Agency Financial Report 

Fiscal Year 2012

Purpose of 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’ website at http://www.

nationalservice.gov/about/role_impact/performance.asp as they are completed.

• This report, the Agency Financial Report (AFR), focuses on CNCS’ financial management and the results of the agency’s annual financial audit. 

It includes management’s assurance statement, CNCS’ 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’ FY 2014 

Congressional Budget Justification, which will be transmitted to Congress in February 2013. 

• The Performance Highlights Report summarizes key information from the AFR and APR. It will be available in February 2013.

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, the Improper Payments Information 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 to Serve

If you are interested in joining or learning more about CNCS programs, go to NationalService.gov. Under the “For Individuals” menu, click on “Join 

Now” 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 2012 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 above

1201 New York Avenue, NW Washington, DC 20525

202-606-5000 • TTY 202-606-3472 

NationalService.gov info@cns.gov
Table of Contents

I. Management’s Discussion and Analysis

Message from the Chief Executive Officer.

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

Organizational Structure.

Strategic Priorities.

CNCS Programs and Performance. 

Management Performance. 

Internal Controls, Audit Results, and Management Assurances. 

Analysis of Appropriations and Financial Condition. 

II. Financial Statements

Message from the Chief Financial Officer. 

Consolidated Financial Statements. 

III. Independent Auditor’s Report

Office of Inspector General (OIG) Transmittal Letter. 

Independent Auditor’s Report on Financial Statements. 

Independent Auditor’s Report on Compliance and Other Matters. 

Independent Auditor’s Report on Internal Control. 

Management’s Response. .

IV. Other Accompanying Information

Donations and Contributions. 

National Service Trust Fund Status Report. 

Improper Payments. 
Management’s Discussion & Analysis | PART I 1

The Corporation for National and Community Service

Management’s Discussion & Analysis

AmeriCorps members work with volunteers from Habitat for Humanity to build a house on the Martin Luther King, Jr. Day of Service.
Management’s Discussion & Analysis | PART I 2

The Corporation for National and Community Service

MESSAGE FROM THE CEO

I am pleased to present the Fiscal Year 2012 Agency Financial Report of the Corporation for National 

and Community Service (CNCS), a summary of our performance and financial condition in relation to 

our mission and goals. 

For nearly two decades, CNCS has invested in community solutions across the nation -- working 

hand in hand with local partners to improve lives, expand economic opportunity, and engage 

millions of Americans in solving problems in their communities.

Our national service programs tap the energy of our nation’s greatest resource – the American 

people – and focus it on pressing community problems. With our unique structure as a publicprivate partnership, CNCS programs benefit the recipients of service, those who serve, local 

communities, and our nation.

In Fiscal Year 2012 we continued our commitment to strong performance, focused investments, 

innovative partnerships, and management excellence. CNCS engaged millions of Americans in 

service, provided critical services to communities across the U.S., strengthened thousands of 

nonprofit and faith-based groups, forged cost-saving partnerships, increased efficiency and 

accountability, and continued our strong record of reliable fiscal stewardship.

Expanding Economic Opportunity

Through all our programs, CNCS seeks to expand economic opportunity. By helping more Americans graduate from high school, gain career skills, 

pursue higher education, and find work, national service provides immediate and long term benefits by expanding individual opportunity, building 

family stability, and creating more sustainable, resilient communities.

Whether providing job counseling to returning veterans, delivering independent living services to help seniors stay in their own homes, helping 

families rebuild after disasters, or tutoring and mentoring students in low-performing schools, national service programs expanded economic 

opportunity for millions of Americans in FY 2012. 

Driving Impact and Innovation

In FY 2012, we continued to implement a comprehensive five-year Strategic Plan guided by the bipartisan Edward M. Kennedy Serve America Act. Our 

plan recognizes that national service will have its greatest impact if we target resources on a core set of critical national problems and evaluate our

impact using standardized performance measures. 

To carry out the plan, we adopted a set of agency-wide priority measures which all of our programs are implementing through program guidance, 

grant competitions, and technical assistance. We are using competition to fund high quality, high value programs that achieve measurable results, 

and we are working to maximize this investment by emphasizing leverage and performance. 

Recognizing the need for new approaches to complex problems, we are fostering innovation through all of our programs. In FY 2012, we awarded 

the third year of grants through the Social Innovation Fund, leveraging private and non-federal funds to expand the impact of promising nonprofit 

programs serving low-income communities.
Management’s Discussion & Analysis | PART I 3

The Corporation for National and Community Service

Growing National Service and Volunteerism

The nation faces serious challenges, and governments at every level are facing increasing demands at a time of fiscal constraint. National service 

and volunteerism play a key role in filling this gap. We engage millions of citizens in high-impact service to meet local needs, and it multiplies the 

value of our investment by leveraging hundreds of millions of non-federal dollars and in-kind donations.

CNCS expanded our use of partnerships to engage Americans in service in FY 2012. We launched FEMA Corps, an innovative partnership to enhance 

the nation’s disaster response capabilities and achieve cost savings for the taxpayer. Through AmeriCorps VISTA, we launched the first-ever 

partnership with the National Guard Bureau to improve services to returning guardsmen and their families, and expanded a partnership with the U.S. 

Department of Agriculture to fight hunger.

We partnered with hundreds of nonprofits, schools, universities, and businesses to engage 780,000 Americans in the Martin Luther King Jr. Day 

of Service and September 11th National Day of Service and Remembrance. We worked with the business community to help enlist more than 200 

companies that have pledged an estimated $1.8 billion worth of skills-based services through the Billion + Change initiative. 

Managing for Results and Accountability

CNCS has a deep and ongoing commitment to ensuring the highest levels of accountability in our financial and program operations. I am pleased to 

report that CNCS maintained its record of strong fiscal stewardship by achieving an unqualified “clean” audit opinion for the 13th consecutive year. 

Our year-end budget close-out went as scheduled, and all accounts came in on budget.

Other FY 2012 management accomplishments include creating a new Office of Accountability and Oversight to coordinate accountability initiatives, 

beginning with implementation of competition in the Retired Senior Volunteer Program (RSVP), holding our first ever Senior Corps virtual conference, 

enhancing information technology security and reliability, and expanding leadership training. We have built an outstanding senior team with the 

vision and experience to lead the agency into a new era of results-oriented performance, and we have an extraordinary board of directors who 

represent some of the nation’s foremost leaders in nonprofit leadership and community service. America has always been at its best when citizens 

work together, joined in common purpose. A sense of shared responsibility is woven into the fabric of our nation. In this era of fiscal restraint, 

Americans remain eager to do their part.

Guided by the Serve America Act, supported by a strong leadership team and dedicated staff, CNCS is investing in community solutions, expanding 

opportunity, driving innovation and impact, and engaging more Americans to tackle community problems – building a better future for our citizens, 

communities, and nation. 

In Service,

Wendy Spencer

Chief Executive Officer
Management’s Discussion & Analysis | PART I 4

The Corporation for National and Community Service

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. 

Through AmeriCorps, VISTA, NCCC, Senior Corps, the Social Innovation 

Fund, National Days of Service, United We Serve, and other initiatives, 

CNCS and the network it supports annually engages millions of 

Americans in service to meet national and local needs. 

CNCS supports the American culture of citizenship, national service, 

and responsibility. We are a mechanism for change and champion the 

ideal that every American has skills and talents to give. As the nation’s 

largest grant maker in the area of service, CNCS promotes volunteering 

and civic engagement around the country and helps organizations build 

their capacity to engage volunteers effectively. Participants in CNCS 

programs provide assistance to their communities through nonprofits, 

K-12 schools, institutions of higher learning, faith-based and other 

community organizations, and local and state governments.

For nearly two decades, CNCS has invested in community solutions 

across the nation – working hand in hand with local partners to improve 

lives, expand economic opportunity, and engage millions of Americans in 

solving problems in their communities.

With its unique structure as a public-private partnership and its 

model of engaging citizens and leveraging outside resources, national 

service benefits the recipients of service, those who serve, and local 

communities and our nation.

CNCS brings commitment, resources, and coordination to some pressing 

challenges: educating students for the 21st century jobs, 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; strengthening energy efficiency and improving at-risk 

ecosystems; and providing healthy futures.

At a time of social need and fiscal constraint, CNCS is improving its 

process to award grants to programs that produce results, by supporting 

local organizations and leveraging outside resources to assist 

individuals and communities in need and put more Americans on the 

pathway to economic opportunity.

Through all its programs, CNCS seeks to expand economic opportunity. 

This includes 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. By helping more Americans graduate, pursue higher 

education, and find work, national service provides immediate 

benefits to the community and potential long-term benefits to service 

recipients and those who serve.

CNCS seeks to strengthen the social safety net in a unique way, by 

bolstering the civic, neighborhood, and faith-based organizations that 

serve most vulnerable citizens. Based on principles of local control, 

competition, accountability, and public-private partnership, CNCS and 

the network it supports engages millions of Americans in results-driven 

service each year across the country, from large cities to small towns to rural 

areas. 

Serving in many of the nation’s most impoverished communities, 

CNCS provides support to America’s civic infrastructure of food banks, 

homeless shelters, community health clinics, youth centers, veteran’s 

service facilities, State Service Commissions, and volunteer centers. 

CNCS multiplies the impact of its federal investment by leveraging nonfederal dollars, and mobilizing millions of volunteers.

Legislation

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 three main programs:

• Senior Corps, which incorporated the Foster Grandparents Program 

(FGP), Retired Senior Volunteer Program (RSVP), and Senior 

Companion Programs (SCP);

• The newly created AmeriCorps, which incorporated the Volunteers in 

Service to America (VISTA), State and National, and National Civilian 

Community Corps (NCCC); and

• Learn and Serve America.

Enacted on April 21, 2009, the bipartisan Edward M. Kennedy Serve 

America Act (SAA) reauthorized and expanded the mission and operation 

of CNCS, amending the National and Community Service Act of 1990 

and the Domestic Volunteer Service Act of 1973. 
Management’s Discussion & Analysis | PART I 5

The Corporation for National and Community Service

The SAA authorized both the expansion of existing service programs 

and the creation of a number of new programs to provide opportunities 

to serve and provide support for the nonprofit sector. The legislation also

directed CNCS to target resources on a core set of critical national problems

and evaluate our impact using standardized performance measures. 

Large numbers of people volunteered for the September 11th National Day of Service and Remembrance.
Management’s Discussion & Analysis | PART I 6

The Corporation for National and Community Service

Organizational Structure

Headquartered in Washington, D.C., CNCS is an independent federal 

agency with a Board of Directors, Chief Executive Officer (CEO), and 

Inspector General (IG) – all of whom are appointed by the President and 

confirmed by the Senate. 

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

operations, including more than 500 employees who work throughout 

the United States and its territories. The Board of Directors works 

closely with the CEO to set policies and direction for CNCS, advises the 

President and the Congress concerning developments in national and 

community service that merit their attention, and conducts an annual 

evaluation of the CEO.

Chief Operating Officer

R. Velasco

Government Relations

K. Allman (Acting)

External Affairs

J. Fetig

Chief Investment Officer and 

Social Innovation Director

I. Nickelson

Board of Directors

AmeriCorps State & Nat’l

W. Basl

Chief of Staff

A. Mishra

Senior Advisor

J. Herrmann

Chief Financial Officer*

D. Rebich

Human Capital

A. Wasilisin (Acting)

Chief Executive Officer

Wendy Spencer

AmeriCorps NCCC

K. Raftery

Accountability & Oversight

D. Hilton

AmeriCorps VISTA

M. Strasser

Information Technology*

P. Clark

Civil Rights & Inclusiveness

L. Honnoll

Inspector General

Deborah Jeffrey

Figure 1. Corporation Organization Chart

Senior Advisor 

for Disaster Services

K. DeGraff

Senior Advisor 

for Education

(Vacant)

Senior Advisor 

for Veteran’s Affairs

K. Langley

Field Liasion

M. Berning

Senior Corps

E. Tan

General Counsel

V. Green

* Denotes staff that also have reporting line to the CEO
Management’s Discussion & Analysis | PART I 7

The Corporation for National and Community Service

Figure 2. Corporation Field Offices

Strategic Priorities

CNCS’ 2011-2015 Strategic Plan underscores its commitment by 

defining a focused path to deliver enhanced programs and benefits 

to communities. In particular, the adoption of the Plan’s agency-wide, 

outcome-oriented performance measures strengthens the foundation for 

accountability. By adhering to a set of agency-wide measures, CNCS can 

assess the individual and collective results of programs and continue to 

improve its work. A common set of measures also expands CNCS’ ability 

to account for the combined contributions of all our grantees, sponsors, 

and partners particularly in areas that have greatest community impact 

and mitigate grantee risk. 

Implementation of the FY 2011–FY 2015 Strategic Plan.

In FY 2011, CNCS began to implement a comprehensive five year 

Strategic Plan guided by the vision set forth in the Serve America Act 

and focusing national service on a core set of four strategic goals 

while assessing the impact of CNCS programming. These goals are 

the foundation for the Strategic Plan and challenge CNCS to lead and 

operate at a higher level of accountability, integrity, and transparency.

Increase the impact of national service on community 

needs in communities served by CNCS-supported programs.

CNCS received enacted appropriations of $1.0 billion during FY 2012. 

CNCS used this to invest in community programs that achieve outcomes 

in Disaster Services, Economic Opportunity, Education, Environmental 

Stewardship, Healthy Futures, and Veterans and Military Families. 

Looking ahead, these investments will focus on achieving outcomes 

reflected in the agency’s new mandatory performance measures.

Strengthen national service so that participants engaged in 

CNCS-supported programs consistently find satisfaction, 

meaning, and opportunity. 

CNCS set forth goals to strengthen the experience of individuals 

participating in national service. CNCS supports the national service 

network in providing experiences that offer a unique combination of 
Management’s Discussion & Analysis | PART I 8

The Corporation for National and Community Service

professional, educational, and life benefits to service participants. The 

network also recruits a diversity of Americans, especially those from 

underrepresented or disadvantaged populations. CNCS will collaborate 

with the national service network to strengthen outreach efforts and to 

implement best practices that ensure a powerful service experience.

Maximize the value we add to grantees, partners, and 

participants.

To support its focus on a specific set of both community outcomes 

and powerful service experiences, CNCS is developing a relevant 

and accessible knowledge base informed by research and rigorous 

evaluation, and CNCS conducts capacity building activities that 

advance the adoption of best practices.

Fortify management operations and sustain a capable, 

responsive, and accountable organization.

CNCS works across programs to enhance its operations, support 

evidence-based decision making, and to foster a culture of performance. 

CNCS will also build upon its current infrastructure to strengthen 

and enhance our IT systems, workforce, and financial and grants 

management efforts.

As the blueprint guiding our work, the Strategic Plan includes further 

details on the specific objectives, strategies, and performance measures 

that determine how CNCS will evaluate its success in the coming years. 

The full plan and appendix are posted on our website at: 

http://www.nationalservice.gov/about/focus_areas/index.asp

Activity FY 2012 Enacted

(dollars in thousands)

AmeriCorps State and National $ 344,348

AmeriCorps VISTA $ 94,820

AmeriCorps NCCC $ 31,882

State Commissions Admin. Grants $ 13,441

Senior Corps

RSVP $ 50,204

Foster Grandparent Program $ 110,565

Senior Companion Program $46,722

Subtitle H

Innovation, Demonstration and Assistance $ 4,481

Social Innovation Fund $ 44,815

Volunteer Generation Fund $ 3,984

Evaluation $ 2,994

Training and Technical Assistance $ 1,996

Disability Placement Funds $ 0

National Service Trust $ 211,797

Salaries and Expense $ 82,843

Office of Inspector General $ 3,992

TOTAL $ 1,048,884
Management’s Discussion & Analysis | PART I 9

The Corporation for National and Community Service

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 that received housing-related assistance from CNCS-supported members, 

participants, and volunteers who showed improvement in their housing situation. 

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. 

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

Stewardship

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

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 Number of each of the four categories of service recipients (veterans, veterans’ family members, family members of 

Military Families active duty military, and military service members) that received CNCS-supported assistance.

CNCS’ priority measures, built upon our historical work, provide a common 

focal point for all our programs, and will allow us to demonstrate the 

tangible results our grantees and participants are achieving. As CNCS 

continues to align its programming to the agency’s priority measures, 

the agency is taking steps to adopt a more performance-oriented culture. 

These include testing and assessing the impact of CNCS’s new strategic 

plan on the agency’s partners and customers, building structures 

and systems for performance measurement, analysis, and knowledge 

management, and enhancing staff capacity to support results-based 

services. Some highlights of this effort are provided in this report. More 

specific information on these initiatives will be available in the agency’s 

FY 2012 performance report, which will be presented with CNCS’ FY 2014 

Congressional Budget Justification.

In FY 2012, CNCS continued to implement its Strategic Plan through 

incorporating its priorities in partnership agreements such as notices 

of funding availability, training its grantees on new measures, and 

enhancing information technology systems. 

The following pages present an overview of CNCS’ priority performance 

measures in the context of associated goals, focus areas, and 

contributing programs. CNCS grant programs will begin to report actual 

data against these measures in FY 2014. Preliminary measure data from 

AmeriCorps VISTA is available on page 12 of this report.
Management’s Discussion & Analysis | PART I 10

The Corporation for National and Community Service

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

accountable organization

Complete modernization of IT infrastructure.

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

Award and close grants and contracts within prescribed timeframes.

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

Percent of organizations that implement evaluations that demonstrate stronger evidence of program effectiveness than the prior year in order to 

receive CNCS national service participants or funding. 

Number of community volunteers recruited and/or managed by CNCS-supported organizations or National Service Participants. 

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

programs consistently find satisfaction, meaning, and opportunity

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

Military Families 

Service Participants Percent of service participants engaged in CNCS-supported programs who report gaining skills they can apply to future 

educational, professional, or civic endeavors. 
Management’s Discussion & Analysis | PART I 11

The Corporation for National and Community Service

AmeriCorps NCCC members are inducted into service.

CNCS Programs and Performance

AmeriCorps State and National

For nearly 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 

nonprofit organizations in serving our most vulnerable citizens.

In FY 2012, AmeriCorps State and National continued to align its 

programming to the agency’s Strategic Plan. This included prioritizing 

funding to critical focus areas for the grant awards CNCS made in 

the fourth quarter of the fiscal year. The agency funded organizations 

across all six priority focus areas identified in the SAA, and placed the 

highest priority of AmeriCorps grant funding on programs that improve 

academic outcomes for economically disadvantaged children, programs 

that serve and engage veterans and military families, and programs 

that help individuals and communities prepare, respond, recover, and 

mitigate disasters and increase community resiliency. 

In FY 2012, CNCS funded approximately 67,000 AmeriCorps members 

across all AmeriCorps State and National grants. This number is lower 

than projected for FY 2012. The projections of AmeriCorps member 

levels are driven by estimates of average cost per member and the 

percentages of member slot types (ie., quarter-time, half-time, fulltime, etc.). Successful programs selected for funding in FY 2012 had 

higher costs per member and higher percentages of half-time and fulltime members than projected. CNCS is adjusting its methodology for 

calculating annual member projections to consider known data about 

continuation grantees and current trends in program design.

Final performance data for the entire portfolio will be reported in the 

FY 2012 Annual Performance Report, released as a part of the FY 2014 

Performance Measure — AmeriCorps State and National

1 - Increase impact 

on communities

2 - Enhance volunteer 

experience

3 - Maximize value to 

grantees, partners, 

and participants

Enacted FY 2012 Budget

$344.3 million
Management’s Discussion & Analysis | PART I 12

The Corporation for National and Community Service

Congressional Budget Justification.

AmeriCorps VISTA

AmeriCorps VISTA was created to reduce poverty and build economic 

opportunity in low-income communities across the country. Authorized in 

1964 as Volunteers in Service to America, the program was incorporated 

into the AmeriCorps network of programs in 1993. AmeriCorps VISTA 

supports efforts to alleviate poverty in urban and rural areas by 

engaging individuals ages 18 and older in one 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 members are assigned to nonprofit community 

organizations, tribes, and public agencies through an application 

process locally managed by CNCS state offices.

The AmeriCorps VISTA program is guided by the core principles of 

sustainability, capacity building, and strengthening community. It offers 

critical contributions to the agency’s mission priorities under goals 

one, two, and three of CNCS’ Strategic Plan through activities such as 

community outreach and partnership development, and establishment 

of volunteer recruitment and management systems. Members strengthen 

and improve the ability of local organizations to carry out their mission 

and programs. Sponsoring organizations must ensure that their project 

engages residents of the targeted low-income community in the 

planning, development, and implementation of the project to which 

members are assigned. In doing so, the program promotes service and 

community engagement at the local level.

In FY 2012, AmeriCorps VISTA placed more than 8,000 VISTAs and 

preliminary results indicated more than 600,000 volunteers were 

recruited to build capacity in more than 1,100 community organizations. 

Members are assigned to programs in education, employment, housing, 

and financial development, to assist individuals and communities 

affected by long-term poverty and unemployment and those facing 

hardships resulting from the current economic recession. In FY 2012, 

AmeriCorps VISTA focused new project development on economic 

opportunity, educational improvement at underperforming schools, and 

creating or expanding programs that support veterans and military 

families. 

AmeriCorps VISTA also successfully placed 1,730 young people in Summer 

Associate positions as part of the White House “Summer Jobs” initiative 

to place disconnected youth from low-income communities in summer 

jobs. Of these associates, more than 80 percent came from low-income 

communities and served with local organizations in 43 states. Each 

associate received a stipend and the opportunity to earn education awards.

CNCS continued to develop the VISTA Campus–AmeriCorps VISTA’s online 

learning and knowledge management site that offers VISTA leaders, 

members, and sponsors around-the-clock support in professional 

development, peer support, and program guidance.

Economic Opportunity

More than half of all new projects developed in FY 2012 were in 

Economic Opportunity. Community organizations, including faith-based 

programs, used VISTA resources to create or expand projects that help 

people find employment, move into safe and affordable housing, and 

become financially independent. 

• Legal Assistance Foundation of Metropolitan Chicago VISTAs helped 

low-income individuals get legal representation and navigate the 

legal system – important steps toward economic self‐sufficiency. 

VISTA members recruited, coordinated, trained, and supported 

volunteer attorneys and interpreters for a program that assisted 

immigrant victims of domestic violence who were applying for U.S. 

citizenship under the Violence Against Women Act. In a two-year 

period ending in FY 2012, VISTAs recruited almost 250 volunteer 

attorneys who contributed 10,000 hours of legal services annually and 

served more than 1,100 clients. 

• VISTAs at the New London Homeless Hospitality Center in Connecticut 

increased the staff capacity through volunteer recruitment and 

management. The VISTAs reached out to area colleges, universities, 

and churches to recruit volunteers who help guests at the Hospitality 

Center fill out job applications, replace lost documents, and find 

housing. The VISTAs developed an online resource manual for 

volunteers to use in assisting clients and continue to expand the 

volunteer program to include outreach to homeless veterans.

Strategic Goals — AmeriCorps VISTA

1 - Increase impact 

on communities

2 - Enhance volunteer 

experience

3 - Maximize value to 

grantees, partners, 

and participants

Enacted FY 2012 Budget

$94.8 million
Management’s Discussion & Analysis | PART I 13

The Corporation for National and Community Service

FEMA Corps 2012 Inaugural Class, Vinton, Iowa

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. Since 2000, more than 14,000 AmeriCorps 

NCCC members from across the country have served more than 4.9 

million hours on 2,027 disaster service projects. The service, training, 

and certification provided by AmeriCorps NCCC increase employment 

skills and leadership opportunities for young adults – particularly those 

from disadvantaged circumstances.

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

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

coordination, which prepare its 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, 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. 

In FY 2012, CNCS estimates that NCCC enrolled 1000 members and 

recruited or managed an additional 44,000 volunteers in efforts to 

improve communities throughout the country. These volunteers engaged 

in important service activities that included providing assistance to 

nearly 40,000 elderly citizens, and managing and helping to mitigate 

fires on more than 23,600 acres of land. In addition to these activities, 

NCCC continued to be at the forefront of the nation’s efforts to respond 

to natural disasters. 

In FY 2012, 12 percent of AmeriCorps NCCC project hours were 

devoted to disaster services nationwide, providing support to 

displaced and needy individuals, families, and communities. NCCC 

completed its commitment to the Gulf Coast Recovery in FY 2010, 

which has steadily resulted in an overall decrease in the total 

percentage of disaster recovery projects from an organizational high 

of over 50 percent. 

Some of NCCC’s major disaster deployments in FY 2012 include 

participating in response and recovery efforts in 45 states, 

including continued recovery efforts in Joplin, Missouri; Tuscaloosa, 

Alabama; and throughout the mid-Atlantic and South following 

Hurricane Irene and Isaac. In addition, NCCC members provided 

support following the wildfires in Colorado. The program supported 

disaster response efforts in partnership with the Federal Emergency 

Management Agency (FEMA), the American Red Cross, State Service 

Commissions, and local municipalities throughout the U.S. and 

its territories. In 2012, NCCC members assisted more than 28,000 

people affected by disasters. 

Strategic Goals — AmeriCorps NCCC

1 - Increase impact 

on communities

2 - Enhance volunteer 

experience

3 - Maximize value to 

grantees, partners, 

and participants

Enacted FY 2012 Budget

$31.9 million
Management’s Discussion & Analysis | PART I 14

The Corporation for National and Community Service

State Service Commissions

Since the inception of CNCS 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. 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.

Senior Corps

RSVP 

The RSVP engages the skills, talents, and interests of almost 300,000 

volunteers aged 55 and older to meet a wide range of community needs. 

Volunteers serve in community organizations to help them deliver critical 

services and fulfill their missions. RSVP is a flexible volunteer service 

model, with no set service schedules or compensation for the volunteers 

when on assignment, with the exception of insurance coverage and 

mileage reimbursement. 

RSVP grants are provided to eligible sponsoring organizations, including 

nonprofit organizations and state, local, and tribal governments. RSVP 

has the largest rural footprint of any CNCS program, and often serves 

as an important source of disaster services in rural communities. The 

required non-federal share is a minimum 10 percent of the total grant 

in year one, 20 percent in year two, and 30 percent in year three and all 

subsequent years. Grants are awarded for a period of up to three years.

In FY 2012, RSVP volunteers delivered an estimated 62 million hours 

of service in their communities. Moreover, CNCS estimates that across 

a network of 699 grants awarded to sponsoring organizations, a total 

of 296,380 RSVP volunteers served in more than 38,000 community 

organizations nationwide to deliver services. Working through such 

networks as Area Agencies on Aging, Volunteer Centers, United Way, 

social services agencies, and many others, RSVP volunteers:

• Mentored an estimated 16,000 children;

• Provided independent living services to an estimated 676,000 adults; 

and

• Engaged an estimated 400,000 volunteers to address community 

needs such as delivering meals to homebound seniors, conducting 

safety patrols, tutoring children, and assisting with food banks.

In FY 2012, states and local communities contributed more than $36.7 

million in non-federal funds to support RSVP projects. This level is 42 

percent of the total cost, and well above the required 30 percent nonfederal share required by the program. 

Some examples of RSVP volunteers meeting high priority needs include:

• Disaster Services – Throughout FY 2012, RSVP volunteers joined 

forces with other national service members and volunteers around the 

nation to assist in the aftermath of natural disasters in responding to 

the wildfires in Ft. Collins, Colo., and Hurricane Isaac in Mississippi. 

These activities served to minimize the loss of life and property and 

support the economic recovery in communities affected by disasters.

• Helping Veterans – The Olympic Community Action Council in Port 

Townsend, Wash. and the Coastal Community Action Council in 

Aberdeen/Grays Harbor, Wash. created two new programs in 2011 that 

support economic opportunities for Rural Veterans. This was expanded 

to RSVP of Yakima County in 2012. 

Senior Corps volunteers serve as a neighborhood patrol for the Grand Rapids 

Police force.

Strategic Goals — RSVP

1 - Increase impact 

on communities

2 - Enhance volunteer 

experience

3 - Maximize value to 

grantees, partners, 

and participants

Enacted FY 2012 Budget

$50.2 million
Management’s Discussion & Analysis | PART I 15

The Corporation for National and Community Service

• Working with the U.S. Veterans Employment and Training Service at 

the Department of Labor (DOL), these RSVP projects initiated new 

programming that was designed to reach out to unemployed veterans 

in the rural Olympic Peninsula and Pacific coast of Washington 

State. The teams of volunteers visit with veterans, check on their 

career developments, and if needed, alert them to additional support 

available from DOL, Veterans Affairs (VA), and other government and 

non-government organizations. 

This is an example of how RSVP was able to mobilize local human 

capital to empower a community to access resources and further 

administration priorities. Senior Corps is replicating this program in 

Washington and other states such as Montana. 

Four RSVP projects are working with the Montana State Service 

Commission and the Montana Department of Labor & Industry to start a 

Rural Veteran Outreach Pilot Project in Montana. The Montana projects 

are part of a national initiative to allow the Department of Labor and 

states to greatly improve outreach to rural veterans and provide them 

with better access to employment programs, services, and information 

to help rural veterans attain meaningful careers.

• An initial training event took place at the Montana State Capitol on 

November 9, 2011, conducted by the Montana Department of Labor 

& Industry in collaboration with the Governor’s Office of Community 

Service and the CNCS Montana Field Office. Several AmeriCorps State 

and VISTA members also working on projects with a veteran focus 

attended as well. The pilot started on January 16, 2012, when RSVP 

volunteers began the first round of calling veterans.

• RSVP in Broward County Florida began a Veterans Mentoring Veterans 

program. This is the lead activity for the local American Red Cross’ 

military reintegration intervention. The RSVP volunteers assist 

reintegration through job skills coaching. 

Senior Companion Program (SCP)

The Senior Companion Program (SCP) provides a cost-effective option in 

the continuum of care available to the nation’s aging population. Each 

year, Senior Companions serve thousands of older and frail adults by 

providing companionship, transportation, light chores, and respite to 

assist seniors to remain in their own homes. 

Senior Companions help aging Americans and veterans to maintain 

their dignity and quality of life, while enriching their own lives 

through their national service experience. Senior Companions’ 

traditional clients are frail seniors, particularly women over the 

age of 85 who live alone. Other clients include individuals with 

disabilities and their caregivers. 

Research conducted by the program in 2004 – 2005 suggests that 

Senior Companion clients had significant, long-term mental health 

benefits from SCP services, including reduced rates of depression. 

Companionship provides benefits to both the Senior Corps volunteer 

and companion, as social ties and perceived social support are 

linked with long-term health outcomes. Senior Companions also 

serve 7,860 caregivers. Caregiving can have a negative impact 

on the caregiving family’s economic opportunities, and caregiver 

burnout can be an important contributor to nursing home use. The 

Salt Lake County Aging Services in Utah also serve home-bound 

veterans in a VA Home-Based Primary Care program by providing 

caregiver respite. 

Senior Companions serve between 15 and 40 hours per week and 

income-eligible volunteers, who are at 200 percent of the federal 

poverty level, receive a modest monetary hourly stipend of $2.65 per 

hour to help offset the cost of volunteering. Volunteers also receive 

service-related insurance, mileage reimbursement, and other nonmonetary incentives. SCP grants are awarded to eligible sponsoring 

organizations, including nonprofit organizations and state, local, 

and tribal governments. Grantees are required to contribute at least 

10 percent of the total budget from non-federal sources, and an 

amount equal to 80 percent of the federal budget must be expended 

on direct volunteer costs. Grants are awarded for a period of up to 

three years.

A Senior Corps RSVP volunteer provides disaster services training. 
Management’s Discussion & Analysis | PART I 16

The Corporation for National and Community Service

CNCS estimates that in FY 2012, 13,600 SCP volunteers, serving 

through 198 grants awarded to sponsoring organizations, delivered 

12.2 million hours of service to approximately 60,940 frail, older adults 

and others with physical or other limitations. They transport clients to 

medical appointments; help shop for food and basic necessities; provide 

companionship to offset isolation; and offer respite to 7,900 family 

members and informal caregivers. 

In 2012, states and local communities contributed $16 million in nonfederal funds to support Senior Companions, well above the required 10 

percent non-federal share of $5.1 million. 

Foster Grandparent Program (FGP)

The Foster Grandparent Program (FGP) is an intergenerational program 

first established in 1965. It connects volunteers aged 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. 

A Foster Grandparent can serve as a caring and consistent adult 

presence in children’s lives, which can impact their future economic 

opportunities. In turn, Foster Grandparents derive significant 

emotional and health benefits from their service, which can improve 

their quality of life and provide them with a strong sense of purpose. 

FGP projects currently support the school turnaround pilots in 

both Orlando, Fla. and the state of Minnesota in a CNCS and U.S. 

Department of Education interagency effort. Foster Grandparents also 

serve military connected children with deployed parents in early child 

development programs. In Hillsborough, Fla., the FGP has started a 

relationship with six schools that surround MacDill Air Force Base to 

mentor military connected children. 

Foster Grandparents serve between 15 and 40 hours per week and 

income-eligible volunteers receive a modest hourly stipend of $2.65 

per hour. Volunteers also receive service-related insurance, mileage 

reimbursement, and other non-monetary incentives. Grants are 

provided to eligible sponsoring organizations, including nonprofit 

organizations and state, local, and tribal governments. Grantees 

contribute at least 10 percent of the total budget in non-federal funds 

and an amount equal to 80 percent of the federal budget must be 

expended on direct volunteer costs. Grants are awarded for a period of 

up to three years.

CNCS estimates that in FY 2012, 27,900 FGP volunteers delivered 24 

million hours of service in their communities. Volunteers served a total 

of 232,000 children, including mentoring more than 130,000 children. 

Of those mentioned 7,000 were children of incarcerated parents and 

more than 2,250 were children of military families.

In 2012, states and local communities contributed an estimated $26 

million in non-federal funds to support Foster Grandparents, well above 

the required 10 percent non-federal share. 

Innovation, Demonstration, and Assistance

CNCS innovation, demonstration, and assistance programs support and 

encourage new forms of national service and civic participation and 

improve existing national service programs. The activities generally 

promote national service and volunteering throughout the country; 

identify and incubate innovative program models and approaches; 

CNCS estimates that in FY 2012, 13,600 SCP 

volunteers, serving through 198 grants 

awarded to sponsoring organizations, 

delivered 12.2 million hours of service to

approximately 60,940 frail, older adults, 

and others with physical or other limitations.

Strategic Goals — Senior Companion Program

1 - Increase impact on 

communities

2 - Enhance volunteer experience

Enacted FY 2012 Budget

$46.7 million

Strategic Goals — Foster Grandparent Program

1 - Increase impact on 

communities

2 - Enhance volunteer experience

Enacted FY 2012 Budget

$110.6 million
Management’s Discussion & Analysis | PART I 17

The Corporation for National and Community Service

and disseminate effective practices found to improve the reach and 

effectiveness of programs and projects.

Innovation, demonstration, and assistance significantly contribute 

to CNCS Strategic Goal 2, strengthening national service so that 

participants find satisfaction, meaning, and opportunity in their 

service. CNCS strives to ensure that members and volunteers across 

its programs leverage their experiences in ways that benefit them 

as individuals and the communities in which they remain engaged. 

Innovation, demonstration, and assistance activities also contribute to 

CNCS Strategic Goal 3, which seeks to maximize the value we add to 

grantees, partners, and participants through programming, convening 

meetings, and producing materials to help improve volunteer 

programs. Finally, funded within innovation activities is the agency’s 

main program for identifying and scaling promising community 

solutions, the Social Innovation Fund.

Social Innovation Fund (SIF)

The Social Innovation Fund (SIF) is CNCS’ most significant initiative 

undertaken in the area of innovation and scaling promising programs.

 The primary objective of the SIF is to improve the lives of people in lowincome communities by mobilizing public and private resources to grow 

innovative nonprofit organizations that have evidence of compelling 

impact in three priority areas of need: Economic Opportunity, Youth 

Development, and Healthy Futures. 

The SIF uses an open and highly competitive grant program that 

awards federal funds to selected “intermediaries.” These are 

organizations with strong grantmaking expertise and track records 

of success that have developed compelling programs for achieving 

clearly-defined objectives for social impact in one or more of the 

designated issue areas. The grantees match the funds 1:1 from 

private or other non-federal sources then select, fund, and support the 

growth of promising nonprofits (“subgrantees”) that are positioned to 

deliver the intended program impact.

Fiscal Year 2012 represented the second full year of operations for the 

Social Innovation Fund, during which the primary focus was to continue 

building a solid operational foundation and strengthen the application 

of evidence in critical program phases. All grantees first awarded in FY 

2011 have completed their initial evaluation plans, and planning has 

Senior Corps RSVP volunteers serve as mentors for 80,000 children across the country. 

Strategic Goals — Innovation, Demonstration, and Assistance

2 - Enhance volunteer experience 3 - Maximize value to grantees, 

partners, and participants

Enacted FY 2012 Budget

$4.5 million

Strategic Goals — Social Innovation Fund

3 - Maximize value to grantees, partners, and participants

Enacted FY 2012 Budget

$44.8 million
Management’s Discussion & Analysis | PART I 18

The Corporation for National and Community Service

begun for the SIF National Evaluation — a comprehensive, systematic 

effort that will focus on assessing the impacts of the entire SIF portfolio.

In FY 2012, CNCS invested $33.9 million in grants to existing grantees 

to continue current programs through an increasingly rigorous process 

in which all applicants were assessed against strict performance 

criteria, with grant awards for existing grantees adjusted accordingly. 

CNCS also awarded $8 million to four new grantees that will receive $2 

million over two years, and are eligible for continued funding for a total 

of up to five years. 

These four grantees, like the 16 organizations selected in previous 

competitions, are experienced grantmakers with strong track records of 

success who have proposed compelling, innovative programs to tackle 

some of our country’s biggest challenges in areas of high need.

A full list of all SIF intermediaries and the current 197 communitybased, service-providing nonprofit organizations (subgrantees) can be 

found at: http://www.nationalservice.gov/about/programs/innovation.asp

Call to Service

The President’s Call to Service seeks to engage all Americans in making 

service a way of life. CNCS builds large-scale efforts that bring attention 

to service and volunteering in order to increase the number of people 

making an impact in their communities. Through Call to Service activities 

such as The Martin Luther King, Jr. Day of Service and the 9/11 Day of

Service and Remembrance, CNCS also expands partnerships and reaches 

new audiences, broadening the pool of potential volunteers and service 

participants and recognizing their service. The Call to Service also

provides a platform for enhancing and supporting CNCS’ highest priorities. 

The Martin Luther King, Jr. Day of Service – In FY 2012, MLK Day 

programs engaged over 600,000 individuals in service in all 50 states. 

Campus Compact supported more than 14,000 volunteers across 65 

campuses in 26 states. Cesar Chavez Foundation’s 1,250 volunteers 

completed 6,250 hours of service in the Southwest and the West. Hope 

Worldwide, with its partner, American Red Cross, mobilized 5,600 

volunteers to serve more than 21,000 hours, educating Americans about 

home safety and distributing fire extinguishers and smoke detectors. 

Through a partnership with Scholastic, CNCS created and distributed 

the MLK Day Curriculum focusing on Dr. King’s legacy of service. The 

curriculum was downloaded 5,100 times, videos were viewed 6,400 times, 

and the curriculum landing page received more than 10,600 page views. 

9/11 Day of Service and Remembrance - Approximately 180,000 

volunteers educated over 300,000 citizens on disaster preparedness, 

developed emergency plans, promoted fire safety, and built affordable 

housing for veterans and military families. 

The White House Council for Community Solutions – The Council 

developed and released the Community Collaborative Toolbox, the 

Employer Tool Kit: Connecting Youth to Employment, The Economic 

Value of Opportunity Youth, and White House Council for Community 

Solutions Final Report: Community Solutions for Opportunity. The 

Council worked with the White House Department of Social Innovation to 

support Summer Jobs+ in January 2012 and the White House on Summit 

Community Solutions for Disconnected Youth in June 2012. The Council’s 

outreach efforts engaged over 250 nonprofit, business, and government 

stakeholders as a means to gather and disseminate data and final 

recommendations on disconnected youth. 

Strategic Goals — Call to Service

2 - Enhance volunteer experience

Enacted FY 2012 Budget

$4.0 million This “I Will” sculpture has been placed in New York City’s Times Square to encourage 

people to make personal pledges to perform good deeds and service on the September 

11th National Day of Service and Remembrance.
Management’s Discussion & Analysis | PART I 19

The Corporation for National and Community Service

A number of CNCS activities are designed to recognize outstanding 

organizations and individuals engaged in service. Working with the 

Department of Education, the President’s Higher Education Community 

Service Honor Roll recognized 642 schools that supported one million 

students who engaged in 105 million hours of exemplary community 

service. At Carson Newman College in Jefferson City, Tenn., 75 percent of 

the students are engaged in service, averaging at least 10 hours a week 

in targeting juvenile delinquency. At Miami University in Ohio, students 

tutor and mentor 600 children in early childhood programs. Volunteer 

recognition events during Senior Corps Week and AmeriCorps Week

honored the powerful impact of seniors and AmeriCorps members and 

encouraged more Americans to serve.

In January, CNCS sponsored National Mentoring Month. The 

Mentoring Summit, attended by 500 key stakeholders, raised 

awareness about the thousands of programs nationwide that provide 

mentors for young people. The third annual Let’s Read. Let’s Move 

initiative promoted physical activity and prevention of summer 

reading loss in children. This initiative is built on partnerships 

with the Departments of Education, Agriculture, and Health and 

Human Services, reaching constituencies of nonprofits and citizens 

to increase collaboration and impact. Partnering with several 

nonprofits, the Children’s Museum of Atlanta hosted a reading 

event for over 200 children. CNCS social media drew attention to 

at least a dozen national nonprofits seeking to expand impact and 

partnerships in physical activity and reading loss prevention.

Evaluation

Research and evaluation at CNCS is designed to develop knowledge to 

support the agency’s mission, programs, and strategic goals through 

rigorous program evaluation and research initiatives. Strengthening the 

evidence base for national service is a priority outlined in the agency’s 

Strategic Plan. 

Research and evaluation supports two objectives of Goal 3, which is 

to maximize the value we add to grantees, partners, and participants. 

These objectives are to: 1) build on the knowledge base of best 

practices and support efforts to measure results; and 2) improve 

organizational capacity to conduct rigorous evaluations of CNCS’ 

programs to measure outcomes and/or impact. CNCS supports a 

research-to-practice model, whereby research results are used 

to inform program and policy decisions, thereby integrating best 

practices into program operations.

In alignment with the agency’s Strategic Plan and its priority areas, 

CNCS has developed a plan to provide high-quality evaluations of some 

of its most critical initiatives. The research and evaluation initiatives 

cover the six agency priorities: 

• Disaster Services 

• Economic Opportunity 

• Education 

• Environmental Stewardship 

• Healthy Futures 

• Veterans and Military Families 

Our research is also designed to answer broad questions, including:

• Which national service interventions offer evidence for effectiveness in 

the six focus areas?

• What are the trends in volunteering and program participation?

• How can CNCS become more effective?

• What is the cost effectiveness (value for the dollar) of national 

service?

AmeriCorps NCCC members rebuild a house in the wake of Hurricane Katrina.

Strategic Goals — Evaluation

3 - Maximize value to grantees, partners, and participants

Enacted FY 2012 Budget

$3.0 million
Management’s Discussion & Analysis | PART I 20

The Corporation for National and Community Service

Below are major research initiatives undertaken by CNCS in FY 2012. 

Assessment of the Involvement of Veterans and Military Families 

in National Service – CNCS has almost completed a study on the 

involvement of veterans and military families in national service. The 

study is designed to identify effective models and strategies that CNCS 

programs have developed for engaging and serving this important and 

underserved group. The findings will be delivered in the Congressional 

report on the involvement of veterans and military families in national 

service required by the SAA. 

Assessment of National Performance Measurement Pilot – This 

project was designed to assess and improve the implementation of 

national performance measures, which are required by the SAA. In 2009, 

CNCS launched a three-year pilot initiative to develop and implement 

standard national measures for each of the six agency priorities. Since 

2010, the national measures have been piloted as optional measures for 

new and re-competing AmeriCorps State and National grant applicants. 

Initial performance measurement results were reported by the 2010 

cohort of AmeriCorps grantees in December 2011. 

CNCS is now in the process of collecting and analyzing data from 

AmeriCorps grantees that received new or re-competed grant awards 

in 2010 and 2011. Both those grantees that did and did not participate 

in the pilot will be included in the assessment. The findings from the 

assessment will be used to enhance program decision-making and 

improve service outcomes.

Training and Technical Assistance 

Through Subtitle J, the National and Community Service Act authorizes 

CNCS to provide training and technical assistance (TTA) to improve 

the programmatic quality of current and potential national service 

programs and projects. CNCS’ current training and technical assistance 

strategy focuses on two outcomes: 1) implementation of the agency’s 

performance measures; and 2) grantee compliance with statutory and 

regulatory requirements. The rationale for this focus is a unique set of 

knowledge and skills specific to CNCS programs and projects in these 

critical areas.

During FY 2012, CNCS developed a competency framework and identified 

outcomes to track knowledge gains for training and technical assistance 

activities. Examples of recent knowledge gains include: 

• 92 percent of participants in the 2012 Financial and Grants 

Management Institute (FGMI) improved their knowledge of the topics 

covered as measured by pre- and post-tests. The FGMI is a three-day 

training for new program/project directors or those identified through 

monitoring as needing to attend, to increase capacity to manage 

the account for CNCS requirements and funding. While CNCS has 

conducted this annual Institute as a part of our core curriculum 

on compliance for several years, data collection on pre- and postknowledge gains is a recent accomplishment. Based on evidence of 

knowledge gains, along with Program Officer feedback, the FGMI has 

demonstrated value and impact. 

• Four online modules of the core curriculum for performance 

measurement have imbedded pre- and post-testing of core 

competency knowledge gains by learners. 

Measurement of knowledge gains for both the FGMI and the performance 

measurement modules provide the foundation for a future certification 

program in these areas. 

In addition to the areas highlighted above, CNCS expanded its online 

infrastructure and provided program support grants to State Service 

Commissions for delivery of TTA at the state and local level. 

Disability Inclusion Grants

Pursuant to the NCSA, CNCS seeks to expand opportunities that lead to 

the meaningful and successful inclusion of people with disabilities in 

national service. Disability inclusion grants support all five objectives 

of Goal 2 in the CNCS Strategic Plan. The grants mitigate the real and 

perceived barriers to full inclusion of people with disabilities in national 

service programs. In addition, these grants help participants to:

• Engage in a high-quality service experience.

• Find meaning in their service experience that leads to continued 

Strategic Goals — Training and Technical Assistance

3 - Maximize value to grantees, partners, and participants

Enacted FY 2012 Budget

$2.0 million
Management’s Discussion & Analysis | PART I 21

The Corporation for National and Community Service

service in their communities.

• Discover professional, educational, or civic opportunities through their 

service experience. 

• Gain health benefits associated with service, particularly for veterans 

and participants over the age of 55.

Disability Inclusion Grants also have the potential to address 

CNCS’ objectives in Strategic Goals 1 and 3. For example, national 

service can play an important role in addressing the persistent, 

chronic unemployment of Americans with disabilities as it provides 

opportunities (often team-based) in highly structured, supervised 

environments. 

In FY 2012, to support the goal of inclusion of people with disabilities in 

service, CNCS: 

• Partnered with disability organizations and agencies at national, 

state, and local levels to leverage expertise and networks around 

recruitment. For example, through a grant to the University of 

Massachusetts, CNCS worked with Vocational Rehabilitation 

counselors across the country to identify barriers to participation 

for people with disabilities and solicit participation in recruitment. 

Through disability grants to state service commissions, 35 states 

maintained State Inclusion Teams (formal partnerships with a variety 

of disability support organizations).

• Provided training and technical assistance, resources, and materials 

on evidence-based practices to provide knowledge and skills for 

program and project managers to successfully engage people with 

disabilities. Outputs of activities include 130 trainings reaching 3,283 

participants, 217 requests for technical assistance, monthly webinars 

reaching 1,243 persons, and a National Symposium on Service and 

Disability Inclusion with 300 attendees. In addition, CNCS provided a 

fully accessible web tech center, www.serviceandinclusion.org.

• Awarded grants to state service commissions to provide reasonable 

accommodations. In 2011, 30 state commissions reported fulfilling 

295 requests for reasonable accommodation (2012 data available end 

of December 2012). 

• Assessed service activities that lead to post-service employment for 

people with disabilities and the inclusion of veterans in service. For 

example, CNCS’ technical assistance provider conducted 78 interviews 

with disabled service members to isolate practices that lead to retention 

and successful post-service outcomes with 25 member stories uploaded 

to the website as examples of effective practice. 

CNCS’ objectives are to increase awareness and help ensure 

that individuals with disabilities who want to serve are afforded 

opportunities. CNCS has faced some challenges in assessing service 

efforts undertaken by individuals with disabilities who may choose not 

to identify their disability status.

CNCS recently engaged the national service field and the wider public 

through a public comment process involving over 400 people on how 

best to approach disability inclusion programming. Activities proposed 

below reflect the priorities expressed from these stakeholders, as well 

as ideas derived from conversations with providers and other federal 

agencies who successfully serve disabled populations.

An AmeriCorps VISTA member serves in a local school.
Management’s Discussion & Analysis | PART I 22

The Corporation for National and Community Service

Management Performance

Human Capital

CNCS’ most important resource is its employees. As such, the agency actively encourages employee feedback and assesses it to determine the most

effective and efficient workforce strategies. A critical indicator of CNCS’ effectiveness in meeting its employee needs is the agency’s employee job 

satisfaction survey. 

As indicated in the table above, employee satisfaction declined by four 

percentage points between FY 2011 and FY 2012. In addition, CNCS fell 

seven percentage points short of an ambitious FY 2012 target of 72%. 

Although the root causes of this trend are not clear, CNCS will continue 

to assess possible contributing factors, closely monitor job satisfaction 

trends, and make strategic adjustments as appropriate. 

Based in part on past employee survey results and feedback indicating 

employees’ desires to gain more skills and advance their careers, CNCS 

implemented a targeted leadership development program in FY 2011 

and continued that investment into FY 2012. This is critical in ensuring 

staff are prepared for opportunities to assume more responsibility in 

helping the agency meet its mission.

Workforce Development and Training 

In FY 2012, CNCS began the second year of its Leadership Institute, 

which consists of two programs. Both seek individuals who have shown 

strong professional potential through the successful completion of high 

level duties or special assignments.

The first program, Leadership Crossroads, is based on the highly successful 

Department of Interior Pathways to Leadership program, adapted to 

meet the interests of CNCS. Participants are midcareer individuals with 

high potential who have, through a competitive national application 

process, demonstrated the potential to take on a significant leadership 

role in the management of CNCS’ resources, projects, and/or people. 

Leadership Crossroads received more than 40 applications in FY 

2012. From these, 20 candidates (50 percent) were selected. Based on 

feedback from these participants, and those who graduated in FY 2011, 

CNCS will continue to refine the program to ensure that it helps the 

agency grow its leadership capacity in an efficient and effective way. 

The second program, The Partnership for Public Service Annenberg 

Leadership Institute, is an innovation and leadership laboratory where 

rising federal leaders learn the best management practices and apply 

them to pressing national issues. This program is targeted toward midlevel to senior CNCS employees, of whom 20 were selected in FY 2012. 

Office of Accountability and Oversight (OAO)

In FY 2012, CNCS stood up the Office of Accountability and Oversight 

to strengthen its strategic risk management approach. The first phase 

of standing up this new office included merging independent offices 

focused on grantee monitoring and agency internal controls activities in 

the new unit. This effort aligns with the agency’s priorities and strategic 

vision. Some current examples of priority activities include developing a 

new Performance Measures Data Quality Review process – a standard 

tool for reviewing data quality elements with award recipients – and 

updating the agency’s monitoring protocols to ensure that they promote 

compliance and effectiveness, while keeping grantee burden to a 

minimum. The OAO is also developing an action plan for accountability. 

This will establish core principles and a vision for the agency’s 

accountability efforts moving forward. 

Employee Satisfaction Trends (2008 – 2012)

Performance Objective and Measure FY08 FY09 FY10 FY11 FY12 FY12

 Actual Target Actual Actual Target Actual

Percent of employees who report overall 68% 68% 73% 69% 72% 65%

satisfaction with their jobs

 
Management’s Discussion & Analysis | PART I 23

The Corporation for National and Community Service

Information Technology (IT)

In FY 2012, in addition to operating and maintaining core IT services, 

CNCS carried out a number of initiatives aimed at advancing the goals 

and objectives of CNCS’ IT Strategic Plan. Below highlights these critical 

initiatives organized by the associated IT strategic goals:

Stabilize CNCS’ IT Infrastructure

CNCS optimized IT infrastructure operations and reduced the risk of a 

data breach that would expose personally identifiable information (PII) 

entrusted to the agency by members, grantees, and other stakeholders 

as a result of agency systems. Key accomplishments included:

• Upgrading applications to a more secure and robust version of the 

Oracle database management platform, initiating the migration 

to a common web content management platform, and modifying 

infrastructure to enable an HSPD-12 compliant physical access 

solution.

• Implementing software changes to resolve security vulnerabilities 

across our core Grants Management Systems and new automated test 

scripts to improve system reliability and reduce the risk of introducing 

errors as system changes are implemented.

• Updating CNCS information assurance policies and procedures as 

well as implementing new processes and tools that allow the Office 

of Information Technology (OIT) to identify and mitigate security 

vulnerabilities in new code prior to release and to continuously 

monitor CNCS networks and control access.

Create a More Agile IT response to CNCS’ Changing Needs

CNCS refined plans to Modernize IT to better align and be more 

responsive to business needs and implemented enhancements to core 

grants management applications to meet strategic priorities. Key 

accomplishments included:

• Refining CNCS’ IT Modernization Strategic Plan and road map to 

align with business priorities and thereby effectively guide future IT 

investment decisions.

• Completing Phase 1 and initiating Phase 2 of a software module 

in eSPAN/eGrants to capture, track, and report grant performance 

information to support evidence based decision making, and completing 

the implementation of new functionality allowing users to upload 

attachments and make adjustments to grants all within the system.

Improve Productivity and Service across CNCS Using Technology

CNCS implemented a number of initiatives aimed at improving 

productivity and service across CNCS. Key accomplishments included:

• Expanding the data warehouse to include more data from across 

the organization and tools to make it easier to access and analyze, 

harnessing the power of CNCS’ data resources.

• Establishing a computer matching agreement with the Social Security 

Administration to automate validation of social security numbers and 

citizenship status on member applications.

• Upgrading Office productivity software and introducing new 

capabilities to support mobile computing. 

Follow IT Best Practices and Strive for Continuous Improvement

CNCS continued to apply best and innovative IT management practices 

to improve IT service delivery across the organization, including 

strengthening the agency’s IT governance and Capital Planning and 

Investment control processes. 

In addition to the highlights above, CNCS is also in the process of 

collecting and analyzing IT data related to Goal 4 of the agency’s 

Strategic Plan. Final measure data will be available in the agency’s 

FY 2013 Annual Performance Report.

 

CNCS refined plans to Modernize IT 

to better align and be more responsive 

to business needs and implemented 

enhancements to core grants 

management applications to meet 

strategic priorities.
Management’s Discussion & Analysis | PART I 24

The Corporation for National and Community Service

Financial Management Metrics

Since FY 2005, CNCS has measured its performance against a set of nine metrics known at that time as the U.S. CFO Council Government-wide 

Financial Management Metrics. For the majority of FY 2005, CNCS achieved “green” on only one out of nine (11 percent) of these metrics. Since then 

CNCS made significant strides in improving financial performance. For FY 2012, the yearly average of “green” scores was 83 percent. Performance in 

each of those individual metrics during FY 2012 is summarized as follows: 

Financial Management Metrics

Strategic Goal: Ensure fiscal accountability and promote efficiencies and transparency in financial operation

Performance Measure FY12 Target FY12 Actual

Fund Balance with Treasury (Metric 1) 100% 100%

Suspense Account Clearance and Accounts Receivable Delinquency (Metrics 2–3) 100% 100%

Percent of Vendor Payments by Electronic Funds Transfer (EFT) (Metric 4) 100% 100%

Percent of Vendor Payments Made on Time (Metric 5) 100% 100%

Late Payment Penalties Paid as a Percent of Total Vendor Payments (Metric 6) 100% 100%

Individually Billed Account Travel Card Timeliness (Metric 7) 100% 92%

Centrally Billed Travel Timeliness (Metric 8) 100% 42%

Purchase Card Timeliness (Metric 9) 100% 17%
Management’s Discussion & Analysis | PART I 25

The Corporation for National and Community Service

The measures above illustrate that CNCS continued to award and 

monitor grants effectively in FY 2012. In addition, CNCS matched or 

improved its actual performance on each of these measures between FY 

2011 and FY 2012.

Of particular note is the 22 percentage point increase in timely 

grant closures between FY 2011 and FY 2012, which likely has two 

main contributing factors. First, the FY 2011 performance level was 

significantly lower than CNCS anticipated due to operational challenges, 

creating an unexpectedly low base for year over year comparison. 

Second, CNCS adopted successful process improvements in FY 2012, 

which included re-sequencing grantmaking tasks.

CNCS High Priority Measures (Strategic Plan 2011–2015) 

Strategic Goal: Ensure fiscal accountability and promote efficiencies and transparency in financial operations

Performance Measure FY12 Target FY12 Actual 

Financial Statements: 

Prepare and publish audited financial statements covering CNCS operations within 45 days of fiscal On time; On time; 

years’ end and receive a clean audit opinion on annual financial statements Clean opinion Clean opinion

No material internal control weaknesses identified in the annual financial statement audit 0 1

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

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

Grantmaking

Award all grants before the budget period start date 85% 95%

Post all grant competition award data to the Internet within 90 days of completion of the award process1 85% TBD

Complete all grant-monitoring activities identified in the annual monitoring plan and follow up with 85% 88%

grantees where necessary

Close all grants within 180 days of the performance period end date 60% 61%

1. Actuals for this measure will be available in December 2012.
Management’s Discussion & Analysis | PART I 26

The Corporation for National and Community Service

Internal Controls, Audit Results, 

and Management Assurances

CNCS is subject to the reporting requirements of the Government 

Corporation Control Act (31 U.S.C. 9101 et. seq.). Under these 

requirements, CNCS provides a statement on its internal accounting 

and administrative controls consistent with the requirements of 

the amendments made by the Federal Managers’ Financial Act of 

1982 (FMFIA), (31 USC 3512, et seq.) and implemented by Office 

of Management and Budget (OMB) Circular A-123, Management’s 

Responsibility for Internal Control. The statement reflects CNCS’ 

assessment of whether there is reasonable assurance that internal 

controls are achieving the intended results, reports any material 

weaknesses in internal controls present within the agency, and 

describes management’s current plans to address and correct any 

deficiencies.

Internal Control Program

During FY 2012, CNCS continued to strengthen its internal control 

assessment, testing, and assurance program, which is modeled on OMB 

Circular A-123. These efforts included a modification to the internal 

control organizational structure intended to broaden its overall impact 

while focusing the Senior Assessment Team (SAT) more specifically on 

OMB Circular A-123, Appendix A, Controls over Financial Reporting. 

The modified structure includes the establishment of the OAO and 

the reconfiguration of the SAT to have as its members and supporting 

technical resource personnel with greater knowledge of processes that 

contribute to the reliability of CNCS financial reporting. As modifications 

were made, assessment and testing of internal controls initiated during 

previous fiscal years was continued.

CNCS’ internal control program is led by the OAO Director with 

significant support from the SAT. Senior managers from the offices 

of Inspector General (OIG), General Counsel (OGC), Information 

Technology (OIT), Human Capital (OHC), and the Office of Accountability 

and Oversight (OAO) also attend the meetings to provide technical 

support and agency-wide perspective to the SAT’s discussions and 

actions. The CNCS risk-based assessment approach gives priority for 

internal control reviews, including assessment and testing to specific 

organizational and functional areas where significant risks are known 

to exist. For example, CNCS’ Accounting, Field Financial Management, 

Grants Management, Human Capital, Procurement Services, Budget, 

and Information Technology offices are all considered high priority 

when developing the annual internal control testing plan. CNCS also 

continued to improve its grantees’ oversight and monitoring program 

using a risk-based approach.

Basis of FY 2012 Assessment

The CNCS internal control assessment is based on internal control 

reviews and other analyses of CNCS’ financial processes, program 

operations, and grantee monitoring including the following:

• Risk-based internal control review assessments and testing of key 

controls including:

1. Grants Management controls over special condition and Federal 

Financial Report reviews

2. Financial reporting controls over grants payable and advances to 

others

3. Field Liaison controls over Program Progress Reports

4. Human Capital controls over official personnel folder security, 

proper recording of holiday pay and follow-up related to master 

supervisor timesheet certifications

5. National Service Trust controls over payments to educational and 

financial institutions

6. Information Technology controls over user access accounts, timely 

deployment of new software releases, and accurate maintenance of 

hardware and software inventory

7. Field Financial Management controls over payment vouchers, credit 

card payments, travel vouchers, timeliness of grant awards, and 

reviews of Federal Financial reports.

8. Grants risk assessment accuracy and reliability for monitoring 

priorities

9. Grants monitoring plan execution for completeness, timeliness, 

and effectiveness

• In-Progress Reviews (IPR) at NCCC campuses – the IPR is a focused 

management control assessment that provides a self-assessment 

by campus staff, followed by an independent review by headquarters 
Management’s Discussion & Analysis | PART I 27

The Corporation for National and Community Service

staff. FY 2012 is the third year that all five campuses received an 

IPR. Review items include project management, Corps member 

management, operating inventories, and fiscal controls. Following the 

on-site review, a written report is prepared and campus staff develops 

corrective action plans in response to IPR recommendations.

• OIG reports, including the annual financial statement audit and recent 

audits of portions of CNCS’ operations.

• Continued development of the Key Control Database to document the 

most significant risks and mitigating controls at CNCS in one location.

In addition, management’s knowledge of CNCS’ day-to-day operations 

helps the agency to ensure that adequate controls are in place for all 

of the agency’s operations. These controls include announcement of 

funds available for grants, receipt and evaluation of applications for 

financial assistance, and negotiation and award of grants, contracts, 

and cooperative agreements. FY 2012 risk assessment testing priority 

decisions were influenced by the dollar volume of grant programs and 

findings associated with the FY 2011 financial statement audit.

In carrying out the internal control program, OAO considered the nature 

of each deficiency, the existence of compensating controls, the dollar 

value of transactions potentially affected by the deficiency, the level of 

risk, and the likelihood that an error may not be prevented or detected. 

Recommended corrective actions for the deficiencies were reviewed and 

CNCS’ progress in implementing them was monitored during FY 2012 to 

assure that appropriate corrective actions are taken.

Annual Financial Audit Results

Fiscal year 2012 marks the 13th consecutive year CNCS has earned an 

unqualified opinion on its financial statements. The audit also found 

no instance of noncompliance with laws and regulations. These results 

reflect CNCS’ commitment to sound financial management and the 

hard work by staff over the past year to continuously improve financial 

operations.

Security Assessment and Authorization

In accordance with federal law, OMB guidance and the NIST SP 

800-37, Guide for Applying the Risk Management Framework to 

Federal Information Systems, organizations are required to secure 

information and information systems within the federal government 

through the implementation of appropriate risk mitigation strategies. 

During FY 2012 CNCS enhanced the awareness of the security state 

of our information systems by prioritizing the monitoring frequencies 

of security controls deemed to have a significant impact on security 

(i.e., scanning eSPAN with a source code analyzer when changes 

are made to the code) and establishing assessment frequencies 

based on providing adequate security commensurate with the risk. 

These improvements support CNCS’ risk management decisions and 

situational awareness.

Management Assurances

Statement of Assurance for Financial Management Systems, 

Operations, and Compliance with Laws and Regulations

CNCS is responsible for establishing and maintaining effective internal 

control and financial management systems that meet the objectives 

of FMFIA. CNCS conducted its assessment of internal control over 

the effectiveness and efficiency of operations and compliance with 

applicable laws and regulations in accordance with OMB Circular 

A-123. Based on the results of its evaluation, CNCS provides reasonable 

assurance that its internal control over the effectiveness and efficiency 

of operations and compliance with applicable laws and regulations as of 

September 30, 2012, was operating effectively.

Statement of Assurance for Internal Control over Financial 

Reporting

The FY 2012 report on internal control reports a material weakness 

in financial reporting. Based on the results of its evaluation, CNCS 

provides reasonable assurance that its internal control over financial 

reporting as of September 30, 2012 was operating effectively and free of 

material weaknesses, except as noted in the following paragraph.

CNCS determined in reviewing the third quarter fiscal year 2012 

grant accrual that an incorrect file was used to estimate the accrual. 

The internal controls failed to detect the error prior to submitting 

third quarter financial data. CNCS immediately corrected the file and 

supplemented review controls to prevent future occurrences.
Management’s Discussion & Analysis | PART I 28

The Corporation for National and Community Service

Compliance with Financial Systems Requirements, Accounting 

Standards, and U.S. Standard General Ledger

The Federal Financial Management Improvement Act (FFMIA) requires 

federal agencies to implement and maintain financial management 

systems that are in substantial compliance with federal financial 

system requirements, federal accounting standards issued by the 

Federal Accounting Standards Advisory Board, and implementation 

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

at the transaction level. Pursuant with FFMIA, OMB issued Circular 

A-127, Financial Management Systems. Circular A-127 prescribes the 

policies and standards for agencies to follow in developing, operating, 

evaluating, and reporting on financial management systems.

CNCS utilizes Momentum Financials as its core financial system. 

Momentum Financials is a commercial off-the-shelf software 

application certified by the Office of Federal Financial Management as 

meeting the Circular A-127 financial system requirements. Activity is 

posted in Momentum Financials following the USSGL at the transaction 

level. Based on its review of central financial processes, CNCS 

determined that it complies substantially with the requirements of the 

FFMIA for FY 2012.

Certification of Trust Obligations

The National and Community Service Act of 1990 (NCSA), as amended 

by the Edward M. Kennedy Serve America Act (PL 111-13), establishes 

the specific criteria for estimating and recording obligations in the 

Trust. The NCSA also 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 timing and recording of obligations within 

the Trust, and to obtain an independent audit of the accounts and 

records demonstrating the manner in which CNCS has recorded its Trust 

estimates (see Section 149 of Public Law 101-610, 42 USC 12606). 

CNCS’ OIG obtained the independent audit required by the NCSA for 

FY 2012. Based on CNCS’ analysis and review of Trust activities and 

the results of OIG’s audit, CNCS certifies that it complied with these 

requirements for FY 2012.

David Rebich

Chief Financial Officer

Wendy Spencer

Chief Executive Officer

Robert Velasco II

Chief Operating Officer
Management’s Discussion & Analysis | PART I 29

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 2012 and 2011, CNCS’ financial statements received an unqualified 

opinion. This opinion recognized that CNCS’ financial statements are 

fairly presented, in all material respects in conformity with generally 

accepted accounting principles.

The consolidated financial statements beginning on page 35, report 

CNCS’ 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’ revenues and expenses for the year 

and the changes in net position that occurred during the year; and

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

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 95 percent 

of CNCS’ total assets are comprised of Fund Balance with Treasury and 

Trust Investments and Related Receivables.

In FY 2012, total assets increased three percent over the balance at the 

end of FY 2011. The majority of the $49.9 million increase occurred in 

the Fund Balance with Treasury account (FBWT) and 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 in FY 2012 

primarily results from advances collected to support new FEMA Corps 

related activity. 

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, and proceeds from the sale or redemption of 

investments. The account increased by $32.9 million reflecting the 

investment of FY 2012 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 CNCS enters into an 

enforceable agreement with an individual participant in the AmeriCorps 

VISTA and NCCC programs. The amount to be obligated is the estimated 

value of authorized education benefits, discounted for estimated 

enrollment, earning and usage rates, and the time value of money. 

CNCS has also set aside a Trust reserve of $50.1 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 2012, 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.

As of September 30, 2012, the National Service Trust had available 

cash, investments, and other assets of about $643.8 million to make 

education award and interest forbearance payments. Of this amount, 

CNCS’ unliquidated obligations for awarded AmeriCorps positions 

totaled about $201.3 million. 
Management’s Discussion & Analysis | PART I 30

The Corporation for National and Community Service

Fund Balance with Treasury 58%

Trust Investments and Related Receivables 38%

Advances to Others 3%

Accounts Receivable, Net 1%

Property and Equipment, Net 0%

CNCS Assets as of September 30, 2012

38%

3%

1%

0%

58%

About $10.5 million was available at year-end to fund new AmeriCorps 

member positions, of which $1.9 million derives from Recovery Act 

funding, which cannot be used without new authorization. Trust assets 

are estimated to be fully sufficient to pay for all awarded AmeriCorps 

positions. As grants expire, CNCS deobligates funds related to member 

positions that were not filled. CNCS also continuously analyzes Trust 

operations and liability projections to identify any needed adjustments 

to obligations.

Advances to Others mainly represent funds provided to grantees in 

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

advances are liquidated during the first quarter of the subsequent 

fiscal year. Advances to Others decreased by about 12 percent, from $65 

million at September 30, 2011 to $57 million at September 30, 2012, 

reflecting the decreased funding level for 2012 programs.

Composition of Corporation Liabilities

CNCS’ most significant liabilities are the Trust Service Award Liability 

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 

expenses at qualified educational institutions. The awards, which can be 

used for a period of up to seven years, are paid from the National Service 

Trust. From CNCS’ inception through FY 2009, the maximum amount of 

an education award was $4,725. Beginning with FY 2010, the SAA tied 

the amount of the award to the amount of a Pell Grant administered by 

the Department of Education. The award amount of $5,550 was in effect 

throughout FY 2012.

The Trust also pays forbearance interest on qualified student loans 

during the period members perform community service. Each year the 

award liability components related to education awards and interest 

forbearance are adjusted to reflect current trends. For FY 2012, the Trust 

Service Award Liability increased by $36.9 million, about nine percent, 

due to the continued enrollment of members in AmeriCorps programs, 

increased member enrollment related to FEMA Corps, and a slight 

increase in the projected usage rate.
Management’s Discussion & Analysis | PART I 31

The Corporation for National and Community Service

2%

6%

1%

2%

CNCS Liabilities as of September 30, 2012 

Trust Service Award Liability 73%

Grants Payable 16%

Actuarial FECA Liability 2%

Advances from Others 6%

Accrued Annual Leave 1%

Other Liabilities 2%

Accounts Payable 0%

16%

73%

Grants Payable represents funds due to grantees in payment of their 

performance under a grant. For the most part, these payables are 

liquidated during the first quarter of the subsequent fiscal year.

Grants Payable decreased by about 13.3 percent, from $116.3 million at 

September 30, 2011 to $100.8 million at September 30, 2012, reflecting 

the decreased funding level for 2012 programs.

Advances from Others represent the receipt of cash for work to be 

performed at a future date. CNCS collected $33.7 million during FY 2012 

primarily in support of FEMA Corps related activity. 

Results of Operations

The Statement of Operations and Changes in Net Position presents 

revenue earned by CNCS (primarily appropriations) and the annual cost 

of operating CNCS programs. CNCS recognizes its use of appropriated 

capital as revenue at the time it is expended or accrued to 

pay program or administrative expenses. Appropriations received for the 

CNCS Trust are recognized as revenue when received in the Trust Fund. 

Using an appropriate cost accounting methodology, CNCS’ expenses 

have been allocated among its major programs, at the sub-program 

level. Costs for each major CNCS program are reported separately. 

Program costs include grant expenses, and direct and allocated 

personnel and administrative costs including AmeriCorps recruitment 

and National Service Trust operations.

For FY 2012, CNCS Revenue totaled $1.074 billion, a decrease of $39.8 

million, or 4 percent, from FY 2011. Total Expenses reported for FY 2012 

were $1.073 billion which represents a decrease of $25.4 million, or 2 

percent, from FY 2011. The decrease reflects the reduced funding level 

in FY 2012 for all of CNCS’ programs.

0%
Management’s Discussion & Analysis | PART I 32

The Corporation for National and Community Service

3%

2%

0%

CNCS Expenses for the Period Ended September 30, 2012

AmeriCorps 74%

Office of the Inspector General 0%

Senior Corps 21%

Innovation, Demonstration, and Assistance 3%

Learn and Serve America 2%

21%

74%

CNCS’ net revenue over expenses for FY 2012 was $1.2 million which 

is a decrease of $14.4 million compared to FY 2011. The decrease is 

primarily attributable to reduced funding in FY 2012 for all of CNCS’ 

programs.

Budgetary Resources

The Statement of Budgetary Resources provides information on how 

budgetary resources were made available to CNCS for the year and the 

status of those budgetary resources at year-end. For FY 2012, Total 

Budgetary Resources increased $24.7 million primarily due to advances 

collected to support new activity related to FEMA Corps. In contrast, 

total Obligations Incurred in FY 2012 decreased by $23.7 million due to 

reduced funding in FY 2012 across all CNCS programs.

Future Business Trends and Events

CNCS is continuously faced with increased expectations for oversight, 

transparency, and accountability. To meet these expectations, CNCS 

takes a broad view of financial management, seeking to continuously 

improve and integrate its financial operations and processes at 

the systems and program support level and beyond. As we monitor 

resources, we will continue to focus on discerning the value of the goods 

and services we get in return for our expenditures. Some of the areas 

CNCS will focus on in both the immediate and long-term future include:

• Grants Process Improvements. CNCS uses a continuous improvement 

strategy to assess current management systems in the area of grants 

process. The goal of this strategy is to provide more effective and 

efficient grants management services to the public. Our partnership 

with the Health and Human Services Payment Management System 

provides effective cash management approaches for grantees. As the 

HHS system is upgraded, we also hope to integrate grant expense data 

from the HHS system with our eGrants system. From a compliance 

standpoint, our system is integrated with the Central Contractor 

Database and we utilize the A-133 Clearinghouse for audit finding 

resolution. 

• Data Security. CNCS values the trust placed in it by programs, 

participants, and others interested in national and community service. 

During FY 2012, CNCS completed vulnerability scanning of publicfacing elements of CNCS systems. Scan results indicating a high risk 

for possible data exposure were expeditiously addressed. CNCS also 

continues to scan new and revised software code to ensure that new 

vulnerabilities are not introduced into CNCS systems.

• eGrants System Enhancements. CNCS is enhancing its eGrants 

system capability to collect, store, and retrieve new performance 

measurement data related to the new agency Strategic Plan; allow 
Management’s Discussion & Analysis | PART I 33

The Corporation for National and Community Service

supporting documents to be stored electronically in support of 

recordkeeping and audit requirements; and streamline the process 

for supporting grant continuations and amendments. These 

enhancements will significantly contribute to agency accountability 

and improve staff productivity.

• Computer Matching. CNCS has implemented a computer matching 

agreement with the Social Security Administration to validate Social 

Security Numbers and citizenship status for membership applications. 

This will speed the application review process and reduce staff work 

hours required for review.

• Data Warehouse. CNCS has implemented and continues to evolve 

a Data Warehouse capability to provide an increasing range of 

information reports based on data contained in agency grants and 

member management systems. In addition to producing the annual 

State Profiles report, the Data Warehouse has been instrumental in 

supporting agency outreach initiatives and internal management 

reviews and decisions.

• IT Modernization. CNCS is updating its plans for IT modernization to 

incorporate new technology and functionality needed to support the 

CNCS Strategic Plan. The plan will provide a set of projects (each 

of which has a duration of 180 days or less and will provide benefits 

immediately on implementation) that would be implemented over a 

three year period, depending on availability of funds. Key objectives 

include:

• Providing more accurate, timely and targeted information for 

agency decision makers, partners, and the public,

• Increasing agency engagement with the public through enhanced 

web site features and mobile-friendly applications, and

• Increased staff and grantee productivity through streamlining 

navigation and functionality of grants and member management 

systems.

• Financial System Upgrade. CNCS utilizes a state of the art 

commercial off-the-shelf accounting system, Momentum Financials, 

to manage its core financial activities. Momentum Financials was 

implemented and continues to be maintained without customization in 

order to minimize risks associated with systems development efforts. 

During FY 2013, CNCS will upgrade the system to a current version in 

order to be compliant with the GTAS Treasury initiative, have continued 

vendor maintenance, and improve internal controls and efficiencies. 

The upgrade will begin in January of 2013 and be completed by 

March 2013. Momentum Financials is hosted in a “cloud computing” 

environment.

In addition, CNCS will be implementing an interface to the Treasury IPP 

system (Invoice Processing Platform) in order to improve the efficiency, 

timeliness, and compliance of invoice payments. 

• Budget Integration. During 2012, CNCS restructured its budget 

organization in an effort to consolidate the formulation and execution 

functions. The new structure will increase the level of support the 

budget organization provides to the CNCS program offices, while 

developing a more knowledgeable and better trained staff that 

understands the CNCS budget from formulation through execution.

• Electronic Official Personnel Folder (EOPF). CNCS is moving the 

EOPF initiative that will result in many benefits to the agency and 

more importantly CNCS employees. The EOPF will provide greater 

security over employee personnel records while also allowing greater 

access to employees monitoring records. This initiative will also 

improve the processing time of personnel actions.

• Open Government. CNCS continues to foster unprecedented levels 

of accountability and transparency in government spending. 

CNCS’ Open Government Plan has greatly enhanced the principles 

of transparency, participation, and collaboration that form the 

cornerstone of an open government into agency operations.
Financial Statements | PART II 34

The Corporation for National and Community Service

Financial Statements

A member of Vet Corps rebuilds a house.
Financial Statements | PART II 35

The Corporation for National and Community Service

Message from the CFO

The Office of the Chief Financial Officer leads CNCS’ efforts for fiscally sound, cost-effective 

program delivery. Our efforts are supported by reliable financial management information, sound 

infrastructure, and knowledgeable financial management staff. Because we are accountable to 

the taxpayers, we strive to provide efficient and cost effective national service programs. The 

CNCS Agency Financial Report presents a comprehensive report on CNCS’ financial operations and 

provides transparency and accountability to the American people. I am pleased to report that CNCS 

received an unqualified opinion on its consolidated financial statements for the 13th consecutive 

year, thus demonstrating an on-going commitment to strong fiscal stewardship. 

I am pleased to report that CNCS continues to provide outstanding national service and 

volunteerism programs that seek to expand economic opportunity for individuals and families and 

create more resilient and sustainable communities. 

In keeping with CNCS’ focus on strong financial management practices under goal 4 of its Strategic 

Plan, during FY 2012 CNCS:

• Began to implement the first ever competition in the grant awarding process for Senior Corps’ 

RSVP program. Competition can reward the best applicants strengthening programs and 

increasing accountability. In the longer term, competition along with new national performance 

measures will link program funding to outcomes.

• Established the Office of Accountability and Oversight to coordinate agency risk management and implement a robust internal control assessment 

and improvement program. An active and robust Internal controls assessment and improvement program is critical to ensuring that CNCS 

manages efficient and productive programs that are funded through taxpayer dollars. 

• Partnered with the Federal Emergency Management Agency (FEMA) on the FEMA Corps program. FEMA Corps is an innovative partnership between 

FEMA and CNCS to enhance disaster response and recovery capacity while expanding career opportunities for young people.

• Filled critical positions in CNCS’ Financial Management operations that are essential to implementing sound financial management and internal 

control programs. In particular, CNCS filled the CFO position, the Budget Director position, and created and filled the Director for Accountability 

and Oversight position.

• Enhanced financial management training for grantees.

• Eliminated three management letter findings associated with financial reporting and eight management letter findings associated with Information 

Technology.

These accomplishments provide the foundation for sound financial management. However, work done by the Inspector General and external auditors 

illuminated areas where we can continue to do better. CNCS is committed to take action and implement processes that will improve internal controls 

and maximize CNCS’ stewardship of appropriated resources. 
Financial Statements | PART II 36

The Corporation for National and Community Service

CNCS is committed to streamlining and improving its fiscal operations to meet the goals outlined by the President. In meeting these challenges 

CNCS will continue to practice strong financial management as shown through the information provided in this year’s Agency Financial Report.

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.

David Rebich

Chief Financial Officer
Financial Statements | PART II 37

The Corporation for National and Community Service

Consolidated Financial 

Statements

CNCS’ consolidated financial statements report its financial position, 

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

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

13331, National and Community Service Programs. The Act requires 

that government corporations submit an annual report including the 

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

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’ revenues and expenses for the year 

and the changes in net position that occurred during the year; and

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

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) 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’ financial statements provide comparative information for 

FY 2012 and 2011. For FY 2012, CNCS’ financial statements, for the 

13th consecutive year, received an unqualified opinion. This opinion 

recognizes that CNCS’ financial statements are fairly presented, 

in all material respects in conformity with generally accepted 

accounting principles. 

Limitations of the Financial Statements

The principal financial statements have been prepared in compliance 

with the reporting requirements described above. CNCS’ 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 38

The Corporation for National and Community Service

Corporation for National and Community Service 

Consolidated Statements of Financial Position as of September 30 

(dollars in thousands) 

 

ASSETS 2012 2011

Fund Balance with Treasury (Note 2) $ 965,928 $ 942,870 

Trust Investments and Related Receivables (Note 3) 638,565 605,661 

Advances to Others 57,298 64,942 

Accounts Receivable, Net (Note 4) 8,483 7,607 

Property and Equipment, Net (Note 5) 1,610 926 

 Total Assets $ 1,671,884 $ 1,622,006 

LIABILITIES 

Trust Service Award Liability (Note 6) $ 447,191 $ 410,261 

Grants Payable 100,791 115,197 

Accounts Payable 2,860 3,701 

Actuarial FECA Liability (Note 8) 9,783 9,092

Advances from Others 33,696 67

Accrued Annual Leave 4,140 4,121 

Other Liabilities 14,220 10,348 

 Total Liabilities $ 612,681 $ 552,787 

Contingencies (Note 14)

NET POSITION (Note 9) $ 1,059,203 $ 1,069,219 

Total Liabilities and Net Position $ 1,671,884 $ 1,622,006 

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

The Corporation for National and Community Service

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 2012 2011 

Appropriated Capital Used $ 824,684 $ 883,872 

Appropriations Received by the National Service Trust (Note 10) 211,916 201,200 

Interest 4,434 4,669 

Revenue from Services Provided 18,834 12,049 

Other 13,953 11,839 

 Total Revenue $ 1,073,821 $ 1,113,629 

EXPENSES 

AmeriCorps $ 792,475 $ 807,960 

Senior Corps 222,315 237,348 

Learn & Serve America 17,801 33,261 

Innovation, Demonstration and Assistance Activities 34,748 11,464 

Office of the Inspector General 5,241 8,001 

 Total Expenses (Note 11) $ 1,072,580 $ 1,098,034 

Net of Revenue Over Expenses $ 1,241 $ 15,595

NET POSITION 

Net of Revenue over Expenses $ 1,241 $ 15,595

Increase/(Decrease) in Unexpended Appropriations, Net (Note 13) (11,257) (58,992) 

Increase/(Decrease) in Net Position, Net (10,016) (43,397) 

Net Position, Beginning Balance 1,069,219 1,112,616 

Net Position, Ending Balance (Note 9) $ 1,059,203 $ 1,069,219

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

The Corporation for National and Community Service

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 2012 2011

Net of Revenue over Expenses $ 1,241 $ 15,595

Adjustments Affecting Cash Flow:

 Depreciation, Amortization, and Loss on Disposition of Assets 88 203 

 Amortization of Premium/Discount on Investments (2,811) 1,137 

 Appropriated Capital Used (824,684) (883,872)

 Appropriations Received in Trust (211,916) (201,200)

 Decrease/(Increase) in Accounts Receivable (876) (3,824)

 Decrease/(Increase) in Interest Receivable 385 299 

 Decrease/(Increase) in Advances to Others 7,644 17,698

 Increase/(Decrease) in Accounts Payable and Other Liabilities 3,031 (3,676)

 Decrease/(Increase) in Advances to Others 33,629 – 

 Increase/(Decrease) in FECA and Annual Leave Liabilities 710 (3,042) 

 Increase/(Decrease) in Trust Liability 36,930 30,383

 Increase/(Decrease) in Grants Payable (14,406) (9,417) 

 Total Adjustments (972,277) (1,055,311)

Net Cash Provided/(Used) by Operating Activities $ (971,035) $ (1,039,716)

CASH FLOWS FROM INVESTING ACTIVITIES 

Sales of Securities 831,264 749,891 

Purchase of Assets (772) – 

Purchase of Securities (861,742) (791,793)

Net Cash Provided/(Used) in Investing Activities $ (31,250) $ (41,902)

CASH FLOWS FROM FINANCING ACTIVITIES 

Appropriations Received 1,050,870 1,077,733

Rescissions and Cancellations (25,527) (51,653)

Net Cash Provided by Financing Activities $ 1,025,343 $ 1,026,080 

Net Increase/(Decrease) in Fund Balance with Treasury $ 23,058 $ (55,538) 

Fund Balance with Treasury, Beginning $ 942,870 $ 998,408

Fund Balance with Treasury, Ending $ 965,928 $ 942,870 

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

The Corporation for National and Community Service

Corporation for National and Community Service 

Combined Statements of Budgetary Resources for the Periods Ended 

September 30 (dollars in thousands)

BUDGETARY RESOURCES 2012 2011

Unobligated balance, brought forward, October 1 $ 156,728 $ 155,307

Recoveries of prior year unpaid obligations 28,175 53,606

Cancelled Authority (23,541) (49,507)

Refunds and Recoveries temporarily precluded from obligations (5) –

(special and trust funds)

Unobligated balance from prior year budget authority, net 161,357 159,406

Budget authority: 

Appropriation Discretionary 1,050,870 1,077,733

Appropriation (special or trust fund) 212,122 201,529

Permanent Reduction – New Budget Authority (1,986) (2,146)

Appropriation Discretionary (total) 1,261,006 1,277,116

Appropriation Mandatory (special or trust fund) 3,856 6,818

Appropriations (discretionary and mandatory) 1,264,862 1,283,934

Spending authority from offsetting collections: 

Collected 54,980 12,169

Change in uncollected customer payments from Federal sources (433) 540

Spending Authority from offsetting collections (total) 54,547 12,709

Total budgetary resources $ 1,480,766 $ 1,456,049 

STATUS OF BUDGETARY RESOURCES 

Obligations incurred

Direct $ 1,255,712 $ 1,288,240

Reimbursable 19,949 11,081

Obligations incurred (total) 1,275,661 1,299,321

Unobligated balance 

Apportioned 35,030 70,623

Unobligated balance not available 170,075 86,105

Total unobligated balance, end of year 205,105 156,728

 

Total status of budgetary resources $ 1,480,766 $ 1,456,049 

 (Continued)

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

The Corporation for National and Community Service

 (Continued)

Corporation for National and Community Service 

Combined Statements of Budgetary Resources for the Periods Ended 

September 30 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2012 2011

Unpaid obligations, brought forward, October 1 $ 1,387,883 $ 1,400,061

Uncollected customer payments from federal sources,

brought forward October 1 (539) -

Total obligated balance, start of year (net) $ 1,387,344 $ 1,400,061

Obligations incurred 1,275,661 1,299,321

Outlays (gross) (-) (1,241,372) (1,257,893)

Change in uncollected customer payments from federal sources 433 (540)

Recoveries of prior year unpaid obligations, actual (28,175) (53,606)

Obligated balance, end of period $ 1,393,891 $ 1,387,343

Unpaid obligations $ 1,393,997 $ 1,387,883

Uncollected customer payments from federal sources (106) (540)

Total unpaid obligated balance, net, end of period $ 1,393,891 $ 1,387,343

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) 1,319,409 1,296,643 

Actual offsetting collections (54,980) (12,169)

Change in uncollected customer payments from federal sources 433 (540)

Budget authority, net (discretionary and mandatory) $ 1,264,862 $ 1,283,934

Outlay, gross (discretionary and mandatory) 1,241,372 1,257,893

Actual offsetting collections (54,980) (12,169)

Outlays, net (discretionary and mandatory) $ 1,186,392 $ 1,245,724 

Distributed offsetting receipts (213,058) (202,076)

Agency Outlays, net (discretionary and mandatory) $ 973,334 $ 1,043,648

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 43

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies

A. REPORTING ENTITY

The Corporation for National and Community Service (CNCS) was created 

by the National and Community Service Trust Act of 1993 (Public Law 

103-82). CNCS’ mission is to improve lives, strengthen communities, 

and foster civic engagement through service and volunteering. To meet 

its mission, CNCS provides grants and other assistance to states, 

local municipalities, and nonprofit organizations to help communities 

meet critical challenges in the areas of education, healthy futures, 

environmental stewardship, economic opportunity, disaster services, 

and assisting veterans and military families through volunteer service. 

CNCS’ major programs are:

Senior Corps. Senior Corps offers a network of programs that tap 

into the rich experience, skills and talents of older citizens to meet 

community challenges. Senior Corps is comprised of the RSVP, the 

Foster Grandparent Program, and the Senior Companion Program.

AmeriCorps. AmeriCorps provides opportunities for Americans to make 

an ongoing, intensive commitment to service through the following programs:

• State, National, Tribes, and Territories (State and National) offers 

grants supporting a broad range of local service programs that 

engage thousands of Americans in intensive service to meet critical 

community needs;

• Volunteers in Service to America (VISTA) helps community 

organizations and public agencies create and expand programs 

that build capacity and ultimately bring low-income individuals and 

communities out of poverty; and

• National Civilian Community Corps (NCCC) strengthens communities 

while developing leaders through direct, team-based national and 

community service.

CNCS, for the most part, administered its programs in fiscal year 2012 

from the following funds:

Trust and Gift Funds:

• National Service Trust (the Trust), from which CNCS provided 

education awards and interest forbearance for volunteers under the 

AmeriCorps State and National; NCCC; and VISTA programs.

• Gifts and Contributions, into which CNCS deposited qualified gifts and 

contributions from individuals and organizations from which approved 

expenditures are made furthering CNCS’ goals.

Appropriated Funds:

• Operating Expenses, from which the Corporation funded Senior Corps, 

AmeriCorps and other program activity.

• Salaries and Expenses, from which the Corporation funded its general 

administrative expenses.

• Office of Inspector General, from which CNCS funded the expenses of the OIG.

• VISTA Advance Payment Revolving Fund, from which CNCS paid 

the living allowances for VISTA members enrolled under cost share 

agreements with sponsoring organizations. CNCS is reimbursed for 

these costs by the sponsoring organization. Despite the account title, 

the VISTA Advance Payment Revolving Fund is not a revolving fund, 

but rather a general fund expenditure account.

On February 17, 2009, the President signed into law the American Recovery 

and Reinvestment Act of 2009 (Recovery Act). The Recovery Act included 

funding for the use of CNCS to support an expansion of the AmeriCorps 

State and National and VISTA programs. As a result of the passage of 

the Recovery Act, three additional appropriated funds were established:

• Operating Expenses, Recovery Act, from which CNCS funded the 

increased AmeriCorps State and National and VISTA membership as a 

result of the Recovery Act.

• Salaries and Expenses, Recovery Act, which funded CNCS’ expenses 

to improve IT systems and administer the increased AmeriCorps State 

and National and VISTA memberships.

• Office of Inspector General, Recovery Act, from which CNCS funded the 

expenses of the OIG’s Recovery Act oversight responsibilities.

B. BASIS OF ACCOUNTING

The accompanying financial statements include all funds administered 

by CNCS, as delineated in Note 1A– Reporting Entity. They include CNCS’ 

activities related to providing grants and other assistance to eligible 

states, local governments, and nonprofit organizations as well as 

education awards to eligible national service participants. All significant 

intra-entity transactions and balances are eliminated in consolidation.
Financial Statements | PART II 44

The Corporation for National and Community Service

C. FINANCIAL STATEMENT PRESENTATION AND CONSOLIDATION 

POLICY

The accompanying financial statements report CNCS’ financial position, 

results of operations, and cash flows, as required by the Government 

Corporation Control Act (GCCA). As required by GCCA, the principal 

financial statements of CNCS are the:

• Statement of Financial Position, which reports the status of 

Corporation assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position, which reports 

CNCS’ revenues and expenses for the year and the changes in net 

position that occurred during the year; and

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities.

The financial statements are presented in accordance with the 

accounting principles generally accepted in the United States of 

America (GAAP), as applicable to federal government corporations. The 

Federal Accounting Standards Advisory Board (FASAB) is the standard 

setting body for the federal government. Statement of Federal Financial 

Accounting Standards Number 34 (SFFAS 34) provides that financial 

statements prepared by certain government corporations in conformity 

with the accounting standards issued by the Financial Accounting 

Standards Board (FASB) are regarded as being in conformity with 

GAAP. As provided by SFFAS 34, where there is no standard issued by 

FASB applicable to the federal corporation the financial statements are 

presented in accordance with the accounting standards issued 

by FASAB.

In addition, under Executive Order 13331, National and Community 

Service Programs, CNCS must prepare a Combined Statement of 

Budgetary Resources as a principal statement. The accompanying 

Combined Statements of Budgetary Resources have been prepared in 

accordance with GAAP, as prescribed by FASAB.

CNCS’ consolidation policy requires the consolidation of all funds 

administered by CNCS, as delineated in Note 1A – Reporting Entity.

D. BUDGETS AND BUDGETARY ACCOUNTING

The activities of CNCS are primarily funded through the annual, 

Departments of Labor, Health and Human Services, Education and 

Related Agencies Appropriation Act. CNCS’ accounting structure 

reflects both accrual and budgetary accounting transactions. Under the 

accrual method of accounting, revenues are recognized when earned 

and expenses are recognized when incurred, without regard to the 

actual collection or payment of cash. Federal budgetary accounting 

recognizes the obligation of appropriations and other funds upon the 

establishment of a properly documented legal liability, which, in many 

cases, is different from the recording of an accrual-based transaction. 

The recognition of budgetary accounting transactions is essential for 

compliance with legal controls over the use of federal funds.

E. ASSET AND LIABILITY VALUATION

CNCS values its investments at carrying value and discloses fair value. 

As of September 30, 2012, the carrying amounts of Fund Balance with 

Treasury, Accounts Receivable, Advances to Others, Accrued Interest 

Receivable, Accounts Payable, and Other Liabilities approximate their 

fair value.

F. FUND BALANCE WITH TREASURY

CNCS considers Fund Balance with Treasury (FBWT) to represent cash 

and cash equivalents. It is CNCS’ cash accounts with the Department 

of the Treasury (the Treasury). The Treasury processes cash receipts and 

disbursements on behalf of CNCS and CNCS’ accounting records are 

reconciled with those of the Treasury on a regular basis. CNCS’ FBWT 

includes all of its appropriated and trust funds.

The FBWT maintained in the National Service Trust is restricted to 

specific purposes, such as paying service awards earned by eligible 

participants, and is not available for use in the current operations of 

CNCS. In addition, the majority of the funds received from individuals 

and organizations for deposit in the Gifts and Contributions fund are 

restricted for particular uses, such as service projects.

G. INVESTMENTS AND RELATED RECEIVABLES

By law, CNCS may invest the funds of the National Service Trust in 

interest-bearing Treasury securities guaranteed by the United States 

as to principal and interest. These Treasury securities are referred to as 

“market-based,” since they mirror actual Treasury securities sold on the 

open market. They consist of Treasury notes, bonds, bills and one-day 

certificates.
Financial Statements | PART II 45

The Corporation for National and Community Service

Since they are expected to be held-to-maturity, CNCS’ investments 

are valued at cost and adjusted for the amortization of premiums and 

discounts. The premiums and discounts are recognized as adjustments 

to interest income, using the effective interest method. Interest 

receivable represents amounts earned, but not received on investments 

held at year-end. Prepaid interest is the amount of interest earned on 

a security since the date of its last interest payment, up to the date 

the security is purchased by CNCS. Such interest, if any, at year-end is 

included in the interest receivable balance.

H. ADVANCES TO OTHERS

CNCS advances funds to non-federal entities, primarily in response 

to grantee drawdown requests, to facilitate their authorized service 

activities. The cash payments to grantees, in excess of amounts 

appropriately expended under the terms of the grant agreements, 

are accounted for as advances. At the end of the fiscal year, the total 

amount 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.

I. ACCOUNTS RECEIVABLE

Accounts receivable represents amounts due to CNCS primarily under 

federal and non-federal reimbursable agreements, grantee audit 

resolution determinations, and outstanding travel advances due from 

employees. An allowance for doubtful accounts is established for 

reporting purposes based on past experience.

J. PROPERTY AND EQUIPMENT

Property and Equipment is stated at full cost, including all costs related 

to acquisition, delivery, and installation, less accumulated depreciation 

(or amortization). Normal maintenance and repair costs on capitalized 

property and equipment are expensed when incurred.

CNCS’ general policy is to capitalize Property and Equipment if 

the initial acquisition price is $50 thousand or more. Property and 

Equipment with an estimated useful life that extends beyond the year 

of acquisition is capitalized at historical cost and is depreciated (or 

amortized) on a straight-line basis over estimated useful lives ranging 

from two to 10 years, using the half-year convention.

K. TRUST SERVICE AWARD LIABILITY

The Trust Service Award Liability represents unpaid earned, and 

expected to be earned, education awards and eligible student loan 

interest forbearance costs expected to be used. These amounts relate to 

participants who have completed service or are currently enrolled in the 

program and are expected to earn an award, based on CNCS’ historical 

experience.

L. GRANTS PAYABLE

CNCS awards grants to nonprofit organizations, educational institutions, 

states, municipalities, and other external organizations. Grants become 

budgetary obligations, but not liabilities, at the time they are awarded.

 Although most grantees request funds prior to incurring expenses, 

some incur expenditures prior to initiating a request for disbursement, 

based on the nature of the expenditures. At the end of the fiscal 

year, 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 amounts actually disbursed to grantees in 

the third quarter.

M. ACCOUNTS PAYABLE

CNCS records as liabilities all amounts that are likely to be paid as 

a direct result of a transaction or event that has already occurred. 

Accounts payable represents amounts due to external entities for 

goods and services received by CNCS, but not paid for at the end of 

the fiscal year.

N. ACTUARIAL FECA LIABILITY

The Federal Employees’ Compensation Act (FECA) provides income and 

medical cost protection to covered federal civilian employees, NCCC 

and VISTA members injured on the job, employees who have incurred 

a work-related occupational disease, and beneficiaries of employees 

whose death is attributable to a job-related injury or occupational 

disease. Claims incurred for benefits for CNCS employees and members 

under FECA are determined and paid by the Department of Labor 

(DOL) and later billed to CNCS. CNCS’ actuarial liability for workers’ 

compensation includes costs incurred, but unbilled as of year-end, as 

calculated by DOL. CNCS reimburses DOL for FECA claims out of current 

appropriations upon receipt of a bill from DOL.
Financial Statements | PART II 46

The Corporation for National and Community Service

O. OTHER LIABILITIES

Other liabilities include amounts owed but not paid at the end of the 

fiscal year for payroll and benefits, VISTA stipends, the amount of 

claims for benefits for CNCS employees under FECA that have been paid 

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 by an Office of Personnel Management calculation.

P. ACCRUED ANNUAL LEAVE

Annual leave is accrued as a liability based on amounts earned but not 

used as of the fiscal year-end. Each year, the balance in the accrued 

annual leave account is adjusted to reflect current year pay rates and 

leave balances. Annual leave is funded from current appropriations 

when used. As unused annual leave is used in the future, financing will 

be obtained from appropriations current at that time. Sick leave and 

other types of non-vested leave are also expensed when used. 

Q. ADVANCES FROM OTHERS

Advances from others consist of advances from other federal agencies 

and the public related to interagency and cost share agreements into 

which CNCS entered to provide services.

R. NET POSITION

Net Position represents Net Assets. It is comprised of CNCS’ unexpended 

appropriations and its cumulative results of operations. Unexpended 

appropriations reflect the balance of appropriated authority granted to 

CNCS against which no outlays have been made. Cumulative results of 

operations represent the net differences between revenues and expenses 

from the inception of CNCS.

S. REVENUE RECOGNITION

Appropriated Capital Used. CNCS recognizes its use of appropriated 

capital as revenue at the time it is expended or accrued to pay program 

or administrative expenses. Appropriations expended for property and 

equipment are recognized as used when the property is purchased. 

Appropriated capital not expended within five fiscal years after it 

became available for obligation is cancelled. Unpaid obligations 

recorded against cancelled appropriated capital are paid from currently 

available appropriated funds as payments become due. Appropriations 

received for CNCS’ Trust are recognized as revenue when received in the 

Trust Fund. Trust appropriations do not expire with the passage of time 

and are retained by CNCS in the Trust until used for eligible education 

service award purposes.

Interest on Investments. Interest income is recognized when earned. 

Treasury notes and bonds pay interest semi-annually, based on the 

stated rate of interest. Interest on Treasury bills is paid at maturity. 

Interest income is adjusted by amortization of premiums and discounts 

using the effective interest method.

Revenue from Services Provided. CNCS also receives income from 

reimbursable service agreements that is recorded as revenue from 

services provided. Revenue from services provided is recognized when 

earned, i.e., goods have been delivered or services rendered.

Gifts and Donations. Revenue is recognized at the time gifts and 

donations are received and deposited in the Treasury to the credit of the 

Gifts and Contributions Fund.

T. RETIREMENT BENEFITS

CNCS’ employees participate in either the Civil Service Retirement 

System (CSRS) or the Federal Employees Retirement System (FERS). 

FERS was established by the enactment of Public Law 99-335.

Pursuant to this law, FERS and Social Security automatically cover most 

employees hired after December 31, 1983. Employees hired prior to 

January 1, 1984 elected to join FERS and Social Security or remained in 

the CSRS.

For employees covered by CSRS, CNCS contributes seven percent of their 

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 four percent of 

pay, for a maximum Corporation contribution amounting to five percent 

of pay. Employees under CSRS may participate in the TSP, but will not 

receive either CNCS’ automatic or matching contributions.

U. 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.

V. USE OF ESTIMATES

The preparation of financial statements in accordance with GAAP 

requires CNCS to make estimates and assumptions about future events. 

These estimates and assumptions affect the amounts reported in 
Financial Statements | PART II 47

The Corporation for National and Community Service

CNCS’ financial statements and accompanying notes. CNCS evaluates 

its estimates and assumptions on an ongoing basis using historical 

experience and other factors that it believes to be reasonable under 

the circumstances. Adjustments to estimates and assumptions are 

made when facts and circumstances warrant. As future events and 

their effects cannot be determined with certainty, actual results could 

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.

W. RECLASSIFICATIONS

Certain prior year amounts have been reclassified to conform to 

current year presentation and better reflect CNCS’ operations under 

its reauthorization. Specifically, the Statement of Budgetary Resources 

was realigned as prescribed by FASAB. In addition, Advances from 

Others was reclassified from Other Liabilities resulting from FEMA Corps 

activities and Accounts Payable - Other was reclassified from Grants 

Payable to Accounts Payable.

X. CONCENTRATION OF RISKS

Congress annually considers whether to fund CNCS’ program and 

operational activities. Should Congress opt not to enact appropriations 

to fund them, CNCS would be unable to continue operations. However, 

for fiscal year 2012 Congress did not fund the Learn & Serve America 

program and CNCS does not anticipate that additional funding will be 

enacted in the future. Corporation management believes the risk of such 

an occurrence is remote.
Financial Statements | PART II 48

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 U.S. Department of Treasury. The Fund Balance with Treasury line 

on the Statement of Financial Position consists of the following:

Appropriated Funds—Appropriated funds are received through 

congressional appropriations to provide financing sources for CNCS’ 

programs on an annual, multi-year, and no-year basis.

Trust Funds—Trust funds are accounts designated by law for receipts 

earmarked for specific purposes and for the expenditure of these 

receipts. Funds from the National Service Trust may be expended for 

the purpose of providing an education award or student loan interest 

forbearance payment and are made directly to a qualified institution 

(college, university, or other approved educational institution, or a 

lending institution holding an existing student loan) as designated by 

the participant. The National Service Trust also pays awards under the 

President’s Freedom Scholarship, Summer of Service, and Silver Scholar 

programs.

Gift Funds—Gift Funds are funds received from individuals and 

organizations as donations in furtherance of the purposes of national 

service laws.

Fund Balance with Treasury as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 960,310 $ - $ 960,310 

Trust Funds - 4,951 4,951 

Gift Funds - 667 667 

Total $ 960,310 $ 5,618 $ 965,928 

Fund Balance with Treasury as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 941,944 $ - $ 941,944 

Trust Funds - 361 361

Gift Funds - 565 565

Total $ 941,944 $ 926 $ 942,870 

Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 960,310 $ 5,618 $ 965,928 

Investments - 638,565 638,565 

Total $ 960,310 $ 644,183 $ 1,604,493
Financial Statements | PART II 49

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury—Continued

Status of Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 130,960 $ 79,642 $ 210,602 

 Unavailable - - - 

Obligated not yet Disbursed 829,350 564,541 1,393,891 

Total $ 960,310 $ 644,183 $ 1,604,493

Unexpended Balances as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 941,944 $ 926 $ 942,870

Investments - 605,661 605,661 

Total $ 941,944 $ 606,587 $ 1,548,531

Status of Unexpended Balances as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 97,219 $ 13,771 $ 110,990 

 Unavailable - 50,197 50,197 

Obligated not yet Disbursed 844,725 542,619 1,387,344 

Total $ 941,944 $ 606,587 $1,548,531
Financial Statements | PART II 50

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:

At September 30, 2012, the notes held at year-end had an interest 

rate range of 0.250% to 1.875% and an outstanding maturity period 

of approximately 34 days to 3 years. The bills held at year-end had an 

interest rate range of 0.000% to 0.095% and were all due to mature 

within 186 days. The par values of these bills range from $.30 million to 

$35.8 million. The fair value of the bills and notes is based on bid and 

ask prices quoted by the Treasury as of September 30, 2012 and 2011.

Since fiscal 2003, CNCS has set aside in reserve a portion of the funds 

in the National Service Trust for use in the event that its estimates used 

to calculate obligational amounts for education awards prove to be too 

low. This reserve was originally required by the Strengthen AmeriCorps 

Program Act, and is now required by section 149(b) of the National and 

Community Service Act (42 U.S.C. 12606(b)). As of September 30, 2012, 

$50.197 million of CNCS’ investment account has been set aside for 

this reserve.

Investments and Related Receivables as of September 30 (dollars in thousands)

2012 2011

Investments, Carrying Value $ 637,507 $ 604,218 

Investment and Interest Receivable 1,058 1,443 

Total $ 638,565 $ 605,661 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2012

(dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 477,115 $ 3,045 $ 480,160 

Bills 160,392 5 160,397 

Total $ 637,507 $ 3,050 $ 640,557 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2011 

(dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 426,846 $ 5,220 $ 432,066

Bills 177,372 45 177,417

Total $ 604,218 $ 5,265 $ 609,483
Financial Statements | PART II 51

The Corporation for National and Community Service

NOTE 3—National Trust Investments and Related Receivables—Continued

Investments held at September 30 mature according to the following schedule:

NOTE 4—Accounts Receivable, Net 

NOTE 5—Property and Equipment, Net

Maturation of Securities Held as of September 30 (dollars in thousands)

2012 2011

Amortized Amortized

Held-to-Maturity Securities Cost Fair Value Cost Fair Value

Due in 1 year or less $ 327,537 $ 327,780 $ 323,876 $ 324,250 

Due after 1 year up to 5 years 309,970 312,777 280,342 285,233 

Total $ 637,507 $ 640,557 $ 604,218 $ 609,483

Accounts Receivable as of September 30 (dollars in thousands)

Appropriated Funds Trust Fund Total

2012

Accounts receivable $ 8,616 $ 289 $ 8,905 

Less: allowance for loss on receivables (384) (38) (422)

Accounts Receivable, Net $ 8,232 $ 251 $ 8,483

2011

Accounts receivable $ 7,168 $ 653 $ 7,821 

Less: allowance for loss on receivables (204) (10) (214)

Accounts Receivable, Net $ 6,964 $ 643 $ 7,607 

General Property and Equipment as of September 30, 2012 (dollars in thousands)

Service Life Accumulated Net Book

Major Class (Years) Cost Depreciation Value

Equipment 3 - 10 $ 2,586 $ (1,863) $ 723 

ADP software 2 9,446 (8,559) 887

Total $ 12,032 $ (10,442) $ 1,610
Financial Statements | PART II 52

The Corporation for National and Community Service

NOTE 5—Property and Equipment, Net—Continued

NOTE 6—Trust Service Award Liability

Individuals who successfully complete terms of service in AmeriCorps 

programs earn education awards, which can be used to make payments 

on qualified student loans or for educational expenses at qualified 

educational institutions. The awards, which are available to use 

for a period of up to seven years after the benefit has been earned, 

are paid from the National Service Trust. The National Service Trust 

also pays forbearance interest on qualified student loans during the 

period members perform community service, as well as awards under 

the Presidential Freedom Scholarship Program. The award liability 

components related to education awards and interest forbearance have 

been adjusted, based on historical experience, to reflect the fact that 

some eligible participants may not use these benefits. The Service Award 

was composed of the following as of September 30:

Depreciation Expense for the Period Ending September 30 (dollars in thousands)

Major Class 2012 2011

Equipment $ (208) $ 203

ADP software 296 -

Total $ 88 $ 203

General Property and Equipment as of September 30, 2011 (dollars in thousands)

Service Life Accumulated Net Book

Major Class (Years) Cost Depreciation Value

Equipment 3 - 10 $ 2,997 $ (2,071) $ 926 

ADP software 2 8,263 (8,263) -

Total $ 11,260 $ (10,334) $ 926

Service Award Liability as of September 30 (dollars in thousands)

2012 2011

Education awards $ 2,109,437 $ 1,900,793 

Interest forbearance 72,256 62,425 

President’s Freedom Scholarship Program 22,527 22,527

Total estimated service award liability 2,204,220 1,985,745

Less: cumulative awards paid 1,757,029 1,575,484 

Total $ 447,191 $ 410,261 
Financial Statements | PART II 53

The Corporation for National and Community Service

NOTE 6—Trust Service Award Liability —Continued

The net Service Award Liability as of September 30, 2012 increased 

by approximately $36.9 million from the net Service Award Liability as 

of September 30, 2011. This change was largely due to new member 

enrollments related to FEMA Corps and an increase in the number 

of members still serving during the year. Past CNCS appropriations 

made amounts from the National Service Trust available for $1,000 

scholarships for high school students known as Presidential Freedom 

Scholarships. To fund each scholarship, a local community or corporate 

source matched the $500 portion of the scholarship provided by 

CNCS. The program was discontinued in fiscal 2007; however, because 

students have up to seven years to use the scholarship, some payments 

will continue to be made over the next several years. As of October 1, 

2009, the National Service Trust is also available to pay Summer of 

Service and Silver Scholar educational awards. However, the Silver 

Scholar program was not funded and no current liability was accrued 

for those educational awards. The Summer of Service program was only 

funded in FY 2010.

NOTE 7—Operating Leases

CNCS leases office space through the General Services Administration 

(GSA). GSA charges CNCS a Standard Level Users Charge that 

approximates commercial rental rates for similar properties. The NCCC 

also leases housing and other facilities for its campuses. Additionally, 

CNCS leases motor vehicles on an annual basis through GSA under 

an Interagency Fleet Management Service agreement for the NCCC. 

The leases are renewable with no purchase or escalation clause. The 

following 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.

NOTE 8—Actuarial FECA Liability

CNCS’ actuarial liability for future workers’ compensation benefits under 

FECA was $9.783 and $9.092 million as of September 30, 2012 and 

2011, respectively. The amount includes the expected liability for death, 

disability, medical, and miscellaneous costs for approved compensation 

cases. As with all federal agencies CNCS’ FECA liability is determined by 

the Department of Labor. The actuarial liability is determined using 

a method that utilizes historical benefit payment patterns related to a 

specific incurred period to predict the ultimate payments related to that 

period. Consistent with past practice, these projected annual benefit 

payments have been discounted to present value using the Office of 

Management and Budget’s economic assumptions for 10-year Treasury 

notes and bonds.

Estimated Operating Lease Commitments as of September 30 (dollars in thousands)

2012 2011

Fiscal Facilities Facilities

Year Space Vehicles Other Total Space Vehicles Other Total

2012 $ - $ - $ - $ - $ 9,694 $ 641 $ 307 $ 10,642 

2013 9,861 766 339 10,966 9,994 548 285 10,827 

2014 9,846 788 294 10,928 10,303 570 285 11,158 

2015 10,151 819 279 11,249 10,621 593 276 11,490 

2016 10,465 851 272 11,588 10,950 617 265 11,832 

2017 10,790 884 272 11,946 - - - - 

Total $ 51,113 $ 4,108 $ 1,456 $ 56,677 $ 51,562 $ 2,969 $ 1,418 $ 55,949 
Financial Statements | PART II 54

The Corporation for National and Community Service

NOTE 9—Net Positions

Net position consists of unexpended appropriations and cumulative results of operations. Component balances are separately maintained for the 

Gift Fund, Trust Fund and Appropriated Funds.

CNCS is required to report information regarding its financial position 

according to three classes of net assets (net position): unrestricted, 

temporarily restricted and permanently restricted. CNCS has no 

permanently restricted assets. The following table presents CNCS’ 

unrestricted and temporarily restricted net assets.

Net Position by Fund Balance Component as of September 30, 2012 (dollars in thousands)

Gift Fund Trust Fund Appropriated Funds Total

Unexpended appropriations $ 28 $ - $ 864,803 $ 864,831 

Cumulative results of operations 633 196,576 (2,837) 194,372 

Total Net Position $ 661 $ 196,576 $ 861,966 $1,059,203 

Net Position by Fund Balance Component as of September 30, 2011 (dollars in thousands)

Gift Fund Trust Fund Appropriated Funds Total

Unexpended appropriations $ - $ - $ 876,088 $ 876,088 

Cumulative results of operations 591 196,404 (3,864) 193,131 

Total Net Position $ 591 $ 196,404 $ 872,224 $1,069,219 

Restrictions on Net Position as of September 30, 2012 (dollars in thousands)

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 861,966 $ - $ 861,966 

Trust Funds - 196,576 196,576 

Gift Funds 28 633 661

Total Net Position $ 861,994 $ 197,209 $ 1,059,203 

Restrictions on Net Position as of September 30, 2011 (dollars in thousands)

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 872,224 $ - $ 872,224 

Trust Funds - 196,404 196,404 

Gift Funds - 591 591

Total Net Position $ 872,224 $ 196,995 $ 1,069,219 
Financial Statements | PART II 55

The Corporation for National and Community Service

NOTE 10—Appropriations Received by the National 

Service Trust

For fiscal year 2012, the National Service Trust received $207.561 

million under the Consolidated Appropriations Act, 2012. For fiscal year 

2011, the National Service Trust received $199.260 million under the 

Department of Defense and Full-Year Continuing Appropriations Act, 

2011 (Public Law 112-10). The acts also authorized CNCS to transfer 

additional amounts from subtitle C program funds to the National 

Service Trust to support the activities of national service participants. 

CNCS transferred $4.355 million and $1.940 million to the Trust under 

this provision in fiscal year 2012 and 2011, respectively.

NOTE 11—Expenses

Using an appropriate cost accounting methodology, CNCS’ expenses 

have been allocated among its major programs, at the sub-program 

level. Costs for each sub-program are reported on separately:

AmeriCorps engages members in intense, impact-oriented service to 

address local community needs in areas of Education, Healthy Futures, 

Environmental Stewardship, Economic Opportunity, Disaster Services, 

and assisting Veterans and Military Families. AmeriCorps includes the 

State, National, Tribes, and Territories (State/National); National Civilian 

Community Corps (NCCC); and Volunteers In Service To America (VISTA) 

programs. The State/National sub-program includes grant expenses, 

as well as direct and allocated personnel and administrative costs 

including AmeriCorps recruitment and National Service Trust operations. 

The NCCC sub-program includes member stipend and benefits, and 

direct and allocated personnel and administrative costs including 

AmeriCorps recruitment and National Service Trust operations. The VISTA 

sub- program includes grant expenses, member stipend and benefits, 

as well as direct and allocated personnel and administrative costs 

including AmeriCorps recruitment and National Service Trust operations.

Senior Corps programs provide opportunities for members 55 and older 

to address local community needs in the areas of Education, Assisting 

Veterans and Military Families, Disaster Response, and Healthy Futures. 

Senior Corps includes the Foster Grandparent Program (FGP); Senior 

Companion Program (SCP); and the RSVP. The Senior Corps program 

includes grant expenses, as well as direct and allocated personnel 

and administrative costs for RSVP, FGP, and SCP. CNCS also has 

reimbursable agreements with several state agencies whereby CNCS 

awards and administers grants to a list of grantees selected and funded 

by the State (pass-through grants). The activity related to pass-through 

grants has been reclassified to be associated with the related Senior 

Corps program.

Learn and Serve America includes grant expenses, as well as direct 

and allocated personnel and administrative costs, for the Learn and 

Serve America Program, the President’s Student Service Challenge, and 

National Service Leader Schools. The Learn & Serve program is no longer 

funded; however, there will be on-going activity through FY 2013 as the 

program winds down.

The National Service Award Expense component consists of CNCS’ 

estimated expense for education awards based on the increase in its 

service award liability during the year and interest forbearance costs on 

qualified student loans during the period members perform community 

service. No indirect costs have been allocated to the National Service 

Award expense component.

Innovation, Demonstration, & Assistance Activities (ID&A Activities) 

include grants to support and encourage new forms of service and 

volunteering. The most significant program is the Social Innovation 

Fund (SIF). The primary objective of the SIF is to improve the lives of 

people in low-income communities by mobilizing public and private 

sources to grow innovative nonprofit organizations that have evidence 

of compelling impact in the areas of Economic Opportunity, Youth 

Development, and Healthy Futures. No indirect costs have been 

allocated to the Innovation, Demonstration, & Assistance Activities 

component.

The Office of Inspector General (OIG) receives a separate appropriation. 

No indirect costs have been allocated to OIG.
Financial Statements | PART II 56

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)

2012 2011 

Domestic Volunteer Service Act Programs $ 227,317 $ 249,235 

National and Community Service Act Programs 407,603 434,821 

Total Grant Funds Expended $ 634,920 $ 684,056 

Expenses by Major Responsibility Segment for the Period Ended September 30

(dollars in thousands) 

2012 2011 

AmeriCorps

 State and National $ 609,046 $ 633,975 

 NCCC 45,394 35,826 

 VISTA 138,035 138,159 

 Subtotal $ 792,475 $ 807,960 

Senior Corps 

 RSVP 51,980 67,130

 Foster Grandparent Program 119,206 118,900

 Senior Companion Program $ 51,129 $ 51,318

 Subtotal 222,315 237,348

Learn and Serve America 17,801 33,261

Innovation, Demonstration, Assistance Activities 34,748 11,464

Office of Inspector General (OIG) 5,241 8,001

Total Expenses $1,072,580 $ 1,098,034 
Financial Statements | PART II 57

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2012 (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 $ 358,112 $ - $ 29,387 $ 46,345 $ 106,159 $ 45,426 $ 15,583 $ 33,908 $ - $ 634,920

VISTA and NCCC stipends and benefits - 9,571 60,951 - - - - - - 70,522

Service award expense 182,786 8,609 27,028 - - - - - - 218,423

Total Grant and Related Expense 540,898 18,180 117,366 46,345 106,159 45,426 15,583 33,908 - 923,865

Administrative Expense

Federal employee salaries and benefits 34,919 9,504 7,885 2,497 5,861 2,485 1,251 - 3,429 67,831

Travel and transportation 1,144 3,217 1,606 386 865 380 37 - 98 7,733

Rent, communications, and utilities 4,439 5,247 835 322 756 320 105 - 98 12,122

Program analysis and evaluation 1,876 137 395 161 379 161 101 - - 3,210

Printing and reproduction 68 40 12 36 16 11 2 - 2 187

Other services and expenses 25,116 7,460 9,840 2,186 5,060 2,299 706 840 1,574 55,081

Supplies and materials 212 1,603 39 17 39 17 6 - 40 1,973

Depreciation, amortization, and loss on 322 5 49 26 61 26 9 - - 498

disposition of assets

Bad debt 52 1 8 4 10 4 1 - - 80

Total Administrative Expense 68,148 27,214 20,669 5,635 13,047 5,703 2,218 840 5,241 148,715

Total Expenses by Type $ 609,046 $ 45,394 $ 138,035 $ 51,980 $ 119,206 $ 51,129 $ 17,801 $ 34,748 $ 5,241 $ 1,072,580
Financial Statements | PART II 58

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Financial Statements | PART II 59

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2011 (dollars in thousands)

AmeriCorps National Senior Service Corps

Restated State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 396,174 $ - $ 36,465 $ 59,244 $ 107,643 $ 45,883 $ 27,563 $ 11,084 $ - $ 684,056

VISTA and NCCC stipends and benefits - 8,137 57,363 - - - - - - 65,500

Service award expense 173,300 4,339 17,601 - - - 577 - - 195,817

Total Grant and Related Expense 569,474 12,476 111,429 59,244 107,643 45,883 28,140 11,084 - 945,373

Administrative Expense

Federal employee salaries and benefits 31,974 9,664 7,491 2,754 5,031 2,147 2,794 - 4,887 66,742

Travel and transportation 1,166 3,516 1,584 505 887 387 85 - 318 8,448

Rent, communications, and utilities 4,548 3,616 948 407 745 318 182 - 403 11,167

Program analysis and evaluation 1,735 449 629 266 479 206 382 - - 4,146

Printing and reproduction 164 91 81 107 35 60 7 - - 545

Other services and expenses 24,511 4,759 15,862 3,810 4,012 2,288 1,647 380 2,209 59,478

Supplies and materials 407 1,255 136 37 68 29 24 - 184 2,140

Depreciation, amortization, and loss on 129 2 20 13 24 10 6 - - 204

disposition of assets

Bad debt (133) (2) (21) (13) (24) (10) (6) - - (209)

Total Administrative Expense 64,501 23,350 26,730 7,886 11,257 5,435 5,121 380 8,001 152,661

Total Expenses by Type $ 633,975 $ 35,826 $ 138,159 $ 67,130 $ 118,900 $ 51,318 $ 33,261 $ 11,464 $ 8,001 $ 1,098,034
Financial Statements | PART II 60

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Financial Statements | PART II 61

The Corporation for National and Community Service

NOTE 13—Change in Unexpended Appropriations, Net 

NOTE 12—National Service Award Expense

Members serving in approved national service positions are eligible 

to earn a service award to pay for qualified education expenses. The 

National Service Trust also pays interest forbearance costs on qualified 

student loans during the period members perform community service.

CNCS estimates the expense for national service awards based on the 

increase in its cumulative service award liability during the year (see 

Note 6). The total service award liability as of September 30, 2012 and 

2011, respectively, has been adjusted to reflect the fact that earned 

awards are not always used.

National Service Award Expense for the Period Ended September 30 (dollars in thousands)

2012 2011

Estimated education awards $ 208,758 $ 188,599 

Estimated interest forbearance 9,665 7,218 

National Service Award Expense $ 218,423 $ 195,817 

Unexpended Appropriations, Net as of September 30 (dollars in thousands)

2012 2011

Unexpended Appropriations, Beginning Balance $ 876,088 $ 935,080 

Increases:

Appropriations Received 1,050,870 1,077,733 

Decreases:

Appropriated Capital Used (824,684) (883,872)

Appropriations Transferred to Trust Fund (net of rescissions) (207,561) (199,260)

Program Funds Transferred to Trust (4,355) (1,940)

Rescissions and Cancellations (25,527) (51,653)

Total Decreases (1,062,127) (1,136,725)

Change in Unexpended Appropriations (11,257) (58,992) 

 

Unexpended Appropriations, Ending Balance $ 864,831 $ 876,088
Financial Statements | PART II 62

The Corporation for National and Community Service

NOTE 14—Contingencies

CNCS is a party to various routine administrative proceedings, legal 

actions, and claims brought by or against it, including threatened 

or pending litigation involving labor relations claims, some of which 

may ultimately result in settlements or decisions against CNCS. In 

the opinion of CNCS’ management and legal counsel, there are no 

proceedings, actions, or claims outstanding or threatened that would 

materially impact the financial statements of CNCS.

Certain legal matters to which CNCS is a party may be administered 

and, in some instances, litigated and paid by other federal agencies. 

Generally, amounts paid in excess of $2.5 thousand for Federal Tort 

Claims Act settlements or awards pertaining to these litigations are 

funded from the Treasury Judgment Fund (TJF). Although the ultimate 

disposition of any potential TJF proceedings cannot be determined, 

management does not expect that any liability or expense that might 

ensue would be material to CNCS’ financial statements.

NOTE 15—Subsequent Events

CNCS has evaluated subsequent events through November 16, 2012, 

which is the date these financial statements were available to be 

issued. As a consequence of its evaluation, CNCS has determined that 

no subsequent events need to be recognized or disclosed.

NOTE 16—Undelivered Orders at Fiscal Year-End

CNCS’ undelivered orders at September 30, 2012 and 2011 were 

$895,614 and $921,674 thousand, respectively.

NOTE 17—Apportionment Categories of Incurred 

Obligations

An apportionment is a distribution by OMB of amounts available for 

obligation. OMB apportions Corporation funds on both a quarterly and 

annual basis. Obligations incurred during FY 2012 and 2011 were:

Consolidated Obligations Incurred through September 30 (dollars in thousands)

Fiscal Year Direct Reimbursable Total

 

2012 $ 1,255,712 $ 19,949 $ 1,275,661

2011 $ 1,288,240 $ 11,081 $ 1,299,321
Independent Auditor’s Report | Part III 63

The Corporation for National and Community Service

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2012 FINANCIAL STATEMENTS 

Audit Report Number 13-01 

Prepared by: 

Kearney & Company 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on November 16, 2012. 

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 May 16, 2013, and complete its corrective 

actions by November 18, 2013. Consequently, the reported findings do not 

necessarily represent the final resolution of the issues presented.

Office of Inspector General 

Corporation for National and

Community Service 
Independent Auditor’s Report | Part III 64

The Corporation for National and Community Service

1201 New York Avenue, NW  Suite 830  Washington, DC 20525

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov

November 16, 2012

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 2012 Financial Statements, OIG Audit Report 13-01

We contracted with the independent certified public accounting firm of Kearney & Company 

(Kearney) to audit the consolidated financial statements of the Corporation for National and 

Community Service (Corporation) as of September 30, 2012 and 2011, and for the years then 

ended. The contract required that the audit be performed in accordance with generally 

accepted government auditing standards. 

In its audit, Kearney found

 The financial statements were fairly presented, in all material respects, in conformity with 

generally accepted accounting principles;

 One material weakness in the Corporation’s internal controls;

 No instances of noncompliance with relevant laws and regulations.

Kearney is responsible for the attached auditor’s report, dated November 16, 2012, and the 

conclusions expressed therein. The Office of Inspector General does not express an opinion on 

the Corporation’s financial statements or Kearney’s conclusions about the effectiveness of 

internal controls or compliance with laws and regulations. 

Attachment

cc: Asim Mishra, Chief of Staff

Robert Velasco II, Chief Operating Officer 

David Rebich, Chief Financial Officer

Philip Clark, 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
Independent Auditor’s Report | Part III 65

The Corporation for National and Community Service

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 the Inspector General of the Corporation for National and 

Community Service

We have audited the accompanying consolidated statements of financial position of the

Corporation for National and Community Service (the Corporation) as of September 30, 2012

and 2011, and 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. These 

consolidated financial statements are the responsibility of the Corporation’s management. Our 

responsibility is to express an opinion on these 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. 07-04, Audit Requirements for Federal Financial Statements, as 

amended. Those standards require that we plan and perform the audits to obtain reasonable 

assurance about whether the financial statements are free of material misstatement. An audit 

includes examining, on a test basis, evidence supporting the amounts and disclosures in the 

financial statements. An audit also includes assessing the accounting principles used and 

significant estimates made by management, as well as evaluating the overall financial statement 

presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above, including the accompanying notes,

present fairly, in all material respects, the financial position of the Corporation, as of September 

30, 2012 and 2011, and its net cost of operations, changes in net position, cash flows, and 

changes in budgetary resources for the years then ended, in conformity with accounting 

principles generally accepted in the United States of America.

A 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.

As discussed in Note 1 to the fiscal year 2012 financial statements, the Corporation reclassified 

certain amounts in the prior year’s combined SBR to conform to the current year’s re-aligned 

presentation of the new Standard Form 133, Report on Budget Execution and Budgetary 

Resources. These reclassifications had no effect on the previously reported SBR balances.
Independent Auditor’s Report | Part III 66

The Corporation for National and Community Service

Accounting principles generally accepted in the United States of America require that the 

Management’s Discussion and Analysis be presented to supplement the basic financial 

statements. Such information, although not a part of the basic financial statements, is required 

by OMB Circular A-136, Financial Reporting Requirements, and the Federal Accounting 

Standards Advisory Board, which considers it to be an essential part of the financial reporting for 

placing the basic 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 the information for consistency with management’s responses to our inquiries, the 

basic financial statements, and other knowledge we obtained during our audits of the basic 

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.

Other Accompanying Information (OAI) is presented for purposes of additional analysis and is 

not a required part of the basic 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 as part of the audits of the financial statements taken as a whole. Certain information from the 

Corporation’s National Service Trust Fund special purpose schedules of financial position and 

the related special purpose schedules of operations and changes in net position, Trust obligations, 

and Trust budgetary resources (hereinafter referred to as the “Trust Schedules”), as of September 

30, 2012, is presented in OAI. In accordance with the requirements of the National and 

Community Service Act of 1990, we performed a separate audit of the Trust Schedules and 

issued a report dated November 16, 2012.

In accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended, 

we have also issued reports, dated November 16, 2012, 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, and other matters for the year ended September 30, 2012.

The purpose of those reports is to describe the scope of our testing of internal control over 

financial reporting and compliance as well as the results of that testing, and not to provide an 

opinion on the internal control over financial reporting or on compliance and other matters.

Those reports are an integral part of an audit performed in accordance with Government Auditing 

Standards and OMB Bulletin No. 07-04, as amended, and should be considered in assessing the 

results of our audits.

Alexandria, Virginia

November 16, 2012
Independent Auditor’s Report | Part III 67

The Corporation for National and Community Service

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE AND OTHER MATTERS

To the Board of Directors and the 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) as of and for the year ended September 30, 2012, and have 

issued our report dated November 16, 2012. We conducted our audit 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. 07-04,

Audit Requirements for Federal Financial Statements, as amended. The management of the

Corporation is responsible for compliance with laws and regulations.

As part of obtaining reasonable assurance about whether the Corporation’s financial statements 

are free of material misstatement, we performed tests of the Corporation’s compliance with 

certain provisions of laws and regulations, noncompliance with which could have a direct and 

material effect on the determination of financial statement amounts, and certain other laws and 

regulations specified in OMB Bulletin No. 07-04, as amended, that we determined were 

applicable. We limited our tests of compliance to these provisions; we did not test compliance 

with all laws and regulations applicable to the Corporation. Providing an opinion on compliance 

with those provisions was not an objective of our audit, and accordingly, we do not express such 

an opinion. 

The results of our tests of compliance described in the preceding paragraph disclosed no 

instances of noncompliance or other matters that are required to be reported under Government 

Auditing Standards and OMB Bulletin No. 07-04, as amended. 

* * * * *

This report is intended solely for the information and use of the Corporation’s management, 

those charged with governance and others within the Corporation, the Corporation’s Office of 

Inspector General, the Government Accountability Office, OMB, the Department of the 

Treasury, and Congress, and is not intended to be and should not be used by anyone other than 

these specified parties.

Alexandria, Virginia

November 16, 2012
Independent Auditor’s Report | Part III 68

The Corporation for National and Community Service

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

To the Board of Directors and the 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) as of and for the year ended September 30, 2012, and have 

issued our report dated November 16, 2012. We conducted our audit 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. 07-04,

Audit Requirements for Federal Financial Statements, as amended. The management of the

Corporation is responsible for establishing, maintaining, and assessing internal control related to 

financial reporting and compliance, and assessing internal control to provide reasonable 

assurance that the broad control objectives of the Federal Managers’ Financial Integrity Act of 

1982 (FMFIA) are met.

In planning and performing our work, we considered the Corporation’s internal control over 

financial reporting and compliance by obtaining an understanding of the design effectiveness of

the Corporation’s internal control, determining whether controls had been placed in operation, 

assessing control risk, and performing tests of the Corporation’s controls as a basis for designing 

our auditing procedures for the purpose of expressing our opinion on the financial statements and

not to provide an opinion on the internal controls. Accordingly, we do not express an opinion on 

the effectiveness of the Corporation’s internal control over financial reporting and compliance or 

on management’s assertion on internal control included in Management’s Discussion and 

Analysis. 

We limited our internal control testing to those controls necessary to achieve the OMB Bulletin 

No. 07-04, as amended, control objectives that provide reasonable, but not absolute assurance, 

that: (1) transactions are properly recorded, processed, and summarized to permit the preparation 

of the financial statements in accordance with accounting principles generally accepted in the 

United States of America (GAAP), and assets are safeguarded against loss from unauthorized 

acquisition, use, or disposition; and (2) transactions are executed in compliance with laws 

governing the use of budget authority, Government-wide policies and laws identified in 

Appendix E of OMB Bulletin No. 07-04, as amended, and other laws and regulations that could 

have a direct and material effect on the financial statements. We did not test all internal controls 

relevant to operating objectives, as broadly defined by the FMFIA, such as those controls 

relevant to ensuring efficient operations.

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraphs and was not designed to identify all deficiencies in internal 

control that might be deficiencies, significant deficiencies, or material weaknesses. Therefore, 

there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses 
Independent Auditor’s Report | Part III 69

The Corporation for National and Community Service

have been identified. However, as discussed below, we identified a deficiency in internal control 

that we consider to be a material weakness.

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. We consider the following deficiency in the 

Corporation’s internal control to be a material weakness.

Material Weakness

Grant Accrual Estimate (Modified Repeat Condition)

The Corporation did not have adequate internal controls in place to ensure that the grant accrual 

was reasonably estimated. In fiscal year (FY) 2012, a significant variance was identified 

between Kearney & Company, P.C.’s (Kearney) recalculation of the June 30, 2012 grant accrual 

and the grant accrual amount recorded by the Corporation. Through inquiries, Kearney 

determined that the total grant accrual was misallocated between the Advance Offset and Grants

Payable general ledger accounts. The error resulted from the use of an incorrect internal 

database to allocate the accrued expense to the Advance Offset and Grants Payable general 

ledger accounts. The incorrect database was archived by the Corporation in the fourth quarter of 

FY 2012 to reduce the risk of a similar error occurring in the future.

The transaction-level review procedures performed by the Corporation were not sufficient to 

identify this error prior to the issuance of the June 30, 2012 interim financial statements to OMB.

Additionally, the error was not identified through the Corporation’s quarterly variance analysis.

The failure of these internal controls caused the error to go undetected; as a result, Advances to 

Others and Grants Payable were each understated by approximately $39.7 million in the 

Corporation’s June 30, 2012 interim financial statements. 

Recommendations: While Kearney recognizes that the test database has already been archived,

we recommend that the Corporation take the following actions to further improve the overall 

grant accrual and internal validation processes:

• Document and maintain support for the data and assumptions used to develop the grant 

accruals. The documentation should be sufficient and readily available to facilitate the 

Corporation’s review of the assumptions and conclusions

• Strengthen controls over the grant accrual validation process by reviewing the grant 

accrual as part of its Internal Control Review Testing Plan

• Substantiate the Department of Health and Human Services’ Payment Management 

System information and Microsoft Access database results by developing expectations of 

the estimate based on historical patterns and other influencing factors, and/or reperforming the process during the adjustment review and approval 
Independent Auditor’s Report | Part III 70

The Corporation for National and Community Service

• Set a threshold for grant accrual variance analysis and research any differences exceeding 

a predetermined percentage and/or amount. 

During the audit, we noted certain other matters involving internal control and its operations over 

financial reporting that we will report to the Corporation’s management in a separate letter.

The Corporation’s management has provided its response to our findings in the Independent 

Auditor’s Report section of the Agency Financial Report. We did not audit management’s 

response and, accordingly, we do not express an opinion on it.

* * * * *

This report is intended solely for the information and use of the Corporation’s management, 

those charged with governance and others within the Corporation, the Corporation’s Office of 

Inspector General, the Government Accountability Office, OMB, the Department of the 

Treasury, and Congress, and is not intended to be and should not be used by anyone other than 

these specified parties.

Alexandria, Virginia

November 16, 2012
Independent Auditor’s Report | Part III 71

The Corporation for National and Community Service

MEMORANDUM

DATE: November 16, 2012

TO: Deborah Jeffrey, Inspector General

FROM: David Rebich, Chief Financial Officer

SUBJECT: Draft Report on the Corporation’s FY 2012 Financial Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of the Corporation for National and 

Community Service’s FY 2012 financial statements. I am pleased that we can report that in FY 2012 CNCS maintained its record of 

strong fiscal stewardship for the American people. CNCS received an unqualified opinion on its consolidated financial statements for 

the 13th consecutive year. The audit also found no instance of noncompliance with laws and regulations.

I am also pleased that three management letter findings associated with financial reporting and eight management letter findings 

associated with Information Technology contained in the FY 2011 report have been corrected. However, the audit resulted in a 

modified repeat of the FY 2011 material weakness in financial reporting related to the estimated grant accruals. CNCS had a material 

error related to the grant accruals in the third quarter financial statements for fiscal year 2012. CNCS determined in reviewing the third 

quarter grant accrual that an incorrect file was used to estimate the accrual. CNCS immediately corrected the file and supplemented 

review controls to prevent future occurrences. This issue was resolved for the end of the year financial statements. Overall, the results 

reflect CNCS’ commitment to sound financial management and the hard work to continuously improve financial operations.

1201 New York Avenue, NW • Washington, DC 20525

202-606-5000 • www.nationalservice.org

Senior Corps • AmeriCorps • Learn and Serve America
Other Accompanying Information | PART IV 72

The Corporation for National and Community Service

Other Accompanying Information

RSVP volunteers provide disaster assistance in the aftermath of a tornado.
Other Accompanying Information | PART IV 73

The Corporation for National and Community Service

Donations and Contributions

Under CNCS’ 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 

the Congress on the nature and the 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 2012.

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, 2012, to fund authorized activities as well as the 

receipts and expenses paid from the Gift Fund in FY 2012 and FY 2011, 

respectively.

Status of Gift Fund Balance at September 30, 2012

Obligation &

Fund Balance With Treasury Commitments Funds Available

Best Buy $ 90,826 $ (22,860) $ 67,966

Home Depot 158,606 - 158,606

Ralph Lauren Polo Foundation 55,493 - 55,493

Walt Disney Company 58,559 (10,538) 48,021

Kellogg Foundation 55,572 (26,399) 29,173

Disaster Relief Fund 16,622 - 16,622

Motorola Foundation 495 - 495

Microsoft 6,315 - 6,315

American Express 25,000 - 25,000

White House Council 105,569 (831) 104,738

Miscellaneous Check Donations 25,694 (16,500) 9,194

Miscellaneous Electronic Donations 68,517 (118) 68,399

Total $ 667,268 $ (77,246) $ 590,022
Other Accompanying Information | PART IV 74

The Corporation for National and Community Service

Supplemental Information on the Source and Use Of Donationsi

2012 2011

Donor Use of Funds Received Used Received Used

Best Buy Grants for the Martin Luther King $ 100,525 $ 8,446 $ - $ 3,231

Day of Service

Ralph Lauren Polo Support for NCCC program activities - - - 772

Foundation

Shell Oil Co. Support for the Martin Luther King Day of Service - - - 3,518

Kellogg Foundation AmeriCorps volunteer mobilization 2,000 1,500 - 1,969

IBEW Union CNCS Board of Directors Support - - - 1,585

Motorola Foundation National Conference 395 1,962 15,100 15,427

Microsoft Student Driven Virtual Help Desk - - - 77,815

Target Summer of Service - - - 6,830

American Express United We Serve - 1,132 190,000 190,000

Rockefeller Foundation White House Council on 100,000 89,237 100,000 1,221

Community Solutions

 

Small Individual Donations Restricted to

Disaster Relief - - 889 -

Senior Corps - - 15 -

AmeriCorps (Miscellaneous) 850 - 23,071 7,500

AmeriCorps NCCC 200 335 110 651

Learn & Serve America - - 25 -

AmeriCorps Vista - - 30 -

General/Miscellaneous Support 1,457 643 441 7,507

Total $ 205,427 $ 103,255 $ 329,681 $ 318,026

i 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 Accompanying Information | PART IV 75

The Corporation for National and Community Service

National Service Trust Fund 

Status Report–September 2012

The National Service Trust Fund (the Trust) was established by the 

National and Community Service Trust Act of 1993 (42 USC 12601, 

et seq.) to provide funds for Segal AmeriCorps Education Awards for 

eligible participants who complete AmeriCorps service. Funding for the Trust 

comes from appropriations, interest earned, and proceeds from the sale or 

redemption of Trust investments. The Trust is also authorized to receive 

gifts or bequests; however, to date, no donations have been received by 

the Trust. Under the Act, funds are available to repay qualified student 

loans; pay educational expenses at qualified educational institutions; 

and repay eligible interest expense on student loans.

The value of an education award depends on the term of service 

performed by an AmeriCorps member. For Program Year 2012 completion 

of a full-time term of service, requiring a minimum of 1,700 hours 

of service, entitles an AmeriCorps member to an education award of 

$5,550. Completion of a part-time term, requiring a minimum of 900 

hours of service, entitles an AmeriCorps member to an education award 

of $2,775. Reduced part-time terms, which provide awards of $500 to 

$2,114, are also offered. The education award is indexed to Pell grants, 

therefore these amounts could change each year. 

Education awards earned by AmeriCorps members are generally available 

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 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 2010, AmeriCorps State and National and Silver Scholar members 

who are age 55 or older when they begin service may also transfer the 

education award to a qualified child, grandchild, or foster child.

Table 1 shows the planned activity for the current Program Year and 

actual enrollments to date against the plan. The table also includes 

similar data on the prior Program Year for comparative purposes. 

Member positions (slots) classified as “Certified Not Awarded” have 

been approved by CNCS’ Chief Executive Officer for award to grantees 

for which the final grant award has not been executed. For budgetary 

purposes these positions are considered commitments in the Trust Fund.

Table 1. Member Position Award Activity 

Program Year 2012 Program Year 2011

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 20,757 46,603 6,660 1,000 75,020 71,663 2,274 – – 73,937

VISTA 6,734 – 446 – 7,180 5,800 – – – 5,800

NCCC 1,200 – – – 1,200 1,149 – – – 1,149

Total 28,691 46,603 7,106 1,000 83,400 78,612 2,274 – – 80,886
Other Accompanying Information | PART IV 76

The Corporation for National and Community Service

The 83,400 Trust positions for Program Year 2012 do not include an 

estimated 1,020 AmeriCorps VISTA members (870 full time and 150 

Summer Associates) electing an end-of-service stipend instead of an 

education award. Total estimated member positions for Program Year 

2012, including VISTA members electing a stipend, is 84,420. Member 

enrollment and slot data are periodically adjusted to reflect corrections 

and slot reconfigurations by grantees; therefore they may change slightly 

from month to month.

The 80,886 Trust positions for Program Year 2011 do not include an 

estimated 1,650 AmeriCorps VISTA members (1,329 full time and 321 

Summer Associates) electing an end-of-service stipend instead of an 

education award. Total estimated member positions for Program Year 

2011, including VISTA members electing a stipend, is 82,536. Of the 

5,800 VISTA member positions in the Trust for 2011, 1,453 positions are 

for Summer Associates who receive a Trust award of $1,175. Member 

enrollment and slot data are periodically adjusted to reflect corrections 

and slot configurations by grantees; therefore they may change slightly 

from month to month. 

Trust Awards

Since CNCS’ inception in 1993 AmeriCorps members have earned 

over $2.43 billion in Segal AmeriCorps Education Awards and used 

over $1.67 billion to fund their education and repay student loans. 

In addition, CNCS has made $62.04 million in interest forbearance 

payments. Approximately $243.9 million in education awards earned 

have expired without being used. The Trust obligation formula has been 

adjusted to reflect these expired awards.

Not reflected in the Segal AmeriCorps Education Award balances are 

payments for President’s Freedom Scholarships to high school students. 

CNCS no longer awards these $500 scholarships from the National 

Service Trust. Under this program a Trust scholarship was matched with 

$500 from a local sponsor for a total of $1,000 to help the student fund 

a college education. Although the program was discontinued in fiscal 

2006, students have up to seven years to use their scholarship; therefore 

some payments will continue to be made over the next several years. 

President’s Freedom Scholarships payments to date have totaled 

$21.7 million.

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
Other Accompanying Information | PART IV 77

The Corporation for National and Community Service

Refilled Positions

CNCS’ policy allows grantees limited flexibility to refill positions vacated 

by a member who has served less than 30 percent of his or her service 

term, provided that the departing member had not earned a pro-rated 

education award. To prevent over-enrollment, the policy includes “fail 

safe” triggers that restrict the overall number of refills to no more than 

5 percent of awarded positions and suspends refilling altogether if total 

AmeriCorps enrollment reaches 97 percent of awarded positions. Table 

2 provides information on the number of positions refilled. Recovery Act 

positions and positions in Program Years 2010 and earlier can no longer 

be refilled.

Table 2. Number of Refilled Positions

Results to Date

Program Program Program Program

Year Recovery Year Year Year Fail-safe

2009 Act 2010 2011 2012 Trigger

Number of Refilled Positions 1,385 328 1,604 1,494 22 N/A

Refills as a Percent of Awarded State and

National Positions 2.1% 3.1% 2.0% 2.0% 0.0% 5%

State and National Enrollment as a Percentage

of Awarded State and National Positions 97.3% 98.6% 99.5% 96.9% 30.8% 97%
Other Accompanying Information | PART IV 78

The Corporation for National and Community Service

Trust Accounting

The Schedule of Financial Position (Table 3) and the Schedule of 

Operations (Table 4) present information on the assets, liabilities, 

revenue, and expenses of the Trust Fund using Generally Accepted 

Accounting Principles (GAAP), which is the method of accounting for the 

liability used for financial statement purposes. Discrete information on 

the Trust activity related to Recovery Act funds and general funds, as 

well as on a consolidated basis, is provided. 

GAAP requires the recording of a liability, which is a point in time 

estimate, for the unpaid earned and expected-to-be-earned education 

award and interest forbearance costs that are likely to be paid. GAAP 

estimates are for members who have already completed at least 15 

percent of the minimum service requirement and who, therefore, have 

served enough hours to qualify for at least a partial education award.

The estimate of the Service Award Liability under GAAP includes factors 

that take into account the effect of members who enroll but do not earn 

an award and members who earn an award but do not use it within the 

period of availability. CNCS estimates that up to 87 percent of members 

earning an award will eventually use it. 

Table 3. Corporation for National and Community Service 

National Service Trust Schedule of Net Position as of September 30, 2012 

(dollars in thousands)

Recovery Act Trust FEMA Corps General Fund Consolidated

Assets

Fund Balance with Treasury $ 149 $ 251 $ 4,551 $ 4,951

Investments, Net 14,907 2,000 620,600 637,507

Interest Receivable - - 1,058 1,058

Accounts Receivable - - 251 251

Subtotal 15,056 2,251 626,460 643,767

Liabilities

Service Award Liability 9,583 - 437,608 447,191

Net Position

Cumulative Results of Operations 5,473 2,251 188,852 196,576

Total Liabilities and Net Position $ 15,056 $ 2,251 $ 626,460 $ 643,767
Other Accompanying Information | PART IV 79

The Corporation for National and Community Service

Table 4. Corporation for National and Community Service 

National Service Trust Schedule of Operations through the Quarter Ended 

September 30, 2012 (dollars in thousands)

Recovery Act Trust FEMA Corps General Fund Consolidated

Revenues

Appropriations $ - $ - $ 207,561 $ 207,561

Transfer in of Program Funds - - 4,355 4,355

Interest 12 - 4,422 4,434

Other Revenue - 2,251 435 2,686

Total Revenues 12 2,251 216,773 219,036

Expenses 

Service Award Expense - - 218,423 218,423

Write off/Recovery of Receivables - - 441 441

Total Expenses - - 218,864 218,864

Excess of Revenues Over Expenses 12 2,251 (2,091) 172

Net Position 

Excess of Revenues Over Expenses 12 2,251 (2,091) 172

Net Position, Beginning of Year 5,461 - 190,943 196,404

Net Position, End of Period $ 5,473 $ 2,251 $ 188,852 $ 196,576
Other Accompanying Information | PART IV 80

The Corporation for National and Community Service

Table 5 shows the most significant factors used to calculate Trust 

obligations on a historical basis. It is important to note that Program 

Year refers to positions awarded with (although not necessarily filled 

in) a particular fiscal year’s grant funds. For example, a grantee may 

receive a grant in Fiscal Year 2011 but not fill all positions until Fiscal 

Year 2012. All positions related to this grant would be considered 

Program Year 2011 positions irrespective of the year filled.

Table 5. Factors Affecting the National Service Trust Fund

Program Year

 Recovery

2009 Act 2010 2011 2012

Member enrollments in the Trust 69,775 13,862 88,357 78,612 28,691

Percent of members who earned an education award 83.5% 82.7% 83.8% 85.4% 76.7%

Percent of earned education awards used 65.7% 62.2% 50.8% 24.7% 18.6%

Weighted average yield to maturity for investments 2.0% 0.25% 1.25% 1.25% 1.25%

Breakout of enrollment by term type:

Full-time 44% 57% 43% 45% 75%

Part-time 14% 12% 13% 13% 8%

Reduced Part-time 41% 31% 44% 42% 17%

Data excludes FEMA Corps activity
Other Accompanying Information | PART IV 81

The Corporation for National and Community Service

The Program Year data used throughout these tables reflects all 

enrollments recorded through the reporting period. Prior year enrollment 

numbers may change slightly from time to time due to corrections or late 

reporting by grantees. The percentage of members earning an award 

in Table 5 is calculated by taking the number of members earning an 

award divided by the total members enrolled, and net of members still 

earning. For example, in Program Year 2011 there are 78,612 members 

enrolled in the Trust, of which 13,065 are reported as still earning an 

award and 55,997 as having earned an award. Therefore the percentage 

of members who earned an education award is calculated by dividing 

the number of education awards earned [55,997] by the number of 

enrolled members who are no longer earning an award [78,612 –13,065 

= 65,547]. Thus the percentage of members who earned an award is 

55,997/65,547 or 85.43%. The percentage of earned education awards 

used is calculated by taking the dollar amount of education awards 

used divided by the total amount earned for the Program Year to date. 

Term type is based on Program Year enrollments to date. The enrollment 

and award usage data used to compute these factors can be found in 

Table 8, at the end of this report.

Tables 6 and 7 present information on the budgetary resources and 

obligations of the Trust, including the Trust Reserve. The schedules 

present information on a budgetary basis, which represents the 

accounting used to determine adherence to the Anti-Deficiency Act. 

CNCS records Trust obligations at the time it awards AmeriCorps 

State and National grants or at the time it enters into an enforceable 

agreement with AmeriCorps VISTA and NCCC members.

Table 6. Corporation for National and Community Service 

National Service Trust Schedule of Budgetary Activity for the Period Ended 

September 30, 2012 (dollars in thousands)

Resources Recovery Act FEMA Corps General Fund Consolidated

Funds Available at October 1 $ 1,882 $ 8,945 $ 10,827

Budgetary Resources 

Fiscal Year Appropriation - - 207,561 207,561

Other Actual Collections - Federal - 2,251 - 2,251

Transfers in of Program Funds - - 4,355 4,355

Deobligation Prior Year Positions (net) - - 1,765 1,765

Audit Receivables - 435 435

Less: Additions to Trust Reserve - - - -

Total Budgetary Resources 1,882 2,251 223,061 227,194

Obligations 

Education Awards - (2,247) (191,568) (193,815)

Interest Forbearance - - (7,523) (7,523)

Total Obligations - (2,247) (199,091) (201,338)

Net Change in Commitments 

Education Awards - - (14,927) (14,927)

Interest Forbearance - - (474) (474)

Net Change in Commitments - - (15,401) (15,401)

Funds Available for Obligation $ 1,882 $ 4 $ 8,569 $ 10,455
Other Accompanying Information | PART IV 82

The Corporation for National and Community Service

The amounts obligated in the Trust are based on the estimated value 

of the education benefit, and discounted for the estimated enrollment, 

earning and usage rate and the time value of money. For Fiscal Year 

2012, these factors are the full value of the Segal AmeriCorps Education 

Award, a 100 percent enrollment rate (which allows for refills), an 

average earning rate of 84 percent (which ranges from 77 to 86 percent 

depending on term type), and an average usage rate of 87 percent. 

Under the Kennedy Serve America Act, awards earned by members 

over age 55 can be transferred to an eligible beneficiary. Therefore, 

for budgetary purposes we are projecting that all transferable awards 

will eventually be used. For program years 2002 and prior, CNCS uses 

the actual amounts earned, adjusted for amounts used and the time 

value of money to determine the obligation. Obligations are periodically 

adjusted to reflect current earning and usage projections.

A portion of the funds in the Trust is held in reserve and is for use in the 

event that the estimates used to calculate obligations differ from actual 

results. The reserve currently totals $50.197 million ($46.7 million for 

the General Fund and $3.5 million for the Recovery Act Fund). To date, no 

reserve funds have been used. 

Table 7. Corporation for National and Community Service 

National Service Trust Schedule of Trust Obligations as of September 30, 2012

(dollars in thousands)

Resources Recovery Act Trust FEMA Corps General Fund Consolidated

Fund Balance with Treasury $ 149 $ 251 $ 4,551 $ 4,951

Investments, Net 14,907 2,000 620,600 637,507

Interest Receivable - - 1,058 1,058

Accounts Receivable - - 251 251

Subtotal 15,056 2,251 626,460 643,767 

Less:

Cumulative Trust Reserve (3,500) - (46,697) (50,197)

Receivables Not Available for Obligation (7) - (3,231) (3,238)

Total Resources 11,549 2,251 576,532 590,332

Unliquidated Obligations

Education Awards (9,539) (2,160) (537,299) (548,998)

Interest Forbearance (128) (87) (14,380) (14,595)

President’s Freedom Scholarships - - (883) (883)

Total Unliquidated Obligations (9,667) (2,247) (552,562) (564,476)

Commitments 

Education Awards - - (14,927) (14,927)

Interest Forbearance - - (474) (474)

Total Commitments - - (15,401) (15,401)

Funds Available for Obligation $ 1,882 $ 4 $ 8,569 $ 10,455
Other Accompanying Information | PART IV 83

The Corporation for National and Community Service

Enrollment Activity

Table 8 presents cumulative data to date on Trust enrollments, education awards earned and used for Program Years 1994 through 2012 as well as 

Recovery Act positions.

Table 8. Trust Enrollment Activity—Program Years 1994 through 2012

Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 15,331 0 11,463 3,868 $48,266,389.19 $35,310,366.87

1994 Part-time 6,264 0 4,172 2,092 $8,988,028.17 $6,694,416.79

Reduced Part-time 2,814 0 2,432 382 $2,467,981.29 $1,748,637.74

Total 24,409 0 18,067 6,342 $59,722,398.65 $43,753,421.40

Full-time 17,551 0 13,563 3,988 $61,095,280.87 $46,175,514.17 

1995 Part-time 6,850 0 4,362 2,488 $9,551,027.13 $6,944,709.87 

Reduced Part-time 577 0 493 84 $481,481.98 $349,740.58 

Total 24,978 0 18,418 6,560 $71,127,789.98 $53,469,964.62

Full-time 17,634 0 13,319 4,315 $60,762,700.91 $47,455,789.27

1996 Part-time 6,942 0 4,467 2,475 $10,085,197.90 $7,157,131.16 

Reduced Part-time 593 0 505 88 $499,514.66 $394,179.93

Total 25,169 0 18,291 6,878 $71,347,413.47 $55,007,100.36

Full-time 23,259 0 17,294 5,965 $79,318,854.34 $62,492,739.88 

1997 Part-time 12,832 0 7,083 5,749 $15,939,868.60 $11,712,827.10 

Reduced Part-time 3,677 0 2,975 702 $2,904,130.87 $2,315,198.17 

Total 39,768 0 27,352 12,416 $98,162,853.81 $76,520,765.15

Full-time 24,749 0 17,903 6,846 $82,264,571.93 $65,310,919.96

1998 Part-time 11,156 0 6,208 4,948 $14,031,027.14 $10,221,261.34 

Reduced Part-time 5,101 0 3,829 1,272 $3,799,775.12 $3,002,711.80 

Total 41,006 0 27,940 13,066 $100,095,374.19 $78,534,893.10

Full-time 23,294 0 17,016 6,278 $78,324,396.27 $62,154,806.61

1999 Part-time 11,333 0 6,915 4,418 $15,636,042.42 $11,226,489.84 

Reduced Part-time 7,260 0 5,862 1,398 $6,095,874.28 $4,841,701.83

Total 41,887 0 29,793 12,094 $100,056,312.97 $78,222,998.28

Full-time 26,203 0 19,082 7,121 $87,921,306.62 $69,539,802.42 

2000 Part-time 13,213 0 8,453 4,760 $19,404,182.70 $13,696,839.52 

Reduced Part-time 13,619 0 10,272 3,347 $10,645,579.77 $8,522,513.48

Total 53,035 0 37,807 15,228 $117,971,069.09 $91,759,155.42

Full-time 29,455 0 22,600 6,855 $104,409,272.45 $82,677,357.22 

2001 Part-time 13,834 0 8,884 4,950 $20,165,005.40 $13,857,320.84 

Reduced Part-time 15,827 0 12,470 3,357 $12,967,902.89 $9,911,073.87 

Total 59,116 0 43,954 15,162 $137,542,180.74 $106,445,751.93

Full-time 28,139 0 23,172 4,967 $107,730,673.73 $87,632,425.99 

2002 Part-time 9,427 0 6,478 2,949 $14,859,278.64 $10,256,610.63

Reduced Part-time 10,842 0 8,118 2,724 $9,300,854.33 $7,263,923.97 

Total 48,408 0 37,768 10,640 $131,890,806.70 $105,151,960.59
Other Accompanying Information | PART IV 84

The Corporation for National and Community Service

Table 8. Trust Enrollment Activity—Program Years 1994 through 2012 (continued)

Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 18,319 0 15,236 3,083 $70,063,810.06 $55,934,642.19 

2003 Part-time 9,424 0 7,063 2,361 $16,283,881.70 $11,512,864.51 

Reduced Part-time 13,272 0 10,590 2,682 $12,084,613.06 $9,179,801.25 

Total 41,015 0 32,889 8,126 $98,432,304.82 $76,627,307.95

Full-time 29,043 0 24,365 4,678 $113,193,761.73 $93,477,949.87 

2004 Part-time 10,833 0 7,614 3,219 $17,514,510.62 $12,242,251.29 

Reduced Part-time 22,779 0 17,992 4,787 $20,763,252.88 $16,094,947.11 

Total 62,655 0 49,971 12,684 $151,471,525.23 $121,815,148.27

Full-time 28,301 0 23,084 5,217 $107,103,981.89 $84,711,932.87 

2005 Part-time 11,132 0 7,809 3,323 $17,968,525.35 $12,501,507.75 

Reduced Part-time 23,365 0 18,084 5,281 $20,338,612.06 $15,087,020.10 

Total 62,798 0 48,977 13,821 $145,411,119.30 $112,300,460.72

Full-time 30,387 0 25,165 5,222 $116,948,260.23 $89,471,824.48 

2006 Part-time 11,619 0 8,199 3,420 $18,935,740.46 $12,706,805.33 

Reduced Part-time 27,255 1 21,001 6,253 $23,833,568.30 $17,395,361.25 

Total 69,261 1 54,365 14,895 $159,717,568.99 $119,573,991.06

Full-time 30,906 0 26,184 4,722 $121,975,658.01 $93,315,578.75 

2007 Part-time 10,137 0 7,367 2,770 $17,027,260.29 $11,316,065.75 

Reduced Part-time 26,943 0 21,366 5,577 $24,309,300.61 $17,449,413.75 

Total 67,986 0 54,917 13,069 $163,312,218.91 $122,081,058.25

Full-time 32,366 1 28,177 4,188 $131,691,166.71 $96,147,881.05 

2008 Part-time 10,678 4 8,109 2,565 $18,833,614.88 $11,958,638.49 

Reduced Part-time 27,008 2 21,877 5,129 $24,991,095.16 $17,186,971.39 

Total 70,052 7 58,163 11,882 $175,515,876.75 $125,293,490.93

Full-time 31,034 23 27,314 3,697 $127,686,952.83 $85,293,978.77 

2009 Part-time 9,877 134 7,521 2,222 $17,461,883.56 $10,159,079.15 

Reduced Part-time 28,864 25 23,293 5,546 $26,469,941.52 $17,313,627.64 

Total 69,775 182 58,128 11,465 $171,618,777.91 $112,766,685.56

Recovery Full-time 7,907 0 6,654 1,253 $31,013,381.18 $19,458,873.01 

Act Part-time 1,662 0 1,221 441 $2,818,344.40 $1,533,463.56 

Reduced Part-time 4,293 0 3,592 701 $4,186,392.62 $2,658,866.81

Total 13,862 0 11,467 2,395 $38,018,118.20 $23,651,203.38
Other Accompanying Information | PART IV 85

The Corporation for National and Community Service

Table 8. Trust Enrollment Activity—Program Years 1994 through 2012 (continued)

Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 37,719 102 33,234 4,383 $175,366,178.35 $89,519,313.43

2010 Part-time 11,425 398 8,544 2,483 $22,330,065.75 $9,695,361.82 

Reduced Part-time 39,213 368 31,535 7,310 $38,513,204.32 $20,742,722.02 

Total 88,357 868 73,313 14,176 $236,209,448.42 $119,957,397.27

Full-time 35,637 4,103 27,591 3,943 $149,608,693.92 $37,112,248.14 

2011 Part-time 10,286 2,980 5,753 1,553 $15,360,779.94 $2,590,914.06

Reduced Part-time 32,689 5,982 22,653 4,054 $29,157,019.73 $8,166,004.39 

Total 78,612 13,065 55,997 9,550 $194,126,493.59 $47,869,166.59

FEMA Corps 

2012 Full-time 480 461 0 0 $0.00 $0.00 

Full-time 21,388 20,163 580 658 $3,030,995.08 $490,691.48

2012 Part-time 2,343 2,324 0 19 $0.00 $0.00

Reduced Part-time 4,960 3,093 1,806 61 $2,121,996.21 $469,673.45 

Total 28,691 25,580 2,386 738 $5,152,991.29 $960,364.93

*Cumulative to Date 1,010,840 39,703 759,963 211,817 $2,426,902,643.01 $1,671,762,285.76

* Excludes FEMA Corps activity
Other Accompanying Information | PART IV 86

The Corporation for National and Community Service

1

 IPERA defines an improper payment as any payment that should not have been made or that was made in an incorrect amount (including overpayments and 

underpayments) under statutory, contractual, administrative, or other legally applicable requirements. It includes any payment to an ineligible recipient, any payment for an 

ineligible service, any duplicate payment, payments for services not received, any payment that does not account for applicable discounts, or any amount that should have been 

paid to an eligible recipient but was not. OMB guidance also states that when an agency’s review is unable to discern whether a payment is proper as a result of insufficient or 

lack of documentation, this payment must also be considered improper.

2

 For Fiscal Year 2012, IPERA and its implementing OMB guidance define “significant improper payments” as annual overpayment amounts plus underpayment amounts in 

a program that exceeds both 2.5% of total program outlays and $10,000,000. 

3

 It should be noted that this was only a relative ranking. The results of the analysis did not alter CNCS’ conclusion that none of its programs meet the IPERA criteria of being 

susceptible to significant improper payments. 

Improper Payments

Like all federal agencies, CNCS is responsible for complying with the 

Improper Payments Elimination and Recovery Act of 2010 (IPERA). IPERA 

requires agencies to evaluate their programs and activities at least once 

every 3 years to determine which programs or activities are susceptible 

to improper payments.1 For any program or activity determined to 

be susceptible to significant improper payments,2 IPERA and its 

implementing Office of Management and Budget (OMB) guidance 

requires agencies to:

• Produce a statistically valid estimate of the improper payments made 

by each program or activity in their agencies.

• Include such estimates in their annual financial statements.

• Report on actions to recover improper payments.

In Fiscal Year 2011, CNCS reported to OMB it had conducted an assessment 

of its programs and activities, and had determined that none were 

susceptible to significant improper payments under the IPERA criteria.

CNCS also reported to OMB that it would engage a contractor to assist 

with a review of CNCS programs to assess the relative levels of risk 

of improper payments, and conduct detailed statistical analysis of 

payments within those programs. CNCS stated that it would use the 

results of the analyses to strengthen its internal controls, and to help 

identify programs and activities where payment recapture audits could 

prove to be cost-effective. 

The initial assessment identified the following ranking of the relative 

levels of risk3 for possible improper payments:

• National Service Trust

• AmeriCorps VISTA

• AmeriCorps State and National

• National Senior Service Corps

• AmeriCorps NCCC

The final detailed statistical analysis of payments under these programs 

will be completed in Fiscal Year 2013. In accordance with IPERA and 

OMB’s guidance, CNCS will use the results of these analyses and 

other risk-based factors to conduct a new periodic review of whether 

any CNCS’ programs or activities meet the IPERA criteria of being 

susceptible to significant improper payments. CNCS will also use the full 

results of these reviews (along with other relevant factors) to determine 

whether it would be cost-effective to initiate specific cost recovery 

audits in programs or activities which are not susceptible to significant 

improper payments. CNCS will report on the results of these analyses in 

its Fiscal Year 2013 Agency Financial Report.