BERKE FARAHiiP 

ATTORNEY S AT LAW 

1200NewHampshiieAve.NW | Suite 8001 Washington, DC 20036 |www.berkefarahxoin |202S177230 | 

December 29,2014 

Re: Audit of Kevin McCarthy for Congress 

Federal Election Commission 

Audit Division 

Kendrick Smith 

999 E Street, NW 

Washington, DC 20463 

Dear Mr. Smith: 

The purpose of this letter is to respond to the Audit Division's Interim Audit Report ("JAR") 

regarding Kevin McCarthy for Congress ("Committee") during the period January 1, 2011 -

December 31, 2012. This response is sent within the requested 30 days of receipt. 

The Audit Division reached two findings in the lAR. Those Hndings are repeated below 

along with our comments. 

Finding 1. Recent of Contributions in Excess of the limit 

As stated in the lAR, Audit staff identified apparent excessive contributions from individuals 

totaling $77,094. According to the Audit staff, all excessive contributions were the result of the 

Committee not resolving the excessive portion of contributions by timely forwarding a presumptive 

letter to its contributors informing them how their contribution had been redesignated and/or 

reattributed, or refunding the excessive contribution. 

As noted in the lAR, the Committee's representatives submitted presumptive reattribution 

and redesignation letters that were sent to the contributors relative to the apparent excessive 

contributions. The lAR concluded that the Committee resolved the excessive contributions, but 

determined its actions were untimely. 

NAVICHIHS THE LHW OF POLITICS 
The Committee believes that it did indeed timely forwaFd presumptive letters to its 

contributors informing them how their contribution had been redesignated and/or reattributed. 

However, because such efforts would have been undertaken by its prior treasurer, the Committee 

could not prove so with a degree of acceptable certainty. Therefore, the Committee sent and fully 

tracked presumptive reattribution and redesignation letters, which resulted in resolving the excessive 

contributions to the Audit staffs satisfaction. The Committee nevertheless disagrees that such 

actions were untimely as determined by Audit staff. 

Finding 2. Misstatement of Financial Activity 

During audit fieldwork, the Audit staff reconciled the Committee's reported activity with its 

bank records for 2011 and 2012. The Audit staff discussed this matter during the exit conference 

at the conclusion of the Heldwork and provided Committee irepresentalives with reconciliations for 

2011 and 2012 based on disclosure reports hied by the Committee prior to audit notification and 

amended reports filed subsequently. The Audit staff informed the representatives that the 

amendments filed after audit notification materially corrected the misstatements. 

It should be noted for the record that prior to Audit notification, the Committee on its own 

began to take corrective and prophylactic action regarding these findings. It was well on its way to 

correcting the two matters identified by Audit staff, and as noted in the lAR, has completely done 

so to Audit staffs satisfaction. The Committee had also engaged a new treasurer and new 

representatives including regular outside counsel and a new compliance firm. It has since adopted 

new internal procedures and safeguards to minimize future administrative issues. Therefore, 

because both findings have been corrected, the Audit staff make no further recommendations, the 

engagement of a new treasurer and new representatives, and the adoption of internal procedures 

and.safeguards, we urge you to close this matter without further action. 

Should you have any additional quesdons, please do not hesitate to contact me. 

Very truly yours, 

Elliots. Berke