Final Audit Report of the 

Commission on the 

Friends of Todd Yoimg 

Februaiy 12, 2009 - December 31, 2010 

Why the Audit 

Was Done 

Federal law permits the 

Conunission to conduct 

audits and field 

investigations of any 

political committee that is 

requured to file reports 

under the Federal 

Election Campaign Act 

(die Act). Tfae 

Conunission generally 

conducts sucfa audits 

wfaen a committee 

appears not to faave met 

the tfaresfaold 

requirements for 

substantial compliance 

widi the Act.* The audit 

determines wfaetfaer the 

committee complied with 

tfae limitations, 

profaibitions and 

disclosure requirements 

of tfae Act. 

Future Action 

Tfae Conunission may 

initiate an enforcement 

action, at a later time, 

with respect to any of the 

matters discussed in this 

report. 

About the Campaign (p. 2) 

Friends of Todd Young is tfae principal campaign committee for 

Todd C. Young, Republican candidate for the U.S. House of 

Representatives from the state of Indiana, 9*^ District, and is 

faeadquartered m Bloomington, Indiana. For more information, 

see tfae cfaart on the Campaign Organization, p. 2. 

Financial Activity (p. 2) 

• Receipts 

o Contributions from Individuals 

o Contributions from Other 

Political Conunittees 

o Transfers from Autfaorized 

Committees 

o Offsets to Operating Expenditures 

Total Receipts 

• Disbursements 

o Operatrng Expenditures 

o Contribution Refimds 

o Contributions to Political 

Committees 

Total Disbursements 

$ 1,708,269 

233,843 

14,702 

7,404 

$ 1,964^18 

$ 1,926,326 

18,200 

5,000 

$ 1,949,526 

Commission Findings (p. 3) 

• Receipt of Profaibited Contributions (Finding 1) 

• Receipt of Contributions in Excess of tfae Limit (Finding 2) 

• Failure to File 48-Hour Notices (Fmdmg 3) 

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

Commission on the 

Friends of Todd Young 

February 12, 2009 - December 31, 2010 
Table of Contents 

Page 

Parti. Backgroimd 

Autfaority for Audit 1 

Scope of Audit 1 

Audit Hearmg 1 

Part II. Overview of Campaign 

Campaign Organization 2 

Overview of Financial Activity 2 

Part III. Smnmaries 

Conunission Findings 3 

Part IV. Commission Findings 

Finding 1. Receipt of Profaibited Contributions 4 

Findmg 2. Receipt of Contributions in Excess of tfae Limit 7 

Findings. Failure to File 48-Hour Notices 11 
Parti 

Backgroimd 

Authority for Audit 

Tfais report is based on an audit of Friends of Todd Young (FOTY), undertaken by tfae 

Audit Division of tfae Federal Election Commission (tfae Conunission) m accordance witfa 

tfae Federal Election Campaign Act of 1971, as amended (tfae Act). Tfae Audit Division 

conducted tfae audit pursuant to 2 U.S.C. §438(b), wfaicfa permits tfae Commission to 

conduct audits and field investigations of any political committee tfaat is required to file a 

report under 2 U.S.C. §434. Prior to conducting any audit under this subsection, the 

Conunission must perform an internal review of reports filed by selected conimittees to 

determine whetfaer tfae reports filed by a particular committee meet tfae threshold 

requurements for substantial compliance with the Act. 2 U.S.C. §438(b). 

Scope of Audit 

Following Commission-approved procedures, the Audit staff evaluated various risk 

factors and as a result, this audit examined: 

1. tfae receipt of excessive contributions and loans; 

2. tfae receipt of contributions from profaibited sources; 

3. tfae disclosure of contributions received; 

4. tfae disclosure of individual contributors' occupation and name of employer; 

5. tfae consistency between reported figures and bank records; 

6. tfae completeness of records; and 

7. other committee operations necessary to the review. 

Audit Hearing 

FOTY declined the opportunity for an audit hearing before the Conunission on tfae 

matters presented m this report. 
Part II 

Overview of Campaign 

Campaign Organization 

Important Dates 

• Date of Registration February 20,2009 

• Audit Coverage February 12,2009 - December 31,2010 

Headquarters Bloomington, Indiana 

Bank Information 

• Bank Depositories One 

• Bank Accounts One cfaeckuig accoimt 

Treasurer 

• Treasurer When Audit Was Conducted Larry Ness 

• Treasurer During Period Covered by Audit Connie K. Nass 

Management Information 

• Attended Conunission Campaign Finance 

Seminar 

No 

• Wfao Handled Accounting and 

Recordkeeping Tasks 

Paid Staff 

Overview of Financial Activity 

(Audited Amounts) 

Cash-on-hand @ February 12,2009 $ 0 

Receipts 

o Contributions from Individuals 1,708,269 

o Contributions from Otfaer Political 

Conunittees 233,843 

o Transfers from Autfaorized Committees 14,702 

o Offsets to Operating Expenditures 7.404 

Total Receipts $ 1,964,218 

Disbursements 

o Operating Expenditures 1,926,326 

o Contribution Refunds 18,200 

o Contributions to Political Committees 5,000 

Total Disbursements $ 1,949,526 

Cash-on-hand @ December 31,2010 $ 14,692 
Part III 

Summaries 

Commission Findings 

Finding 1. Receipt of Prohibited Contributions 

During audit fieldwork, a review of contributions revealed that FOTY received 24 

apparent profaibited contributions totaling $19,700. FOTY faad refimded some of tfaese 

contributions, albeit in an untimely manner. 

In response to tfae Interim Audit Report recommendation, FOTY representatives provided 

documentation demonstrating that two contributions, totaling $600, were not prohibited 

contributions and that FOTY had refimded tfae remaining apparent profaibited 

contributions. Tfae Audit staff concluded tfaat FOTY received profaibited contributions 

totaling $19,100 and faas refimded all of tfaese contributions, albeit in an untimely 

manner. 

Tfae Commission approved a fmding tfaat FOTY received $19,100 in profaibited 

contributions. (For more detail, see p. 4.) 

Finding 2. Receipt of Contributions in Excess of the Limit 

During audit fieldwork, the Audit staff reviewed contributions from mdividuals. This 

review indicated that FOTY had received apparent excessive contributions totaling 

$94,854. These errors occurred as a result of FOTY not resolving tfae excessive portion 

of contributions eitfaer by forwarding a presumptive letter to its contributors or by issuing 

a refimd in a timely manner. 

In response to tfae Interim Audit Report recommendation, FOTY representatives provided 

documentation demonstrating tfaat FOTY faad materially resolved tfae excessive 

contributions, albeit in an untimely manner. 

Tfae Conunission approved a finding that FOTY received $94,854 in excessive 

contributions. (For more detail, see p. 7.) 

Finding 3. Failure to File 48-Hour Notices 

During audit fieldwork, a review of contributions received during the 48-faour filing 

periods revealed that FOTY failed to file 48-hour notices for 51 contributions totaling 

$75,700. Most of the unfiled notices were for general election contributions. 

In response to the Interim Audit Report recommendation, FOTY representatives stated 

tfaat tfaey faad no additional information to provide in connection witfa tfais fmdmg. 

The Commission approved a finding that FOTY failed to file 48-faour notices totaling 

$75,700. (For more detail, see p. 11.) 
Part IV 

Commission Findings 

Finding 1. Receipt of Prohibited Contributions 

Summary 

During audit fieldwork, a review of contributions revealed that FOTY received 24 

apparent prohibited contributions totaling $19,700. FOTY had refimded some of these 

contributions, albeit in an untimely manner. 

In response to the Interim Audit Report recommendation, FOTY representatives provided 

documentation demonstratmg that two contributions, totalmg $600, were not prohibited 

contributions and that FOTY had refimded the remaining apparent profaibited 

contributions. Tfae Audit staff concluded tfaat FOTY received profaibited contributions 

totaling $19,100 and faas refunded all of tfaese contributions, albeit m an untimely 

manner. 

The Commission approved a fmding that FOTY received $19,1(X) in prohibited 

contributions. 

Legal Standard 

A. Receipt of Prohibited Contributions - General Prohibition. Candidates and 

conunittees may not accept contributions (in the form of money, in-kind contributions or 

loans) from the general treasury fimds of corporations. This profaibition applies to any 

incorporated organization, uicluding a non-stock corporation, an mcorporated 

membersfaip organization, and an incorporated cooperative. 2 U.S.C. §441b. 

B. Definition of Limited Liability Company. A limited liability company (LLC) is a 

business entity recognized as an LLC under tfae laws of tfae State in wfaicfa it was 

establisfaed. 11 CFR §110.1(g)(1). 

C. Application of Limits and Prohibitions to LLC Contributions. A contribution 

from an LLC is subject to contribution limits and prohibitions, depending on several 

factors, as explamed below. 

1. LLC as Partnersfaip. Tfae contribution is considered to be from a partnersfaip if tfae 

LLC cfaooses to be treated as a partnersfaip under Intemal Revenue Service (IRS) 

tax rules, or if it makes no cfaoice at all about its tax status. A partnersfaip 

contribution may not exceed $2,400 per candidate, per election, in tfae 2010 

election cycle. Sucfa a contribution must be attributed to eacfa lawfiil partner. 

11 CFR §110.1(a), (b), (e) and (g)(2). 

2. LLC as Corporation. The contribution is considered to be from a corporation— 

and is barred under the Act—if tfae LLC cfaooses to be treated as a corporation 

under IRS rules, or if its sfaares are traded publicly. 11 CFR §110.1(g)(3). 
3. LLC witfa Single Member. Tfae contribution is considered to be from a single 

individual if the LLC is a single-member LLC that has not cfaosen to be treated as 

a corporation under IRS rules. 11 CFR § 110.1(g)(4). 

D. Limited Liability Company's Responsibility to Notify Recipient Committee. At 

the time it makes the contribution, an LLC shall provide to the recipient committee 

information on how tfae contribution is to be attributed and affirm that it is eligible to 

make die contiibution. 11 CFR § 110.1(g)(5). 

E. Organizations Financing. Organizations that are not political committees under the 

Act tfaat make contributions and expenditures, but do not qualify as political committees 

under 11 CFR 100.5, must demonstrate tfarougfa a reasonable accounting metfaod tfaat tfae 

organization faas received sufficient fimds subject to tfae limitations and profaibitions of 

tfae Act to make sucfa contiribution, expenditure or payment. 11 CFR § 102.5(b). 

F. Questionable Contributions. If a committee receives a contribution tfaat appears to 

be profaibited (a questionable contribution), it must follow tfae procedures below. 

1. Widim 10 days of the treasurer's receipt of the questionable contribution, the 

conimittee must either: 

• Retum the contribution to the contributor without depositing it; or 

• Deposit the contribution (and follow the steps below). 11 CFR §103.3(b)(1). 

2. If the conunittee deposits the questionable contribution, it may not spend tfae 

fimds and must be prepared to refimd tfaem. It must tfaerefore maintain sufficient 

fimds to make tfae refimds or establisfa a separate account in a campaign 

depository for possibly illegal contiibutions. 11 CFR §103.3(b)(4). 

3. Tfae conunittee must keep a written record explaining wfay tfae contribution may 

be profaibited and must include tfais information wfaen reportmg tfae receipt of the 

contiribution. 11 CFR § 103.3(b)(5). 

4. Within 30 days of the treasurer's receipt of the questionable contribution, the 

conunittee must make at least one written or oral request for evidence that the 

contribution is legal. Evidence of legality includes, for example, a written 

statement from the contributor explaining why tfae contribution is legal or an oral 

explanation tfaat is recorded by tfae conunittee in a memorandum. 

llCFR§103.3(b)(l). 

5. Witfain tfaese 30 days, tfae committee must either: 

• Confirm the legality of the contribution; or 

• Refimd the contribution to the contributor and note the refimd on the report 

covering tfae period m wfaicfa tfae refimd was made. 11 CFR §103.3(b)(l). 

Any contribution tfaat appears to be illegal or is deposited into a campaign 

depository sfaall not be used for any disbursements by tfae political committee 

until tfae contribution faas been determuied to be legal. Tfae political conimittee 

must eitfaer establisfa a separate account in a campaign depository for sucfa 

contributions or maintain sufficient fimds to make all sucfa refimds. 11 CFR 

§103.3(b)(4). 
Facts and Analjrsis 

A. Facts 

During audit fieldwork, tfae Audit staffs sample review of contributions received by 

FOTY identified contributions diat appeared to be from profaibited sources. As a result, 

tfae Audit staff performed a review of all deposit batcfaes for profaibited contributions. 

Tfais full review identified tfae following possible profaibited contributions: 

• 16 cfaecks from LLCs totaluig $14,650; and 

• eigfat cfaecks from corporations totaling $5,050. 

For tfae contributions from corporations, tfae Audit staff verified tfae corporate status of 

tfae entities, as of the date of the contribution, witfa tfae various Secretary of State offices 

and a registered agent of a company. For contributions from the LLCs, FOTY provided 

no documentation that stated whetfaer tfae companies elected to be treated as a partnersfaip 

or corporation for tax purposes. 

FOTY did not maintain a separate account for tfae possible profaibited contributions. A 

review of casfa balances determined tfaat FOTY did not maintam sufficient funds to make 

refimds of tfae possible profaibited contributions. 

Prior to audit fieldwork, FOTY sent out letters to contributors regarding tfae 

permissibility and allocation of tfae possible profaibited LLC and corporate contributions. 

Specifically, FOTY sent diese letters on Marcfa 11,2011, and May 6,2011. 

Of tfae 24 possible profaibited contributions totaling $19,700 identified by tfae Audit staff, 

FOTY refimded contributions from corporations totaling $3,750; faowever, FOTY made 

tfaese refimds in an untimely manner. Tfaerefore, tfae remaining amount of possible 

profaibited contiibutions is $15,950 ($19,700 - $3,750). 

B. Interim Audit Report & Audit Division Recommendation 

Tfae Audit staff discussed this matter with FOTY representatives at tfae exit conference 

and provided a schedule of tfae apparent profaibited contributions identified in the review. 

A FOTY representative stated that they were working on obtauiing more documentation. 

In response to the exit conference, FOTY representatives provided some copies of letters 

that had been sent to contributors requesting information about the permissibility of their 

contribution. However, FOTY sent all the letters subsequent to the 2010 election cycle 

and the Audit staff received no further infonnation relating to the 24 possible prohibited 

contributions it identified. 

The Interim Audit Report recommended that FOTY: 

• Provide evidence demonstrating tfaat tfae remaining 20 contributions^ in question 

were made with permissible fimds; 

^ The primary election was on S/4/2010. The cash-on-hand analysis showed that, on 4/28/2010, fimds 

were not sufficient to make ail the necessary refiinds. 

^ It should be noted that one of the contributions was only partially refunded. 
• Refimd $15,950, the remauiing amount of apparent prohibited contributions that 

either faas not been refimded or faas not received a statement or explanation from 

tfae contributor attesting to the permissibility of the contributions; 

• Disgorge the remauiing funds ($15,950) to the U.S. Treasury and provide 

evidence of such disgorgement; or 

• If fimds are not available to make tfae necessary refimds or disgorgement, disclose 

the contributions requu:mg refimds on Schedule D (Debts and Obligations) until 

fimds became available to satisfy this obligation. 

C. Committee Response to the Interim Audit Report 

In response to tfae Interim Audit Report, FOTY provided documentation demonstrating 

tfaat two of the contributions questioned, totaling $600, were not prohibited contributions 

because the contributor files federal uicome taxes as a partnership. Also, FOTY provided 

documentation demonstrating that the remaining 22 contributions were refunded in an 

untimely manner. 

The Audit staff concluded that FOTY accepted 22 prohibited contiibutions totaling 

$19,100. FOTY refimded these contributions, albeit m an untimely manner. 

D. Draft Final Audit Report 

In the Draft Final Audit Report, tfae Audit staff acknowledged that FOTY provided 

documentation that demonstrated two contributions, totaling $600, were not from 

prohibited sources and had refimded tfae remauiing $19,1(X) in profaibited contributions, 

albeit in an untimely manner. FOTY's response to tfae Draft Fmal Audit Report did not 

address tfais matter. 

Commission Conclusion 

On June 21,2012, tfae Commission considered the Audit Division Recommendation 

Memorandum in whicfa tfae Audit staff recommended die Conunission find tfaat FOTY 

accepted $19,100 in profaibited contributions. 

Tfae Conunission approved tfae Audit staffs recommendation. 

Finding 2. Receipt of Contributions in Excess of the Limit 

Summary 

During audit fieldwork, the Audit staff reviewed contributions from individuals. This 

review indicated that FOTY had received apparent excessive contributions totaling 

$94,854. Tfaese errors occurred as a result of FOTY not resolving the excessive portion 

of contributions either by forwarding a presumptive letter to its contributors or by issuing 

a refimd in a timely manner. 

In response to the Interim Audit Report recommendation, FOTY representatives provided 

documentation demonstratmg that FOTY faad materially resolved the excessive 

contributions, albeit in an untimely manner. 
The Commission approved a finding that FOTY received $94,854 ui excessive 

contributions. 

Legal Standard 

A. Authorized Committee Limits. For the 2010 election, an authorized committee may 

not receive more tfaan a total of $2,400 per election from any one person. 

2 U.S.C. §441a(a)(l)(A), 11 CFR §§110.1(a) and (b) and 110.9. 

B. Handling Contributions That Appear Excessive. If a conimittee receives a 

contribution that appears to be excessive, the coinmittee must either: 

• Retum the questionable cfaeck to tfae donor; or 

• Deposit tfae contributions and keep enougfa money on faand to cover all potential 

refimds until tfae legality of tfae contribution is established. If deposited, the 

conimittee must seek a reattribution or a redesignation of the excessive portion, 

following the instructions provided in the Commission regulations (see below for 

explanations of reattribution and redesignation). If the committee does not 

receive a proper reattribution or redesignation within 60 days of receiving the 

excessive contribution, refimd the excessive portion to the donor. 

11 CFR §103.3(b)(3), (4) and (5). 

C. Joint Contributions. Any contribution made by more than one person, except for a 

contribution made by a partnership, shall mclude the signature of each contributor on the 

check, money order or other negotiable instrument or in a separate writing. A joint 

contribution is attributed equally to each donor unless a statement indicates tfaat tfae fimds 

sfaould be divided differently. 11 CFR §110.1(k)(l) and (2). 

D. Reattribution of Excessive Contributions. Commission regulations permit 

committees to ask donors of excessive contributions (or contributions tfaat exceed tfae 

committee's net debts outstanding) wfaetfaer they had intended their contribution to be a 

joint contribution from more than one person and whetfaer tfaey would like to reattribute 

tfae excess amount to anotfaer contributor. Tfae committee must inform the contributor 

diat: 

1. The reattribution must be signed by botfa contributors; 

2. Tfae reattribution must be received by tfae committee witfain 60 days of tfae 

conunittee's receipt of the original contribution; and 

3. The contributor may instead request a refimd of tfae excessive amount. 

llCFR§110.1(k)(3). 

Witfain 60 days of receiving tfae excessive contribution, tfae committee must eitfaer receive 

tfae proper reattribution or refimd the excessive portion to the donor. 11 CFR 

§§103.3(b)(3) and 110.1(k)(3)(ii)(B). Furdier, a political conunittee must retain written 

records conceming tfae reattribution in order for it to be effective. 11 CFR § 110.1(1)(5). 

Notwitfastanding tfae above, any excessive portion of a contribution tfaat was made on a 

written instrument imprinted witfa tfae names of more tfaan one individual may be 
attiributed among tfae mdividuals listed, unless instructed otfaerwise by tfae contributor(s). 

Tfae conunittee sfaall notify eacfa contributor: 

1. How tfae contribution was attributed; and 

2. Tfaat tfae contributor may instead request a refiind of tfae excessive amount. 

llCFR§110.1(k)(3)(ii)(B). 

E. Redesignation of Excessive Contributions. Tfae coinmittee may ask tfae contributor 

to redesignate tfae excess portion of tfae contribution for use in another election. The 

conunittee must inform tfae contributor tfaat: 

1. The redesignation must be signed by the contributor; 

2. The redesignation must be received by tfae committee within 60 days of the 

conunittee's receipt of the original contribution; and 

3. The contributor may instead request a refimd of the contribution. 

llCFR§110.1(b)(5)(ii)(A). 

Within 60 days of receiving the excessive contribution, the committee must eitfaer receive 

tfae proper redesignation or refimd tfae contribution to tfae donor. 11 CFR §§ 103.3(b)(3) 

and 110.1(b)(5)(ii)(A). Furtfaer, a political committee must retain written records 

conceming tfae redesignation in order for it to be effective. 11 CFR § 110.1(1)(5). 

Wfaen an individual makes an excessive contribution to a candidate's authorized 

committee, the campaign may presumptively redesignate the excessive portion to the 

general election if the contribution: 

1. Is made before that candidate's primary election; 

2. Is not designated in writing for a particular election; 

3. Would be excessive if treated as a primary election contribution; and 

4. As redesignated, does not cause the contributor to exceed any other contribution 

limit. 

The conimittee is requured to notify the contributor of the redesignation widiin 60 days of 

tfae treasurer's receipt of tfae contribution, and must offer tfae contributor the option to 

receive a refund instead. 11 CFR §110.1(b)(5)(i)(D)(ii). 

Facts and Analsrsis 

A. Facts 

During audit fieldwork, the Audit staff utilized a combination of sample testing and 

focused reviews to identify apparent excessive contributions from individuals totaling 

$94,854. This total is comprised of $94,554^, tfae projected dollar value of tfae sample 

errors, and $300, tfae result of a focused review of tfae remaining contributions. These 

apparent excessive contributions resulted from FOTY not resolving the excessive portion 

of contributions by forwarding a presumptive letter to its contributors, informing them of 

how their contribution had been redesignated/reattributed or refimding tfae excessive 

^ The sample error amount was projected using a Monetary Unit Sample with a 95 percent confidence level 

plus the result of a focused review of contributions not included in the sample population. The sample 

estimate could be as low as $53,689 or as high as $ 135,419. 
10 

contiribution. FOTY resolved excessive contributions totaling $11,820 m an untimely 

manner, by issuing refimds, prior to audit notification. 

B. Interim Audit Report & Audit Division Recommendation 

Tfae Audit staff discussed tfais matter at tfae exit conference and provided FOTY 

representatives witfa a schedule of the apparent excessive contributions. The 

representatives asked general questions about presumptive letters and issuance of 

refunds. 

In response to the exit conference, FOTY representatives submitted documentation 

relative to the apparent excessive contributions. The Audit staff received copies of three 

refimd checks, dated in August 2011 and totaling $550; two of these cfaecks were not 

negotiated. The Audit staff also received copies of presumptive letters dated August 5, 

2011, for excessive contributions totaling $21,450. 

As a result of the refimds issued prior to audit notification ($11,820), the refimds issued 

m response to the exit conference ($550) and the presumptive letters sent to contributors 

in response to the exit conference ($21,450), the remaining apparent excessive 

contiributions FOTY did not address totaled $61,034 ($94,854 - $11,820 - $550 -

$21,450). 

The Interim Audit Report reconunended that FOTY provide documentation 

demonstrating that contributions totalmg $61,034 were not excessive. Absent such a 

demonstration, FOTY should have resolved these apparent excessive contributions by 

either (1) sending presumptive redesignation/reattribution letters informing contributors 

about how the excessive portion of tfaeir contributions had been resolved and offering a 

refimd, (2) refimding the excessive portion of eacfa contiribution and providing evidence 

of sucfa refunds, (3) disclosing tfae contributions requiring refimd on Scfaedule D if fimds 

were not available to make tfae necessary refunds, or (4) makmg a payment of $61,034 to 

tfae U.S. Treasury and providing evidence of sucfa payment. 

C. Committee Response to the Interim Audit Report 

In response to the Interim Audit Report, FOTY provided copies of presumptive 

redesignation and/or presumptive reattribution letters sent subsequent to receivmg the 

Interim Audit Report. The Audit staff concluded that of tfae $94,854 m excessive 

contributions, FOTY demonstrated tfaat it faad resolved contributions totaling $77,896 

($21,450 + $11,820 + $550 + $44,076) in an untimely manner. FOTY materially 

complied witfa tfae Interim Audit Report recommendation. 

D. Draft Final Audit Report 

In tfae Draft Final Audit Report, tfae Audit staff acknowledged tfaat FOTY materially 

resolved tfae excessive contributions, albeit m an untimely manner. FOTY's response to 

tfae Draft Final Audit Report did not address tfais matter. 
11 

Commission Condusion 

On June 21,2012, tfae Commission considered tfae Audit Division Recommendation 

Memorandum in wfaicfa tfae Audit staff recommended the Conunission find that FOTY 

received $94,854 m excessive contributions. 

The Commission approved tfae Audit staffs recommendation. 

Finding 3. Failure to File 48-Hour Notices 

Summary 

During audit fieldwork, a review of contributions received during tfae 48-hour filmg 

periods revealed that FOTY failed to file 48-hour notices for 51 contributions totaling 

$75,700. Most of tfae unfiled notices were for general election contributions. 

In response to the Interim Audit Report recommendation, FOTY representatives stated 

that they had no additional mformation to provide in connection witfa tfais finding. 

Tfae Commission approved a finding tfaat FOTY failed to file 48-faour notices totaling 

$75,700. 

Legal Standard 

Last-Minute Contributions (48-Hour Notices). Campaign committees must file special 

notices regarding contributions of $1,000 or more received less tfaan 20 days but more 

tfaan 48 faours before any election in wfaicfa tfae candidate is runnmg. This rule applies to 

all types of contributions to any authorized conunittee of tfae candidate, including: 

• Contributions from tfae candidate; 

• Loans from tfae candidate and otfaer non-bank sources; and 

• Endorsements or guarantee of loans from banks. 11 CFR § 104.5(f). 

Facts and Analjrsis 

A. Facts 

During audit fieldwork, tfae Audit staff reviewed contributions of $1,000 or more 

received during tfae 48-faour notice filing period for the primary election (4/15/2010 -

5/01/2010) and for die general election (10/14/2010 -10/30/2010). FOTY failed to file 

48-hour notices for 51 contributions totaling $75,700, as summarized below. 

Primary General Total 

48-Hour Notices Not Filed $2,500 

(2) 

$73,200 

(49) 

$75,700 

(51) 

The contributions for whicfa 48-faour notices were not filed were from 41 individuals for 

$60,200, eight political committees for $13,500 and two LLCs for $2,000. 
12 

B. Interim Audit Report & Audit Division Recommendation 

The Audit staff discussed this matter witii FOTY representatives at the exit conference 

and provided a schedule of the contributions for wfaicfa 48-faour notices were not filed. 

FOTY representatives did not provide any comments on tfais matter. 

The Interim Audit Report recommended that FOTY eitfaer submit evidence tfaat die 48-

faour notices were filed in a timely manner or provide any additional comments it 

considered relevant. 

C. Committee Response to the Interim Audit Report 

In response to the Interim Audit Report, FOTY representatives stated that tfaey faad no 

additional information. 

D. Draft Final Audit Report 

In die Draft Final Audit Report, tfae Audit staff acknowledged diat FOTY representatives 

faad no additional comments or mformation on tfais matter. FOTY's response to tfae Draft 

Final Audit Report did not address tfais matter. 

Commission Conclusion 

On June 21,2012, tfae Conunission considered tfae Audit Division Reconunendation 

Memorandum in wfaicfa the Audit staff recommended the Conunission fmd that FOTY 

failed to file 48-hour notices totaling $75,700. 

The Commission approved the Audit staffs reconunendation.