~arch 28, 1980

FRED EILAND

PRESS OFFICE i, c. i

. /..~F.' BOB COSTA fJv rO

JUDY IIANKINS~

PUBLIC ISSUANCE OF FINAL AUDIT

REPORT - DE~·10CRATIC FINANCE cmUUTTEE

fEDERAL ELECTION COMMISSION

WASUlNC;ION. D.C 204M

cc: FEe Library

Ri\D

~lic Record

Attachment as stated

Informational copies of the report have been received

by all parties involved and this report may be released to

the public as of today, ~tarch 28, 1980.

Attached please find a copy of the final audit report

of the Democratic Finance Committee which was a?proved by

the Commission on ~arch 14;1900. . .

SUBJECT:

'l'UROUGH:

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. A. Overview

I • Background

WASItIN<;10N. DC 2114hl

FEDERAL ELECTION COMMISSION

The Committee terminated its activities on September 30, 1978,

through merqer into the Democratic ~ational Committee-Services

Corpor_ation.

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The audit covered the period from Januarv 1, 1976 throuah

September 30, 1978, the final coverage date of the most recent

report filed by the Committee at the time of its termination. 1/

~he Committee reported an opening cash balance on January 1, 197f1

of $36,418.66, total receipts for the period of $6,048,210.13,

total expenditures for the period of $6,084,628.79, and a

closing cash balance on September 30, 1978 of S -0-.

The Committee registered with the Comptroller General

of the United States, General Accounting Office on February 8;

1974, and maintained its headquarters in Washington, D.C. ~he

primary function of the Committee was .to support, in affiliation

with the Democratic National Committee (DNC), Democratic

nominees for Federal office. As an affiliate of the DNC, all

administrative expenses of the Committee were paid by the .

DNC Services Corporation which served as the source for disbursements of administrative costs for all DNC affiliates.

REPORT 'OF THE AUDIT DIVISION

ON THE

DEMOCRATIC FINANCE CO~MITTEE

. - This report is based upon an audit of the ~emocratic

Finance Committee ("the'Committee"), undertaken by the Audit

.Division in accordance with the Commission's audit policy to

determine whether there has been compliance with the provisions

,of the Federal Election Campaign Act of 1971, as amended

("the Act"). The 'audit was conducted pursuant to Section.438

(a) (8) of Title 2 of the United States Code which directs the

Commission to make from time to time audits and field investigations with respect to reports and statements filed under,

the provisions of the Act.

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B. Key Personnel

'rREASURER

Hr. Rric M. Jaffe

Mr. John D. Nelson

Mr. Evan R. Dobe11e ..

CHAIRMAN

Mr. Lee Kling

Mr. Jess Hay

Mr. Charles T.

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C. Scope

1/1/76-4/9/77

4/9/77-B/21/78

8/21/78-9/30/78

~he principal officers of the committee during the

period iludited were as follows:

This report is based upon documents and working

paper:; which support each of the factual statements. 'rhey

form P,II'I: of the record upon which the Commission based its

decifi i Oil:; on the matters in the report and were available

to Comlll i :·,sioners and appropriate staff for review.

Based upon examination of the reports and statements

, filed and the records presented by the Democratic Finance

Committee, no material problems in complying with the

Federal Election Campaign Act were discovered, during the '.

course of the audit.

The audit included such tests as verification of

total reported receipts, expenditures and individual transactions;

review of required supporting documentation; analysis of

Committee debts and obligations; and such other audit procedures as deemed necessary uriderthe circumstances.

'.. II. Finding and Recommendation

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