FEDERAL ELECTION COMMISSION 

WASHINGTON, D.C. 20463 

November 14, 2008 

Douglas Johnson, Treasurer 

Physician Hospitals of America Political Action Committee 

2600 South Minnesota Ave. 

Suite 202 

Sioux Falls, SD 57105 

Dear Mr. Johnson: 

Attached, please find the Report of the Audit Division on Physician Hospitals of 

America Political Action Committee. The Commission approved this report on 

November 6, 2008. 

The Commission approved Final Audit Report will be placed on the public record 

on November 19,2008. Should you have any questions regarding the public release of 

this report, please contact the Commission's Press Office at (202) 694-1220. 

Any questions you may have related to matters covered during the audit or in the 

report should be directed to Peggy Jo Gilley or Alex R. Boniewicz of the Audit Division 

at (202) 694-1200 or toll free at (800) 424-9530. 

Sincerely, 

.:;f~9~ Wanda J. Thomas 

Acting Assistant Staff Director 

Audit Division 

Attachment as stated 
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 met 

the threshold 

requirements for 

substantial compliance 

with the Act. I The audit 

determines whether the 

committee complied with 

the limitations, 

prohibitions and 

disclosure requirements 

ofthe Act. 

Future Action 

The Commission may 

initiate an enforcement 

action, at a later time, 

with respect to any ofthe 

matters discussed in this 

report. 

Report of the 

Audit Division on the 

Physician Hospitals of America 

Political Action Committee 

January 1,2005 - December 31,2006 

About the Committee (p. 2)
 

The Physician Hospitals of America Political Action Committee
 

(PHA PAC) is the separate segregated fund of Physician
 

Hospitals of America. PHA PAC qualified for multi-candidate
 

status on April 20, 2005, and is headquartered in Sioux Falls, SD.
 

For more information, see the chart on Committee Organization,
 

p.2. 

Financial Activity (p. 2) 

•	 Receipts 

o	 From Individuals $ 153,875 

o	 From Other Political Committees 5,000 

o	 Refunds ofContributions to 

Federal Candidates/Committees 10,000 

o	 Total Receipts $ 168,875 

•	 Disbursements 

o	 Contributions to Federal 

Candidates/Committees $ 193,493 

o Operating Expenditures	 945 

o Other Disbursements	 5,000 

o Total Disbursements	 $ 199,438 

Findings and Recommendations (p. 3) 

Based on the limited examination ofthe reports and statements 

filed, and the records presented by Physician Hospitals of 

America Political Action Committee, no material non-compliance 

was discovered. 

I 2 U.S.C. §438(b). 
Table of Contents
 

Part I. Background 

Authority for Audit 

Scope of Audit 

Page 

Part II. Overview of Committee 

Committee Organization 

Overview of Financial Activity 

2 

2 

Part III. Findings and Recommendations 3 
Part I 

Background 

Authority for Audit 

This report is based on an audit of the Physician Hospitals of America Political Action 

Committee (PHA PAC), 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 field investigations 

of any political committee that is required to file a report under 2 U.S.C. §434. Prior to 

conducting any audit under this subsection, the Commission must perform an internal 

review of reports filed by selected committees to determine if the reports filed by a 

particular committee meet the threshold requirements 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, the scope ofthis audit was limited to the following: 

1. The disclosure of occupation/name of employer regarding individual contributions. 

2. The consistency between reported figures and bank records. 
2 

Part II 

Overview of Committee 

Committee Organization 

Important Dates PHAPAC2 

• Date of Registration January 5, 2004 

• Audit Coverage January 1,2005 - December 31, 2006 

Headquarters Sioux Falls, SO 

Bank Information 

• Bank Depositories Two 

• Bank Accounts Two Checking accounts 

Treasurer 

• Treasurer When Audit Was Conducted Douglas Johnson, 

• Treasurer During Period Covered by Audit Douglas Johnson 

Management Information 

• Attended FEC Campaign Finance Seminar No 

• Used Commonly Available Campaign 

Management Software Package 

Yes 

•	 Who Handled Accounting and Paid Staff 

Recordkeeping Tasks 

Overview of Financial Activity 

(Audited Amounts) 

Cash on hand (ii} January 1, 2005 

0 From Individuals 

0 From Other Political Committees 

0 Refunds of Contributions to Federal 

Candidates/Committees 

Total Receipts 

Contributions to Federal
 

Candidates/Committees
 

0 

0 Operating Expenditures 

0 Other Disbursements 

Total Disbursements 

Cash on hand @ December 31, 2006 

$ 44~247

$ 153,875 

5,000 

10,000 

$ 168,875 

$193,493 

945 

5,000 

$ 199,438 

$ 13,684 

2 On January 9, 2008, the name of this committee was changed from American Surgical Hospital Association 

Political Action Committee. 
3 

Part III 

Findings and Recommendations 

Based on the limited examination of the reports and statements filed, and the records 

presented by Physician Hospitals of America Political Action Committee, no material 

non-compliance was discovered.