1. B.:lckqrounc1

REP01{'l' OF THE AUDIT DIVrSTC1l'·!

ON TIlE

vms'r VTRGTNIA REPUBLICAN STATF. EXECUTIVE Cm1MITTEE

1\.", t- "n:111 w.

\ \. \ -.111'1 •II I'\; III . 21l·hd

HDERAI HECTION COMMISSION

1\.• Overview

1.1 mhe opcnin9 c.:lsh b'llnncc ""as oVt~rstatec1 ~34, 000.00, total

receipts were overstated n net amount of 550.00, nnd total

expenditures were understated a net amount of 8283.40.

(Refe1~ to par.:1CJ1~'lphs 1\ Elnd B of this report) .

'j'he Commi th'e reqistered wi th the Feder.. ] Election

Cr;::l:nission on ()ctobt~l' 25, 1977 as n Stnte COl:\mittee of the

:::o:nlb1ican Part" of '''cst Virqini... 'T'he Committee rnnintains its

::..:'~dc;u.:1rh~rS in·Ch:11-1oston, '-':-est Virginia.

The nucli t covered the period from October 16, 1977

ti'.rouqh C1ctobcr 23, 1978, the final COVel~El(TC (late of the most

rl'c:cnt l"0port filed by the Committee at the time of the audit.

T:'.e Commi ttee rcporb.'d an opcninq cnsh ba1.:1ncc on October 16, 1977

of S37,707.53, totnl receipts for the period of SQ2,873.88

total expenditures for the period of S93,467.98 and a closing

c.::sh bal.:lnc(: on ()ctoh~~r 23, 1978 of ~n,ll·l.OO. l/

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This report is based on an audit of the West Virqinia

!\cpublic;ln State Executive ('ommittee ("the Committee"), undertaken

})".: the l\ndi t Division of the Federal El ection Commission in

.:l~cord.:lnce with the Commission's audit policy to determine whether

there has been compli.:lnce with the provisions of the Federal

t::loction campaign l\.ct of 1971, as amended (lithe Act"). "'he

Audit was conducted pursuant to Section 438(,,) (8) of Title 2

0: thl"! Unj ted States Code '''hi ch directs t.he C'ommiss i on to make

~rom time to time audits and field investiq:ltions with respect

te. reports nnd stal:C'mt~nts filed under the provisions of the l\ct.

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'I'his iludi t roport is based on clocumcll h; nnd wod; i n9

papers \VII i ch support ench of the factual statcml'nb'l. '1'hey form

part of the record upon which the Commission based its deci.sions

on the mi11: tcrs in the report and were available to Commis~.ioners

and .:lppropl".i.ate staff for revic\v.

B. Koy Personnel

The principal officers of the Committee from the

date of inception through July 8, ]978 were Mr. Cleveland K.

Benedict, Chairmnn and Mr. RImer II. Dodson, Treasurer. The

principal offic(!rs for the period ,July 8, 1978 through October 23,

1978, the final coverage date of th~ audit, were Mr. John F.

HcCtw].:oy, Chairllldn and-Mr. Ronald G. Pearson, 'T'reasurer.

'1'he audit included such h'~ts as verification of total

rc;'ortcc1 receipt.s and C'xJl('llditurc~~ ,md individu,ll transnctionsi

1"0\'.1.::\"/ of rc!quired SUPPOI-\: i IH1 c10CI11l1l'ntation and analysis of

COl'1mittec' debts and obl iq'lt-.i.ons; .• 1111 such othel" iludit proceduro~

i1S c1c'emcd necessilry und.!I" the cj rCllm~l tances.

It is th(~ opinion of thf'l i\wl i I: st.:lff, bilse(l upon exnmin,-ltion

of: the rc.'!lorts ,tntl stutelll(~llls fi]('d ,tnll the rc~cords preSt~nte<1, t11,l1:

except r.yc th0. dC'f.icicnci0s 11()!:t'<l b('lo\;1, the roports and StCltcmcnts of 1:1H' \\'est VirginLl Hc.'!Jubli(·,m State Executive Committ<,(,

fi1irly prc:senl: the fin.:ll1ciill .•ctivit:ies of the Committee for

the period covered by thc! audi t. Fur.thor, except as noted below,

no TI1uter.L:ll. problems in complyil1q \vi I:h the Pedern] Election

Ci1mpul.ql1 i\ct \vC're d iscovc'n--d dlll"j nq the course of the audit.

;'l-·ct:.ions ·134 (h) (B), anl1 (11) of Ti.tle ~~ of the ITnib'd

Stut..-.. ~~ r.'l)i!r.· n:-quire tlK' llisclosun' or the toti11 r·ium of all rc~L~.'i!'Ls

.• nd <':·:[)"ndi tun~s durjnq tho c.:llenc1'lr '{C'ar.

rt \vil.S c1ctermi no(l thut bookkec.'pinq ('lTOrS resultC'd

in ;, n.--·\· ()VC'rsl:iltement of tota] n'ceipts of 550.00 i1nc1 tot~ll

l':-::~l:':~d i (:111'(':; of $:nn. ·10. 7\:';':1 n_--r;ul t:, the endinq balunce of.

C"S:, nn h.lJ1d \\';)S unc1L--rst.• te(l a net t:otal of S233.40 •
1~ .. ·\', 1!1i1!1(~nc.1il tj on

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Disclosure of Ce:t~h on Himd

'l'lli!~ l:l'-lt:t:i~l' \',',1:: .)!'ill;n;lll',' 1','f"lT"c1 to I-he\ l'udit: jljv.i:-dnn

i!. I 'nil i \I net, inn \',' i t 11 ~,1l' ,• 7:' ~.

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H'-lsc'c1 upon the l\uclit :~t:;lff's rcc('lmm(~n(l<lt:ion, the ('()mmittec~

fi 1,,11 .:l comprehe'11"lve .:lmC'ndl:li·tll', nn .-Tunc 4, 1<)79 COlTc'Ct,illG the

(,',:1:;1\ on h.,nd tot'11 .,t: the' tim(~ of reqistr"tion i1nc] c]jsclosinq

\-h.' :~()\,Il"ce of the caHh. 'I'hl'n~fClI'C', no further i1ction is

l"(\\ '( ':'1:1\, ·n(!c~d •

'I'he Committee nffic.:i"ls sta!:l~d thi1t, the overstatemc.'nt

':,';1:; 'IIC! rc:su 1. t ('l f ,1 bon}:kl" 'P i r~q 01T01" th.-l t h,,<1 hocm corn~ct<'d 011

Lh .. · I','conls.

l\ revimv of the b;ll)}: n~core15 iln<l cl.i sclosun~ rl"pClI-t::~

l·(.v.-·.-l1c:cl thilt the cilsh on lwnc1 Dnl.:lncl:') of $·~,509.09 at the time·

of t"I''1istrntion \';<1S elisclo:,c'cl us ~37,707.53. 'rhis r('sllltl'c.1 in

.:In nvc'rstatcment of beqinn.inq ci1sh on h.:md of $311,1<)8.44. 'l./

/\clclit'ionnllv, the source~ of c,lsh on h,11lc1 nt t.he time a!: r0clintri1-

tinn had noi been di~closcc1.

Section 434(b) (]) of Title 2 of the United Sti1te~

Cnc1C' rc:qui res the c1i~closur0 of ca"h on hand at the bc·ctinni nq

of tIle' rcportinq period. Tn ;t<1c.1ition, SC'ction 104.10 of 'T'itlcll,

Coel .... n[ Felleral H('qulatiom: :-;! dte)S, i.n p"rt, thnt pol i tical com·-

Illi tl.'es which h.:lve c.:lsh on 1V1JIC1 at the time of re'1i:=;! l':ltion (which

the' cnmmittee e:tnticipatc~ u~inq .in i1n e]0ct:ion) Sil1111 (li;.;clo~e nn

th0ir. first report the sourcl'(s) of these funds, includinq the

,inflll.·mnt:i.on required by Spct'i()n~ 104.2. '!'hc Cil:=;h h;11ance~ are

,ls~:lml('(l to he comr1oseel of. t h():~(' contri hlltions most recently

l"C'c.-:ivc'el by the commitl:ee. '!'h(~ commj tt.C'e sh"l 1 exclude! fl"Om

funds 1:0 be usexl for Feeler.., 1 (' tect.ions any contri hut:ions not pC'1--

l~l'i n~: i hle under the l\ct.

n"lsed upon till' i\ucli t stuff' s reeomlllc~nc1i1tion, thc' Comlllittl~e

[j h·d n comprehen::ivl! i1mendmC'nt on .1tme 4, 1979 corre-ctincj t11C'

oriqilld1 report t.otals. 'r'hernfor,0, no further action is

rccoJlllllcnded.

The Treasurer \ola~ aware that the? disclosed C'dnh b.,l"lIlc(~s

\Il(~t-,' not in agreem()nt with the actual cnsh on hand. i\ceord,i nq t:o

th.' "'rna~urer thi~ was the resul t of hookkeepinq d iscn~punci llS ",uch"

by cI for.mer emp1oyC'0.. Specific informution concer.ni \lI1 the ('ITor:=;

Will-: not avail able.

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P 1"(.~sC'r':'~ __ -._0- ._.____ ,. ; ":._..(. r....l·':·:n0rid __' __.i tu,"es. ,. .

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n;l~l\··d ll!)l)!1 t:Jw i\lhl.iL st.'lff's rl~C0ll1m(':1d.:1t.i0n, the·Commit.te!':·.. ·

::llhmith,'d for l"c'\·il.'W c('li"i(~~~ of c1ocument.,t;on in support ·of

::(":''':'n(7) of t1h.' e:-:p(~ndi.1:11n:~:; tol:.:11inCl ~~·1,881.:~9 .:mel pl"csonl:cd

c"liclt."'11CC t11C1t i',ts <l)C'~,t c'[[()r,t:B··,·.r('\.l-(~ .~lS.C(! tC) ,nlJt"l"li.n clc)C,Urncl1tatic)n ,'-,

in support of the' rl~l\l.lininq 14 eXjll.'nc1il:un's totillinq ~8,220.72.,

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. Section :t():~.\)(c) (4)of 'Pitle 11, eodeof f'00crill Requ]ations:stilt.C'S, i·IFt, ':h;'Il:whc'T"l al:f'~(~i.pb~d i)i.fi is not ilvLlilablp,

tho,t.reCl!-Hl :'('r Po';ly k(~I'P . the CilnC(' 11 (~d check shm... i ncr pilYlllcnt '0 f th(~,.'

hill: ,ill1d the' ,hill, i Ilvoi ce', -or other conl:empOl",lIlCOUS memOl~andum'

supplied tn' the coml'liLl"(\(~ hy the puyec. ,¥, -

'Pufh"'cl \1:~('n t11," l'Pllmti LI:<"'-" s "fforts out] in(~d .,b0VC and

,l-llI' f .:1et,. th:l t C;ll1Ct' III''.I ehl~('b:; h:1<1 been 1°(, t.:1.1. nl 'd i. n !'1upport .of

:1.11 ,l:lw l':·:pOIlt:.i tll1"l-'~:, .1 1I1~ Al1d,; t st.:1ff flx·ls 1".11,11: h,"'st C'fforts

h:I\·t.~l~I",'n 11t:'mc·;~~~tl-.:1l-\'d by the Comm.ittoe. ';'i~":I~,'l"('ln~, no furthl"'r

11 <. • i (~n j :'~ 1" (\ ("n':l~nl_'tH!t'( I •

St.:'Ct1Ul1S ·1~·I(b).(2) .:md (3) of ';';I:],.,:~ of the l'nitc(t

SLIl:C'S Co(1c' I·,.... (:uin:~!: .1 ·polit.ical c(1111mitt:C'c~ to di~;c]osl~thc ful1

ll;ll~~t'" ;111(1 m.lili:lt: ,ldt!l"l':~:; «()C~":I1:,,"tiori ~nc1 Lhv pl".incip.,l pl.:1ce of

1)1l:~ i nl... ~~:" i:' ~1!1~:) nr ,'.1('h lH'\"s;,n \·.:ho .1li.1S n.lde'" nnc' ".r .more

t:unt:I~.ibtltiun:3 to :~llcll c"mmitt.·o\oJithi.nt.lw c:lh'lld:l\' vCur in ,Ill

;lilln'I'Q;ltl' ':1~1':)llnt O!' '.'.11 til' .i n (':·:~(:'nr-;· of ~~10n, l:o'l('l.ho~ \\;rth the

,1HH'tlllt: ;l!Jrl dilh" of" ~;1\(,:1 contributi()nf~, .:1n~: 1":1(' to1:..:11 sui'lof

<.~oni.rihllt.ic'n:~ I:l:\\!,"' tn' ~~I1('h c0nll~litb\,~ dtll~ir...: th" 1""IJ(H:,ti.nCl ·Deriocl. - - . . .. '.

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"It \,'as d('b~nnincd that:21 eXTK'nc1i.tures, each in .

'In·.lqqr6q:lb~ ~1mC\'lInt 0'" v"lul"in CXC(~ss· of S10n,. totCllin(l'~13:,]()4.nl

. \'II.' I~I.' ··"1()!: S 11: llH)!: h_~d . h~; l'I~C~l' i il U~<1 'hi 1 ] s in\·cd ce~:;, or () t.hi~x con l:l'mpo 1" ;lnf!nll~~ nK'm('r~l i1(l;l.HI·I\...C\rl ;,"" C.:mCI:'lled.:ChL'CJ: ~~ \'Jore. ret,.:dncd::.· ",.

f 01" : ('<lCh '. HlWh l':':!)('rid i I".lIn~. '1'hesc' 'c:-:pcnd.i tlll~e;, repn'RC11 t 'approx i -.

In;lb"-' 1~, .. ] n;:.· o[ t:ih' .1".(')1:;\ I· qU.:1nti ty· al1(1-17'::· (1f l:hc~t()t'll·.amotlntof"':

1':·:!'r·'ll!ittlr('~~ rc.:uirinq I.h(' dl'cumcnt..,tiol1.

~~(~c':ioll 41:~ (d) "n'r 'T'itlc 2 of tlw Uni ted ~tiltes Code

~;l:ab'~H, inparl, thdl' i I :;h.l1l be, the duty.of, thc "treasurer. to

()bt.:tin llndkeel'i a l"!'I"'il'I(;d bill, st:,"tinqthe p~lrt:iculars, for

(~vr!ry 0.:.:pl,~lIditun~ m;IlI," by 'm-, on behalf. of a poUti~"l committee..

i lIC'Xe()~~!-l ell" $100 ill ;i\ll()\int,,', nnd for any,ljl:lch expelldi ture in a

h,'H~wr"linollllt; 'if .,·Ill', ,lqqi'c'q,ltcilTnOunt o'f"sucl1 :e~qH'nlli t.Ul~CS to

.. f:h(!"r-;.:lll1ciTll-,":lr'JYl dur i II,! .-1 calC'1c1al~ v0;lr e>:~l~l.~(h; ~100~' ... "., , -" .

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-s0\11" ,",·vil·\11 of t.}w records revealc·d tlw following:

(.1) 13 C()IlU-jl'1l1 iOlls, <'itch 1'n <In <lCl'lrcqflt(, mllollnt or V,llue

in l~:'WC~;:; of ::;l()(), totalinq ~l,3l1.00 \'mn~ not itemized. 'T'hesc

cnntl"ibution:~ 1"'!,I""scnt ,lpproxjmately 18(~. of thC' total quantity

and (j':' of the' IIILI1. amount: of contributions required to be itemi7.L'(1.

(b) 'I'hl~ OCClI!'oll ion <lnlI/or principal place of business \lias not

di~c1n:,t"·d fo!" \11 inrl'ividu,llR who mude contributjons, in an

,lqql'\'q,ll:c aJnOllJaI or vitluc in ('xc(~s:> of $100, toti11jnq s7,575.00 •

'I'hc~:;l' cCllll1'ihlll j ' lllS rc'pn~s(mt: clpp!"oximi1te]y 41? of tIll"' total

qll.llll: i ty ,llld .\'/'. of tlw total doll i1r amount: of contrihutions rcquirinq d.i:;clr):;111·1~ of the contributor inform<ltion.

'1'1\1.' ','r ":Isurer statl~d he was unaW<lre of the situation

b(:call~;e it Ocr:l)l' rt~c1 prj or to hi:. assumpt.ion of the If'reasurer' s

of f icc).

H"::l'd UPOI\ the! l\lId.it St:."lrr'H n~C'omllll~lld,ltiI,JIl, the Comr.tittee

fi 11'd .1 compl"ch'·!H.ivc <lm(~nclml'll! on ;TlIn(~ 4, 197C) itemi:dnq the

c0n!:I'ihlltions .-Inti clisclo:dnq the contr.ilmtor .information. 'T'herefL1r,', no ftll~th(·:" ;lct.i.on i s r(~(x,mmt:ndl~cl.

r. I h'lIl i z.ll· i on 0 f l'::':l>('nd i ttl r(~~~ ----_.----_._--. .:_-----_._-~._--

Sl'ct i'lll 41·1(h) 9 of '!'.i t,1\" 2 of thc' Fn.i t(~cl States Codo

l'('l:uil""~; di:;cl()::lll"(~ of th(' idL'lll".ific'ltion of l'uch person to

\,;1I,,;n v:·:!)('lldi.l:lll"·:; h<lVI' bl'c'n m;lc!Q by ~1 pC'litic01] comm.ittoe wi.thin

t hi' C:!IC1HI,lI' .... ( •.:1' in ,'Ill ,1(llU"C'(Fltl"' <l11l011nt: or VulllC in excess of

~;;.ll,)() to(lI'tl!\'!" v:i til tho ilmOlll1t, clute, <lncl purpose of each such

I , :.: : 'C' 11 d i t: u l"t: •

OUI" n-,','Lc\·! of thl' (~}:!)I"'nditut'C! rt)r:orcls cUsclC'sod th<lt

11 (~:-:n,':1di t:tln"~~, (':leh .in ~ln ;\Clqr\"q"t.c ~lmount or v,lluc in excess

(\ f Sll) (1, '-n till i :,.: ~~ 9:1 0 • 67 Wi'1"(' no t .i tent i :·'.C'd. 'l'h0.:-;C' expr'nc1 j tures

)',':·"":"'11l' oli'!)l'o:,:.im;,ltcly 5'.'· of the' tot,tl qU'-lllt.it'l and 1':' of t.he

["!.ll dlllLll" :l!n~.",l11t of (':'::11~1~d.iturl":' n"'lllirinu il'.c'm.L7.<ltion.

"'11t, ';'I"",l~~lIl'('l" !:;!..)!:l,d I-h:,t-. !ll' W;lS un:l"''-ll"C' of the situOlt.ion

::1:;('·' it, Ill·CUI"I',·d !,,"in!" to his :l~::;\ll1lroli()n of nff.icC'.

n,l:;,·,l upon tl1t) ;\udil: sL<lf:~'s 1·l"'('()mnH.~n(1:ltion, the C'ommitt.cl'

!'i ~",.! II c<)ml>l·0h,.... :1~~i.·:l' ~1ll:Cl1di~lO!1t 0:1 ,lunc 4, 1970 itemi.7.inq the

,·:.:t""l;l:.i t'.llrl~~-;. ':';;,,, l'':' f0!"1', no further action is n"'commondccl •
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F. ni :=:closnr(' of 'T'rnnsfcrs

~ection 43"'(h)(4).of 'T'itle2 of the ttnitcd States

Code state:=:, in parI,' ."hat ('.:tch report :=:hn11 contain the name

'lI1d address of each 1)/) I i tical committee, from \oJhich the reportin~T

('nmmi ttee reG(~jvec1 any' trnn:=:fcr of funds, toqother \'lith tho .

illlloun ts und (1;\ I:os' 01" .. 111 tr;1ns f(~r.:=:." .

nuriWf thC' audit., it: WrtS determinc-d that the Committeo

did not'itemi.7.e five (5) transfer:=: total.i.nq 5308.00 received

from otherpol.itica1 committees. These trnm~fors represent

.. ppro:d.matc]y40", or Ull~ total number.and 1':. elf the totul dollar

..mount of illl transri.,)-s received.

1-:, 'commenda tion

Rased upon thC' i\1I<1 it: s ta f f IS recornmend.:l ti on ,the Lammi t tee

r i Lcd a cnmpreh('n~~ i Vl~ illllendmcmt on June 4, 1979 i ternizing the

t l:;lIH, fen:; "'11('1-"" fOl"', . nnfUl~ther action j~, rocomm<:ncled.,

PrC'!~('l1h:<1 be·lo\\' ~Ire other matters noted durinq .the

illHl.i t for which l:lw 1\lIdi I: stoff feels no action is \'lurranted~

'rhe Comini tt('C h.:1f, ))e'«'1! 'Idvisccl of the matter:=: ;md informed of.

the 1'010. ted rC"ll1 i 1.·C'1l1l 'I! t-.:=:o f t.he' .:'\ct.

(a) r-:x~'ol)(l it-.ure:s felr s~llt1d es on tht" 197R'T'hird.'

(~lIi.lrtcr il11d 10 c1;1yprc,-r,L:neral Pc'port::; \.;ere d i ~;c1 osecl 'in ninounts,

\oJhich included p~l~Tnll t.,xes. ':1'110 expenditures to t.:lX depositori.-..~:~

\oJl~r.e not dif~c1.os,ell. lIo\\,C'vl'l", report tot<l] S \'/(""0 not affected • .

(b) l-'ourt:e'('ll in-l:.i.nc1 contributic"l!1s totalinq S6,562.HO

1:0 fOUl- (4) c"ll1dir1;lh'f~ [or Fe-de..ral office wcn~ not disclosed 0n

t1H::! n'cc,j pts cll1d c:,:pl'ncl i tU1"()S schc~c1ules of t.ho 1.978 pre: nnd

I'ci~,t-CC'I1()riLl r(~!,cwl':; '-111<1 list0cl as '''.in-kind c()nt:r.ibuti.on~."

IhlWcvc:r, 1:11(' in-l:.illcl ("(lntribul:iorH, \'/1""0 c1isc1.()~;I'(1 usm(~mo' cntr.iqs

in i:ttt,<lchmcnts to 1:111' I·('poi~ts.

(e) :\ scl1"dl1h~ n disc10si.nQ ~~C'!,02r:;.()11 fumlraisinQ

Iq·()cccc1s \';<lS not fi11,t! \,:itI1 t:h,~ 1978 j;'irst ()~Fl1·t:('1' ronort. Hn\,:c\'c·r,

"'11-' ':Imount of: j'q'oc,"';'r!:; V,'il!"> c1.i.sclosc(l on t.h(~ s\lm'~1ill"Y 0'[ ree('.1 pl:s

.. 11111 e:-:~H'l1t1 it:t11"C'::~ illIII t.lll' ~lmo\lnl·::-~ '~l.:1k i.n~l U~) t.h0 Ill'nel'cds \'/C')"I'

d i ~~c,l()!".~c1 (1~.,i nc1 i ':.i <111.-,1 ('ont,-i btl ti.0ns •