FEDERAL ELECTION COMMISSION 

WMSHMC10N. Die 20463 June 30,2016 

MEMmANDUM 

To: The Goamdnon 

Thnu^ 

Fkom: 

By: 

Sidgect: 

Alee Palmer 

snii uiieouw 

PetriciaC.Onock 

Chief Compliance QflBccr 

IlxiiiiBi E. HnkmibiBr-flt 

AiiiilHMrt Staff Diiectior 

AndltDMihn 

NiooleBDigCBi 

AwUtMaiuiger 

Teefid Anammr ^ 

LeodAndUioc 

Audit DMrion Rwioiiimiaalelkw MemonaMlum on Bwnde Lawwnce tot 

Ca^m(pUPCi(/i\54ISi 

PmueDt to ComndaloD Dfaective No. 70 (PBC Dfaeotive on Prooonliig Audit Reparti)y 

flioAwBtatafFpieecidiitiieouimiMudition below and diacuceei die finding in the 

•Haclied Draft Fiiud Audit RqNMtCDFAR). The OfEooofOcDenlCoiiiiielhna reviewed 

tide memniandum and ooooon wMi ihe leciuiiiiwnilntinn 

MM AcCtmy 

The Audit etaffdeteanmeddutDLFCmiMtMl its finendai activity fbr calendar 

yev2014. ThBdUiunenienliwBnundenlriBdfay$25^ndendbngcailH»-

bandwasovenftaledby$23410; MmtpaAtoibifaAcBtBAnnBO^BlX^M 

«nw— —Ml fii—HMiy mtmtmmma iw MimMUumtmnmm. ||Qlwever, 

il—Mi'iii ^iliflillyMlarfMiiiilfcyM^nW bMBpOOiBtOllie 

lulerini Auflt Report leoommendrtoi^ BUC filed umBBded dlidoeuie leporti 

that melBrienyooaeoled the 2014 cod^oadKMhhaiid. AaeuelwBLFCliu 

COIWCIDOilWpOPIIOWPOW WIfllllBllPMBPIIIiMMOOiniMnBlnWipOIIWlPyIP 

DFAR. 

The Audit staff leoommends dirt file Comndarion find find BLFC ndaetated its 

financial aetiv^y fiir calendBr 2014^ as rtatad above. 
BLfC did not lequeit an ndit hflKfaigi 

tf tliii iDBQioiaiidDni ii ippiovod, a PrapoNd Final Audit Report win be pnpand widdn 

30 d^ of the CommiiaioD'a vote. 

In caao of an d^ectioot Diraodve No. 70 MoillMt HID Audit DivUon RooommendatiaD 

Maraoiandani win be ptaced on iha next BpgaMy achednkd open seaaion agenda. 

DoG»n»nli nialed to Ifaia ndh npoit can be wvad fai ibe Voting BdUot Malten fioldet. 

Should you Iwve any queatioMk pleaae eontoct Teafld Aanumaw or Mcole Brngeaa at 

694-1200. 

AltwJiiiiiait 

- DmftFliiBl Audit Report oftiKAndhDiviaion on BnndaLnmneeibrCoQgnai 

oc: OIBoo of Oeneeal Gounael 
Draft Final Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 

Why the Audit 

Was Done 

Federal law permito the 

Commission to conduct 

audits and field 

investigations of any 

political committee fimt is 

required to file lepOEls 

unto the Federal 

Election Campaign Act 

(theAct).' Ihe 

Commission genenlly 

conducts such audits 

when a committee 

appears not to 

the thrediold 

requirements for 

substantial 

with 

About the 

Brenda Lawrence fiv 

committee for 

United States 

Midiigan, 14* 

Mkhigan 

Chait,p. 

(p. 2) 

is the prindpal campaign 

DemocratiG candidate fbr the 

fiom the state of 

in Southfield, 

the Campaign Organization 

ividuals $ 528,753 

249,900 

8778,653 

8673,351 

1,000 

12,000 

8686,351 

and Raoommondation (p. 3) 

Misstatement of FinaDdal Activity 

Future 

The Commission 

initiate an enfixccmeiit 

action, at a later time, 

with respect to the matter 

discuned in tliia report. 

* 52US.C|30]]l(b) 
Draft Final Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 

s I • 
Table of Contents 

Page 

Parti. Baekgconnd 

Authority for Audh 

Scope of Audit 

Partn. Ovwwtew of Campaign 

Campaign OrigBiiizition 

Overview of Financial Activity 

Fart m. Summary 

Finding and Recommendation 

Part IV. Finding and Reeo 

Nfiaatatement of Financial Activity 

A 

•*.1 
Parti 

Background 

Authority for Audit 

This xepoEt is based on an audit of Brenda Lawicnce for Congm (BLFC), undertaken by 

the Au^t Division of the Federal Election Commission (the Commission) in accoidanoe 

with the Federal Election Campaign Act of 1971, as amraided (the Act). TheAudit 

Division conducted the audit pursuant to 52 U.S.C. $30111(b). which pennits the 

Commission to conduct audita and field invesdgatioi aiboUtical cominhtee that is 

requixed to file a report under 52 U.S.C. $30104. Prb. Jd^iducting any audit under dils 

subsection, the Commission must perform an imempi ULfewof rqx>rts filed by selected 

conmfitteestodeterniifwifthereportsfiledbyaiMiBJ •'Auiitlee meet the threshold 

requirements for substantial compliance with 5211.^^30111(b). 

Soope of Audit ^ 

Following Commission-approved prooed 

focton and as a result, this audit oxaminod: 

1. the disclosure of individual 

2. the disclosure of dis' 

3. the consistency betweeniepor 

4. the completeim of records; 

5. 

Audit slgjffevali 

I lameof 
Part II 

Overview of Campaig] 

Campaign Organisation 

hnportant Datci 

e DateofRegirtration 

• Audit CovwMw 

HwdquirtOT 

Bank lolbmuiHon 

• Bank Depositories 

Bank Accounts 

Traunrer 

e Treasurer When Audit Was Conducted 

• Treasurer Durim Period Covered anaron^|tjmmOlAZ7/l3 - 3/16/lS) 

13-December 31,2014 

a' 

checking, -41. 

Uviotl{3/17/l« dfgjlMlS) 

.(4/30ffl^W13/15) 

UiyMMulwlner (1 

Aneooea uommt 

Seminar 

Who Handled 

Recordkeeping T 

ial Activity 

r • ,r-i Cash-«n-hanlHbJ4bvember 7*3013 ^ S121 

ItocalDts M 

0 Contributioiis 328,753 

0 Contwhutinna fWrniTBffcMpja^ 

Committees 

249,900 

Total Raeslpte $77ljiS3 

Dbbnnements 

0 QpewtingBgDcnditutes 673.351 

0 Contribution Refimds IJXIO 

0 Other Disbursements i2jm 

Totni Dlsbnncfflcnta SMSSl 

CaslMm-hand ® December 31,2014 $9^/m 
Part m 

Summary 

Finding and Recommendation 

Misstatement of Financlsl Activity 

During audh fieldwoik, a companion of BLFC's reported activity witti its book noords 

identified a misstalemeiit in 2014. In 2014, disbunements 

ending cash-on-hand was overstated by $23,810. Subseq 

amended disclosure reports and materially corrected the 

oorhand remained materially misstated by S8,022. In 

recommendationa, BLFC filed amended disclosure 

carit-oiHhaiid. As luoli, BLFC has corrected tfaejl icord. 

(For more detail, see p. 4.) 

itated by $25,608 and 

exit conftrence, BLFC filed 

However, ending casbthe Interim Audit Rqxirt 

ally corrected the ending 

J 

•i J Vw 

-i 

<y 

•• *i«.. 

^21 
Part IV 

Finding and Recommendation 

I Mtoitatement of Financial Aetivtty 

Somnuuy 

During aiufit fieldwoik, a comparison of BLFC's icporied activily with its bank records 

identified a misstatemeDt in 2014. In 2014, disbutsements 

ending caslnm-hand was overstated by $23,810. 

amended disdosure reports and materially coiiectod tfae^ 

on-hand remained materially misstated by $8,022. in 

recommendations, BLFC filed amended disclosure 

cash-on-hand. As such. BLFC has conectedthejgp^ record. 

liOCnl Stnodnnl 

Gontentn of Rnportn. Each report must 

e The amount of cadbon-hand at tlii^eglnning 

• The total amount of receipts fbri 

• The total amount of disbuiiemeL 

• Certain transactions that requim it 

B (ItemiBBd Disbu ? ^ • 52 U.S.S^30ldtt'il> 

FOcto and 

A. Facts 

During 

fbr20i: 

by $25,608 and 

exit conference, BLFC filed 

However, ending cashInterim Au^ Rqxirt 

ly correeied the ending 

the election cycle; 

! fbrlfae electiaa cycle: and 

Receipts) or Schedule 

and (5). 

The 

dii occurred. 

"s reported activity with its bank recofds 

^MDCieB between BLFC's 2014 

; paragcqfes explain why the 

2014 Ga^Shm Activily % 

KBDOfVM BankRccordi DtocrcMMv 

BeginiiiiigCashl|pi|,:c||' $92,871 

January 1.2014 ' , 

$90,036 $2,835 

OversUtfed 

Receipta $673,212 $677,845 $4,633 

Understated 

Disbursements $649,850 $675,458 $25,608 

WT-- -a - J UBOStVUBy 

Ending Cash Balance @ 

December 31,2014 

$116,233 $92,423 S23^I0 

Oversbded 

The beginmng cash-on-hand was overstated by $2,835 and resulted ftom prior-period 

discrepancies. 
28.816 

2,983 

22S 

The undentatemeot of disbimements resulted ftom the following: 

• Unrqxxted disbunements 

• Disbunement reported twice 

• RqxMtedidisburaeiiients that did not clear the hank 

Net Undeistntement of DiaboneoicBti 

The misstatements described above resulted in the overstatement of the ending cash-on-hand 

balance by $23,810. 

B. Interim Audit Report A Audit DMslou Rccommoudatiop 

The Audit staff discussed this matter during the exit conftiwtiM provided BLFC 

representatives whh the 2014 bank reconciliation. The Bl^fl^esentedves concuned with the 

misstatement finding. Siihsrquent tn the exit crnifeieiw^jWlPfe filed amended disclosure reports 

which materially corrected the disbursements misstatelira. nq(fr«ri coding cash-on-hand 

remained materially misstated by $8,022. 

The Interim Audit Report recommended that 

report to identify any subsequent discrqiancies 

$8,022 acQustmenL Hie Interim Audit Rqxxt 

balance, as necesssry, on its most 

period audit adjustments. 

C. Committee Responw to luterim 

Inieqxinse to the 

reports which 

st^. BLFC stated 

compliance firm to hdi^Ute uncwipHiig and: 

complied with tfaalntemnkA juMrtrecu 

reconcile the i 

ildaflR^die 

/s^ldedlhat 

adjustment is 

on its most recent 

remaining 

file cash 

of prioramended disclosure 

identified by the Audit 

operations and engaged a new 

preparation functions. As such, BLFC 

and corrected the public record.