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FE DE RAL ELECTION COJ\t\l\lISSI()N

REPORT OF THE J\.Un1':' 01'71 S IO~

ON THE N1EPICA~J CO:JSERVATI"E UNION

I. Backaround

A. Overview

'I'his report is basec1 on an aurlit of the ~.T1erican

Conservative Tinion ("the romnittee tt ) undertaken b" the

Audit Division of th~ Federal Blection Comrnission4in

accordance with the COJ!l.l'!lission's audit policy to deternine

whether there has been cornnliance with the orovisions of the

Federal r1ection Camnaign l\ct of 1971, as amendecl ("the l'ct"). ~'he audit was conducted nursuant to C;ection 438(a)(Q) of

Ti tIe 2, of the T;ni ted States ('ode, which directs the COr.'nission

to make from time to time audits and field investigations with res~ect to re~orts and statements filed under the provisions of

the l\ct.

The l\.merican Conservative Onion reClistered \-lith the

Office of the Clerk of the United States Pouse of ~enresentativcs

on Anril 13, 1972, and filed a terMination notice on ~nril 14,

1977. r::'he ro~i ttee maintained its headquarters in ,.rashin~ton,

D.C.

The audit covered the neriod ,-ianuar~' 1, 1977, throu9h l':arc~ 31, 1977, the final coveraqe nate of the terr.1ination

r0port. Durinc; the period the ~OJYUTlitt0e renorted a beginninq

cash balance of neoative ~2,717.53 1/, total rcceints of ~270,2J2.58, total'exnen~iturcs of ~261,020.11, anrl a c1osin~

caRh balance o~ ~6,734.94. ~/

This audit report is basen on dOCUMents and workinCl

t)3nCrS which sunport each of the factual statewents. ~hcv

for~ part of the record unon which the rommission based its

(lccisions on the matters in the renort ane were availahle to

co!'!"~issioners and annronriate staff for revie\'J•

..!/ ~hl:? COF~i ttee re')ortcc1 a ncaative cash balance on ;Tanuar':, 1,

1~77, as a result o~ outstan~ino checks at the beainnina of

t;10 periad.

/ 'T=~c Cor.::i ttce fileil a letter on l\nril Itt, 1977 statinc

th3t all debts of th(~ \or!'Mi ttee han been retired an0.

a11 rcsl(1u:11 :un\.:s \\'I~rc to be used bv th0 ('0r".Mit:.tec in

n 0 :1 - ~) () 1i i c (1 1 ( r e n () !. t ."1b 1C~ ) rt C t i v i tic •
B. Key Personnel

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The principal officers of the Committee during the

period covered by the audit were: M. Stanton Evans, Chairman,

Danif'l P. Joy III, Treasurer, and James C. Roberts, Executive

Dir(l("tfJr.

c. Scope

The audit included such tests as verification of

total reported receipts and expenditures and individual

transactions; review of required supporting documentation;

analysis of Committee debts and obligations; and, such other

audit procedures as deemed necessary under the circumstances.

II. Audit Findings and Recommenorttions

Certain matters noted during the audit were referred

to the Commission's Office of General Counsel for consideration

on September 29, 1979.

Section 432(d) of Title 2 of the United States Code

states, in part, that it shall be the duty of the treasurer

to obtain and keep a receipted bill, stating the particulars,

for every expenditure made by or on behalf of a political

committee in excess of $100.00 in amount, and for any such

expenditure in a lesser amount, if the aggregate amount of

such expenditures to the sume person durin0 a calendar year

exceeds $100.00.

A.

B.

Matters Referred to tho Office of General Counsel

Preservation of Receipts

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In addition, Section 102.9(c) (4) of Title 11 of

the Code of Federal Regulations states, in part, that when

a receipted bill is not available, the treasurer may keep

the cancelled check showing payment of the bill; and the bill,

invoice or other conte~poraneous memorandum of the transaction

supplied to the Co~~ittee by the payee.

Our revie~ 0: the Co~mittec's expenditure records

disclosed 29 expenditures totaling $48,827.35 not supported

by receipted bills or other contem~oraneous memoranda. The

unsu~~)orted expenditures represent 21.74 r of the total dollar

amount and 9.35~ of the number of expenditures in excess of or

aqarcCli1ting in excess of SlOO. A list identifying each

cxnen(!i ture \vas prescn ted to the CO~.l"7li t tee.

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The ('oMrn.i ttce nrovidcd for our revie\oJ supportin~

documentation for 18 of the 2q exnenditures and evidence of its

efforts to obtain the documentation for the remainder of these

expenditures on August 16, 1979 and September 11, 1979.

Recommendation

The Audit sta:f recommends that no further action be taken

on this matter.

c. nisclo~:ure of OCCllntltion, Princinal Place

of Business or ~~ilinn ~ddress

Section 434(b) (2) of Title 2 of the united States

Code states, in nart, that each renort shall disclose the

full nanc and Mai.lina address (occupation and the nrincinal

place of business, if any) of each person who has made one or

more contrihutions to or for such conmittee or candidate

within the calenaar year in an anqregate aMount or value in

excess of ~lnO, tOGether with the amount and rlate of such

contribution.

During the rC'Ji0\'; o~ thl' reoorts and statements

filed by the rOTr:1i t teo it \'Jas notc'd that the COmITli ttee fai led

to discJ_osc the OCC'JD(l ti on, nrinc i l)ll! place of business or

mailinn address for 3S contributnr~;, a~counting for 27.9q~ of

the dollar amount an(1 37. 63~ of l~p nUr.1ber of contributions in

excess o~ or aggrcq~ting in excess of ~100.

~he COr.'J:".i t tee nro~."ided cvidenC'P of its efforts to

obtain the reauired contributor information for the aforementioned

35 contributors, O~ ;ucrust 16, 1979. On ~oveMber 7, 1979

the COI""'•.mittec filed an amcn(1ed rcoort disclosinq the contributor

infor~ation whic~ ~as obtaine~ through the efforts outlined ahove,

for 22 of the 35 co~tributors.

Rccormnenda tion

rr'hc l\udi t sta~: rcco~ends that no further action

be tZl}',,"'n on this rr.~ t tcr.

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Disclosure of Debts an0 Ohliqations I

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Section 434(h) (12) of ~itle 2 of the united

States Code r0~uires the disclosure in a continuous manner

of debts ancI obligations o\~ed by or to the rOMITlittee until

such debts ilnd obligations are extinguished, together with

the circumstilllces and conditions under which anv such debt

is extinguishc."d and the consideration therefor.'

nurino the course of the audit the following

matters relating to loans were noted:

a) The Committee reoorted a payment of a loan

as both an opcr3tina cxP(~nl1iture and a loan rer>ayment thereby

overstating ex~cndi~urcs b~ 5300.

b) The Committee renorted a ~6,OOO loan repayment

as S5, 000 thcr<:by understa ting c:-:n(~nc1itures by ~l, 000.

c) The Committee did not itemize the receiot of

a ~5,OOO loan or the subseauent renayment of that loan.

0) 7hc ComMittee ~id not iteMize the disbursement

of a ~5,000 loan or the receint of the renavrnent.

The COMmitt0c filed an anended report on Pugust

16, 1979, disclosinq and/or correctinq the aforementioned

transactions.

Recommcndrttion

The Audit staff recor.-u":1cn~s :10 further action on

this matter.

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FEDERAl. ELECTION COtv1,\1ISSI0N

1).!:; " IRt 1 ,\\

\\·'''HI'C J()'.l)C .!P·hd

ADDITIONAL INFORMATION REGARDING '!HIS ORGANIZATION

MAY BE lOCATED IN A OOMPLETED COMPLIANCE ACIION

FILE RELEASED BY 'mE aH1ISSION AND MADE PUBLIC IN

'!HE PUBLIC RECDRDS OFFICE. RJR nus PARTICULAR

ORGANIZATION'S COMPLETED COMPLIANCE ACI'ION FILE

SIMPLY J.SK FUR 'mE PRESS StM-1ARY OF MIJR 41 / (I 7/

'mE PRESS ~y WILL PROVIDE A BRIEF HIS'IDRY OF

'mE CASE AND A StM1ARY OF 'mE AcrIONS TAKEN, IF Mfi•

Audit db 2 (..