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Based on results of the Agreed-Upon Procedures Reports and Office of Inspector General Audits of CFC Campaigns, we have noted several accounting areas that require guidance. This memo addresses those areas. The procedures outlined in this memo should be implemented during the 2005 campaign.
The results from the Agreed-Upon Procedures show that, for the most part, payroll offices are providing the required reports to campaigns. We have met with the one payroll office that was not meeting this requirement and expect the situation to be resolved shortly. The reports from the payroll offices are to be used by campaigns to compare the amounts being received and number of employees with deductions to the campaign’s pledge tracking system. For the 2005 campaign, all campaigns should be tracking receipts by payroll office. Discrepancies should be brought to the attention of the payroll office and/or the Office of CFC Operations (OCFCO) as soon as possible so that resolutions can be made in a timely manner. Procedures for tracking receipts were provided in CFC Memorandum 2003-4 and, in greater detail, at the CFC Workshops in 2004. If your campaign financial staff needs assistance with this process, please contact the OCFCO at (202) 606-2564 or firstname.lastname@example.org.
Audits performed by the Office of the Inspector General have noted that funds received from sponsorships within the CFC are not being properly accounted for. To ensure a full accounting of sponsorship funds the following steps should be implemented:
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To alleviate problems with un-cashed checks, we encourage campaigns to make their distributions using Electronic Funds Transfers (EFT) whenever possible. When making payments by EFT please identify the campaign in the addendum report (CFC#0000) so the recipient can tell 1) who is sending the funds; and 2) that it came from the CFC and not another campaign administered by the PCFO. In 2006, the OCFCO plans to allow national and international charities to submit their banking information to our office and will provide this banking information to campaigns to assist with this process.
The PCFO and LFCC should review financial reports throughout the campaign. These reports should be in sufficient detail for the LFCC to make informed decisions regarding the campaign. The LFCC may revise the budget throughout the campaign based on unforeseen circumstances. The final reimbursement of expenses must be approved by the LFCC.
If you have any questions on this guidance, please contact the OCFCO at 202-606-2564 or email@example.com.
Escheatment is defined as the process of turning over unclaimed or abandoned property to a state authority. Each state has its own laws regarding this process and the time period before the unclaimed property is turned over to the state.