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 mj 

the threshold 

requirements for 

substantial compliance 

withthe A. - ' I: .• -...'ii 

determij^s'wiicilKM ijucominiiicc complied u i|! 

thelimua-'^-is, 

prohibiti.^^ :-.. l 

disclosure requirements 

of the Act. 

Draft Final Audit Report of the 

Audit Division on the Ohio 

Republican Party State Central & 

Executive Committee 

(January 1, 2007 - December 31, 2008) 

Ahout the Committee ^ .:x 

The Ohio Republican Party S Central & Executive Committee 

is a state party committee h^' t-t^ btered in Columbus, Ohio. For 

more information, see thi-. art i-:. i'l? Committee Organization, 

P-2. 4 

Financial^tivit]^2) 

• Receipts \ 

o Contributions ix- ~ • idividuals 

o T ^* • ributions fi !'»-1 "tical 

( :i. sses 

'I'. I•;•: Affiliai ^ 

Ti^stere :.•. fjOeral 

Acc| 0 

Offse -(Other Receipts 

o 

o 

Total Recl^^pts 

JDisbursemi 

f| Expenditures 

is of Contributions 

Independent Expenditures 

'oordinated Expenditures 

Federal Election Activity 

o Other Disbursements 

Total Disbursements 

$ 3,058,229 

1,666,512 

11,851,559 

2,385,909 

1,310,775 

$20,272,984 

$ 5,304,397 

1,747,000 

50,000 

13,003 

10,710,668 

1,345,414 

$ 19,170,482 

Future Action, 

The Conunission may 

uiitiate an enforcement 

action, at a later time, 

with respect to the matter 

discussed in this report. 

Finding and Recommendation (p. 3) 

• Reporting of Debts and Obligations 

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

Division on the 

Ohio Republican Party State 

Central & Executive Committee 

(January 1, 2007 - Decer^^ 31, 2008) 

V 
Table of Contents 

Part III. Summary 

Finding and Recommendation ^ 

V 

Part IV. Finding and Recommendation % 

Reportmg of Debts and Obligations 

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Page 

Parti. Background 

Authority for Audit 1 

Scope of Audit 1 

Part II. Overview of Committee 

Committee Organization ^ ^ 2 

Overview of Financial Activity 2 
Parti 

Background 

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 f Hf|mvestigations of any 

political committee that is required to file a report under 2 U.S C^,. 54^. Prior to 

conducting any audit under this subsection, the Commissiivi:. perform an mtemal 

review of reports filed by selected committees to deterniuL; ;;• t-..- - .-.lorts filed by a 

particular committee meet the threshold requurement- fo-Tubstan .. . •- npliance with the 

Act. 2U.S.C. §438(b). \ 

Scope of Audit ^ 

Following Commission approved procedures, the Ai .•' -1.^^ e'^luated various risk 

factors and as a result, this audit examined: 

1. The disclosure of individual contS*' ••-'s' occupatic:i ••-1' :iame of employer. 

2. The disclosure of disbursements, <.. - . *)ligation^ 

3. The disclosure of expenses allocated%. -..- "".-t-. rai anu ri^ix-xederal accounts. 

4. The consistency between reported figi 

5. The completeness o" „ 

6. Other committee rperati • .-cessary to ^e review: 
Part II 

Overview of Committee 

Committee Organization 

Important Dates 

• Dateof Registration October 5,1982 . 

• Audit Coverage January 1,2007^S^^ber 31, 2008 

Headquarters Columbus, oytSr 

Bank Information 

• BanK Depositories Iwo 

• Bank Accounts lOFj^lfeli^ ixNon-fS?!^:.'. 

Treasurer 

• I reasurer When Audit Was Conducted 

4 

J F 

V KiulHcH 

(a- •• • "s rgp 

v. 

g January 2J, i( 'present 

• Treasurer During Period Covered by Audit Ms. ^ 1 h^wn January 28, l999 - January 

23,20( • ^ 

Management Information 

• Attended FEC Campaign Finance Semii* 

• Who Handled Accounting and Recordkee^g [ r 

Tasks % 

T.i.T^-= 1 

Overview of Fin! 

Audited A 

bicial Activity 

mounts) 

Cash on \^d @ Januar^^. 2ii07 > $ 172,248 

Receipts - \ 

o Contribut^^&-om Individ!: Is ^ 3,058,229 

o Contribution^^Hp Political (lommittees 1,666,512 

o Transfers fromT^l^ates A 11,851,559 

o Transfers from N(Jfl^(L-i if^Accounts 2,385,909 

o Offsets/Other Receipt^ 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 

Finding and Recommendation 

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 reco^^S^dation, ORP 

amended its reports to disclose these debts. (For more detail ^r^? p. 4) 

V 

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Part IV 

Finding and Recommendation 

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. 

Legal Standard 

A. Continuous Reporting Required. A political comiwee mus'^'.:-close the amount 

and nature of outstanding debts and obligations unti^^se^ebts aio^AMneuished. 2 

U.S.C §434(b)(8) and 11 CFR §§104.3(d) andlO4i09(a)> 

B. Separate Schedules. A political committw^-'^Mfiles^^atescheduK-ym debts 

owed by and to the committee with a statement expa :^e^ircumstancds and 

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

§104.11(a). 

Ik. 

C. Itemizing Debts and Obligations. % 

• Once it has been outstanding 60 d^s fro-. 'I.. >' '.i^urred, a debt of $500 or 

less must be repi the next r^^fl y scheo^d report. 

• A debt exceeq ) . st be discl^d in the report that covers the date on 

which the ^€ . isincui .-.d. 11 CFR%04,11(b). 

Facts and Analysis ^ 

A. Fjn-i ^ 

Disglt • :.- -eports file« y> ()RP ougsg the audit period did not disclose any debts owed. 

Althouj;:. (JRP paid the i . iffity opinvoices timely, it carried outstanding balances with 

five vendoi - i lkt were not ^closed as debts. During audit fieldwork, a review of vendor 

invoices and cofiputer fileMientified debts totaling $1,195,892 that should have been 

disclosed on Schcti .-sD^ebts and Obligations). The vendors consistently invoiced 

ORP for the balanc Some of the undisclosed debts were outstanding prior to the 

begmning of the audlfperiod. 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff informed 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. 

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