Blackburn for Congress FEC Reconciliation Fact Sheet

 

 

After discovering that FEC reports did not reconcile with the Blackburn for Congress
bank balance, Congressman Blackburn initiated a full ?nancial review and reconciliation
which was conducted by FEC Financial. FEC Financial discovered several systemic
accounting problems, 90% of which occurred between 2002-2004.

 

Topline Numbers:

Total raised (through 3/31/08): $3,401,769.16
Total spent (through 3/31/08): $2,598,044.88
COH to be reported 4/15/08: $803,724.28 (includes $163,975.60 adjustment)

Systemic Accounting Problems
1. Unreported contributions: $102,044.09
0 99% of this amount was during the 2002 election.

0 Due to inadequate caging (multiple people depositing checks, etc.), as well
as a failure by the credit card vendor to provide detailed information

2. Unreported expenditures: $286,278.05
0 $63,000 (2002 media account)
0 $140,000 (electronic fund transfers issue)

$500 bank charges

$1,000 merchant fee

$1,000 bank fees

$16,000 payment to Paychex
$120,000 payroll via Paychex

6 $112,000 (misc. unreported)
Small expenditures less than $200, itemization not required
Of the 584 transactions not reported, 340 were less than .
$200
$18,821.11 to Paul and Mary Morgan, Political Concepts
$3,753 in reimbursements to Chuck, Marsha Chad Blackburn
3. Routine accounting errors: $52,024.86

- Duplicative entries, transposition errors, etc.

 

Corrective action:

Full-time ?rm specializing in FEC matters is on retainer

Full amendments ?led with Federal Election Commission

Self-reported issues to Federal Election Commission

New procedures adopted to insure internal controls

Online banking communication between the FEC expert ?rm and the campaign
One individual responsible for cutting checks

One individual responsible for making deposits

FEC consultants reconcile FEC report to banking books 

Internal control in accordance with PEG guidelines and regulations

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