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FEDERAL ELECTION COMMISSION

\\'~SHI'Cl0~.D.C. ~04b3

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MEMORANDUM

June 18, 1985

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TO:

FROM:

SUBJECT:

FRED S. EILAND

PRESS OFFICER

ROBERT J. COSTA

ASSISTANT STAFF D

AUDIT DIVISION

PUBLIC ISSUANCE OF FINAL AUDIT REPORT - DALLAS WELCOMING COMMITTEE

Attached is a copy of the final audit report of Dallas

Welcoming Committee which was approved by the Commission on June

3, 1985.

Informational copies of the report have been received by all

o parties involved and the report may be released to the public.

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Attachment as stated

cc: FEC Library

RAD .

~c Record

Office of General Counsel
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FEDERAL ELECTION COMMISSION

FINAL REPORT OF THE AUDIT DIVISION

ON THE

DALLAS WELCOMING COMMITTEE

I. Background

A. Overview

This report is based on an audit of the Dallas

Welcoming Committee ("the Committee"), the host committee for the

1984 Republican National Convention, to determine whether there

has been compliance with the provisions of the Federal Election

Campaign Act of 1971 as amended ("the Act"). The audit was

conducted pursuant to 11 C.F.R. S 9008.9 which states, in part, that the Commission shall conduct an examination and audit of

each host committee.

The Committee registered with the Federal Election

Commission on August 31, 1983 as a non-partisan corporation to

act as the host comittee for the 1984 Republican National . Convention. The Committee maintained its headquarters in Dallas,

Texas. The audit covered the period April 27, 1983 through October 2, 1984, the date of t~,e latest report on file at the

Commission at the time of the audit. In addition, certain

activity was reviewed through December 17, 1984. During the

period, the Committee reported a beginning cash balance of $-0-,

total receipts of $411,872.16, total disbursements of $351,497.68

and an ending cash balance on October 2, 1984 of $60,374.48.

This audit report is based on documents and working

papers which support each of its factual statements. They form

part of the record upon which the Commission based its decisions

on the matters in this report and were available to Commissioners

and appropriate staff for review.

B. Key Personnel

The Treasurer of the Committee during the period

audited was Mr. William L. Schilling.

C. Scope

The audit included such tests as verification of total

reported receipts and disbursements and individual transactionsJ

review of required supporting documentationJ an analysis of

Committee debts and obligations, review of contribution and

expenditure limitations, and such other audit procedures as

deemed necessary under the circumstances.
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II. Audit Finding and Recommendation

Itemization of Expenditures

Section 437 of Title 2 of the United States Code

states, in part, that each committee which represents a national

political party in making arrangements for the convention of such

party held to nominate a candidate for the office of President or

Vice President, shall, within 60 days following the end of the

convention, file with the Commission a full and complete financial statement, in such form and detail as it may prescribe, of the sources from which it derived its funds, and the purpose for which such funds were expended.

Under 11 C.F.R. S 9008.12(a) (2), each committee

required to register under 11 C.F.R. 9008.12(a) (1) (i) shall file

a post convention rep~rt with the Commission FEC Form 4.

The Dallas Welcoming Committee operated in conjunction with the Dallas Chamber of Commerce. The Chamber of Commerce

paid Committee related invoices and subsequently billed the

Committee for the payments made on its behalf. The Committee

then issued a check made payable to the ~hamber of Commerce for

the invoiced amount•

The disclosure reports filed by the Committee itemize

the lump sum payments made by the Committee to the Chamber of

Commerce and not the payments to the persons actually providing the goods or services to the Committee. A Committee internal

report attached to each of the four reports filed, groups the

expenditures into specific categories such as salaries,

operational costs, public relations, etc.

A review of the Committee's disbursement records

disclosed that the Committee paid $317,264.03 to the Chamber of

Commerce during the period audited.

At the exit conference, Committee representatives explained that they believed that the reports filed for

expenditures made satisfied the disclosure requirements of the

Act.

In the interim audit report, the Audit staff

recommended that the Committee file a comprehensive amendment

properly itemizing the name and address of each person to whom an

expenditure in the aggregate amount or value in excess of $200

within the calendar year was made, together with the date, amount

and purpose of such expenditure. On May 28, 1985 the Committee

filed amendments properly itemizing the expeditures.

Recommendations

The Audit staff recommends no further action on this matter.