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FEDERAL ELECTION CO,\\~\ISSION

11.!5 it' ~IRtll N.W.

W,\~ttlNG ION.D.\.:. ~O"&J

REPORT OF THE AUDIT DIVISION

ON THE

BEASLEY FOR CONGRESS COMMITTEE

• I. Background

A. Overview

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This report is based upon an audit of the Beasley for

Congress Committee (lithe 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, as amended ("the Act"). The audit was conducted

pursuant to Section 438(a) (8) of Title 2, United States Code,

which directs the Co~~ission to make frcm time to time audits

and field investigations with respect to reports and statements

filed under the prov~sions of the Ac~.

The Committee registered with the Federal Election

Commission on March 24, 1976 as the principal campaign committ~e

of Gerald L. Beasley, Jr., ~.D. for the office of United States

Representative f:om the Third (3rd) Congressional District of

Oklahoma. The Committee maintains its headquarters in Duncan,

Oklahoma.

The audit covered the period from March 17, 1976, the

initial coverage date of the first report filed by the Co~~ittee

to September 6, 1977, the final date of the last report filed by

the Committee. The Co~mittee reported an opening cash balance ~t

March 17, 1976 of $-0-, total receipcs ~nd total expenditures for

the period Murch 17, 1976 through December 31, 1976 of $25,215.90

and $25,211.78, respectively, and a closing cash balance at

December 31, 1976 of $4.12. 1/

This audit report is based on documents and working

papers which support each of the factual st3tcments. They for~

part of the record upon which the Co~mizsicn b~sed its decisions

on the m~t~crs in the report and were available to Commi~sioncrs

and appropriate staff for review.

11 The Co~~ittce w~s exempt from filing reports for the 1st - and 2nd qu~rtcrs of 197;. FEC Forms 3a were filed on

r~~W'~~rri1 7, 1977 and S~ptcmbcr 6, 1977 •

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B. Key Personnel

The principc31 officer's of the Committee for the period

covered by the audit were Mr. Jerry Gammill, Chairman, Mrs. Jack

Young, Co-Chairm~n, and Mrs. Pat Nimmo, Trc~surer.

c. Scope

The audit included such tests as verification of total

reported receipts and expenditures and individual transactions;

review of required supporting documentation; analysis of Committee

debts and obligation~; and such other audit procedures as deemed

necessary under the circumstances.

II. Auditor's Statement and Description of Findings

It is the opinion of the Audit staff, based upon examination

of the reports and statements filed and the records presented, that,

except for the deficiencies noted below, the ,reports and state~ents

of the Beasley for Congress Committee fairly present the finan~i~l

activities of the Committee for the period covered by the audit.

Further, except as noted below, no material problems in complying

with the Federal Election Campaign Act were discovered during the

course of the audit.

A. Receipt of Contributions

Section 441b of Title 2 of the united States Code

prohibits a corporation from making a contribution in connection

with any election to ~ny political office or for any candidate,

political committee, or other person knowingly to accept or receive

any contribution prohibited by this section.

A review of the Committee contributor records revealed

five (5) contributions from five (5) business entities that appeared

to be incorpor3ted. Further verification with the appropriate

Secretaries of State indicated th~t the entities were incorpor~tcd.

The matter was referred to the Office of General Counsel on J~~u~ry

25, 1978 where H~tter Under Review 502(78) was initiat~d. :urt~cr

information obt~ined from the cont~ibutors disclosed that four (~)

of the contributions tot~ling $110.00 were not drawn from cor~c~3~c

sources. Also, the Office of General Counsel has received ev~dc~c~

that the remaining contr±bution of S10.00 has been refunded by the

Committee. Based on these facts, the Conwission voted on June 13,

1978 to close the matter with no further action.

Recommcnd.:ltion

Based on the above facts, we reconunend no. further action on

this matter.

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Candidate/Committee:

State: Oklahoma

District: 3

Location: Ardmore

CONGRESSICNAL AUOIT ~E?ORT

Gerald L. Beasley, Jr. - 7/12/78

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Political ~arty Affiliation: Republican

Major Opponentes): Wes Watkins (Democrat)

Other Candidates ~uci:ad: Wes Watkins(Democrat) 5/26/78

Charles Ward (D) Gary Payne (D) - 5/22/78

Hamp Baker (D) Tom Pate -(D)

Votes Cast: GeMerai ~1ec~icn

PrimarJ ~lec~ion

Wes Watkins (0) -- 151,271 (82%) Gerald Beasley, Jr. -- 31,732 (17.2%)

Gerald Beasley, Jr. -- 2,414

Tom Pate -- 2,390

Tota' 1 t'\_ ~~~Q""-- .._ 10..). ~c~ , • •'Q~,·~d· _. ... • $25,215.90

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Total Expendi:ur~s for ?~riod: $25,211.78

First ~iec:ad (if appTicJble): N/A
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FEDERAL ELECTION CO~1,\\ISSION

1\2:; 1\ ~l~H 1 ,,\\

\\'.-\~HI:\'Cl()' l) l . 2()4b

ADDITIONAL INFORMATION REGARDING 'tHIS ORGANIZATION

MAY BE 1DC'ATED IN A CDMPLETED OOMPLIANCE ACIION

FnE RELEASED BY THE OOM-1ISSION AND MADE PUBLIC m

'!HE PUBLIC REOORDS OFFICE. IDR '1HIS PARTICULAR

ORGANIZATION t S cn1PIE1'ED OOME'LIANCE ACl'ION FnE

SIMPLY ISK. FOR mE PRESS SUt+fARY OF MJR if s .J.-

mE PRESS St.Jr+1ARY mIL PROVIDE A BRIEF HISTORY OF

'!HE CASE AND A SUM1ARY OF '!HE AcrIONS TAKEN, IF' Mfi.•

Audit!! /o~-,