Interim Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 

Why the Audit 

Wu DOBS 

Federal law permits the 

Commiasion to conduct 

audits and field 

investigationB of any 

political committee that is 

required to file reports 

under the Federal 

Election Campaign Act 

(theAcO-^ The 

Commission generally 

conducts such audhs 

when a committee 

appears not to have met 

the threshold 

requirements fin* 

substantiai compliance 

with the Act The audit 

determines whether the 

committee complied with 

the limitatioiis, 

prohibitions and 

disciosuie requirements 

of the Act 

Future Action 

The Commission may 

initiate an enfocoement 

action, at a later time, 

with respect to the matter 

discussed in this report 

About the Campaign (p. 2) 

Drenda Lawrence for Congress is the principcl campaign 

committee for Brenda Lawrence, Democratic candidate for the 

United States House of RepceaentsUves from the state of 

Michigan, 14* District, ind is headquartered in Southfield, 

MichigaiL For more information, see the Campaign Organization 

Chart, p. 2. 

Finenoial Activity (p. 2) 

• Reeeipti 

o C^ributions from Individuals S 528,733 

o Contributions from Other 

PoliticBl Committees 249,900 

Total Receipts $778,633 

9 Disbureenenta 

o Operating Eiqienditures S 673,351 

o Contribution Reftmds 1,000 

o Other Disbursements 12,000 

TotnlDlsbanenentB $686351 

Finding and Recommendation (p. 3) 

• Mlsstatemern of Financial Activity 

' 32 U.SC 130111(b) 
Interim Audit Report of the 

Audit Division on 

Brenda Lawrence for Congress 

(November 7, 2013 - December 31, 2014) 
Table of Contents 

Page 

Parti. Background 

Authority for Audit I 

Scope of Audit 1 

Partn, Overview of Campaign 

Cuninlgn Orgufaeitlon 2 

Overview of Financial Activity 2 

Part m. Bnmmary 

Finding and Recommendation 3 

Part IV. Finding and Recommendation 

Miaatatement of Financial Activity 4 
Parti 

Background 

Anthority for Andlt 

This repoit is based on on audit of Brenda Lawrence for Congress (BLFC), undertaken by 

the Audit Division of the Federal Election Conunission (the Commission) in accordance 

whh the Fedeni Election Campaign Act of 1971, as amended (the Act). The Audit 

Division conducted the audit pursuant to 52 U.S.C. §30111(b), which permits the 

Commission to conduct audits and field investigotiona of any political committee that is 

required to file a repoit under 52 U.S.C. {30104. Prior to conducting any audit under this 

subsection, the Commission must perform an internal review of reports filed hy selected 

committees to determine if the reports filed by a particular committee meet the threshold 

requirements for substantial compliance with the Act. 52 U.S.C. {30111(b). 

Scope of Audit 

Following Commission-approved pfocedurei, the Audit stafTevaluated various risk 

factors and as a result, this audit examined: 

1. the disclosure oflndividuol contributors'occupation and name of employen 

2. the disclosure of disbursements, debts and obligations; 

3. the consistency between reported figures and b^ records; 

4. the completeness of records; and 

5. other campaign operations necessary to the review. 
Part n 

Overview of Campalgi 

Campaign Organization 

Impprtept DatM 

• Audit Covorue November 7,2013 - December 31,2014 

Hiudauurlen Southrield. MiehlcBn 

Bauk lufbrnutioD 

• Bank DeDOtitoriei Two 

• Bank Two cheekfaUi one savings 

Traaiurer 

• Ttaasufcr When Audit Was Conducted JoeLivioti(3/17/lS- 4/29/2015) 

Robert S. Dzhirda (4/30/15 -10/13/15) 

Lindsay Angeriiolzer (10/14/15 -

Prasent) 

• Treasurer Durins Period Covered by Audh Sharon Baseman (11/27/13 - 3/16/15) 

Mauaaamait Infonnation 

• Attended Commiaeion Campaign Finance No 

• Who Handled Accounting and 

Recordkeeping Tasks 

Overview of Fini 

(Andltedil 

Paid Staff 

ancial Activity 

jiunmts) 

Cash-on-baid A Novanber 7.3013 S121 

ReeelDtB 

o bidivlduals 528.753 

o Contributions • ftom Other Political 249,900 

Total RacalDts S77U6S3 

DtsbunemealB 

o OnentinaBcDenditures 673J51 

o Contribution Reflinds IjOOO 

o Other Disbursements 12JOOO 

Total DtsbunearentB S686J51 

Caih-on-hand (S December 31,2014 $92,423 
Part m 

Summary 

Finding and Recommendation 

Miwtatement of Financial Activity 

During audit fieldwoik, a comparison of BLFC's repoited activity with its bank records 

identifled a misstatement in 2014. In 2014, disbursements were understated by $25,608 and 

ending cash-on-hand was overstated by $23,810. Subsequent to the exit conference, BLFC filed 

amended disclosure reports and nMterially corrected the disbuisemcnb. However, ending cashon-hand remains materially misstated by $8,022. The Audit staff recommends BLFC reconcile 

the cash balance on its most recent report to identify aiiy aubaequent discrepancies that could 

affbct the recommended remaining $8,022 adjustment. The Audit staff fiirther reeommenda that 

BLFC adjust the cash balance as necessary on its most recent report, noting that the acQustmeiit is 

the result ofprior-period audit adjustments. (Formore delali, see p. 4.) 
Part IV 

Finding and Recommendation 

I Ml—tatement of Wmiiiclal Activity 

Durii^ audit fleldwork, a comparison of BLFC'i reported activity with its bank records 

idcntiried a misstatement in 2014. In 2014, disbunements were understated by $23,608 and 

ending cash-on-hand was overstated by $23,810. Subsequent to the exit conference, BLFC filed 

amended disclosure reports and materially corrected the disbursements. However, ending cashon-hand remains materially misstated by S8,022. The Audit staff recommends BLFC recoDciie 

the cash balance on its most recent report to identity ai^ subsequent discrepancies that could 

affect the recommended remaining $8,022 a4justment. The Audit staff ftirther recommends that 

BLFC adjust the cash balance as necessary on hs most receiit report noting that the a4justment is 

the result of prior-period audit adjustments. 

Legal Standard 

Conteata of Reporta. Each report must disclose: 

• The amount of cuh-on-hand at the begiiuiing and end of the reporting period; 

• The total amount of receipts fbr the reporting period and for the eleetion cycle; 

• The total amount of disbunements fbr the reporting period and for the election cycle; and 

• Certain transactions that require kemixatlon on Schedule A (Itemized Receipts) or Schedule 

B (Itemized Disbursements). 32 U.S.C. §30104(bXl), (2), (3), (4) and (5). 

Facta and Anoltyala 

A. FlactB 

During audit fieldworfc, the Audit staff reconciled BLFC's reported activity with its bank records 

fbr2013 and 2014, The following chart outlines the discrepancies between BLFC's 2014 

disclosure reports and its bonk records. The succeeding paragraphs explain why the 

discrepancies occurred. 

2014 Commltlee Aethitv 

Renorled BankRseords Dtasnaaacv 

Beginning Cash Balance @ 

January 1.2014 

$92,871 $90,036 $2,833 

Receipts $673,212 $677,843 84,633 

UndefitBted 

Disbursements $649,830 $673^38 S2S.608 

Understated 

Endirig Cash Balance @ 

December 31.2014 

$116,233 $92,423 $23,810 

Oversuded 
The beginning cosh-on-hand balance wai oventated by $2,835 and lenilted ftom prioi^period 

disciepaneies. 

The undentBtement of disbunements leauhed ftom the following: 

• Unrepotted diabunementa + 28,816 

• Diaburaement reported twice 2,983 

• Reported, diaburfementa that did not clear the bank = 222 

NcCUndentatementofDIabwiementa + JgUU 

The misatatementa deacrlbed above reaulted in the oventatement of the ending caah-on-hand 

balance by $23,810. 

B. Interim Andit Report A AiidhlMviahwReeDmneadatkin 

The Audit staff dlacuaaed thia matter during the exit conforence and provided BLFC 

representatives with the 2014 reconciliation. The BLFC representatiwB concurred with the 

misstatement finding. Subsequent to the exit conforence, BLFC filed amended diacloaure reports 

whieh materially corrected the diabunementa. However, ending cash-on-hand remains 

materially misstated by $8,022. 

The Audit staff recommends that, within 30 calendar dqya of service of this report, BLFC 

reconcile the cash balance on its moat recent report to Id^fy any lubaequent discrepancies that 

could affect the recommended remaining $8,0U adjustment The Audit staff finther 

recoitunends that BLFC acQust the cash balance u necessary on its most recent report, noting 

that the adjustment is the reauit of priot^period audit adjustments.