Part II

Overview of Committee

Committee Organization

Important Dates

Employees of Northrop Grumman
Corporation PAC

e Date of Registration

March 3, 1978

e Audit Coverage

January 1, 2003 — December 31, 2004

Headquarters

Los Angeles, California

Bank Information

e Bank Depositories

1

e Bank Accounts

1 Checking

Treasurer

¢ Treasurer When Audit Was Conducted

Cary Davidson

e Treasurer During Period Covered by Audit

Cary Davidson

Management Information

e Attended FEC Campaign Finance Seminar

Yes

¢ Used Commonly Available Campaign
Management Software Package

Yes

e Who Handled Accounting and
Recordkeeping Tasks

Reed & Davidson, LLP

Overview of Financial Activity
(Audited Amounts)

Cash on hand @ January 1, 2003 $ 99,598
o Contributions from Individuals 1,690,717
Total Receipts $ 1,690,717
o Contributions to Federal 1,622,700
Candidates/Committees
o Contributions to Non-federal Candidates 40,200
o Other Operating Disbursements 342
Total Disbursements $ 1,663,242
Cash on hand @ December 31, 2004 $ 127,073


Part I
Background

Authority for Audit

This report is based on an audit of the Employees of Northrop Grumman Corporation
PAC, 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 internal
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. 2 U.S.C. §438(b).

Scope of Audit

This audit examined:

The receipt of excessive contributions and loans.

The receipt of contributions from prohibited sources.

The disclosure of contributions received.

The disclosure of disbursements, debts and obligations.

The disclosure of expenses allocated between federal and non-federal accounts.
The consistency between reported figures and bank records.

The completeness of records.

Other committee operations necessary to the review.

PADARWNE


Part III
Findings and Recommendations
Based upon our examination of the reports and statements filed, and the records presented

by Employees of Northrop Grumman Corporation PAC, no material non-compliance was
discovered.


FEDERAL ELECTION COMMISSION
Washington, DC 20463

February 23, 2007

MEMORANDUM
To: Robert W. Biersack
Press Officer
Through: Margarita Maisonel{ V7
Chief Compliance Officer
From: Joseph F. Stoltz
Assistant Staff Dj Tr
Audit Division
Subject: Public Issuance of the Audit Report On Employees of Northrop Grumman
Corporation PAC.

Attached please find a copy of the audit report and related documents on
Employees of Northrop Grumman Corporation PAC, which was approved by the
Commission on February 6, 2007.

The report may be released to the public on February 23, 2007.

Attachment as stated

cc: Office of General Counsel
Office of Public Disclosure
Reports Analysis Division
FEC Library
SDD Website


Report of the
Audit Division on
Employees of Northrop

Grumman Corporation PAC
January 1, 2003 —- December 31, 2004

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 committee
appears not to have met
the threshold
requirements for
substantial compliance
with the Act.' The audit
determines whether the
committee complied with
the limitations,
prohibitions and
disclosure requirements
of the Act.

Future Action
The Commission may
initiate an enforcement
action, at a later time,
with respect to any of the
matters discussed in this
report.

' 2US.C. §438(b).

About the Committee (p. 2)

Employees of Northrop Grumman Corporation PAC is a separate
segregated fund headquartered in Los Angeles, California. For
more information, see the chart on the Committee Organization,
p.2.

Financial Activity (p. 2)

¢ Receipts
o Contributions from Individuals
o Total Receipts

$ 1,690,717
$ 1,690,717

¢ Disbursements

o Contributions to Federal $ 1,622,700
Candidates/Committees

o Contributions to Non-federal 40,200
Candidates

o Other Operating Expenditures 342

o Total Disbursements $ 1,663,242

Findings and Recommendations (p. 3)

Based upon our examination of the reports and statements filed,
and the records presented by Employees of Northrop Grumman
Corporation PAC, no material non-compliance was discovered.


Table of Contents

Part I. Background
Authority for Audit
Scope of Audit

Part II. Overview of Committee

Committee Organization
Overview of Financial Activity

Part III. Findings and Recommendations

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