SANDLER^ REIBP, YOUNO & LAMB, R C 

%temb6r23,2dll 

.Mr. T^pmas .Ujut0m 

.Ac%g i^s^i^tant -Staff Oirectpr 

Audif Division 

Federal Eljeicition Obinmission 

Wastogtpq» t);C, 20463' 

Dear'Mr. Hinteimeisilier: 

Thi$ l^er, aqd atMPhed, i^xliibit$ v^lljerv^ .as^ the; respMse gif .tjbi<^ it^^iocjatiQ EK0C;iutiVi^ 

(Spitiffiittee of Florida C-DECF'*) to tiie Interim Audit Report (("Audit R^ort!') of the Fedi»al 

Eleetian Commission's Audit Division •('ifhe.Aiudit Divisi:on'0 for ^e period ^covering the DECF's 

finaiicileil aetivities fof^ 2007^(12008.'. 

The jfispQpse; xo eaich rof^tiie:Audit Qiyi^ioni's thrae ^nd]iigs;;i's:a$ lf0llp.v^: 

:Finding:#I 

The Audii:t Diyi$i'0j!i'$ :fi£5t fin^g iieMes to aii ^ip^^ 0xices;$jtv^ coordinated party 

fexpeiidituire on .behalf of iAnfiiette Taddiejp. "The Audit repoft cortigptLy :$tates ithat tb:& DECTF r^^firt^d 

coordinated escpesdjitures of $95^108 on:l)ehalf .©f Ann^^ Tiaddeo; eandidatp for Congres <irL:2O08^. 

This amountis broken out into two parts. Fiistj ike DECF reported making.\coordinate.d 

eHpenditiires. of ;$8^,4QQ. for me^ta on l$eha]f of Aimeitte Tad<^^^ This am^jimt was repoitdid on 

Line '2^ atud ithe eominitteig utilized; its Giwii cp.Q^llm|t$d'e?j^^ ^eltias ia 

ipOrtiOn of tbi€ c;!;:iiordti^ted expenjditure'lj^ tfa^it Vva§ a^siped Iby pjgipaocfafib N&^^^ 

Committee to the Dempetatiic CpngressiOnar Campaign- C^ommittee ("DCCC''). Fnpr fo making 

tiiese ^penditures, the DCCC sent h letter to the DECF ^si^ng $17,900 of the coordinated 

e>cpenditure limit tO' the BBCF. Accibxdin| to: M m^TU^oiik^MCCC M DECF, .:n&. ^drtional' 

Ipt^r as^igtiing authOirity to the c^rt tte fpt^dl jiow&v'et, itis our unidgiS$|a^^ thl^ 

ipGCC had intended to- assi^i additional! authori% to the DECF to-msJ^e additional oTCpenditures:. 

This belief Is reinforced iby tiie fact that.thelDCCC made no additional eoordinatied'exipendi'tures on 

'behalf of Annette Taddeo. Thus, to!tal e^^p^ditures on biehEdf of AMette, Taddeo #(1 not exceed the 

combined; Udit of .S84< 200 for b$>th the.;D£QF ^ d DCC C At:^icli^d a3 Exhibit A, j^Iease Md a 

letter j^oiii Brian Svt(b,ordia) C!i;^un$!el tp; tiie I)CCC'th.at ^clmpvi^ledjg^^ the t>CCQ did npt use .thi$ 

authority-and:: $}at it is hi^ belieft^at i;t wasv>^.e;DCCC'$ intf^nt that tlie wthority be transferred tp 

the DECF. 

1025 VERMONT AVENUE^ N.W,, SLIITE.3O0:* WASHINGTON, ©C 20005: • TEL: (202) 47^-1111 • FAX: ,(202>479'.1115 
With respect tp the twp JQI^ pieces djisQ^isSied by the. Mtierini Audit jr^pM, these pieces were 

actually .prepared x^th substantial volunteer p#icip.9tion. therefpr^, :the mailipigs were cpvieired 

under :the volunteer activiiies exemption pur?uantit0;2 l^SS- S'S 43l(8)fiB^(ixi & (93(B)(vgai> 

Attached 35. Exhibit ;Bv|)ie$se fini apicti^iproivided to .tbe:.party fi^omM^Biizok, who-was 

present at the AiaU.ij&g.'' in the picture, yoii ;ean see jc^.py of one. of the maiiings te^^etKed by the 

Audit Dlvi$i;0fi. In ^6 ib^&kgtQund pfthe. picti^e,,ypu QSin sj^. sevj^'iai yplunteers w0rkih| on, 

sortiBg and b?3ScUisg.pf $b:e ms^.. ^thpi^^.tiikis tiie on]y dpcu^aefitary evideiice'^tiiattibe DECF 

was..aMe to locate, it is ourunderstanding that,.for each maiiling identi^ed by the Aixdit IPiyision, 

thia.t isufficient volunteer activity occurred, including: the biindling^ and sorting of the mail and 

piaciag ]Qi0.ihail in trays for delivery t<pi the post pf{ic<ei. tjiidei;^e.mPst leQetlt enfbrcement fnatters 

coii$idered by the Cpctuhissioni this^is.s.uMbient substa^^ vplunteef aptM^ to nieet the 

requirements of ithe volunteer exemption. S'eig:Matters 'Under Reviiew 5824 and 582S;'M^ 5^41. 

Notwi thstanding the above, it is our understanding ithat .thei Commission has:;indicated that it will, in 

tiie; future, provide, more clear gwdsmce as to'ti^e necessar^^ level of voliinteeF activi^in exempt 

miailingis. See Final Aiidit i^epidrt of the Washiii^pn State m^pcratic State Central Cpitunittee, 

2004 Election Cycle, p, 12.-^ 

Finding #2 

|ii this fining, the Audit: Divisip& noted: that the DBCF hadrijlade. Qjl;rt^ ri^Qr^g eirpiis 

with respect to the reporting of ^pprdiiiated ei^penditures for j^deral can.d|;ddtej5> The irepprt nptes 

that the DECF has ^-ready filed amendments; that materifally @orrect these errors. 

Finding #3 

Fiiidmg. 3 questions wh^ several aspfects. of allpcatipn -of cei^ by the 

DECF were' properly paid for or overpaid witii non^^fedeiEd funds. We address; each.portion -of the 

Audit Report's fihding below: 

1) Qverpd-vmenf ofthe nonrfederal share'of dloica^^^ expenses.:^ The Ajidit |L0p0£f 

states&t the DECF has pver^^ajEtsferred $20,^6Q-in: npnr^derad fun<$; :duringiihe 

^two-year:period covered'by the election .cycle in,comiectioB with allocablcactivities 

tmdert^^n m-aecordanqe. wit 11 CSA f i©i5..7.. Altiioui^ the. cPmniitti^e'S: 

pr$cti^e wa^.tp. make tri^nsfers ielaSe;^ only tp- actuigil eicpenBitiiFes, it eaiiffiipt IdOsite: 

any dpcumentatiph'tp refute ti^e Audit Report's claim of this over-ttsi£^fer. The 

conimittee has transferred this amount fi'om its federal account tp its non-federal 

account. 

2) Absentee Chase Ba^ - tfe Audit JleiPQrt claims tji^t: Kfee DECF made a. payineni of 

$3,t45 from npn-federkl funds for an iabsentee chase ballot. The DECF does not 

dispute this finding. The comimttee^has transferred this amount fi'om its federal 

.aceouht to its liOh-federaJ dccount. 

' A-lthofagh oji jy .on«! picture ws .provided by Mfi Slizek, the attQChedl email :i]Ddicat«s£:tfaa£ several .other pietureis .iwere 

lost- when'he;switched.cell phones. 

^ It should be ^noted that, in March^of itO tO, the Cojmpission'fail^^ ta.r^jaeh a'.c.onsensus iQii a proposed poli^ .relating to 

the yoljcmteer- inaterials exiemption. gee Agenda Doeument HQ. J 0.-Il€ 
Creole trainslaftors - Th^ Audit $tate'$i that apaymefit hi to Alix Desuhne & 

A^spdates for O^ple isiid Haitii^i tr^lMpiiS: i^Puld £^ve 1^^ pisiid fbi; with federal 

lunds'-a^d.npt (iijectly fi;om aiipiii^fedeMl: acGpunt; Altliottgli the: DECF apees .that 

^this expense should not have been paid exclusively with nonrfedei^ fimds, it 

believes tiie appropriate federal' allocatiion should have been only 28% oif the total 

:mount of $17^240, m MM?. Although the bEOFi^fcknov/i^^^ 

$hpul'd.iipt have be'C»i|p£ud'fpr'^^^ account, the DECF be^iieves that 

.tMs expenditure was not a getrput4he-V0te .(**GOTV'O^ aK?tivity as: defined by the 

defini^Onthat'was >inpllace during the 2-0.08 election cycle. 

11 QM X § iQ0^24^^;staEed; 

Oet^Qut?the>-Vic^e>!activity^ means' coMtacting registerediyptexs b^ telepMiie, in 

person^ or by other individualized means^f ip assist them in engapig iri the 

act .of voting; Get-Outrthe-vote activity includes^ but is not linuted to: (i) 

Frpyiding tp Mividual voters ii^prmation suck as tlie date of the electioti^ 

llie times wheiipo siire qp^h, aad the Ipst^tron of ^Mcular poUing. 

places; and (ii) Qfiferihiigto tran§ppjFt oriactuaily tran$ppjtihg voters tp tiie 

polls. 

in this, instance, the. translators i;s^e£e sent to polling places t© provide nDn^p^^^ 

traiii^ation as!sj.$]^eeto. Qreoie' and HMtiaii $pe.akiiig voters v/h@: )i^f^. aimd^ %t the 

pO'Uing j^iace mi teqcdited Eii^sh tr^Sfisliatipn ^eEvlcseis; Xiius the itesmslatPocs. were 

there, merely as a bridge between voters akeady present at the polls that needed a 

translator to .understand voting procedui-es and voting rights, or to interact withvoting ofteials. 

ThuSf .it is our view that the GOW defiumtipii .do.ie$ not cover ;5uch tra^^sl:atipn 

-services, but rather,, is an.ordinary-operating expense of the DECF subject to tiie 

CQtxunittee^s 28%/72% allocation ratio. 

The; Comim^jsipn: eX{^lairi:ed in il^ initial .di^SiUtipii'Qf get-'Out-'fiie-^Vo.te: tibiat the rule, 

^d a lyei^ -srpeeific purpoise: 

GOTV has-, a very paftioulaf purpose:, assistinig Fegisterad'^voters, to take, aiiy 

aud all iiecessarj^ st<|ps.to ^ tp tiie pll^ laAd their billets, tir'xo We: % 

absentee batfetjor ptfier.means prpyi'de^^^ §7i=Fgd. Rei^. 49067 (J.i# 

29,, 2002) (emphasis-addbd); 

HierefQie, it is. clear that the OOTV deiiiiitiQn that was Qonteaiuplated by the 

.C^mmis.sipn M 20D2; (anietiliifieiits to the, deifinitipii in 200(3: did xipt change this 

pver^^hiiig goal) was not ihtended to coyer $ucii npn^par^^isid isjeina'de^ptPvided tp' 

indiyidual voters who had already arrived at tbe pollj but rather^ targeted atternpts'to 

provide voting mforcnation to the potential voter or physic^ transpoi^tion. to ^e 

p;pUj5 iiat would rcuake it.iilQre Ukeiy fOr lan .indiyidual vp^r to :send back an absentee 

ballot pr make itniore. likely tb^t the voter will tiisiv^ltQ thietr polliug place tp. cast a 
vote: .Ac?Qrdin;glj,.the=DEGl^ has. ttaiisferred S^^jpf theampuitf cite:d in tiie Au^it 

Report ($4^827) &om its federal acconnr to its non-federal ;accpunt, 

4) ReMjEa^eiits:-^ The Audit: Eepc)rt (^oQ0lude§;that a pprfiibn ioif rent paid by the 

JGiECF tbit w$is pMd for by the j$;Mi^if<ildei!dl>aeco.iUi^ h^yjBjbieen paiicl\a$ an 

'aUoeaMe -^>^peuse; The PBCF disagrees, with this chafacted^atiou and .believes that 

it paid for the Eent apj)ropriately witii non^deral funds. The DECF hasj fpr several 

;^ears, served as. tiie fiisipal agent fOr both the Sfkte House Caueus; and State Senate 

Caucus: oi;gaiiizatiQns,^ Th^^^^^^^^ Cjornmittees serve as tiie campaiign arm pfthe 

Dempcratic regi$ktprs fbr btiith the Mpri^avSt^fe Hpuse and Senate. Due to 

requirements of state lavi^^ lhe state party was required to serve .as fiscal agent for 

both the House and .Senate DemoeratiG Caucus committees. Each Caucus! 

committee is reisponsible for raising its own fuiidsrand adniim^ering.its! own. budget, 

estabUs.hed in ic^AsuItatipii with DEC-F;^ which can Q>nly beii^lized for State 

Sections tp the Flpric^^ Eouseipf Representatiiy^^ a^ptd the plpnja $jshatj$. Although 

each staff member for each Caucus Cpnan^eeis a^.e^ they 

ai^e employed in jc^nsultation with the leaders of each respecti ve caueus. In this 

Pirc.umstjBL^ee>'th^:DECF b.eUeye'siithat;the danmiisS^ioh'^ aUPii:atiP.n risguiaiibns 

shpuld npt $pply 10 .the payinieitt: of jient for the share of spaei^^ utilize:d by :fh:e Clajyiicus 

cpnumtteesv 

Aithoui^ the Audit Report .argubs that the full rent i^houid be subject to the 

Ci^ijQti^jssi.pQ's aUo regifla^pnit^ sUch m applieatipiii shpul.d lOnly be appropriate, 

wheii the spape is- used by .ofdinaiy- staff pf =fce: i>E(2F. Tp beisuirei tfieiregular DECP 

staff wpik;on' both federa^'andii^nrfed elecUons md tiie -allocation ra:^ps. 

-established by tiie Commission were intended to cover those ,activities:undertaken< 

by party staff, andnot those undertaken by any autoiiomous uiiitS'of the party whose 

sole jptuipose is to ii^u^ce: npn-^federa] electioi^. 

As a matter of law^ the Federal Election-: Campaign Act and Commission regulations 

do -not eonslder a caucus committee as a party committee. Furthermore, Confess^ 

diuiii| its 2002 amendments^-amended, the FECA to $peciificaily cover Caucus 

Q~pmmitte0is separately hx certsiin cxr&um$tauce:s. Mpne of the pfpvisiPhs ad.ded to tiie 

FICA or tl^eCbmmis^ administrative expenses 

of a Caucus conmiittee. For -exainple^ ihe Comimssion's regulations, at Tl :C.F.R. .§ 

30.0^2;, specifiicalLy requixe a-caupii^ .coinmitiiee^to pay fox:certain actiyitiesti^t 

qniEQi^ as' a Fedistetl SliB<ii^pi3i A^ti^^y vHth fimds ^at sneec the prphibiti'ons -afid 

liidiatipu^-ofthe FE^e^a) tlectlpn Campaign'Adt^^^(^ § 

-44 ri(b)(I)liv pf pourse^/the Audit 'Rej(ort does not allege that the rent payments are 

Federal: Election Activity,'but rather, should be considered regular aUocable activity 

.uxidi^r 11 C.F.R.;§ 1%.7. :IIPweveE,:§ 10.6.7 does iiot require the ailocatjon of 

^ The DECF's r^Ie as^Scal ag^iitwas hot'4 choice;t>y the House and-S^ate C^Ucjis^ ^bgimjttees:, bat .j^Qief, ii^an.diei)^dl 

•by Florida Sitate law,, which, iiMI 2011,.-dfd hot perinrta.Cauc.us;con^ hdve-.a-.siepaiat^ l^ga Seii .Ch. 

2Q11^, ;Counc.il S:u.bstitj[ijte:fbr Coihihittjej^ S.ub^Utute forl^^^ NQ, 1201:?,:Lkv^s of Flonda 

The;CauQus:comnlitte^^^^^^ inclpde^diiQ t^.e te^Il' '^ass9ciation::.^^ ^oup of stajte OF local jcandid^tes 

^or .of individuals holdin^-s&te or.ljdcSl'ofB.ce."' 
ordinal^ expenses^incurred by a:Caucus committee and iihat conclusion should not 

chauge meiely because, thig Caucus ciiiiinn^ttei^. uMs the j^CF ^ a fiiiancial! agent; It; 

-wpi;ld be patently .unfair to the Kpiyfse. .Senate Cauciu$ cpminitti^es and the DEQF' 

to treat them in- a:disparate matmer a$. other Caucus Committees- merely because ithe 

Caucus committees were required^ under state law, to maintain a direct fiscal 

amngement with theDB(^F:. 

5) EmploveeJTiine Lop[s ==• Thie Audit jRiepprt'claimsthe Cpminissipja tinable to 

locate or'the.DBCF was unable tp prpduee time Jogs jfor si^ emp>loyees'^ .tet wpyld 

document that those, emplo^e.^ ::did not spend in excess of 25% of their tune on 

fedieral activity idiAg cei^am. moit1lisxo.ye£ed by the Audit Rer^brt.. Attached as. 

Bxhibit'O, pleilsie:find:bQth rogs: a£id declarati:Q.ns: :by tii€i^CQVered' eMpilciyee^'that 

demonstrate .tii^ti^pne pf the employees .spent in excess^pf 2:'5.% of their j^e :o.n. 

federal aqtivij^ or ac^^dities' in connection, with; afederal ejection:. 

6) Fundraising Expenses;^ l^e Audit RiepoEt vstates- that the DECF may have 

firansfetiid an expessiVe £pipuQt of npii^fisde^ funds Iri coniiiection with sihared 

fundraising activity.: This determihatipn was based upon' allocation ratios provided 

by the DECF and actual splits based upon the Audit; Division's review. The DECF 

• does not dispute :thls finding. The DECF has transferred $ 14,63'7 to comply witii the: 

Audit Report's reci^nimendatioh. 

Based upo^ the ^^bove, the D]^CF concedes that It is: required to tranter $4^.M9'ftovsi its 

federal accounl to its nonrfederal accomt 'Ihe DECF has'-:provided. sufficient 

doeuioientat^Oii to- demohst^te that-Ihe $23^172 ! ^ :j^toperly paid foi ^0^uoh'-federai 

fuiids:. lGhe-E)]|CP dispute^ the rerbaiiiing fiMbiif :bf ithe Coinmiisisi^ findings totaling 

Findings #4 & #§ 

l^e DEC^ has -ainende;d its^rCp.^^^ tp .CjGtlcect repprtifig .eiTOrs; id0n!^ii0d >in= the Audit RepOjt 

for these findings.^ 

' The Inteiriin. Audit iRepoft 'StStes that the cdintnittee. lacked dd^eumeDtation fbr she eqipfloyees,. However^ b^ed upoii 

the dpcumedtatibn gF0vided t6-the"c'oin0X^ %jt-bpn^rence Lntel^^^ jtLtfppg^i^ tb^tnm ^mplpyees 

were included, lit the Audit Eiivisi^ti^s Ma^ irherdctre; the"0n^)n|ttee h|(S?prQvid^4 de^liy^bii six einpldy^^^ and 

time logs for two others. Pleaise- note that .for a Hindi Employee, Gbristppher if arris, payroll wiis itippFtedviofii $chjBdule 

H4, but was voided. No: transfer of hOiisiederal. tais was:.made fbr this efriployeei 
•If you rs^quire sEny further bifbttu^tiPn, Qc have aay other questions^ please call me at 

47Niji:i. 

Counsd tO't^ie/Deraocratio Executive 

Co^iM^ee of Florida