Draft Final Audit Report of the 

Audit Division on 

Obama for America 

(January 16, 2007 - December 31, 2008) 

Why the Audit 

Was Done 

Federal law permits the 

Conmiission 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 conmiittee 

appears not to have mej 

the threshold 

requirements for 

substantial compliance^ 

with the Actjjik&audit 

determine 

commwe complied^ 

the MflniDns, 

prohibiti^nnd 

disclosure fS|Q|pments 

ofthe Act. 

Future Actioi 

The Commission m ^ 

initiate an enforcement 

action, at a later time, 

with respect to the matter 

discussed in this report. 

About the Campaign 

Obama for America (OFA) is thg^Kicipat campaign committee for 

Barack Obama, a candidate foj^^^mocratic Party's nomination for 

the office of President of tl^dpnitea^^es. OFA is headquartered in 

Chicago, Illinois. For mflrewormanoMhee the chart on the Campaign 

Organization, p. 2. 

Financial Ai 

• Receipts 

o distributions frdl 

o l«||yautions from^ 

jitiMH|yunittees 

o Trj^fer^WB||||[|yfe^yi5ed 

Comipees 

o OffseKto OperatRig 

Expen^ures 

o Other R«$t s 

DismlRSIhents 

Operating Expenditures 

'ontribution Refimds 

Other Disbursements 

Total Disbursements 

$ 664,642,527 

14,075 

86,950,000 

25,131,132 

1,675,373 

$ 778,413,107 

$ 706,559,330 

5,756,081 

47,944,663 

$ 760,260,074 

Finding and Recommendation (p. 3) 

• Apparent Failure to File 48-Hour Notices 

2 U.S.C. §438(b). 
Draft Final Audit Report of the 

Audit Division on Obama for 

America 

(January 16, 2007 - December 31, 2008) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 

Scope of Audit 

Part II. Overview of Campaign 

Campaign Organization 

Overview of Financial Activity 

Part III. Summary 

Finding and Recommendation 

Part IV. Finding and Recomi 

Apparent Failure to File 48-Hour Notices' 
Part I 

Background 

Authority for Audit 

This report is based on an audit of Obama for America (OFA), imdertaken by the Audit 

Division ofthe Federal Election Commission (the Commission) in accordance with the 

Federal Election Campaign Act of 1971, as amended (the Act). Tj^Audit Division 

conducted the audit pursuant to 2 U.S.C. §438(b), which permil^?^mmission to 

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

report under 2 U.S.C. §434. Prior to conducting any audtidmcRna^ subsection, the 

Commission must perform an intemal review of reports ^sd bv sMtted committees to 

determine if the reports filed by a particular commjt^Rliget the threHMd requirements 

for substantial compliance with the Act. 2 U.S.( 

Scope of Audit 

Following Commission-approved procedures, the 

factors and as a result, this audit exaitined: 

1. the receipt of excessive contributi 

the receipt of contributions from pn 

the disclosure of contributions receivi 

the disclosure of indivi^ial contributoi 

the consistency bi 

the completenei 

other committee lew. 

ff evaluated various risk 

name of employer; 

ords; 
Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Dateof Registration January 16,2007 

• Audit Coverage January 16,2007 - December 31,2008 

Headquarters Chicago, Illinois^ jli ^ 

Bank Information 

• Bank Depositories Four j^ft k 

• Bank Accounts Sixteen 4t[ """^^^l^. 

Treasurer 

• Treasurer When Audit Was Conducted MadmnS^esbitt Mav^||g007 - Present 

• Treasurer During Period Covered by Audit Jj^ert R. l^uer Januarv'm^Qfliy - May 

'Plj^^^Pj^ . Nesbit ijno , 2007 

Management Information 

• Attended FEC Campaign Finance SeiHi|L Yes 

Recordkeeping Tasks 

Ovej of Ffl 

Ldited 

inciaiirActivity 

Lounts) 

Cash-on-liand ® January^||gffl^|^^|,g^ f r % 0 

Receipts j """I'l H||^ ^^^| ^ ^||||yF 

o Contri^#5hs from^Hii(^|^dua!lW||||^ 664,642,527 

o Conjjii^^ns from OtH^^litic^lfc ^ 

14,075 

o Transfers St^|AuthorizedB>mmittees 86.950.000 

o Offsets to Op^jhoe Expewtures 25.131,132 

o Other Receipts ^'Jfck 1.675.373 

Total Receipts $ 778,413,107 

Disbursements ^ 

o Operating Expenditures 706.559.330 

o Contribution Refunds 5,756,081 

o Other Disbursements 47.944,663 

Total Disbursements $ 760,260,074 

Casli-on-hand @ December 31,2008 $ 18,153,033 

^ Originally registered as the Obama Exploratoiy Coinmittee, headquartered in Washington, DC; the committee's name was 

changed to Obama for America and the headquarters was relocated to Chicago, Illinois, according to an amended statement of 

organization filed on February 12,2007. 
Part III 

Summary 

Finding and Recommendation 

Apparent Failure to File 48-Hour Notices 

Based on audit fieldwork, OFA did not file required 48-hour notices for 1,312 

contributions totaling $ 1,972,266 received prior to the general dn^ . In response to 

the Interim Audit Report, OFA stated that it had no fiirther infiftation to add at this 

time. 

(For more detail, see page 4.) 
Part IV 

Finding and Recommendation 

Apparent Failure to File 48- Hour Notices 

Summary 

Based on audit fieldwork, OFA did not file required 48-hour notices for 1,312 

contributions totaling $ 1,972,266 received prior to the general election. In response to 

the Interim Audit Report, OFA stated that it had no further infqpiSliBn to add at this 

time. 

Legal Standard 

Last-Minute Contributions (48-Hour Notice). Ca[A|i^commifl^^must file special 

notices regarding contributions of $1,000 or mor^^eived less than zimys but more 

than 48 hours before any election in which the^mdidate i^running. Thi^l^pplies to 

all types of contributions to any authorized comrRhe of tnsandidate. 11 

§ 104.5(f). 

Facts and Analysis 

A. Facts 

During audit fieldwork, a comparison w 

contributions of $ 1000 

notice filing period.^«liis re 

which OFA failed^£^^k^e re 

arose from a transfer r^Bled 

a joint flmdraMMHMyajmmr 

Committg^fflf^i^^trib 

discloMe reports fii 

and^^fefir 23. 

hour notices filed to 

hich had B|^reporte^Eceived during the 48-hour 

identifiedlk312 contnbutions totaling $1,972,266 for 

ed notices, ^majority of the missing 48-hour notices 

ber 24,2|(8 from the Obama Victory Fund (OVF), 

ts were OFA and the Democratic National 

attribute? to the October 24 transfer were traced to the 

that they had been received between October 16 

B. Tntgrimiroiit Report Bi Audit Division Recommendation 

Prior to the eiK^nidit fijRwork, and again at the exit conference. Audit staff provided 

OFA with schedui^^^mtributions for which 48-hour notices were not filed. At the 

exit conference, the representative stated that the schedule was being reviewed and 

that comments or co^ections would be forthcoming. 

Subsequent to the exit conference, the OFA provided copies of what it believed were the 

complete batches for each of its seventeen 48-hour notice submissions. Some of the 

batches contained contributions not found among the contributions listed on the public 

record. The difference between the sum ofthe batch totals and the total for all 48-hour 

notices appearing on the pubUc record was approximately $1,020,000. Records regarding 

^ The 48-hour report period ran from October 16'* through November 1' 
these submissions indicate that the Commission placed all the data transmitted on the 

public record. Further, there are no filters in place that would restrict any data submitted. 

Since the Audit staff has been assured that all data submitted is routinely posted to the 

public record, OFA was asked whether some filter might have been inadvertently applied 

by its data processing vendor. No response to this query has been received from OFA to 

date. 

filed 

The Audit staff recommended that OFA provide: 

• documentation to demonstrate that the 48-hour notices 

for the contributions in question; or, 

• documentation establishing the contributions were ijg^i^ject to 

48-hour notification; and/or, 

any written comments it considers relevant 

C. Committee Response to Interim Audit Rej 

In response to the Interim Audit Report, 0¥i 

add at this time. 

ation to