matters discussed in this 

report. 

1 52 U.S.C. §30111(b). 

About the Campaign (p. 2) 

Weber for Congress is the principal campaign committee for 

Randy Keith Weber, Sr., Republican candidate for the United 

States House of Representatives from the state of Texas, 14th 

Congressional District, and is headquartered in Friendswood, 

Texas. For more information, see the Campaign Organization 

chart, p.2. 

Financial Activity (p. 2) 

• Receipts 

o Contributions from Individuals $ 557,822 

o Contributions from Political 

Committees 393,957 

o Offsets to Operating 

Expenditures 2,586 

o Other Receipts 414 

Total Receipts $ 954,779 

• Disbursements 

o Operating Expenditures $ 671,382 

o Transfers to Other Authorized 

Committees 221,620 

o Contribution Refunds 1,253 

Total Disbursements $ 894,255 

Findings and Recommendations (p. 3) 

• Misstatement of Financial Activity (Finding 1) 

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

• Failure to File 48-Hour Notices (Finding 3) 
Draft Final Audit Report of the 

Audit Division on Weber for 

Congress 

DRAFT

(January 1, 2019 - December 31, 2020) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Campaign 

Campaign Organization 2 

Overview of Financial Activity 2 

Part III. Summaries 

Findings and Recommendations 3 

Part IV. Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 4 

Finding 2. Receipt of Contributions in Excess of the Limit 6 

Finding 3. Failure to File 48-Hour Notices 10 

DRAFT
 

 

 

 

 

 

 

1 

Part I 

Background 

Authority for Audit 

This report is based on an audit of Weber for Congress (WFC), 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 52 U.S.C. §30111(b), which permits the Commission to 

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

report under 52 U.S.C. §30104. 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. 52 U.S.C. §30111(b). 

DRAFT

Scope of Audit 

Following Commission-approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. the receipt of excessive contributions; 

2. the receipt of contributions from prohibited sources; 

3. the disclosure of contributions received from individuals; 

4. the review of 48-hour notices; 

5. the review of loans the candidate made to the committee; 

6. the disclosure of individual contributors’ occupation and name of employer; 

7. the evaluation of a daily cash analysis; 

8. the review of disbursements for personal use of funds; 

9. the review of political party contribution discrepancies; 

10. the consistency between reported figures and bank records; 

11. the completeness of records; and 

12. other committee operations necessary to the review. 
 

 

 

 

 

 

 

2 

Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Date of Registration September 14, 2011 

• Audit Coverage January 1, 2019 - December 31, 2020 

Headquarters Friendswood, Texas 

Bank Information 

• Bank Depositories One 

• Bank Accounts One checking 

Treasurer 

• Treasurer When Audit Was Conducted Robert D. Nolen 

• Treasurer During Period Covered by Audit Robert D. Nolen 

Management Information 

• Attended FEC Campaign Finance Seminar Yes 

• Who Handled Accounting and 

Recordkeeping Tasks 

Paid and Volunteer Staff 

DRAFT

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand @ January 1, 2019 $ 519,533 

Receipts 

o Contributions from Individuals 557,822 

o Contributions from Political Committees 393,957 

o Offsets to Operating Expenditures 2,586 

o Other Receipts 414 

Total Receipts $ 954,779 

Disbursements 

o Operating Expenditures 671,382 

o Transfers to Other Authorized Committees 221,620 

o Contribution Refunds 1,253 

Total Disbursements $ 894,255 

Cash on hand @ December 31, 2020 $ 580,057 
 

 

 

 

 

 

 

 

3 

Part III 

Summaries 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

During audit fieldwork, a comparison of WFC’s reported financial activity with its bank 

records revealed a misstatement of beginning cash on hand and ending cash on hand for 

calendar year 2019, as well as a misstatement of beginning cash on hand, disbursements, 

and ending cash on hand for calendar year 2020. Specifically, for 2019, WFC 

understated beginning cash on hand by $60,778, and understated ending cash on hand by 

$74,836. For 2020, WFC understated beginning cash on hand by $74,836, overstated 

disbursements by $27,632 and understated ending cash on hand by $108,650. In 

response to the Interim Audit Report recommendation, WFC corrected the public record 

for the misstated beginning cash on hand, ending cash on hand, and disbursements by 

filing Forms 99 (Miscellaneous Electronic Submission). Additionally, WFC corrected 

the public record by amending its cash balance on its most recently filed report (April 

Quarterly 2022 report filed on May 13, 2022). 

(For more detail, see p. 4.) 

DRAFT

Finding 2. Receipt of Contributions in Excess of the Limit 

During audit fieldwork, the Audit staff reviewed contributions from individuals to 

determine if any exceeded the contribution limit. This review indicated that WFC 

received apparent excessive contributions totaling $51,212. These errors occurred as a 

result of WFC not resolving the excessive portions of contributions by forwarding 

presumptive redesignation or reattribution letters to its contributors or issuing refunds of 

the excessive portions of contributions in a timely manner. In response to the exit 

conference, WFC materially resolved, albeit untimely, these excessive contributions. In 

response to the Interim Audit Report recommendation, WFC stated it did not have further 

comments on the finding. 

(For more detail, see p. 6.) 

Finding 3. Failure to File 48-Hour Notice 

During audit fieldwork, the Audit staff identified that WFC failed to file or untimely filed 

48-hour notices for 34 contributions totaling $71,300, that were received prior to the 

primary and general elections. In response to the Interim Audit Report recommendation, 

WFC reiterated it generally did not dispute that it “inadvertently did not file 48-hour 

notices for certain contributions.” WFC also filed Forms 99 (Miscellaneous Electronic 

Submission) to correct the date of receipt for one of the contributions, correcting the 

public record. 

(For more detail, see p. 10.) 
 

 

 

 

 

 

 

 

4 

Part IV 

Findings and Recommendations 

Finding 1. Misstatement of Financial Activity 

Summary 

During audit fieldwork, a comparison of WFC’s reported financial activity with its bank 

records revealed a misstatement of beginning cash on hand and ending cash on hand for 

calendar year 2019, as well as a misstatement of beginning cash on hand, disbursements, 

and ending cash on hand for calendar year 2020. Specifically, for 2019, WFC 

understated beginning cash on hand by $60,778, and understated ending cash on hand by 

$74,836. For 2020, WFC understated beginning cash on hand by $74,836, overstated 

disbursements by $27,632 and understated ending cash on hand by $108,650. In 

response to the Interim Audit Report recommendation, WFC corrected the public record 

for the misstated beginning cash on hand, ending cash on hand, and disbursements by 

filing Forms 99 (Miscellaneous Electronic Submission). Additionally, WFC corrected 

the public record by amending its cash balance on its most recently filed report (April 

Quarterly 2022 report filed on May 13, 2022). 

Legal Standard 

Contents of Reports. Each report must disclose: 

• The amount of cash on hand at the beginning and end of the reporting period; 

• The total amount of receipts for the reporting period and for the election cycle; 

• The total amount of disbursements for the reporting period and for the election cycle; 

and 

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

Schedule B (Itemized Disbursements). 52 U.S.C. §30104(b)(1), (2), (3), (4), and (5). 

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff reconciled WFC’s reported financial activity with 

its bank records for calendars years 2019 and 2020. The reconciliation determined that 

WFC’s 2019 beginning cash on hand was understated by $60,778 and the ending cash on 

hand was understated by $74,836. The cash on hand discrepancies resulted primarily 

from prior period adjustments, as well as non-material misstatements of both receipts and 

disbursements during calendar year 2019. The following chart details the 2020 

discrepancies between WFC’s disclosure reports and its bank activity. 

DRAFT

2020 Campaign Activity 

Reported Bank Records Discrepancy 

Beginning Cash on hand @ 

January 1, 2020 

$594,325 $669,162 $74,836 

Understated 

Receipts $531,226 $538,515 $7,289 
 

 

 

 

 

5 

2020 Campaign Activity 

Reported Bank Records Discrepancy 

Understated 

Disbursements $655,252 $627,620 $27,632 

Overstated 

Ending Cash on hand @ 

December 31, 2020 

$471,4072 $580,057 $108,650 

Understated 

The 2020 understatement of receipts resulted from the following: 

• Contributions from individuals not reported $3,859 

• Contributions from political committees not reported 3,300 

• Contributions from individuals reported not supported by bank deposit (2,030) 

• Offsets to operating disbursements reported not supported by bank deposit (600) 

• Offsets to operating disbursements not reported 1,824 

• Interest income not reported 88 

• Refunds to individuals reported as negative receipts 1,500 

• Unexplained differences (652) 

Net Understatement of Receipts $7,289 

DRAFT

The 2020 overstatement of disbursements resulted from the following: 

• Credit card processing fees not reported $442 

• In-kind contributions not reported as disbursements 57 

• Contributions to political committees not reported 2,000 

• Disbursements not reported 330 

• Credit card processing fees reported that did not clear the bank (10) 

• Disbursements reported that did not clear the bank (28,392) 

• 2019 Disbursements reported in 2020 (2,065) 

• Unexplained differences 6 

 Net Overstatement of Disbursements ($27,632) 

The $108,650 understatement of the ending cash on hand was a result of the reporting 

discrepancies described above. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter during the exit conference with WFC 

representatives and provided schedules detailing the misstatements of financial activity. 

WFC inquired as to when the Commission prefers the amendments be filed. The Audit 

staff advised WFC representatives that the amendments could be filed at any time. 

In response to the exit conference, WFC stated it did not dispute the cash on hand and 

disbursement amounts were “inadvertently misreported” and that it will file a Form 99 to 

2 The reported 2020 ending cash on hand does not equal reported beginning cash on hand plus reported 

receipts minus reported disbursements. This was due to a mathematical discrepancy in which the 

reported ending cash on hand for the 2020 April Quarterly Report did not equal the reported beginning 

cash on hand for 2020 July Quarterly Report. 
 

 

 

 

 

 

 

 

6 

DRAFT

address the misstatements.3 The Audit staff noted that to date WFC had not filed a Form 

99. 

The Interim Audit Report recommended that WFC amend its disclosure reports or file a 

Form 99 (Miscellaneous Electronic Submission)4 to correct the misstatements noted 

above and to reconcile the cash balance on its most recently filed report to include these 

adjustments and correct any subsequent discrepancies. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, WFC corrected the public 

record for the misstated beginning cash on hand, ending cash on hand, and disbursements 

by filing Forms 99.5 Additionally, WFC corrected the public record by amending its cash 

balance on its most recently filed report (April Quarterly 2022 report filed on May 13, 

2022). 

Finding 2. Receipt of Contributions in Excess of the Limit 

Summary 

During audit fieldwork, the Audit staff reviewed contributions from individuals to 

determine if any exceeded the contribution limit. This review indicated that WFC 

received apparent excessive contributions totaling $51,212. These errors occurred as a 

result of WFC not resolving the excessive portions of contributions by forwarding 

presumptive redesignation or reattribution letters to its contributors or issuing refunds of 

the excessive portions of contributions in a timely manner. In response to the exit 

conference, WFC materially resolved, albeit untimely, these excessive contributions. In 

response to the Interim Audit Report recommendation, WFC stated it did not have further 

comments on the finding. 

Legal Standard 

A. Authorized Committee Limits. For the 2020 election, an authorized committee may 

not receive more than a total of $2,800 per election from any one person or $5,000 

per election from a multicandidate political committee. 52 U.S.C. §§30116(a)(1)(A) 

and (a)(2)(A); 11 CFR §§110.1(a) and (b) and 110.9. 

B. Handling Contributions That Appear Excessive. If a committee receives a 

contribution that appears to be excessive, the committee must either: 

• Return the questionable check to the donor; or 

• Deposit the check into its federal account and: 

 Keep enough money in the account to cover all potential refunds; 

 Keep a written record explaining why the contribution may be illegal; 

3 WFC also provided clarification for two receipts, which the Audit staff confirmed, though WFC’s 

receipts were not materially misstated. 4 WFC was advised by the Audit staff that if it chose to file a Form 99, instead of amending its disclosure 

reports, the form must contain all pertinent information that is required on the schedule. 5 WFC filed two Forms 99 on April 18, 2022. 
 

 

 

 

7 

 Include this explanation on Schedule A if the contribution has to be 

itemized before its legality is established; 

 Seek a reattribution or a redesignation of the excessive portion, following 

the instructions provided in the Commission regulations (see below for 

explanations of reattribution and redesignation); and 

 If the committee does not receive a proper reattribution or redesignation 

within 60 days after receiving the excessive contribution, refund the 

excessive portion to the donor. 11 CFR §§103.3(b)(3), (4) and (5) and 

110.1(k)(3)(ii)(B). 

C. Joint Contributions. Any contribution made by more than one person (except for a 

contribution made by a partnership) must include the signature of each contributor on 

the check, money order, or other negotiable instrument or in a separate writing. A 

joint contribution is attributed equally to each donor unless a statement indicates that 

the funds should be divided differently. 11 CFR §110.1(k)(1) and (2). 

D. Reattribution of Excessive Contributions. The Commission regulations permit 

committees to ask donors of excessive contributions (or contributions that exceed the 

committee’s net debts outstanding) whether they had intended their contribution to be 

a joint contribution from more than one person and whether they would like to 

reattribute the excess amount to the other contributor. The committee must inform 

the contributor that: 

• The reattribution must be signed by both contributors; 

• The reattribution must be received by the committee within 60 days after the 

committee received the original contribution; and 

• The contributor may instead request a refund of the excessive amount. 11 

CFR §110.1(k)(3). 

Within 60 days after receiving the excessive contribution, the committee must either 

receive the proper reattribution or refund the excessive portion to the donor. 11 CFR 

§§103.3(b)(3) and 110.1(k)(3)(ii)(B). Further, a political committee must retain 

written records concerning the reattribution in order for it to be effective. 11 CFR 

§110.1(l)(5). 

Notwithstanding the above, any excessive contribution that was made on a written 

instrument that is imprinted with the names of more than one individual may be 

attributed among the individuals listed unless instructed otherwise by the 

contributor(s). The committee must inform each contributor: 

• How the contribution was attributed; and 

• The contributor may instead request a refund of the excessive amount. 11 

CFR §110.1(k)(3)(B). 

E. Redesignation of Excessive Contributions. When an authorized candidate 

committee receives an excessive contribution (or a contribution that exceeds the 

committee’s net debts outstanding), the committee may ask the contributor to 

DRAFT
 

 

8 

redesignate the excess portion of the contribution for use in another election. The 

committee must inform the contributor that: 

• The redesignation must be signed by the contributor; 

• The redesignation must be received by the committee within 60 days after the 

committee received the original contribution; and 

• The contributor may instead request a refund of the excessive amount. 11 

CFR §110.1(b)(5). 

Within 60 days after receiving the excessive contribution, the committee must either 

receive the proper redesignation or refund the excessive portion to the donor. 11 CFR 

§§103.3(b)(3) and 110.1(b)(5)(ii)(A). Further, a political committee must retain 

written records concerning the redesignation in order for it to be effective. 11 CFR 

§110.1(l)(5). 

When an individual makes an excessive contribution to a candidate’s authorized 

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

general election if the contribution: 

• Is made before that candidate’s primary election; 

• Is not designated in writing for a particular election; 

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

• As redesignated, does not cause the contributor to exceed any other contribution 

limit. 11 CFR §110.1(b)(5)(ii)(B)(1)-(4). 

The committee is required to notify the contributor of the redesignation within 60 

days of the treasurer’s receipt of the contribution, and must offer the contributor the 

option to receive a refund instead. 

Facts and Analysis 

A. Facts 

1. Facts 

The Audit staff utilized sample testing to identify apparent excessive contributions 

from individuals, as noted below. 

DRAFT

Excessive Contributions - Testing Method 

Sample Projection Amount6 $51,212 

Total Amount of Excessive Contributions $51,212 

Reason for Excessive Contributions 

Contributions not resolved via presumptive 

letter or refund $51,212 

Total Amount of Excessive Contributions $51,212 

6 The sample error amount ($51,212) was projected using a Monetary Unit Sample with a 95 percent 

confidence level. The sample estimate could be as low as $33,614 or as high as $68,810. 
 

 

 

 

 

 

 

9 

Excessive Contributions - Testing Method 

2. Additional Information 

WFC did not maintain a separate account for questionable contributions. However, 

based on its cash on hand at the end of the audit period, it appears that WFC did 

maintain sufficient funds to refund the apparent excessive contributions. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter with the WFC representatives during the exit 

conference and provided a schedule of the apparent excessive contributions. WFC 

representatives asked questions regarding the presumptive reattribution and/or 

redesignation letters that could be issued. The Audit staff explained that presumptive 

letters sent in response to the exit conference would resolve the excessive contributions, 

albeit untimely. Additionally, the Audit staff notified WFC representatives that the errors 

presented were based on a sample review and WFC should review its receipts database 

for the audit period to identify any additional excessive contributions. 

In response to the exit conference, WFC stated it did not dispute that it “inadvertently did 

not issue presumptive redesignation and reattribution letters for certain contributions that 

were otherwise in excess of the per-election amount limitations.” In response to the exit 

conference, WFC also submitted presumptive letters that were sent to all contributors 

identified by the Audit staff: 

DRAFT

Corrective Action Taken by Committee – Excessive Contributions 

Dollar Amount of Presumptive Letters Sent – Untimely $34,200 

In addition, WFC reviewed its contribution records and identified an additional ten 

excessive contributions. WFC sent presumptive letters to these contributors for 

contributions totaling $33,600 as well and submitted them to the Audit staff for review. 

The Audit staff determined that, of the additional presumptive letters sent to contributors 

totaling $33,600, WFC resolved an additional $14,000 in excessive contributions, albeit 

untimely. As such, WFC provided evidence that it sent more presumptive letters to 

contributors, in response to the audit, than as identified in the audit. All of the 

presumptive letters provided to the Audit staff were dated December 18, 2021. The 

Audit staff concluded WFC materially resolved the excessive contributions, albeit 

untimely. 

The Interim Audit Report recommended that WFC provide any additional comments it 

deemed relevant to this matter. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, WFC stated it had no further 

comments on the finding. 
 

 

 

 

 

 

 

10 

Finding 3. Failure to File 48-Hour Notices 

During audit fieldwork, the Audit staff identified that WFC failed to file or untimely filed 

48-hour notices for 34 contributions totaling $71,300, that were received prior to the 

primary and general elections. In response to the Interim Audit Report recommendation, 

WFC reiterated it generally did not dispute that it “inadvertently did not file 48-hour 

notices for certain contributions.” WFC also filed Forms 99 (Miscellaneous Electronic 

Submission) to correct the date of receipt for one of the contributions, correcting the 

public record. 

Legal Standard 

Last-Minute Contributions (48-Hour Notice). Campaign committees must file special 

notices regarding contributions of $1,000 or more received less than 20 days but not more 

than 48-hours before any election in which the candidate is running. This rule applies to 

all types of contributions to any authorized committee of the candidate, including: 

• Contributions from the candidate; 

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

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

Facts and Analysis 

A. Facts 

During audit fieldwork, the Audit staff identified 63 contributions which totaled 

$138,800 that equaled or exceeded $1,000 and that required a 48-hour notice. A review 

of these contributions indicated that WFC did not file 48-hour notices for 18 

contributions totaling $37,700 (including one $2,000 contribution disclosed as $1,000) 

and untimely filed 48-hour notices for 16 contributions totaling $33,600. These 

contributions are summarized below. 

DRAFT

Primary General Total 

48-Hour Notices – Not Filed $6,000 $31,700 $37,700 

48-Hour Notices – Filed Untimely $12,100 $21,500 $33,600 

TOTAL $18,100 $53,200 $71,300 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter during the exit conference with WFC 

representatives and provided a schedule of the contributions for which 48-hour notices 

were not filed or filed untimely. WFC representatives did not provide any comments. 
 

 

 

11 

In response to the exit conference, WFC stated it did not dispute that it “inadvertently did 

not file 48-hour notices for certain contributions” and that one contribution totaling 

$2,800 was timely filed, however, it was filed with an incorrect contribution receipt date 

on its quarterly report and 48-hour notice. After consultation with the Reports Analysis 

Division, the Audit staff accepted WFC’s explanation and did not include this 

contribution totaling $2,800 in the violation amount of the finding. WFC stated it would 

file a Form 99 to correct the remaining reporting errors. The Audit staff noted that to 

date WFC had not filed a Form 99. 

The Interim Audit Report recommended that WFC submit documentation demonstrating 

that the 48-hour notices for the contributions in question were timely filed; the 

contributions were received outside of the 48-hour notice reporting period; or provide any 

additional comments it deemed necessary with respect to this matter. WFC should have 

also amended its Schedule A (Itemized Receipts) or filed a Form 99 (Miscellaneous 

Electronic Submission)7 to correct the misreported date for one contribution totaling 

$2,800. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report recommendation, WFC reiterated it generally did 

not dispute that it “inadvertently did not file 48-hour notices for certain contributions.” 

The Audit staff acknowledged the statement. WFC also filed Forms 998 to correct the 

date of receipt for one contribution totaling $2,800, correcting the public record. 

DRAFT 7 See supra footnote 4. 8 See supra footnote 5.