# Presentation: 681020

## CFC Audit Guide

## CFC Audit Guide

- This presentation includes:
**1. Overview of the CFC Audit Guide**
**2. Comparison to Previous Requirements**
**3. Benefits of the CFC Audit Guide**
**4. Costs of the CFC Audit Guide**
**5. Conclusion**

## CFC Audit Guide

1. OVERVIEW 

Goals of the Audit Guide

 To improve the management and oversight of the Combined Federal Campaign

To improve the accountability of the PCFO

**1. OVERVIEW**
- Goals of the Audit Guide
-  To improve the management and oversight of the Combined Federal Campaign
- To improve the accountability of the PCFO

## CFC Audit Guide

1. OVERVIEW 

Purpose of the Audit Guide

 PCFO’s financial statements are compiled, reviewed or audited in accordance with AICPA professional standards and the Office of Personnel Management’s (OPM) prescribed accounting practices.

PCFO’s CFC operations are conducted in accordance with the CFC regulations and OPM guidance and that internal controls are effective.

**1. OVERVIEW**
- Purpose of the Audit Guide
-  PCFO’s financial statements are compiled, reviewed or audited in accordance with AICPA professional standards and the Office of Personnel Management’s (OPM) prescribed accounting practices.
- PCFO’s CFC operations are conducted in accordance with the CFC regulations and OPM guidance and that internal controls are effective.

## CFC Audit Guide
1. OVERVIEW

**1. OVERVIEW**

| Requirements | Due annually each August 1 to LFCC and September 15 to OPM  |  |  |
| --- | --- | --- | --- |
|  | $150,000 or Less | $150,000 - $999,999 | $1 Million and Greater |
| 1. IPA reviewed or compiled or audited organization-wide financial statements (fiscal year) | X |  |  |
| 2. IPA audited organization-wide financial statements (fiscal year) |  | X | X |
| 3. IPA audited CFC only financial statements (campaign period)  |  |  | X |
| 4. LFCC Compliance Assessment (Most recent on-going campaign) | X | X | X |
| 5. Agreed-upon procedures (AUP – Most recently completed campaign) | X | X | X |
| 6. AUP Corrective Action Plan  | X | X | X |

## CFC Audit Guide

1. OVERVIEW 

Financial Statements

Compiled, Reviewed or Audited (fiscal year) – under $150,000
Organization-wide (fiscal year) – $150,000 and greater
CFC only (campaign period) - $1 million and greater

**1. OVERVIEW**
- Financial Statements
- Compiled, Reviewed or Audited (fiscal year) – under $150,000
- Organization-wide (fiscal year) – $150,000 and greater
- CFC only (campaign period) - $1 million and greater

## CFC Audit Guide

1. OVERVIEW 

LFCC Compliance Assessment - most recent ongoing campaign (Fall 2002)

PCFO General Compliance
Campaign Brochure
Pledge Card Controls (Questionnaire)

**1. OVERVIEW**
- LFCC Compliance Assessment - most recent ongoing campaign (Fall 2002)
- PCFO General Compliance
- Campaign Brochure
- Pledge Card Controls (Questionnaire)

## CFC Audit Guide

1. OVERVIEW 

Independent Public Accountant (IPA) Agreed-Upon Procedures (AUP) – most recently completed campaign (Fall 2001)

Pledge Card Tracking System
PCFO Budget and Administrative Expenses
Receipt and Disbursement of Funds
Status of Prior Year’s Findings (Not applicable this first year)

**1. OVERVIEW**
- Independent Public Accountant (IPA) Agreed-Upon Procedures (AUP) – most recently completed campaign (Fall 2001)
- Pledge Card Tracking System
- PCFO Budget and Administrative Expenses
- Receipt and Disbursement of Funds
- Status of Prior Year’s Findings (Not applicable this first year)

## CFC Audit Guide

1. OVERVIEW 

AUP Corrective Action Plan

PCFO will need to prepare if there are findings

**1. OVERVIEW**
- AUP Corrective Action Plan
- PCFO will need to prepare if there are findings

## CFC Audit Guide

2. Comparison to Previous Requirements

Financial Statements
$150,000 or Less – threshold was raised from $100,000.

$1 Million or Greater – must provide CFC only audited financial statements

Due date to provide to the LFCC moved from June 15 to August 1.

**2. Comparison to Previous Requirements**
- Financial Statements
- $150,000 or Less – threshold was raised from $100,000.
- $1 Million or Greater – must provide CFC only audited financial statements
- Due date to provide to the LFCC moved from June 15 to August 1.

## CFC Audit Guide

2. Comparison to Previous Requirements

LFCC Compliance Assessment

Procedures are more specific, but cover the same exact areas.

Procedures cover the same period – current ongoing campaign.

**2. Comparison to Previous Requirements**
- LFCC Compliance Assessment
- Procedures are more specific, but cover the same exact areas.
- Procedures cover the same period – current ongoing campaign.

## CFC Audit Guide
2. Comparison to Previous Requirements

IPA Agreed-Upon Procedures

Covers the same period – most recently completed campaign.
Due date to provide to LFCC moved from June 15 to August 1.
Procedures expand on areas covered in previous years.

Previous Year			New Audit Guide
-PCFO Budget and Expenses 	-Pledge Card Tracking System
-Distribution of Funds		-PCFO Budget and Expense
-Allocation of International 	-Receipt and Disbursement of 
     General Designations Options	     Funds
     and Undesignated Funds	-Status of Prior Year’s Findings

**2. Comparison to Previous Requirements**
- IPA Agreed-Upon Procedures
- Covers the same period – most recently completed campaign.
- Due date to provide to LFCC moved from June 15 to August 1.
- Procedures expand on areas covered in previous years.
- _Previous Year_			_New Audit Guide_
- -PCFO Budget and Expenses 	-Pledge Card Tracking System
- -Distribution of Funds		-PCFO Budget and Expense
- -Allocation of International 	-Receipt and Disbursement of
-      General Designations Options	     Funds
-      and Undesignated Funds	-Status of Prior Year’s Findings

## CFC Audit Guide

2. Comparison to Previous Requirements

AUP Corrective Action Plan

New requirement – PCFO must provide an explanation of how it will correct findings from the IPA’s AUP.

**2. Comparison to Previous Requirements**
- AUP Corrective Action Plan
- New requirement – PCFO must provide an explanation of how it will correct findings from the IPA’s AUP.

## CFC Audit Guide

3. Benefits of the CFC Audit Guide

The LFCC and OPM can improve the management and oversight of local campaigns.

LFCC and OPM will have financial information on the PCFO as a whole organization (CFC and non-CFC).

Campaigns will have their CFC activity audited for compliance with 5 CFR Part 950 and OPM guidance.

**3. Benefits of the CFC Audit Guide**
- The LFCC and OPM can improve the management and oversight of local campaigns.
- LFCC and OPM will have financial information on the PCFO as a whole organization (CFC and non-CFC).
- Campaigns will have their CFC activity audited for compliance with 5 CFR Part 950 and OPM guidance.

## CFC Audit Guide

3. Benefits of the CFC Audit Guide

Campaigns will have their internal controls tested.

OPM’s OIG will be able to reduce the scope of its work performed at campaigns.

We are better able to provide assurances to CFC stakeholders, including participating charities and federal employees, that all CFCs meet their high expectations of accountability.

**3. Benefits of the CFC Audit Guide**
- Campaigns will have their internal controls tested.
- OPM’s OIG will be able to reduce the scope of its work performed at campaigns.
- We are better able to provide assurances to CFC stakeholders, including participating charities and federal employees, that all CFCs meet their high expectations of accountability.

## CFC Audit Guide

4. Costs of the CFC Audit Guide

There will be increased costs because of the expanded IPA AUPs.  However, we believe the Audit Guide will provide increased accountability and that the Audit Guide’s benefit will outweigh the additional costs.

Estimate that it will require approximately 80-100 hours by the IPA to perform the expanded AUPs.

**4. Costs of the CFC Audit Guide**
- There will be increased costs because of the expanded IPA AUPs.  However, we believe the Audit Guide will provide increased accountability and that the Audit Guide’s benefit will outweigh the additional costs.
- Estimate that it will require approximately 80-100 hours by the IPA to perform the expanded AUPs.

## CFC Audit Guide

4. Costs of the CFC Audit Guide

LFCCs are advised to authorize the PCFO to recover costs for this Audit Guide from the 2003 campaign.  If a potential PCFO has already submitted an application, LFCCs should allow a revision to the PCFO budget for this year so any increase will not be the cause for the PCFO exceeding its budget by 110 percent.

In future years, PCFOs should be aware of the audit requirements and include estimated costs in their budgets.

**4. Costs of the CFC Audit Guide**
- LFCCs are advised to authorize the PCFO to recover costs for this Audit Guide from the 2003 campaign.  If a potential PCFO has already submitted an application, LFCCs should allow a revision to the PCFO budget for this year so any increase will not be the cause for the PCFO exceeding its budget by 110 percent.
- In future years, PCFOs should be aware of the audit requirements and include estimated costs in their budgets.

## CFC Audit Guide

5. Conclusion

The Audit Guide will provide benefits to all stakeholders in the CFC.

The Audit Guide is consistent with recommendations for increased accountability and oversight by OPM’s Director and OIG and external groups (Better Business Bureau’s Wise Giving Alliance and United Way of America).

While the Audit Guide may increase workload and cost, we are pursuing other areas to reduce campaign workload and cost.

**5. Conclusion**
- The Audit Guide will provide benefits to all stakeholders in the CFC.
- The Audit Guide is consistent with recommendations for increased accountability and oversight by OPM’s Director and OIG and external groups (Better Business Bureau’s Wise Giving Alliance and United Way of America).
- While the Audit Guide may increase workload and cost, we are pursuing other areas to reduce campaign workload and cost.

## CFC Audit Guide

Questions?

**Questions?**

## CFC Audit Guide

Mark Lambert
Office of CFC Operations
mwlamber@opm.gov
202-606-2360

**Mark Lambert**
**Office of CFC Operations**
- _[mwlamber@opm.gov](mailto:mwlamber@opm.gov)_
**202-606-2360**