Summary: In response to a congressional request, GAO reviewed the Office of Personnel Management's (OPM) fiscal control of the Combined Federal Campaign.
A review of random samples of pledge cards received by 16 local campaigns in 1984 showed that at least 97 percent of all contributions in each campaign were recorded and distributed in accordance with OPM regulations. However, when federal personnel wanted to designate their contributions but did not complete their pledge cards properly, the managing charity in 7 of 20 local campaigns studied did not contact the contributors to clarify information. Absent an OPM regulation regarding the correct handling of improperly completed pledge cards, such contributions in those campaigns were retained for distribution by the charity managing the campaigns rather than being forwarded to the charities that had actually been designated by the contributors. According to the managing charities, three of these campaigns changed their follow-up procedures in 1985, while four continued to treat improperly prepared pledge cards as designations to themselves. In addition, GAO found that fund-raising costs have increased in recent years because: (1) the charities that managed each local campaign have begun to charge for indirect services they previously had provided without charge; (2) the administrative responsibilities of managing charities have increased because of changes in OPM regulations; and (3) of inflation. GAO found that some of the increase in fund-raising costs could have been offset in three of the campaigns if idle campaign funds had been placed in interest-bearing accounts.
