Audit Shows Misreporting by DeLay PAC

WASHINGTON – A federal audit of a fundraising committee founded by House Majority Leader Tom DeLay (search) found that it failed to report more than $300,000 in debts and incorrectly paid for committee activities with money from another DeLay-connected group.

The Federal Election Commission's report didn't indicate whether it would pursue enforcement action against Americans for a Republican Majority Political Action Committee (search).

ARMPAC's executive director, Jim Ellis (search), has been indicted in Texas in connection with a separate DeLay-connected committee, Texans for a Republican Majority. In that case, Ellis is charged with money laundering for state legislative campaigns. DeLay has not been accused of any wrongdoing in the case.

The FEC's audit of ARMPAC was posted Thursday on the Web site of PoliticalMoneyLine.com, which tracks political fundraising and spending. The audit's contents were made available earlier to ARMPAC officials, who filed corrected reports on contributions and spending in May and June.

A spokesman for DeLay's office referred calls to ARMPAC. Attorneys for DeLay could not be immediately reached.

The FEC found that ARMPAC misreported receipts and the ending cash balance for 2001 activities and the beginning cash-on-hand, receipts, disbursements and ending cash-on-hand for 2002.

ARMPAC also failed to report $322,306 owed to 25 vendors. ARMPAC disclosed the debts in amended reports, the FEC said.

ARMPAC's state, non-federal arm paid some expenses and costs for events and activities that should have been paid by ARMPAC, the report said. ARMPAC representatives are reviewing that portion of the audit and understand "a payment from the federal account to the non-federal account may be required," the FEC said.