2004 CFC Audit Guide

Executive Summary

The objectives of the Combined Federal Campaign (CFC) Audit Guide (Guide) are to improve management and oversight of the CFC and the accountability of Principal Combined Fund Organizations (PCFOs). PCFOs are non-profit agencies that serve as fiscal agents for campaigns locally. Their work is overseen by volunteer Local Federal Coordinating Committees (LFCCs) which serve as a "board of directors" for each CFC. The Guide provides authoritative guidance to ensure that:

• PCFOs provide copies of their financial statements to verify fiscal integrity of their organization. The levels of financial receipts within a campaign will determine the type of financial statements required. All campaigns with receipts over $150,000 must submit audited financial statements. Campaigns that raise less than $150,000 may submit financial statements reviewed by a independent public accounting firm (IPA).

• PCFOs engage an IPA to perform specified agreed-upon procedures (AUP) on CFC activity and the control environment. If any deficiencies are noted, the PCFO will be required to prepare a corrective action plan. For campaigns over $1 million, CFC-only audited financial statements are also required.

• LFCCs perform a compliance assessment of the local campaign.

The Guide was designed to generate better and more financial information on all aspects of the PCFO by providing:

• OPM assurance that LFCCs and PCFOs are complying with the CFC regulations and that all campaign organizations have adequate internal controls over their CFC related operations;

• The Office of the Inspector General with more useful information to allow it to conduct more efficient and effective audits; and

• CFC donors and other stakeholders assurance that all local campaigns meet their high expectations of accountability.

Related reports are due to the LFCC by August 1, 2004, with copies to OPM by September 15, 2004. If either of these dates falls on a weekend or holiday, then provide the items on the next business day.