SANDLER, RBIFF, YOUNG & LAMB, P.C. 

September 17,2013 

Mr. Thomas Hintermeister 

Assistant Staff Director 

Audit Division 

Federal Election Commission 

999 E Street, N.W. 

Washington, D.C. 20463 

Dear Mr. Hintermeister: 

This letter will serve as the response of the Nebraska Democratic Party ("NDP") to the 

Interim Audit Report ("Audit Report") of the Federal Election Commission's Audit Division ("the 

Audit Division") for the period covering the NDP's financial activities for 2009 and 2010. 

The response to each of the Audit Division's three findings is as follows: 

Finding #1 

The Interim Audit Report's C'lAR") first finding involves recordkeeping for committee 

payroll expenses. In the lAR the Audit staff notes that the NDP had provid^ documentation that 

for those employees who were paid either whole or in part with non-federal funds spent 25% or less 

of their time on activities in connection with federal elections or federal election activities. The 

committee has provided such documentation but the lAR recommends that the NDP maintain such 

records contemporaneously with payroll activities. Thus, the NDP has established procedures to 

ensure that the committee maintain contemporaneous documents to certify that those employees 

who work 25% or less of their time in any month for any payroll paid either all or in-part with nonfederal funds. 

1025 VERMONT AVENUE, N.W., SUITE 300 • WASHINGTON, DC 20005 • TEL: (202) 479-1 HI • FAX: (202) 479-1115 
Finding #2 

The lAR's second finding involves the NDP's failure to disclose certain debts during the 

2010 election cycle. In response to this finding, the NDP has amended its reports to disclose these 

debts vsrith the following exceptions: 

1) TCN - Payments to TCN were for non-federal campaign activity. These payments were 

initially made from non-federal accounts. However, due to non-federal cash flow reasons, 

the committee decided to make some payments to TCN from its federal accounts instead of 

making them directly from the non-federal account. As these debts were incurred by the 

non-federal account of TCN and only paid by the federal account due to cash flow 

considerations, the NDP objects to the inclusion of these debts on their federal reports. 

Unless otherwise instructed by the Commission, the NDP does not intend to include this 

debt on amendments that will be filed with the Commission. 

2)" Goldenrod - The NDP believes that the Audit Division has overstated debts owed to 

Goldenrod by $1,000. Thus, the Commission has overstated debt to Goldenrod by $1,000. 

The NDP's amendments will exclude the $1,000 billing error by Goldenrod. 

Finding #3 

The lAR's third finding involves expenditures in support of the Democratic nominee for 

House of Representatives for the 2"^ District, Tom White. According the lAR, the Commission 

contends that the NDP exceeded its expenditure limit granted in accordance with 2 U.S.C. § 

441a(d) by $34,789. The NDP disagrees with this Finding, in part, as follows: 

1) Custom Lettering Service. Inc. - The payment of $577.80 to Custom Lettering Service 

Inc. was merely for a sign that was placed in the window of the party's field office 

during the 2010 general election period. The sign was not intended as a public 

communication in was placed next to the sign of many other Nebraska candidates as is 

common place for party offices. 

2) Mack Crounse Group - Postcards printed by Mack Grouse Group at a cost of $4,596.00 

were hand stamped by volunteers and labels were placed by volunteers by hand on the 

postcards at party headquarters. The committee inadvertently included this payment on 

Line 25 of its reports. The report will be amended to move this expense to Line 30(b). 

Attached to this letter is a declaration of Jim Rogers, Executive Director of the NDP, 

which attests that these mailings were distributed through the use of volunteers and is 

therefore exempt from the expenditure limits under 2 U.S.C. § 431(8)(B)(ix). 
3) Expenditure Limit - The committee acknowledges that it only received $80,000 from 

the Democratic Congressional Campaign Committee prior to making expenditures. 

However, the NDP notes, and the Commission ^ould acknowledge that the DCCC 

fiirtlier ceded $6,600 to the NDP in 2012. Although this authority was not ceded in a 

timely fashion, the Commission should acknowledge that this amount remained unspent 

and therefore should reduce the amount of the excessive expenditure. See Final Audit 

Report of the Democratic Executive Committee of Florida, 2008 Cycle, p. 10. A copy 

of the 2012 letter from the DCCC ceding additional authority is attached to this 

response. 

Additionally, the NDP acknowledges that it inadvertently and incorrectly classified GOTV 

calls payable to Angle Masta^i Matthews Political Strategies as generic GOTV calls. This error 

was caused by a miscommunication with the White campaign. The NDP will amend its reports to 

include these expenditures on Schedule F, Line 2S. 

If you require any further information, or have any other questions, please call me at (202) 

479-1111. 

Sincerely, 

NeilReiff 

Counsel to the Nebraska Democratic Party