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FEDERAL ELECTION COMMISSIOJ'

\\""SHISCTOS. Dc. ~63

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A83-88

. REPORT OF THE AUDIT OIVISION

, .ON 'rHE

GEORGIA FEDERAL ELECTIOKS CC~M!TTEE

I. Background

A. Overview

This report is based on an audit of the Georgia Federal

Elections Committee ("the Committeeft ), uncertaken by·the Auait

Division of the Federal Election Commissie~ in accordance with

the Commission's audit policy to deternine whether there bas been

Lt) compliance with the provisions of the ?ece:a.l Election Campaign . Act of 1971, as amended ("the Act"). The audit was co'ilducted . pursuant to Section 438(b) of Title 2 of the united States Coae

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

field investigations of any political co~~ittee required to file

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

any audit under this section, the Commission shall perform an

internal review of reports filed by selectee commi~tees to . aetermine if the reports filed by a particulat committee meet the

threshold tequitements for ,substantial co~?lianee with the Act.

The Committee registered with the Federal Election

Commission on ;June 14, 1976 and maintains i:s headquarters in

Atlanta, Georgia.

The audit covered the period J2~ua:y 1, 1981, through December 31, 1982. The Committee reportee a beginning cash

balance on January 1, 1981 of $2,823.'7; total receipts for the per~od of $222,071.24; total disburse:ents for the period of

$222,.692.93: and an ending cash balance c:: December 31, 1982 of

$2,201 •./8.

This report is based on docume~ts and work 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 reDort and were availa~l~ to Commissioners and

a??roprjate staff for review. "
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B. Kev Personnel

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The Treasurers of th~ Commit:ee curing t~e perloa

eoverea by the auait were Mr. Tommy Cole~an from January 1, -1981

through November 22, 19821 ana Mr. Paul ~eston ftom November 23,

1982 through December 31, '1982. The c~r:e~t Treasurer is Ms.

Carole Dabbs.

c. Scooe .. The audit included such tests as ve:ification of total

reported receipts and expenditures and incividual transactions;

review of required supporting aocumentatic~7 analysis of

Committee debts and obligations, and such other audit procedures

as deemed necessary under the circumstances•.

A. Misstatements of Financial A:tivitv

Section 434 (b) (2) and (4) of Title 2 United States Code

state, in part, that each report(s) shall disclose for the

In reporting period and the·calendar year t~e to:al a~ou~t of all

receipts and disbursements.

Du:ing the reconciliation of t~e Co~~ittee's re?orted

activity to the bank activity, it was dete:mined that the

Committee understa~ed both receipts and cisoursements by

$4,997.96.

This understatement was the ne~·:e5ult of the following reporting errors:

1) The Committee disclosed $115,000 in expenditures

on the pre-general election report schecules'3i however, the

detailed summary page disclosed only $110,000. Therefore the

Committee's expenditures were understated $5,000.00.

2) On November 18, 1982, the Committee received

$5,000 from the~proceeds of a loan secured by the Georgia Democratic Party. The Committee did not :e?c:t receipt of the

funds which resulted in a $5,000 unde:s~a:ement of receipts.

3) Minor reporting errors accounted" for the remaining

$2.04 differences. "

On November 25, 1983, the "Com~i:t*e filed amended

reports which materially corrected the =issta~ernents noted above.

Recommendation

The Audit staff recommends no fu:~~~: a:~ion in this matter.

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B. Itemization of Expenditures

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Section 434(b) (5) (A) 'of Title 2 ~dited States Code.

states that each report shall disclose th~ name ana aadress of

each person to whom an expenaiture in an a;;regate amount or

value in excess of $200 within the calenca: year is made by the

reporting committee to meet a 9anaidate c: co~ittee operating

expense, t0gethe~ with the date, amount, a~= purpose of such

operating expendlture.

A review of the Committee's ex~enditures reveale~ that

eleven expenditures totaling $16,584.84 which were in excels of

or aggregated in excess of $200.00 were not itemizea on tbe

'.' Commi ttee' s reports. This represents 16% of the number anc! 19'

of the dollar amount of exp~nditures- requi:ing itemization. The

Commi tt.ee was provided wi 1:h ·8 list of these ex;>enditures at the

close of fieldwork.

On March 25, 1983 the Committee ~iled amended reports which disclosed all of the expenditures ~e~~i:in9 ite~ization•

.0 Recommendation .. ..

The Audit staff recommends no furthe: action in this matter.

c. Matter Referred to the Office 0: General Counsel

C) A matte: noted durin~ the aucit ~as referred to the

Office of General Counsel.

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