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FEDERAL ELlCTION COMMISSION

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RFPORT OF THE AUDIT DIVISION

ON THE

TEN~ESSEE CA~PAIGN '80

1. Background

l>-.. Overvie\-l

This report covers an audit of the ~ennessee Campaign

'80 ("the Committee"), to determine whether there has been

compliance with the provisions of the Federal Flection Campaign

Act of 1971, as amended ("the Act"). "('he audit was conducted

pursuant to Section 9007(a) of Title 26 of the United States Code

which states that t1afte~ each presidential election, the Commission

shall conduct a thorou~h examination and audit 0= the qualified

campaign expenses of t~e candidate of each political party for

President and Vice President. II

In additio~, Section 9009(b) of ~itle 26 of the Vnited

States Code states, i~ part, t~at the Co~~issio~ may cc~duct other

examinations and audits fron time to time as it dee~s necessary

to carry out the pro~isions of this subchapter.

~~e Co~~ittee registere~ ~ith the Federal Flection

Commission on Seotember 17, 1980, as an af:iliate 0= the

Democratic Party' of Tennessee. Subseque~tlj" the ro~~ittee

was authorized b\· President Jirr.:11v Carter to con~uct ioint

fundraising ~ith~the co~pliance fund of the Carter/~;nc3le

Re-election Con~ittec, Inc. The ro~~ittee maintains its

headquarters in r'ash'.. i lIe, 'Tennessee.

The audit co~ered the period from Septemher 15, 19~O

throuqh December 31, l~SO. The Co~~ittec reported an cneninc

cash balance of ~-O-, total recei~ts of ~72,~59.37, total -

e >: end i t u res 0 f $ 7 1 , £ .; • 1 4, ancae10 inc:-: cash b 31 u :; c e <: :

$275.23 durina the period. T~e r0~ort0d totals are nisleadin~,

in that in additio~ to the Co~~ittee's portion (30 r ) of the joint

fundraising proceeds, the reporte~ fioures also include state p~ rty acti "/i ty. The Cc;:'.:ni t tee m~:: :lta i ned a scp.:ira te account

in:-o ,·:hich t~(; procc:~.:::s :ror.: th0 ~oint fun~rais:i~~g e<ve~:: \..~ere

deposited. Fxpenscs ~crc p3id fr0~ this ~ccount, and t~e

proceeds were then di~idpd, and tr~~~f0rr0d to t~e participatina cO:"':".~itt00S :Cl- cisclc~:':l·C. r;~;c .......-::~ir'f'St:.(. rul~!):ii ~:; '8 r: recci\'ed

S~4,43P.)·~ n0t of C':('~:: C:·::)(...':1ses, I3n'.: tb·-' C~rtc!-/!,·o:1~~lc ~.ee 1c c t i ("\ CC':'" ittc· C', ::('. r eeL' i .: c :: ~:' -, , () . 3 nc 7. c' : c·~: .? t e :-:r' ens e 5 •
" ....

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This report is based on documents and working papers

supporting 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 principal officers of the Committee during the

period audited were Vr. J. D. Wallace, ~reasurer, and ~s. "irginia

Heise, Custodian of Records.

c. Scope

In view of the Committee's registration as a state

party affiliate, and an account structure which separated joint

fundraising activity from the state operations of the Committee,

the Audit staff limited the scope of the audit to the review of

joint fundraisinq proceeds and expenses only.

The audit included such tests as verification of the

disclosure of total joint fundraising receipts and expenditures

and individual transactions: revie~ of reauired suooortina

documentatio~ and analysis 0: joi~~ fU~draising debts andobligations; and suc~ other audit procedures as deemed necessary

under the circumstances.

7he Audit staf: express ~o opinion in relatio~ to the

state party activity reported by the Tennessee Campaign '80.

II. Audit Findinqs and Recommendations

It is the opinion of the Audit staff, based uoon examinatio~

of the reports and statements filed and the records presented, th~t

the re~orts and statements 0: the ~ennessee Campaign '80 fairly

present t~e joint fu~craisin9 fin3ncial activitv of the Corr~ittee

for the period covered by the audit. ~o materi~l problems in

cornpl~i~c ~ith the Fe~eral ~lecti0~ Ca~paign Act were discovered

during the course of the audit.