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This CFC Memorandum 2006-5, CFC Accounting Update, replaces CFC Memorandum 2005-14 CFC Accounting Update, which was issued via e-mail to all campaigns on December 7, 2005. Please disregard CFC Memorandum 2005-14. Section E of CFC Memorandum 2005-14, entitled Using PCFO Account For Distributions, has been deleted in this revised Memorandum, because it was determined to be non-compliant with CFC regulation 5 CFR § 950.105(c)(2)(ii). In addition, Section C has been revised to delete the statement that PCFOs should consider applicable State laws on escheatment in attempting to resolve un-cashed checks. It is the position of the Office of CFC Operations (OCFCO) that State escheatment laws are preempted. Finally, the language regarding review of sponsorship agreements in Section B has been clarified.
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.
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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 firstname.lastname@example.org.