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2016 1.  In 2011 OPM formed the CFC-50 Commission to: ◦ Review the present structure and current processes of the CFC ◦ Recommend improvements to regulations.

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Presentation on theme: "2016 1.  In 2011 OPM formed the CFC-50 Commission to: ◦ Review the present structure and current processes of the CFC ◦ Recommend improvements to regulations."— Presentation transcript:

1 2016 1

2  In 2011 OPM formed the CFC-50 Commission to: ◦ Review the present structure and current processes of the CFC ◦ Recommend improvements to regulations and/or the legislative process  CFC-50 Commission mandate: ◦ Streamline and develop innovative ways to improve the program ◦ Increase transparency and accessibility ◦ Make the program more affordable by maximizing efficiency and reducing campaign costs  CFC-50 Commission held four meetings: two meetings in 2011, two meetings in 2012  July 20, 2012 CFC-50 Commission issued the Federal Advisory Committee Report on the Combined Federal Campaign 2

3  Co-Chairs - The Honorable Tom Davis & The Honorable Beverly Byron  Designated Federal Official - Keith Willingham, OPM  Four Local Federal Coordinating Committees (LFCC’s)  Four Principal Combined Fund Organizations (PCFO’s)  Four Federal Employees  Eight Charitable Organizations & Federations  Two Federal Associations  Four Accountability Organizations 3

4  April 18, 2013, OPM issued comprehensive proposed CFC regulations based on 24 recommendations by the CFC-50 Commission in the following areas: ◦ Donor Participation ◦ CFC Infrastructure ◦ Standards of Accountability and Transparency  60 day public comment period ended on June 7, 2013 ◦ 1,382 comments were received from participating CFC organizations, PCFO’s, LFCC’s, individuals, and Federal government agencies  All changes will be effective beginning with 2016 campaign ◦ Over the first three campaign periods affected by these rules, OPM will continue to review the impact of the rules and engage with stakeholders to ensure that the rules are having the intended effect on CFC 4

5  Current Campaign solicitation period is September 1 – December 15  OPM recommended October 1 – January 15 (this reflects CFC-50 Commission recommendation)  139 comments received with 76 (54.7%) being in support of this recommendation  OPM Final Rule: ◦ Director will annually set the dates for the campaign period, but shall start no earlier than September 1 and end no later than January 15 5

6  Currently new employees may not begin participation in the CFC until the next scheduled campaign solicitation begins  OPM recommended that new employees be allowed to make CFC pledges immediately upon entering Federal service (this reflects CFC-50 Commission recommendation)  142 comments received with 94 (66.2%) in favor of this recommendation  OPM Final Rule: ◦ New employees will be allowed to make pledges within 30 days of being hired if outside the solicitation period 6

7  Currently the OPM Director is authorized to allow special solicitations to respond to disasters ◦ Each disaster requires a new authorization from the Director for a special solicitation period  OPM proposed to create a permanent structure to streamline and facilitate solicitations tied to disaster relief  72 comments received with 51 (70.8%) in favor of this recommendation  OPM Final Rule: ◦ A Disaster Relief Program will be created allowing donors to participate within hours after a disaster 7

8  Currently the CFC is managed locally through Local Federal Coordinating Committees (LFCC) ◦ The number of LFCC representatives, level of engagement and knowledge of CFC rules and regulations vary greatly among the 163 campaign regions ◦ LFCCs oversight responsibilities include:  Selection of a PCFO  Review and approval of reimbursable campaign expenses  Review of local charity applications  Oversight of the Principle Combined Fund Organization’s (PCFO) CFC functions  OPM proposed to change the LFCC to a Regional Coordinating Committee structure with responsibilities similar to those of the LFCC with the exception of the selection and oversight of the PCFO  643 comments received with 615 (95.7%) opposed this recommendation  OPM Final Rule: ◦ The LFCC will be maintained with current responsibilities except for the selection of the PCFO 8

9  Currently cash, check and money orders are accepted means of contributions  OPM proposed to eliminate the use of cash, check and money order contributions - all donations are to be made by electronic means (this reflects the CFC-50 Commission recommendation to reduce paper processes as much as possible) ◦ This proposal increases efficiency of the CFC administration by:  Eliminating burdensome paperwork  Saving resources  Removing the possibility of mishandling of cash ◦ 867 comments received with 839 (96.8%) opposed this recommendation  OPM Final Rule: ◦ Cash will no longer be an allowable giving option 9

10  Currently LFCC training is provided through: ◦ Attendance at the annual CFC Conference ◦ PCFO and/or FEB training modules ◦ Review of CFC regulatory requirements ◦ Discussion with OPM regarding questions of regulatory issues  OPM proposed to modify regulatory requirements to provide for additional training and oversight of the LFCC ◦ Training would be conducted by OPM staff and focus on:  Oversight responsibilities  Charity eligibility requirements  How to select an organization to market the campaign  Review/approve its reimbursable marketing expenses  64 comments were received with 34 (53.1%) in favor of this recommendation  OPM Final Rule: ◦ Proposed changes are adopted without revision 10

11  Currently pledge forms and charity lists are printed for those Federal employees who choose to receive them  OPM proposed to eliminate printing and distributing the Charity List in an effort to reduce paper processes (This reflects the CFC-50 Commission recommendation to reduce paper processes within CFC as much as possible) ◦ The list will be made available exclusively through electronic means  245 comments were received with 225 (91.8%) opposed to this recommendation  OPM Final Rule: ◦ The current requirements pertaining to the contents and format of pledge forms and charity lists as well as the information that must be contained within an individual charity listing remains in effect for both printed and electronic pledge forms and charity lists 11

12  Currently many campaign administration functions are performed by 163 PCFO’s supporting local campaigns throughout the country ◦ Administration functions are primarily back office functions associated with:  Collection of donor pledge forms  Input of designations  Notification and payment to recipient organizations  Receipt of payments from various payroll offices  OPM proposed to: ◦ Eliminate the PCFO ◦ Consolidate responsibilities for back office functions by establishing one or more Central Campaign Administrators (CCA’s) ◦ LFCC may engage a “marketing firm” to continue outreach to Federal, Postal and Military personnel  245 comments were received with 205 (83.7%) opposed to this recommendation  OPM Final Rule: ◦ Other than the addition of the definition of the Outreach Coordinator, OPM adopts the proposed change without revision 12

13  Currently the overhead administrative costs of much of the CFC program are paid out of donor contributions through the campaign ◦ More transparency with respect to administrative overhead would be beneficial to the program, the donors, and to the charitable organizations that receive CFC donations  OPM proposed the cost of the campaign associated with the costs of processing an organization’s review and approval for inclusion in the campaign be recovered through application fees paid by the charitable organizations that apply for participation (this reflects the CFC-50 Commission recommendation that OPM move toward a system through which CFC costs are paid by participating charities)  966 comments were received with 911 (94.3%) opposed to this recommendation  OPM Final Rule: ◦ OPM enacts a non-refundable application/listing fee intended to cover the fixed costs of the campaign ◦ Amount of the fee will be determined by the Director of OPM and announced prior to the application period ◦ In no case will the application fee exceed an amount equivalent to the previous campaign period’s budgeted costs divided by the number of participating charities, nor can it be greater than 125% of the previous year’s application fee 13

14  Currently organizations applying for inclusion in the CFC campaign must apply each year  OPM proposed that organizations that have been previously approved to participate be allowed to produce a more limited specified set of documents, via a reduced application form, to be admitted for the subsequent two years (This reflects the CFC-50 Commission to streamline the charity application process to reduce costs for participating charities)  124 comments were received with 96 (77.4%) in favor of this recommendation  OPM Final Rule: ◦ OPM enacts the proposed change without revision 14

15  Currently organizations with annual revenue of $100,000 or more are required to undergo an annual audit  OPM proposed that organizations with annual revenue of $100,000 but less than $250,000: ◦ Not be required to undergo an audit, but have their statements reviewed by an independent certified public accounting firm  48 comments were received with 28 (58.3%) in favor of this recommendation  OPM Final Rule: ◦ OPM enacts the proposed change without revision 15

16  Current rules governing Federations responsibilities are outlined in CFC regulations  OPM proposed to strengthen its regulations regarding Federations to increase accountability and transparency (This reflects CFC-50 Commission recommendations to increase transparency and accountability) ◦ Federations will provide the following:  A copy of each member organization’s application  Require dates upon which disbursements be made to members  Additional reporting requirements  Prohibit deduction of dues/fees from the disbursement of CFC contributions  201 comments were received with 178 (88.7%) opposed to this recommendation  OPM Final Rule: ◦ OPM enacts the proposed change without revision 16

17  Currently Federal payroll office disbursement reports vary in format and level of detail, which adds to the administrative costs of the campaign administrators who are responsible for ensuring the accuracy of disbursements to designated charities  OPM proposed to standardize and improve how payroll offices provide donor pledge reports to campaigns. OPM proposes to: ◦ Require payroll offices to either distribute funds to the charities directly, of if funds are distributed to the CCA, provide more detailed reports  OPM Final Rule: ◦ OPM directs payroll offices to make payments to CCA(s), not directly to designated charities 17

18  CFC-50 Commission Final Report: ◦  OPM Final Rule: ◦ 18


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