Auditors Discover Faulty Financial Books at Casino PAC
Posted at 11:29 a.m. on Dec. 2, 2013
Gambling companies usually are good at watching the numbers, but one gaming company has not been watching the financial numbers of their PAC.
Federal Election Commission auditors are asking the Commissioners this week to find Caesars Entertainment Corporation PAC had materially misstated their original campaign finance disclosure reports. In the past, the auditors recommendations on wording of audits were routinely accepted, but under new Directive 70 on processing audit reports, the auditors are required to consult more often with the Commissioners prior to the preparation of the final audit report. It is unclear how the Commission discussion will play out, or whether either of the new Commissioners will indicate they favor a return to the more independent audit process.
During the audit, the PAC representatives stated they were unaware their reports were incomplete and made a brief attempt to correct the matters by filing amended reports, but their amended filings did not clear up all the misstated activity. In response to the Interim audit, the committee refused to file further amended reports.
The audit did not go into reasons for the PAC’s misstatement of cash on hand at the beginning of 2011, nor did it cover the possible misstatements in 2013, caused by the incorrect cash balance as of 12/31/2012.
The audit covered 2011 and 2012, when the committee had receipts of $328,196 and disbursements of $347,465. The auditors matched bank records against committee reports and found $151,950 understatement of receipts and a $91,495 understatement of disbursements over the two-year period.
The reported receipts show various payroll deduction contributions from executives, lead by Gary Loveman, who is chairman, president and CEO of Caesars Entertainment Corporation.
The treasurer during the audit period was Meredith Hartstern. She was replaced in May 2013 by Lindsay J. Garcia.
Update: On December 5th the Commission approved the recommendation of the Audit Division.