Draft Final Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 

Why the Audit 

WM Done 

FedergI lawpennits the 

Cofinnission to conduct 

audits and field 

investigationi of any 

political committee that is 

required to file repoits 

un^ the Fedeml 

Election Campaign Act 

(thcAet).' The 

Commisuon generally 

conducts such audits 

when a committee 

appears not to have met 

the threshold 

requirementi Ibr 

substantiai compliance 

with the Act The audit 

determines whefiier the 

committee complied with 

the limitations, 

prohibitions and 

disclosure requirements 

of the Act. 

Future Action 

The Commission may 

initiate an enfbccemcnt 

action, at a later time, 

vdth respect to the matter 

diacuued In this report 

About the Campeign (p. 2) 

Brenda Lawrence for Congress it the principal cimpaipi 

committee for Brenda Lawrence, Democratic candidate for the 

United States House of Repnaentitives from the itato of 

Michigan, 14^ District, and Is headquaiteted in Southfield, 

Mlchlgsn. For more information, see the Campaign Organization 

Chart p. 2. 

FInancle! Aeti^ty (p. 2) 

• ReeelptB 

o Contributions ftom Individuals S 528,753 

o Contributioni ftom Other 

Political Committees 249,900 

TofldReeeiptt S778^ 

• Dbbnisenents 

o Operating Expenditures $673,351 

o Contribution Refunds 1,000 

o OtfwrDisbunemonts 12,000 

Total DWMnenNnIs $ 686,351 

Finding end Reconunendetlon (jp. 3) 

• Misstatement of Financial Activity 

* S3 U.sr 830111(b) 
Draft Final Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 
Table of Contents 

Page 

Put I. Baekgnrand 

Authority fiw Audit I 

Soope of Audit i 

Futn. fff r-fimpfiign 

Campiign OEganizition 2 

Overview of Flnincie! Activity 2 

Put m. Summary 

Finding and Reoommendation 3 

Part IV. Finding and Recommendation 

MiMtitoment of Financial Activity 4 
Parti 

Background 

Authority fdr Audit 

Thli report is baaed on an audit of Brenda Lawrence for Congnu (BLFC), undertaken by 

the Audit Divialon of the Federal Election Commiaaion (the Commiaalon) in accordance 

with the Federai Election Campaign Act of 1971, aa amnided (the Act). The Audit 

Diviaion conducted the audit punuant to 52 U.S.C. {301 i l(bX which permlta the 

Commiaaion to conduct audita and field inveatigationa of aqy political committee that is 

required to file a report under 52 U.S.C. {30104. Prior to conducting any audit under thia 

aubaection, the Commiaaion muat perform an internal review of reports filed by selected 

commitieea to determhw if the reports filed by a patticnlariMOunittee meet the threahold 

requirements for substantiai compliance with the Act 52 U.SX!; {30111(b). 

Seope of Audit 

Following Commiuion-appiDved procedurea, the Audit atafif evaluated various risk 

ftctoiB a^ as a result, this audit examined; 

1. the disclosure ofiiulividualoentrQHiton'occupation and name of enqiloyer, 

2. the diaciosure of disbursements, debts and obligations; 

3. the Gonsistenqy between reported flgutea and baiik records; 

4. the completenm of record^ and 

5. other campaign operations necesaaiy to the review. 
Part n 

Overview of Campaign 

Campaign Organization 

Importut Datn 

e DateofRcBiitntfon November 27.2013 

• Audit CovaiUB November 7,2013 - December 31,2014 

HcudauArten SouthfieM. Mlcbisan 

Bunk lifbnnatloa 

e Bulk DcDOUtoriei Two 

a Bank Accounts Two checking, one savhias 

Treasurer 

e Tressurer When Audit Wu Conducted JoeLlvloti(3/17/lS- 4^29/2013) 

Robert S. Daurda (4/30/15 -10/13/15) 

Llndaay Angetfaote (10/14/15 -

Present) 

e Tteasurtr Dunns Period Covaed hv Audit Sharon Baseman (11/27/13-3/I6/1S) 

MBnaMment Information 

e Attended Commission Campaign Finance 

Seminar 

No 

e Who Handled Accounting and 

Recordkeeping Thsks 

Paid Staff 

Overview of Financial Activity 

(Audited Amoimte) 

Caab-on-hand a November 7.2013 SI21 

RaeetoCi 

o Contributioni from Ihdividuils 520.753 

o Contributions from Other Political 

Committees 

249,900 

Total RoeainCs SVT&fiO 

Diabunemenii 

o ODenCing Bxoenditurai 673J51 

o Contribution Reflmds 1.000 

o Other Disbursements 12.000 

Total Disbanemeats S686J51 

Casb-oa-baad @ December 31.2014 S92.423 
! Part m 

Summary 

Finding and Reconunendatlon 

•iMtatement of Finanolal Aetirlty 

During audit lieldworie. a conpariion of BLFC'i rapoitad activity with iti bank racotdi 

identified a misitatenient in 2014. In2014,diibutaenienta wereupdentaledby S25,608and 

ending cash-on-hand waa oventated by $23,810. Subsequent to the exit confiBrance,BLFC filed 

aniended disclosure lepocts and nuterially Gonecled the dlaburseinents. However, ending cashon-band remained materially misstated by $8,022. In raqxmse to the Interim Audit Rqiort 

• leeonunendationa, BLFC filed amended disclosure reports which materially conected the ending 

casb-on-hand. As such, BLFC has conected the public record. 

(For more detail, see p. 4.) 
Part rv 

Finding and Recommendation 

I Ml—tatement of FlnannlMl Aetlyl^ 

Boflunuy 

During audit fieldwoik, a comparison of BLFC's reported activity with ha bank records 

identined a misstatement in 2014. In 2014, disbursements were understated by $25,608 and 

ending cash-on-hand was overstated by 123,810. Subsequent to the exit conference, BLFC filed 

amended disclosure reports and materially corrected the disbursements. However, ending cashon-hand remained materially misstated by $8,022. In response tb the Interim Audit Report 

recommendations, BLFC filed amended disclosure reports which materially corrected the ending 

cash-on-hand. As such, BLFC has corrected the public record. 

Legal Btandsffd 

Contente of Reporta. Each report must direlose: 

• The amount of cash-on-hand at the beginning and end of the reporting period; 

• The total amount of receipts for the reporting period and for the election cycle; 

• The total amount of disbursements fbr the reporting period and for the election qycle; and 

• Certain transactions that require itemization on Scheihile A (Itemized Receipts) or Schedule 

B (Itemized Disbursements). 52 U.S.C. $30104(bXl)i (2), P), (4) and (5). 

Facta and Analpala 

A. Facts 

During audit fieldwork, the Audit staff reconciled BLFC's reported activity with its bank records 

for 2013 aixl 2014. The following chart outlines the diacnpancies between BLFC's 2014 

disclosure reports and its bank records. The succeeding paragraphs eaqilain why the 

discrepancies occurred. 

2014 Committee Activity 

Rciwrted BenkRaeords DIscreiMney 

Begirming Cash Balance @ 

January 1.2014 

$92,871 $90,036 $2,835 

Overstated 

Receipts $673,212 $677,845 $4,633 

Understated 

Disbursements $649,850 8675,458 $25,608 

Understated 

Ending Cash Balance @ 

December 31.2014 

$116,233 $92,423 $23,810 

OveraUUed 

The beginning cash-on-hand balance was overstated by $2,835 and resulted fcom priot^period 

discrepancies. 
The undentatement of disbunemenb ceiuhed ftom the following: 

• Unrepoited dlsbunements + 28,816 

• Disbunement reported twice - 2,983 

• Reported, disbunements that did not clear the baiik 2 225 

NctUndcntateinentof Difbaraeinenta + IKdfiOB 

The misstatements described above resulted in the oventatement of the ending cash-on-hand 

balance fay $23,810. 

B. iDterim Audit Report A AndttDtvlBknReeoainwwlBtioi 

The Audit staff discussed this mattor during the exit Gonfierence and provided BLFC 

representatives with the 2014 bank reconciliation. The BLFC representatives concurred whh the 

mlistBtement finding. Subaequent to the exit conference, BLFC filed amended disclosure reports 

which materially conected the dishunements misstatement However, ending cash-on-hand 

remained materially misstated by $8,022. 

The Interim Audit Report recommended that BLFC reconcile the cash balance on its most recent 

report to identify any subsequent discrepancies foat could afiect the recommended remaining 

$8,022 adjusbnent The Interim Audit Report further reconunended that BLFC adjust the carii 

balance, as necessary, on its most recent report, noting foat the adjustment is the result of priori 

period audit adjustments. 

C. Commtttee Reaponae to luterimAudh Report 

b reqxmae to the Interim AlKlit Report lecoiniiiendationa, BLFC filed amended disclosure 

reports which materially oonucCed ending cash^ hand misriatenient identified by the Audit 

staff. BLFC stated that it has taken steps to bobtarltaGonqiliBnee operations and engaged a new 

compliance firm to handle its accounting and report preparation fiinctions. As such, BLFC 

compiled with the Interim Audit Report recominendations and corrected the public record.