Attached please find a copy of the final audit

report of the Democratic Rational Committee which

was approved by the Commission on May 30, 1980 •

Informational copies of this report have been

received by all parties involved and this report may

be released to the public.

March 2, 1981

PUBLIC ISSUARCE OF FIRAL

AUDIT REPORT-DEMOCRATIC RA'1'IORAL

COMMITTEE

FRED ElLARD

PRESS OFFIC~ILIf

BOB CO.TA_~~ JUDY HAWK~':

FEDERAL ELECTION COMMISSION

WASHINCTON. D.C. 20461

Public Records,........-

FEe Library

RAD

Attachment as stated

SUBJECT:

FROM:

MEMORARDUM

THROUGH:

'1'0:

." ,

•
I • Background

A. Overview

FEDERAL ELECTION COMMISSION

WASHINGTON. D.C. 204&3

~I The termination culminated in the DNC merger into the

DNC Services Corporation on September 30, 1978. The

Audit of that committee shall be addressed in a separate

report.

The audit covered the period January 1, 1976 through

September 30, 1978, the final coverage date of the last report

filed by the ONC at the time of its termination. II During the

period the DNC reported an opening cash balance of-$S2,786.0l,

total receipts of $9,224,917.76, total expenditures of

$9,277,703.77, and a closing cash balance of $-0-.

The DNC registered with the Clerk of the United States

House of Representatives on April 17, 1972 in support of

Democratic nominees for Federal elections, and maintained its

headquarters in Washington, D.C. All administrative expenses

of the ONC were paid by the DNC Services Corporation which serves

as the source for disbursements of administrative costs for all

affiliates.

REPORT OF THE AUDIT DIVISION

ON THE

DEMOCRATIC NATIONAL COMMITTEE

This report is based upon an Audit of the Democratic

National Committee (lithe ONC") undertaken by the Audit Division

in accordance with the Commission's audit policy to determine

whether there has been compliance with the provisions of the

Federal Election Campaign Act of 1971, as amended (lithe Act").

The audit was conducted pursuant to Section 438(a) (8) of Title 2

of the United States Code which directs the Commission to make

from time to time audits and field investigations with respect

to reports. and statements filed under the provisions of the Act.
-2-

II. Audit Findings and Recommendations

B. Ke~ Personnel

The principal officers of the DNC during the period

audited were:

Dates

Edward Bennett Williams 1/01/76-1/31/77

Joel McCleary 2/0l/77~5/3l/78

Evan Dobelle 6/01/78-9/30/78

Treasurer

A. Receipt of Prohibited Contributions

C. Scope

The audit included such tests·as verification of total

reported receipts, expenditures and individual transactions;

review of required supporting documentation; analysis of DNC

debts and obligations; and such other audit procedures as deemed

necessary under the circumstances.

The Audit staff's review of contribution records,

including copies of contributor checks and verification with

the appropriate Secretary of State, disclosed that the DNC had accep~ed six (6) corporate contributions totaling $725.00 in

conjunction with a fundraising event. According to the DNC

officials, a system was maintained to ensure that no corporate

contributions were accepted, but they were unsure why these

items had not been detected.

Section 44lb(a) of Title 2 of·the United States

Code states, in part, that it is unlawful for any corporation

to make a contribution or expenditure in connection with any

Federal election to political office, and unlawful for any

political committee to knowingly accept or receive any such

contribution.

Kenneth Curtis

John C. White

Robert S. Strauss

Chairman

This audit report is based on documents and working

papers which support each of the ,factual statements. ~hey form part of the 'record upon which the ~ommission based

its decisions on the matters addressed in the report and were

available to the Commissioners and appropriate staff for review.

...".

'< '~.!

.,....
"".- .. ,. -,,--, ._-~ -.~ -- - - - ~- ---~. ,-- --,,--- _.~~--,--

"""'" .-

" - .~,~ _. -.. - ".-,,- -

.Recommendati'on ".

" ...-; -, -

":,':' .::.: Certain "other. matters noted durlnqthe, audit .were.:'

'referred to the:.Commission's:Office' of·GenerarCounsel:·for:, "'. consider'ationon January:' 29,':1980. ,-. .. ,'''. ,.. " '

::o:,:'-··since:t.h~··committee has 'issued~refund8 fCsr'five.~;(sY ;:of(:'

'~the contributions'.and proyided. ,evidence,,-that: the sixth ;'.__ ::::~:'."" ......., .':' contribution was .not .funded throuqh" prohibited 'sources; we:~' ' "".,,:'; '~~ recommended '~that ,no~furtlier·.action be 'taken on this matter.' , :.. : ~, .

, . ~,,,. ~,,'" , "_.~ ..., ~''";. ,,,.,,,-,, ,,,. "._'.- . ,

.,-::'::'" :..:.::":,,:::'-:=:' -. B.: _.: Matters.. Referred~to'the ,'Office:'of":'Gelleral-'Counsel:· "

. ".~' "'~~ '" . In, ac~cStd'~ce>with'~~~~:'"O~~~.t:>1:h~"c~it.e c

, ,," transmitted re'fund checks for five (5) of the cont'ributiona totaliriq'~$525;and:'have,'provided,th•. AUdit~.taff:;with'"copi••' ,." "~''':of the,.cancelled refund:checks' {frontaric1: back)~__ relatinqto :

"three' (,3 ) of';the .,contributions>;;," ..' The 'COiIimittee,aubmitted ... .. _...:: ·copies:ofthefront·:of·"theotiher~tWo,':(2r""refUnd.checks jiince .... ...-., .they:)laVtl::not:' yet:cle,ared,::,~ejbapk:;~'~e>C~.tte.·submitt~,"<

a statement from :the::sixth:contributor, indicatinq..that. his,.'

contribution was 'fr~.: personal and not . corporate"" funds.".··,

·...

FEDERAL ELECTION COMMISSION

lUS .. slim I ~.W.

WASH"-GTO....OC 204&J

AJl)1TICIfAL IEGARDR 'DIIS

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~·SCDI'L!'1ED CXIIII.IRa N::'I'lm FILE

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