Report of the Audit Division on

the Bartlett for Congress

Committee

January 1, 2007 - December 31, 2008

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

1 with the Act. The audit

determin

co

the ~^SK>

prohibitions and

disclosure rcqu

of the Act.

hcihcrjl^

complied willi

Future Action

The Commission may

initiate an enforcement

action, at a later time,

with respect to any of the

matters discussed in this

report.

About the Campaign ($M>^

The Bartlett for Congress Committee is the principal campaign

committee for Roscoe G. Hajt%i|&Jr., Republican candidate for

the U.S. House of Represtftative'siftom the state of Maryland, 6th

^Wr? iS^J^Lfc __

District, and is headc^^erbd in Midi$ie|own, Maryland. For

more inforrnation,.|lf the chart on thefe^rnpaign Organization,

p.2.

vf

Financial Ac

• Receipts

o

o

o Offi&ts

o Othdteceipts

, o Total Receipts

Hf '^

• Disbursenu

GL,, Operating Expenditures

x o Total Disbursements

$ 210,439

128,752

3,140

18,418

$ 360,749

$272,131

$ 272,131

Finding and Recommendation (p.-3)

• Misstatement of Financial Activity

2U.S.C.§438(b).
Report of the Audit Division on

the Bartlett for Congress

Committee

January 1, 2007 - December 31, 2008

..l--r^>

(,#

tSL *S

V
Table of Contents

Part I. Background

Authority for Audit

Scope of Audit

Part II. Overview of Campaign

Campaign Organization

Overview of Financial Activity

Part III. Summary

Finding and Recommendation

Part IV. Finding and Recommendatio

Misstatement of Financial Activity

Page

l

'^V : *v;;

?..

I**
Parti

Background

Authority for Audit

This report is based on an audit of the Bartlett for Congress Committee (BFC),

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 poJMpl committee that is

required to file a report under 2 U.S.C. §434. Prior to conducting W^audit under this

subsection, the Commission must perform an internal reviegli||p>orts filed by selected

committees to determine if the reports filed by a panicula^onu^^^ meet the threshold

requirements for substantial compliance with the Acy^2 thS.C. §41|(b).

Scope of Audit

Following Commission approved procedures;

factors and as a result, the scope of this audit was

1. The consistency between reported figures and b

2. The disclosure of individual com

evaluated varioil

susfo f 11 • F following: •

ids.

risk

name of employer.
Part II

Overview of Campaign

Campaign Organization

Important Dates

• .Date of Registration

• Audit Coverage

Headquarters

Bank Information

• Bank Depositories

• Bank Accounts

Treasurer

• Treasurer When Audit Was Conducted^,

• Treasurer During Period Covered by Au^lf^ <

Bartlett for Congress Committee

September 12, 199L

January 1, 2007 Jlilember 31, 2008

djjj[

Middletowj||fer&and

T|

,s^i^ b,

Ty$f ^^k

?f |-o checking; one Certificl||f;D(jposit

,^^v .F"

Robert f^^«

Robert Perrv

i

4

* 1

Management Information %

• Attended FEC Campaign Finance Seminar \

• Used Commonly Available Campaign

 :|

Management Softwajlilackage '

• Who Handled AccSunljig and Rccordkeeping

Tasks &*.

•^$yp&*:- /*

jfe ^^i^v

"Yes -f

k

lelunteer Staff

Over||ew of; Financial Activity

T (Audited Amounts)

Cash on hand @ jliiiuary 1,2007 $204,949

Receipts .. j&

o Contributions from Hlf^tfals

o Contributions from Otfpf Political Committees

o Offsets to Operating Expenditures

o Other Receipts

Total Receipts

Disbursements

o Operating Expenditures

Total Disbursements

Cash on hand @ December 31, 2008

$210,439

128,752

3,140

18,418

$360,749

$272,131

$ 272,131

$ 293,567
Part III

Summary

Finding and Recommendation

Misstatement of Financial Activity

A comparison of BFC's reported financial activity to its bank records revealed that cash on hand,

receipts, disbursements and ending cash on hand had been miss

2008: For 2007, BFC understated beginning cash on hand by $1

$20,061, understated disbursements by $12,373, and understated

In 2008, beginning cash on hand was understated by $9,205$

$17,635, disbursements were understated by $55,310, an|||e'kiding

overstated by $24,575. The Audit staff recommendecj|d!at BFC amend i

misstatements. In response to the interim audit report|BFC amended its reports^^ichmaterially

-j- l «i_^ _ A. XT^ J «_ ' 1 _j" •' ""•liP'^S*' A \ ? J1 *-^yS*5'

corrected the misstatements. (For more detail, see p

:eip

endar years 2007 and

stated receipts by

cash on hand by $9,205.

understated by

hand was

irts to correct the
Part IV

Finding and Recommendation

| Misstatement of Financial Activity I

Summary

A comparison of BFC's reported financial activity to its bank records revealed that cash on hand,

receipts, disbursements and ending cash on hand had been misstated |||calendar years 2007 and

2008. For 2007, BFC understated beginning cash on hand by $l,|j|7fi§(ierstated receipts by

$20,061, understated disbursements by $12,373, and underatetef«|juig cash on hand by $9,205.

In 2008, beginning cash on hand was understated by $9,205v|pei|ls||^re understated by

$17,635, disbursements were understated by $55,310, ano^lhlSgnding ollkpn hand was

overstated by $24,575. The Audit staff recommen

misstatements. In response to the interim audit repoi

corrected the misstatements.

# ^ssf§

JFC amended its repor^^ich materially

Legal Standard

Contents of Reports. Each report must

• The amount of cash on hand at the be;

• The total amount of receipts for the repomm

• The total amount of disbursements for th

• Certain transactions that require itemizati

B (Itemized Disbursement). 2 U.S.C. §43

d end of ihc

iod and for

rts to correct the

jng period;

ection cycle;

for the election cycle; and

(Itemized Receipts) or Schedule

),(4),and(5).

A v jf

Facts and Analysis ^

The Audit staff reconciled reported filtncial aciivjty to its bank records for calendar years 2007

and 2008. The^^^^^^charts outline the discrepancies for the beginning cash balance,

receipts, di|^irsemenS!i||i: ending cash balance for each year. Succeeding paragraphs address

the reasorifikr the misstatemcms. >/

2007 AdMlBk, 1

^1%, M

Opening Cash Bal^^^

@ January 1, 2007 F'

Receipts

Disbursements

Ending Cash Balance

©December 31, 2007

i

' Reported

$203,432

$111,480

$31,731

$283,181

Bank Records

$204,949

$131,541

$44,104

$292,386

Discrepancy

$1,517

Understated

$20,061

Understated

$12,373

Understated

$9,205

Understated

The beginning cash balance on January 1,2007 was understated by $1,517 and is unexplained,

but likely resulted from prior period discrepancies.
The understatement of receipts resulted from the following:

• Unreported interest from Certificate of Deposit

• Eight unreported Political Action Committee receipts

• Unreported receipts which cleared bank account

Understatement of receipts

The understatement of disbursements resulted from the following:

• Thirteen unreported disbursements

• Three reported disbursements not supported by check or debit^

• Unexplained difference

Net understatement of disbursements

$8,231

7,300

4.530

$20.061

$12,666

(273)

(20)

$12.373

The $9,205 understatement of ending cash on hand resultedjfrOm the il&plained beginning cash

balance difference as well as the receipt and disbursernelfflisstatementllltexi above.

2008 Activity

Opening Cash Balance

©January 1,2008

Receipts

Disbursements

Ending Cash Bal

©December 3 1,

Reported2 Bi

$283,181

$172,716^

$318,142

4

cords Discrepancy 2/

^

$293,567

$9,205

Understated

$17,635

Understated

$55,310

Understated

$(24,575)

Overstated

The understaternen|jp||eceipts rcsiiltcd from! bllowing:

• l|nMx)rted interest from CeSi([M|e" of Deposit

tffiilrstsitenient or receipts

The understatenicntof disbursements resulted from the following:

• Disbursemen||||gt reponed

• Refund reporte1^|prlot supported by check or debit

• Unexplained difflrence

Net understatement of disbursements

BFC failed to report fifty disbursements in the amount of $57,367. These expenditures appear to

be primarily for political advertising and operating expenditures. Although the Audit staff

$9,042

8.593

$17.635

57,367

(2,300)

243

2

 These columns do not total as a result of a discrepancy between the ending cash balance of one report and the

beginning cash on the succeeding report in the amount of $3,895.
supplied this information to BFC, no explanation for the omission of this information on the

disclosure reports was offered.

The ($24,575) overstatement of ending cash on hand resulted from the misstatements noted

above.

At the exit conference, the Audit staff provided the BFC's representative with schedules

detailing these discrepancies. The representative agreed to file the appropriate amended reports.

Interim Audit Report Recommendation and Committeg Response

In the interim audit report, the Audit staff recommended that BFC: £^'rs

• Amend its reports to correct the. misstatements noted

• Amend its most recently filed report to correct the ca;

explanation that the change resulted from a prior R|n&! audit

recommended that BFC reconcile the cash balar^Pbf^its most re<l||report to identify

any subsequent discrepancies that impacted the' $24,575 adjustment!||ommended by the

Audit staff ^ "' •-.-*>v -*

balance with an

stment. It was further

In response to the interim audit report, BFC amended its

misstatements. In addition, BFC amended.its most recently

balance. T^.

hich materially corrected the

port to correct the cash on hand