CFC MEMORANDUM 2004-8

July 23, 2004

This memorandum provides general information on: (1) OPM's Role in Monitoring Performance among Local Campaigns, (2) Campaign Assessment Reports, (3) Office of the Inspector General Reports, and (4) the Availability of CFC Reports. This information will be posted on the official OPM-CFC website shortly.

OPM's Role in Monitoring Performance Among Local Campaigns

The Office of Personnel Management (OPM) is accountable for assuring Federal employees that their designations will be honored and distributed to the charitable organization of their choice, and that all charitable organizations listed in the CFC have met strict eligibility requirements on an annual basis. OPM's Office of Combined Federal Campaign Operations (OCFCO) works closely with the Local Federal Coordinating Committee (LFCC) in each campaign area to fulfill this responsibility. LFCCs act as the campaign's "Board of Directors" and, as such, have direct oversight of the finances and conduct of the CFC in their community.

The OCFCO relies on two main vehicles to monitor regulatory compliance among campaign organizations and federations. All campaigns are required to send campaign assessment reports annually to OCFCO. In addition, OPM's Office of the Inspector General annually conducts audits of selected Principal Combined Fund Organizations (PCFOs) and participating national federations.

Campaign Assessment Reports

Campaign assessment reports consist of financial and non-financial assessments developed in accordance with the CFC Audit Guide (Guide) issued by the OCFCO. The requirements of the Guide differ depending on the total receipts of each campaign, but require two key reports from all campaigns. Each campaign is required to have an Independent Public Accountant (IPA) perform an Agreed-Upon Procedures (AUP) engagement and issue a report at the end of each campaign. The AUP consists of steps developed by the OCFCO to determine that the campaign's financial activities were managed in compliance with regulations in 5 CFR 950 and OPM guidance. Also, each campaign's LFCC is required to determine and report on whether the campaign's non-financial activities were managed in compliance with CFC regulations and guidance. The IPA and LFCC reports are provided to the OCFCO by each campaign. The OCFCO oversees any necessary corrective actions as a result of the findings reported.

Office of the Inspector General Reports

OPM's Office of the Inspector General (OIG) performs approximately 15 to 20 audits of local campaigns nationwide each year. The OIG also conducts audits of participating national federations. These audits test for compliance with applicable CFC eligibility requirements, controls over the CFC process, and fiscal management of the campaign or federation. The OIG issues reports to the OCFCO which shares the results of these audits with the applicable campaigns or national federations. The OCFCO oversees any necessary corrective actions as a result of the findings reported by the OIG.

In addition to the CFC Audit Guide and OIG audit reports, the OCFCO may also make site visits to monitor compliance with corrective actions and provide guidance to campaigns or national federations.

Availability of CFC Reports

OIG final audit reports are available upon request. The OIG has performed audits of the following local campaigns and federations over the last three calendar years. Campaign audits are identified with the applicable CFC code # and federation audits are identified by name only. NFR next to the name means "No Final Report" has been issued. Reports are not released until they are final. An asterisk (*) next to the listing denotes that the Director has issued a warning to the campaign or federation which, due to the nature of the findings, could result in future decertification from pariticipation in the CFC. OPM monitors campaigns or federations that were warned as a result of the OIG audit. Warnings remain in effect until OPM has verified full implementation of all corrective actions pursuant to OIG findings.

To request an OIG audit report or a Campaign Assessment report, please either email our office at cfc@opm.gov, call (202) 606-2564 or send your requests to:

Mara T. Patermaster, Director
Office of CFC Operations
Office of Personnel Management
1900 E Street, NW, Room 5450
Washington, DC 20415

If you have any questions about our accountability monitoring activities, please e-mail our office at cfc@opm.gov or call (202) 606-2564.

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