Why the Audit 

Was Done 

Federal law permits the 

Commission to conduct 

audits and field 

investigations of any 

political committee that is 

required to file reports 

under the Federal 

Election Campaign Act 

(the Act). The 

Commission generally 

conducts such audits 

when a conimittee 

appears not to have met 

the threshold 

requurements for 

substantial compliance 

with the Act.^ The audit 

determines whether the 

committee complied with 

the limitations, 

prohibitions and 

disclosure requirements 

of the Act. 

Final Audit Report of the 

Commission on the Ohio 

Republican Party State Central & 

Executive Committee 

(January 1, 2007 - December 31. 2008) 

Ahout the Committee (p. 2) 

The Ohio Republican Party State Central & Executive Committee 

is a state party committee headquartered m Columbus, Ohio. For 

more information, see the chart on the Committee Organization, 

p.2. 

Financial Activity (p. 2) 

Receipts 

o Contributions from Individuals $ 3,058,229 

o Contributions from Political 1,666,512 

Committees 

o Transfers from Affiliates 11,851,559 

o Transfers from Non-federal 2,385,909 

Accounts 

o Offsets/Other Receipts 1,310,775 

Total Receipts $20,272,984 

Disbursements 

o Operating Expenditures $ 5,304,397 

o Refunds of Contributions 1,747,000 

o Independent Expenditures 50,000 

o Coordinated Expenditures 13,003 

o Federal Election Activity 10,710,668 

o Other Disbursements 1,345,414 

Total Disbursements $ 19,170,482 

Future Action 

The Commission may 

initiate an enforcement 

action, at a later time, 

with respect to the matter 

discussed in this report. 

Commission Finding (p. 3) 

• Reporting of Debts and Obligations 

2U.S.C. §438(b). 
Final Audit Report of the 

Commission on the 

Ohio Republican Party State 

Central & Executive Committee 

(January 1, 2007 - December 31, 2008) 
Table of Contents 

Page 

Part I. Background 

Authority for Audit 1 

Scope of Audit 1 

Part n. Overview of Committee 

Committee Organization 2 

Overview of Fmancial Activity 2 

Part III. Summary 

Fmding and Recommendation 3 

Part IV. Commission Finding 

Reporting of Debts and Obligations 4 
Parti 

Backgroimd 

Authority for Audit 

This report is based on an audit of the Ohio Republican Party State Central & Executive 

Committee (ORP), undertaken by the Audit Division of the Federal Election Commission 

(the Commission) in accordance with the Federal Election Campaign Act of 1971, as 

amended (the Act). The Audit Division conducted the audit pursuant to 2 U.S.C. 

§438(b), which permits the Commission to conduct audits and field investigations of any 

political committee that is required to file a report under 2 U.S.C. §434. Prior to 

conducting any audit under this subsection, the Commission must perform an intemal 

review of reports filed by selected committees to determine if the reports filed by a 

particular committee meet the threshold requirements for substantial compliance with the 

Act. 2U.S.C.§438(b). 

Scope of Audit 

Followmg Commission approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. The disclosure of individual contributors* occupation and name of employer. 

2. The disclosure of disbursements, debts and obligations. 

3. The disclosure of expenses allocated between federal and non-federal accounts. 

4. The consistency between reported figures and bank records. 

5. The completeness of records. 

6. Other committee operations necessary to the review. 
Part II 

Overview of Committee 

Committee Organization 

Important Dates 

• Date of Registration October 5,1982 

• Audit Coverage January 1,2007 - December 31,2008 

Headquarters Columbus, Ohio 

Bank Information 

• Bank Depositories Two 

• Bank Accounts 10 Federal, Six Non-federal 

Treasurer 

• Treasurer When Audit Was Conducted Mr. Paul Hoag January 23, 2009 - July 6, 

2011 

• Treasurer During Period Covered by Audit Ms. Sara Brown January 28,1999 - January 

23, 2009 

Management Information 

• Attended FEC Campaign Finance Seminar Yes 

• Who Handled Accounting and Recordkeeping 

Tasks 

Paid Staff 

Overview of Financial Activity 

(Audited Amoimts) 

Cash on hand @ January 1,2007 $ 172,248 

Receipts 

o Contributions from Individuals 3,058,229 

o Contributions from Political Committees 1,666,512 

o Transfers from Affiliates 11,851,559 

0 Transfers from Non-federal Accounts 2,385,909 

o Offsets/Other Receipts 1,310,775 

Total Receipts $20,272,984 

Disbursements 

o Operating Expenditures 5,304,397 

o Refunds of Contributions 1,747,000 

o Independent Expenditures 50,000 

o Coordinated Expenditures 13,003 

o Federal Election Activity 10,710,668 

o Other Disbursements 1,345,414 

Total Disbursements $ 19,170,482 

Cash on hand @ December 31,2008 $ 1,274,750 
Part III 

Summary 

Commission Finding 

Reporting of Dehts and Ohligations 

Audit fieldwork identified debts to five vendors that ORP failed to report. The debts 

totaled $1,195,892. In response to the Interim Audit Report recommendation, ORP 

amended its reports to disclose these debts. The Commission approved this finding. 

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

Commission Finding 

I Reporting of Dehts and Ohligations 

Summary 

Audit fieldwork identified debts to five vendors that ORP failed to report. The debts 

totaled $1,195,892. In response to the Interim Audit Report recommendation, ORP 

amended its reports to disclose these debts. The Commission approved this findmg. 

Legal standard 

A. Continuous Reporting Required. A political committee must disclose the amount 

and nature of outstanding debts and obligations until those debts are extinguished. 2 

U.S.C §434(b)(8) and 11 CFR §§ 104.3(d) andl04.11(a). 

B. Separate Schedules. A political committee must file separate schedules for debts 

owed by and to the committee with a statement explaining the cu:cumstances and 

conditions under which each debt and obligation was incurred or extinguished. 11 CFR 

§104.11(a). 

C. Itemizing Debts and Obligations. 

• Once it has been outstanding 60 days from the date incurred, a debt of $500 or 

less must be reported on the next regularly scheduled report. 

• A debt exceeding $500 must be disclosed in the report that covers the date on 

which the debt was incurred. 11 CFR § 104.11(b). 

Facts and Analsrsis 

A. Facts 

Disclosure reports filed by ORP during the audit period did not disclose any debts owed. 

Although ORP paid the majority of invoices timely, it carried outstanding balances with 

five vendors that were not disclosed as debts. During audit fieldwork, a review of vendor 

invoices and computer files identified debts totaline $1,195,892 that should have been 

disclosed on Schedules D (Debts and Obligations). The vendors consistently invoiced 

ORP for the balances due. Some of the undisclosed debts were outstanding prior to the 

beginning of the audit period. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff mformed ORP representatives of this matter at the exit conference and 

provided schedules detailing the undisclosed debts for each reporting period for the 

audited cycle. ORP representatives indicated that amended reports would be filed. 

^ Each debt in this amount was counted once. In order for ORP to correctly file amended reports, the 

schedule provided included the amount of each debt required to be reported for each reporting period. 
In the Interim Audit Report, the Audit staff recommended that ORP amend its reports to 

disclose the debts and obligations addressed above. 

C. Committee Response to Interim Audit Report 

In response to the Interim Audit Report, ORP filed amended reports disclosing the debts 

and obligations. 

D. Draft Final Audit Report 

In the Draft Final Audit Report, the Audit staff acknowledged that ORP filed amended 

reports disclosmg the debts and obligations. 

Commission Conclusion 

The Commission approved this finding.