Agency Financial Report

FISCAL YEAR 2014

AmeriCorps | Senior Corps | Social Innovation Fund | Volunteer Generation Fund 

Table of Contents

I. Management’s Discussion and Analysis

Message from the Chief Executive Officer ...................................................................................2

Agency Mission and Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Strategic Priorities .....................................................................................................8

CNCS Programs and Performance ........................................................................................11

Management Performance ..............................................................................................23

Internal Controls, Audit Results, and Management Assurances ..................................................................26

Analysis of Appropriations and Financial Condition ...........................................................................30

II. Financial Statements

Message from the Acting Chief Financial Officer .............................................................................35

Consolidated Financial Statements .......................................................................................36

III. Independent Auditor’s Report

Office of Inspector General (OIG) Transmittal Letter ...........................................................................62

Independent Auditor’s Report on Financial Statements ........................................................................64

Independent Auditor’s Report on Internal Control and Compliance ...............................................................67

OIG Transmittal Letter for Trust Fund Financial Statements .....................................................................77

Independent Auditor’s Report on the Trust Fund Financial Statements ............................................................79

Management’s Response ...............................................................................................82 

IV. Other Information

Donations and Contributions ............................................................................................85

National Service Trust Fund Status Report ..................................................................................88

Improper Payments ..................................................................................................110

Freeze the Footprints .................................................................................................117

How to Serve

If you are interested in joining or learning more about CNCS programs, go to nationalservice.gov. Click “Serve Your Community” to discover which 

opportunity is right for you.

An electronic copy of this report is available on the web at: www.nationalservice.gov/about/role_impact/performance.asp 

This report is in the public domain. Authorization to reproduce it in whole or in part is granted. The citation should be: Corporation for National and 

Community Service FY 2014 Agency Financial Report, Washington, DC, 20525.

To request a printed copy of this report, obtain this report in a format that is accessible to individuals with disabilities, or provide any feedback regarding 

this report, please contact the Office of the Chief Financial Officer at 202-606-5000 or at the mailing address noted on the page following.
Fiscal Year 2014

Agency 

Financial Report

About this Report

In lieu of a Performance and Accountability Report, the 

Corporation for National and Community Service (CNCS) 

will instead produce three reports that provide financial 

management and program performance information. Each 

report will be available on CNCS’s website at 

www.nationalservice.gov/about/budget-and-performance/ 

performance-and-accountability-reports as they are 

completed.

• This report, the Agency Financial Report (AFR), 

focuses on CNCS’s financial management and 

the results of the agency’s annual financial audit. 

It includes management’s assurance statement, 

CNCS’s improper payments report, and a response 

from management.

• The Annual Performance Report (APR) provides an 

overall assessment of agency performance. The APR 

will be included in CNCS’s FY 2016 Congressional 

Budget Justification, which will be transmitted to 

Congress in February 2015.

• The Performance Highlights Report summarizes 

key information from the AFR and APR. It will be 

available in February 2015.

These reports meet all requirements under the 

Government Performance and Results Act, the Federal 

Financial Management Improvement Act, the Federal 

Managers’ Financial Integrity Act, the Government 

Corporation Control Act, and the Federal Information 

Security Management Act, among others. These 

reports also follow applicable guidance from the Office 

of Management and Budget (OMB), as well as the 

recommendations of the Association of Government 

Accountants’ Certificate of Excellence in Accountability 

Reporting program.

How This Report Is Organized

Section I: Management’s Discussion and Analysis

Section I provides an overview of performance and financial information. 

It includes a brief history of CNCS, introduces its mission, and contains a 

description of CNCS’s organizational structure and strategic framework. 

This section highlights performance and key accomplishments in each of 

CNCS’s strategic goals and objectives. Section I also provides management’s 

assessment of future priorities and management’s assurances over internal 

controls. The section closes with highlights of financial results.

Section II: Financial Statements

Section II begins with a message from the Acting Chief Financial Officer. 

The section contains the details of CNCS’s finances to include the audited 

financial statements and footnotes.

Section III: Independent Auditor’s Report

Section III provides the independent auditor’s reports on the audited 

financial statements and footnotes, compliance matters, and internal 

controls. This section also contains management’s response to the results of 

the auditor’s report.

Section IV: Other Information

Section IV provides supplementary reporting of Donations and 

Contributions, the National Service Trust Fund, Improper Payments, and 

Freeze the Footprint. Donation and Contribution reporting identifies the 

nature and amount of donations, as well as how they were used and 

disposed of in support of CNCS’s programs and activities. The National 

Service Trust Fund Status Report provides status of education awards and 

student loan interest forbearance to eligible participants. The Improper 

Payments section provides an assessment of Improper Payments made by 

each program or activity in the agency and actions taken to recover them. 

The section ends with Freeze the Footprint, which provides a status of 

leased space held by CNCS.

1201 New York Avenue, NW 

Washington, DC 20525

202-606-5000 • TTY 202-606-3472 

NationalService.gov info@cns.gov
Management’s Discussion & Analysis | PART I 2

The Corporation for National and Community Service

Message from 

the CEO

Since its creation 20 years ago, the Corporation for National and 

Community Service (CNCS) has tapped our nation’s greatest 

resource—the American people—to get things done.

Working hand in hand with thousands of local partners, CNCS 

programs improve lives, strengthen communities, and engage millions 

of Americans in solving tough problems.

I am pleased to present our fiscal year 2014 (FY 2014) Agency Financial 

Report, which demonstrates our continued commitment to strong 

performance, focused investments, innovative partnerships, and 

management excellence.

This past year, CNCS engaged millions of Americans of all ages and 

backgrounds in service, provided critical services to communities 

across the U.S., strengthened thousands of nonprofit and faith-based 

groups, forged innovative partnerships, increased accountability, and 

continued our strong record of reliable fiscal stewardship reflecting our 

dedication to build a better future for our citizens.

Expanding Economic Opportunity

In FY 2014, we continued our focus on expanding economic opportunity 

by educating students for jobs of the 21st century, connecting returning 

veterans to employment, helping seniors live independently, rebuilding 

communities after disasters, teaching financial literacy, tutoring 

students in low-performing schools, and more.

CNCS programs also expanded economic opportunity for service 

participants, by helping them graduate from high school, gain career 

skills, pursue higher education, and find work. For both beneficiaries 

and participants national service helps expand individual opportunity, 

build family stability, and create more sustainable, resilient 

communities.

Driving Impact and Innovation

This past year, we continued the vision of the bipartisan Edward M. 

Kennedy Serve America Act to target resources on Disaster Services, 

Economic Opportunity, Education, Environmental Stewardship, Healthy 

Futures, and Veterans and Military Families. Focusing on these 

priority areas aligns CNCS programming and uses a standard set of 

performance measures to evaluate progress.

In FY 2014, CNCS continued to leverage substantial non-federal 

support for the growth of evidence-based programs that improve lives 

and build economic independence of low-income individuals through 

the Social Innovation Fund. 

Recognizing the importance of evidence-based approaches, we 

supported a robust research and evaluation agenda to help find and 

share effective practices, increase accountability, and strengthen 

investment in high-impact programs. 

Expanding Partnerships and Growing Volunteerism

National service is a model of public-private partnership that 

recognizes progress is best made by working together. The modest 

federal investment leverages hundreds of millions of additional 

resources from non-CNCS sources to strengthen community impact 

and increase return on taxpayer dollars.

Recognizing the wisdom of this approach, President Obama created the 

Task Force on Expanding National Service to increase national service 

opportunities through partnerships with other federal agencies and 

the private sector. Building on the success of FEMA Corps, School 

Turnaround AmeriCorps, and other initiatives, CNCS created new 

service corps partnerships that meet critical challenges and create 

pathways to opportunity for those who serve. 
Management’s Discussion & Analysis | PART I 3

The Corporation for National and Community Service

Managing for Results and Accountability As we mark our 20th anniversary, we look forward to building on this 

CNCS has a deep commitment to ensuring the highest levels of great foundation and creating more opportunities for Americans to make a 

accountability. In FY 2014, CNCS maintained its unmodified audit difference in their communities.

opinion for the 15th consecutive year. CNCS is committed to improving In Service, its internal controls, oversight, and monitoring to demonstrate the 

importance of integrity, accountability, and transparency. We have built 

an outstanding senior team with the vision and experience to lead the 

agency to higher levels of impact and accountability.

Wendy Spencer

National Service Works for America Chief Executive Officer

America has always been its best when citizens work together, joined in 

common purpose. A sense of shared responsibility is woven into the fabric 

of our nation. For decades, successive Administrations of both parties 

have invested in national services as a smart way to tap the ingenuity and 

can-do spirit of the American people. 
Management’s Discussion & Analysis | PART I 4

The Corporation for National and Community Service

Section I:

Management’s 

Discussion 

& Analysis

Agency Mission 

and Overview

The mission of the Corporation for National and Community Service 

(CNCS) is to improve lives, strengthen communities, and foster civic 

participation through service and volunteering.

Service is and always has been a vital part of the American character. 

From the earliest days of our nation, Americans have stepped forward to 

help their neighbors and their communities, cultivating a rich legacy of 

service and citizenship that continues to this day. 

One of the ways Americans express their citizenship is by serving their 

communities. National service and volunteerism show the best of the 

American spirit – people turning toward problems instead of away, 

working together to find community solutions. As President Obama said 

in the 2014 State of the Union Address, “Citizenship demands a sense 

of common cause; participation in the hard work of self-government; an 

obligation to serve in our communities.”

Since its creation 20 years ago, CNCS has led the nation’s efforts 

to tap the energy of citizens to solve problems in their communities. 

Working hand in hand with thousands of local partners, CNCS improves 

lives, expands economic opportunity, bolsters civic and faith-based 

organizations, and engages millions of Americans in service. 

Americans engaged in national service make an intensive commitment to 

tackle some of the most pressing challenges facing our nation by: 

• Educating students for the jobs of the 21st century

• Supporting individuals, families, and neighborhoods on the road to 

economic recovery

• Addressing the needs of military families and a new generation of 

veterans returning from war

• Helping communities rebuild after natural disasters 

• Promoting health and well-being

• Preserving the nation’s parks and public lands. 

Through its programs, CNCS engages 5 million Americans in service each 

year at more than 60,000 locations across the country, from large cities to 

small towns to rural areas.

Expanding Economic Opportunity

In all its programs, CNCS seeks to expand economic opportunity – helping 

disconnected youth, new Americans, veterans, military families, seniors, 

people with disabilities, and others acquire the skills, education, and 

training they need for productive employment. 

CNCS programs expand economic opportunity in two ways. First, national 

service and volunteerism supports the beneficiaries of our programs 

by expanding individual opportunity, building family stability, and 

creating more sustainable, resilient communities. When national service 

participants help seniors live independently in their homes, or provide 

tutoring to help students graduate, or work alongside a low-income family 

to build a new home, they are driving economic independence. 

Second, national service is a proven pathway to education and 

employment for those who serve. AmeriCorps is viewed as a ladder 

to economic opportunity that provides members with valuable skills, 

leadership abilities, and experience to help jumpstart their careers. In 

addition to gaining valuable experience to help them find employment, 

AmeriCorps alums have earned an estimated $2.7 billion over 20 years in 

educational scholarships to help them pay for college and job training or 

pay back student loans.

CNCS research reinforces the positive connection between volunteering 

and employment. As shown in its seminal study, Volunteering as a 

Pathway to Employment, CNCS found that after a period of unemployment, 
Management’s Discussion & Analysis | PART I 5

The Corporation for National and Community Service

volunteers have a 27 percent higher likelihood of becoming employed than capacity, prepares young people for emergency management careers, and 

non-volunteers. This link was stable across socioeconomic variables such saves significant taxpayer dollars. School Turnaround AmeriCorps is a 

as gender, age, ethnicity, geographical area, or job market conditions. partnership between the U.S. Department of Education and AmeriCorps 

Volunteering can increase a person’s social connections, professional that is bringing hundreds of new AmeriCorps members into some of the 

contacts, skills, and experiences - all factors that are positively related nation’s lowest-performing schools, where they will work to boost student 

to finding work. Thus the millions of volunteers engaged through CNCS academic achievement, attendance, high school graduation rates, and 

programs each year not only help their communities, they can improve their college and career readiness. 

own employment prospects. Building on the success of these partnerships, President Obama created 

By helping more Americans graduate from high school, pursue higher the President’s Task Force on Expanding National Service (Task Force), 

education, and find work, national service provides immediate benefits co-chaired by the Domestic Policy Council and CNCS. The Task Force was 

to the community and significant long-term benefits to service recipients the latest in a series of actions the Administration has taken to expand 

and those who serve. opportunities for Americans to serve, to focus service on our toughest 

challenges, and to increase the impact citizens have on our communities 

Expanding Impact through Partnerships and nation. Through the new partnerships, an estimated $33 million in 

National service is a public-private partnership that recognizes no one additional resources have been dedicated to these priorities, including 

sector can meet our challenges alone, and that we make progress best creating approximately 4,200 opportunities to serve in our communities.

by working together. Nearly everything CNCS does is accomplished by 

For instance, AmeriCorps, Citi Foundation, and Points of Light launched working with and through others – including nonprofit and faith-based 

an initiative to help 25,000 low-income youth develop the skills they need organizations, schools and higher education institutions, government at 

to prepare for college and careers. The 225 AmeriCorps members who all levels, businesses, and, ultimately, individual citizens. 

will serve in this partnership will engage youth age 16-24 in a volunteer 

As the nation’s largest grant-maker for service and volunteering, CNCS response effort in 10 cities. In the summer of 2014, as part of a major 

supports thousands of organizations, including schools, food banks, expansion of the Science, Technology, Engineering, and Math (STEM) 

homeless shelters, health clinics, youth centers, veteran’s service AmeriCorps initiative, President Obama announced at the White House 

facilities, and hospitals. CNCS’s programs help these organizations Science Fair that CNCS placed 256 AmeriCorps VISTA members in Alabama, 

expand their reach and impact1 through their direct service and by Florida, Georgia, Mississippi, South Carolina, and West Virginia. These 

recruiting and managing volunteers. A modest federal investment by AmeriCorps VISTA members connected approximately 20,600 at-risk 

CNCS leverages approximately $829 million in additional resources students in low-performing schools to STEM opportunities. As part of the 

from non-CNCS sources to strengthen community impact. In addition Administration’s My Brother’s Keeper initiative, CNCS joined the Department 

to collaborating with nonprofit organizations across the country, CNCS of Justice in launching Youth Opportunity AmeriCorps, a $10 million 

also works with federal, state, and local government to coordinate investment to enroll disconnected youth in national service programs. 

efforts, engage citizens, and carry out programming to meet important 

community needs. Evaluation and Accountability

CNCS has made it a priority to develop a knowledge and evidence Congress created national service as a shared federal-state partnership, base to support the agency’s mission, programs, and strategic goals providing a central role for governors in designing and implementing through rigorous program evaluation and research initiatives. CNCS’s national service through Governor-supported State Service Commissions. emphasis on evaluation is aligned with the Administration’s guidance CNCS also works closely with mayors and city officials across the on the importance of using evidence and rigorous evaluation in budget, 

country, supporting organizations that achieve measurable results where management, and policy decisions. CNCS believes that implementing a 

the need is greatest. robust research and evaluation agenda is critical to our ability to achieve 

and communicate the value that national service and social innovation On the federal level, CNCS has developed several innovative partnerships 

bring to communities across the country. with other agencies to meet critical challenges and expand opportunities 

for those who serve. For example, FEMA Corps is a unit of the AmeriCorps CNCS also has a deep and ongoing commitment to ensuring the highest National Civilian Community Corps (NCCC) that strengthens disaster levels of accountability in the agency’s financial and program operations. 

1

 CNCS will update this leveraged resource number in the agency’s FY 2016 Congressional Budget Justification (CBJ).
Management’s Discussion & Analysis | PART I 6

CNCS is fostering a culture of integrity, accountability, and transparency America Act (SAA) reauthorized and expanded the mission and operation 

by fortifying its internal controls, oversight, and monitoring. CNCS of CNCS, amending the National and Community Service Act of 1990 and 

established an Office of Accountability and Oversight (OAO) to implement the Domestic Volunteer Service Act of 1973.

an Integrity Framework as a set of disciplined practices to help ensure The SAA authorized both the expansion of existing service programs CNCS’s organizational effectiveness, cohesion, and longevity. and the creation of a number of new programs and initiatives to provide 

opportunities to serve as well as support for the nonprofit sector. The 

legislation also directed CNCS to target resources on a core set of 

Legislation critical national problems and evaluate our impact using standardized 

performance measures. Congress created CNCS in 1993, merging the work and staff of two 

separate agencies that provided opportunities for Americans of all ages 

and backgrounds to serve their communities.

At its inception, CNCS was directed to manage two programs:

• Senior Corps, which incorporated the Foster Grandparents Program 

(FGP), RSVP, and Senior Companion Program (SCP);

• The newly created AmeriCorps, which incorporated VISTA, State and 

National, and NCCC.

Enacted on April 21, 2009, the bipartisan Edward M. Kennedy Serve 
Management’s Discussion & Analysis | PART I 7

The Corporation for National and Community Service

Organizational Structure The CEO provides overall management of the agency’s programs and 

operations, including more than 500 employees who work throughout the 

Headquartered in Washington, D.C., CNCS is an independent federal United States and its territories. The Board of Directors works closely with 

agency with a Board of Directors, Chief Executive Officer (CEO), and the CEO to set policies and direction for CNCS, advises the President and 

Inspector General (IG)—all of whom are appointed by the President and Congress concerning developments in national and community service 

confirmed by the Senate. that merit their attention, and conducts an annual evaluation of the CEO.

Figure 1: CNCS Organization Chart 

Government Relations 

K. Allman

Research & Evaluation

S. Plank

External Affairs

T. Miller

Board of Directors

AmeriCorps State & Nat’l

W. Basl

Chief of Program Operations

K. Mansaray

Chief of Staff

A. Mishra

Chief Executive Officer

Wendy Spencer

AmeriCorps NCCC

J. Phillips

AmeriCorps VISTA

P. Monteiro

Inspector General

Deborah Jeffrey

Field Liasion

M. Berning

Senior Corps

E. Tan

General Counsel

V. Green

Chief Operating Officer 

J. Page

Social Innovation Fund

M. Bradley (Acting)

Chief Financial Officer*

J. Page (Acting)

Human Capital

A. Wasilisin

Procurement 

R. Gaither

Accountability & Oversight

D. Hilton

Administrative Services

V. Emerson

Information Technology*

P. Clark

Organization Chart is as of November 1, 2014 

* Denotes staff that also have reporting line to the CEO
Management’s Discussion & Analysis | PART I 8

The Corporation for National and Community Service

Figure 2: CNCS Field Offices 

Strategic Priorities These steps include building structures and systems for performance 

measurement, analysis, and knowledge management, and enhancing 

During FY 2014, CNCS received $1.1 billion in resources that it used to staff capacity to support results-based services. Highlights of this 

focus national service on six priority areas: Disaster Services, Economic effort are provided in this report. In addition, CNCS recently updated its 

Opportunity, Education, Environmental Stewardship, Healthy Futures, FY 2014 through 2018 Strategic Plan. The agency will use the plan to 

and Veterans and Military Families. In addition, CNCS set forth goals continue to focus on growing national service, leveraging evaluation to 

outlined in the tables on the following pages to help improve the lives and drive community impact and social innovation, and expanding economic 

strengthen the communities of those serving and being served by the opportunity for those who serve and benefit from service. While 

agency’s programs. working toward these goals, CNCS will also renew its commitment to 

operational efficiency and accountability. More specific information on CNCS’s priority measures provide a common focal point for all its related performance initiatives will be presented with CNCS’s FY 2016 programs, and allow the agency to demonstrate the tangible ways in Congressional Budget Justification. which its grantees and participants are having an impact. As CNCS works 

to expand and strengthen national service, the agency is also taking 

additional steps to adopt a more performance-oriented culture. 
Management’s Discussion & Analysis | PART I 9

The Corporation for National and Community Service

Strategic Priority Goals

Goal 1: Increase the impact of national service on community needs in communities served by 

CNCS-supported programs

Disaster Services Number of individuals that received assistance from CNCS-supported programs in disaster preparedness, 

mitigation, response, and/or recovery.

Economic Opportunity Percent of economically disadvantaged people who showed improvement in their housing situation after 

receiving housing related assistance from CNCS-supported members, participants, and volunteers.

Education Percent of children that demonstrated gains in school readiness. 

Percent of students served by or serving in CNCS-supported programs that demonstrated improved academic 

performance (including the percent meeting state proficiency levels in literacy and/or math, or whose scores on 

state standardized tests improved).

Percent of students served by CNCS-supported programs, or engaged in CNCS-supported service-learning, 

that demonstrated improved academic engagement.

Environment Stewardship Number of at-risk acres (land and/or water) improved by CNCS-supported members, participants, and 

volunteers.

Healthy Futures Percent of homebound or older adults and individuals with disabilities who received CNCS-supported services 

and reported having increased social ties/perceived social support.

Number of individuals that gained access to food resources provided with the assistance of CNCS-supported 

members, participants, or volunteers. 

Veterans and Military Families Number of each of the four categories of service recipients (veterans, veterans’ family members, family 

members of active duty military, and military service members) that received CNCS-supported assistance.
Management’s Discussion & Analysis | PART I 10

The Corporation for National and Community Service

Goal 2: Strengthen national service so that participants engaged in CNCS-supported programs 

consistently find satisfaction, meaning, and opportunity

Veterans and Military Families Number of veterans and military family members engaged in providing services through CNCS-supported 

programs.

Member Experience Percent of service participants engaged in CNCS-supported programs who report gaining skills they can apply 

to future educational, professional, or civic endeavors.

Goal 3: Maximize the value we add to grantees, partners, and participants

Social Innovation Percent of organizations that implement evaluations that demonstrate stronger evidence of program 

effectiveness than prior to receiving CNCS national service participants or funding.

Capacity Building Number of community volunteers recruited and/or managed by CNCS-supported organizations or National 

Service Participants.

Goal 4: Fortify management operations and sustain a capable, responsive, and accountable 

organization

IT Complete modernization of IT infrastructure.

Financial Management Ensure that no material internal control or compliance issues are identified in the annual financial statement 

audit.

Grant Management Award and close grants and contracts within prescribed timeframes.
Management’s Discussion & Analysis | PART I 11

The Corporation for National and Community Service

CNCS Programs

and Performance2

AmeriCorps State and National

For more than two decades, AmeriCorps State and National has engaged 

hundreds of thousands of members in intense, impactful service in every 

state. These AmeriCorps members have dedicated millions of hours of 

service in communities across the nation – tutoring children who are 

struggling in school, responding to natural disasters, building homes for 

low-income families, and helping returning veterans and their families. 

In meeting these community needs, AmeriCorps has been the catalyst 

for many of our country’s most respected and innovative non-profit 

organizations in serving our most vulnerable citizens.

AmeriCorps State and National service also builds leadership and 

employment skills and serves as a training ground for our nation’s 

future leaders. AmeriCorps State and National programs are designed 

and managed by national and community organizations that have 

demonstrated knowledge, expertise, and capacity to deploy AmeriCorps 

State and National members aged 17 years and older to meet critical 

needs across CNCS’s six priority focus areas: education, healthy futures, 

environmental stewardship, economic opportunity, disaster services, and 

veterans and military families

AmeriCorps State and National Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2014 ENACTED LEVEL: $335.4 MILLION

In FY 2014, AmeriCorps State and National grantee organizations enrolled 

approximately 64,500 AmeriCorps members who served in all 50 states as 

well as many territories and tribes, in nearly 15,000 community locations.3 

AmeriCorps members recruited, trained, or supervised an estimated 2.6 

million additional community volunteers. These AmeriCorps-managed 

volunteers provide a significant boost to organizations by greatly 

expanding their reach and impact.

AmeriCorps members and the additional volunteers they leveraged helped 

disadvantaged Americans find housing, supported students to improve 

academic performance, and provided critical assistance to those affected 

by natural disasters, in addition to offering many other solutions for local 

challenges. CNCS will provide priority performance measure data for 

these focus areas in the agency’s FY 2016 CBJ.

Education Highlight

Education is the single largest priority area for AmeriCorps State and 

National grantees. During FY 2014, approximately 50 percent of all 

current AmeriCorps State and National grantees were primarily focused 

on education. AmeriCorps State and National grantees are providing 

education services in the neighborhoods of one in 10 public schools 

(10,010 out of 103,483 total public schools). AmeriCorps State and 

National grantees are serving students from 1 out of 4 persistently low 

achieving schools. The communities AmeriCorps members serve are also 

more likely to be impoverished. 

Partnerships Highlight

The School Turnaround AmeriCorps program is designed to support the 

placement of a dedicated cadre of AmeriCorps members in persistently 

low-performing schools across the country. School Turnaround AmeriCorps 

members keep students on track to graduate by increasing student 

academic achievement, attendance, and high school graduation rates; 

improving college and career readiness; and providing college enrollment 

assistance and advice.

2

 All Performance-related data is estimated based on the previous year.

3

 AmeriCorps State and National grant awards are made near the end of the fiscal year. As a result, programs funded with the FY 2013 grants operate into FY 2014. Therefore, information reported 

here is for FY 2013 grants. 
Management’s Discussion & Analysis | PART I 12

The Corporation for National and Community Service

AmeriCorps 20th Anniversary events recognized the extraordinary impact of AmeriCorps members and 

The 20th anniversary of AmeriCorps highlighted the important role alums over the past 20 years and welcomed a new class of AmeriCorps 

that national service plays in meeting critical community needs and members as they embarked on a year of service. The nationwide ceremony 

transforming the lives of those who serve. Since 1994, more than 900,000 also showcased how AmeriCorps has grown through innovative publicmen and women have served in AmeriCorps, providing more than 1.2 private partnerships in coordination with the President’s Task Force on 

billion hours of service addressing critical challenges from poverty and Expanding National Service. 

hunger to disasters and the dropout crisis. AmeriCorps members have The participation of former Presidents Bill Clinton and George H.W. Bush earned more than $2.7 billion in education scholarships to pay for college in the nationwide pledge ceremony underscored the history of bipartisan and job training or pay back student loans. presidential support for AmeriCorps. From President George H.W. Bush 

Concluding a year-long recognition of the AmeriCorps 20th anniversary, signing the first national service legislation in 1990, to President Clinton 

President Obama participated in a nationwide AmeriCorps pledge creating AmeriCorps in 1993, to President George W. Bush adding 25,000 

ceremony at the White House on September 12, 2014. More than 80 pledge AmeriCorps positions after the 9/11 attacks, national service has spanned 

ceremonies took place across all 50 states, Washington D.C., Puerto Rico, administrations of both parties. 

the U.S. Virgin Islands, Guam, and the Northern Marianna Islands. The 
Management’s Discussion & Analysis | PART I 13

The Corporation for National and Community Service

AmeriCorps VISTA

AmeriCorps VISTA was created to help reduce poverty and build economic 

opportunity throughout the country. Authorized in 1964 as Volunteers in 

Service to America, the program became part of the AmeriCorps network 

of programs in 1993. AmeriCorps VISTA primarily supports efforts to 

alleviate poverty by engaging individuals aged 18 and older in a year of 

full-time service. These AmeriCorps members build the organizational, 

administrative, and financial capacity of programs that help low-income 

Americans gain the skills and resources they need to break the cycle of 

poverty.

AmeriCorps VISTA Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2014 ENACTED LEVEL: $92.4 MILLION

Building on its long history of public-private partnerships, AmeriCorps 

VISTA created and expanded collaborations with federal agencies, 

nonprofits, and the private sector in FY 2014. During FY 2014, 20 percent 

of all AmeriCorps VISTA living allowances for members were supported 

through cost-share agreements funded by the local communities served. 

This cost share program enabled CNCS to support nearly 1,600 additional 

AmeriCorps VISTA members in FY 2014.

In FY 2014, AmeriCorps VISTA placed 7,782 AmeriCorps VISTA members 

(including 5,838 full-time and 1,944 Summer Associates), in more than 

4,000 organizations across the country.4

 The capacity-building activities 

performed by the AmeriCorps VISTA members varied, depending on the 

local needs, but some activities were common among many sponsors. 

For example, 81 percent of all sponsors assigned one or more of their 

AmeriCorps VISTA members to resource development, and these members 

raised more than $160 million in cash and in-kind resources in support of 

anti-poverty programs. Similarly, 88 percent of sponsoring organizations 

used one or more of their AmeriCorps VISTA members to build their 

capacity to recruit and manage community volunteers. These AmeriCorps 

VISTA members meaningfully engaged nearly 1.4 million community 

volunteers in service.

FY 2014 was an important year for AmeriCorps VISTA as the program 

continued developing tools to measure the impact of AmeriCorps VISTA 

projects. CNCS completed technical requirements for a new project 

application and reporting system, which will assist applicants in 

developing project plans that incorporate CNCS national performance 

measures, capture data to demonstrate progress, and increase 

accountability. These new systems will be fully implemented for FY 2015 

and will improve resource allocation decisions and results measurement.

Shaping Our Appalachian Region

Kentucky Governor Steve Beshear (D) and Congressman Hal Rogers 

(R-KY) launched Shaping Our Appalachian Region to help meet 

the challenges in eastern Kentucky related to unemployment and 

poverty. The initiative is intended to help the region develop and 

put into action new locally-oriented strategies to attack persistent 

challenges. Through this investment of more than $1.05 million, 

more than 50 AmeriCorps VISTA members will provide more than 

100,000 volunteer hours over the next year to eastern Kentucky 

families and individuals in the areas of job creation and retention, 

youth engagement, education success, and health and human 

services. These AmeriCorps VISTA members will recruit and manage 

volunteers, raise funds, and build the capacity of 16 local nonprofit 

and education organizations that tackle poverty and expand 

opportunity to 50 counties in rural Kentucky’s Appalachian region.

ServiceWorks

Powered by the Citi Foundation, AmeriCorps and Points of Light, 

ServiceWorks is a groundbreaking, national program that uses 

volunteer service as a strategy to help 25,000 low-income youth 

and young adults in 10 cities develop the skills they need to 

prepare for college and careers. The program, which will deploy 

225 AmeriCorps members over three years, will engage youth, ages 

16–24, in service and build a large-scale volunteer response to the 

crisis of low college and career attainment. 

4

 CNCS enhanced its data collection method in FY 2014, allowing it to track actual AmeriCorps VISTA member project sites. Thus, CNCS reported 3,000 more service locations in FY 2014 compared to 

the prior year.
Management’s Discussion & Analysis | PART I 14

The Corporation for National and Community Service

AmeriCorps National Civilian Community Corps

AmeriCorps National Civilian Community Corps (NCCC) is a residential, 

team-based program that provides opportunities for young Americans 

between the ages of 18 and 24 to address pressing national and 

community needs in all 50 states through 10 months of full-time, 

intensive national service. 

AmeriCorps NCCC provides rigorous training in skills such as first aid, 

CPR, firefighting, case management and asset mapping, and volunteer 

coordination. This training prepares members to serve as lead CNCS 

disaster responders and as force multipliers who can effectively 

coordinate and manage episodic volunteers. 

In addition to disaster preparation, mitigation, response, and recovery, 

traditional AmeriCorps NCCC members serve at the request of local, 

state, and regional organizations in the areas of infrastructure 

improvement, environmental stewardship and conservation, urban and 

rural development, and energy conservation.

AmeriCorps NCCC Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2014 ENACTED LEVEL: $30.0 MILLION

In FY 2014, AmeriCorps NCCC enrolled 1,000 members and recruited 

or managed an additional 23,000 volunteers in efforts to improve 

communities throughout the country. The program continued to serve 

in the focus areas identified in the Serve America Act and CNCS’s 

Strategic Plan: natural and other disasters, infrastructure improvement, 

environmental stewardship and conservation, urban and rural 

development, and energy conservation. In support of CNCS’s work in 

these strategic focus areas, NCCC teams spent 36 percent of total project 

hours on urban and rural development, 30 percent on environmental 

stewardship and conservation, 24 percent on nationwide disaster 

services, eight percent on infrastructure improvement, and two percent 

on energy conservation projects. In addition, 26 AmeriCorps FEMA Corps 

teams provided humanitarian support for the unaccompanied children in 

Texas and Arizona. 

In FY 2014, AmeriCorps NCCC members:

• Suppressed or contained wildfires on 89 acres, removed 1,173 acres 

of brush or undergrowth to prevent fires, and performed prescribed 

burns on more than 17,544 acres to prevent further wildfire spreading

• Assisted 17,809 homeless people, 24,247 at-risk youth, and 5,893 

veterans

• Taught 11,129 people in environmental classes/workshops

• Planted 41,068 new trees

• Recruited and coordinated 23,079 volunteers

• Constructed 272 houses and weatherized/outfitted other homes with 

energy-efficient modifications

• Returned approximately $13 million tax dollars to American 

communities through tax preparation services.

AmeriCorps NCCC members participated in disaster response and 

recovery efforts in partnership with the Federal Emergency Management 

Agency (FEMA), the American Red Cross, Governor-supported 

Commissions, and local municipalities in 22 states, including continued 

recovery efforts in the aftermath of the Colorado floods, as well as in 

the Atlantic states affected by Hurricane Sandy, and provided support 

following tornadoes in Tupelo, Mississippi. 

Building on AmeriCorps NCCC disaster work and a 20-year history 

of working together on disaster response and recovery efforts, the 

Department of Homeland Security’s Federal Emergency Management 

Agency (FEMA) and CNCS launched an innovative partnership in 2012 

to further strengthen the nation’s ability to respond to and recover 

from disasters while expanding professional disaster management 

opportunities for young people.

In FY 2014, FEMA Corps teams provided vital services to survivors of 

the Washington mudslides and Alaskan floods. Support services to the 

Washington mudslide survivors included providing meals to survivors, 

supporting disaster services facilities, and registering people at shelters 

with the National Emergency Management Information System. In Alaska, 

FEMA Corps members assisted with sheltering and feeding survivors, 

operating laundry services, distributing 6,619 meals to survivors, and 

supporting six disaster service facilities. 

Disaster survivors also continue to benefit from innovative practices FEMA 

Corps helped to pilot, such as Disaster Survivor Assistance Teams. These 

groups go door-to-door with tablet computers in areas struck by disasters, 

registering residents who are in need of assistance. This greatly reduces 

burden on survivors when seeking access to government support by 

allowing them to submit information without having to travel to a central 

facility. The Administration has highlighted this effort as a great example 

of government delivering services better, faster, and more efficiently – a 

core element of President Obama’s Management Agenda.

Since the program’s inception, FEMA Corps has served in 91 cities across 

35 states, and has completed more than 7,422 assessments, answered 

more than 32,352 registration or helpline calls, distributed 27,408 

educational materials and/or preparedness kits, and conducted more than 

79,778 case reviews for survivors.
Management’s Discussion & Analysis | PART I 15

The Corporation for National and Community Service

Issue Area

Team Service

Hours 

Completed1

Percentage

of Total Team 

Service Hours

Natural and Other Disasters 264,073 24%

Infrastructure Improvement 84,279 8%

Environmental Stewardship and 

Conservation

319,206 30%

Energy Conservation 23,635 2%

Urban and Rural Development 393,647 36%

Total 1,084,8402 100%

1

All data submitted as of 9/30/2014.

2

 These hours do not include those devoted to training or the 80 hours of 

individual service each NCCC member must complete with a community 

sponsor of their own choosing. 

In addition to capturing the previously discussed performance information, 

AmeriCorps NCCC conducts project sponsor surveys, which provide 

outcome evidence on the community impact of the AmeriCorps NCCC 

program model. The most currently available results, from FY 2013, show 

two primary outcomes of AmeriCorps NCCC projects. First, AmeriCorps 

NCCC service enhanced the capacity of the sponsoring organization to 

meet community needs. Second, collaborating with AmeriCorps NCCC 

expanded or enhanced the sponsoring organization’s community impact. 

Ninety-five percent of the sponsors enhanced their ability to provide 

services, including increasing the number of people they could serve and 

the amount of service they could provide.

AmeriCorps NCCC is a strong contributor to the agency’s strategic 

goal of providing professional, educational, and life benefits to service 

participants. The most currently available data, from CNCS’s 2013 

AmeriCorps NCCC performance measures survey, found that 90 percent 

of members report that the AmeriCorps NCCC training and experience 

helped them to improve in sensitivity and respect for differences between 

people. In addition, 84 percent of members report that the training and 

experience strengthened their commitment to community service. Eightysix percent also report that they are likely to motivate others to strengthen 

their commitment to community service in the next year. Seventy-nine 

percent intend to volunteer more frequently.

Governor-Supported State Commissions

Since CNCS’s inception in 1993, Congress envisioned AmeriCorps and 

national service as a joint state-federal undertaking. To carry out 

this partnership, Congress created a unique role and responsibility for 

State Service Commissions on service and volunteering (Commissions). 

More than a thousand private citizens serve as governor-appointed 

commissioners and direct the states’ national and community service 

efforts. These State Service Commissions serve as invaluable partners to 

CNCS identifying local needs and directing federal and state resources to 

address them.

Through partnerships with state and local governments, Governorsupported Commissions advance the Administration’s goal to develop 

results-driven relationships within and outside of government at all levels. 

The Texas Commission partnered with the Bush School of Government and 

Public Service at Texas A & M University to identify the best mechanisms to 

build the capacity of the nonprofit sector to address community problems. 

This has resulted in the Commission developing other governmental and 

private sector partnerships to increase collaboration among nonprofit 

agencies across the state and to expand effectiveness in addressing 

immediate economic recovery needs and other social services challenges. 

Texas has now expanded this type of partnership with 10 universities. 

As a result of revisions CNCS made to the application requirements for 

Commission Support grants in 2014, Governor-supported Commissions 

are providing more extensive information to CNCS about their goals and 

performance measures for their support grants. CNCS requires Governorsupported Commissions to report their plans and activities in three major 

areas: AmeriCorps Grant Outreach and Selection, Program Compliance and 

Performance, and Collaboration and Sustainability. In addition, Governorsupported Commissions must select and report on specific capacitybuilding performance measures. This will allow CNCS to aggregate and 

track both outputs and outcomes across the Governor-supported State 

Commission network. The agency anticipates sharing actual data for these 

measures in future performance reports. 

These Governor-supported Commissions support and connect AmeriCorps 

National Direct operating sites to the state’s AmeriCorps Network. 

Governor-supported Commissions are responsible for conducting a variety 

of activities in their states to ensure accountability and maintain a strong 

network of service delivery. These activities include training, performance 

reviews, site visits, risk assessments, and other oversight activities. As the 

centers for national service and volunteer activity in their states, Governorsupported Commissions have established partnerships that strengthen 

service and expand volunteer opportunities.

Governor State Service Commissions Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2014 ENACTED LEVEL: $15 MILLION
Management’s Discussion & Analysis | PART I 16

The Corporation for National and Community Service

RSVP 

RSVP engages the skills, talents, and interests of volunteers age 55 and 

older to meet a wide range of community needs, such as mentoring and 

independent living services. RSVP is a flexible volunteer service model 

without established service schedules or compensation for the volunteers 

when on assignment, with the exception of insurance coverage and 

mileage reimbursement.

RSVP Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2014 ENACTED LEVEL: $48.9 MILLION

RSVP volunteers delivered more than 39.3 million hours of service in 

their communities. Across the network of federally funded grantees, 

245,415 volunteers served in more than 38,000 community organizations 

(volunteer stations) nationwide. The volunteers provided essential 

services, such as assisting local organizations that deliver meals to 

the homes of isolated older adults or tutoring at-risk youth in schools. 

Adoption of the CNCS national performance measures by all 615 RSVP 

grants has focused RSVP grantees on increasing community impact. 

Working through such networks as Area Agencies on Aging, Community 

Action Agencies, Volunteer Centers, United Ways, social services agencies, 

and faith-based organizations, RSVP volunteers:

• Served 461,000 veterans in activities such as transportation and 

employment service referrals

• Mentored more than 87,000 children

• Provided independent living services to 610,000 adults, primarily frail 

seniors

• Provided respite services to nearly 15,000 family or informal 

caregivers

• Engaged 21,600 veterans who served as RSVP volunteers.

• Leveraged an additional 32,500 volunteers to support RSVP activities 

such as delivering meals to those in need and tutoring at-risk 

children

In FY 2014, states and local communities contributed more than $39.4 

million in non-federal support, including cash and in-kind, to RSVP 

projects. This level is 45 percent of the total cost, and well above the 

required 30 percent non-federal share required by the program. This 

additional funding, including the $4.4 million in state-appropriated 

dollars, demonstrates the value of services that RSVP volunteers provide 

in their communities. 

For example, in the summer of 2014 RSVP initiated a cross-sectional 

evaluation to describe how RSVP volunteers are engaged under the 

newly adopted national performance measures. The evaluation also 

compares RSVP volunteers to community volunteers and how various 

RSVP volunteers were engaged in service under the FY 2013 work plans. 

Findings are expected to be released in the first quarter of FY 2015. 

The 2013 tornado in central Okalahoma presents another example. In 

the year following the 2013 tornado in Central Oklahoma, more than 90 

RSVP volunteers contributed 4,515 hours to nine nonprofit and state 

organizations working in the recovery effort. Senior Corps RSVP volunteers 

answered disaster hotlines, performed follow-up calls to families affected 

by the disaster, served food and provided companionship at day shelters, 

provided rides to medical appointments, and collected and distributed 

donated goods to disaster survivors.

The RSVP sponsored by Volunteer Macon was instrumental in ensuring 

that elderly residents are not prematurely institutionalized, isolated, and 

companionless. Over the past year, 36 RSVP volunteers served 12,599 

hours assisting 108 homebound elderly residents in Bibb County, Georgia. 

RSVP volunteers supported and assisted these elderly residents with 

transportation to medical appointments, grocery shopping, assistance 

at senior or community centers, and assistance with obtaining social 

As part of treatment and rehabilitation, 

the Queens Veterans Court used 

RSVP volunteers who are also 

veterans, to mentor veterans with 

low level misdemeanors who find 

themselves in court due to behavior, 

mental health, and substance abuse 

issues related to their military service. 

Because the mentors are veterans, 

they more easily relate to the issues 

the veteran may be having. The 

mentors help the veterans get their 

lives back on track and out of the 

revolving door of the justice system. 

Last year, RSVP volunteers mentored 

50 veterans to help keep them from 

issues that would put them in more 

serious judicial court situations. 
Management’s Discussion & Analysis | PART I 17

The Corporation for National and Community Service

services such as energy assistance and commodities, and they also 

provided respite to caregivers. 

For example, beginning in FY 2014, CNCS began planning a 

comprehensive review of the first agency-wide performance data reported 

by Senior Corps RSVP grantees and anticipates providing preliminary 

analysis in the agency’s FY 2016 Congressional Budget Justification. 

Senior Companion Program (SCP)

SCP provides a cost-effective option in the continuum of care available to 

the nation’s aging population. Each year, SCP volunteers serve thousands 

of older and frail adults by providing companionship, transportation, light 

chores, and respite to assist seniors to remain in their own homes. They 

help aging Americans and veterans to maintain their dignity and quality 

of life, while enriching their own lives through their national service 

experience. Traditional program clients include frail seniors, particularly 

women over the age of 85 who live alone, in addition to individuals with 

disabilities and their caregivers. 

Senior Companion Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2014 ENACTED LEVEL: $45.5 MILLION

Approximately 14,000 SCP volunteers delivered 10.7 million hours of 

service to approximately 46,750 frail, older adults and others with 

physical or other limitations, of which 3,480 were veterans. Of the SCP 

volunteers serving, 600 were veterans. SCP volunteers transport clients 

to medical appointments, help shop for food and basic necessities, 

provide companionship to offset isolation, and offer respite to 6,900 

family members and informal caregivers.

The Senior Companion program sponsored by Audubon Area Community 

Services Inc. in Owensboro, Kentucky provides in-home service to 

chronic, long-term care clients. Working in partnership with nine 

volunteer stations, Senior Companions received four hours of in-service 

training monthly on aging issues including, but not limited to, hospice, 

cancer, dementia, Alzheimer’s, and Parkinson’s Disease.

Last year alone, 73 SCP volunteers provided 72,669 hours of in-home care 

assistance to 305 frail elderly clients. Senior Companions worked one-onone with clients to build and maintain independent living skills.

To track the program’s impact, data was collected from Client Care 

Plans. Reports indicated that 79 percent of SCP clients receiving weekly 

assistance maintained or improved their activities of daily living, as 

indicated on the Independent Living Skills surveys completed by volunteer 

stations. Ultimately, 91 percent of SCP clients were able to remain living 

in their own home.

Foster Grandparent Program (FGP)

Foster Grandparent Program is an intergenerational program first 

established in 1965. It connects volunteers age 55 and over with 

opportunities to provide one-on-one mentoring, nurturing, and support 

to children with special needs, exceptional needs, or who are at an 

academic, social, or financial disadvantage. Foster Grandparents help 

young children with special or exceptional needs to gain skills and 

confidence to succeed in school, tutor children in literacy, and assist 

children in the child welfare system.

Foster Grandparent Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2014 ENACTED LEVEL: $107.7 MILLION

Foster Grandparent Program had 27,450 volunteers of whom 1,000 were 

veterans, deliver 23.4 million hours of service in their communities. 

Volunteers served a total of 196,000 children, including mentoring more 

than 113,000 children, 3,400 of whom were children of military families. 

These volunteers served through a network of 321 grants, funded by both 

CNCS and non-federal funds.

Subtitle H—Innovation and Demonstration and Call to 

Service

Subtitle H Innovation funding provides resources for CNCS to support 

and encourage new forms of national service and civic participation and 

improve existing national service programs. The activities in Subtitle 

H generally promote national service and volunteering throughout 

the country. These activities identify innovative program models and 

disseminate practices found to improve the effectiveness of programs and 

projects.
Management’s Discussion & Analysis | PART I 18

The Corporation for National and Community Service

The Syracuse school board approved 

funding for a plan to put a Foster 

Grandparent in every first- and secondgrade classroom in the district. The district 

will contract with PEACE, Inc., the Foster 

Grandparent program sponsor, to place a 

Foster Grandparent in up to 167 classrooms. 

CNCS has invested additional federal 

dollars to leverage this local investment 

with supplemental funding to support 

the successful rapid expansion of the 

Foster Grandparent program. CNCS is 

also providing technical assistance and 

training to support the adoption of national 

service best practices in Syracuse. CNCS 

is evaluating the expansion to be able to 

support other communities as part of the 

Presidential Task Force on Expanding 

National Service. 

Innovation and Demonstration and Call to Service Strategic Goals

2 - Enhance national service 

participant experience

3 - Maximize value to grantees, 

partners, and participants

FY 2014 ENACTED LEVEL: $3.1 MILLION

Call to Service

In FY 2014, Call to Service activities including national days of service, 

partnerships, and convenings that engaged hundreds of thousands of 

Americans in service, expanded national service opportunities to new 

communities, demonstrated impact, and recognized the efforts of those 

who serve. 

As the nation’s largest day of service the 2014 Martin Luther King, Jr. 

(MLK Day) was an especially significant moment for national service. 

Americans came together in all 50 states to deliver meals, refurbish 

schools and community centers, collect food and clothing, support 

veterans and military families, and promote nonviolence. Complete results 

from Martin Luther King Jr. Day grantees will be provided in the agency’s 

FY 2016 CBJ, but initial reports include examples of how volunteers 

recruited mentors, supported job-seekers, built homes and helped citizens 

improve their financial literacy skills. 

In addition to celebrating Doctor King’s legacy with a national day of 

service, CNCS sponsored the September 11th National Day of Service 

and Remembrance, which commemorated the anniversary of the 9/11 

attacks. Volunteers joined their neighbors in all 50 states and the District 
Management’s Discussion & Analysis | PART I 19

The Corporation for National and Community Service

of Columbia to build affordable housing for veterans and military families, 

educate citizens on disaster preparedness, organize food drives, and more. 

Through National Mentoring Month, CNCS and its partners raised 

awareness about the positive impact high-quality mentoring relationships 

can have on young people’s academic achievement, self-esteem, social 

skills, and career development. The National Mentoring Summit brought 

together 500 nonprofit, business, and government leaders to enhance the 

quality and impact of the mentoring programs. The Summit also provided 

a forum to chart the mentoring field’s future and focus the power of 

mentoring on measurable outcomes. 

Working with the Department of Education, CNCS recognized an estimated 

550 schools for exemplary community service in the 2014 President’s 

Higher Education Community Service Honor Roll. Of these designees, five 

institutions received the Presidential Award, the highest honor. 

Support for Innovative Services and Other Assistance

In FY 2014, CNCS support focused on enhancing the agency’s grantee 

and project performance through innovative training models and digital 

infrastructure support focused on compliance, accountability, and 

management. For example, CNCS presented its third Senior Corps Virtual 

Conference, providing training to more than 1,800 registrants. Sessions 

focused on financial and grants management, criminal history checks, and 

compliance monitoring systems. 

In addition to holding the Virtual Conference, CNCS hosted AmeriCorps 

grantees who participated in their annual symposium of 350 leaders of 

state service commissions, multi-state programs, programs operating 

in a territory without a commission, tribal programs, and tribal planning 

grantees. Participants included AmeriCorps national and tribal program 

managers, and state commission executive directors and financial 

officers. Special sessions targeted leaders who are new to managing 

AmeriCorps programs. Training topics focused on financial management, 

grant management, and compliance requirements. 

In 2014, CNCS introduced competitive grants for Regional Training 

Conferences. The events were held in five locations, and reached 

over 1,000 participants, more than triple the total number trained in 

the previous year. This innovative training opportunity reached many 

frontline staff who have not previously benefited from expert training in 

critical topics including financial and grants management, performance 

measures, and criminal history checks. Participants included Senior Corps 

project directors, AmeriCorps project staff, and state commission leaders. 

The Volunteer Generation Fund (VGF)

The Volunteer Generation Fund supports voluntary organizations 

and Governor-supported State Service Commissions that help grow 

volunteerism, increase volunteers’ career skills, and expand opportunity 

for the unemployed, veterans, and disadvantaged youth.

Volunteer Generation Fund Strategic Goals

2 - Enhance national service participant experience

FY 2014 ENACTED LEVEL: $3.8 MILLION

In FY 2014, 17 of the Governor-supported Commissions that received 

CNCS grant awards in the previous year supported volunteer connector 

organizations, trained nonprofits in volunteer management, and increased 

the number of new and continuing skilled volunteers in their states. 

Governor-supported Commissions provided direct support to numerous 

nonprofits and volunteer connector organizations in urban and rural 

communities in their states, and reported on performance measures 

related to volunteer recruitment and management. 

For example, Volunteer Generation Fund grantees:

• Expanded access to volunteer opportunities by expanding geographic 

reach of volunteer centers in underserved communities 

• Improved systems and training for coordinating disaster and 

emergency volunteers to meet immediate and long-term needs

• Implemented a research-based volunteer management curriculum for 

nonprofit organizations

• Enhanced nonprofit organizational capacity to manage and engage 

volunteers in meaningful service through training and technical 

assistance

• Recruited volunteers from specialized populations including college 

students, youth, and corporate volunteers 

• Built capacity to manage volunteers in times of disaster. 

In addition, in late FY 2014, CNCS awarded 17 new Volunteer Generation 

Fund grants for the coming year, including four Governor-supported 

Commissions new to the Volunteer Generation Fund. All grantees will 

subgrant to locally based non-profits and volunteer centers, including 

those located in rural and underserved communities in Mississippi, 

Louisiana, Michigan, and Maryland. Priority areas represented include 

education, disaster response, and building capacity of volunteer 

recruitment and retention. Several grantees will build capacity in 
Management’s Discussion & Analysis | PART I 20

The Corporation for National and Community Service

their states by implementing the Service Enterprise Model, developed 

under the Volunteer Generation Fund grant by California Volunteers. 

Areas of emphasis include recruitment of mentors, Science Technology 

Engineering Mathematics volunteers, and programs that serve 

disconnected youth. 

Evaluation

Research and evaluation is a priority for CNCS as outlined in the Strategic 

Plan. It is designed to develop actionable knowledge to support the 

mission through rigorous program evaluation and research initiatives. 

Evaluation Strategic Goals

3 – Maximize the value to grantees, partners, and participants

FY 2014 ENACTED LEVEL: $5.0 MILLION

CNCS sponsored a quasi-experimental outcome evaluation of the 

Minnesota Reading Corps Pre-Kindergarten Program (a distinct model, 

customized to that stage of child development). The results of this 

evaluation show strong positive impacts on 4- and 5-year-old students in 

five areas of literacy skills in both public school settings and Head Start 

programs. Positive, significant findings emerged for 3-year-old Pre-K 

students as well. 

• Students who received tutoring by Minnesota Reading Corps 

AmeriCorps members achieved higher literacy assessment scores.

• Minnesota Reading Corps tutoring had impact across multiple racial 

groups.

• The Minnesota Reading Corps model is replicable in multiple school 

settings using AmeriCorps members with varied backgrounds.

School Turnaround AmeriCorps Evaluation 

(Design Phase)

School Turnaround AmeriCorps is a partnership between CNCS and the 

Department of Education focused on improving student achievement in 

low-performing schools.5

 During FY 2014, CNCS completed the design 

phase for a School Turnaround AmeriCorps national evaluation. The 

primary purpose of this evaluation is to assess the value brought by 

AmeriCorps above and beyond the school turnaround federal resources 

already invested in these persistently low-achieving schools. 

In partnership with Senior Corps, CNCS’s Office of Research and 

Evaluation oversaw Senior Corps evaluation activities during FY 2014. For 

example, CNCS analyzed over 30,000 Foster Grandparent Program and 

Senior Companion Program volunteers to understand the demographic 

composition of these Senior Corps volunteers and to explore self-rated 

health status. Through this analysis, the agency found higher self-ratings 

of health for Senior Corps volunteers than for a matched comparison 

group of other self-described volunteers from an independent national 

sample (the Health and Retirement Study).

CNCS’s Office of Research and Evaluation partners with the Social 

Innovation Fund program leadership in overseeing the SIF National 

Assessment. During FY 2014, CNCS examined how participation in the 

Social Innovation Fund has affected the policies, practices, and capacities 

of the Social Innovation Fund grantee organizations. The National 

Assessment also examines whether the existence and operations of the 

Social Innovation Fund program are influencing federal grantmaking 

and other actors in the grantmaking and non-profit world more broadly. 

Preliminary findings from this review will be available at several points 

during FY 2015. The effort is intended to conclude in FY 2016. 

During FY 2014, CNCS’s Office of Research and Evaluation worked closely 

with AmeriCorps State and National and its grantees to continue to 

build evaluation capacity aligned with levels of evidence featured in the 

agency’s Notices of Funding Opportunity. The Office provided one-onone technical assistance for large grantees (those receiving more than 

$500,000 from CNCS per year that are required to conduct an external 

impact evaluation). Additionally, the Office developed a core curriculum on 

evaluation principles and methods for all grantees, program officers, and 

other stakeholders.

Social Innovation Fund (SIF)

As one of CNCS’s signature programs to find and scale social 

interventions, the Social Innovation Fund combines public and private 

resources to grow the impact of innovative, community-based solutions 

that have compelling evidence of improving the lives of people in lowincome communities throughout the United States. The SIF invests in 

three issue areas: economic opportunity, healthy futures, and youth 

development.

Social Innovation Fund Strategic Goals

3 – Maximize value to grantees, partners, and participants

FY 2014 ENACTED LEVEL: $70.0 MILLION

The SIF invested $33.7 million in seven new grantee intermediaries, 

provided $18.1 million in continuation funding to existing grantees, and 

selected its inaugural class of Pay for Success grantees with awards 

totaling $12 million. Through the SIF, CNCS also joined OMB’s Performance 

5

 Please see the AmeriCorps State and National section of this report for more information.
Management’s Discussion & Analysis | PART I 21

The Corporation for National and Community Service

Partnership Pilot, which seeks to align cross-agency investment into pay 

for performance social financing. 

In FY 2014, the SIF continued to operate under the following guiding 

principles: 

• Build a solid programmatic and operational foundation to support 

growth and development of promising, innovative program models 

and the generation of compelling outcomes.

• Strengthen the application of rigorous evidence and evaluation in 

critical program phases. 

• Develop key knowledge initiatives, sharing what the SIF learns about 

what works in tackling our nation’s toughest challenges for the 

benefit of other federal agencies and the nonprofit sector.

The SIF portfolio represents a total investment of more than $783 

million. This includes $243.4 million in federal funding to more than 30 

intermediary grantees. 

Through the SIF, more than 217 local nonprofits and programs in 37 

states and Washington, DC, utilizing 87 promising interventions, 

have received funding commitments from more than 200 non-federal 

organizations to date. 

By focusing on priority areas, SIF grantees have reached almost 300,000 

Americans in need with targeted solutions, including efforts to:

• Increase the employability of those seeking work

 > The Center for Employment Opportunities, a subgrantee of 
Management’s Discussion & Analysis | PART I 22

The Corporation for National and Community Service

Disability 

Disability inclusion is a priority for CNCS. In alignment with the agency’s 

authorizing legislation, CNCS seeks to expand opportunities for the 

meaningful and successful inclusion of people with disabilities in national 

service.6 The agency’s disability inclusion strategy supports the objectives 

of Goal 2 in the CNCS strategic plan to strengthen national service so 

that participants engaged in CNCS-supported programs consistently find 

satisfaction, meaning, and opportunity. 

Disability Inclusion Grants Strategic Goals

2 - Enhance national service participant experience

FY 2014 ENACTED LEVEL

CNCS did not receive an appropriation for this line item in FY 2014. 

However, as authorized by the Serve America Act, CNCS funded 

disability activities with money from its program budget.

In FY 2014, to support the goal of inclusion of people with disabilities 

in service, CNCS signed a Memorandum of Understanding with the 

Department of Labor Office of Disability Employment Policy. The MOU 

will further the coordination of policy activities, disseminate effective 

practices, and share informational resources and technical efforts 

between the two agencies. It will amplify mutual interests and engage 

people with disabilities in national service, where they will gain the skills 

and experience that prepare them for gainful employment. 

CNCS also signed a Memorandum of Understanding with Health and 

Human Services’ Administration for Community Living (ACL). Under 

this MOU, ACL and CNCS will jointly recruit, engage, and support older 

Americans and people with disabilities in national service and maximize 

the ability of older adults to live independently. The primary goals of this 

collaboration are: 

• supporting inclusive, accessible service sites and programs

• building integrated National Service Learning Community networks;

 increasing the impact of volunteering by and for older adults and 

persons with disabilities 

• strengthening volunteer service, so that participants find 

satisfaction, meaning and opportunity

• maximizing the value added to grantees, partners, and participants 

through research, technical assistance, evaluation and program 

oversight; and heightening the visibility of volunteering and the ACL/

CNCS partnership.

The process for obtaining funding for reasonable accommodations for 

national service members with disabilities was strengthened. AmeriCorps 

grantees are now able to submit requests for reimbursement after they 

have verified that their AmeriCorps member has a qualifying disability 

under the Americans with Disabilities Act and determined the proper 

reasonable accommodation. 

The cooperative agreement with the National Service Inclusion Project 

was concluded. All evergreen website content (webinars, e-courses, 

and tips) was archived and will move to a CNCS-operated disability 

resource webpage. This webpage will also be the home of five new 

e-courses developed to assist grantees and partners who are supervising 

service members with disabilities to recruit, accommodate, retain, and 

better understand some of the unique issues associated with disability 

identity. This new webpage will also include updated additional resources 

regarding disability issues for grantees and partners. 

6

 For FY 2014, as authorized by the Serve America Act, CNCS used program dollars to fund its disability activities. 
Management’s Discussion & Analysis | PART I 23

The Corporation for National and Community Service

Management Performance the agency meet this goal is the employee satisfaction survey, which 

assesses the extent to which employees believe CNCS provides them 

Human Capital with the necessary support to achieve mission success. Below are the 

CNCS remains committed to ensuring its employees are prepared to most recently available data on employee satisfaction and related trend 

do their jobs effectively and efficiently. An important tool in helping information for previous years.

Employee Satisfaction Trends (2010–2014)

Performance Objective and Measure

Percent of employees who report overall 

satisfaction with their jobs

FY10

Actual

73%

FY11

Actual

69%

FY12

Actual

65%

FY13 

Actual

67%

FY14

Actual

63%

Actual Data Trend FY 10-14

As shown in the table above, CNCS achieved an Employee Satisfaction Information Technology

score of 63 percent for FY 2014, which were two percentage points CNCS’s recent IT investments have focused on addressing Goal 4 of the 

below its annual goal and four percentage points short of the agency’s agency’s Strategic Plan. These investments have resulted in a core set of 

FY 2013 results. This mirrors overall government employee satisfaction IT services to support mission needs and IT policy, process, and tools to 

score which has decreased by six percentage points over the last three enable secure and effective IT management. In FY 2014, OIT continued 

years, suggesting broad federal workforce challenges.7

 CNCS continues to execution of its IT strategy through initiatives and projects focused on:

assess its survey score and identify major drivers. • Protecting systems and data

During 2014, with a goal of improving engagement, effectiveness, and • E xpanding IT capabilities

efficiency across CNCS, the Corporation continued its analyses to improve • Modernizing systems to meet evolving business needs 

the operating structure for CNCS offices. Approximately 5 offices were • Maximizing return on IT investment

analyzed to review staffing, work processes, and core functions. This • Effectively managing agency information resources.

resulted in reorganization and the elimination of unnecessary positions. 

The analysis will continue into 2015. In FY 2014, a Federally-Funded Research and Development Center 

completed an independent assessment of CNCS’s IT Program. The 

In an effort to improve automation of core human resources functions, the assessment provided recommendations that prompted CNCS to initiate 

Office of Human Capital transitioned the agency’s automated timekeeping an IT Modernization Program that will ultimately update the underlying 

system to the National Finance Center. This transition updated an existing technology for the agency’s core grants and member management 

timekeeping system to provide both employees and supervisors greater systems. This update will make data more accessible to support evidenceaccess to time and attendance records. Additionally, the Office of Human based decisions, help staff be more productive, and make the system 

Capital implemented an automated performance management system to more responsive to changing business needs and more cost-effective to 

allow greater use of web-based performance management tools, thereby maintain. 

improving the quality and timeliness of employee feedback and appraisals.

7

 A More Efficient and Effective Government: Cultivating the Federal Workforce, Partnership for Public Service. 2014. http://ourpublicservice.org/OPS/publications/download.php?id=242
Management’s Discussion & Analysis | PART I 24

The Corporation for National and Community Service

Priority Measures

Grantmaking

CNCS is the nation’s largest federal grantmaker focused on supporting national and community service. CNCS provides approximately $750 million 

annually to organizations across the nation to improve lives and strengthen communities through service and volunteering. 

CNCS has adopted the following key indicators to gauge the agency’s effectiveness and efficiency in managing grants. The metrics serve as a 

supplement to the Goal 1 and 2 priority measures in the agency’s strategic plan.8

CNCS High Priority Measures

CNCS Strategic Goal 4: Strengthen and align operations to support and grow innovative community solutions and national service

Performance Measure FY14 Target FY14 Actual

Financial Statements: 

Prepare and publish audited financial statements covering CNCS operations within 45 days of fiscal year 

end and receive a clean audit opinion on annual financial statements

On time;

Unmodified 

opinion

On time;

Unmodified 

opinion

No material internal control weaknesses identified in the annual financial statement audit 0 0

No significant deficiencies in internal control weaknesses identified in the annual financial statement 0 2

No compliance issues identified in the annual financial statement audit 0 1

Grantmaking:

Award all grants before the budget period start date 95% 95%

Post all grant competition award data to the Internet within 90 days of completion of the award process9 100% TBD

Complete all grant-monitoring activities identified in the annual monitoring plan and follow 

up with grantees where necessary 85% 85%

Close all grants within 180 days of the performance period end date 64% 65%

8

 CNCS’s strategic plan is located at http://www.nationalservice.gov/about/strategic-plan

9

 Actual data for this measure will be available in February 2015.
Management’s Discussion & Analysis | PART I 25

The Corporation for National and Community Service

In addition to its effective grantmaking in FY 2014, CNCS completed a a result of these improvements, CNCS has observed a significant rise 

number of critical initiatives to improve overall operations, performance, in electronic payments versus payments by check. Additionally, account 

and accountability. CNCS completed the following management initiatives receivable balances have been reduced. These initiatives have provided 

in the last year: a greater level of transparency, along with increased sponsor confidence 

and satisfaction in the Cost Share program.

Accounting and Financial Management Services

In FY 2014, CNCS used the Department of the Treasury’s Invoice Accountability

Processing Platform to process a majority of all vendor invoices increasing CNCS continued to foster a culture of integrity, accountability, and 

operational efficiency. Also in FY 2014, CNCS established an interface transparency in FY 2014 by fortifying its internal controls, oversight, and 

with Treasury’s Collection Information Repository, which allows for all monitoring. In this spirit of continual improvement and CNCS’ Strategic 

collection transactions cleared through Treasury to be automatically Plan Goal 4 strategy of promoting adherence to internal controls, CNCS 

posted to the CNCS administrative accounting system (Momentum). This continued to implement an Integrity Framework to help ensure CNCS’ 

interface reduces errors and increases efficiency of CNCS accounting organizational effectiveness, cohesion, and longevity. This framework 

operations. In addition, CNCS moved toward more consistent and identifies integrity as the cultural value by which all CNCS staff members 

complete financial data by reconciling its accounts with the Government- are called upon to act, in accordance with high ethical and professional 

wide Treasury Account Symbol Adjusted Trial Balance System. standards. It focuses on the continual assessment and improvement of 

daily business practices. To support this framework, CNCS implemented Also in FY 2014, CNCS automated the production of invoices and account management team work plans with an enhanced integrity performance statements for AmeriCorps VISTA Cost Share sponsors. The automated standard. CNCS, with the coordination of the Office of Accountability invoicing cycle was accelerated from monthly to bi-weekly to increase and Oversight (OAO), carried out a focused campaign to strengthen the receivable turnover ratio. Finally, CNCS implemented a Pay Now grants management oversight, improve internal controls, and address functionality that makes it easier for the customer to pay their invoices audit findings. CNCS also established an oversight and governance electronically. Coupled with the automated interface with Treasury structure for its Integrity Assurance Program that includes the roles and Collection Information Repository (CIR), payment information is now made responsibilities of executive leadership, managers, and rank-and-file available to VISTA Cost Share sponsors within three days of payment. As CNCS staff in maintaining an effective system of internal controls.
Management’s Discussion & Analysis | PART I 26

The Corporation for National and Community Service

Internal Controls: During FY 2014, CNCS continued to strengthen its internal control 

Management Assurance program by following the requirements of the FMFIA, the Government 

Corporation Control Act, applying OMB Circular A-123 and its related 

Statements appendices, implementing a new internal control governance structure, 

and enhancing its assessment process. 

CNCS annually makes a number of specific assurances that its policies, 

procedures, and operations are sufficient to meet specified management CNCS’s FY 2014 internal control program is led by the Director of 

objectives. These assurance statements meet government-wide objectives Accountability and Oversight, under the direction of the Chief Operating 

in regard to CNCS’s internal and management controls (including controls Officer. Senior management from across the agency provide support and 

over financial reporting) and CNCS’s financial management systems, guidance based on their subject matter expertise. 

as well as specific annual assurances regarding the management and In FY 2014, CNCS enhanced its Integrity Assurance Program. The operation of the National Service Trust. This section briefly describes each principles within the Integrity Framework (which customized government- of these management objectives, the bases for CNCS’s assessments, and wide internal control standards to CNCS operations) apply to all aspects provides the specific management assurance statements for each area. of CNCS’s operations: programmatic, financial, and compliance. CNCS 

Internal Controls, Audit Results, and Management is implementing its enhanced Integrity Assurance Program through 

Assurances well-established methodologies and effective systems of internal 

control, including the Government Accountability Office’s exposure draft CNCS is subject to the reporting requirements of the Government of the Standards for Internal Control in the Federal Government. Using Corporation Control Act (31 U.S.C. 9101 et. seq.). Under these these approaches allow CNCS to assess how well internal controls are requirements, CNCS provides a statement on its internal accounting integrated into its operations and are built into its entity-wide policies, and administrative controls consistent with the requirements of the procedures, and practices. amendments made by the Federal Managers’ Financial Integrity Act 

of 1982 (FMFIA), (31 USC 3512, et seq.) and implemented by Office In FY 2014, CNCS applied GAO’s Risk Management Framework as an 

of Management and Budget (OMB) Circular A-123, Management’s important tool in planning its assessment of internal and management 

Responsibility for Internal Control. The statement reflects CNCS’s controls. This framework helps identify the areas of greatest risk within 

assessment of whether there is reasonable assurance that internal agency operations and provides indicators as to where CNCS should 

controls are achieving the intended results, reports any material concentrate its efforts to assess the effectiveness and efficiency of 

weaknesses in internal controls present within the agency, and describes controls. Additionally, based on the assessment of risk, CNCS can 

management’s current plans to address and correct any material determine the scope and frequency of control evaluations it should 

weaknesses. establish. CNCS further incorporated risk assessment and management 

into its overall assessment of internal and management controls 
Management’s Discussion & Analysis | PART I 27

The Corporation for National and Community Service

by conducting a rigorous analysis to meet the OMB Circular A-123 the existence of compensating controls, the dollar value of transactions 

requirement to establish materiality levels that provide reasonable potentially affected by the deficiency, the level of risk, and the likelihood 

assurance that significant deficiencies will be detected and corrected in a that an error may not be prevented or detected. The impact of the FISMA 

timely manner. evaluation findings is discussed below. 

Through the materiality assessment and by applying the GAO Risk CNCS also considered the knowledge of management officials gained 

Management Framework, CNCS identified the following 13 business from daily operations of its programs, offices, and systems, as well 

processes for evaluation in FY 2014: as the results of its annual financial statement audit, as part of its 

• Accounts Receivable internal controls assessment. The directors responsible for each of 

CNCS’s programs and significant operational functions provided specific • Budget Execution

assurances that they are aware of their responsibilities to report any • Disbursements

significant deficiencies to higher levels of management, and that they have • Entity-wide done so, if applicable. No officials reported any significant deficiencies to 

• F inancial Management Systems higher levels of management in FY 2014. FY 2014 also marks the 15th 

• Financial Reporting consecutive year CNCS has earned an unmodified opinion on its financial 

• Funds Balance with Treasury statements. Other than the results of the OIG’s FY 2014 evaluation of 

CNCS’s compliance with FISMA, the audit also found no instance of • Grants Management

noncompliance with laws and regulations. These results reflect CNCS’s • Human Capital commitment to sound financial management, as well as the hard work by • Interest and Investments staff over the past year to continuously improve financial operations.

• Procurement

• Property and Equipment Management Assurances

• National Service Trust Service Award Liability. Management’s Statement of Assurance for Financial Management

Systems, Operations, and Compliance with Laws and Regulations

Concerning Accounts Receivable, Human Capital, Interest and CNCS management is responsible for establishing and maintaining 

Investments, and the National Service Trust Service Award Liability, effective internal control and financial management systems that meet the 

OAO determined through inquiry and inspection of documents that the objectives of FMFIA and OMB Circular A-123. These objectives are to ensure 

results of its FY 2013 assessments of internal controls in those areas (1) effective and efficient operations; (2) compliance with applicable laws 

were sufficient to forego more detailed testing in FY 2014. To assess the and regulations; and (3) reliable financial reporting. As required by OMB 

sufficiency of internal and management controls in the remaining areas, Circular A-123, CNCS has evaluated its internal control and financial 

CNCS established a five step process: management systems to determine whether the FMFIA objectives are 

Step 1: Planning being met. Based on its assessment (as described above), CNCS provides 

Step 2: Evaluating Internal Control at the Entity Level a qualified statement of assurance that its internal control and financial 

Step 3: Evaluating Internal Control at the Process Level systems meet the objectives of the FMFIA as of September 30, 2014. This 

statement of assurance is qualified because the OIG’s FY 2014 evaluation Step 4: T esting Control Design and Operating Effectiveness at the 

of CNCS’s compliance with FISMA found that CNCS was not compliant Transaction Level 

in a number of respects with the FISMA legislation, OMB guidance, and Step 5: Concluding, Reporting, and Correcting. National Institute of Standards and Technology (NIST) security publications 

After OAO carried out a series of evaluations using the five-step process, as of September 30, 2014. The FISMA evaluation noted a number of 

the Director of Accountability and Oversight reported to CNCS’s Chief significant deficiencies, which under OMB guidance must be reported as 

Executive Officer that – except for matters raised in CNCS’s Fiscal Year a material weakness under FMFIA. The Summary of Material Weakness 

2014 evaluation under the Federal Information Systems Management section below contains a description of these control weaknesses.

Act (FISMA) – OAO’s Fiscal Year 2014 evaluation did not uncover any Management’s Statement of Assurance for Internal Control Over significant deficiencies in CNCS’s internal controls over the nine key Financial Reporting CNCS business processes. In carrying out its internal control assessment, CNCS’s management is responsible for establishing and maintaining and in determining whether any identified deficiency was a potential effective internal control over financial reporting, which includes significant deficiency, CNCS considered the nature of each deficiency, safeguarding of assets and compliance with applicable laws and 
Management’s Discussion & Analysis | PART I 28

The Corporation for National and Community Service

regulations. CNCS conducted an assessment of its internal control National Service Trust Obligations

effectiveness over financial reporting in accordance with OMB Circular Section 149(a)(3) of the National and Community Service Act of 1990 

A-123. Based on the results of this evaluation, CNCS can provide (NCSA), as amended by the Edward M. Kennedy Serve America Act 

reasonable assurance that internal control over financial reporting as of (PL 111-13), establishes the specific criteria for timing and recording 

June 30, 2014 was operating effectively and no material weaknesses were obligations in the National Service Trust. Section 149(a)(3) of the NCSA 

found in the design or operation of those controls. requires the Chief Executive Officer of CNCS to annually certify that CNCS 

is in compliance with the requirements of the NCSA with regard to the Compliance with Financial Systems Requirements, Accounting timing and recording of obligations within the Trust. Standards, and U.S. Standard General Ledger

Although not required by OMB Bulletin 14-02, Audit Requirements Section 149(c) of the NCSA requires CNCS to obtain an independent 

for Federal Financial Statements, CNCS has adopted the standards audit of the accounts and records demonstrating the manner in which 

governing financial systems that were established by the Federal CNCS has recorded its Trust estimates (see 42 USC 12606). For FY 

Financial Management Improvement Act (FFMIA). FFMIA provides 2014, the CNCS OIG obtained the independent audit required by section 

guidance to federal agencies in implementing and maintaining financial 149(c) of the NCSA. At the conclusion of the audit, the auditors issued an 

management systems that are in substantial compliance with federal unmodified opinion that CNCS’s financial reports regarding the National 

financial system requirements, federal accounting standards issued by Service Trust present fairly, in all material respects, the assets, liabilities, 

the Federal Accounting Standards Advisory Board, and implementation of net position, and obligations of the Trust as of September 30, 2014.

the Department of the Treasury Standard General Ledger (USSGL) at the 

transaction level. Pursuant to FFMIA, OMB issued Circular A-123 Appendix Management Certification of Compliance Regarding

D, Compliance with the Federal Financial Management Improvement Act. National Service Trust

Appendix D prescribes the policies and standards for agencies to follow in Based on CNCS’s analysis and review of its National Service Trust 

developing, operating, evaluating, and reporting on financial management activities and the results of the OIG’s audit, CNCS certifies that for FY 

systems. 2014 it complied with the requirements for recording National Service 

Trust Obligations as described in section 149(a)(1) of the NCSA.

CNCS’s assessment of its compliance with FFMIA standards is based 

in part on its use of Momentum Financials as its core financial system. Summary of Material Weakness

Momentum Financials is a commercial off-the-shelf software application Information Technology – General Controls

certified by the Office of Federal Financial Management as meeting the CNCS relies on extensive information technology systems operated by the 

Circular A-123 Appendix D financial system requirements. Activity is agency, other federal agencies, and various contractors to provide and 

posted in Momentum Financials following the USSGL at the transaction monitor general control activities. In the FY 2014 evaluation of CNCS’s 

level. Information Security Program, it was determined that, in a number of 

respects, CNCS was not fully compliant with the FISMA legislation, OMB CNCS’s assessment of its compliance with FFMIA is also informed by guidance, and applicable NIST security publications as of September 30, its overall information system security assessments. In accordance 2014. Of the noted areas of noncompliance, those relating to Continuous with FISMA, OMB policies and guidance, and standards and guidance Monitoring Management, Risk Management, Plans of Actions and issued by the NIST, federal agencies are required to secure information Milestones, and Privacy were determined to be significant deficiencies and information systems through the implementation of appropriate risk under applicable OMB FISMA guidance. As required by OMB Circular mitigation strategies. A-123, CNCS is reporting the significant deficiencies found in the FISMA 

Management’s Statement of Compliance with Financial Systems evaluation as material weaknesses under FMFIA.

Requirements, Accounting Standards, and U.S. Standard General 

Ledger

Based on its assessments of its financial management systems (as 

described above), CNCS has determined that it substantially complies 

with the requirements of the FFMIA for FY 2014.
Management’s Discussion & Analysis | PART I 29

The Corporation for National and Community Service

Core Action Plan and Impact of Material Weakness

Material Weakness 

and Corrective 

Action Plan

Corrective 

Action 

Date

Impact of Control Weakness 

on the Agency

CNCS will form a 

project team under 

the direction of the 

Chief Operating 

Officer to formulate 

a plan to remediate 

the findings in 

FY 2014 FISMA 

evaluation.

TBD Although significant information 

security risks exist, no actual 

event has occurred that 

has impacted the reliability 

of or accuracy of CNCS’s 

operational or financial data. 

In addition, there are no known 

breaches of either sensitive 

data or Personally Identifiable 

Information in CNCS’s systems. 

Jeffrey Page

Acting Chief Financial Officer

Wendy Spencer

Chief Executive Officer
Management’s Discussion & Analysis | PART I 30

The Corporation for National and Community Service

Analysis of Appropriations 

and Financial Condition

Understanding the Financial Statements

CNCS has a fiduciary and stewardship responsibility to efficiently and 

effectively manage its federal funds and to comply with federal guidance 

on financial management. As part of this responsibility, the agency 

prepares annual financial statements in conformity with generally 

accepted accounting principles (GAAP) for U.S. Federal government 

corporations and subjects them to an independent audit to ensure their 

integrity and reliability in assessing performance. For FY 2014 and 2013, 

CNCS’s financial statements received an unmodified opinion. This opinion 

recognized that CNCS’s financial statements are fairly presented and in 

conformity with generally accepted accounting principles in all material 

respects.

The consolidated financial statements report CNCS’s financial position, 

results of operations, cash flows, and budgetary resources, as required 

by the Government Corporation Control Act (GCCA) and Executive Order 

13331, National and Community Service Programs. As specified in GCCA, 

the principal financial statements of CNCS are the:

• Statement of Financial Position (balance sheet), which reports the 

status of CNCS assets, liabilities, and net position 

• Statement of Operations and Changes in Net Position (income 

statement), which reports CNCS’s revenues and expenses for the year 

and the changes in net position that occurred during the year

• Statement of Cash Flows, which shows how changes in CNCS’s 

financial position and results affected its cash (Fund Balance with 

Treasury), and breaks the analysis down according to operating, 

investing, and financing activities.

In addition, under the requirements of Executive Order 13331, CNCS 

prepares a Statement of Budgetary Resources (SBR). The SBR provides 

information about the budgetary resources made available to CNCS and 

the status of those resources at the end of the fiscal year.

Composition of CNCS Assets

The Statement of Financial Position presents the total amounts available 

for use by CNCS (assets) against the amounts owed (liabilities) and 

amounts that comprise the difference (net position). Over 96 percent of 

CNCS’s total assets are comprised of Fund Balance with Treasury (FBWT) 

and Trust Investments and Related Receivables.

In FY 2014, total assets increased five percent over the balance at the end 

of FY 2013. The majority of the $83.3 million increase occurred in Fund 

Balance with Treasury (FBWT) and the Trust Investments and Related 

Receivables.

FBWT is funding available to CNCS to make expenditures for authorized 

expenses through the disbursement authority of the Department of the 

Treasury. The FBWT is increased through appropriations and collections 

and decreased by expenditures and rescissions. The increase of $57.6 

million in FY 2014 primarily results from restoration of funds withdrawn 

with sequestration in the prior year.

Trust Investments and Related Receivables are used to pay Segal 

AmeriCorps Education Awards for eligible participants who complete 

AmeriCorps service. Funding for the Trust comes from appropriations; 

interest earned, sponsorships, and proceeds from the sale or redemption 

of investments. The account increased by $24.8 million, reflecting the 

investment of FY 2014 appropriations for new AmeriCorps positions 

awarded during the year net of payments made on previously earned 

awards.

CNCS records Trust obligations at the time of the grant award for 

AmeriCorps State and National, or at the time the AmeriCorps VISTA and 

NCCC members begin their terms of service. The amount to be obligated 

is the estimated value of authorized education benefits, discounted for 

estimated enrollment, historical earning and usage rates, and the time 

value of money.

CNCS has also set aside a Trust reserve of $50.2 million (including $3.5 

million set aside in FY 2009 for Recovery Act positions) to protect CNCS 

in the event that the estimates used to calculate obligations differ from 

actual results. During FY 2014, CNCS based its obligation amount on the 

full value of the education award, a 100 percent enrollment rate (allowing 

for refills), and earning and usage rates ranging from 77 to 87 percent 

depending on term type.
Management’s Discussion & Analysis | PART I 31

The Corporation for National and Community Service

CNCS Assets as of September 30, 2014

3%

1%

0%

Fund Balance with Treasury 55%

Trust Investments and Related Receivables 41%

Advances to Others 3%

Accounts Receivable, Net 1%

41% Property and Equipment, Net 0%

55%

As of September 30, 2014, the National Service Trust had available cash, expenses at qualified educational institutions. The awards, which can be 

investments, and other assets of about $724.8 million to make education used for a period of up to seven years, are paid from the National Service 

award and interest forbearance payments. Of this amount, CNCS’s Trust. Since CNCS’ inception through FY 2009 the maximum amount of 

unliquidated obligations for awarded AmeriCorps positions totaled about an education award was $4,725. Beginning with FY 2010, the SAA tied 

$623.3 million. About $47.6 million was available at year-end to fund the amount of the award to the amount of a Pell Grant administered by 

new AmeriCorps member positions, of which $1.9 million derives from the Department of Education. The award amount of $5,645 was in effect 

Recovery Act funding and cannot be used without new authorization. Trust throughout FY 2014.

assets are estimated to be sufficient to pay for all awarded AmeriCorps The Trust also pays forbearance interest on qualified student loans during positions. As grants expire, CNCS deobligates funds related to member 

the period members serve. Each year, the award liability components positions that were not filled. CNCS also continuously analyzes Trust related to education awards and interest forbearance are adjusted to operations and liability projections to identify any needed adjustments to reflect current trends. For FY 2014, the Trust Service Award Liability obligations. decreased by $10.1 million, about two percent, due to a decline in 

Advances to Others mainly represent funds provided to grantees in enrollment of members in AmeriCorps programs, and an accelerated 

advance of their performance under a grant. For the most part, these usage of awards. 

advances are liquidated during the first quarter of the subsequent fiscal Grants Payable represents funds due to grantees in payment of their year. Advances to Others increased by about four percent, from $56 performance under a grant. For the most part, these payables are million at September 30, 2013 to $58.1 million at September 30, 2014, liquidated during the first quarter of the subsequent fiscal year. reflecting increased funding level for 2014 programs.

Grants Payable decreased seven percent, from $103.1 million at Composition of CNCS Liabilities September 30, 2013 to $95.6 million at September 30, 2014, reflecting CNCS’s most significant liabilities are the Trust Service Award Liability decreased grant activity from prior years. and Grants Payable. Individuals who successfully complete terms of 

service in AmeriCorps programs earn education awards that can be used 

to make payments on qualified student loans or for educational 
Management’s Discussion & Analysis | PART I 32

The Corporation for National and Community Service

2%

4%

1%

2%

16%

75%

0%

CNCS Liabilities as of September 30, 2014

Trust Service Award Liability 75%

Grants Payable 16%

Actuarial FECA Liability 2%

Advances from Others 4%

Other Liabilities 2%

Accounts Payable 1%

Accrued Annual Leave 0%

Advances from Others represent the receipt of cash for work to be For FY 2014, CNCS Revenue totaled $1.013 billion, a decrease of $73.9 

performed at a future date. This liability decreased $21.1 million during million, or seven percent, from FY 2013. Total Expenses reported for FY 

FY 2014 resulting from a change in methodology for advancing funds 2014 were $973.1 million which represents a decrease of $85.2 million, or 

supporting FEMA Corps related activity. 8 percent, from FY 2013. The decrease reflects the reduced funding level 

in prior years for all of CNCS’s programs.

Results of Operations CNCS’s net revenue over expenses for FY 2014 was $39.9 million which The Statement of Operations and Changes in Net Position presents is an increase of $11.3 million compared to FY 2013. The increase is revenue earned by CNCS (primarily appropriations) and the annual cost 

primarily attributable to declining expenditures resulting in reduced prior of operating CNCS programs. CNCS recognizes its use of appropriated 

year funding levels. capital as revenue at the time it is expended or accrued to pay program 

or administrative expenses. Appropriations received for the CNCS Trust Budgetary Resources are recognized as revenue when received in the Trust Fund. Using an The Statement of Budgetary Resources provides information on how appropriate cost accounting methodology, CNCS’s expenses have been budgetary resources were made available to CNCS for the year and the allocated among its major programs at the sub-program level. Costs for status of those budgetary resources at year-end. For FY 2014, Total each major CNCS program are reported separately. Program costs include Budgetary Resources increased $36.5 million and Total Obligations grant expenses, and direct and allocated personnel and administrative Incurred increased $44.3 million due primarily to restoration of costs including AmeriCorps recruitment and National Service Trust sequestration funds in prior years. operations.
Management’s Discussion & Analysis | PART I 33

The Corporation for National and Community Service

CNCS Expenses for the Period Ended September 30, 2014

4%

0%

0%

23%

73%

AmeriCorps 73%

Office of the Inspector General 0%

Senior Corps 23%

Innovation, Demonstration, and Assistance 4%

Learn and Serve America 0%
Management’s Discussion & Analysis | PART I 34

The Corporation for National and Community Service

Business Achievements and Trends FY 2015 Plans

CNCS is committed to serve as an effective and efficient steward • F ocus on the Agency’s Core Mission Support Activities— 

of taxpayer dollars. CNCS leaders seek to continuously improve and Under the categories detailed below, CNCS will:

integrate financial operations and processes to provide for better > Improve and reinforce infrastructure systems and processes that 

oversight, transparency, and accountability for the resources we manage. support our programs and grantees. 

The following are FY 2014 accomplishments and FY 2015 plans to improve > Renew and revise the policy review and update processes to 

our ability to manage public resources: enhance the currency and effectiveness of the policy framework 

and improve program and support operations overall. FY 2014 Achievements

 > Improve an enterprise-wide approach to internal controls, • New Programing— including IPERA. > Celebrated the 20th Anniversary of AmeriCorps in September 

 > Pilot a streamlined and consolidated grants process through with swearing-in ceremonies in every state; the events, which 

Operation AmeriCorps, which will make all three AmeriCorps included the participation of four Presidents, celebrated the 20 

programs available as part of a single grant application. year impact of AmeriCorps in improving communities across the 

country. • Expand access to and use of agency financial information 

 > Launched the Employers of National Service initiative to connect stakeholders and programs.

national service alumni with public, private, and non-profit 

employers for hiring and advancement opportunities. • Normalize growth— > Established important new partnerships with the U.S. > Develop new partnerships that expand national service and Department of Justice, the U.S. Department of Agriculture, and provide opportunities for more Americans to serve in their the Citi Foundation, among others, as part of the President’s Task communities while also integrating the partnership development Force on Expanding National Service. into the agency’s existing programmatic processes. 

 > Conducted the first Social Innovation Fund Pay for Success > Build on past partnership success through the continued competition to advance and evaluate emerging models that align development of initiatives such as Pay for Success, Employers of payment for social services with verified social outcomes. Service, My Brother’s Keeper, STEM, and other initiatives.

• System Upgrades—

 > Transitioned CNCS employee timekeeping system to the National • Research and Evaluation—

Finance Center. > Focus on building the evidence base for national service. 

 > Implemented an automated performance management system > Refine our systems for performance measurement.

which improved the quality and timeliness of employee feedback 

and appraisals. • Improve procurement planning and operations—

• Improper Payments Elimination and Reduction Act (IPERA)— > Improve the efficiency of the agency’s contracts and procurement 

 > Completed an analysis of Improper Payments for AmeriCorps process. 

State and National and Senior Corps. > Enhance existing acquisition planning efforts among all offices 

 > For detailed information see Improper Payments in Section IV, and units.

Other Information.

• IT Modernization—

• IT Modernization— > Deliver a new platform for streamlining grantmaking processes.

 > Issued a contract for a new software platform which will serve as > Improve data analytics and move appropriate data to the Cloud.

the basis for modernization. 

• Ensure a High Performing Workforce— > Worked with program offices to establish key modernization > Increase emphasis on succession planning and developing the goals. workforce.

 > Work to provide enhanced opportunities for employee promotions, 

salary awards, and training.
Financial Statements | PART II 35

The Corporation for National and Community Service

Message from 

the Acting CFO

The Corporation for National and Community Service (CNCS) strives 

to provide efficient and cost-effective national service programs. The 

CNCS Agency Financial Report (AFR) presents a comprehensive report 

on financial operations and provides transparency and accountability 

to the American people.

I am pleased to report that for the 15th consecutive year, CNCS 

has earned an unmodified opinion on its AFR. This accomplishment 

demonstrates an on-going commitment to delivering cost-effective 

programs through sound fiscal management and effective internal 

controls. We have continued our efforts to address management letter 

findings and were able to close four findings cited in the 2013 audit. 

The CFO organization is committed to making continuous 

improvements to fiscal operations as part of delivering support to the 

mission and goals of CNCS. We have continued to implement policies 

and procedures demonstrating the importance of accountability 

and fiscal responsibility and of assessing and reporting on internal 

controls throughout the organization. 

While this progress will serve as a foundation for continued 

improvements in organizational and financial management, we 

recognize the need to address ongoing challenges as we move forward. 

We are committed to resourcing and fully implementing a sound 

governance and oversight framework for CNCS’s entity-wide risk 

management program and maximizing the agency’s fiscal stewardship.

Finally, I would like to thank the financial management and program 

professionals throughout the agency for their continued dedication and 

hard work this past year. It is their efforts that enable CNCS to deliver 

the most accurate, transparent, and useful information possible.

Jeffrey Page

Acting Chief Financial Officer
Financial Statements | PART II 36

Section II:

Financial

Statements

Consolidated Financial 

Statements

CNCS’s consolidated financial statements outline its financial position, 

results of operations, cash flows, and budgetary resources, as required 

by the Government Corporation Control Act (GCCA) and Executive Order 

13331, National and Community Service Programs. The Act requires 

government corporations to submit an annual report including the 

corporation’s financial statements to Congress. As specified in the Act, 

the principal financial statements of CNCS are the:

• Statement of Financial Position (balance sheet), which reports the 

status of CNCS assets, liabilities, and net position 

• Statement of Operations and Changes in Net Position (income 

statement), which reports CNCS’s revenues and expenses for the year 

and the changes in net position that occurred during the year

• Statement of Cash Flows, which shows how changes in CNCS’s 

financial position and results affected its cash (Fund Balance 

with Treasury), and presents analysis of operating, investing, and 

financing activities.

In addition, under the requirements of Executive Order 13331, CNCS 

prepares a Statement of Budgetary Resources (SBR) as a principal 

financial statement. The SBR provides information about the budgetary 

resources made available to CNCS and the status of those resources at 

the end of the fiscal year.

CNCS’s financial statements provide comparative information for FY 

2014 and 2013. For FY 2014, CNCS’s financial statements, for the 15th 

consecutive year, received an unmodified opinion. This opinion recognizes 

that CNCS’s financial statements are fairly presented, in all material 

respects, in conformity with generally accepted accounting principles.

Section IV, Other Information of this report presents the National Service 

Trust Fund Status Report which includes the Statements of Financial 

Position; and Operations, Changes in Net Position, Cash Flows, and 

Budgetary Resources prepared in accordance with Generally Accepted 

Accounting Principles (GAAP) as required by the Government Corporation 

Control Act (Act) and Executive Order 13331, National and Community 

Service Programs. These principal statements and the accompanying 

notes present information on the assets, liabilities, revenue, expenses, 

cash flow, and budgetary resources of the National Service Trust Fund. 

Limitations of the Financial Statements

The principal financial statements have been prepared in compliance with 

the reporting requirements described above. CNCS’s financial statements 

published herein are in addition to the financial reports it uses to monitor 

and control budgetary resources which are prepared from the same 

books and records. The statements should be read with the realization 

that they are for a component of the U.S. Government, a sovereign entity. 

An implication of this is that liabilities cannot be liquidated without 

legislation that provides the resources to do so.
Financial Statements | PART II 37

Corporation for National and Community Service 

Consolidated Statements of Financial Position as of September 30 (dollars in thousands)

Assets 2014 2013

Fund Balance with Treasury (Note 2) $ 971,863 $ 914,224

Trust Investments and Related Receivables (Note 3) 717,973 693,165

Advances to Others 58,122 56,000

Accounts Receivable, Net (Note 4) 9,278 9,601

Property and Equipment, Net (Note 5) 2,387 3,346

Total Assets $ 1,759,623 $ 1,676,336

Liabilities

Trust Service Award Liability (Note 6) $ 454,131 $ 464,274

Grants Payable 95,571 103,125

Accounts Payable 5,103 4,466

Actuarial FECA Liability (Note 8) 9,255 9,702

Advances from Others 24,990 46,121

Accrued Annual Leave 4,244 4,129

Other Liabilities 14,273 12,042

Total Liabilities 607,567 643,859

Contingencies (Note 14) — —

NET POSITION (Note 9) $ 1,152,056 $ 1,032,477

Total Liabilities and Net Position $ 1,759,623 $ 1,676,336

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 38

Corporation for National and Community Service 

Consolidated Statements of Operations and Changes 

in Net Position for the Periods Ended September 30 (dollars in thousands)

Revenue 2014 2013

Appropriated Capital Used $ 740,124 $ 808,085

Appropriations Received by the National Service Trust (Note 10) 212,496 223,568 

Interest 2,442 3,133 

Revenue from Services Provided 44,545 34,816 

Other 12,201 17,231 

Total Revenue $ 1,011,808 $ 1,086,833 

Expenses

AmeriCorps $ 707,310 $ 778,211 

SeniorCorps 219,678 223,235

Learn and Serve America 472 6,048

Innovation, Demonstration and Assistance Activities 42,165 47,355 

Office of the Inspector General 3,458 3,392 

Total Expenses (Note 11) 973,083 1,058,241 

Net of Revenue Over Expenses $ 38,725 $ 28,592

Net Position

Net of Revenue over Expenses $ 38,725 $ 28,592

Increase/(Decrease) in Unexpended Appropriations, Net (Note 13) 80,854 (55,318)

Increase/(Decrease) in Net Position, Net 119,579 (26,726)

Net Position, Beginning Balance 1,032,477 1,059,203

Net Position, Ending Balance (Note 9) $ 1,152,056 $ 1,032,477

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 39

Corporation for National and Community Service 

Consolidated Statements of Cash Flows for the Periods Ended September 30 (dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES 2014 2013

Net of Revenue over Expenses $ 38,725 $ 28,592 

Adjustments Affecting Cash Flow:

Depreciation, Amortization, and Loss on Disposition of Assets 1,740 801 

Amortization of Premium/Discount on Investments (613) 1,795

Appropriated Capital Used (740,124) (808,085)

Appropriations Received in Trust (212,496) (223,568)

Appropriations Transferred to Other Federal Agency (2,000) -

Decrease/(Increase) in Accounts Receivable 323 (1,118)

Decrease/(Increase) in Interest Receivable 253 136 

Decrease/(Increase) in Advances to Others (2,122) 1,298 

Increase/(Decrease) in Accounts Payable and Other Liabilities 2,868 (571) 

Increase/(Decrease) in Advances from Others (21,131) 12,425

Increase/(Decrease) in FECA and Annual Leave Liabilities (332) (92)

Increase/(Decrease) in Trust Liability (10,143) 17,083 

Increase/(Decrease) in Grants Payable (7,554) 2,334

Total Adjustments (991,331) (997,562)

Net Cash Provided/(Used) by Operating Activities (952,606) (968,970)

CASH FLOWS FROM INVESTING ACTIVITIES

Sales of Securities 867,395 729,799

Purchase of Assets (781) (2,537)

Purchase of Securities (891,843) (786,331)

Net Cash Provided/(Used) in Investing Activities (25,229) (59,069)

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received, Net of Trust 1,049,954 1,048,884

Rescissions and Cancellations (14,480) (72,549)

Net Cash Provided by Financing Activities 1,035,474 976,335

Net Increase/(Decrease) in Fund Balance with Treasury 57,639 (51,704)

Fund Balance with Treasury, Beginning 914,224 965,928

Fund Balance with Treasury, Ending $ 971,863 $ 914,224

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 40

Corporation for National and Community Service 

Combined Statements of Budgetary Resources for the Periods Ended September 30 (dollars in thousands)

BUDGETARY RESOURCES 2014 2013

Unobligated balance, brought forward, October 1 $ 213,255 $ 205,105

Adjustment to unobligated balance brought forward, Oct 1 - (5)

 Unobligated balance brought forward, Oct 1, as adjusted 213,255 205,100

Recoveries of prior year unpaid obligations 37,405 33,850 

Other changes in unobligated balance (+ or -) (14,480) (17,692)

Unobligated balance from prior year budget authority, net 236,180 221,258

Budget authority: 

Appropriation Discretionary 1,047,954 1,048,884 

Appropriation (special or trust fund) 212,589 223,770 

Permanent Reduction – New Budget Authority - (54,857)

Appropriation Discretionary (total) 1,260,543 1,217,797 

Appropriation Mandatory (special or trust fund) 5,050 1,295

Appropriations (discretionary and mandatory) 1,265,593 1,219,092 

Spending authority from offsetting collections: 

Spending Authority from offsetting collections (total) 27,911 52,845

Total budgetary resources $ 1,529,684 $ 1,493,195

STATUS OF BUDGETARY RESOURCES 

Obligations incurred

Obligations incurred (total) (Note 17) $ 1,324,264 $ 1,279,940

Unobligated balance 

Apportioned 60,614 52,837

Unobligated balance not available 144,806 160,418

Total unobligated balance, end of year 205,420 213,255

Total budgetary resources $ 1,529,684 $ 1,493,195

 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 41

Corporation for National and Community Service—Continued 

Combined Statements of Budgetary Resources for the Periods Ended September 30 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2014 2013

Unpaid obligations: 

Unpaid obligations, brought forward, October 1 $ 1,387,779 $ 1,393,997

Obligations incurred 1,324,263 1,279,941 

Outlays (gross) (-) (1,194,220) (1,252,314)

Recoveries of prior year unpaid obligations, actual (37,405) (33,845)

Unpaid Obligations, end of year 1,480,417 1,387,779

Uncollected Payments:

Uncollected payments, Federal Sources, brought forward, October 1 (104) (106)

Change in uncollected customer payments, Federal sources (27) 2

Uncollected payments, Federal Sources, end of year (131) (104)

Memorandum entries:

Obligated balance, start of year $ 1,387,675 $ 1,393,891 

Obligated balance, end of year $ 1,480,286 $ 1,387,675 

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) $ 1,293,504 $ 1,271,937 

Actual offsetting collections (27,884) (52,847)

Change in uncollected customer payments from federal sources (27) 2 

Budget authority, net (discretionary and mandatory) $ 1,265,593 $ 1,219,092 

Outlay, gross (discretionary and mandatory) 1,194,220 1,252,314

Actual offsetting collections (27,884) (52,847)

Outlays, net (discretionary and mandatory) 1,166,336 1,199,467

Distributed offsetting receipts (214,188) (224,088)

Agency Outlays, net (discretionary and mandatory) $ 952,148 $ 975,379

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 42

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies • Office of Inspector General (OIG), from which CNCS funded the 

A. REPORTING ENTITY expenses of the Office of Inspector General. 

The Corporation for National and Community Service (CNCS) was created • AmeriCorps VISTA Advance Payment Revolving Fund, from which 

by the National and Community Service Trust Act of 1993 (Public Law CNCS paid the living allowances for AmeriCorps VISTA members 

103-82). CNCS’s mission is to improve lives, strengthen communities, enrolled under cost share agreements with sponsoring organizations. 

and foster civic engagement through service and volunteering. To meet CNCS is reimbursed for these costs by the sponsoring organization. 

its mission, CNCS provides grants and other assistance to states, Despite the account title, the AmeriCorps VISTA Advance Payment 

local municipalities, and nonprofit organizations to help communities Revolving Fund is not a revolving fund, but rather a general fund 

meet critical challenges in the areas of education, healthy futures, expenditure account.

environmental stewardship, economic opportunity, disaster services, and On February 17, 2009, the President signed into law the American assisting veterans and military families through volunteer service. CNCS’s Recovery and Reinvestment Act of 2009 (Recovery Act). The Recovery major programs are: Act included funding for the use of CNCS to support an expansion of the 

Senior Corps. Senior Corps offers a network of programs that tap into AmeriCorps State and National and VISTA programs. As a result of the 

the rich experience, skills and talents of older citizens to meet community passage of the Recovery Act, three additional appropriated funds were 

challenges. Senior Corps comprises the RSVP, the Foster Grandparent established:

Program, and the Senior Companion Program. • Operating Expenses, Recovery Act, from which CNCS funded the 

increased AmeriCorps State and National and VISTA membership as AmeriCorps. AmeriCorps provides opportunities for Americans to make an a result of the Recovery Act. ongoing, intensive commitment to service through the following programs:

• Salaries and Expenses, Recovery Act, which funded CNCS’s expenses • AmeriCorps State, National, Tribes, and Territories (State and to improve IT systems and administer the increased AmeriCorps State National) offers grants supporting a broad range of local service and National and VISTA membership. programs that engage thousands of Americans in intensive service to 

• OIG, Recovery Act, from which CNCS funded the expenses of the meet critical community needs

OIG’s Recovery Act oversight responsibilities. • AmeriCorps Volunteers in Service to America (VISTA) helps 

community organizations and public agencies create and expand B. BASIS OF ACCOUNTING

programs that build capacity and ultimately bring low-income The accompanying financial Statements include all funds administered 

individuals and communities out of poverty by CNCS, as delineated in Note 1A—Reporting Entity. They include 

• AmeriCorps National Civilian Community Corps (NCCC) strengthens CNCS’s activities related to providing grants and other assistance to 

communities while developing leaders through direct, team-based eligible states, local governments, and nonprofit organizations as well as 

national and community service education awards to eligible national service participants. All significant 

intra-entity transactions and balances are eliminated in consolidation.

CNCS, for the most part, administered its programs in FY 2014 from the 

following funds: C. F INANCIAL STATEMENT PRESENTATION AND 

Trust and Gift Funds: CONSOLIDATION POLICY

• National Service Trust (the Trust), from which CNCS provided The accompanying financial statements report CNCS’s financial position, 

education awards and interest forbearance for volunteers under the results of operations, and cash flows, as required by the Government 

AmeriCorps members. Corporation Control Act (GCCA). As required by GCCA, the principal 

financial statements of CNCS are the: • Gifts and Contributions, into which CNCS deposited qualified gifts 

and contributions from individuals and organizations from which • Statement of Financial Position, which reports the status of 

approved expenditures are made furthering CNCS’s goals. Corporation assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position, which reports Appropriated Funds: CNCS’s revenues and expenses for the year and the changes in net 

• Operating Expenses, from which the CNCS funded Senior Corps, position that occurred during the year; and

AmeriCorps, and other program activity. • Statement of Cash Flows, which shows how changes in CNCS’s 

• Salaries and Expenses, from which CNCS funded its general financial position and results affected its cash (Fund Balance with 

administrative expenses. Treasury), and present the analysis of operating, investing, and 

financing activities.
Financial Statements | PART II 43

The Corporation for National and Community Service

The financial statements are presented in accordance with the accounting F. FUND BALANCE WITH TREASURY

principles generally accepted in the United States of America (GAAP), as CNCS considers Fund Balance with Treasury (FBWT) to represent cash 

applicable to federal government corporations. The Federal Accounting and cash equivalents. It is CNCS’s cash accounts with the Department 

Standards Advisory Board (FASAB) is the standard setting body for the of the Treasury (the Treasury). The Treasury processes cash receipts and 

federal government. Statement of Federal Financial Accounting Standards disbursements on behalf of CNCS and CNCS’s accounting records are 

Number 34 (SFFAS 34) provides that financial statements prepared reconciled with those of the Treasury on a regular basis. CNCS’s FBWT 

by certain government corporations in conformity with the accounting includes all of its appropriated and trust funds.

standards issued by the Financial Accounting Standards Board (FASB) The FBWT maintained in the National Service Trust is restricted to specific are regarded as being in conformity with GAAP. As provided by SFFAS 

purposes, such as paying service awards earned by eligible participants, 34, where there is no standard issued by FASB applicable to the federal and is not available for use in the current operations of CNCS. In addition, corporation the financial statements are presented in accordance with the the majority of the funds received from individuals and organizations for accounting standards issued by FASAB. deposit in the Gifts and Contributions fund are restricted for particular 

In addition, under Executive Order 13331, National and Community uses, such as service projects.

Service Programs, CNCS must prepare a Combined Statement of G. INVESTMENTS AND RELATED RECEIVABLES Budgetary Resources as a principal statement. The accompanying By law, CNCS may invest the funds of the National Service Trust in Combined Statements of Budgetary Resources have been prepared in interest-bearing Treasury securities guaranteed by the United States accordance with GAAP, as prescribed by FASAB. The Combined Statement as to principal and interest. These Treasury securities are referred to as of Budgetary Resources presents additional details to include activity that “market-based,” since they mirror actual Treasury securities sold on the is significant to the CNCS. open market. They consist of Treasury notes, bonds, bills, and one-day 

CNCS’s consolidation policy requires the consolidation of all funds certificates.

administered by CNCS, as delineated in Note 1A—Reporting Entity. Since they are expected to be held-to-maturity, CNCS’s investments 

D. BUDGETS AND BUDGETARY ACCOUNTING are valued at cost and adjusted for the amortization of premiums and 

The activities of CNCS are primarily funded through the annual discounts. The premiums and discounts are recognized as adjustments to 

Departments of Labor, Health and Human Services, Education and interest income, using the effective interest method. Interest receivable 

Related Agencies Appropriation Act. CNCS’s accounting structure represents amounts earned, but not received on investments held at 

reflects both accrual and budgetary accounting transactions. Under the year-end. Prepaid interest is the amount of interest earned on a security 

accrual method of accounting, revenues are recognized when earned since the date of its last interest payment, up to the date the security is 

and expenses are recognized when incurred, without regard to the actual purchased by CNCS. Such interest, if any, at year-end is included in the 

collection or payment of cash. Federal budgetary accounting recognizes interest receivable balance.

the obligation of appropriations and other funds upon the establishment H. CASH EQUIVALENTS of a properly documented legal liability, which, in many cases, is different For purposes of the statement of cash flows, CNCS considers all interest- from the recording of an accrual-based transaction. The recognition of bearing Treasury securities guaranteed by the United States to be cash budgetary accounting transactions is essential for compliance with legal 

equivalents. controls over the use of federal funds.

I. ADVANCES TO OTHERS E. ASSET AND LIABILITY VALUATION

CNCS advances funds to non-federal entities, primarily in response CNCS values its investments at carrying value and discloses fair value. to grantee drawdown requests, to facilitate their authorized service As of September 30, 2014, the carrying amounts of Fund Balance with activities. The cash payments to grantees, in excess of amounts Treasury, Accounts Receivable, Advances to Others, Accrued Interest appropriately expended under the terms of the grant agreements, are Receivable, Accounts Payable and Other Liabilities approximate their fair accounted for as advances. At the end of the fiscal year, the total amount value.

advanced to grantees is compared with the total CNCS-funded amount of 

grant expenses properly incurred by the grantees. Grantee expenses are 

determined from reports submitted by the grantees. For those grantees 

with advances exceeding expenses, the aggregate difference is reported 

as the advance account balance.
Financial Statements | PART II 44

The Corporation for National and Community Service

J. ACCOUNTS RECEIVABLE incurred for benefits for CNCS employees and members under FECA are 

Accounts receivable represents amounts due to CNCS primarily under determined and paid by the Department of Labor (DOL) and later billed 

federal and non-federal reimbursable agreements, grantee audit resolution to CNCS. CNCS’s actuarial liability for workers’ compensation includes 

determinations, and outstanding travel advances due from employees. costs incurred, but unbilled as of year-end, as calculated by DOL. CNCS 

An allowance for doubtful accounts is established for reporting purposes reimburses DOL for FECA claims out of current appropriations upon receipt 

based on past experience. of a bill from DOL.

K. PROPERTY AND EQUIPMENT P. OTHER LIABILITIES

Property and Equipment is stated at full cost, including all costs related Other liabilities include amounts owed but not paid at the end of the fiscal 

to acquisition, delivery, and installation, less accumulated depreciation (or year for payroll and benefits, AmeriCorps VISTA stipends, the amount of 

amortization). Normal maintenance and repair costs on capitalized property claims for benefits for CNCS employees under FECA that have been paid 

and equipment are expensed when incurred. by DOL and billed to CNCS but have not yet been reimbursed to DOL, and 

imputed costs for future retirement and health care benefits as determined CNCS’s general policy is to capitalize Property and Equipment if the by an Office of Personnel Management calculation. initial acquisition price is $50 thousand or more. Property and equipment 

with an estimated useful life that extends beyond the year of acquisition Q. ACCRUED ANNUAL LEAVE

is capitalized at historical cost and is depreciated (or amortized) on a Annual leave is accrued as a liability based on amounts earned but not 

straight-line basis over estimated useful lives ranging from two to 10 used as of the fiscal year-end. Each year, the balance in the accrued 

years. annual leave account is adjusted to reflect current year pay rates and leave 

balances. Annual leave is funded from current appropriations when used. L. TRUST SERVICE AWARD LIABILITY As unused annual leave is used in the future, financing will be obtained The Trust Service Award Liability represents unpaid earned, and from appropriations current at that time. Sick leave and other types of non- expected to be earned, education awards and eligible student loan vested leave are also expensed when used. interest forbearance costs expected to be used. These amounts relate to 

participants who have completed service or are currently enrolled in the R. ADVANCES FROM OTHERS

program and are expected to earn an award, based on CNCS’s historical Advances from others consist of advances from other federal agencies and 

experience. the public related to interagency and cost share agreements into which 

CNCS entered to provide services. M. GRANTS PAYABLE

CNCS awards grants to nonprofit organizations, educational institutions, S. NET POSITION

states, municipalities, and other external organizations. Grants become Net Position represents Net Assets. It is comprised of CNCS’s unexpended 

budgetary obligations, but not liabilities, at the time they are awarded. appropriations and its cumulative results of operations. Unexpended 

appropriations reflect the balance of appropriated authority granted to Although most grantees request funds prior to incurring expenses, some CNCS against which no outlays have been made. Cumulative results of incur expenditures prior to initiating a request for disbursement, based operations represent the net differences between revenues and expenses on the nature of the expenditures. At the end of the fiscal year, CNCS from the inception of CNCS. computes and reports an estimate of the amount of unreimbursed grantee 

expenses as grants payable. This accrual is based on an analysis of the T. REVENUE RECOGNITION

amounts actually disbursed to grantees in the third quarter. Appropriated Capital Used. CNCS recognizes its use of appropriated 

capital as revenue at the time it is expended or accrued to pay program N. ACCOUNTS PAYABLE or administrative expenses. Appropriations expended for property and CNCS records as liabilities all amounts that are likely to be paid as a equipment are recognized as used when the property is purchased. direct result of a transaction or event that has already occurred. Accounts Appropriated capital not expended within five fiscal years after it payable represents amounts due to external entities for goods and services became available for obligation is cancelled. Unpaid obligations recorded received by CNCS, but not paid for at the end of the fiscal year. against cancelled appropriated capital are paid from currently available 

O. ACTUARIAL FECA LIABILITY appropriated funds as payments become due. Appropriations received 

The Federal Employees’ Compensation Act (FECA) provides income and for CNCS’s Trust are recognized as revenue when received in the Trust 

medical cost protection to covered federal civilian employees, AmeriCorps Fund. Trust appropriations do not expire with the passage of time and 

NCCC and VISTA members injured on the job, employees who have incurred are retained by CNCS in the Trust until used for eligible education service 

a work-related occupational disease, and beneficiaries of employees whose award purposes. 

death is attributable to a job-related injury or occupational disease. Claims 
Financial Statements | PART II 45

The Corporation for National and Community Service

Interest on Investments. Interest income is recognized when earned. W. USE OF ESTIMATES

Treasury notes and bonds pay interest semi-annually, based on the stated The preparation of financial statements in accordance with GAAP 

rate of interest. Interest on Treasury bills is paid at maturity. Interest requires CNCS to make estimates and assumptions about future events. 

income is adjusted by amortization of premiums and discounts using the These estimates and assumptions affect the amounts reported in 

effective interest method. CNCS’s financial statements and accompanying notes. CNCS evaluates 

its estimates and assumptions on an ongoing basis using historical Revenue from Services Provided. CNCS also receives income from experience and other factors that it believes to be reasonable under reimbursable service agreements that is recorded as revenue from the circumstances. Adjustments to estimates and assumptions are services provided. Revenue from services provided is recognized when made when facts and circumstances warrant. As future events and 

earned, i.e., goods have been delivered or services rendered. their effects cannot be determined with certainty, actual results could 

differ from the estimates used in preparing the accompanying financial Gifts and Donations. Revenue is recognized at the time gifts and 

statements. Significant estimates and assumptions are required as part donations are received and deposited in the Treasury to the credit of the 

of determining the liability for service awards, grants payable, and grant Gifts and Contributions Fund.

advances.

U. RETIREMENT BENEFITS

X. Comparative Data CNCS’s employees participate in either the Civil Service Retirement 

CNCS financial statements provide comparative information for FY 2014 System (CSRS) or the Federal Employees Retirement System (FERS). FERS 

and 2013. was established by the enactment of Public Law 99-335. Pursuant to this 

law, FERS and Social Security automatically cover most employees hired Y. CONCENTRATION OF RISKS

after December 31, 1983. Employees hired prior to January 1, 1984 elected Congress annually considers whether to fund CNCS’s program and to join FERS and Social Security or remained in the CSRS. operational activities. Should Congress opt not to enact appropriations 

to fund them, CNCS would be unable to continue operations. CNCS For employees covered by CSRS, CNCS contributes 7.0 percent of their 

management believes the risk of such an occurrence is remote. basic pay. For those employees covered by FERS, CNCS contributes 11.2 

percent of their gross pay towards retirement. Employees are allowed to 

participate in the Federal Thrift Savings Plan (TSP). For employees under 

FERS, CNCS contributes an automatic one percent of basic pay to TSP and 

matches employee contributions up to an additional 4 percent of pay, for 

a maximum CNCS contribution amounting to 5 percent of pay. Employees 

under CSRS may participate in the TSP, but will not receive either CNCS’s 

automatic or matching contributions.

V. INCOME TAXES

As a federal entity, CNCS is exempt from all income taxes imposed by 

any governing body, Federal, State, commonwealth, local, or foreign 

government.
Financial Statements | PART II 46

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury Funds from the National Service Trust may be expended for the purpose 

U.S. Government cash is accounted for on an overall consolidated basis by of providing an education award or student loan interest forbearance 

the U.S. Department of Treasury. The Fund Balance with Treasury line on payment and are made directly to a qualified institution (college, 

the Statement of Financial Position consists of the following: university, or other approved educational institution, or a lending 

institution holding an existing student loan) as designated by the 

Appropriated Funds—Appropriated funds are received through participant. The National Service Trust also pays awards under the 

congressional appropriations to provide financing sources for CNCS’s President’s Freedom Scholarship, Summer of Service, and Silver Scholar 

programs on an annual, multi-year, and no-year basis. programs.

Trust Funds—Trust funds are accounts designated by law for receipts Gift Funds—Gift Funds are funds received from individuals and 

earmarked for specific purposes and for the expenditure of these receipts. organizations as donations in furtherance of the purposes of national 

service laws.

Fund Balance with Treasury as of September 30, 2014 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 964,761 $ - $ 964,761 

Trust Funds - 6,606 6,606

Gift Funds - 496 496 

Total $ 964,761 $ 7,102 $ 971,863 

Fund Balance with Treasury as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 912,962 $ - $ 912,962 

Trust Funds - 611 611 

Gift Funds - 651 651 

Total $ 912,962 $ 1,262 $ 914,224
Financial Statements | PART II 47

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury—Continued

Unexpended Balances as of September 30, 2014 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 964,761 $ 7,102 $ 971,863 

Investments and Related Receivables - 717,973 717,973 

Total $ 964,761 $ 725,075 $ 1,689,836

Status of Unexpended Balances as of September 30, 2014 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 107,940 $ 50,940 $ 158,880 

 Unavailable - 50,670 50,670 

Obligated not yet Disbursed 856,821 623,465 1,480,286 

Total $ 964,761 $ 725,075 $1,689,836 

Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 912,962 $ 1,262 $ 914,224

Investments and Related Receivables - 693,165 693,165 

Total $ 912,962 $ 694,427 $1,607,389

Status of Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 117,527 $ 51,990 $ 169,517 

 Unavailable - 50,197 50,197

Obligated not yet Disbursed 795,435 592,240 1,387,675 

Total $ 912,962 $ 694,427 $ 1,607,389 
Financial Statements | PART II 48

The Corporation for National and Community Service

NOTE 3—National Service Trust Investments and Related Receivables

The composition of National Service Trust Investments and Related receivables at September 30 is as follows:

Investments and Related Receivables as of September 30 (dollars in thousands)

2014 2013

Investments, Carrying Value $ 717,304 $ 692,243

Interest Receivable 669 922

Total $ 717,973 $ 693,165

Amortized Cost and Fair Value of Investment Securities as of September 30, 2014 (dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 459,781 $ 596 $ 460,377 

Bills 257,523 37 257,560

Total $ 717,304 $ 633 $ 717,937 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2013 (dollars in thousands)

 Unrealized 

Gains/(Losses) 

 

Securities Amortized Cost Fair Value

Notes $ 512,220 $ 1,560 $ 513,780 

Bills 180,023 11 180,034

Total $ 692,243 $ 1,571 $ 693,814 

At September 30, 2014, the notes held at year-end had an interest rate Since FY 2003, CNCS has set aside in reserve a portion of the funds in 

range of 0.125 percent to 4.25 percent and an outstanding maturity the National Service Trust for use in the event that its estimates used 

period of approximately seven days to three years. The bills held at year- to calculate obligational amounts for education awards prove to be too 

end had an interest rate range of 0.250 percent to 0.625 percent. The par low. This reserve was originally required by the Strengthen AmeriCorps 

values of these notes range from $18 million to $148.3 million. The fair Program Act, and is now required by section 149(b) of the National and 

value of the bills and notes is based on bid and ask prices quoted by the Community Service Act (42 U.S.C. 12606(b)). As of September 30, 2014, 

Treasury as of September 30, 2014 and 2013. $50.2 million of CNCS’s investment account has been set aside for this 

reserve.
Financial Statements | PART II 49

NOTE 3—Trust Investments and Related Receivables—Continued

Investments held at September 30 mature according to the following schedule:

Maturation of Securities Held as of September 30 (dollars in thousands)

2014 2013

Amortized

Cost 

 Amortized

Held-to-Maturity Securities Fair Value Cost Fair Value

Due in 1 year or less $ 537,761 $ 538,417 $ 441,185 $ 441,710

Due after 1 year up to 5 years 179,543 179,520 251,058 252,104 

Total $ 717,304 $ 717,937 $ 692,243 $ 693,814

NOTE 4 – Accounts Receivables, Net

Accounts Receivable as of September 30 (dollars in thousands)

Appropriated Funds Trust Fund Total

2014

Accounts receivable $ 9,875 $ 274 $ 10,149 

Less: allowance for loss on receivables (826) (45) (871)

Accounts Receivable, Net $ 9,049 $ 229 $ 9,278 

2013

Accounts receivable $ 9,962 $ 281 $ 10,243 

Less: allowance for loss on receivables (595) (47) (642)

Accounts Receivable, Net $ 9,367 $ 234 $ 9,601
Financial Statements | PART II 50

The Corporation for National and Community Service

NOTE 5—Property and Equipment, Net

General Property and Equipment as of September 30, 2014 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 2,586 $ (2,267) $ 319 

ADP software 2 12,764 (10,696) 2,068

Total $ 15,350 $ (12,963) $ 2,387

NOTE 5—Property and Equipment, Net—Continued

General Property and Equipment as of September 30, 2013 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 2,586 $ (2,065) $ 521 

ADP software 2 11,983 (9,158) 2,825 

Total $ 14,569 $ (11,223) $ 3,346

Depreciation Expense for the period ending September 30 (dollars in thousands)

Major Class 2014 2013

Equipment $ 202 $ 202

ADP software 1,538 599

Total $ 1,740 $ 801

NOTE 6—Trust Service Award Liability The National Service Trust also pays forbearance interest on qualified 

Individuals who successfully complete terms of service in AmeriCorps student loans during the period members perform community service, 

programs earn education awards, which can be used to make payments as well as awards under the Presidential Freedom Scholarship Program. 

on qualified student loans or for educational expenses at qualified The award liability components related to education awards and interest 

educational institutions. The awards, which are available to use for a forbearance has been adjusted, based on historical experience, to reflect 

period of up to ten years after the benefit has been earned, are paid from the fact that some eligible participants may not use these benefits. The 

the National Service Trust. Service Award was composed of the following as of September 30:
Financial Statements | PART II 51

The Corporation for National and Community Service

Service Award Liability as of September 30 (dollars in thousands)

2014 2013

Education awards $ 2,469,053 $ 2,301,708 

Interest forbearance 89,677 79,604

President’s Freedom Scholarship Program 22,527 22,527 

Total estimated service award liability 2,581,257 2,403,839 

Less: cumulative awards paid 2,127,126 1,939,565

Total $ 454,131 $ 464,274 

The net Service Award Liability as of September 30, 2014 decreased by However, the Silver Scholar program was not funded and no current 

approximately $10.1 million from the net Service Award Liability as of liability was accrued for those educational awards. The Summer of Service 

September 30, 2013. This change was largely due to declining member program was only funded in FY 2010.

enrollment, and accelerated usage of awards. Past CNCS appropriations 

made amounts from the National Service Trust available for $1,000 NOTE 7—Operating Leases

scholarships for high school students known as Presidential Freedom CNCS leases office space through the General Services Administration 

Scholarships. To fund each scholarship, a local community or corporate (GSA). GSA charges CNCS a Standard Level Users Charge that 

source matched the $500 portion of the scholarship provided by CNCS. approximates commercial rental rates for similar properties. The NCCC 

The program was discontinued in FY 2007; however, because students also leases housing and other facilities for its campuses. Additionally, 

have up to seven years to use the scholarship, some payments will CNCS leases motor vehicles on an annual basis through GSA under an 

continue to be made through FY 2014. As of October 1, 2009, the National Interagency Fleet Management Service agreement for the NCCC. The 

Service Trust is also available to pay Summer of Service and Silver Scholar leases are renewable with no purchase or escalation clause. The following 

educational awards. schedule presents future minimum rental commitments under operating 

leases that have initial or remaining non-cancellable lease terms in 

excess of one year as of September 30.

Estimated Operating Lease Commitments as of September 30 (dollars in thousands)

2014 2013

Fiscal Facilities Facilities

Year Space Vehicles Other Total Space Vehicles Other Total

2014 $ - $ - $ - $ - $ 10,059 $ 953 $ 354 $ 11,366

2015 10,414 298 540 11,252 10,115 873 303 11,291

2016 10,381 309 522 11,212 10,401 874 287 11,562 

2017 10,702 322 531 11,555 10,696 733 287 11,716 

2018 11,033 335 532 11,900 11,000 750 287 12,037 

2019 11,374 348 541 12,263 - - - - 

Total $ 53,904 $ 1,612 $ 2,666 $ 58,182 $ 52,271 $ 4,183 $ 1,518 $ 57,972
Financial Statements | PART II 52

The Corporation for National and Community Service

NOTE 8—Actuarial FECA Liability Consistent with past practice, these projected annual benefit payments 

CNCS’s actuarial liability for future workers’ compensation benefits have been discounted to present value using the Office of Management 

under FECA was $9.3 and $9.7 million as of September 30, 2014 and and Budget’s economic assumptions for ten-year Treasury notes and 

2013, respectively. The amount includes the expected liability for death, bonds.

disability, medical, and miscellaneous costs for approved compensation 

cases. As with all federal agencies, CNCS’s FECA liability is determined NOTE 9—Net Positions

by the Department of Labor. The actuarial liability is determined using Net position consists of unexpended appropriations and cumulative 

a method that utilizes historical benefit payment patterns related to a results of operations. Component balances are separately maintained for 

specific incurred period to predict the ultimate payments related to that the Gift Fund, Trust Fund, and Appropriated Funds.

period. 

Net Position by Fund Balance Component as of September 30, 2014 (dollars in thousands) 

Gift Fund 

Unexpended appropriations $ - $ - $ 890,367 $ 890,367

Cumulative results of operations 462 270,677 (9,450) 261,689 

Total Net Position $ 462 $ 270,677 $ 880,917 $1,152,056

Net Position by Fund Balance Component as of September 30, 2013 (dollars in thousands) 

Gift Funds Trust Funds Appropriated Funds

Unexpended appropriations $ - $ - $ 809,513 $ 809,513

Cumulative results of operations 644 229,736 (7,416) 222,964

Total Net Position $ 644 $ 229,736 $ 802,097 $1,032,477

CNCS is required to report information regarding its financial position CNCS has no permanently restricted assets. The following table presents 

according to three classes of net assets (net position): unrestricted, CNCS’s unrestricted and temporarily restricted net assets.

temporarily restricted, and permanently restricted. 

Restrictions on Net Position as of September 30, 2014 (dollars in thousands) 

 Unrestricted

Appropriated Funds $ 880,917 $ - $ 880,917

Trust Funds - 270,677 270,677

Gift Funds - 462 462

Total Net Position $ 880,917 $ 271,139 $ 1,152,056
Financial Statements | PART II 53

The Corporation for National and Community Service

Restrictions on Net Position as of September 30, 2013 (dollars in thousands) 

 Unrestricted

Appropriated Funds $ 802,097 $ - $ 802,097

Trust Funds - 229,736 229,736

Gift Funds - 644 644

Total Net Position $ 802,097 $ 230,380 $ 1,032,477 

NOTE 10—Appropriations Received by the National The Senior Corps program includes grant expenses, as well as direct and 

Service Trust allocated personnel and administrative costs for RSVP, FGP, and SCP. 

The National Service Trust received $207.4 million for FY 2014, and CNCS also has reimbursable agreements with several state agencies 

$200.7 million for FY 2013. CNCS is also authorized to transfer additional whereby CNCS awards and administers grants to a list of grantees 

amounts from subtitle C program funds to the National Service Trust selected and funded by the State (pass-through grants). The activity 

to support the activities of national service participants. Under the related to pass-through grants has been reclassified to be associated 

provisions of the law, CNCS transferred $5.1 million and $22.8 million to with the related Senior Corps program.

the Trust in FY 2014 and 2013, respectively. Learn and Serve America includes grant expenses, as well as direct and 

NOTE 11—Expenses allocated personnel and administrative costs, for the Learn and Serve 

America Program, the President’s Student Service Challenge, and National Using an appropriate cost accounting methodology, CNCS’s expenses have Service Leader Schools. The Learn & Serve program is no longer funded; been allocated among its major programs, at the sub-program level. however, there was on-going activity through FY 2014 as the program 

Costs for each sub-program are reported on separately: shut down.

AmeriCorps engages members in intense, impact-oriented service to The National Service Award Expense component consists of CNCS’s 

address local community needs in areas of education, healthy futures, estimated expense for education awards based on the increase in its 

environmental stewardship, economic opportunity, disaster services, service award liability during the year and interest forbearance costs on 

and assisting veterans and military families. AmeriCorps includes the qualified student loans during the period members perform community 

State, National, Tribes, and Territories (State/National); National Civilian service. No indirect costs have been allocated to the National Service 

Community Corps (NCCC); and Volunteers In Service To America (VISTA) Award expense component.

programs. The State/National sub-program includes grant expenses, as Innovation, Demonstration, and Assistance Activities (ID&A Activities) well as direct and allocated personnel and administrative costs including include grants to support and encourage new forms of service and AmeriCorps recruitment and National Service Trust operations. The volunteering. The most significant program is the Social Innovation Fund NCCC sub-program includes member stipend and benefits, and direct (SIF). The primary objective of the SIF is to improve the lives of people and allocated personnel and administrative costs, including AmeriCorps in low-income communities by mobilizing public and private sources to recruitment and National Service Trust operations. The AmeriCorps VISTA grow innovative nonprofit organizations that have evidence of compelling sub- program includes grant expenses, member stipend and benefits, as impact in the areas of economic opportunity, youth development, and well as direct and allocated personnel and administrative costs including healthy futures. No indirect costs have been allocated to the Innovation, AmeriCorps recruitment and National Service Trust operations. Demonstration, and Assistance Activities component.

Senior Corps programs provide opportunities for members 55 and older The Office of Inspector General (OIG) receives a separate appropriation. to address local community needs in the areas of education, assisting No indirect costs have been allocated to OIG. veterans and military families, disaster response, and healthy futures. 

Senior Corps includes the Foster Grandparent Program (FGP); Senior 

Companion Program (SCP); and the RSVP.
Financial Statements | PART II 54

The Corporation for National and Community Service

NOTE 11—Expenses—Continued

Components of Grant Funds Expended for the Period Ended September 30 (dollars in thousands)

2014 2013

Domestic Volunteer Service Act Programs $ 223,680 $ 226,790 

National and Community Service Act Programs 344,812 395,955 

Total Grant Funds Expended $ 568,492 $ 622,745 

Expenses by Major Responsibility Segment for the Period Ended September 30 (dollars in thousands) 

 2014

AmeriCorps

State and National $ 535,574 $ 595,844

NCCC 39,698 48,216

VISTA 132,038 134,151

Subtotal $ 707,310 $ 778,211

Senior Corps

RSVP 54,994 53,115

Foster Grandparent Program 116,428 119,391

Senior Companion Program $ 48,256 $ 50,729

Subtotal 219,678 223,235

Learn and Serve America 472 6,048

Innovation, Demonstration, Assistance Activities 42,165 47,355

Office of Inspector General (OIG) 3,458 3,392

Total Expenses $ 973,083 $ 1,058,241 
Financial Statements | PART II 55

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2014 (dollars in thousands)

AmeriCorps National Senior Service Corps

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 303,511 $ - $ 34,375 $ 46,756 $ 100,907 $ 41,642 $ 371 $ 40,930 $ - $ 568,492 

VISTA and NCCC stipends and benefits - 9,414 52,677 - - - - - - 62,091

Service award expense 155,001 3,766 18,640 - - - - - - 177,407

Total Grant and Related Expense 458,512 13,180 105,692 46,756 100,907 41,642 371 40,930 - 807,990

Administrative Expense

Federal employee salaries and benefits 41,304 3,311 8,208 3,970 8,584 3,570 47 - 2,448 71,442 

Travel and transportation 3,345 4,392 1,685 321 695 289 4 - 83 10,814

Rent, communications, and utilities 5,977 4,818 1,049 573 1,240 516 7 - - 14,180 

Program analysis and evaluation 2,373 50 416 228 493 205 3 - - 3,768 

Printing and reproduction 77 30 14 7 67 7 - - - 202 

Other services and expenses 22,330 11,749 14,684 2,980 4,098 1,883 38 1,235 923 59,920 

Supplies and materials 540 2,145 95 52 112 47 1 - 4 2,996 

Depreciation, amortization, and loss on 1,096 23 192 105 228 95 1 - - 1,740 

disposition of assets 

Bad debt 20 - 3 2 4 2 - - - 31

Total Administrative Expense 77,062 26,518 26,346 8,238 15,521 6,614 101 1,235 3,458 165,093 

Total Expenses by Type $ 535,574 $ 39,698 $ 132,038 $ 54,994 $ 116,428 $ 48,256 $ 472 $ 42,165 $ 3,458 $ 973,083 
Financial Statements | PART II 56

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Financial Statements | PART II 57

Expenses by Type and Sub-Program for the Period Ended September 30, 2013 (dollars in thousands)

AmeriCorps National Senior Service Corps

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 344,389 $ - $ 31,893 $ 45,576 $ 105,085 $ 44,236 $ 5,057 $ 46,509 $ - $ 622,745

VISTA and NCCC stipends and benefits - 8,896 54,961 - - - - - - 63,857

Service award expense 171,188 8,484 19,896 - - - - - - 199,568

Total Grant and Related Expense 515,577 17,380 106,750 45,576 105,085 44,236 5,057 46,509 - 886,170

Administrative Expense

Federal employee salaries and benefits 40,355 4,752 7,226 3,286 7,735 3,280 490 - 2,429 69,553

Travel and transportation 2,449 5,107 1,559 261 603 261 30 - 72 10,342

Rent, communications, and utilities 5,563 3,922 884 450 1,060 449 67 - 12 12,407

Program analysis and evaluation 1,720 63 308 139 328 139 24 - - 2,721

Printing and reproduction 126 84 23 22 23 15 1 - - 294

Other services and expenses 29,032 14,703 17,194 3,300 4,365 2,268 363 846 866 72,937

Supplies and materials 444 2,194 117 34 81 34 9 - 13 2,926

Depreciation, amortization, and loss on 520 10 81 42 100 42 6 - - 801

disposition of assets 

Bad debt 58 1 9 5 11 5 1 - - 90

Total Administrative Expense 80,267 30,836 27,401 7,539 14,306 6,493 991 846 3,392 172,071

Total Expenses by Type $ 595,844 $ 48,216 $ 134,151 $ 53,115 $ 119,391 $ 50,729 $ 6,048 $ 47,355 $ 3,392 $ 1,058,241
Financial Statements | PART II 58

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Financial Statements | PART II 59

The Corporation for National and Community Service

NOTE 12—National Service Award Expense CNCS estimates the expense for national service awards based on 

Members serving in approved national service positions are eligible to the increase in its cumulative service award liability during the year 

earn a service award to pay for qualified education expenses. (see Note 6). The total service award liability as of September 30, 

2014 and 2013, respectively, has been adjusted to reflect the fact 

The National Service Trust also pays interest forbearance costs that earned awards are not always used.

on qualified student loans during the period members perform 

community service.

NOTE 13—Change in Unexpended Appropriations, Net 

National Service Award Expense for the Period Ended September 30 (dollars in thousands)

2014 2013

Estimated education awards $ 167,334 $ 190,594 

Estimated interest forbearance 10,073 8,974

National Service Award Expense $ 177,407 $ 199,568 

Unexpended Appropriations, Net as of September 30 (dollars in thousands)

2014 2013

Unexpended Appropriations, Beginning Balance $ 809,513 $ 864,831 

Increases:

Appropriations Received 1,049,954 1,048,884 

Decreases:

Appropriated Capital Used (740,124) (808,085)

Appropriations Transferred to Trust Fund (net of rescissions) (207,387) (200,719)

Program Funds Transferred to Trust (5,109) (22,849)

Appropriations Transferred to Other Federal Agency (2,000) –

Rescissions and Cancellations (14, 480) (72,549)

Total Decreases (969,100) (1,104,202)

Change in Unexpended Appropriations 80,854 (55,318) 

Unexpended Appropriations, Ending Balance $ 890,367 $ 809,513
Financial Statements | PART II 60

NOTE 14—Contingencies NOTE 15—Subsequent Events

CNCS is a party to various routine administrative proceedings, legal CNCS has evaluated subsequent events through November 14, 2014, 

actions, and claims brought by or against it, including threatened which is the date these financial statements were available to be 

or pending litigation involving labor relations claims, some of which issued. As a consequence of its evaluation, CNCS has determined 

may ultimately result in settlements or decisions against CNCS. In that no subsequent events need to be recognized or disclosed.

the opinion of CNCS’ management and legal counsel, there are no 

proceedings, actions, or claims outstanding or threatened that would NOTE 16—Undelivered Orders at Fiscal Year-End

materially impact the financial statements of CNCS. CNCS’ undelivered orders at September 30, 2014 and 2013 were 

$979.9 million and $869.5 million, respectively.

Certain legal matters to which CNCS is a party may be administered 

and, in some instances, litigated and paid by other federal agencies. NOTE 17—Apportionment Categories of Incurred Generally, amounts paid in excess of $2.5 thousand for Federal Tort Obligations

Claims Act settlements or awards pertaining to these litigations are An apportionment is a distribution by OMB of amounts available for 

funded from the Treasury Judgment Fund (TJF). Although the ultimate obligation. OMB apportions Corporation funds on both a quarterly and 

disposition of any potential TJF proceedings cannot be determined, annual basis. Obligations incurred during FY 2014 and 2013 were:

management does not expect that any liability or expense that might 

ensue would be material to CNCS’ financial statements.

Consolidated Obligations Incurred through September 30 (dollars in thousands)

Fiscal Year Direct Reimbursable Total

 

2014 $ 1,275,003 $ 49,261 $ 1,324,264

2013 $ 1,226,901 $ 53,039 $ 1,279,940
Independent Auditor’s Report | PART III 61

The Corporation for National and Community Service

Section III:

Independent 

Auditor’s Report
Independent Auditor’s Report | PAR 62

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on November 14, 2014. 

Under the laws and regulations governing audit follow up, the Corporation is to 

make final management decisions on the report’s findings and 

recommendations no later than June 15, 2015, and complete its corrective 

actions by November 16, 2015. Consequently, the reported findings do not 

T III necessarily represent the final resolution of the issues presented.

Office of Inspector General 

Corporation for National and

Community Service 

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2014 FINANCIAL STATEMENTS 

OIG REPORT 15-01 
Independent Auditor’s Report | PART III 63

November 14, 2014 

TO: Wendy Spencer 

 Chief Executive Officer 

FROM: Stuart Axenfeld /s/ 

 Assistant Inspector General for Audit 

SUBJECT: Audit of the Corporation for National and Community Service’s 

Fiscal Year 2014 Financial Statements, OIG Report 15-01 

We contracted with the independent certified public accounting firm of Kearney & Company, 

P.C. (Kearney) to audit the consolidated financial statements of the Corporation for National and 

Community Service (Corporation) as of September 30, 2014 and 2013, and for the years then 

ended. The contract required that the audit be performed in accordance with the Government 

Auditing Standards and applicable Office of Management and Budget guidance. 

In its audit, Kearney found: 

 The financial statements present fairly, in all material respects, in accordance with 

accounting principles generally accepted in the United States of America; 

 Two significant deficiencies (Integrity Assurance Program and Information Technology) in 

the Corporation’s internal control over financial reporting; and 

 One instance of noncompliance (Federal Information Security Management Act of 2002) 

with applicable provisions of laws, regulations, contracts, and grant agreements. 

In connection with the contract, we reviewed Kearney’s reports and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Corporation’s financial statements or 

conclusions about the effectiveness of internal control; or conclusions on compliance with 

applicable provisions of laws, regulations, contracts, and grant agreements. 

Kearney is responsible for the attached independent auditor’s reports, dated November 14, 

2014, and the conclusions expressed therein. However, our review disclosed no instances 

where Kearney did not comply, in all material respects, with United States generally accepted 

government auditing standards. 

Attachment

cc: Asim Mishra, Chief of Staff 

Jeffrey Page, Chief Operating Officer and Acting Chief Financial Officer 

Tom Hanley, Acting Chief Information Officer 

 Rocco Gaudio, Deputy CFO for Grants and Field Financial Management Center 

 Douglas Hilton, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C.

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 
Independent Auditor’s Report | PART III 64

   

1

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of the Corporation for 

National and Community Service (the Corporation), which comprise the consolidated statements 

of financial position as of September 30, 2014 and 2013, the related consolidated statements of 

operations and changes in net position, the consolidated statements of cash flows, and the 

combined statements of budgetary resources (SBR) (hereinafter referred to as the “financial 

statements”) for the years then ended, and the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America. This 

includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error.

Auditor’s Responsibility 

Our responsibility is to express an opinion on the financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not 

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness 

of accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements. 
Independent Auditor’s Report | PART III 65

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the Corporation as of September 30, 2014 and 2013, and its net cost of 

operations, changes in net position, cash flows, and budgetary resources for the years then ended, 

in accordance with accounting principles generally accepted in the United States of America. 

Emphasis of Matter 

As discussed in Note 1 to the financial statements, the 2004 Executive Order, entitled “National 

and Community Service Programs” (E.O. 13331), requires a statement of assurance in the 

Corporation’s Management Representation Letter by the Chief Executive Officer and Chief 

Financial Officer that its financial statements, including the SBR, are accurate and reliable. The 

Corporation has interpreted this requirement to include presenting the SBR as a principal 

financial statement. The Corporation’s SBR is prepared in accordance with accounting 

principles generally accepted in the United States of America. 

Our opinion is not modified with respect to these matters. 

Other Matters 

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the 

Management’s Discussion and Analysis (hereinafter referred to as the “required supplementary 

information”) be presented to supplement the financial statements. Such information, although 

not a part of the financial statements, is required by OMB and the Federal Accounting Standards 

Advisory Board (FASAB), who consider it to be an essential part of financial reporting for 

placing the financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in 

accordance with auditing standards generally accepted in the United States of America, which 

consisted of inquiries of management about the methods of preparing the information and 

comparing it for consistency with management’s responses to our inquiries, the financial 

statements, and other knowledge we obtained during our audits of the financial statements. We 

do not express an opinion or provide any assurance on the information because the limited 

procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance.
Independent Auditor’s Report | PART III 66

3

Other Information 

Our audits were conducted for the purpose of forming an opinion on the financial statements 

taken as a whole. The information contained in the Donations and Contributions, National 

Service Trust Fund (Trust) Status Report – September 2014, Improper Payments, and Freeze the 

Footprint sections of the Fiscal Year 2014 Agency Financial Report is presented for purposes of 

additional analysis and is not a required part of the financial statements. Except as described 

below, such information has not been subjected to the auditing procedures applied in the audits 

of the financial statements, and accordingly, we do not express an opinion or provide any 

assurance on it.

Certain information from the Trust Status Report – September 2014 statements of financial 

position, related statements of operations and changes in net position, statements of cash flows 

and combined SBR (hereinafter referred to as the “Trust financial statements”), as of September 

30, 2014, is presented as other information. In accordance with the requirements of the National 

and Community Service Act of 1990, as amended, we performed a separate audit of the Trust 

financial statements and issued a report thereon, dated November 14, 2014.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards and OMB Bulletin No. 14-02, we have also 

issued a report, dated November 14, 2014, on our consideration of the Corporation’s internal 

control over financial reporting and on our tests of the Corporation’s compliance with certain 

provisions of laws, regulations, contracts, and grant agreements; and other matters for the year 

ended September 30, 2014. The purpose of that report is to describe the scope of our testing of 

internal control over financial reporting and compliance and the results of that testing, and not to 

provide an opinion on internal control over financial reporting, or on compliance and other 

matters. That report is an integral part of an audit performed in accordance with Government

Auditing Standards and OMB Bulletin No. 14-02, and in considering the Corporation’s internal 

control over financial reporting and compliance. 

Alexandria, Virginia

November 14, 2014 
Independent Auditor’s Report | PART III 67

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER 

FINANCIAL REPORTING AND COMPLIANCE WITH APPLICABLE PROVISIONS 

OF LAWS, REGULATIONS, CONTRACTS, AND GRANT AGREEMENTS

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

We have audited the consolidated financial statements of the Corporation for National and 

Community Service (the Corporation) and the Corporation National Service Trust Fund (Trust) 

as of and for the year ended September 30, 2014, and have issued our reports thereon dated 

November 14, 2014. We conducted our audits in accordance with auditing standards generally 

accepted in the United States of America; the standards applicable to financial audits contained 

in Government Auditing Standards, issued by the Comptroller General of the United States; and 

Office of Management and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal 

Financial Statements.

Internal Control Over Financial Reporting 

In planning and performing our audits of the consolidated financial statements, we considered 

the Corporation’s internal control over financial reporting (internal control) to determine that the 

audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the consolidated financial statements, but not for the purpose of expressing an 

opinion on the effectiveness of the Corporation’s internal control. Accordingly, we do not 

express an opinion on the effectiveness of the Corporation’s internal control. We limited our 

internal control testing to those controls necessary to achieve the objectives described in OMB 

Bulletin No. 14-02. We did not test all internal controls relevant to operating objectives as 

broadly defined by the Federal Managers’ Financial Integrity Act of 1982 (FMFIA), such as 

those controls relevant to ensuring efficient operations.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented 

or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 

combination of deficiencies, in internal control that is less severe than a material weakness yet 

important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the preceding 

paragraph and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies; therefore, material weaknesses or significant 

deficiencies may exist that were not identified. Given these limitations, during our audit, we did 

not identify any deficiencies in internal control that we consider to be material weaknesses. 

However, material weaknesses may exist that have not been identified. We did identify certain 
Independent Auditor’s Report | PART III 2 68

deficiencies in internal control, described in the accompanying Schedule of Findings and 

Reponses, that we consider to be significant deficiencies.

We noted certain additional matters involving internal control over financial reporting that we 

will report to the Corporation’s management in a separate letter. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the Corporation’s consolidated financial 

statements are free from material misstatement, we performed tests of its compliance with certain 

provisions of laws, regulations, contracts, and grant agreements. Noncompliance could have a 

direct and material effect on the determination of financial statement amounts, and certain 

provisions of other laws and regulations specified in OMB Bulletin No. 14-02. We limited our 

tests of compliance to these provisions and did not test compliance with all laws, regulations, 

contracts, and grant agreements applicable to the Corporation. However, providing an opinion 

on compliance with those provisions was not an objective of our audits, and accordingly, we do 

not express such an opinion. The results of our tests disclosed one instance of noncompliance 

that is required to be reported under Government Auditing Standards, and is described in the 

accompanying Schedule of Findings and Responses. 

Corporation’s Response to Findings 

The Corporation’s response to the findings identified in our audits is described in a separate 

letter. The Corporation’s response was not subjected to the auditing procedures applied in our 

audits of the financial statements and accordingly, we do not express an opinion on it. 

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of internal control and 

compliance and the results of that testing, and not to provide an opinion on the effectiveness of 

the Corporation’s internal control or on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards and OMB Bulletin No. 14-02 in 

considering the Corporation’s internal control and compliance. Accordingly, this report is not 

suitable for any other purpose.

Alexandria, Virginia

November 14, 2014 
Independent Auditor’s Report | PART III 69

3

Schedule of Findings and Responses 

Significant Deficiencies

I. Information Technology (New Condition)

The Corporation’s information technology (IT) internal control structure, both for the general 

support systems (GSS) and significant financial reporting applications, did not support a sound 

internal control environment in all five categories of general controls, which include the 

following areas: security management, access controls, configuration management, segregation 

of duties, and contingency planning. The National Institute of Standards and Technology (NIST) 

and the Government Accountability Office’s (GAO) Federal Information System Controls Audit 

Manual (FISCAM) provide control objectives and evaluation techniques that we used during our 

audit. For efficiency, Kearney conducted the audit of IT internal controls in conjunction with the 

Corporation’s annual Federal Information Security Management Act of 2002 (FISMA) 

evaluation.

The FISMA legislation requires the Office of Inspector General (OIG) to perform an annual 

evaluation of a Federal agency’s information security program, including testing security 

controls for a representative subset of agency’s systems. Kearney performed the annual FISMA 

evaluation of the Corporation’s information security and privacy program for fiscal year (FY) 

2014 on behalf of the OIG and prepared responses to 115 FISMA security metric questions. Of 

the 115 security metric questions, our testing identified 49 instances of noncompliance with 

OMB guidance and NIST guidance. These 49 control deficiencies were consolidated into 16 

reported findings within the FY 2014 FISMA report, dated November 14, 2014. 

Collectively, these control deficiencies in the Corporation’s information security and privacy 

program increase the risk of fraud, waste, and abuse and the likelihood that an information 

security breach may occur and result in loss of sensitive information. The loss of sensitive 

information, such as personally identifiable information (PII), could result in significant financial 

liabilities for the Corporation to investigate and remediate the security breach, as well as 

requiring the purchase of credit monitoring and fraud protection services for the affected 

individuals. Based on our integrated test work, Kearney concluded that the Corporation’s 

information security and privacy program was not compliant in a number of respects with the 

FISMA legislation, OMB guidance, and applicable NIST security publications as of September 

30, 2014. Overall, the Corporation needs to take substantial corrective action to address IT 

deficiencies identified in the FY 2014 FISMA report. Management has reported these significant 

deficiencies as a material weakness under FMFIA, consistent with the FISMA legislation and 

OMB reporting guidance.

The list of 16 findings, organized by FISCAM control area, is presented on the following pages. 
Independent Auditor’s Report | PART III 70 4

Security Management 

1. Lack of a formally documented and fully implemented Information Security Continuous 

Monitoring (ISCM) strategy (Repeat finding from FY 2013 FISMA Evaluation) – The 

Corporation has not adopted, formally documented, or implemented an organization-wide 

ISCM strategy and program, as mandated by the OMB guidance and as required by several 

NIST Special Publications (SP), including NIST SP 800-137; NIST SP 800-37 Revision 1, 

NIST SP 800-39, and NIST SP 800-53 Revision 4. As part of monitoring its outsourced 

information systems, the Corporation has not developed meaningful and reportable 

performance metrics to evaluate the IT contractors’ performance and has not incorporated 

such performance metrics into its IT contracts. 

2. Organizational conflict of interest – NIST SP 800-53 Revision 4 requires that security 

assessors be independent and impartial when performing security assessments for Federal 

Information Processing Standard (FIPS) 199 rated “moderate” and “high” impact 

information systems. The Corporation permitted its managed data center services (MDCS) 

contractor to perform the Security Assessment and Authorization (SA&A) of the 

Corporation’s GSS and Electronic System for Programs Agreements and National Service 

Participants (eSPAN) information systems rather than requiring the MDCS contractor to 

hire an independent party. The security assessors, who had primary responsibility for 

monitoring the Corporation’s network, worked for the MDCS contractor and reported to 

the overall Project Manager. The security assessors were effectively reviewing their own 

work and that of their colleagues; their employment status, assigned job responsibilities, 

and organizational reporting relationships precluded an impartial and objective evaluation 

of security controls.

3. Inadequate enterprise-wide risk management policies and practices (Repeat finding from 

FY 2013 FISMA Evaluation) – The Corporation’s documented risk management policies 

and security controls describe the risk management process at the information system (Tier 

3) level but do not address risks at Tier 1 (Organization) and Tier 2 (Mission/Business).

The risk management practices largely do not involve the individuals who are responsible 

for accomplishing organizational, mission, and business objectives on a daily basis, such as 

the business owner or application owner.

4. Weaknesses with the Corporation’s security planning and assessment – The Corporation 

did not develop corporate standards for its multiple IT contractors to follow regarding 

ongoing security assessments and continuous monitoring activities. Kearney’s testing of IT 

security controls across multiple Corporation information systems identified numerous 

inconsistencies and inaccuracies in the system security plans, security assessment reports, 

and Plan of Action and Milestones (POA&M), highlighting the inconsistent nature, depth, 

and quality of security assessments and continuous monitoring activities performed by the 

Corporation’s IT vendors. 

5. Lack of formal role-based training (Repeat finding from FY2013 FISMA Evaluation) – The 

Corporation has not implemented a formal, documented role-based Information Security 
Independent Auditor’s Report | PART III 5 71

Training program for individuals with significant security responsibilities as required by 

NIST. Without regular training, individuals with significant information security 

responsibilities may not keep abreast of new IT threats and vulnerabilities and the 

techniques to mitigate them. 

6. Improvements needed to POA&M Reporting – The Corporation did not have an adequate 

POA&M management process in place to ensure all known enterprise security weaknesses 

are recorded, remediation resources are specifically and uniformly identified, and progress 

toward timely resolution is adequately monitored.

7. Inadequate controls over privacy – The Corporation demonstrated multiple weaknesses in 

the implementation of privacy controls, such as documenting its implementation of 

required NIST SP 800-53 privacy controls, maintaining a complete inventory of PII, and 

complying with requirements to destroy outdated records containing PII in accordance with 

records retention schedules.

8. Inadequate incident response reporting – The Corporation has not properly classified all 

computer security incidents, nor has it reported all computer security incidents to the 

United States-Computer Emergency Readiness Team (US-CERT), as required by OMB 

and US-CERT computer security reporting guidance. Specifically, three Category 1 events 

and three Category 4 events1

 were not reported because they were not correctly classified 

as reportable events.

Access Controls 

1. Use of an obsolete and unsupported network monitoring tool – The Corporation’s primary 

tool for network access control, monitoring, and audit log analysis was obsolete and 

unsupported by the vendor.

2. Lack of controls to prevent use of unauthorized devices – The Corporation did not 

implement IT security policies and supporting technical controls to prevent the use of nonCorporation-issued portable data storage devices such as Universal Serial Bus (USB) 

thumb drives, USB hard drives, smart phones, and tablets. Further, Kearney observed 

Corporation employees utilizing personal devices for work purposes even though the 

Corporation did not have a bring-your-own-device policy that permitted such behavior. 

Without clear, enforced IT security policies regarding the use of personal devices for 

corporate use, Corporation employees and contractors may connect personal USB storage 

devices to Corporation computers and unknowingly introduce malicious software or 

potentially store sensitive information on an unencrypted device.

                                                             1 Category 1 events represent unauthorized access and must be reported within one hour of discovery. Unauthorized 

access occurs when an individual gains logical or physical access without permission to a Federal agency network, 

system, application, data, or other resource. Category 4 events represent improper usage and must be reported 

weekly. Improper usage occurs when a person violates acceptable computing use policies.
Independent Auditor’s Report | PART III 72 6

3. Risks to the confidentiality and availability of voice communications – The Corporation 

does not separate its data network traffic from its voice network traffic. Specifically, 

Corporation desktops were able to ping (query) Cisco Voice over Internet Protocol (VoIP) 

phones and VoIP servers at local and remote offices. In addition, users were able to access 

the Cisco VoIP phones using their desktops’ web browser over unencrypted hypertext 

transfer protocol. Connecting the data network with the voice network exposes the VoIP 

infrastructure to multiple attack vectors and security weaknesses, which could allow a 

hacker to intercept and record phone calls without the knowledge of the caller, or worse, 

create a denial-of-service condition.

Configuration Management 

1. Multiple weaknesses with vulnerability scanning and remediation – Kearney identified five 

deficiencies related to vulnerability scanning and the remediation process at the 

Corporation. Specifically, the Corporation did not: 

a. Scan desktops and laptops on a monthly basis for missing security patches and/or 

configuration errors 

b. Review monthly scan results of servers for 10 months. This allowed 39 high-risk 

vulnerabilities on several critical servers to continue for this period 

c. Configure the vulnerability scanner to identify missing security patches belonging 

to frequently exploited applications such as Internet Explorer, Microsoft Office, 

Adobe Reader, Adobe Flash, and Java 

d. Periodically perform a scan for configuration errors and deviations from the United 

States Government Configuration Baseline for desktops 

e. Include performance metrics for the timely remediation of identified vulnerabilities 

in the MDCS or other IT contracts. 

  

2. Inadequate controls over remote access – The Corporation-issued laptops were configured 

to automatically connect to the Corporation’s network through Cisco’s “AnyConnect VPN” 

client. However, the automatic connection of the laptop to the Virtual Private Network 

(VPN) server does not meet the two-factor authentication requirements for Federal 

agencies where “one of the factors is provided by a device separate from the computer 

gaining access.”2

 In addition, the Corporation incorrectly configured its VPN to permit the 

use of non-compliant, FIPS3

 encryption protocols,4 leaving VPN sessions vulnerable to 

exploitation, such as “man-in-the-middle attacks.” Kearney also noted that the 

Corporation’s VPN client did not include the latest Cisco security patches as of August 25, 

2014 to several Secure Socket Layer (SSL)/Transport Layer Security (TLS) vulnerabilities.

                                                            

2

 OMB Memorandum M-06-16, Protection of Sensitive Agency Information, June 23, 2006 3

 FIPS Publication 140-2, Security Requirements for Cryptographic Modules 4

 RC4, Secure Socket Layer (SSL) 3.0, and SSL 3.1/TLS 1.0. RC4, SSL 3.0, and Transport Layer Security (TLS) 

1.0 are widely used commercially, but have several technical flaws that can increase the risk of exploitation.
Independent Auditor’s Report | PART III 73 7

Segregation of Duties 

1. Lack of segregation of duties – The Corporation did not document requirements for 

segregation of duties for the eSPAN application. This issue has been recurring for the past 

four years. Despite repeated assurances that the Corporation is in the process of 

establishing required segregation of duties across all business processes and aligning this 

with its IT systems, the Corporation has not demonstrated meaningful progress to resolve 

the weakness.

Contingency Planning 

1. Lack of adequate testing of Continuity of Operations Programs (COOP) – The Corporation 

has not conducted adequate planning or testing of its COOP. 

2. Inadequate Disaster Recovery Plan (DRP) documentation and planning – The 

Corporation’s disaster recovery documentation does not plan for all of the Corporation’s 

essential functions and missions. The Business Impact Analysis specifically states that it is 

not meant to address all essential business functions, and refers to the COOP and the 

Corporation DRP for coverage. However, the COOP and DRP also did not identify all 

essential business functions. 

II. Integrity Assurance Program (New Condition)

The Corporation is subject to the reporting requirements of the Government Corporation Control 

Act and is therefore subject to FMFIA; OMB Circular A-123, Management’s Responsibility for 

Internal Control; and the GAO’s Standards for Internal Control in the Federal Government, 

incorporated by reference within these requirements. Collectively, these laws, regulatory 

guidance, and standards require agencies to establish effective internal controls over program 

and financial operations. The Corporation has struggled with meeting these requirements and 

does not yet have a fully functioning internal control monitoring process in place to determine 

the effectiveness of internal controls and support management’s required annual assurance 

statement under FMFIA. 

In FY 2013, the Corporation established the Financial Integrity Steering Committee (FISC), a 

governance and oversight structure for internal control, which conducted a risk assessment and 

tested financial controls in 13 cycles. During this past year, the Corporation issued the Integrity 

Assurance Program (IAP) policies and procedures, formed the Integrity Steering Committee 

(ISC), and updated its initial risk assessment. However, the IAP also experienced a number of 

setbacks and delays that have offset this progress and severely restricted the effectiveness of the 

current program. Kearney has reported the lack of an effective internal control monitoring 

program in each of the past five years when we have performed the financial statement audit of 

the Corporation.

Agency management is responsible for implementing effective internal controls and must certify 

their effectiveness annually in an assurance statement included in the Agency Financial Report. 
Independent Auditor’s Report | PART III 74

8

However, the Corporation has not adopted a comprehensive and timely assessment process with 

effective governance and management follow-up, resulting in assurance statements that are not 

fully supported. Deficiencies in internal control design and operation can and did go undetected.

For example, during this past year, deficiencies in information security were identified through 

our integrated FISMA evaluation and financial statement audit that were not detected by 

management’s Internal Control or Information Assurance program. In the area of procurement, 

an audit conducted by the OIG during FY 2014 found numerous weaknesses related to the 

Corporation’s contract management process and controls; the Corporation has acknowledged the 

broad scope of the issues involved in this area. Both information security and contract 

management are areas widely recognized throughout the Government to carry high risk; 

therefore, they require diligent monitoring of the effectiveness of internal controls. The lack of 

an effective internal control monitoring program means that financial, operational, and 

compliance objectives may not be met, and risks may not be adequately identified and mitigated. 

Governance and Oversight not Effective: The FISC Discontinued Monthly Meetings in June 

and the ISC did not Meet Quarterly

The initial meeting of the ISC, a governance body established in FY 2014 to function as a Senior 

Assessment Team in carrying out internal control monitoring, was not held until the third quarter 

of the FY on June 12, 2014. The ISC did not convene again. The FISC, a governance and 

oversight structure for internal control established in FY 2013, met monthly through June 2014, 

but did not meet again for the remainder of the FY. The absence of a fully engaged and 

functioning internal control oversight body means that corrective action plans (CAP), resource 

constraints, key vacancies, test plans, and results are not monitored at the appropriate senior level 

within the Corporation.

Insufficient Resources Dedicated to Internal Control Monitoring 

During FY 2014, the Office of Accountability and Oversight (OAO)5

 did not have sufficient, 

properly trained personnel to complete the internal control assessment in a comprehensive and 

timely manner. Since FY 2013, the OAO has had one vacant position, and during FY 2014, the 

staffing levels dedicated to Internal Control and Analysis within the OAO decreased.

The OAO also does not have personnel with the IT skills to perform an assessment of 

information systems controls. Without the skill set and experience of an IT specialist, or access 

to this skill set within the Corporation, IT testing was inadequate. Kearney’s detailed sampling 

of IT controls highlighted that documented IT procedures and practices were not consistently 

followed and operational security gaps existed.

                                                            

5 The OAO is an office that was established by the Corporation in FY 2012 and is responsible for establishing 

program objectives, defining policy, overseeing risk/control assessment, submitting results to FISC for FMFIA 

decision-making, and performing subsequent remediation activities. 
Independent Auditor’s Report | PART III 75

9

Undetected Significant Deficiencies Related to Information Security and Compliance

As noted above, internal controls over information security are separately identified as part of the 

financial statement audit as a significant deficiency. The information security and privacy 

program at the Corporation did not meet minimum security standards established by FISMA, 

OMB, and NIST, and needs substantial improvement across the board. These information 

security deficiencies and areas of noncompliance with Federal information systems requirements 

were not detected as part of the Corporation’s internal control monitoring program. 

An Incomplete Risk Assessment Process 

The OAO’s risk assessment process remains incomplete and needs to be more comprehensive in 

identifying the range of risks faced by the Corporation. For example, factors such as a changed 

regulatory or operating environment, new personnel, turnover of key personnel, new or 

revamped information systems, and new technology all represent risks that should be considered 

during the Corporation’s risk assessment process. Further, the GAO’s Standards for Internal 

Control in the Federal Government also require a detailed fraud risk assessment, and that 

responses to those risks be performed and incorporated into the risk assessment process. 

Internal Control Assessment was not Completed Timely 

The OAO did not complete its internal control assessment in a timely manner. As of the end of 

the FY 2014, the Corporation had not completed its testing for any of the areas selected, and 

grants management assessment was not completed until October 24, 2014. An effective and 

fully functioning internal control monitoring program should complete and report the results of 

internal control testing during the FY. The delay in the Corporation’s internal control testing 

provided very little time to assess and consider the results with the ISC, FISC, Chief Executive 

Officer, and Board of Directors before decisions regarding management’s annual assurance 

statement need to be made. 

* * * * * 
Independent Auditor’s Report | PART III 76

10

Noncompliance and Other Matters 

III. Federal Information Security Management Act of 2002 (FISMA) (New 

Condition)

FISMA requires agencies to develop, document, and implement an agency-wide information 

security program to provide information security for the information and information systems 

that support the operations and assets of the agency, including those provided or managed by 

another agency, contractor, or other source. 

As noted in its Management Assurance Statement in the FY 2014 Agency Financial Report, 

the Corporation disclosed an instance of noncompliance with FISMA that is required to be 

reported under Government Auditing Standards and OMB Bulletin No. 14-02. 

By not complying with FISMA, the Corporation has potentially weakened security controls, 

which could adversely affect the confidentiality, integrity, and availability of information and 

information systems. 

* * * * * 
Office of Inspector General 

Corporation for National and

Community Service 

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2014

NATIONAL SERVICE TRUST FUND 

FINANCIAL STATEMENTS 

OIG REPORT 15-02 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on November 14, 2014. 
Independent Auditor’s Report | PA 78

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov RT III 

November 14, 2014 

TO: Wendy Spencer 

 Chief Executive Officer 

FROM: Stuart Axenfeld /s/

 Assistant Inspector General for Audit 

SUBJECT: Audit of the Corporation for National and Community Service’s 

 Fiscal Year 2014 National Service Trust Fund Financial Statements, 

OIG Report 15-02 

We contracted with the independent certified public accounting firm of Kearney & Company, 

P.C. (Kearney) to audit the Corporation for National and Community Service’s (Corporation) 

National Service Trust Fund financial statements (Trust financial statements) as of September 

30, 2014 and 2013, and for the years then ended. The contract required that the audit be 

performed in accordance with the Government Auditing Standards and applicable Office of 

Management and Budget guidance. 

In its audit, Kearney found that the Trust financial statements present fairly, in all material 

respects, in accordance with accounting principles generally accepted in the United States of 

America.

In connection with the contract, we reviewed Kearney’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Trust financial statements. 

Kearney is responsible for the attached independent auditor’s report, dated November 14, 2014, 

and the conclusions expressed therein. However, our review disclosed no instances where 

Kearney did not comply, in all material respects, with United States generally accepted 

government auditing standards. 

Attachment

cc: Asim Mishra, Chief of Staff 

Jeffrey Page, Chief Operating Officer and Acting Chief Financial Officer 

Tom Hanley, Acting Chief Information Officer 

 Rocco Gaudio, Deputy CFO for Grants and Field Financial Management Center 

 Douglas Hilton, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C. 
Independent Auditor’s Report | PART III 79

   

1

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Trust Financial Statements

We have audited the accompanying financial statements of the Corporation for National and 

Community Service (the Corporation) National Service Trust Fund (Trust), which comprise the 

statements of financial position as of September 30, 2014 and 2013, the related statements of 

operations and changes in net position, the statements of cash flows, and the combined 

statements of budgetary resources (SBR) (hereinafter referred to as the “Trust financial 

statements”) for the years then ended, and the related notes to the Trust financial statements. 

Management’s Responsibility for the Trust Financial Statements

Management is responsible for the preparation and fair presentation of the Trust financial 

statements in accordance with accounting principles generally accepted in the United States of 

America. This includes the design, implementation, and maintenance of internal control relevant 

to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

Our responsibility is to express an opinion on the Trust financial statements based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the Trust financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the Trust financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the Trust financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the Trust 

financial statements in order to design audit procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal 

control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting 

estimates made by management, as well as evaluating the overall presentation of the Trust

financial statements. 
Independent Auditor’s Report | PART III 80

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the Trust financial statements referred to above present fairly, in all material 

respects, the financial position of the Trust as of September 30, 2014 and 2013, and its net cost 

of operations, changes in net position, cash flows, and budgetary resources for the years then 

ended, in accordance with accounting principles generally accepted in the United States of 

America. 

Emphasis of Matter 

As discussed in Note 1 to the Trust financial statements, the 2004 Executive Order, entitled 

“National and Community Service Programs” (E.O. 13331), requires a statement of assurance in 

the Corporation’s Management Representation Letter by the Chief Executive Officer and Chief 

Financial Officer that its financial statements, including the SBR, are accurate and reliable. The 

Corporation has interpreted this requirement to include presenting the Trust SBR as a principal 

financial statement. The Corporation’s Trust SBR is prepared in accordance with accounting 

principles generally accepted in the United States of America. 

Our opinion is not modified with respect to these matters. 

Other Matters 

Other Information 

Our audits were conducted for the purpose of forming an opinion on the Trust financial 

statements taken as a whole. The information contained in the National Service Trust Fund 

Status Report – September 2014, Other Information, section of the Fiscal Year 2014 Agency 

Financial Report is presented for purposes of additional analysis and is not a required part of the 

Trust financial statements. Such information has not been subjected to the auditing procedures 

applied in the audits of the Trust financial statements, and accordingly, we do not express an 

opinion or provide any assurance on it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards and OMB Bulletin No. 14-02, we have also 

issued a report, dated November 14, 2014, on our consideration of the Corporation’s internal 

control over financial reporting and on our tests of the Corporation’s compliance with certain 

provisions of laws, regulations, contracts, and grant agreements; and other matters for the year 

ended September 30, 2014. The purpose of that report is to describe the scope of our testing of 

internal control over financial reporting and compliance and the results of that testing, and not to 

provide an opinion on internal control over financial reporting, or on compliance and other 

matters. That report is an integral part of an audit performed in accordance with Government
Independent Auditor’s Report | PART III 81 3

Auditing Standards and OMB Bulletin No. 14-02, and in considering the Corporation’s internal 

control over financial reporting and compliance. 

Alexandria, Virginia

November 14, 2014 
Independent Auditor’s Report | PART III 82

The Corporation for National and Community Service

Memorandum

Date:    November  14,  2014

To:    Deborah  Jeffrey,  Inspector  General

From:    Jeffrey  Page,  Acting  Chief  Financial  Officer

Subject:    Draft  Report  on  the  Corporation for  National  and  Community  Service’s  (CNCS)  Fiscal  

Year  2014  (FY 2014)  Financial  Statements

Thank  you  for  the  opportunity  to  respond  to  the  draft  report  on  the  results  of  your  audit of  

CNCS’ FY  2014  Financial  Statements.  I  am  pleased  that  we  can  report  that  CNCS  maintained  its  

unmodified  opinion in  FY  2014  and that    four management letter  findings associated with  

financial  reporting  included  in  the  FY  2013  report  were  closed.    

While  these  accomplishments  demonstrate  our  commitment  to  continuous  improvement,  we

recognize the  need  to  address  ongoing  challenges.  We  are  committed  to  implementing  a  sound  

governance and  oversight framework  to  maximize  the  agency’s  fiscal  stewardship.  This  reflects  

CNCS’  commitment  to continuously  improving our  operations  and  maintaining high  standards  

for financial management.  
Independent Auditor’s Report | PART III 83

Memorandum

Date:    November  14,  2014

To:    Deborah  Jeffrey,  Inspector  General

From:    Jeffrey  Page,  Acting  Chief  Financial  Officer

Subject:    Draft  Report  on  Internal  Controls  over  Financial  Reporting  and  Compliance  and  

Compliance  with  Applicable  Provisions  of  Laws,  Regulations,  Contracts,  and  Grant  Agreements  

Thank  you  for  the  opportunity  to  respond  to  the  draft  report  on  Internal  Controls.    CNCS  

concurs  with  the  conditions  and  recommendations  reported  in  the  draft  report.

CNCS  is  committed  to  establishing  a sound  governance  and  oversight  framework  for  effective  

internal  control  and  Enterprise  Risk  Management  programs necessary  to  take  CNCS’s  overall  

risk  assessment  and  internal  controls  functions  to  the  next  level.    CNCS  is  also  committed  to  

maintaining  a  strong  and  effective  Information  Assurance  Program  and  protecting  sensitive  

information  in  our  systems.  We  are  dedicated to  fulfilling  our  responsibility  to  national  service  

participants,  grantees,  and  other  stakeholders.  
Independent Auditor’s Report | PART III 84

Memorandum    

Date:    November  14,  2014

To:    Deborah  Jeffrey,  Inspector  General

From:    Jeffrey  Page,  Acting  Chief  Financial  Officer

Subject:    Draft  Report  on  the Fiscal  Year  2014  (FY  2014) National  Service  Trust  Fund  Financial  

Statements

Thank  you  for  the  opportunity to  respond  to  the  draft  report  on  the  results  of  your  audit  of  the  

FY  2014 National  Service  Trust  Fund  financial  statements.    I  am  pleased  that  we  can  report  the  

Corporation for  National and  Community  Service  (CNCS)  maintained an  unmodified  opinion.    

CNCS  is  dedicated  to  continuous  improvements and committed  to  implementing a  sound  

governance  and  oversight  framework  to  maximize  the agency’s  fiscal  stewardship  as  we  

embark  upon  the  new  fiscal  year.    This  reflects  CNCS’  commitment  to  continuously  improving

our  operations.    
Other Information | PART IV 85

The Corporation for National and Community Service

Section IV:

Other Information

Donations and 

Contributions

Under CNCS’s authorizing legislation, donated funds may be accepted and 

used in furtherance of the purposes of the national service laws (42 USC 

12651g(a)(2)(A)). The law allows CNCS to “solicit, accept, hold, administer, 

use, and dispose of, in furtherance of the purpose of the national service 

laws, donations of any money or property, real, personal, or mixed, 

tangible or intangible, received by gift, devise, bequest, or otherwise.” The 

legislation also requires that CNCS report to Congress on the nature and 

amount of donations, as well as on how they were used and disposed of 

(in the case of donated property) in support of its programs and activities. 

This report fulfills these requirements for FY 2014.

CNCS also utilizes Pay.gov, a Treasury program that allows federal 

agencies to conduct transactions online. Under the Pay.gov program, CNCS 

collects donations by credit card or direct debit from donors. Pay.gov 

facilitates the process of collecting gift funds from donors online through 

a secure website with real-time identification verification and provides the 

reporting necessary for processing transactions. The following schedules 

show the Gift Fund balances available, as of September 30, 2014, to fund 

authorized activities as well as the receipts and expenses paid from the 

Gift Fund in FY 2014 and 2013, respectively. 
Other Information | PART IV 86

Status of Gift Fund Balance at September 30, 2014

Fund Balance With Treasury Obligation & Commitments Funds Available

Best Buy $ 2,275 $ - $ 2,275 

Bradley Foundation 2,030 - 2,030

CVS 7,500 - 7,500

Home Depot 119,255 (24,397) 94,858

Land O’Lakes 1,961 - 1,961 

Ralph Lauren Polo Foundation 53,580 - 53,580

State Farm Insurance Co. - - -

UPS Foundation 2,026 - 2,026

Walt Disney Company 28,158 (11,570) 16,588

Kellogg Foundation 55,572 (26,415) 29,157

Disaster Relief Fund 16,623 (350) 16,273

Disaster Relief Hurricane - - -

Motorola Foundation 1,070 - 1,070 

Shell Oil Co. 3,365 - 3,365

Microsoft 6,315 - 6,315

American Express 25,000 - 25,000 

IBEW Union 532 - 532

White House Council 108,007 - 108,007

TSO - - -

Miscellaneous Donations 63,165 (60,102) 3,063 

Total $ 496,434 $ (122,834) $ 373,600
Other Information | PART IV 87

Supplemental Information on the Source and Use Of Donations10

2014 2013

Donor Use of Funds Received Used Received Used

Best Buy Grants for the Martin Luther King $ 21 $ 38,259 $ - $ 54,913

Day of Service

Home Depot Disaster Rebuilding Activities - 16,007 32,971

Land O’Lakes VISTA Support 50,000 118,830 150,775 41,842

Ralph Lauren Polo 

Foundation

Support for NCCC program activities - 1,254 - 660

State Farm Insurance Co. Learn & Serve America 15th Anniversary - 111 - -

Walt Disney Company Corporation Projects in support of USA Freedom Corp - 17,745 - 12,656

Shell Oil Co. Support for the Martin Luther King Day of Service - - - -

Kellogg Foundation AmeriCorps volunteer mobilization - - - -

IBEW Union CNCS Board of Directors Support - - - 517

Motorola Foundation National Conference 100 - 475 -

Microsoft Student Driven Virtual Help Desk - - - -

American Express United We Serve - - 50,000 42,882

Sponsorship Sponsorship Programs 19,032 19,032 - -

 

Small Individual Donations Restricted to

Disaster Relief - - - -

Senior Corps - - - -

AmeriCorps (Miscellaneous) - - 60 -

AmeriCorps NCCC - - - -

Learn & Serve America - - - -

AmeriCorps Vista - - - 3,309

Service Learning Toolkit Promotion - - - -

General/Miscellaneous Support 23,991 36,905 719 684

Total $ 93,144 $ 248,143 $ 202,029 $ 190,434

10 Funds reported as used during the fiscal year in the schedule may be from amounts donated in a previous year(s). In addition, the expenses above only include the amount accrued during the fiscal 

year and do not reflect amounts that have been obligated but not yet expensed.
Other Information | PART IV 88

National Service Trust Education awards earned by AmeriCorps members are generally available 

Fund Status Report— to be used for seven years from the completion of the service. Payments 

are made directly to the educational institutions and the loan holders as 

September 2014 directed by the members and by the institutions. Trust funds are not used 

to pay member stipends or other grant costs. Beginning in Program Year 

The National Service Trust Fund (the Trust) was established by the 2010, AmeriCorps State and National and Silver Service members who 

National and Community Service Trust Act of 1993 (The Act), 42 USC are age 55 or older when they begin service may transfer their education 

12601, et seq. to provide funds for Segal AmeriCorps Education Awards award to a qualified child, grandchild, or foster child. Education awards 

to eligible participants who complete AmeriCorps service. Funding for earned by AmeriCorps members are generally available to be used for 

the Trust comes from appropriations, interest earned, funds transferred seven years from the completion of the service. Payments are made 

from subtitle C pursuant to 42 USC 1260, and proceeds from the sale or directly to the educational institutions and the loan holders as directed 

redemption of Trust investments. The Trust is also authorized to accept by the members and by the institutions. Trust funds are not used to pay 

gifts or bequests; however, to date, no donations have been received by member stipends or other grant costs. Beginning in Program Year 2010, 

the Trust. Under the Act, funds are available to repay qualified student AmeriCorps State and National and Silver Service members who are age 

loans, pay educational expenses at qualified educational institutions, and 55 or older when they begin service may transfer their education award to 

repay eligible interest expense on student loans. a qualified child, grandchild, or foster child.

The value of an education award depends on the term of service Table 1 shows the planned activity for the current Program Year and 

performed by an AmeriCorps member. For Program Year 2014, completion actual enrollments to date against the plan. The table also includes 

of a full-time term of service, requiring a minimum of 1,700 hours of similar data on the prior Program Year for comparative purposes. Member 

service, entitles an AmeriCorps member to an education award of $5,645. positions (slots) classified as “Certified Not Awarded” have been approved 

Completion of a part-time term, requiring a minimum of 900 hours of by CNCS’s Chief Executive Officer for award to grantees for which the 

service, entitles an AmeriCorps member to an education award of $2,822. final grant award has not been executed. For budgetary purposes these 

Reduced part-time terms, which provide awards of $500 to $2,150, are positions are considered commitments in the Trust Fund.

also offered. The education award is indexed to the maximum federal Pell 

grant; therefore these amounts may change each year.

Table 1. Member Position Award Activity 

Program Year 2014 Program Year 2013

Awarded Awarded

 Certified Planned Certified Planned

Not Not Not Not Not Not

AmeriCorps Program Enrolled Enrolled Awarded Certified Total Enrolled Enrolled Awarded Certified Total

State and National 29,622 29,507 4,108 7,872 71,109 62,515 1,360 198 10,947 75,020

VISTA 6,615 – 939 146 7,700 6,077 – 1,296 – 7,373

NCCC 1,073 – 127 – 1,200 1,171 – 29 – 1,200

Total 37,310 29,507 5,174 8,018 80,009 69,763 1,360 1,523 10,947 83,593
Other Information | PART IV 89

The 80,009 Trust positions planned for Program Year 2014 do not include Of the 6,077 AmeriCorps VISTA member positions in the Trust for 2013, 

an estimated 1,020 AmeriCorps VISTA members (870 full-time and 150 1,835 positions are for Summer Associates who receive a Trust award 

Summer Associates) electing an end-of-service stipend instead of an of $1,175. Member enrollment and slot data are periodically adjusted to 

education award. Total estimated member positions for Program Year reflect corrections and slot reconfigurations by grantees; therefore they 

2014, including AmeriCorps VISTA members electing a stipend, is 81,029. may change slightly from month to month.

Member enrollment and slot data are periodically adjusted to reflect 

corrections and slot reconfigurations by grantees; therefore they may Trust Awards

change slightly from month to month. Since CNCS’s inception in 1993, AmeriCorps members have earned over 

$2.9 billion in Segal AmeriCorps Education Awards and used over $2.0 

The 83,593 Trust positions for Program Year 2013 do not include an billion to fund their education and repay student loans. In addition, CNCS 

estimated 1,650 AmeriCorps VISTA members (1,329 full-time and 321 has made $82.2 million in interest forbearance payments. Approximately 

Summer Associates) electing an end-of-service stipend instead of an $300.8 million in education awards earned have expired without being 

education award. Total estimated member positions for Program Year used. The Trust obligation formula has been adjusted to reflect these 

2013, including AmeriCorps Vista members electing a stipend, is 85,243. expired awards.

Not reflected in the Segal AmeriCorps Education Award balances are of $1,000 to help the student fund a college education. Although the 

payments for President’s Freedom Scholarships to high school students. program was discontinued in FY 2007, students have up to seven years to 

CNCS no longer awards these $500 scholarships from the National use their scholarship. President’s Freedom Scholarships payments to date 

Service Trust earned by high school students. Under this program, a have totaled $21.6 million.

Trust scholarship was matched with $500 from a local sponsor for a total 

Chart 1. Segal AmeriCorps Education Awards Earned and Used by Program Year

$0 

$20,000,000 

$40,000,000 

$60,000,000 

$80,000,000 

$100,000,000 

$120,000,000 

$140,000,000 

$160,000,000 

$180,000,000 

$200,000,000 

$250,000,000 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Recovery

Act 

2010 2011 2012 

Awards Earned to Date

Awards Used to Date

Program Year

2013 2014
Other Information | PART IV 90

The Corporation for National and Community Service

Refilled Positions that restrict the overall number of refills to no more than 5 percent of 

CNCS policy allows grantees limited flexibility to refill positions vacated by awarded positions and suspends refilling altogether if total AmeriCorps 

a member who has served less than 30 percent of his or her service term, enrollment reaches 97 percent of awarded positions. Table 2 provides 

provided that the departing member had not earned a pro-rated education information on the number of positions refilled. Recovery Act positions and 

award. To prevent over-enrollment, the policy includes “fail safe” triggers positions in Program Years 2010 and earlier can no longer be refilled.

Table 2. Number of Refilled Positions

Results to Date

Program Program

Year

2010

Program

Year

2011

Program

Year

2012

Program

Year

2013

Program

Year 

2014 

Fail-safe

Trigger

Number of Refilled Positions 1,385 1,604 1,516 1,381 1,200 25 N/A

Refills as a Percent of Awarded State and

National Positions 2.1% 2.0% 2.1% 2.1% 1.9% 0.0% 5%

State and National Enrollment as a Percentage

of Awarded State and National Positions 97.3% 99.5% 97.7% 98.8% 97.9% 50.1% 97%
Other Information | PART IV 91

The Corporation for National and Community Service

National Service Trust Fund Accounting The Federal Accounting Standards Advisory Board (FASAB) is the standard 

The Statements of Financial Position; Operations and Changes in Net setting body for the federal government. Statement of Federal Financial 

Position; Cash Flows; and Budgetary Resources and accompanying Accounting Standards Number 34 (SFFAS 34) provides that financial 

notes have been prepared from the books and records of the CNCS in statements prepared by certain government corporations in conformity 

accordance with generally accepted accounting principles as required by with the accounting standards issued by the Financial Accounting 

the Government Corporation Control Act (Act) and Executive Order 13331, Standards Board (FASB) are regarded as being in conformity with 

National and Community Service Programs. GAAP. As provided by SFFAS 34, where there is no standard issued by 

FASB applicable to the federal corporation the financial statements are 

As specified in the Act, principal financial statements are the: presented in accordance with the accounting standards issued by FASAB.

• Statement of Financial Position which reports the status of assets, 

Under Executive Order 13331, National and Community Service Programs, liabilities, and net position of the Trust;

CNCS must prepare a Combined Statement of Budgetary Resources • Statement of Operations and Changes in Net Position which reports as a principal statement. The accompanying Statements of Budgetary revenues and expenses for the year and the changes in net position Resources have been prepared in accordance with GAAP, as prescribed by that occurred during the year. FASAB.

• Statement of Cash Flows which show how changes in the financial 

position affect cash according to operating, investing, and financing 

activity.

• Statement of Budgetary Resources which reports status of budgetary 

resources.
Other Information | PART IV 92

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Financial Position as of September 30 

(dollars in thousands)

2014 2013

Assets

Fund Balance with Treasury (Note 2) $ 6,606 $ 611

Investments, Net (Note 3) 717,304 692,243

Interest Receivable 669 922

Accounts Receivable, Net (Note 4) 229 234

Total Assets $ 724,808 $ 694,010

Liabilities 

Service Award Liability (Note 5) 454,131 464,274

Net Position

Cumulative Results of Operations (Note 6) 270,677 229,736

Total Liabilities and Net Position $ 724,808 $ 694,010

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 93

The Corporation for National and Community Service

Corporation for National and Community Service

National Service Trust Statements of Operations and Changes in Net Position 

for the Periods Ended September 30 (dollars in thousands)

2014 2013

Revenues

Appropriations (Note 7) $ 207,387 $ 200,719

Transfer in of Program Funds 5,109 22,849

Interest 2,442 3,133

Other Revenue 3,418 6,054

Total Revenues $ 218,356 $ 232,755

Expenses 

Service Award Expense 177,407 199,568

Write off/Recovery of Receivables 8 27

Total Expenses (Note 8) $ 177,415 $ 199,595

Excess of Revenues Over Expenses $ 40,941 $ 33,160

Net Position

Excess of Revenues Over Expenses 40,941 33,160

Net Position, Beginning of Year 229,736 196,576

Net Position, End of Year $ 270,677 $ 229,736

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 94

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Cash Flows 

for the Periods Ended September 30 (dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES 2014 2013

Net of Revenue over Expenses $ 40,941 $ 33,160 

Adjustments Affecting Cash Flow:

Amortization of Premium/Discount on Investments (613) 1,795 

Appropriations Received in Trust (212,496) (223,568)

Decrease/(Increase) in Accounts Receivable 5 18

Decrease/(Increase) in Interest Receivable 253 136

Increase/(Decrease) in Trust Liability (10,143) 17,083

Total Adjustments (222,994) (204,536)

Net Cash Provided/(Used) by Operating Activities (182,053) (171,376)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Assets 867,395 729,799

Purchase of Securities (891,843) (786,331)

Net Cash Provided/(Used) in Investing Activities (24,448) (56,532) 

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received in Trust 212,496 223,568

Net Cash Provided by Financing Activities 212,496 223,568

Net Increase/(Decrease) in Fund Balance with Treasury 5,995 (4,340)

Fund Balance with Treasury, Beginning 611 4,951 

Fund Balance with Treasury, Ending $ 6,606 $ 611

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 95

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources 

for the Periods Ended September 30 (dollars in thousands)

BUDGETARY RESOURCES 2014 2013

Unobligated balance, brought forward, October 1 $ 96,820 $ 76,053

Budget authority: 

Appropriations (discretionary and mandatory) 217,545 224,863

Spending authority from offsetting collections: 

Spending Authority from offsetting collections (total) 3,418 6,054

Total budgetary resources $ 317,783 $ 306,970

STATUS OF BUDGETARY RESOURCES 

Obligations incurred

Obligations incurred (total) 218,762 210,150

Unobligated balance 

Apportioned 48,351 46,623

Unobligated balance not available 50,670 50,197

Total unobligated balance, end of year 99,021 96,820

Total budgetary resources $ 317,783 $ 306,970 

 (Continued)

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 96

(Continued)

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources 

for the Periods Ended September 30 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2014 2013

Unpaid obligations: 

Unpaid obligations, brought forward, October 1 $ 592,131 $ 564,476

Obligations incurred 218,762 210,150

Outlays (gross) (-) (187,553) (182,495)

Unpaid Obligations, end of year $ 623,340 $ 592,131

Memorandum entries:

Obligated balance, start of year $ 592,131 $ 564,476 

Obligated balance, end of year $ 623,340 $ 592,131 

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) $ 220,964 $ 230,917 

Change in uncollected customer payments from federal sources (3,418) (6,054) 

Budget authority, net (discretionary and mandatory) $ 217,545 $ 224,863 

Outlay, gross (discretionary and mandatory) 187,553 182,495 

Actual offsetting collections (3,418) (6,054)

Outlays, net (discretionary and mandatory) $ 184,134 $ 176,441 

Distributed offsetting receipts (212,496) (223,568)

Agency Outlays, net (discretionary and mandatory) $ (28,361) $ (47,127) 

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 97

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies • Statement of Financial Position, which reports the status of 

A. REPORTING ENTITY Corporation assets, liabilities, and net position;

The National Service Trust Fund (the Trust) was established by the • Statement of Operations and Changes in Net Position, which reports 

National and Community Service Trust Act of 1993 (The Act), 42 USC CNCS’s revenues and expenses for the year and the changes in net 

12601, et seq. to provide funds for Segal AmeriCorps Education Awards position that occurred during the year; and

for eligible participants who complete AmeriCorps service. The activities • Statement of Cash Flows, which shows how changes in CNCS’s 

of the Trust are funded primarily through the annual Departments of financial position and results affected its cash (Fund Balance with 

Labor, Health and Human Services, Education and Related Agencies Treasury), and breaks the analysis down according to operating, 

Appropriations Act, which funds National and Community Service Act investing, and financing activities.

programs. Appropriations are provided on a no-year basis for the Trust, a 

fund within the Corporation used to provide education awards and student The financial statements are presented in accordance with the accounting 

loan interest forbearance to eligible participants. Trust appropriations do principles generally accepted in the United States of America (GAAP), as 

not expire with the passage of time and are retained by the Corporation in applicable to federal government corporations. The Federal Accounting 

the Trust until used for eligible purposes. Standards Advisory Board (FASAB) is the standard setting body for the 

federal government. Statement of Federal Financial Accounting Standards 

The Trust provides awards for AmeriCorps members serving in approved Number 34 (SFFAS 34) provides that financial statements prepared 

national service positions under AmeriCorps State and National, by certain government corporations in conformity with the accounting 

AmeriCorps NCCC, and AmeriCorps VISTA. The trust also makes standard issued by the Financial Accounting Standards Board (FASB) 

awards to the AmeriCorps Education Award Program, where sponsoring are regarded as being in conformity with GAAP. As provided by SFFAS 

organizations are responsible for providing member subsistence and other 34, where there is no standard issued by FASB applicable to the federal 

costs, and the Corporation provides an education award and a small corporation the financial statements are presented in accordance with the 

amount for administrative costs. Programs have up to two years after an accounting standards issued by FASAB.

award to enroll members in positions.

In addition, under Executive Order 13331, National and Community 

Funds from the Trust may be expended for the purpose of providing an Service Programs, CNCS must prepare a Combined Statement of 

education award or student loan interest forbearance payment and must Budgetary Resources as a principal statement. The accompanying 

always be paid directly to a qualified institution (college, university, Combined Statements of Budgetary Resources have been prepared in 

or other approved educational institution, or a lending institution accordance with GAAP, as prescribed by FASAB. The Combined Statement 

holding an existing student loan) as designated by the participant. of Budgetary Resources presents additional details to include activity that 

The Trust may also expend funds for payments under the President’s is significant to CNCS.

Freedom Scholarship Program as authorized under various Corporation 

appropriations through fiscal 2007. CNCS’s consolidation policy requires the consolidation of all funds 

administered by CNCS, as delineated in Note 1A – Reporting Entity.

B. BASIS OF ACCOUNTING

The Statements of Financial Position; Operations and Changes in Net D. BUDGETS AND BUDGETARY ACCOUNTING

Position, Cash Flows and Budgetary Resources have been prepared from The activities of the National Service Trust Fund are primarily funded 

the books and records of CNCS in accordance with Generally Accepted through the annual Departments of Labor, Health and Human Services, 

Accounting Principles (GAAP) as required by the Government Corporation Education and Related Agencies Appropriation Act. CNCS’s accounting 

Control Act (Act) and Executive Order 13331, National and Community structure reflects both accrual and budgetary accounting transactions. 

Service Programs. Under the accrual method of accounting, revenues are recognized when 

C. F INANCIAL STATEMENT PRESENTATION AND earned and expenses are recognized when incurred, without regard to 

CONSOLIDATION POLICY the actual collection or payment of cash. Federal budgetary accounting 

The accompanying financial statements report CNCS’s financial position, recognizes the obligation of appropriations and other funds upon the 

results of operations, and cash flows, as required by the Government establishment of a properly documented legal liability, which, in many 

Corporation Control Act (GCCA). As required by GCCA, the principal cases, is different from the recording of an accrual-based transaction. 

financial statements of CNCS are the: The recognition of budgetary accounting transactions is essential for 

compliance with legal controls over the use of federal funds.
Other Information | PART IV 98

The Corporation for National and Community Service

E. ASSET AND LIABILITY VALUATION J. TRUST SERVICE AWARD LIABILITY

CNCS values its investments at carrying value and discloses fair value. The Trust Service Award Liability represents education awards that 

As of September 30, 2014, the carrying amounts of Fund Balance are unpaid earned, or expected to be earned, and eligible student loan 

with Treasury, Accounts Receivable, Accrued Interest Receivable, and interest forbearance costs expected to be used. These amounts relate to 

Liabilities approximate their fair value. participants who have completed service or are currently enrolled in the 

program and are expected to earn an award, based on CNCS’ historical F. FUND BALANCE WITH TREASURY experience. CNCS considers Fund Balance with Treasury (FBWT) to represent cash and 

cash equivalents. FBWT is CNCS’s cash accounts with the Department K. ACCOUNTS PAYABLE

of the Treasury (the Treasury). The Treasury processes cash receipts CNCS records as liabilities all amounts that are likely to be paid as a 

and disbursements on behalf of CNCS and CNCS’s accounting records direct result of a transaction or event that has already occurred. Accounts 

are reconciled with those of the Treasury on a regular basis. The FBWT payable represents amounts due to external entities for goods and 

maintained in the National Service Trust is restricted to specific purposes, services received by CNCS, but not paid for at the end of the fiscal year.

such as paying service awards earned by eligible participants, and is not L. NET POSITION available for use in the current operations of CNCS. Net Position represents Net Assets and is comprised of cumulative 

G. INVESTMENTS AND RELATED RECEIVABLES results of operations. Cumulative results of operations represent the net 

By law, CNCS may invest the funds of the National Service Trust in differences between revenues and expenses from the inception of CNCS.

interest-bearing Treasury securities guaranteed by the United States M. REVENUE RECOGNITION as to principal and interest. These Treasury securities are referred to as Appropriations received for CNCS’s Trust are recognized as revenue when “market-based,” since they mirror actual Treasury securities sold on the 

received in the Trust Fund. Trust appropriations do not expire with the open market. They consist of Treasury notes, bonds, bills, and one-day passage of time and are retained by CNCS in the Trust until used for certificates.

eligible education service award purposes.

Since they are expected to be held-to-maturity, CNCS’s investments Transfer in of Program Funds. Transfers in of program funds are are valued at cost and adjusted for the amortization of premiums and recognized as revenue when funds are transferred from subtitle C discounts. The premiums and discounts are recognized as adjustments to pursuant to 42 USC 1260. interest income, using the effective interest method. Interest receivable 

represents amounts earned, but not received on investments held at Interest on Investments. Interest income is recognized when earned. 

year-end. Prepaid interest is the amount of interest earned on a security Treasury notes and bonds pay interest semi-annually, based on the stated 

since the date of its last interest payment, up to the date the security rate of interest. Interest on Treasury bills is paid at maturity. Interest 

is purchased by CNCS. Such interest, if any, is included in the interest income is adjusted by amortization of premiums and discounts using the 

receivable balance at year-end. effective interest method.

H. CASH EQUIVALENTS Other Revenue. CNCS’s engagements in federal partnerships allow the 

For purposes of the statement of cash flows, CNCS considers all interest- Trust Fund to be reimbursed for Segal AmeriCorps Education Awards 

bearing Treasury securities guaranteed by the United States to be cash earned by members supporting activities of the partnership. The revenue 

equivalents. from these partnerships is recognized as Other revenue when earned.

I. ACCOUNTS RECEIVABLE N. INCOME TAXES

Accounts receivable represents amounts due to CNCS primarily related As a federal entity, CNCS is exempt from all income taxes imposed by 

to grantee audit resolution determinations. An allowance for doubtful any governing body, Federal, State, commonwealth, local, or foreign 

accounts is established for reporting purposes based on past experience. government.
Other Information | PART IV 99

The Corporation for National and Community Service

O. USE OF ESTIMATES P. COMPARATIVE DATA

The preparation of financial statements in accordance with GAAP The National Trust Fund financial statements provide comparative 

requires CNCS to make estimates and assumptions about future information for FY 2014 and 2013. 

events. These estimates and assumptions affect the amounts reported Q. CONCENTRATION OF RISKS inCNCS’s financial statements and accompanying notes. CNCS evaluates Congress annually considers whether to fund CNCS’s program and its estimates and assumptions on an ongoing basis using historical operational activities. Should Congress opt not to enact appropriations to experience and other factors that it believes to be reasonable under fund them, CNCS would be unable to continue operations of the National the circumstances. Adjustments to estimates and assumptions are Service Trust Fund once funds are exhausted for their intended purpose. made when facts and circumstances warrant. As future events and 

Corporation management believes the risk of such an occurrence is their effects cannot be determined with certainty, actual results could 

remote. differ from the estimates used in preparing the accompanying financial 

statements. Significant estimates and assumptions are required as part 

of determining the liability for service awards, grants payable, and grant 

advances.
Other Information | PART IV 100

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury

U.S. Government cash is accounted for on an overall consolidated basis by the National Service Trust may be expended for the purpose of providing 

the U.S. Department of Treasury. The Fund Balance with Treasury line on an education award or student loan interest forbearance payment and 

the Statement of Financial Position consists of Trust Funds of $6.6 million are made directly to a qualified institution (college, university, or other 

in FY 2014 and $611 thousand in FY 2013 that are considered restricted. approved educational institution, or a lending institution holding an 

existing student loan) as designated by the participant. The National Trust funds are accounts designated by law for receipts earmarked for Service Trust also pays awards under the President’s Freedom Scholarship, specific purposes and for the expenditure of these receipts. Funds from Summer of Service, and Silver Scholar programs.

Unexpended Balances as of September 30, 2014 (dollars in thousands)

Type Restricted Total

FBWT $ 6,606 $ 6,606

Investments and Related Receivables 717,973 717,973 

Total $ 724,579 $ 724,579 

Status of Unexpended Balances as of September 30, 2014 (dollars in thousands)

Type Restricted Total

Unobligated:

Available $ 51,042 $ 51,042

Unavailable 50,197 50,197

Obligated not yet Disbursed 623,340 623,340

Total $ 724,579 $ 724,579

Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Restricted Total

FBWT $ 611 $ 611

Investments and Related Receivables 693,165 693,165

Total $ 693,776 $ 693,776
Other Information | PART IV 101

The Corporation for National and Community Service

Status of Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Restricted Total

Unobligated:

Available $ 51,448 $ 51,448

Unavailable 50,197 50,197

Obligated not yet Disbursed 592,131 592,131

Total $ 693,776 $ 693,776

NOTE 3—National Service Trust Investments and Related Receivables

The composition of National Service Trust Investments and Related receivables at September 30 is as follows:

Investments and Related Receivables as of September 30 (dollars in thousands)

2014 2013

Investments, Carrying Value $ 717,304 $ 692,243 

Interest Receivable 669 922

Total $ 717,973 $ 693,165

Amortized Cost and Fair Value of Investment Securities as of September 30, 2014 (dollars in thousands)

Unrealized Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 459,781 $ 596 $ 460,377 

Bills 257,523 37 257,560 

Total $ 717,304 $ 633 $ 717,937 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2013 (dollars in thousands)

 Unrealized 

Gains/(Losses) 

 Securities Amortized Cost Fair Value

Notes $ 512,220 $ 1,560 $ 513,780 

Bills 180,023 11 180,034 

Total $ 692,243 $ 1,571 $ 693,814 
Other Information | PART IV 102

The Corporation for National and Community Service

At September 30, 2014, the notes held at year-end had an interest rate Since fiscal 2003, CNCS has set aside in reserve a portion of the funds 

range of 0.125 percent to 4.25 percent. The bills held at year-end had an in the National Service Trust for use in the event that its estimates used 

interest rate range of 0.250 percent to 0.625 percent. The par values of to calculate obligational amounts for education awards prove to be too 

these notes range from $18 million to $148.3 million. The fair value of the low. This reserve was originally required by the Strengthen AmeriCorps 

bills and notes is based on bid and ask prices quoted by the Treasury as Program Act, and is now required by section 149(b) of the National and 

of September 30, 2014 and 2013. Community Service Act (42 U.S.C. 12606(b)). As of September 30, 2014, 

$50.2 million of CNCS’s investment account has been set aside for this 

reserve.

NOTE 3—Trust Investments and Related Receivables—Continued

Investments held at September 30 mature according to the following schedule:

Maturation of Securities Held as of September 30 (dollars in thousands)

2014 2013

Held-to-Maturity Securities 

Amortized

Cost 

 

Fair Value 

Amortized

Cost Fair Value

Due in 1 year or less $ 537,761 $ 538,417 $ 441,185 $ 441,710 

Due after 1 year up to 5 years 179,543 179,520 251,058 252,104

Total $ 717,304 $ 717,937 $ 692,243 $ 693,814

NOTE 4 – Accounts Receivables, Net

Accounts Receivable as of September 30 (dollars in thousands)

Trust Fund Total

2014

Accounts receivable $ 274 $ 274 

Less: allowance for loss on receivables (45) (45)

Accounts Receivable, Net $ 229 $ 229 

2013

Accounts receivable $ 281 $ 281 

Less: allowance for loss on receivables (47) (47)

Accounts Receivable, Net $ 234 $ 234
Other Information | PART IV 103

The Corporation for National and Community Service

NOTE 5—Trust Service Award Liability Individuals who successfully complete terms of service in AmeriCorps 

GAAP requires the recording of a liability, which is a point in time programs earn education awards, which can be used to make payments 

estimate, for the unpaid earned and expected-to-be-earned education on qualified student loans or for educational expenses at qualified 

award and interest forbearance costs that are likely to be paid. GAAP educational institutions. The awards, which are available to use for a 

estimates are for members who have already completed at least 15 period of up to seven years after the benefit has been earned, are paid 

percent of the minimum service requirement and who, therefore, have from the National Service Trust. The National Service Trust also pays 

served enough hours to qualify for at least a partial education award. forbearance interest on qualified student loans during the period members 

perform community service, as well as awards under the Presidential 

The estimate of the Service Award Liability under GAAP includes factors Freedom Scholarship Program. The award liability components related to 

that take into account the effect of members who enroll but do not earn education awards and interest forbearance have been adjusted, based 

an award and members who earn an award but do not use it within the on historical experience, to reflect the fact that some eligible participants 

period of availability. CNCS estimates that up to 87 percent of members may not use these benefits. The Service Award was composed of the 

earning an award will eventually use it. following as of September 30:

Service Award Liability as of September 30 (dollars in thousands)

2014 2013

Education awards $ 2,469,053 $ 2,301,708

Interest forbearance 89,677 79,604 

President’s Freedom Scholarship Program 22,527 22,527

Total estimated service award liability 2,581,257 2,403,839 

Less: cumulative awards paid 2,127,126 1,939,565 

Total $ 454,131 $ 464,274 

Since the Corporation’s inception in 1994, AmeriCorps members have discontinued in FY 2007; however, because students have up to seven 

earned over $2.9 billion in education awards. The Corporation has made years to use the scholarship, some payments will continue to be made 

$2.0 billion in payments to educational institutions and student loan through 2014. As of October 1, 2009, the National Service Trust is also 

holders on these awards. In addition, the Corporation has made $82.2 available to pay Summer of Service and Silver Scholar educational awards. 

million in interest forbearance payments since the program’s inception. However, the Silver Scholar program was not funded and no current 

Approximately $300.84 million in education awards earned had expired liability was accrued for those educational awards. The Summer of Service 

without being used as of September 30, 2014. The Trust obligation program was only funded in FY 2010.

formula has been adjusted to reflect these expired awards. Payments for 

President’s Freedom Scholarships have totaled $21.7 million. NOTE 6—Net Positions

Net position consists of cumulative results of operations. The cumulative 

The net Service Award Liability as of September 30, 2014 decreased result of operations for the Trust Fund was $270.7 million in FY 2014 and by approximately $10.1 million from the net Service Award Liability as $229.7 million in FY 2013, respectively.

of September 30, 2013. This change was largely due to new member 

enrollments related to FEMA Corps and an increase in the number of CNCS is required to report information regarding its financial position 

members still serving during the year. Past CNCS appropriations made according to three classes of net assets (net position): unrestricted, 

amounts from the National Service Trust available for $1,000 scholarships temporarily restricted, and permanently restricted. CNCS has no 

for high school students known as Presidential Freedom Scholarships. To permanently restricted assets. The financial of position of the Trust Fund 

fund each scholarship, a local community or corporate source matched in the amounts of $270.7 million in FY 2014 and $229.7 million in FY 2013 

the $500 portion of the scholarship provided by CNCS. The program was is temporarily restricted.
Other Information | PART IV 104

The Corporation for National and Community Service

NOTE 7—Appropriations Received by the National NOTE 8—Expenses

Service Trust Using an appropriate cost accounting methodology, CNCS’s expenses 

For FY 2014, the National Service Trust received $207.4 million under the have been allocated at the sub-program level among its major programs. 

Consolidated Appropriations Act, 2014 (Public Law 113-76). For FY 2013, Costs for each sub-program are reported on separately:

the National Service Trust received $200.7 million under the Consolidated 

The National Service Award Expense component consists of CNCS’s and Further Continuing Appropriations Act, 2013 (Public Law 113-6). The estimated expense for education awards, based on the increase in its acts also authorized CNCS to transfer additional amounts from subtitle 

service award liability during the year and interest forbearance costs on C program funds to the National Service Trust to support the activities of qualified student loans during the period members perform community national service participants. CNCS transferred $5.1 million and $22.8 service. No indirect costs have been allocated to the National Service million to the Trust under this provision in FY 2014 and 2013, respectively.

Award expense component.

Expenses by Sub-Program for the Period Ended September 30, 2014 (dollars in thousands)

 AmeriCorps

Type State/National NCCC VISTA Total

Service award expense 155,001 3,766 18,640 177,407 

Total Expenses $ 155,001 $ 3,766 $ 18,640 $ 177,407

Expenses by Sub-Program for the Period Ended September 30, 2013 (dollars in thousands)

 AmeriCorps

Type State/National NCCC VISTA Total

Service award expense 171,188 8,484 19,896 199,568 

Total Expenses $ 171,188 $ 8,484 $ 19,896 $ 199,568

NOTE 9—Subsequent Events NOTE 11—Apportionment Categories of Incurred 

CNCS has evaluated subsequent events through November 14, 2014, Obligations

which is the date these financial statements were available to be issued. An apportionment is a distribution by OMB of amounts available for 

As a consequence of its evaluation, CNCS has determined that no obligation. OMB apportions Trust funds on an annual basis. Obligations 

subsequent events need to be recognized or disclosed. incurred in the Trust Fund during FY 2014 and 2013 were $623.3 and 

$592.1 million, respectively.

NOTE 10—Undelivered Orders at Fiscal Year-End

Trust Fund undelivered orders at September 30, 2014 and 2013 were 

$169.2 and $127.9 million, respectively.
Other Information | PART IV 105

The Corporation for National and Community Service

Other Information

Table 3 shows the most significant factors used to calculate Trust awarded. For example, a grantee may receive a grant in FY 2013 but not 

obligations on a historical basis. It is important to note that Program Year fill all positions until FY 2014. All positions related to this grant would be 

refers to positions awarded with a particular fiscal year’s grant funds. considered Program Year 2013 positions, irrespective of the year in which 

Positions are often filled in time periods after the year in which they are they are filled.

Table 3. Factors Affecting the National Service Trust Fund

Program Year

2010 2011 2012 2013 2014

Member enrollments in the Trust 88,362 79,199 74,525 69,763 37,310

Percent of members who earned an education award 83.6% 84.6% 85.16% 85.4% 68.0%

Percent of earned education awards used 69.6% 62.4% 50.5% 25.7% 15.8%

Weighted average yield to maturity for investments 1.3% 1.25% 1.25% 1.25% 1.25%

Breakout of enrollment by term type:

Full-time 43% 45% 48% 52% 81%

Part-time 13% 13% 13% 12% 7%

Reduced Part-time 44% 42% 39% 36% 12%

The Program Year data used throughout these tables reflect all enrollments the dollar amount of education awards used divided by the total amount 

recorded through the reporting period. Prior year enrollment numbers earned for the Program Year to date. Term type is based on Program Year 

may change slightly from time to time due to corrections or late reporting enrollments to date. The enrollment and award usage data used to compute 

by grantees. The percentage of members earning an award in Table 3 is these factors can be found in Table 6, at the end of this report.

calculated by taking the number of members earning an award divided by Tables 4 and 5 present information on the budgetary resources and the total members enrolled, net of members still earning. For example, in obligations of the Trust, including the Trust Reserve. The National and Program Year 2013 there were 69,763 members enrolled in the Trust, of Community Service Act of 1990 (NCSA), as amended by the Edward M. which 12,443 are reported as still earning an award and 48,926 as having Kennedy Serve America Act (PL 111- 13), establishes the specific criteria earned an award. Therefore the percentage of members who earned an for estimating and recording obligations in the Trust. Accordingly, CNCS education award is calculated by dividing the number of education awards records Trust obligations at the time it awards AmeriCorps State and earned (48,926) by the number of enrolled members who are no longer National grants or at the time AmeriCorps VISTA and NCCC members begin earning an award [69,763 – 12,443 = 57,320]. Thus the percentage of their terms of service. members who earned an award is 48,926/57,320 or 85.36 percent. The 

percentage of earned education awards used is calculated by taking 
Other Information | PART IV 106

The Corporation for National and Community Service

Table 4. Corporation for National and Community Service 

National Service Trust Resources Available for Use 

for the Period Ended September 30, 2014 (dollars in thousands)

Resources Recovery Act Trust Other Trust FEMA Corps General Fund Consolidated

Funds Available at October 1 $ 1,882 $ 139 $ 886 $ 37,325 $ 40,232

Resources Available for Use

Fiscal Year Appropriation Less Interest Collected - (83) 3,423 212,496 215,836

Less Unapportioned - - - (473) (473)

Deobligation Prior Year Positions (net) - - - 6,391 6,391

Collection of Audit Receivables - - - 79 79

Less: Additions to Trust Reserve - - - - -

Total Resources Available for Use 1,882 56 4,309 255,818 262,065

Resources Used

Education Awards - (50) (4,077) (201,460) (205,587)

Interest Forbearance - (2) (147) (7,977) (8,126)

Total Resources Used - (52) (4,224) (209,437) (213,713)

Net Change in Commitments

Education Awards - - - (621) (621)

Interest Forbearance - - - (90) (90)

Net Change in Commitments - - - (711) (711)

Resources Available $ 1,882 $ 4 $ 85 $ 45,670 $ 47,641
Other Information | PART IV 107

The Corporation for National and Community Service

In accordance with the National and Community Service Act of 1990 value of money to determine the obligation. Obligations are periodically 

and Sec. 149. (42 U.S.C. 12606), the Schedules of Budgetary Activity adjusted to reflect current earning and usage projections.

and Trust Obligations are used to specify amounts deposited to the Trust A portion of the funds in the Trust is held in reserve and are for use in the and present the amounts recorded as an obligation. The amounts are event that the estimates used to calculate obligations differ from actual based on an estimate of the net present value of the education benefit results. The reserve currently totals $50.2 million ($46.7 million for the discounted for the estimated enrollment, earning and usage rate, and the General Fund and $3.5 million for the Recovery Act Fund). To date, no time value of money. For FY 2014, these factors are the full value of the reserve funds have been used. Segal AmeriCorps Education Award, a 100 percent enrollment rate (which 

allows for refills), an average earning rate of 87 percent (which ranges FEMA Corps is a new unit of AmeriCorps’ National Civilian Community 

from 77 to 86 percent depending on term type), and an average usage Corps (NCCC) whose members will be devoted solely to FEMA disaster 

rate of 87 percent. Under the Kennedy Serve America Act, awards earned response and recovery efforts. The five-year agreement provides for a 

by members over age 55 can be transferred to an eligible beneficiary. full service corps which will compliment and support of FEMA’s current 

Therefore, for budgetary purposes we are projecting that all transferable disaster workforce.

awards will eventually be used. For program years 2002 and prior, CNCS 

uses the actual amounts earned, adjusted for amounts used and the time 

Table 5. Corporation for National and Community Service 

National Service Trust Schedule of Trust Obligations 

as of September 30, 2014 (dollars in thousands)

Recovery Act Trust Other FEMA Corps General Fund Consolidated

Assets

Fund Balance with Treasury $ 146 $ 56 $ 516 $ 5,888 $ 6,606

Investments, Net 11,000 - 8,502 697,802 717,304

Interest Receivable - - - 669 669

Accounts Receivable - - - 229 229

Subtotal 11,146 56 9,018 704,588 724,808 

Less:

Cumulative Trust Reserve (3,500) - - (46,697) (50,197)

Receivables Not Available for Obligation - - (2) (2,444) (2,446)

Unapportioned - - - (473) (473)

Total Resources 7,646 56 9,016 654,974 671,692

Unpaid Obligations

Education Awards (5,657) (50) (8,768) (594,213) (608,688)

Interest Forbearance (107) (2) (163) (13,496) (13,768)

President’s Freedom Scholarships - - - (884) (884)

Total Unpaid Obligations (5,764) (52) (8,931) (608,593) (623,340)

Commitments 

Education Awards - - - (621) (621)

Interest Forbearance - - - (90) (90)

Total Commitments - - - (711) (711)

Resources Available $ 1,882 $ 4 $ 85 $ 45,670 $ 47,641
Other Information | PART IV 108

The Corporation for National and Community Service

Enrollment Activity

Table 6 presents cumulative data to date on Trust enrollments, earned and used education awards for Program Years 1994 through 2013, and Recovery 

Act positions.

Table 6. Trust Enrollment Activity—Program Years 1994 through 2014

Pr

 

Type 

Members 

Enrolled 

Members

Earning or 

Not Exited 

Earned an

Award Did Not Earn Amount Earned Amount Used

1994 Full-time 281,278 0 218,093 63,185 $1,000,486,719 $ 796,843,132

through Part-time 123,238 1 79,501 43,736 $ 180,426,576 $ 128,586,598

2005 Reduced Part-time 119,726 0 93,618 26,108 $ 102,349,573 $ 79,172,654

Total 524,242 1 391,212 133,029 $1,283,262,868 $1,004,602,384

Full-time 30,389 0 25,167 5,222 $ 116,957,710 $ 95,307,655 

2006 Part-time 11,619 0 8,199 3,420 $ 18,935,740 $ 13,417,384 

Reduced Part-time 27,255 1 21,001 6,253 $ 23,833,568 $ 18,059,881 

Total 69,263 1 54,367 14,895 $ 159,727,018 $ 126,784,920

Full-time 30,905 0 26,185 4,720 $ 121,980,383 $ 99,098,744

2007 Part-time 10,137 0 7,366 2,771 $ 17,027,260 $ 12,082,338

Reduced Part-time 26,943 0 21,366 5,577 $ 24,309,301 $ 18,072,648

Total 67,985 0 54,917 13,068 $ 163,316,944 $ 129,253,730

Full-time 32,365 0 28,183 4,182 $ 131,710,067 $ 104,741,260

2008 Part-time 10,679 1 8,111 2,567 $ 18,842,498 $ 13,114,895

Reduced Part-time 27,007 1 21,877 5,129 $ 24,992,292 $ 18,066,244

Total 70,051 2 58,171 11,878 $ 175,544,857 $ 135,922,399

Full-time 31,037 2 27,327 3,708 $ 127,707,815 $ 98,352,984 

2009 Part-time 9,878 3 7,595 2,280 $ 17,636,065 $ 11,945,008

Reduced Part-time 28,867 3 23,306 5,558 $ 26,486,979 $ 19,026,510 

Total 69,782 8 58,228 11,546 $ 171,830,859 $ 129,324,502

Full-time 37,723 7 33,288 4,428 $ 175,579,540 $ 125,439,528

2010 Part-time 11,426 8 8,780 2,638 $ 22,947,482 $ 14,044,216

Reduced Part-time 39,213 15 31,751 7,447 $ 38,770,948 $ 25,689,431 

Total 88,362 30 73,819 14,513 $ 237,297,970 $ 165,173,175

Full-time 35,764 12 31,457 4,295 $ 170,157,676 $ 108,324,165 

2011 Part-time 10,350 35 8,365 1,950 $ 22,479,164 $ 11,819,683

Reduced Part-time 33,085 31 27,112 5,942 $ 35,386,938 $ 22,234,173 

Total 79,199 78 66,934 12,187 $ 228,023,778 $ 142,378,021

Recovery Full-time 7,908 0 6,655 1,253 $ 31,022,831 $ 22,865,716 

Act Part-time 1,662 0 1,221 441 $ 2,818,344 $ 1,773,061 

Reduced Part-time 4,293 0 3,592 701 $ 4,186,393 $ 2,881,622

Total 13,863 0 11,468 2,395 $ 38,027,568 $ 27,520,399
Other Information | PART IV 109

The Corporation for National and Community Service

Table 6. Trust Enrollment Activity—Program Years 1994 through 2014 (continued)

 

Program 

Year Type 

Members 

Members

Earning or 

Not Exited 

Earned an

Award Did Not Earn Amount Earned Amount Used

Full-time 35,803 130 31,461 4,212 $ 168,737,278 $ 86,844,508 

2012 Part-time 9,579 228 7,628 1,723 $ 20,632,684 $ 8,231,950

Reduced Part-time 29,143 389 23,737 5,017 $ 31,435,918 $ 16,509,681 

Total 74,525 747 62,826 10,952 $ 220,805,880 $ 111,586,139

Full-time 36,001 3,172 28,525 4,304 $ 153,564,692 $ 40,391,882

2013 Part-time 8,711 2,835 4,438 1,438 $ 11,959,535 $ 1,795,968

Reduced Part-time 25,051 6,436 15,963 2,652 $ 20,946,364 $ 5,777,890 

Total 69,763 12,443 48,926 8,394 $ 186,470,591 $ 47,965,740

Full-time 30,136 28,732 538 866 $ 2,847,065 $ 311,996 

2014 Part-time 2,516 2,486 0 30 $ 0 $ 0

Reduced Part-time 4,658 3,014 1,556 88 $ 1,858,115 $ 429,655

Total 37,310 34,232 2,094 984 $ 4,705,180 $ 741,651

Cumulative To Date 1,164,345 47,542 882,962 233,841 $2,869,013,513 $2,021,253,060
Other Information | PART IV 110

The Corporation for National and Community Service

Improper Payments In FY 2013, CNCS conducted a risk assessment of its largest grant 

program, AmeriCorps State and National cost-reimbursement grants, 

The Improper Payments Information Act of 2002 (IPIA), as amended by and determined that it was susceptible to significant levels of improper 

the Improper Payments Elimination and Recovery Act (IPERA) of 2010, payments. In FY 2014, CNCS designed and carried out a statistical 

requires all federal agencies to: sampling approach for the AmeriCorps State and National grant 

• Periodically review their programs and activities and identify program, as described below. Concerning its remaining grant programs 

programs and activities that may be susceptible to significant that exceed $20 million in annual awards,11 CNCS used the same 

improper payments sampling approach to make improper payment risk assessments in 

• Take certain specific actions when programs and activities are FY 2014.12 As described in its FY 2013 Agency Financial Report, CNCS 

identified as susceptible to significant improper payments determined that in order to meet the overall purposes of improper 

payment testing, it would assess its grant programs by applying the • Annually report information on their improper payments monitoring 

criteria for disallowing costs in federal grants. and minimization efforts

 Based on its FY 2013 and 2014 assessments, CNCS has concluded that Office of Management and Budget (OMB) Circular A-123, Appendix C, 

costs are charged in overwhelming conformance with government-wide Requirements for Effective Measurement and Remediation of Improper 

cost principles by grantees within its AmeriCorps State and National, Payments, provides guidance to agencies on how to comply with IPIA, as 

Foster Grand Parents, Senior Companions, RSVP, and Social Innovation amended. 

Fund programs. In conducting its improper payment assessments, 

I. R isk Assessment. Briefly describe the risk assessment(s) performed CNCS assessed transactions related to a unique statutory requirement 

(including the risk factors examined, if appropriate) subsequent to imposing a criminal history check (CHC) on CNCS grantees (see section 

completing a full program inventory. List the risk-susceptible programs 189D to the National and Community Service Act of 1990) to protect 

(i.e., programs that have a significant risk of improper payments based the individuals who are served by CNCS grant funded programs. This 

on statutory thresholds) identified by the agency risk assessments or provision specifies that a person who is registered or required to be 

required by OMB to be included (OMB may determine, on a case-by- registered as a sex offender or who was convicted of murder may 

case basis, that certain programs that do not meet the thresholds not work or serve in a position funded in anyway by CNCS (a covered 

requirements may still be subject to the annual reporting requirements). position).13 It also states that if an individual refuses to consent to a 

Any programs that had been previously identified in the former Section CHC or makes a false statement in connection with a CHC, that person 

57 of OMB Circular No. A11 shall continue to report improper payment is ineligible to serve. Payments related to ineligible individuals are 

estimates, unless OMB has granted relief from reporting requirements improper under IPERA. Historically, CNCS has treated certain types of 

(as discussed in OMB Circular No. A-123, Appendix C). Highlight any noncompliance with regulations related to how grantees complete and 

changes to the risk assessment methodology or results that occurred document the CHC of individuals in covered positions as a basis to 

since the last report. recover certain costs associated with a grant. These grant costs have 

been disallowed even though the individuals involved had not been CNCS conducted its assessments of the risks of improper payments registered or required to be registered on a sex offender registry or within its programs using a multi-step approach that began with convicted of murder or were otherwise eligible to serve. These disallowed an examination of the levels of payments made 1) by CNCS directly costs, however, may not be improper payments under IPERA, because to its employees, non-federal vendors, and to individuals serving in the payments were made to individuals who were in fact eligible to serve the Volunteers in Service to America (VISTA) and National Civilian in covered positions. CNCS has not made a determination as to whether Community Corps (NCCC) programs, and 2) by recipients of CNCS’s disallowed costs recovered due to noncompliance with its regulations grants and cooperative agreements in each of its grant programs (as related to how grantees complete and document their criminal history described in the Catalog of Federal Domestic Assistance). checks are improper payments under IPERA. 

11 These include the Foster Grandparents Program, the RSVP Program, the Senior Companion Program, and the Social Innovation Fund. 

12 CNCS had initially decided that it would conduct full statistical analyses of these programs. CNCS used the initial partial results of the full samples in order to make initial risk assessments in FY 

2014. 

13 The statute uses the term “covered” position to include any position “. . . in which the individuals receive a living allowance, stipend, national service educational award, or salary through a 

program receiving assistance under the national service laws, shall, subject to regulations and requirements established by the Corporation, conduct criminal history checks for such individuals.” 42 

USC .12645g(a). CNCS refers to these positions as covered positions.
Other Information | PART IV 111

The Corporation for National and Community Service

CNCS’s analysis of the results of its FY 2013 and 2014 improper payment sampling process that have occurred since the last report.

testing show –conclusively – that the inclusion of disallowed costs that In FY 2014, CNCS developed a systematic methodology by which would be recovered due to noncompliance with CHC regulations (rather it would test a randomly selected sample of payments made by than the actual results of the CHCs) significantly affects CNCS’s IPERA AmeriCorps State and National grantees to determine whether they results. It is only when potential recoveries due to CHC procedural and were improperly charged to CNCS grant funds, and therefore would be documentation requirements are counted as improper payments that considered improper payments. Generally, Federal grantees report the any of the CNCS’s programs appear to be at risk of having significant 

costs they have charged to their grants in summary Federal Financial levels of improper payments. CNCS views this result to be an unintended Reports (FFRs) filed once every six months. Because these reports anomaly of its efforts to protect vulnerable populations served by CNCS contain only summary amounts (including the amount of Federal funds programs. Recovering costs associated with CHC noncompliance helps expended), CNCS does not have a full universe of actual payments achieve the programmatic aspects of those protections, but treating those by its grantees from which to draw a random sample. However, the recoveries as improper payments obscures the actual fiscal and program data provided on the FFRs does give CNCS an appropriate universe of management performance of its grantees, and therefore misrepresents the total dollars charged by its grantees to CNCS funding. Therefore, CNCS’s fiscal oversight and monitoring of its grantees. Notwithstanding CNCS’s improper payment statistical sampling process involved this unintended anomaly, based upon CNCS’s practices at the time and making random selections of dollar values within total amounts the results of its FY 2014 improper payment testing, CNCS has identified 

reported by its grantees on FFRs, and then requesting detailed listings the Foster Grandparents Program and RSVP as susceptible to significant of the transactions that were summarized on the selected FFRs. This levels of improper payments only if transactions related to noncompliance allowed CNCS to trace the randomly selected dollar amounts to specific with CHC procedural and documentation requirements are included. transactions recorded in the grantee’s accounting systems. Once those However, if these CHC-related disallowed costs are not included, none of 

transactions were identified, CNCS directed the grantee (or subgrantee) CNCS’s grant programs are at risk of having significant levels of improper 

to provide documentation to support why and how that transaction payments. Moreover, the CHC-related disallowed costs included in the was charged to the CNCS grant and then evaluated the transaction to estimate of improper payments for the AmeriCorps program (reported determine whether it was appropriately charged. The results of CNCS’s below) is entirely comprised of noncompliance with CHCs for grantee evaluation of the individual transactions were then extrapolated to the staff, and not AmeriCorps members. Grantee staff are in covered universe of all CNCS funding reported on grantees’ FFRs to estimate positions, but generally are not in contact with vulnerable populations. the amount of improper payments. 

 Relying upon its annual review of internal controls under Federal III. Corrective Actions. Any agency that has programs or activities that Managers’ Financial Integrity Act, the results of the annual independent are susceptible to significant improper payments shall describe the audit of CNCS’s financial statements under the Government Corporation corrective action plans for: Control Act, and other sources CNCS has determined that its payments 

to employees, non-federal vendors and VISTA and NCCC participants a. R educing the estimated improper payment rate and amount for 

are not at risk having significant levels of improper payments.14

each type of root cause identified. Agencies shall report root causes 

information (including error rate and error amount) based on the II. Statistical Sampling. Any agency that has programs or activities that following three categories: Administrative and Documentation are susceptible to significant improper payments shall briefly describe 

errors; Authentication and Medical Necessity errors; and the statistical sampling process conducted to estimate the improper Verification errors.15 This discussion must include the corrective payment rate for each program identified with a significant risk of action(s), planned or taken, most likely to significantly reduce improper payments. Please highlight any changes to the statistical 

 

 

14 Under the IPIA, as amended, Federal government programs which have gross annual improper payments (i.e., the total amount of overpayments and underpayments) in the program exceeding (1) 

both 1.5 percent of program outlays and $10,000,000 of all program or activity payments made during the fiscal year reported or (2) $100,000,000 (regardless of the improper payment percentage of 

total program outlays) have significant levels of improper payments.

15 Administrative and Documentation errors are errors caused by the absence of the supporting documentation necessary to verify the accuracy of the claim; or inputting, classifying, or processing 

applications or payments incorrectly by a relevant Federal agency, State agency, or third party who is not the beneficiary. Authentication and Medical Necessity errors are errors caused by being 

unable to authenticate eligibility criteria through third-party databases or other resources because no databases or other resources exist, or providing a service that was not medically necessary 

given the patient’s condition. Verification errors are errors caused by the failure or inability to verify recipient information including earnings, income, assets, or work status even though verifying 

information does exist in third-party databases or other resources, or they are errors due to beneficiaries failing to report correct information to an agency.
Other Information | PART IV 112

The Corporation for National and Community Service

future improper payments due to each type of error an agency IV. Improper Payment Reporting.

identifies, the planned or actual completion date of these actions, 

 a. T he table that follows (Table 1) is required for each agency that has and the results of the actions taken to address these root causes. 

programs or activities that are susceptible to significant improper If efforts are ongoing, it is appropriate to include that information payments. Agencies must include the following information: in this section, and to highlight current efforts, including key 

milestones. Agencies may also report root cause information based i. All risk-susceptible programs must be listed in this table 

on additional categories, or sub-categories of the three categories whether or not an error measurement is being reported;

listed above, if available. ii. Where no measurement is provided, the agency should indicate 

the date by which a measurement is expected;

 b. Grant-making agencies with risk-susceptible grant programs shall iii. If the Current Year (CY) is the baseline measurement year, and briefly discuss what the agency has accomplished in the area of there is no Previous Year (PY) information to report, indicate by funds stewardship past the primary recipient. Discussion shall either note or by “n/a” in the PY column; include the status of projects and results of any reviews. iv. I f any of the dollar amount(s) included in the estimate 

Independent of its FY 2013 and 2014 improper payment testing, CNCS correspond to newly established measurement components in 

staff, CNCS grantees and OIG auditors have encountered grantee addition to previously established measurement components, 

confusion and non-compliance related to CNCS’s procedural and separate the two amounts to the extent possible;

documentation requirements for CHCs during monitoring activities and v. Agencies are expected to report on CY activity, and if not 

audits. To bring its grantees into compliance with the full scope of the feasible, then PY activity is acceptable if approved by OMB. 

CHC requirements, CNCS has instituted a National Service Criminal Agencies should include future year outlay and improper 

History Check Assessment Period that began in mid-October 2014 and payment estimates for CY+1, +2 and +3 (future year outlay 

will run through November 30, 2014. During this period, all CNCS grantees estimates should match the outlay estimates for those years as 

and sub-grantees must review the files of all individuals currently serving reported in the most recent President’s Budget).

in covered positions to identify any non-compliance with CNCS’s CHC 

 b. Agencies should include the gross estimate of the annual amount requirements. Program staff are also required to undergo CHC compliance 

of improper payments (i.e., overpayments plus underpayments) training during the assessment period. 

and should list the total overpayments and underpayments that 

This CHC assessment period is a unique opportunity for grantees to make up the current year amount. In addition, agencies are 

conduct a thorough review of their records and compliance policies and allowed to calculate and report a second estimate that is a net 

correct instances of CHC non-compliance. This comprehensive effort will total of both over and under payments (i.e., overpayments minus 

address the root causes of noncompliance with CHC requirements within underpayments). The net estimate is an additional option only, and 

each grant program. cannot be used as a substitute for the gross estimate. Agencies 

may include the net estimate in Table 1 or in a separate table. Comprehensive information on the National Service Criminal History Check 

Assessment Period can found at https://www.nationalserviceresources. 

gov/national-service-criminal-history-check-resources under the heading 

“NSCHC Assessment Reference Materials.” 
Financial Statements Other Information | PART IV | PART II 113

Table 1. Improper Payment Reduction Outlook

(in thousands)

Program PY PY PY CY Outlays CY IP % CY CY CY CY+1 CY+1 CY+1 CY+2 CY+2 CY+2 CY+3 CY+3 CY+3

or Activity Outlays IP % IP $ IP $ Over 

payment $

Under 

payment $

Est. Outlays IP % IP $ Est. Outlays IP % IP $ Est. Outlays IP % IP $

AmeriCorps 

 State and National

$344,389 n/a n/a $303,511 4.98% $12,39216 $12,392 0 $325,600 2.70% $8,791 $325,593 2.50% $8,140 $325,593.00 2.25% $7,325.84 

Table 2. Payment Recapture Audit Reporting

Program or Activity Type of Amount 

Subject to 

Review for CY

Reporting

Actual Amount 

Reviewed 

and Reported 

(CY)

Amount 

Identified 

for Recovery 

(CY)

Amount 

Recovered (CY)

% of Amount 

Recovered 

out of Amount 

Identified 

(CY)

Amount Outstanding (CY)% of Amount 

Outstanding 

out of 

Amount 

Identified (CY)

Amount 

Determined Not 

to be 

Collectable 

(CY)

% of Amount 

Determined 

Not to be 

Collectable 

out of Amount 

Identified 

Amounts 

Identified 

for Recovery 

(PYs)

Amounts 

Recovered 

(PYs)

Cumulative 

Amounts 

Identified 

for Recovery 

(CY + PYs)

Cumulative 

Amounts 

Recovered 

(CY + PYs)

Cumulative 

Amounts 

Outstanding 

(CY+PYs)

Cumulative 

Amounts 

Determined Not 

to be 

Collectable 

(CY+PYs)

(CY)

AmeriCorps 

 State and National

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

16 This figure includes costs that potentially could be disallowed as a means of enforcing the procedural and documentation requirements of CNCS’s CHC regulations. As discussed above, those 

potential recoveries are not payments to ineligible individuals, and as a result are not improper payments. Excluding the CHC-related potential recoveries, the AmeriCorps program would have a 

current year improper payment rate of 2.26% and an estimated improper payment amount of $5.63 million.
Financial Statements | PART II 

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114
Other Information | PART IV 115

V. Recapture of Improper Payments Reporting. b. Complete the tables below (if any of this information is not available 

indicate by either note or by “n/a” in the relevant column or cell): If 

 a. An agency shall discuss payment recapture audit (or recovery an agency has a payment recapture audit program in place, then the auditing) efforts, if applicable. The discussion should describe: the agency is required to establish annual targets to drive their annual 

agency’s payment recapture audit program; the actions and methods performance. The targets shall be based on the rate of recovery. used by the agency to recoup overpayments; a justification of any Agencies are expected to report CY amounts and rates, as well as 

overpayments that have been determined not to be collectable; and recovery rate targets for three years (CY+1, +2 and +3), as follows: any conditions giving rise to improper payments and how those 

conditions are being resolved (e.g., the business process changes Not Applicable

and internal controls instituted and/or strengthened to prevent further c. I n addition, agencies shall report the following information on their occurrences). If the agency has excluded any programs or activities payment recapture audit programs, if applicable: from review under its payment recapture auditing program (including 

any programs or activities where the agency has determined a i. A n aging schedule of the amount of overpayments identified 

payment recapture audit program is not cost-effective), the agency through the payment recapture audit program that are 

should list those programs and activities excluded from the review, as outstanding (i.e., overpayments that have been identified but not 

well as the justification for doing so (i.e., a discussion of the analysis recovered). Typically, the aging of an overpayment begins at the 

conducted to determine that a payment recapture audit program time the overpayment is detected—please indicate with a note 

would not be cost- effective). Include in your discussion the dollar whenever that is not the case. For example: Not Applicable

amount of cumulative recoveries collected beginning with FY 2014. ii. A s ummary of how cumulative amounts recovered (CY + PYs) 

have been disposed of (if any of this information is not available 

 As discussed above, CNCS has initiated a National Service Criminal History indicate by either note or by “n/a” in the relevant column or cell). 

Check Assessment Period that will run through November 30, 2014. CNCS 

has advised its grantees and subgrantees that the Assessment Period is a Not Applicable

unique opportunity for them to conduct a thorough review of their records d. A s applicable, agencies should also report on improper payments and compliance policies and correct instances of non-compliance without identified and recovered through sources other than payment penalty. Any findings of noncompliance during this period will not result in recapture audits. For example, agencies could report on improper disallowed costs, with the following exceptions: payments identified through: statistical samples conducted under • If an individual refused to undergo the required CHC background IPIA; agency post-payment reviews or audits; Office of Inspector check (or self-certify, when applicable), General reviews; Single Audit reports; self-reported overpayments; 

 • If an individual gave a false statement when the program or reports from the public. Specific information on additional 

inquired about his or her criminal history, required reporting for contracts was included in Section 7 of OMB 

 • If a component of the CHC was incomplete or failed to clear and memorandum M-11¬ 04, issued in November 2010. Reporting this 

the individual was in fact registered or required to be registered information is required for FY 2011 reporting and beyond. Agencies 

on a state sex offender registry, or had been convicted of should use this chart to report this information. The information 

murder, and from Section 7 of OMB memorandum M-11-04 mentioned above 

 • If a program has not initiated any CHC background checks on may be included in the table or in narrative format below the table. 

at least one individual who is actively working or serving in a If previous year (PY) information is not available, indicate by either 

covered position as of the start date of the assessment period. note or by “n/a” in the relevant column or cell.

CNCS expects that as a result of the Assessment Period, its grantees Not Applicable

and subgrantees will address the root causes that are leading to CHC VI. Accountability. Any agency that has programs or activities that are noncompliance. As discussed above, CNCS’s improper payment testing susceptible to significant improper payments shall describe the steps conclusively shows that absent CHC procedural and documentation gaps the agency has taken and plans to take (including timeline) to ensure that historically have been treated as a basis for disallowed costs, CNCS that agency managers, accountable officers (including the agency would have no programs subject to improper payment reporting. CNCS head), programs, and States and localities (where appropriate) are expects that its improper payment testing in FY 2015 will validate this held accountable for reducing and recovering improper payments. conclusion. 

Specifically, they should be held accountable for meeting applicable 

 
Other Information | PART IV 116

The Corporation for National and Community Service

improper payments reduction targets and establishing and maintaining CNCS’s believes that its existing internal controls, human capital, and 

sufficient internal controls (including an appropriate control information systems are sufficient to ensure that its grantees and 

environment) that effectively prevents improper payments from being subgrantees will adequately complete and document CHCs. 

made, and promptly detects and recovers any improper payments that 

VIII. Barriers. Describe any statutory or regulatory barriers, which may are made.

limit the agencies’ corrective actions in reducing improper payments 

 A s discussed above, CNCS has initiated a National Service Criminal and actions taken by the agency to mitigate the barriers’ effects.

History Check Assessment Period that runs through November 30, 

Not applicable 2014. During this period all grantees and subgrantees must review 

the files of all individuals currently serving in covered positions that IX. Additional Comments. Discuss any additional comments, if any, on 

are not compliant with CNCS CHC requirements. In addition, grantee overall agency efforts, specific programs, best practices, or common 

and subgrantee staff are also required to undergo training in how to challenges identified, as a result of IPERA implementation.

conduct and document CHC checks. After the assessment period, 

CNCS will issue formal guidance related to the consequences for future As is suggested in OMB Circular A-123, Appendix A, CNCS will be examining 

non-compliance with its CHC requirements. That future guidance the use of the statistical model designed for improper payment testing 

will describe how grantees and subgrantees will be held accountable within the AmeriCorps State and National cost reimbursement grant 

for future CHC noncompliance, and will describe how CNCS’s staff programs as part of its ongoing internal controls efforts. Specifically, 

will be held accountable for monitoring grantee and subgrantee CHC CNCS is considering using a statistical sample of transactions charged to 

compliance. its grants as a component of an overall risk-based approach to monitoring 

its grant portfolio. Upon validation that this is a cost-effective approach, 

CNCS will further consider using a statistically based approach to VII. A gency information systems and other infrastructure. assessing grantee-maintained documentation that supports the granting of a. D escribe whether the agency has the internal controls, human Segal AmeriCorps Education Awards out of the National Service Trust. capital, and information systems and other infrastructure it needs to 

reduce improper payments to the levels the agency has targeted.

 b. I f the agency does not have such internal controls, human capital, 

and information systems and other infrastructure, describe 

the resources the agency requested in its most recent budget 

submission to Congress to establish and maintain the necessary 

internal controls, human capital, and information systems and other 

infrastructure.

 

 
Other Information | PART IV 117

The Corporation for National and Community Service

Freeze the Footprint

Consistent with Section 3 of the OMB Memorandum-12-12, Promoting 

Efficient Spending to Support Agency Operations and OMB Management 

Procedures Memorandum 2013-02, the “Freeze the Footprint” policy 

implementation guidance, CNCS is providing the following information:

Freeze the Footprint Baseline Comparison

FY 2012 

Baseline

FY 2013 Change

(FY 2012 

Baseline-2013)

Square Footage

(SF in 

Thousands)

communities

193.317 193 (.3)

Reporting on O&M Costs Owned and Direct Lease Building

FY 2012 

Reported Cost

FY 2013 Change

(FY 2012 

Baseline-2013)

Operation and 

Maintenance 

Costs 

($ in Millions)

$4.3 $4.8 $ .5

While CNCS experienced an overall decline in rental square footage (RSF)

between FY 2012 and FY 2013, additional costs were incurred related to 

renovation of facilities. CNCS headquarters currently has 111,159 rentable 

square foot of space with 99,395 usable square footage (USF) of space. 

CNCS has reduced its USF from 99,395 to 72,971.

CNCS’s headquarters lease expired October 2014. In accordance with 

the Executive Order of “Freeze the Footprint”, CNCS met with GSA to 

establish existing and future space requirements. The requirements 

ensure alignment with existing and future space needs and staffing 

levels. Plans include reducing offices, cubicles, and special space/

support areas, as well as promoting more teleworking, alternate work 

schedules, and hoteling as needed while still meeting the required 

utilization rate that is acceptable to OMB. It is understood that changes 

are necessary to consolidate organizations and correct current adjacency 

deficiencies. CNCS is incorporating a new furniture procurement to 

include adjustments to the furnishing standards. 

17 Freeze the Footprint Baseline Comparison is for space under GSA’s jurisdiction. CNCS holds Occupancy Agreements that are owned and leased through GSA (Field Offices & Headquarters).