Part I
Background

Authority for Audit

This report is based on an audit of Matsunaka for Congress, 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 this audit examined:

The receipt of excessive contributions and loans.

The receipt of contributions from prohibited sources.

The disclosure of contributions received.

The consistency between reported figures and bank records.

The completeness of receipt records.

Other committee operations necessary to the review.

Aww

Changes to the Law

On March 27, 2002, President Bush signed into law the Bipartisan Campaign Reform Act of
2002 (BCRA). The BCRA contains many substantial and technical changes to the federal
campaign finance law. Most of the changes became effective November 6, 2002. Except
for November 7, 2002 through December 31, 2002. the period covered by this audit pre-
dates these changes. Therefore. the statutory and regulatory requirements cited in this report
are primarily those that were in effect prior to November 7, 2002.




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Table of Contents

Part I. Background
Authority for Audit
Scope of Audit

Changes to the Law

Part Il. Overview of Campaign
Campaign Organization

Overview of Financial Activity

Part II. Findings and Recommendations


Part II

Overview of Campaign

Campaign Organization

Important Dates

Matsunaka for Congress

. Date of Registration

February 28, 2002

e Audit Coverage

February 27. 2002 — December 31. 2002

Headquarters

Loveland. Colorado

Bank Information

. Bank Depositories

e Bank Accounts

2
2 checking accounts

Treasurers

¢ __ Treasurer When Audit Was Conducted

David J. Rostici

* Treasurer During Period Covered by Audit

David J. Rostici

Management Information

. Attended FEC Campaign Finance Seminar

No

e@ Used Commonly Available Campaign
Management Software Package

Yes

. Who Handled Accounting. Recordkeeping
Tasks and Other Day-to-Day Operations

Paid Consultant


FEDERAL ELECTION COMMISSION
Washington, DC 20463

October 1, 2003

MEMORANDUM

TO: RON M. HARRIS
PRESS OFFICER
PRESS OFFICE

4
FROM: JOSEPH F. STOLTZ |[7 G
ASSISTANT STAFF JMRECTOR
AUDIT DIVISION |

SUBJECT: | PUBLIC ISSUANCE OF THE AUDIT REPORT ON MATSUNAKA FOR
CONGRESS

Attached please find a copy of the audit report and related documents on
Matsunaka for Congress, which was approved by the Commission on September 25, 2003.

The report may be released to the public on October 1, 2003.

Attachment as stated

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


to

Overview of Financial Activity

(Audited Amounts)
Cash on hand @ February 27, 2002 $0
Receipts
o__ From Individuals $568.624
o From Political Committees 4,908
co From Other Political Committees 388.973
o Offsets to Operating Expenditures 360
o Other Receipts 2.517
o Total Receipts $965,382
Disbursements
o Operating & Other Disbursements $965.688
o__ Total Disbursements $965,688
Cash on hand @ December 31, 2002 $(306)

Part III
Summaries

Findings and Recommendations

Based upon our examination of the reports and statements filed, and the records presented
by Matsunaka for Congress, no material non-compliance was discovered.


Report of the Audit Division on

Matsunaka for Congress
February 27, 2002 - December 31, 2002

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.! 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.

About the Committee (p. 2)

Matsunaka for Congress is the principal campaign committee for Stan
Matsunaka, Democratic candidate for the U.S. House of
Representatives from the state of Colorado. 4" District. and is
headquartered in Loveland, Colorado. For more information, see the
chart on the Campaign Organization, p.2.

Financial Activity (p. 3)

e Receipts
o From Individuals $568,624
o From Political Committees 4,908
o From Other Political Committees 388.973
o Offsets to Operating Expenditures 360
o Other Receipts 2,517
co Total Receipts $965,382
e — Disbursements
o Operating & Other Disbursements $965.688
co Total Disbursements $965,688

Findings and Recommendations (p. 3)

Based upon our examination of the reports and statements filed. and the
records presented by Matsunaka for Congress, no material non-
compliance was discovered.

2 U.S.C. $4381)


Report of the
Audit Division on the
Matsunaka for Congress

February 27, 2002 - December 31, 2002