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A84-2

REPORT OF THE AUDIT DIVISION

ON THE

LONG ISLAND AEROSPACE POLITICAL COMMITTEE (FEDERAL)

I. Background

A. Overview

This report is based on an audit of the Long Island

Aerospace Political Committee (Federal) ("the Committee"),

undertaken by the Audit Division of the Federal Election

Commission 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 amen~ed ("the

Act"). The audit was conducted pursuant to 2 U.S.C. ~438(b)

which states, in part, that the Commission may conduct audits and

field investigations of any political committee required to file

a report under Section 434 of this title. Prior to conducting

any audit under this subsection, the Commission shall perform an

internal review of reports filed by selected committee~ to

determine if the reports filed by a particular committee meet the

threshold requirements for substantial compliance with the Act.

The Committee registered with the Federal Election

Commission on January 20, 1982 and maintains its headquarters in

Baldwin, New York.

The"audit covered the period January 1, 1983, through

May 31, 1984. The Committee reported a beginning cash balance on

January 1, 1983 of $2,732.40; total receipts for the period of

$114,675.00; total disbursements for the period of $98,922.23;

and an ending cash balance on May 31, 1984 of $18,485.17 •.

This report is baseB on documents and working papers

supporting each of its factual statements. They form part of the

record upon which the Commission based its decisions on the

matters in this report and were available to Commissioners and

appropriate staff for review.

B. Key Persondel

The treasurer of the committee during the period covered by the audit was Mr. Lester Kerner.
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c. Scope

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The audit included such tests as verification of total

reported receipts and expenditures and individual transactions1

review of required supporting documentation; analysis of

Committee debts and obligationsJ and such other audit procedures

as deemed necessary under the circumstances.

II. Audit Findings and Recommendations

A. Itemization of Transfers to Other Political Committees

Section 434 (b) (6) (B) (i) of Title 2, United States Code

requires political committees other than authorized committees to

report the name and address of each political committee which has

received a contribution from the reporting committee during the

reporting period, together with the date and amount of such

contribution.

In February and March of 1983 the Committee made six(6)

contributions to six(6) different political committees totalling $10,000.00 which were not itemized on Committee reports. On

August 1, 1984 Committee officials supplied the Audit staff an

amended copy of schedule B itemizing the six(6) contributions as

required.

In addition, it was noted that the Committee itemized

seven(7) other contributions to other political committees

without disclosing those committees' addresses as required. On

August 1, 1984 the Committee supplied the Audit staff with a

listing of the addresses for the seven(7) committees to be

included in comprehensive amendments for 1983 and 1984. The

amendments were filed on August 2, 1984.

Recommendation

The Audit Staff recommends no further action in this matter.

B. Itemization of Contributions From Individuals

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Section 434(b) (3) (A) of Title 2, United States Code

requires a political committee to disclose the identification of

each person who makes a contribution to the committee in excess

·of $200.00. The Act, at 2 U. S. C. § 431(13) (A) defines

"identification" to include, in the case of art individual, the

name, mailing address, occupation, and name of his or her

employer •
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During 1983 the Committee itemized 60 contributions,

each in excess of $200.00, from 27 different individuals without

disclosing the occupation and name of employer as required. On

August 1, 1984 the Committee supplied the Audit staff with a

listing of the occupation and name of employer for the 27

individuals to be included in a comprehensive amendment for 1983.

Tne amendment was filed on August 2, 1984.

Recommendation

The Audit staff recommends no further action in this matter •