REPORT OF THE AUDIT DIVISION

ON

BUCHANAN FOR PRESIDENT, INC.

EXECUTIVE SUMMARY

Buchanan for President, Inc. (the Committee) registered with the Federal Election Commission on February 16, 1995 as the principal campaign committee for Patrick J. Buchanan, a primary candidate for the Republican Party’s nomination for the office of President of the United States.

The audit was conducted pursuant to 26 U.S.C. §9038(a), which requires the Federal Election Commission to audit committees authorized by candidates who receive Federal fFunds. The Committee received $10,983,475 in matching funds from the United States Treasury.

The findings of the audit were presented in the Exit Conference Memorandum received by the Committee on May 8, 1998. The audit report includes the Committee’s response to the findings.

Use Of Candidate’s Funds In Excess Of The Limitation - 11 CFR §9035.2(a)(1) and (2). The Candidate loaned the Committee $40,000 and made a direct contribution of $1,000, in addition to using his personal credit card to pay for campaign related expenses, exceeding his $50,000 contributionthe limitation by a minimum of $50,374.

Apparent Prohibited Contributions Resulting From Extension Of Credit By Commercial Vendor - 2 U.S.C. §441b(a), 11CFR §100.7(a)(4), 11CFR §116.3(c).

The Committee used Matching Funds, Inc. (MFI) to prepare and file matching funds submissions. MFI did not make commercially reasonable attempts to collect $183,009 for services rendered, thereby making an apparent prohibited contribution to the Committee.

Disclosure Of Occupation/Name Of Employer - 2 U.S.C. §434(b)(3), 2 U.S.C. S431(13)(A), 2 U.S.C. §432(h)(2)(i). A sample review of the Committee’s contributions resulted in a material error rate with respect to the disclosure of contributors’ occupations and names of employer. The projected dollar value of the errors in the population was $2,422,604. The Audit staff concluded that the Committee did not exercise best efforts to obtain and report the information. The Committee filed a miscellaneous document to supplement the public record. However, the document did not conform with the requirements for amendments at 11CFR §104.7 (b)(4)(i).

 

Receipt of Cash Contributions in Excess of the Limitation - 2 U.S.C §431g, 11CFR §110.4(c)(2) and (3). The Committee received $15,163 in excessive cash contributions which were either not refunded/disposed of ($2,408) or not timely refunded ($12,755). The Audit staff recommended a payment to the U.S. Treasury, however, the Commission determined not to require a payment in this case where the amount at issue had been refunded, albeit untimely. The remaining amount ($2,408) was immaterial.

Apparent Non-Qualified Campaign Expenses- 26 U.S.C. §9032(9), 11 CFR §9034.4(a)(1) and (3), 11 CFR 9034.4(b)(3), 11CFR §9033.11(a) and (b), 11 CFR §9038.2(a)(2) and 11 CFR §9038.2(b)(2)(i) and (iii). The Audit identified undocumented disbursements totaling $58,845 and duplicate or non-campaign related disbursements totaling $51,343. As a result, The Commission determined that a pro-rata repayment to the U.S. Treasury in the amount of $44,791 was warranted.

Press Billings for Transportation Costs - 11 CFR §9034.6(a) The Audit staff calculated that the Committee received reimbursements from the press for transportation which exceeded the amount to which it was entitled and as a result, an amount was payable to the U.S. Treasury and the press was entitled a refund. In response, the Ccommittee provided documentation in support of additional transportation costs which when factored into our cost analysis demonstrated that. Thus showing that the Committee did not receive excessive reimbursements. Therefore, no refund to the press or repayment to the U.S. Treasury wais required.

Determination of Net Outstanding Campaign Obligations - 11 CFR §9034.5(a), 11 CFR §9034.1(b). The Audit staff conducted an analysis of the Committee’s financial position and concluded that the Committee did not receive matching funds in excess of its entitlement.

Stale- Dated Committee Checks - 11 CFR 9038.6. The Audit staff identified checks issued by the Committee totaling $27,431, that had not been negotiated. The Commission determined that this amount was payable to the U.nited S.tates Treasury.