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CFC Memorandum 2003-5 transmitted the new CFC Audit Guide which prescribed specific procedures and reporting formats for audits of campaign 2001. Several campaigns notified our office that these procedures required incurring additional costs which were not included in the budget for the 2001 campaign and, since the campaign was complete, no funds were available from that campaign. The Office of CFC Operations has authorized LFCCs to approve an increase in either the 2002 or 2003 campaign budget to cover the additional costs incurred to comply with the CFC Audit Guide for the audit of the 2001 campaign. This is the only authorized exception to 5 CFR 950.106(b), which states that "the PCFO may only recover campaign expenses from receipts collected for that campaign year."
In addition, we recommend that PCFOs and LFCCs review the budget for the 2002 and 2003 campaigns and make any necessary adjustments to cover the costs for the audits of those campaigns. PCFOs should include these costs in the budgets provided with their 2004 applications.
Thank you for your attention and cooperation.