OPM Director Issues Interim Guidelines for National Capital Area CFC
James: "The integrity of the CFC is intact."

Washington, D.C. - The U.S. Office of Personnel Management has increased its oversight of the D.C.-area Combined Federal Campaign to closely monitor the fiscal management of the 2002 fundraising effort now in progress.

Following today's release of findings from a special audit of the National Capital Area CFC, OPM Director Kay Coles James announced that the charity's largest campaign must comply with interim reporting requirements. The audit documents instances of inadequate accounting procedures and observance of CFC regulations.

The audit, conducted by OPM's Inspector General, was requested by James immediately upon learning of allegations of mismanagement by the NCA CFC. OPM is responsible for overseeing the annual workplace charity drive.

The integrity of the Combined Federal Campaign is intact," said James. "While I am disturbed by the improper activities at the local CFC, I am convinced that OPM's quick response to the allegations and our issuance today of strong, interim reporting requirements will maintain the campaign in good stead with federal employees and military personnel in the Washington area and across the country who make contributing to the CFC an annual priority."

James added: "It gives me great pleasure to be able to move forward and continue the fundraising that so many charities in the Washington area rely upon to carry out their good work."

OPM's monitoring activities for the NCA CFC cover the receipt and disbursement of contributions, and the charging of expenses to the campaign. OPM also will require monthly, independent verification of financial controls, and reconciliation of bank statements. An interim audit of this year's campaign receipts and disbursements will begin in June 2003.

In the meantime, OPM is drafting uniform audit guidelines for all local CFC campaigns across the United States, including the NCA CFC. These guidelines, expected to be ready for the 2003 campaign, will ensure that necessary management and fiscal controls are in place to safeguard the handling of donor contributions.

"We have determined that to achieve the goal of providing federal donors with complete accountability, well-defined audit guidelines tailored to the CFC program are necessary," said James, who has requested the assistance of OPM's Inspector General in drafting uniform audit guidelines.

"I have asked OPM's Inspector General to work with agency staff to ensure appropriate accountability for this year's National Capital Area campaign," said James, in announcing the strict, interim requirements to be observed by the NCA CFC.

OPM's Inspector General, Patrick E. McFarland, supports James' strong position with the NCA CFC.

"We believe these additional oversight procedures will help assure donors that their contributions are being safeguarded and accurately distributed in accordance with their wishes and CFC regulations," said McFarland.

Information about the Combined Federal Campaign can be accessed through OPM's web site at www.opm.gov/cfc/.

OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.