Agency Financial Report

FISCAL YEAR 2015

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

Table of Contents

I. Management’s Discussion and Analysis

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

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

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

Fiscal Year (FY) 2015 Agency Mission Performance ...........................................................................10

FY 2015 Program Mission Performance ....................................................................................12

FY 2015 Agency Management Performance .................................................................................28

Management Assurances ...............................................................................................33

Analysis of Appropriations and Financial Condition ...........................................................................35

II. Financial Statements

Message from the Acting Chief Financial Officer .............................................................................40

Consolidated Financial Statements .......................................................................................41

III. Independent Auditor’s Report

Office of Inspector General (OIG) Transmittal Letter ...........................................................................68

Independent Auditor’s Report on Financial Statements ........................................................................69

Independent Auditor’s Report on Internal Control Over Financial Reporting .........................................................72

Independent Auditor’s Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements ..................................82

OIG Transmittal Letter for Trust Fund Financial Statements .....................................................................86

Independent Auditor’s Report on the Trust Fund Financial Statements ............................................................87

Management’s Response ...............................................................................................90 

IV. Other Information

Donations and Contributions ............................................................................................94

National Service Trust Fund Status Report ..................................................................................97

Improper Payments ..................................................................................................118

How to Serve

If you are interested in joining or learning more about the Corporation for National and Community Service (CNCS) programs, go to 

www.nationalservice.gov. Click “Serve Your Community” to discover which opportunity is right for you.

An electronic copy of this report is available on the web at: www.nationalservice.gov/about/budget-and-performance/performance-and-accountabilityreports

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 2015 Agency Financial Report, Washington, DC, 20525.

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

this report, please contact the Office of the Chief Financial Officer at 202-606-5000 or at the mailing address noted on the page following.
Fiscal Year 2015

Agency 

Financial Report

About this Report

In lieu of a Performance and Accountability Report, the 

Corporation for National and Community Service (CNCS) 

will instead produce three reports that provide financial 

management and program performance information. Each 

report will be available on CNCS’s website as it is completed.

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

on CNCS’s financial management and the results 

of the agency’s annual financial audit. It includes 

management’s assurance statement, CNCS’s improper 

payments report, and a response from management. 

This report can be found at www.nationalservice.gov/

about/budget-and-performance/performance-andaccountability-reports.

• The Annual Performance Report (APR) provides an 

overall assessment of agency performance. The 

APR will be included in CNCS’s fiscal year 2017 (FY 

2017) Congressional Budget Justification, which 

will be transmitted to Congress in February 2016. 

Congressional Budget Justification reports can be 

found at www.nationalservice.gov/about/budget.

• The Performance Highlights Report summarizes 

key information from the AFR and APR. It will be 

available in February 2016.

These reports meet all requirements under the Government 

Performance and Results Act, the Federal Financial 

Management Improvement Act, the Federal Managers’ 

Financial Integrity Act, the Government Corporation Control 

Act, and the Federal Information Security Management 

Act, among others. These reports also follow applicable 

guidance from the Office of Management and Budget 

(OMB), as well as the recommendations of the Association 

of Government Accountants’ Certificate of Excellence in 

Accountability Reporting program.

How This Report Is Organized

Section I: Management’s Discussion and Analysis

Section I provides an overview of performance and financial information. 

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

description of CNCS’s organizational structure and strategic framework. 

This section highlights performance and key accomplishments in each of 

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

assessment of future priorities and assurances over internal controls. The 

section closes with highlights of financial results.

Section II: Financial Statements

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

section provides the details of CNCS’s finances, including the audited 

financial statements and footnotes.

Section III: Independent Auditor’s Report

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

statements and footnotes, compliance matters, and internal controls. This 

section also contains management’s response to the auditor’s report.

Section IV: Other Information

Section IV provides supplementary reporting of Donations and 

Contributions, the National Service Trust Fund (Trust), and Improper 

Payments. Donations and Contributions reporting identifies the nature and 

amount of donations, as well as how they were used in support of CNCS’s 

programs and activities. The National Service Trust Status Report provides 

the status of Segal AmeriCorps Education Awards (Education Awards) 

and student loan interest forbearance to eligible participants. The section 

ends with an assessment of Improper Payments made by each program or 

activity and actions taken to recover them.

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Washington, DC 20525

202-606-5000 • TTY 202-606-3472 

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

The Corporation for National and Community Service

Message from 

the CEO

The Corporation for National and Community Service (CNCS) taps the 

nation’s greatest resource—the American people—to get things done.

Working hand in hand with thousands of local partners, CNCS 

programs improve lives, strengthen communities, and engage millions 

of Americans in solving tough problems.

I am pleased to present our fiscal year 2015 (FY 2015) Agency Financial 

Report. This report demonstrates our continued commitment to strong 

performance, focused investments, innovative partnerships, and 

management excellence.

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

backgrounds in results-driven service, strengthened thousands of 

nonprofit and faith-based groups, and forged innovative partnerships. 

This engagement was matched with increased accountability and our 

strong record of reliable fiscal stewardship that reflects our mission to 

build a better future for our citizens.

Expanding Economic Opportunity

In FY 2015, we continued our focus on expanding economic opportunity 

by educating students for 21st Century jobs, connecting returning 

veterans to employment, helping seniors live independently, rebuilding 

communities after disasters, teaching financial literacy, tutoring 

students in low-performing schools, and more.

CNCS programs also expanded economic opportunity for service 

participants by helping them graduate from high school, gain career 

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

and participants, national service helps expand individual opportunity, 

build family stability, and create more sustainable, resilient 

communities.

Driving Impact and Innovation

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

Kennedy Serve America Act to target resources on Disaster Services, 

Economic Opportunity, Education, Environmental Stewardship, Healthy 

Futures, and Veterans and Military Families. 

Through performance measures, research, and evaluation, CNCS is 

using data to show the impact of national service on key challenges. 

Competition is a fundamental value that we are using to drive funds to 

the highest-quality, highest-value programs.

For instance, the Social Innovation Fund (SIF), now in its fifth year, is 

continuing its promise of finding what works and making it work for 

more people. The SIF combines public and private resources to grow the 

impact of innovative, community-based solutions that have compelling 

evidence of improving the lives of people in low-income communities. In 

five years, the SIF has leveraged more than a half billion of non-federal 

dollars to support more than 200 organizations and to reach more than 

400,000 individuals.

Expanding Partnerships and Growing Volunteerism

National service is a model of public-private partnership that 

recognizes progress is best made by working together. The modest 

federal investment leverages hundreds of millions of additional 

resources from non-CNCS sources to strengthen community impact 

and increase return on taxpayer dollars.

Recognizing the wisdom of this approach, President Obama created the 

Task Force on Expanding National Service to increase national service 

opportunities through partnerships with other federal agencies and 

the private sector. Through our partnerships and growth strategy, we 

have secured public and private sector partners to support more than 

10,000 AmeriCorps positions to meet critical national challenges while 

expanding educational and economic opportunity for those who serve.
Management’s Discussion & Analysis | PART I 3

The Corporation for National and Community Service

Managing for Results and Accountability

CNCS has a deep commitment to ensuring the highest levels of 

accountability. In FY 2015, CNCS maintained its unmodified audit opinion 

for the 16th consecutive year. CNCS is committed to improving its internal 

controls, oversight, and monitoring to demonstrate the importance of 

integrity, accountability, and transparency. We have built an outstanding 

senior team with the vision and experience to lead the agency to higher 

levels of impact and accountability.

National Service Works for America

A sense of shared responsibility is woven into the fabric of our nation. 

For decades, successive Administrations of both parties have invested in 

national service as a smart way to tap the ingenuity and can-do spirit of 

the American people.

Our agency understands the need to continue engaging elected officials, 

and corporate, nonprofit, and other leaders in communicating the impact 

of national service. 

This year, the annual Mayors Day of Recognition for National Service 

engaged a record-high 2,786 mayors and county leaders from across the 

country who united around one common message: AmeriCorps and Senior 

Corps work for America. Together, these officials represent more than 150 

million Americans—nearly 50 percent of the U.S. population. Through 

our Employers of National Service initiative, CNCS is recognizing the 

contributions and unique skills of the more than 950,000 men and women 

who have served in AmeriCorps and the more than 200,000 individuals 

who have volunteered with the Peace Corps. More than 260 employers 

representing 1.5 million jobs in the public, private, and nonprofit sectors 

have joined this effort to recruit and hire AmeriCorps alumni.

We look forward to building on this great foundation and creating more 

opportunities for Americans to make a difference in their communities.

In Service,

Wendy Spencer

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

The Corporation for National and Community Service

Section I:

Management’s 

Discussion 

& Analysis

Agency Mission 

and Overview

The mission of the Corporation for National and Community Service 

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

participation through service and volunteering.

Service and social innovation are vital components of the American 

character. From the earliest days of our nation, Americans have stepped 

forward to help their neighbors, working together in creative ways to solve 

problems and strengthen communities.

As citizens, we recognize that we have responsibilities as well as rights. 

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

communities. National service, volunteerism, and social innovation 

demonstrate the best of the American spirit and ingenuity–people turning 

toward problems and working together to find community solutions. 

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

efforts to engage the energy of citizens to solve problems in communities. 

Working with thousands of local partners, CNCS improves lives, expands 

economic opportunity, bolsters civic and faith-based organizations, 

fosters innovation, and engages millions of Americans in service.

CNCS focuses its resources on the most pressing challenges facing our 

nation:

• Educating students for the jobs of the 21st century

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

economic recovery

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

veterans returning from war

• Helping communities rebuild after natural disasters 

• Promoting health and well being

• Preserving the nation’s parks and public lands. 

Through its AmeriCorps and Senior Corps national service programs, 

CNCS engages millions of Americans in service and volunteerism each 

year at tens of thousands of locations across the country, from large cities 

to small towns and rural areas. 

In addition to CNCS’s national service programs, the SIF improves the 

lives of people in low-income communities. The SIF mobilizes public and 

private resources to replicate and scale promising and evidence-based 

solutions focused on economic opportunity, youth development, and 

healthy futures. 

At a time when public, private, and nonprofit organizations are struggling 

to meet the nation’s most pressing challenges, and when tough choices 

are being made at every level to maximize limited resources, the SIF 

represents a new way of doing business for the federal government.

Evidence and Results

CNCS has made it a priority to develop a knowledge and evidence base 

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

rigorous program evaluation and research initiatives. CNCS’s emphasis 

on evaluation is aligned with federal guidance on the importance of 

using evidence and rigorous evaluation in budget, management, and 

policy decisions. CNCS believes that implementing a robust research 

and evaluation agenda is critical to the agency’s ability to achieve and 

communicate the value that national service and social innovation bring 

to communities across the country. A more detailed discussion of the 

agency’s evidence agenda will be available in the FY 2017 Budget. 
Management’s Discussion & Analysis | PART I 5

The Corporation for National and Community Service

Expanding Economic Opportunity

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

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

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

training they need for productive employment. 

National service and SIF grantees support the beneficiaries of our 

programs by expanding individual opportunity, building family stability, 

and creating more sustainable, resilient communities. When programs 

help seniors live independently in their homes, or provide tutoring to help 

students graduate, or work alongside a low-income family to build a new 

home, they are driving economic independence. 

Second, national service is a proven pathway to education and 

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

to economic opportunity that provides members with valuable skills, 

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

to gaining valuable experience to help them find employment, over more 

than 20 years AmeriCorps alumni have earned an estimated $3 billion in 

Education Awards to help them pay for college or pay back student loans.

CNCS research reinforces the positive connection between volunteering 

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

Pathway to Employment, CNCS found that volunteers have a 27 percent 

higher likelihood of finding a job after being out of work than nonvolunteers. This link was stable across socioeconomic variables such 

as gender, age, ethnicity, geographical area, and job market conditions. 

Volunteering can increase a person’s social connections, professional 

contacts, skills, and experience — all factors that are positively related 

to finding work. Thus, the millions of volunteers engaged through CNCS 

programs each year not only help their communities, they may also 

improve their own employment prospects.

By helping more Americans graduate, pursue higher education, and find 

work, national service provides immediate benefits to the community and 

significant long-term benefits to service recipients and those who serve.

Partnerships 

National service is a public-private partnership that recognizes no one 

sector can meet the nation’s challenges alone and that we make progress 

best by working together. Nearly everything CNCS does is accomplished 

by working with and through others — including nonprofit and faith-based 

organizations, schools and higher education institutions, government at all 

levels, businesses — and, ultimately, individual citizens. 

As the nation’s largest grantmaker for community transformation through 

service, volunteering and social innovation, CNCS supports thousands of 

organizations, including schools, food banks, homeless shelters, health 

clinics, youth centers, veteran’s service facilities, hospitals, and other 

organizations. CNCS’s programs help these organizations expand their 

reach and impact through direct service and by recruiting and managing 

volunteers. Each year, the modest federal investment by CNCS leverages 

more than $800 million in additional resources from non-CNCS sources to 

strengthen community impact. Two examples include: 

• AmeriCorps, Citi Foundation, and Points of Light launched the 

ServiceWorks initiative to help 25,000 low-income youth develop 

the skills they need to prepare for college and careers. The 225 

AmeriCorps members who served in this partnership engaged youth 

age 16-24 in a volunteer response effort in ten cities. 

• In the summer of 2015, as part of a major expansion of the Science, 

Technology, Engineering, and Math education (STEM) AmeriCorps 

initiative that President Obama announced at the White House 

Science Fair, CNCS placed 256 AmeriCorps VISTA (Volunteers 

In Service To America) members in Alabama, Florida, Georgia, 

Mississippi, South Carolina, and West Virginia. These VISTA members 

connected approximately 20,600 at-risk students in low-performing 

schools to STEM opportunities. 

In addition to collaborating with nonprofit organizations across the 

country, CNCS also works with federal, state, and local government to 

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

important community needs. Congress created national service as a 

shared federal-state partnership, providing a central role for governors in 

designing and implementing national service through governor-appointed 

State Service Commissions. CNCS also works closely with mayors and 

city officials across the country, supporting organizations that achieve 

measurable results where the need is greatest.

On the federal level, CNCS has developed several innovative partnerships 

with other agencies to meet critical challenges and expand opportunities 

for those who serve. For example:

• FEMA Corps is a unit of the AmeriCorps National Civilian Community 

Corps (NCCC) that strengthens disaster response capacity, prepares 

young people for emergency management careers, and saves 

significant taxpayer dollars.

• School Turnaround AmeriCorps is a partnership between the U.S. 

Department of Education and AmeriCorps that is bringing hundreds 

of new AmeriCorps members into some of the nation’s lowestperforming schools, where they work to boost student academic 

achievement, attendance, high school graduation rates, and college 

and career readiness. 

• As part of the Administration’s My Brother’s Keeper initiative, CNCS 

joined the Department of Justice in launching Youth Opportunity 

AmeriCorps, a $10 million investment over 3 years to enroll 

disconnected youth in national service programs. 
Management’s Discussion & Analysis | PART I 6

Building on the success of these partnerships, President Obama created 

the President’s Task Force on Expanding National Service (Task Force), 

co-chaired by the Domestic Policy Council and CNCS. The Task Force is 

the latest action the Administration has taken to expand opportunities for 

Americans to serve, to focus service on our toughest challenges, and to 

increase the impact citizens have in our communities and nation. Through 

these new partnerships, an estimated $33 million in additional resources 

have been dedicated to these priorities while creating approximately 

4,200 opportunities to serve in our communities.

CNCS has worked with a number of federal and private sector partners 

to launch new AmeriCorps service opportunities that address critical 

challenges, including: 

• Justice AmeriCorps, a partnership between CNCS and the 

Department of Justice, is engaging approximately 100 lawyers 

and paralegals annually as AmeriCorps members to provide legal 

services to unaccompanied immigrant children. 

• The Financial Opportunity Corps, a partnership with Bank of America 

and Points of Light, engages VISTA members in bringing financial 

coaching to 10 communities around the nation. 

• The U.S. Forest Service and AmeriCorps have joined in a new 

21st Century Conservation Service Corps partnership to engage 

approximately 300 AmeriCorps members and other youth in gaining 

valuable career skills and experience while restoring the nation’s 

forests and grasslands.

In addition to implementing these initiatives, CNCS is continuing to work 

with other federal agencies and the private sector to develop other service 

corps to meet the nation’s most important challenges while providing 

pathways to opportunity for those who serve. 

Efficiency and Accountability

CNCS has made it a priority to develop a knowledge and evidence 

base to support the agency’s mission, programs, and strategic goals 

through rigorous program evaluation and research initiatives. CNCS’s 

emphasis on evaluation is aligned with the Administration’s guidance 

on the importance of using evidence and rigorous evaluation in budget, 

management, and policy decisions. CNCS believes that implementing a 

robust research and evaluation agenda is critical to our ability to achieve 

and communicate the value that national service and social innovation 

bring to communities across the country. 

CNCS is committed to increasing efficiency in its program and financial 

operations, streamlining processes and reducing burdens, and supporting 

grantees and project sponsors in achieving their objectives. Among 

other activities, CNCS is increasing efficiency by enhancing the agency’s 

accounting and financial management systems, streamlining grant 

applications, making customer transactions more user-friendly, and 

developing more efficient grant monitoring tools.

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.
Management’s Discussion & Analysis | PART I 7

The Corporation for National and Community Service

At its inception, CNCS was directed to manage two main programs: Organizational Structure • Senior Corps, which incorporated the Foster Grandparents Program Headquartered in Washington, D.C., CNCS is an independent federal (FGP), RSVP, and Senior Companion Program (SCP) agency with a Board of Directors, Chief Executive Officer (CEO), and • The newly-created AmeriCorps, which incorporated Volunteers in Inspector General (IG) – all of whom are appointed by the President and Service to America (VISTA), State and National, and the National confirmed by the Senate. Civilian Community Corps (NCCC).

Enacted on April 21, 2009, the bipartisan Edward M. Kennedy Serve The CEO provides overall management for the agency’s programs and 

America Act (SAA) reauthorized and expanded the mission and operation of operations, including more than 600 employees who work throughout the 

CNCS, amending the National and Community Service Act of 1990 and the United States and its territories. The Board of Directors works closely with 

Domestic Volunteer Service Act of 1973. the CEO to set the direction for CNCS, advises the President and Congress 

concerning developments in national and community service that merit 

The SAA authorized both the expansion of existing service programs and their attention, and conducts an annual evaluation of the CEO.

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 its impact using standardized performance measures.

Figure 1: CNCS Organization Chart 

Government Relations 

K. Allman

Research & Evaluation

M.Hyde

External Affairs

T. Miller

Board of Directors

AmeriCorps State & Nat’l

W. Basl

Chief of Program Operations

K. Mansaray

Chief of Staff

A. Mishra

Chief Executive Officer

Wendy Spencer

AmeriCorps NCCC

J. Phillips

AmeriCorps VISTA

P. Monteiro

Inspector General

Deborah Jeffrey

Office of Field Liasion

M. Herrington

Senior Corps

E. Tan

General Counsel

J. Joseph

Chief Operating Officer 

J. Page

Social Innovation Fund

D. Thorman

Chief Financial Office

*C. Ejiasa (on detail)

*J. Page (Acting)

Human Capital

S. Bradberry

Grants Management 

D. Bourne

Accountability & Oversight

K. Gillis

Information Technology*

*T. Hanley

Organization Chart is as of October 2015 

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

The Corporation for National and Community Service

Figure 2: CNCS Field Offices 

San Juan, PR

NCCC Campus

Baltimore, MD

Strategic Priorities which its recipients are having an impact. As CNCS works to expand and 

strengthen national service, the agency is also taking additional steps to 

During FY 2015, CNCS received $1.05 billion in resources that it used to adopt a more performance-oriented culture. 

focus national service on six priority areas: Disaster Services, Economic 

Opportunity, Education, Environmental Stewardship, Healthy Futures, These steps include building structures and systems for performance 

and Veterans and Military Families. In addition, CNCS set forth the goals measurement, analysis, and knowledge management, and enhancing staff 

outlined in the tables on the following pages to help improve lives and capacity to support results-based services. Highlights of this effort are 

strengthen communities of those serving and being served by the agency’s provided later in this report. While working toward its goals, CNCS is also 

programs. renewing its commitment to operational efficiency and accountability. 

More specific information on related performance initiatives will be 

CNCS’s priority measures provide a common focal point for all its presented with the CNCS FY 2017 Congressional Budget Justification in 

programs, and they allow the agency to demonstrate the tangible ways in February 2016. 
Management’s Discussion & Analysis | PART I 9

The Corporation for National and Community Service

Strategic Priority Goals

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

CNCS-supported programs 

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

mitigation, response, and/or recovery. 

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

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

Education Percent of children that demonstrated gains in school readiness. Percent of students served by or serving in 

CNCS-supported programs that demonstrated improved academic performance (including the percent meeting 

state proficiency levels in literacy and/or math, or whose scores on state standardized tests improved). Percent 

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

demonstrated improved academic engagement. 

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

volunteers. 

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

and reported having increased social ties/perceived social support. Number of individuals that gained access 

to food resources provided with the assistance of CNCS-supported members, participants, or volunteers. 

Veterans and Military 

Families

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

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

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

consistently find satisfaction, meaning, and opportunits

Veterans and Military 

Families

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

programs.

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

to future educational, professional, or civic endeavors.
Management’s Discussion & Analysis | PART I 10

The Corporation for National and Community Service

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

Social Innovation Number of veterans and military family members engaged in providing services through CNCS-supported 

programs.

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

to future educational, professional, or civic endeavors.

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

organization

Information Technology (IT) Complete modernization of IT infrastructure.

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

audit.

Grant Management Award and close grants and contracts within prescribed timeframes.

FY 2015 Agency Mission performing organizations and improving the lives of people in lowPerformance income communities, including continuing to support the SIF Pay for 1 Success grants that seek to more closely align public funding with 

impactful outcomes In FY 2015, CNCS continued to provide targeted, critical support through 

its national network of State Service Commissions, grantees, and • Provided critical support to Americans affected by natural and 

partners to deliver services to communities throughout the country. Below man-made disasters, including direct assistance to homeowners in 

is a partial sample of these accomplishments, grouped by goals set out in the cleanup and gutting of their homes, volunteer coordination, and 

the agency’s Strategic Plan: documentation of match that may be used for a state’s cost share 

for Federal Emergency Management Agency (FEMA) grants

Goal 1: Increase the impact of national service on local • Awarded 10 Operation AmeriCorps grants to help tribal and local 

needs in communities served by CNCS-supported programs leaders address their community’s most pressing local challenges. 

In this program, which was initiated in the summer of 2014, tribal • Engaged approximately 78,000 AmeriCorps members and nearly 

and local leaders identified a high-priority local challenge that 270,000 Senior Corps volunteers in results-driven service to 

AmeriCorps members can address in a relatively short period of strengthen education, support veterans and military families, help 

time. Unlike other CNCS programs, applicants were able to request communities recover from disasters, expand economic opportunity, 

AmeriCorps State and National, AmeriCorps VISTA, and AmeriCorps preserve the environment, provide health services, and more

NCCC resources in a single application. • Created new public-private and interagency partnerships through 

• C ontinued partnerships to support community solutions including the the President’s Task Force on Expanding National Service to engage 

Shaping Our Appalachian Region initiative to improve the economy more Americans in meeting national priorities and expanding 

and quality of life in rural Eastern Kentucky and the AmeriCorps educational and economic opportunity for those who serve

Urban Public Safety Corps to reduce crime and blight in Detroit. • Awarded the sixth year of SIF funding to experienced grantmakers 

with strong track records in expanding the impact of high1

 All FY 2015 member and volunteer data are estimated.
Management’s Discussion & Analysis | PART I 11

The Corporation for National and Community Service

Goal 2: Strengthen national service so that participants • Supported five regional training events led by State Service 

engaged in CNCS-supported programs consistently find Commissions that engaged 2,000 staff from AmeriCorps and Senior 

opportunity, satisfaction, and meaning Corps grantees, State Service Commissions, and other partners. 

These trainings focused on performance measures, compliance with • Continued support for Employers of National Service, an initiative to grant requirements, evaluation strategies, best practices, and used recognize the valuable skills and experience gained by AmeriCorps a peer-to-peer approach that leveraged the knowledge and skills of and Peace Corps alumni and to provide opportunities for them to the field to advance the mission of national service. apply their skills in the workplace 

• Recognized the 50th anniversary of AmeriCorps VISTA and its efforts Goal 4: Fortify management operations and sustain a to mitigate poverty over five decades capable, responsive, and accountable organization

• Continued the Call to Service initiatives which engage hundreds of • Continued to implement enhancements to the agency’s Integrity thousands of Americans in projects on the Dr. Martin Luther King Assurance Program and planning to incorporate the principles Jr. Day of Service and the September 11th National Day of Service of Enterprise Risk Management outlined by the Government and Remembrance, many of which focus on supporting veterans, Accountability Office’s “Standards for Internal Control in the Federal soldiers, and military families Government” also known as the “Green Book.” Implementing • Piloted an alumni survey of AmeriCorps State and National Enterprise Risk Management will help develop heightened members through which 75 percent reported that they did things accountability among staff at the agency and its network of they never thought they could do and 88 percent felt their future Governor-supported State Service Commissions and grantees. educational, professional, or civic endeavors will benefit as a result • Expanded partnerships between CNCS and other federal agencies of AmeriCorps service. to increase AmeriCorps service opportunities and to support partner 

agencies’ national priorities. Goal 3: Maximize the value we add to grantees, partners 

and participants • Continued to enhance the agency’s accounting and financial 

management systems to improve operational efficiency, including • Through the funding of AmeriCorps programs across the nation, updating the system that electronically clears checks, thereby established an infrastructure that recruited and managed more than reducing the potential for human error and increasing the accuracy 1,000,000 community volunteers to multiply the impact of national of payment recordkeeping. service participants and strengthen nonprofit and faith-based • Maintained the agency’s unmodified audit opinion for the 16th organizations across the country. AmeriCorps VISTA members consecutive year. specifically raised more than $200 million in cash and in-kind 

• Continued modernization efforts of the IT infrastructure and resources in support of anti-poverty programs. 

systems. • E xpanded the use of competition to increase quality and impact, 

including a new competition for an AmeriCorps Partnership Challenge 

and Youth Opportunity AmeriCorps as well as continued competition 

for regional training events, Justice AmeriCorps, School Turnaround 

AmeriCorps, RSVP, and AmeriCorps State and National grants.

• Strengthened relationships with governors, mayors, and other local 

elected officials across the country. These officials are important 

partners in identifying local needs and ensuring national service 

resources are effectively meeting those needs. 

• Strengthened volunteer recruitment and management practices in 

18 states through the Volunteer Generation Fund.
Management’s Discussion & Analysis | PART I 12

The Corporation for National and Community Service

FY 2015 Program Mission 

Performance2

AmeriCorps State and National3

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

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

state and inhabited territory. These AmeriCorps members have dedicated 

millions of hours of service in communities across the nation. They have 

expanded economic opportunities for all Americans through activities 

such as tutoring, disaster response, and helping veterans. 

AmeriCorps State and National Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2015 ENACTED LEVEL: $335.4 MILLION

In FY 2015, AmeriCorps State and National engaged more than 69,000 

members in addition to more than 1,000,000 volunteers to help achieve 

the estimated results below.

Strategic Objectives and Performance Measures FY 2015 Estimated4

Help improve school readiness for economically-disadvantaged young children

Number of students showing improved academic performance 333,000

Number of students demonstrating improved academic engagement 151,000

Help increase the number of veterans served by CNCS programs

Number of veterans, veterans' family members, family members of active-duty military, and military service members 44,500

served

Help individuals and communities prepare, respond, recover, and mitigate disasters and increase community resiliency.

Number of individuals receiving disaster preparedness services 665,000

Help improve at-risk ecosystems

Number of at-risk acres and miles of public land improved 874,000

Help increase the number of economically-disadvantaged people transitioning into or remaining in safe, healthy, 

affordable housing

Number of economically disadvantaged people receiving housing assistance 31,000

Help reduce childhood obesity and increase access to nutritious food 

Number of individuals that gained access to food resources 75,000

Help improve organizational capacity to conduct rigorous evaluations of CNCS programs to measure outcomes 

and impact

Percent of program awardees with at least preliminary levels of evidence 71

2

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

3

 FY 2015 data is estimated.

4

 Estimate is based on performance measures in applications from grantees who will report results in fall 2015. Additionally, the distribution of measures used across the portfolio is dependent on 

which programs are funded and which performance measures they believe best capture the outcomes of their program model. As grantees change and/or they change what they are measuring, the 

total targets may vary from year to year.
Management’s Discussion & Analysis | PART I 13

The Corporation for National and Community Service

The AmeriCorps State and National performance measures presented 

above do not reflect all of the work being done by grantees, but they do 

help illustrate how CNCS is having a positive influence on challenges 

important to the broad range of citizens across the nation. For example, 

three of the measures track improvements in students’ success in school 

or helping people find safe housing, which are issues that affect millions 

of Americans. For FY 2015, CNCS estimates that its recipients met the 

needs of more than 500,000 people in these priority issue areas. 

For activities in FY 2014, the most recent year for which CNCS has actual 

data, grantees reported on 77 different national performance measures 

plus numerous recipient-determined measures. For example, CNCS has 

continued to expand the number of self-identified veterans that have 

served in AmeriCorps State and National. The number has increased by 20 

percent over the past two years and now exceeds 1,200 members.

In the fall of 2015, CNCS will collect data regarding progress that took 

place during FY 2015 based on funded activities of FY 2014 recipients. 

The agency will continue to analyze this information over the coming 

months and provide more detail in the agency’s FY 2017 Congressional 

Budget Justification.

Results of Evaluations

The following programs are a few that submitted recently-conducted 

The following programs submitted the results of recently-conducted, 

rigorous third-party evaluations this year. The strength of these findings 

demonstrates how national service provides important support from 

cradle to career.

• Playworks conducted a quasi-experimental design and 

an experimental, randomized controlled trial study. Both 

demonstrated positive, statistically-significant findings. In the 

Playworks model, AmeriCorps members use play to teach and 

model skills such as respect, empathy, problem-solving, and 

conflict resolution. The resulting positive recess climate improves 

students’ feelings of inclusion, which in turn leads to an improved 

overall school climate in which students are 36 percent more 

likely to feel physically and emotionally safe and 42 percent more 

likely to feel they belong. In addition, they have a 34 percent 

greater sense of connection to school. Research has identified 

that school engagement is an indicator of long-term academic 

success and positive social outcomes. 

• A randomized controlled trial study of the Reading Partners program 

assigned 1,265 students from second to fifth grades at 19 schools to 

either receive or not receive the intervention. Using student reading 

assessment scores from the beginning and end of the school year, 

the evaluation found statistically significant impacts of the program 

on reading comprehension, reading fluency, and sight-word reading 

after one year. 

AmeriCorps VISTA5

AmeriCorps VISTA was created to help reduce poverty and build economic 

opportunity throughout the country. Authorized in 1964 as Volunteers in 

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

programs in 1993. AmeriCorps VISTA primarily supports efforts to alleviate 

poverty by engaging individuals aged 18 and older in a year of full-time 

service. These AmeriCorps members build the organizational, administrative, 

and financial capacity of programs that help low-income Americans gain the 

skills and resources they need to break the cycle of poverty.

AmeriCorps VISTA Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2015 ENACTED LEVEL: $92.4 MILLION

In FY 2015, CNCS funded approximately 7,800 AmeriCorps VISTA members 

who leveraged more than one million additional volunteers to help 

organizations meet community needs in the agency’s primary focus areas. 

These organizations in turn generated more than $200 million in cash and 

in-kind resources that expanded the program’s reach. The following are 

examples of AmeriCorps VISTA successes by focus area.

Economic Opportunity

Financial Opportunity Corps

During FY 2014, the most recent year in which information is currently 

available, in partnership with Bank of America and the Points of Light 

Institute, AmeriCorps VISTA launched the Financial Opportunity Corps to 

support low- and moderate-income households. This initiative placed 20 

AmeriCorps VISTA members at local nonprofit, public, and faith-based 

organizations throughout the country. The AmeriCorps VISTA members 

build local capacity at their sites by launching and supporting financial 

coaching programs to help low- and moderate-income households achieve 

financial stability.

Neighborhood Housing Services of Greater Cleveland (Cleveland, OH)

One of AmeriCorps VISTA’s most significant accomplishments was 

recruiting and managing volunteers to operate and provide outreach for 

the Volunteer Income Tax Assistance (VITA) website in Ohio. In FY 2014, 

the most recent year for which data is available, the number of clients 

served increased by 53 percent. 

5

 FY 2015 data is estimated.
Management’s Discussion & Analysis | PART I 14

The Corporation for National and Community Service

In total, the VITA site saved 917 clients from spending $412,650 with paid 

tax preparers. Those 917 clients:

• Qualified for $475,009 in Earned Income Tax Credits

• Received $1,049,943 in federal tax refunds

• Received $110,929 in Ohio state tax refunds.

Education

ServiceWorks

Citi Foundation’s $10 million investment in ServiceWorks is one of the 

largest private sector commitments in AmeriCorps VISTA history. Managed 

by Points of Light, ServiceWorks is a groundbreaking, three-year national 

program that engages volunteers to assist 18,000 low-income youth 

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

college and careers. The program, which will deploy 225 AmeriCorps VISTA 

members over three years, also engages youth, ages 16–24, in service 

and build a large-scale volunteer response to the crisis of low college and 

career attainment.

Healthy Futures

Top Box Foods VISTA Project, Chicago, Illinois 

The Top Box Foods VISTA project addresses the issue of food deserts 

and swamps in low-income Chicago neighborhoods that either lack 

grocery stores or offer fast food only. Top Box provides high quality 

and nutritious food at affordable prices to low-income individuals and 

families. AmeriCorps VISTA members help expand the program by adding 

churches, community organizations, schools, pantries, public housing, 

and senior centers as partners. 

In FY 2015, AmeriCorps VISTA members developed 21 new community 

partners, recruited 75 new community volunteers, and secured $48,000 

in grant funding. These operational and financial capacity-building 

efforts enabled the program to distribute 227,284 lbs. of food, including 

137,445 lbs. of fresh produce to 1,450 new customers. Most program 

participants (90 percent) reported that Top Box increased their food 

security and helped them to provide high quality nutritional meals to 

their family. 

Capacity-Building 

Many AmeriCorps VISTA service sites engage members in one or more 

service activities such as strengthening community partnerships, recruiting 

volunteers, and helping to improve voluntary organizations’ management 

systems. The key to the effectiveness of AmeriCorps VISTA projects is that the 

local community determines how AmeriCorps VISTA members are leveraged 

to create or expand their capacity to address local needs. 

AmeriCorps NCCC7

AmeriCorps NCCC is a residential, team-based program that provides 

opportunities for young Americans between the ages of 18 and 24 to 

address pressing national and community needs in all 50 states through 

10 months of full-time, intensive national service. 

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

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

coordination which prepare its members to serve with AmeriCorps 

Disaster Response Teams and as force multipliers that can effectively 

coordinate and manage episodic volunteers.

Shaping Our Appalachian Region (SOAR)6

In FY 2015, AmeriCorps VISTA continued to implement this 

initiative, which was launched by Kentucky Governor Steve 

Beshear (D) and Congressman Hal Rogers (R-KY) to help meet 

the challenges in eastern Kentucky related to unemployment and 

poverty, and to help the region develop and put into action new 

locally-oriented strategies to attack persistent challenges. Through 

this investment of more than $1 million, CNCS estimates that 

50 AmeriCorps VISTA members are providing provide 100,000 

volunteer hours to eastern Kentucky families and individuals in the 

areas of job creation and retention, youth engagement, education 

success, and health and human services. These AmeriCorps VISTA 

members recruit and manage volunteers, raise funds, and build 

the capacity of 16 local nonprofit and education organizations 

that tackle poverty and expand opportunity to 50 counties in rural 

Kentucky’s Appalachian region.

AmeriCorps VISTA Members Generate Significant 

Additional Resources to Help Fight Poverty

A single AmeriCorps VISTA member secured a $19.9 million 

grant funded by the U.S. Department of Agriculture to help 

underemployed Kentuckians gain vital workforce skills. Partnering 

with the Eastern Kentucky Concentrated Employment Program 

(EKCEP), Education and Workforce Development Cabinet, and the 

Kentucky Community and Technical College System, this grant will 

help low-income residents increase their employment readiness. 

6

 CNCS will provide updated results for this initiative in the agency’s FY 2017 Congressional Budget Justification.

7 FY 2015 data is estimated.
Management’s Discussion & Analysis | PART I 15

The Corporation for National and Community Service

AmeriCorps NCCC Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2015 ENACTED LEVEL: $30.0 MILLION

In FY 2015, AmeriCorps NCCC estimates that it engaged 1,000 members 

and recruited or managed more than 12,000 additional volunteers in 

efforts to improve communities throughout the country. NCCC leveraged 

approximately 11,000 fewer volunteers in FY 2015 as compared to FY 

2014 due to differences in the number and type of projects. 

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

AmeriCorps NCCC members serve at the request of local, state, and 

regional organizations in the focus areas identified in the SAA and 

CNCS’s Strategic Plan: natural and other disasters, infrastructure 

improvement, environmental stewardship and conservation, urban and 

rural development, and energy conservation. Below is a sample of results 

for selected measures within these focus areas.

In addition to capturing these performance indicators, AmeriCorps NCCC 

conducts project sponsor surveys, which provide outcome evidence on 

the community impact of the AmeriCorps NCCC program model. The 

most recently available results, for FY 2014, demonstrate two primary 

results of AmeriCorps NCCC projects. First, AmeriCorps NCCC service 

enhanced the capacity of the sponsoring organization to meet community 

needs. Second, collaborating with AmeriCorps NCCC expanded or 

enhanced the sponsoring organization’s community impact. Nearly all 

of the sponsors (95 percent) enhanced their ability to provide services, 

including increasing the number of people they could serve and the 

amount of service they could provide. Specific examples of projects are 

described below.

AmeriCorps NCCC Performance Measures

Performance Indicator FY2015 Actual

Wildfires - suppressed and contained 39,089

Wildfire - acres of brush cleared 3,824

Wildfire - prescribed burns 14,727

Homeless assisted 18,289

At-risk youth assisted 24,654

Veterans assisted 4,705

People taught environmental information 19,207

New trees planted 49,409

Volunteers coordinated or recruited 24,645

Houses constructed 275

Houses weatherized/outfitted with 

energy-efficiency modifications 200

Taxpayer dollars returned to Americans through 

tax prep services $16,588,114

FEMACorps: Helpline calls answered 23,557

FEMACorps: Educational materials or 

preparedness kits distributed 18,534

FEMACorps: Survivor cases updated 2,651

FEMACorps: Shelter sites assessed 1,769
Management’s Discussion & Analysis | PART I 16

The Corporation for National and Community Service

For FY 2015, in support of the work highlighted earlier in this section, 

AmeriCorps NCCC project hours were allocated as follows:

FY 2015 AmeriCorps NCCC Project Hours by Focus Area8

Issue Area

Team Service

Hours 

Completed9

Percentage

of Total Team 

Service Hours

Natural and Other Disasters 193,938 16.54%

Infrastructure Improvement 136,189 11.61%

Environmental Stewardship and 

Conservation

343,751 29.31%

Energy Conservation 10,442 .89%

Urban and Rural Development 488,472 41.65%

Total 1,172,792 100%

responded to disasters throughout the country, including in Guam and 

Puerto Rico. In response to flooding, the state of Texas requested 10 

AmeriCorps NCCC and FEMA Corps teams (1,722 members) which 

complemented the efforts of other CNCS disaster programs to provide 

critical resources to disaster damaged areas. They played a critical role 

in marshalling and managing outside volunteers to augment their efforts 

and helped bridge the gap between private and government sector 

assistance to disaster survivors. 

Disaster survivors continue to benefit from innovative practices that FEMA 

Corps amplifies, including the use of cross functional teams. The first 72 

hours are critical in disaster response, and FEMA Corps teams are often 

first on the scene to establish response infrastructure. The new FEMA 

Corps management assistance teams enhance effectiveness, efficiency, 

and capacity and ultimately benefit disaster survivors. The agency has 

highlighted this partnership as a great example of government delivering 

services better, faster, and more efficiently – a core element of President 

Obama’s Management Agenda.

Infrastructure Improvement – Bigfork Playhouse Children’s Theater; 

Bigfork, Montana

An NCCC team partnered with the Bigfork Playhouse Children’s Theater 

(BPCT) to assist with infrastructure improvements and after school 

programming. The BPCT produces and presents a yearly series of 

youth-oriented theatrical productions at the Bigfork Center for the 

Performing Arts in order to promote, encourage, and help train youths in 

all aspects of theatre. The Bigfork ACES (Arts, Community, Education, 

and Sports) Afterschool Program also utilizes the theater and provides 

a variety of activities including tutoring and mentoring, music, art, 

recreation, cooking, gardening, STEM, and social enrichment classes 

to at-risk youth. While serving at BPCT, the NCCC team renovated the 

theater and engaged youths in the afterschool program to encourage 

physical activity, creative adventures, and healthy interpersonal 

communication. BPCT performs for approximately 5,000 children and 

involves 150 children in various programs throughout the year, including 

the afterschool program. The improvement of the facilities will assist in 

helping children feel special, valued, and safe.

State Service Commissions 

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

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

partnership, Congress created a unique role and responsibility for State 

Service Commissions. More than a thousand private citizens serve as 

governor-appointed commissioners and direct the states’ national service 

efforts. These State Service Commissions are invaluable partners to 

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

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

participants. The most recent performance measures survey for the 

AmeriCorps NCCC program found that members reported: 

• Improved sensitivity and respect for cultural differences (90%)

• Strengthened commitment to community service (84%) 

• Increased likelihood to motivate others to strengthen their 

commitment to community service in the next year (88%) 

• An intention to volunteer more frequently (84%).

Successful Project Examples

Urban and Rural Development – 2015 Summer Food Program Support

AmeriCorps NCCC teams addressed childhood hunger in several states by 

supporting, enhancing and improving access to food during the summer 

of 2015. The City of Little Rock, Arkansas, received a $200,000 Cities 

of Service Leadership Grant funded by Bloomberg Philanthropies and 

the Rockefeller Foundation and initiated an evidence-based childhood 

obesity intervention. Three AmeriCorps NCCC teams delivered nutrition 

presentations to students, constructed gardens, and led physical activity 

programs for students. 

Supporting Disaster Survivors

In FY 2015, AmeriCorps NCCC responded to flooding in Michigan, 

Texas, Oklahoma, South Dakota, and West Virginia. FEMA Corps teams 

8 Data submitted as of October 15, 2015.

9

 These hours do not include those devoted to training or the 80 hours of individual service each NCCC member must complete with a community sponsor of their own choosing.
Management’s Discussion & Analysis | PART I 17

The Corporation for National and Community Service

CNCS, identifying local needs and directing federal and state resources to 

address them.

State Service Commissions Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2015 ENACTED LEVEL: $16 MILLION

In FY 2015, State Service Commissions continued to conduct a variety of 

activities in their states to ensure accountability, develop partnerships, 

build the use of evidence, and maintain a strong network of service 

delivery. These activities included training, performance reviews, site 

visits, risk assessments, and other activities. 

As an example of partnership development, ServeMinnesota continued to 

support the expansion of Reading Corps, an evidence-based, data-driven 

model that has proven to be effective in boosting literacy levels of Pre-K 

and K-3 students. ServeMinnesota has provided technical support for the 

replication of the Reading Corps model, which now operates in 11 states 

and Washington D.C., serving more than 40,000 students annually in 

nearly 1,200 preschools and elementary schools.

Many State Service Commissions play leadership roles in disaster 

services operations, working in partnership with state emergency 

management agencies, Voluntary Organizations Active in Disasters 

(VOADs), and faith-based and nonprofit organizations. Some State 

Service Commissions are formally charged with key response tasks 

including managing volunteers and donations. For example, 91 

AmeriCorps members supported by the Missouri Community Service 

Commission participated in disaster service projects in 2013-2014. 

Those members responded to 70 local disasters and provided assistance 

to 3,266 individuals affected by disaster. The AmeriCorps St. Louis 

Safety Service Corps, which focuses on responding to disaster, has 

responded to disasters in more than 50 counties in 30 states. 

State Service Commissions also promote the evidence agenda. For 

example, the Seeing Impact Project is a partnership of Serve Washington 

and Oregon Volunteers to design and embed programs into the leadership 

teams of Oregon and Washington AmeriCorps that evaluate impact in 

credible, powerful, and meaningful ways. The intent is to develop the 

capability of leaders to develop durable and sustainable practices of 

evaluating impact.

One of CNCS’s most significant State Service Commission successes 

is the Detroit Urban Safety Corps. For this effort, CNCS partnered with 

Michigan’s Governor, Detroit’s Mayor and Police Chief, and Wayne State 

University to mobilize community members to help increase public safety 

and reduce blight in a number of high-need Detroit neighborhoods. 

AmeriCorps members along with volunteers created special maps 

featuring crime hotspots, which were targeted for focused area patrols 

– by both uniformed and plain clothes officers – and other community 

policing methods. AmeriCorps members mobilized and recruited 

community volunteers that became part of the solution.

In addition, those State Service Commissions with AmeriCorps National 

Direct operating sites in their states support and connect those sites to the 

AmeriCorps network in the state. State Service Commissions are responsible 

for conducting a variety of activities in their states to ensure accountability 

and maintain a strong network of service delivery. These activities include 

training, performance reviews, site visits, risk assessments, and other 

oversight activities. As the centers for national service and volunteer activity 

in their states, State Service Commissions have established partnerships 

that strengthen service and expand volunteer opportunities.

Senior Corps RSVP10

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

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

independent living services. RSVP is a flexible volunteer service model 

without established service schedules or compensation for the volunteers 

when on assignment, with the exception of insurance coverage and 

mileage reimbursement.

RSVP Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2015 ENACTED LEVEL: $48.9 MILLION

10 FY 2015 data is estimated.
Management’s Discussion & Analysis | PART I 18

The Corporation for National and Community Service

In FY 2015, RSVP volunteers provided service in their communities 

through local organizations that deliver meals to the homes of isolated 

older adults and schools where volunteers tutor at-risk youth. Below are 

estimated results for related RSVP projects.

In addition to carrying out the FY 2015 activities listed above, CNCS 

conducted case studies on disaster services provided by CNCS grantees 

in FY 2013 in response to 1) tornadoes in Moore, Oklahoma, 2) flooding in 

Colorado, 3) flooding in Springfield, Missouri, 4) an industrial accident in 

West, Texas, and 5) damage from Super Storm Sandy on Long Island, New 

York. These case studies resulted in the development of disaster services 

tool kits for RSVP grantees and a series of regional trainings that will 

occur in FY 2016. CNCS also provided $95,000 in supplemental funding to 

the Morehead State University RSVP project to support long-term disaster 

service work in eastern Kentucky.

CNCS recently published a factor analysis and interrater reliability 

analysis of the FY 2013 RSVP competition, validating key elements of the 

program’s grantmaking.12 These elements included the rate of grantee 

compliance in adopting CNCS’s national performance measures. This 

will help ensure that CNCS is able to report RSVP community impact 

measures data in future budget and performance reports. 

Finally, in FY 2015, CNCS estimated that state and local communities 

contributed $39 million in non-federal support, including cash and in-kind 

resources, to RSVP projects. These additional resources, including an 

estimated $4 million in state-appropriated dollars, demonstrate how RSVP 

is able to efficiently expand the reach of federal funds to achieve the 

results highlighted below.

Successful Project Example

RSVP of Central Oklahoma – Moore, Oklahoma

In the year following the Moore, Oklahoma, tornado in 2013, more than 

90 volunteers from RSVP of Central Oklahoma contributed 4,515 hours 

to nine nonprofit and state organizations working in the recovery effort. 

Senior Corps RSVP volunteers answered disaster hotlines, performed 

follow-up calls to families affected by the disaster, served meals, 

provided companionship at day shelters, provided survivors with rides to 

medical appointments, and collected and distributed donated goods to 

disaster survivors. 

During the coming year, volunteers with the RSVP of Central 

Oklahoma will continue to participate in disaster recovery projects, 

and will prepare and distribute disaster-ready kits to families and 

elderly persons in Oklahoma’s tornado-prone communities. Believing 

that public/private partnerships strengthen community impact, the 

Shell Company of the Americas contributed $50,000 to support the 

vital disaster recovery and preparedness services provided by the 

RSVP of Central Oklahoma. In her blog, a senior official at Shell 

explains, “At Shell we believe that there is no community issue that 

a group of dedicated individuals can’t solve. When people employ 

teamwork and creativity, good things happen. That is why we support 

national service — a public-private partnership that engages citizens 

in solving problems.”

Additional examples for other focus areas will be provided in CNCS’s FY 

2017 Congressional Budget Justification.

11 In FY 2015, CNCS began a comprehensive review of the first agency-wide performance data reported by RSVP grantees and anticipates providing some related preliminary analysis in FY 2016.

12 Journal Article 2015. 0957-8765 VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations 10.1007/s11266-015-9602-2 Validating Grant-Making Processes: Construct Validity of the 

2013 Senior Corps RSVP Grant Review. http://dx.doi.org/10.1007/s11266-015-9602-2 Springer US, 2015-06-06. Tan, Erwin; Ghertner, Robin; Stengel, Patricia J.; Coles, Malcolm; Garibaldi, Vielka E. 

P 1-22 English.

RSVP Performance Measures11

Measure FY 2015 Estimated

Veterans served 329,000

Children mentored 78,000

Adults receiving independent living services 797,000

Families or caregivers receiving respite care 20,300

Veterans serving as RSVP volunteers 20,100

Volunteers 232,384 
Management’s Discussion & Analysis | PART I 19

The Corporation for National and Community Service

Senior Corps SCP13

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

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

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

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

help aging Americans and veterans to maintain their dignity and quality 

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

experience. Traditional program clients include frail seniors, particularly 

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

disabilities and their caregivers. Below is a selection of important FY 2015 

program accomplishments.

Senior Companion Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2015 ENACTED LEVEL: $45.5 MILLION

In addition to the performance highlighted above, in FY 2015, CNCS 

estimates that state and local communities contributed $22 million 

in non-federal support, including cash and in-kind resources, to 

SCP projects. These additional resources, including an estimated $6 

million in state appropriated dollars, demonstrate how SCP is able to 

efficiently expand the reach of federal funds to achieve the results 

highlighted below.

SCP Performance Measures14

Measure FY 2015 Estimated

Volunteers' hours of service 10,000,000

Families receiving respite care 6,650

Frail, older adults served (e.g., buying 

food, providing transportation to medical 

appointments, etc.)

43,000

Frail, older adult veterans served 3,100

Direct volunteers15 12,190

Successful Project Example

A new SCP grant to the Kenaitze Indian Tribe that will support 40 Tribal 

Elders with an estimated 45 Senior Companions in FY 2015. Recruitment 

of Senior Companions will primarily occur within the existing Tyotkas 

Elders program in Kenai, Alaska through a project partnership with 

the Kenai and Soldotna Senior Centers. Senior Companion Program 

funding will allow the tribe to expand support to homebound elders in 

the community who currently receive limited services and have limited 

connection with the community. In addition to common SCP activities, 

the volunteers will also assist their clients to age in place while still 

maintaining traditional activities. 

13 FY 2015 data is estimated. 

14 In FY 2015, CNCS began a comprehensive review of the first agency-wide performance data reported by SCP grantees and anticipates providing some related preliminary analysis in FY 2016.

15 The Direct Number of Senior Companion Volunteers includes both CNCS funded and non-CNCS funded. Of this total, CNCS estimates that in FY 2015, 2,226 Senior Companion Volunteers were nonCNCS funded. This is based on the most recent available data.
Management’s Discussion & Analysis | PART I 20

The Corporation for National and Community Service

CNCS will provide additional information for the project examples below 

in the agency’s FY 2017 Congressional Budget Justification:

• Kingdom House Senior Companion Program, St Louis, Missouri

• SCP of Harrison County Missouri

• MOVRC SCP.

Senior Corps Foster Grandparent Program (FGP)16

Foster Grandparent Program is an intergenerational program first 

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

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

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

academic, social, or financial disadvantage. Foster Grandparents help 

young children with special or exceptional needs to gain skills and 

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

children in the child welfare system.

Foster Grandparent Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2015 ENACTED LEVEL: $107.7 MILLION

FGP Performance Measures17

Measure FY 2015 Estimated

Volunteers' hours served 23,000,000

Children served 189,100 

Children of military families served 2,700 

Direct volunteers18 25,190

Also in FY 2015, CNCS initiated case studies of two AmeriCorps models 

that are being implemented with FGP’s support. These case studies 

examined the barriers to adoption of evidence-based national service 

models and provide a roadmap for the integration of evidence in the 

Foster Grandparent Program. The results of these case studies will lead 

to the proposal of policy, regulatory, and statutory changes to support the 

expansion of evidence-based programs in FGP. An example of this is the 

proposal to provide statutory relief to allow Foster Grandparent Volunteers 

to serve in team leader roles, as Senior Companion Grantees are allowed.

Additionally, in FY 2015, CNCS estimates that state and local 

communities contributed more than $30 million in non-federal support, 

including cash and in-kind resources, to FGP projects. These additional 

resources, including an estimated $6 million in state-appropriated dollars, 

demonstrate how FGP is able to efficiently expand the reach of federal 

funds to achieve the results highlighted below.

Successful Project Example 

Education – Reading Partners

Charleston Area Senior Citizens (CASC) offers a range of services and 

support to seniors living in the Charleston area and has sponsored a 

Foster Grandparent Program since 1975. There are 60 Foster Grandparents 

serving, and 20 of these volunteers have served as Foster Grandparents 

for at least 10 years. Foster Grandparents with CASC serve at a variety 

of volunteer stations, including pre-schools (including Head Start and 

Early Head Start centers), elementary schools, middle schools, and high 

schools, throughout the Charleston area. The volunteer stations are 

governed by a memorandum of understanding between CASC and the 

school district or individual school. At most volunteer stations, Foster 

Grandparents work directly with a classroom teacher, and they assist the 

teacher by mentoring and tutoring students. 

Foster Grandparents from FGP grantees in Baltimore, Maryland; Denver, 

Colorado; Charleston, South Carolina; and Dallas, Texas served as tutors 

in the Reading Partners program, an evidence-based national service 

model. CNCS is completing a case study in FY 2015 to determine the 

barriers to engaging FGP volunteers in the Reading Partners program 

model. The goal of this research is to increase coordinated service 

between AmeriCorps and Senior Corps grantees to promote the collective 

impact of national service. 

CNCS will provide additional information on the Maryland State 

Department of Juvenile Services in the agency’s FY 2017 Congressional 

Budget Justification.

17 In FY 2015, CNCS began a comprehensive review of the first agency-wide performance data reported by FGP grantees and anticipates providing some related preliminary analysis in FY 2016.

18 The direct number of Foster Grandparent Volunteers includes both CNCS funded and non-CNCS funded. Of this total, CNCS estimates that in FY 2015, 1,186 Foster Grandparent Volunteers were 

non-CNCS funded.
Management’s Discussion & Analysis | PART I 21

The Corporation for National and Community Service

Subtitle H—Innovation and Demonstration and Call 

to Service

Subtitle H Innovation funding provides resources for CNCS to support and 

encourage new forms of national service and civic participation and improve 

existing national service programs. The activities in Subtitle H generally 

promote national service and volunteering throughout the country. These 

activities identify innovative program models and disseminate practices 

found to improve the effectiveness of programs and projects.

Innovation and Demonstration and Call to Service Strategic Goals

2 - Enhance national service 

participant experience

3 - Maximize value to grantees, 

partners, and participants

FY 2015 ENACTED LEVEL: $3.6 MILLION

Call to Service

In FY 2015, Call to Service activities including national days of service, 

partnerships, and convenings that engaged hundreds of thousands of 

Americans in service, expanded to new communities, demonstrated 

impact, and recognized the efforts of those who serve.

Dr. Martin Luther King, Jr. National Day of Service

The Dr. Martin Luther King, Jr. National Day of Service (MLK Day) was a 

significant opportunity to highlight national service. Specific examples of 

MLK Day success include: 

• Faith-based grantee Hope Worldwide engaged more than 6,100 

volunteers and reached more than 43,000 households with critical 

fire prevention safety and disaster preparedness information.

• Service for Peace engaged an estimated 23,300 volunteers in 359 

projects on MLK Day with an additional 3,600 volunteers engaged in 

123 projects in the 40 subsequent days of peace. Projects included 

teen violence mitigation activities and book and clothing drives., 

among many others

• Points of Light mobilized an estimated 111,900 individuals in 

almost 2,000 local projects that provided technical and strategic 

counseling, among other activities. 

September 11th National Day of Service and Remembrance

Like MLK Day, the September 11th National Day of Service and 

Remembrance brought together citizens in all 50 states and the District 

of Columbia to build affordable housing for veterans and military 

families, educate citizens on disaster preparedness, organize food drives, 

and more.

CNCS led the annual event, working with MyGoodDeed, Community 

Organizations Active in Disasters, Inc., Montana Campus Compact, Points 

of Light, and hundreds of nonprofit groups, faith-based organizations, and 

schools and businesses nationwide. In many locations, AmeriCorps and 

Senior Corps members organized and participated in service projects. 

Employers of National Service

Announced by President Obama as part of the 20th anniversary of 

AmeriCorps in FY 2014, this initiative recognizes the valuable skills 

gained by the 900,000 Americans who have participated in AmeriCorps 

since 1994 and the 215,000 who have participated in the Peace Corps. 

Employers of National Service builds a talent pipeline that connects 

AmeriCorps and Peace Corps alumni with leading employers from the 

private, public, and nonprofit sectors to create recruitment, hiring, 

and advancement opportunities. Over 250 employers representing 

corporations; federal, state, and local governments; institutions of 

higher education; and non-profits have committed to seeking and hiring 

AmeriCorps alumni for their organizations. 

Stars of Service

In addition to Employers of National Service, the President established 

the Star of Service on the 20th Anniversary of AmeriCorps. The 

President’s Star of Service Award recognizes youth leaders and 

encourages them to consider applying to serve in AmeriCorps. State 

Service Commissions asked each governor to submit the name of a Star 

of Service recipient between the ages of 12 to 18 for recognition from the 

White House in 2015. 

Mentoring

As part of its focus on engaging Americans in service and volunteering, 

CNCS served as the presenting sponsor of the National Mentoring Summit, 

organized by MENTOR. This summit brought together 500 nonprofit, 

business, and government leaders to enhance the quality and impact of 

mentoring programs, chart the future of mentoring, and focus the power 

of mentoring on measurable outcomes. The Mentoring Summit provided 

CNCS with an opportunity to highlight the agency’s lead role in advancing 

one of the President’s priorities, the My Brother’s Keeper Task Force. 

President’s Higher Education Community Service Honor Roll

Working with the Department of Education, CNCS recognized an estimated 

766 schools for exemplary community service by including them in the 

President’s Higher Education Community Service Honor Roll. The 2014 

Presidential Award winners were California State University, Dominguez 

Hills in Carson, California; Loras College in Dubuque, Iowa; University of 

Nebraska-Omaha in Omaha, Nebraska; and Wheelock College in Boston, 

Massachusetts. The institutions were recognized for their achievements 

in general community service, interfaith community service, economic 

opportunity, or education. 

One of the winners, the University of Nebraska-Omaha, has increased the 

number of service-learning courses offered in all six academic colleges 

and at every level, from first year general education through graduate 
Management’s Discussion & Analysis | PART I 22

The Corporation for National and Community Service

seminars. Today, 42 percent of the student body participates in service 

learning and volunteer projects. In the last 14 years, academic servicelearning has grown from seven courses with 100 students to more than 

160 courses with more than 2,600 students each year.

Support for Innovative Service and Other Assistance 

In FY 2015, CNCS support targeted enhancing grantee and project 

performance through innovative training models, while digital infrastructure 

support focused on compliance, accountability, and management. 

Four hundred AmeriCorps State and National grantee leaders (from State 

Service Commissions, multi-state programs, programs operating in a 

territory without a State Service Commission, tribal programs, and tribal 

planning grantees) participated in their annual symposium. Training topics 

focused on financial, grant management, and compliance requirements. 

In FY 2015, CNCS issued competitive grants for Regional Trainings 

Conferences. The events were held in five locations and reached 2,000 

participants. This innovative series extended training opportunities to 

many frontline staff who have not previously received direct training in 

critical topics including financial and grants management, performance 

measures, and compliance including criminal history checks. 

The Volunteer Generation Fund (VGF)

VGF supports voluntary organizations and State Service Commissions 

that help grow volunteerism, increase volunteer career skills, and expand 

opportunity for the unemployed, veterans, and disadvantaged youth.

Volunteer Generation Fund Strategic Goals

2 - Enhance national service participant experience

FY 2015 ENACTED LEVEL: $3.8 MILLION

In FY 2015, VGF grantees that received awards in FY 2014 reported 

results and CNCS made new awards to grantees that will continue to 

focus on the agency’s priorities.19 All VGF grants support CNCS’s mission 

to improve lives and strengthen communities through growing and 

strengthening national service. 

In FY 2015, State Service Commissions that received their VGF 

grant awards in the previous year supported volunteer connector 

organizations, trained nonprofits in volunteer management, and 

increased the number of new and continuing volunteers in their 

states, especially skilled volunteers. These State Service Commissions 

provided direct support to numerous nonprofits and volunteer 

connector organizations in urban and rural communities in their 

states, and reported on performance measures related to volunteer 

recruitment and management. 

For example, VGF grantees:

• Expanded access to volunteer opportunities by expanding geographic 

reach of volunteer centers in underserved communities 

• Improved systems and training for coordinating disaster and 

emergency volunteers to meet immediate and long-term needs

19 FY 2013 VGF grants were awarded in the 4th quarter of the fiscal year and were funded for one year. Therefore, results from these grants occurred in FY 2014 and represent the most current VGF 

accomplishments. More information on these grants’ results will be provided in the agency’s FY 2017 Congressional Budget Justification.
Management’s Discussion & Analysis | PART I 23

The Corporation for National and Community Service

• Implemented a research-based volunteer management curriculum 

for nonprofit organizations

• Enhanced nonprofit organizational capacity to manage and engage 

volunteers in meaningful service through training and technical 

assistance

• Recruited volunteers from among specialized populations including 

college students, youth, and corporate volunteers 

• Built capacity to manage volunteers in times of disaster. 

In addition, State Service Commissions supported community-based 

organizations by helping them to recruit, manage and support volunteers, 

including four State Service Commissions new to the VGF. All grantees 

sub-grant to locally-based non-profits and volunteer centers, including 

those located in rural and underserved communities in Mississippi, 

Louisiana, Michigan, and Maryland. Priority areas include education, 

disaster response, and capacity-building for volunteer recruitment 

and retention. Several grantees build capacity in their states by 

implementing the Service Enterprise Model, developed under the VGF 

grant by CaliforniaVolunteers. Priority initiatives are represented through 

recruitment of STEM volunteers and focusing on mentoring and training 

and assistance to youth-serving volunteer programs. 

Evaluation20

In alignment with CNCS’s commitment to do what works, and as part of 

the agency’s effort to improve the quality and impact of its programs, 

CNCS implements an ambitious research and evaluation agenda that 

addresses the agency’s mission and illuminates its most effective 

policies, programs, and practices. 

Evaluation Strategic Goals

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

FY 2015 ENACTED LEVEL: $5.0 MILLION

CNCS’s Office of Research and Evaluation worked with program offices 

in FY 2015 to improve the agency’s use of evidence and evaluation in 

budget, policy, and management decisions. Examples of important FY 

2015 accomplishments follow.

Research Learning Strategies

• Initiated a research grant competition to expand the agency’s 

connection to academia. The Notice of Funding Availability published 

in June of 2015 generated 75 letters of interest from institutions 

of higher education nationwide. These letters of interest resulted 

in 55 completed applications and 7 awards to public and private 

universities nationwide. 

• Improved its member survey methodology that will increase the 

quality of information the agency collects from its national service 

members. The member exit survey content and administration were 

revised and administered for the first time in the spring of 2015. 

• Completed a Senior Corps survey that provided first-ever descriptive 

data for volunteers in the program and implementation of a 

longitudinal survey of volunteers based on these findings.

• Drafted a literature-based rationale and data-based volunteering 

and civic engagement supplement21 to share with the U.S. Census 

Bureau and other Federal stakeholders in preparation for revising 

current data collection procedures. 

Evaluation Learning Strategies

• Released a prioritized set of third-party program evaluations focused 

on assessing the agency’s highest-profile initiatives which currently 

include the Social Innovation Fund, School Turnaround AmeriCorps, 

and the Social Innovation Fund Pay for Success.

• Implemented an evaluation capacity-building initiative that has 

increased grantee’ ability to conduct quality evaluations and will 

ultimately generate more credible evidence of effectiveness. Within 

two years of implementing this model, State Service Commission 

staff have experienced a transition from resistance to evaluation to 

invitations from State Service Commissions to offer workshops at 

their regional training conferences nationwide. 

Dissemination and Utilization Strategies

• Launched a virtual repository of evaluation reports and resources, 

facilitating access to existing evidence and best practices for program 

design and evaluation purposes and contributing to an increase of 

three points for the Agency’s What Works Index score in 2015.

• Conducted a systematic review of the National Service and Social 

Innovation research literature and developed two practice briefs 

focused on the Education and Economic Opportunity focus areas for 

the field to use. 

• Completed a review of 50 years of AmeriCorps VISTA’s evaluations 

used to facilitate a discussion with program staff around their longterm research and evaluation strategy. 

Partnerships and Priority Initiatives

CNCS’s Office of Research and Evaluation also continued to work closely 

with agency programs to enhance CNCS’s infrastructure (e.g., leadership, 

systems and structures, communication, culture22) for evidence-based 

decision-making including: 

20 CNCS will be releasing more information about its evidence agenda in the agency’s FY 2017 Congressional Budget Justification. 

21 For more information about these supplements be go to https://catalog.data.gov/dataset/current-population-survey-volunteers-supplement and http://catalog.data.gov/dataset/current-populationsurvey-civic-engagement-supplement.

22 Source: Preskill, H., & Boyle, S. (2008). A multidisciplinary model of evaluation capacity-building. American Journal of Evaluation, 29, 443-459.
Management’s Discussion & Analysis | PART I 24

The Corporation for National and Community Service

• Convening a now-annual research and evaluation strategy meeting 

with agency leadership, including all program directors, to determine 

priorities for the year. 

• Inclusion and refinement of evidence criteria in the scoring matrix for 

AmeriCorps applications.

Social Innovation Fund (SIF)

Both SIF programs focus on:

• Improving economic opportunity

• Improving health outcomes

• Investing in children and youth.

Social Innovation Fund Strategic Goals

3 – Maximize value to grantees, partners, and participants

FY 2015 ENACTED LEVEL: $70.0 MILLION

SIF Classic (Original SIF Program) 

Over the past five years SIF Classic has leveraged public and private 

resources to grow the impact of innovative, community-based 

solutions with compelling evidence of improving the lives of people 

in low-income communities throughout the United States. More than 

half a billion dollars have been matched by almost 200 nonprofit 

organizations. These funds were generated by local, regional, and 

national funding sources. 

SIF Pay for Success (PFS)

As part of the President’s vision for building a smarter, more effective 

government, PFS has emerged as a promising approach to government 

partnering with the private sector to fund proven and promising practices. 

PFS projects use an innovative contracting and financing model that 

leverages philanthropic and/or private dollars to fund services up front, 

with the government paying after the project generates results. 

Through its grantmaking, the SIF PFS program aims to:

• Strengthen and diversify the pipeline of government and nonprofit 

organizations that are prepared to engage in PFS projects

• Assess the potential of PFS to address a variety of social issues 

relating to diverse populations in diverse geographic contexts 

• Attract capital to high-performing institutions seeking to strengthen, 

grow, and sustain effective solutions for challenges facing lowincome communities.

In FY 2015, SIF selected eight grantees to help communities assess the 

feasibility of PFS, develop their capacity to engage in PFS, and structure 

transactions in preparation for launching PFS projects tackling social 

problems ranging from childhood asthma to chronic homelessness. As of July 

2015, SIF was funding 33 PFS feasibility studies and providing support for 

transaction structuring for five PFS projects. SIF estimates that its support 

will double the number of PFS projects in development in the country. 

Key Outcomes and Performance Measures

Key outcomes of the SIF include the competitive selection of high 

performing subrecipients to implement SIF programming, the scaling of 

effective programs to reach more people in need, the development and 

successful execution of rigorous evaluation plans, and the completion 

of PFS feasibility studies and the structuring of PFS transactions. 

Additionally, the SIF tracks grantee contributions to a set of outcomes in 

its three focus areas (improving economic opportunity, improving health 

outcomes, and investing in children and youth).

As of March, 2015:

• Ninety-six subgrantees and subrecipients were selected in FY 2015 

for a total of 279 across the country

• Services have been expanded to address the needs of over 500,000 

new beneficiaries 

• Eighty-six evaluation plans have been developed, and 20 evaluations 

have been completed.

In the fall of 2015, the SIF will be collecting data from awardees regarding 

their contributions to key outcomes such as: improved K-12 education 

outcomes and improved financial literacy, stability, and employability. 

This data will be analyzed over the coming months and discussed in the 

agency’s FY 2017 Congressional Budget Justification.

Successful Project Examples

Program Results

The John Hartford Foundation is fulfilling its aim to increase health 

access by providing depression treatment to over 3,000 patients in lowincome rural communities throughout Washington, Wyoming, Alaska, and 

Montana. The clinical program is implemented throughout eight primary 

care organizations and utilizes a highly successful Improve Mood – 

Promoting Access to Collaborative Treatment (IMPACT) model.

The Greenlight Fund’s Blueprint Schools Network has served over 

1,500 low-income students in Boston public schools by combating 

the achievement and opportunity gap through their school turnaround 

model. Their model, which utilizes principles from research published by 

the Education Innovation Laboratory at Harvard University, focuses on 

excellence in leadership and instruction, daily tutoring in critical growth 

years, increased instructional time, a culture of high expectations, and the 

use of data from frequent assessments to improve instruction.

SaveUSA, a tax-time savings program from the Mayor’s Fund to Advance 

New York City, which supports financial stability for low to moderateincome families, opened over 2,200 accounts in New York City and San 

Antonio for their 2015 tax refund dollars.
Management’s Discussion & Analysis | PART I 25

The Corporation for National and Community Service

Evaluation Results

Jobs for the Future

Evaluation of the Greater Cincinnati Workforce Network partnership found 

that programs demonstrated statistically significant positive effects on 

the general employment rates of participants and were highly effective 

in improving focus industry employment, job retention, and earnings for 

Health Careers participants.

Reading Partners

Evaluation of Reading Partners found that the program:

• More effectively raised students’ reading proficiency than other 

similar reading programs in the same schools that were studied.

• Had a positive and statistically significant impact on students’ 

reading comprehension, reading fluency, and sight word efficiency.

• Showed suggestive evidence that it was particularly effective with 

students reading at the lowest levels.

• Cost the host school/school district on average $710 per student, 

compared with an average of $1690 per student for other reading 

programs offered in the same school. This results in a per student 

savings of $980 for the host school/school district.

REDF (Roberts Enterprise Development Fund)

Life and work-related outcomes were tracked for 282 workers at seven social 

enterprises over the course of the study, which found that social enterprise 

workers moved toward economic self-sufficiency and life stability:

• Employment increased from 18 to 51 percent

• Stable housing increased from 15 to 53 percent

• Dependence on government support decreased from 71 to 24 percent 

• Social enterprises produced $2.23 in social benefits for every $1 

they spent (by reducing dependence on government support and 

increasing tax revenue). 

U.S. Soccer Foundation

Soccer for Success is a sports-based youth development program that 

serves children in grades K-8 in underserved, urban communities. The 

program uses soccer as a tool to combat obesity, promote healthy eating 

and exercise habits, and foster positive youth development. The program 

consists of soccer activities that incorporate nutritional lessons. 

Evaluation of Soccer for Success found that the program participants 

showed:

• Greater improvement towards healthy BMI and waist circumference 

categories than participants in other similar programs in the same 

neighborhoods

• Greater improvement in aerobic capacity compared to participants in 

similar programs. 

• Implementation as designed (i.e. with fidelity) across the sites 

studied

• Statistically significant and consistent results across different 

locations, genders, and socio-economic backgrounds supporting the 

conclusion that if the program were replicated with fidelity in other 

urban communities, similar results would be likely.

Disaster Response, Recovery, and Mitigation Strategy

In FY 2015, local AmeriCorps members provided direct service and 

responded to disasters in more than 13 states and a territory (California, 

Guam, Illinois, Kentucky, Maine, Minnesota, Missouri, Michigan, Oklahoma, 

South Dakota, Texas, Washington, West Virginia, and Vermont). They 

provided critical direct assistance including debris removal and cleanup of 

homes damaged by disasters, conducted damage assessments, registered 

disaster survivors for assistance, and managed and documented 

volunteer hours and donations. 

In addition to direct response activities, AmeriCorps members regularly 

provide service across the nation in disaster preparedness through 

education, outreach, and training; mitigation projects, including 

environmental projects to mitigate the effects of flooding and hurricanes; 

and recovery operations which include the rebuilding and repair of storm 

damaged homes, long-term recovery support, and case management. 

Fifteen AmeriCorps State and National grantees are trained as 

AmeriCorps Disaster Response Teams. They can deploy 3,000 specially 

trained AmeriCorps members to disaster locations to provide:

• Direct support to homeowners in the cleanup of their homes. There 

is often a long-term demand for cleanup support with few voluntary 

agencies to meet the high demand.

• Coordination and volunteer leadership in the cleanup efforts. This 

coordination is critical to community capacity to recover quickly and 

safely.

• Tracking of volunteer hours and donated resources that may be used 

as match for a state’s cost share for FEMA resources. 

In FY 2015, CNCS increased the effectiveness of AmeriCorps in disaster 

services by:

• Increasing the number of CNCS partnerships with State Emergency 

Management Agencies. CNCS implemented a tiered system of 

national service and emergency management engagement to 

provide best practices, targeted goals, and a consistent framework 

for engaging national service. CNCS intends for disaster response 

partners to reach the basic level of engagement while continuing 

growth and engagement once the base goal is reached. 

• Creating a State Service Commission Working Group on disaster 

services. CNCS has increased the level of training and technical support 
Management’s Discussion & Analysis | PART I 26

The Corporation for National and Community Service

to strengthen collaboration between State Service Commissions and 

the Disaster Services Unit. Regional work groups are planning and 

implementing regional preparedness exercises between the Disaster 

Services Unit, State Service Commissions, and CNCS State Offices.

Successful Project Examples

AmeriCorps

In response to heavy rainfall that led to flooding and landslides in Grays 

Harbor County, Washington, 45 Washington Conservation Corps members 

conducted damage assessments and debris removal and supported the 

management of the Volunteer Reception Center. They were able to conduct 

nearly 80 damage assessments and leverage an additional 225 volunteers 

to remove more than 400 cubic yards of debris. 

Following the severe weather and tornadoes that struck Van, Texas on May 

11, 2015, nine American Youth Works Texas Conservation Corps members 

were called in by the state Emergency Management Agency to set up 

and manage a Volunteer Reception Center. These members were able to 

coordinate and manage more than 1,000 volunteers that arrived to assist 

with the cleanup efforts. Just weeks later, with continued severe weather, 

record amounts of rainfall flooded many communities. Before the rain had 

even stopped, Texas Conservation Corps deployed 28 AmeriCorps members 

to manage two volunteer reception centers in San Marcos and Wimberley, 

Texas. Within the first day they registered over 1,000 volunteers.

Senior Corps

In FY 2015 local Senior Corps volunteers provided direct assistance 

including supporting food and shelter operations, managing 211 call 

centers, conducting damage assessments registering disaster survivors 

for assistance, and managing and documenting volunteer hours and 

donations. In addition to direct response activities, Senior Corps 

volunteers regularly provides essential services across the nation in 

areas of disaster preparedness through education, outreach, and training; 

mitigation projects; and recovery operations which include long-term 

recovery support and survivor case management. 

In FY 2014 and FY 2015, Senior Corps augmented RSVP projects in 

communities impacted by disasters. These awards increased the number 

of RSVP volunteers assisting communities to build community resiliency. 

Case studies of the eight augmentation awards analyzed how RSVP 

volunteers can be effective in providing support to disaster. 

In June 2013, the state of Oklahoma was hit by a series of devastating 

tornadoes. These historic storms caused catastrophic damage and 

overwhelmed local emergency responders. Illustrating the magnitude and 

severity of these events, the storm left a path of destruction two miles 

wide and 12 miles long through a major metropolitan area, including 

Moore, Oklahoma. 

Prior to these storms, RSVP of Central Oklahoma had no disaster-related 

experience. Shortly after the most severe storms, RSVP of Central 

Oklahoma was inundated with calls requesting volunteers from multiple 

organizations. To assist with relief efforts, the grantee placed volunteers 

at various call centers, nonprofit organizations, and shelters. In total, 

108 RSVP of Central Oklahoma volunteers contributed more than 5,500 

service hours to nine nonprofit and state organizations. RSVP of Central 

Oklahoma also engaged in outreach to local agencies to determine and 

respond to needs for volunteer placement. 

One of the augmentation awards was provided to this grantee to expand 

their disaster-related activities. Grant resources were used to fund and 

train a disaster coordinator, strengthen partnerships with United Way 

and Heartline 211, where RSVP volunteers assisted with disaster relief 

call centers. RSVP of Central Oklahoma also directed some augmentation 

funds toward support for disaster preparedness within the program’s 

existing base of 500 vulnerable, low-income clients. 

RSVP volunteers assembled and disseminated disaster preparedness 

kits and conducted consultations with recipients to help them prepare for 

future emergencies. RSVP volunteers also distributed Be-Ready bags – 

containing essential disaster preparedness materials such as blankets, 

flashlights, and emergency water – to a total of 6,000 seniors throughout 

the State of Oklahoma. 

When severe weather and storms struck the same area again in the spring 

of 2015, RSVP of Central Oklahoma was already on hand and able to 

coordinate with the state Emergency Operations Center and assist with 

phone calls, volunteer in-take, and volunteer/donation management. RSVP 

volunteers also worked with Heartline 211 and Red Cross on the ground 

assessing further needs

Disability Inclusion

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

authorizing legislation, CNCS seeks to expand opportunities for the 

meaningful and successful inclusion of people with disabilities in 

national service.23 The agency’s disability inclusion strategy supports the 

objectives of Goal 2 in the CNCS strategic plan to strengthen national 

service so that participants engaged in CNCS-supported programs 

consistently find satisfaction, meaning, and opportunity. 

Disability Inclusion Grants Strategic Goals

2 - Enhance national service participant experience

FY 2015 ENACTED LEVEL

CNCS did not receive an appropriation for this line item in FY 2015. 

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

disability activities with money from its program budget.

23 For FY 2015, as authorized by the Serve America Act, CNCS used program dollars to fund its disability activities.
Management’s Discussion & Analysis | PART I 27

The Corporation for National and Community Service

In FY 2015, to support the goal of including people with disabilities in • Strengthening volunteer service, so that participants find 

service, CNCS signed a Memorandum of Understanding (MOU) with the satisfaction, meaning and opportunity 

Department of Labor Office of Disability Employment Policy. The MOU • Maximizing the value added to grantees, partners and participants 

will further the coordination of policy activities, disseminate effective through research, technical assistance, evaluation and program 

practices, and share informational resources and technical efforts oversight; and heightening the visibility of volunteering and the ACL/

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

people with disabilities in national service where they can acquire the 

skills and experience that prepare them for gainful employment. CNCS also improved the process for obtaining funding for reasonable 

accommodations for national service members with disabilities. 

For National Disability Employment Awareness Month in 2015, CNCS AmeriCorps grantees are now able to submit requests for reimbursement 

released a public awareness campaign to highlight the reflections of after they verify that their AmeriCorps member has a qualifying disability 

service members’ with disabilities and show the types of careers service in accordance with the Americans with Disabilities Act and identify the 

members with disabilities have engaged in following their national service. proper reasonable accommodation. 

In addition, CNCS signed a MOU with Health and Human Services’ The cooperative agreement with the National Service Inclusion Project 

Administration for Community Living (ACL). Under this MOU, ACL and ended in FY 2015 All relevant website content (webinars, e-courses, and 

CNCS will jointly recruit, engage, and support older Americans and people tips) was archived and will move to a CNCS-operated disability resource 

with disabilities in national service and maximize the ability of older webpage. This webpage will also be the home of five new e-courses 

adults to live independently. The primary goals of this collaboration are: developed to assist grantees and partners who are supervising service 

• Supporting inclusive, accessible service sites and programs members with disabilities to recruit, accommodate, retain, and better 

• Building integrated National Service Learning Community networks understand some of the unique issues associated with disability identity. 

The new webpage will also include updated additional resources regarding • Increasing the impact of volunteering by and for older adults and 

disability issues for grantees and partners. persons with disabilities 
Management’s Discussion & Analysis | PART I 28

The Corporation for National and Community Service

FY 2015 Agency 

Management Performance

CNCS Strategic Goal 4: Operations Measures

Measure FY 2015

Award all grants before the budget period start 

date.

96%

Post grant competition award and review data to 

the internet within 90 days of completion of the 

award process.*

TBD

Complete all grant monitoring activities 

identified in the annual monitoring plan and 

follow up with grantees where necessary.**

85%

Close all grants within 180 days of the 

performance period end date.

56%

*Actual FY 2015 data for this measure will be available February 2016.

**FY 2015 data is estimated.

Human Capital

CNCS remains committed to ensuring its employees are prepared to do 

their jobs effectively and efficiently. An important tool in helping meet this 

goal is the Employee Viewpoint Survey, which assesses the extent to which 

Federal employees believe their agencies provide them with the necessary 

support to achieve mission success. Below are the current data on CNCS 

employee satisfaction and related trend information for previous years.

As shown in the table above, CNCS achieved an employee satisfaction 

score of 70 percent for 2015, which was five percentage points above 

its annual goal and seven percentage points above the agency’s 2014 

results. Seventy percent satisfaction is the highest score at CNCS in five 

years. This gain is significantly greater than overall Federal employees’ 

job satisfaction scores, which only increased by one percentage point 

over 2014. CNCS continues to assess its survey score and identify major 

causes for these results.

During FY 2015, CNCS focused on improving engagement, effectiveness, 

and efficiency across CNCS. To that end, the agency placed special 

emphasis on employee development in mission critical areas such as 

leadership and supervision, appropriations law, and grants management. 

More than one-third of all CNCS supervisors or managers received 

leadership training in FY 2015. More than 14 percent of full-time 

permanent staff received training on appropriations law or grants 

management. 

In FY 2015, CNCS efforts to improve employee engagement included 

special emphasis on Diversity and Inclusion (D&I). Managers in the 

Department of the Chief Operating Officer (COO) received four hours of 

training on topics such as Unconscious Bias and Cultural Competence. In 

FY 2015, overall job satisfaction in the COO increased by 17%. CNCS will 

continue to leverage D&I for improved employee engagement in FY 2016.

Information Technology (IT)

CNCS’s recent IT investments have prioritized entity-wide modernization 

that will enhance and facilitate business processes in support of 

the agency’s mission, while strengthening CNCS’s enterprise-wide 

cybersecurity program to enable secure and effective IT management.

In FY 2015, CNCS continued to execute its IT strategy through initiatives 

and projects emphasizing:

• Modernizing systems to meet evolving business processes

• Expanding cybersecurity oversight for IT systems and data

• Maximizing return on IT investment 

• Effectively managing agency information resources.

Key accomplishments by Strategic Area include:

Modernizing systems to meet evolving business processes:

• Implemented information system projects focused on optimizing grants 

management business processes and deploying support services to the 

next-generation grants and member management system

• Implemented online versions of office productivity and collaboration 

software

• Implemented an email records management solution

Employee Satisfaction Trends (2010–2015)

Performance Objective and Measure

FY10

Actual

73%

FY11

Actual

69%

FY12

Actual

65%

FY13 

Actual

67%

FY14

Actual

63%

FY15

Actual

70%

Actual Data Trend FY 10-15

Percent of employees who report overall 

satisfaction with their jobs
Management’s Discussion & Analysis | PART I 29

The Corporation for National and Community Service

• Updated CNCS’s core telecommunications and network Maximizing return on IT investment:

infrastructure to support 21st Century service delivery and mitigate • Awarded new IT Managed Service Contract which will enable the 

the risk of failure due to aging equipment Office of Information Technology to improve delivery of core IT 

• Deployed new applications and hardware to improve overall office services to programs/offices making use of cloud technologies

automation, accountability, and staff mobility. • Continued to consolidate web and digital properties onto a single 

web platform reducing management overhead and redundancy Expanding cybersecurity oversight for IT systems and data: Effectively managing agency information resources: • Awarded a cybersecurity support contract, filled critical staff • Implemented new tools to improve the overall usability of web vacancies, developed a plan for remediating known weaknesses sites and web applications to ensure compliance with Section 508 in the information assurance program, and created a more robust requirements. cybersecurity strategy

• Implemented new portable media encryption technology to protect 

CNCS data and networks

• Improved Security Authorization and Accreditation processes.
Management’s Discussion & Analysis | PART I 30

The Corporation for National and Community Service

Priority Measures

Grantmaking

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

in results-focused funding to organizations across the nation that improve lives and strengthen communities. 

CNCS has adopted key indicators, detailed below, to help gauge the agency’s effectiveness and efficiency in managing grants. These metrics serve as a 

supplement to the Goal 1 and 2 priority measures listed earlier in this report, which focus on grant results.24

CNCS High Priority Measures

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

Performance Measure 2015 Actual 2014 Actual

Financial Statements: 

Prepare and publish audited financial statements covering CNCS operations within 45 days of fiscal year end and receive a clean audit opinion on 

annual financial statements

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

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

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

Grantmaking:

Award all grants before the budget period start date 96% 95%

Post all grant competition award data to the Internet within 90 days of completion of the award process* TBD% 63%

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

up with grantees where necessary 85% 85%

Close all grants within 180 days of the performance period end date 56% 65%

*Actual FY 2015 data for this measure will be available February 2016.

24 CNCS’s strategic plan is located at http://www.nationalservice.gov/about/strategic-plan. 
Management’s Discussion & Analysis | PART I 31

The Corporation for National and Community Service

In FY 2015, CNCS launched a number of critical initiatives across the 

agency to improve overall operations, performance, and accountability. 

Within the last year, CNCS completed the following management 

initiatives: 

Accounting and Financial Management Services (AFMS)

In FY 2015, AFMS continued to focus on updating its administration 

of collections processing. System improvements are resulting in more 

accurate, timely, and better documented transactions including:

• Requiring AmeriCorps VISTA Cost Share sponsors to make 

reimbursement payments electronically

• Offering two additional electronic payment options to AmeriCorps 

VISTA Cost Share sponsors: preauthorized payments and Automated 

Clearing House (ACH) credit payments

• Replacing malfunctioning electronic check processing equipment 

to eliminate the need for the manual processing of paper check 

payments submitted to CNCS

• Preparing for participation in the Department of Treasury’s 

(Treasury) Electronic Check Processing program

• Implementing an automated interface between the CNCS financial 

system (Momentum) and Treasury’s payment and collection system 

(IPAC) to eliminate manual entries

• Implementing a new employee travel management system (ETS2) 

that includes exception reporting to the agency CFO of travelers who 

submit vouchers late

• Participating in all training offered by Treasury on debt management 

in preparation for updating CNCS’s debt management system in 

FY 2016.

In addition, AFMS improved other administrative processes, including: 

• Implemented a Cost Accounting and Allocation module to automate 

tasks associated with the distribution and allocation of costs

• Implemented a paperless process for certifying expenditures to 

Treasury

• Interfaced financial system to Treasury’s System for Award 

Management (SAM)

• Created a new model for effectively managing NCCC FEMA mission 

assignments.

Accountability

CNCS continued to foster a culture of integrity, accountability and 

transparency in FY 2015 by fortifying its internal controls, oversight, 

and monitoring. In this spirit of continual improvement and CNCS’s 

Strategic Plan Goal 4 strategy of promoting adherence to internal 

controls, CNCS continued to implement an Integrity Assurance Program 

— Internal Controls Policy to help ensure CNCS’s organizational 

effectiveness, cohesion, and longevity. This policy identifies integrity 

as the cultural value by which all CNCS staff members are called upon 

to act in accordance with high ethical and professional standards, and 

to continually assess and improve daily business practices. To support 

this proposition, CNCS utilized management team work plans with an 

enhanced integrity performance standard. CNCS, with the coordination 

of the Office of Accountability and Oversight (OAO), continued an intense 

campaign to strengthen grants management oversight, improve internal 

controls and address audit findings. Aligning with the internal controls, 

CNCS established an oversight and governance structure for its Integrity 

Assurance Program, and set out the roles and responsibilities of executive 

leadership, managers and rank-and-file CNCS staff in maintaining an 

effective system of internal controls. 

Internal Controls: Management Assurance Statements 

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

procedures and operations are sufficient to meet specified management 

objectives. These assurance statements cover meeting governmentwide objectives in regard to CNCS’s internal and management controls 

(including controls over financial reporting) and CNCS’s financial 

management systems, as well as specific annual assurances regarding 

the management and operation of the National Service Trust. This section 

briefly describes each of these management objectives, the bases for 

CNCS’s assessments, and provides the specific management assurance 

statements for each area. 

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 Integrity Act 

of 1982 (FMFIA), (31 U.S.C. 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 material weaknesses.

During FY 2015, CNCS continued to strengthen its internal control 

program by following the requirements of the FMFIA, the Government 

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

appendices, implementing a new internal control governance structure, 

and enhancing its assessment process. 
Management’s Discussion & Analysis | PART I 32

The Corporation for National and Community Service

CNCS’ FY 2015 internal control program is led by the Director of OAO, 

under the direction of the Chief Operating Officer. Senior management 

from across the agency provided support and guidance based on their 

subject matter expertise. 

In FY 2015 CNCS made enhancements to its Integrity Assurance 

Program and began planning to implement the principles of Enterprise 

Risk Management outlined by the Government Accountability Office’s 

(GAO) “Standards for Internal Control in the Federal Government” also 

known as the “Green Book.” The principles within the ”Green Book” 

describe the standards, principles, and attributes for internal controls 

government-wide and therefore apply to all aspects of CNCS’s operations: 

programmatic, financial, and compliance. The improvements to the 

Integrity Assurance Program have allowed CNCS to assess how well 

internal controls are an integral part of its operations, and are built into 

its entity-wide policies, procedures, and practices. 

Further, in FY 2015 CNCS applied GAO’s Risk Management Framework as 

an important tool in planning its assessment of internal and management 

controls. This framework helps identify the areas of greatest risk within 

agency operations and provides indicators as to where CNCS should 

concentrate its efforts to assess the effectiveness and efficiency of 

controls. Additionally, based on the assessment of risk, CNCS can 

determine the scope and frequency of control evaluations it should 

establish. CNCS further incorporated risk assessment and management 

into its overall assessment of internal and management controls by 

conducting a structured, rigorous analysis to meet the OMB Circular 

A-123 requirement to establish materiality levels that provide reasonable 

assurance that significant deficiencies will be detected and corrected in a 

timely manner.

Through the materiality assessment and by applying the GAO Risk 

Management Framework, CNCS identified the following thirteen business 

processes for evaluation in FY 2015—

• Accounts Receivable

• Budget Execution

• Disbursements

• Entity-wide

• Information Systems (including Financial Management Systems)

• Reporting (including Financial and Non-financial Reporting)

• Fund Balance with Treasury

• Grants Management

• Human Capital

• Interest and Investments

• Procurement

• Property and Equipment

• National Service Trust Service Award Liability

To assess the sufficiency of internal and management controls in these 

areas, CNCS established a five step process: 

Step 1: Planning 

Step 2: Evaluating Internal Control at the Entity Level 

Step 3: Evaluating Internal Control at the Process Level 

Step 4: Testing Control Design and Operating Effectiveness at the 

Transaction Level 

Step 5: Concluding, Reporting, and Implementing Corrective Action. 

After OAO carried out a series of assessments using the five-step process, 

the Director of OAO reported the results to CNCS’s governing body for 

Enterprise Risk Management, also known as the Integrity Steering 

Committee. 

CNCS also considered the knowledge of management officials gained 

from daily operations of its programs, offices and systems, as well 

as the results of its annual financial statement audit, as part of its 

internal controls assessment. The directors responsible for most of 

CNCS’s programs and significant operational functions provided specific 

assurances that they aware of their responsibilities to report any 

significant deficiencies to higher level management, and that they have 

done so, if applicable. FY 2015 marks the 16th consecutive year CNCS has 

earned an unmodified opinion on its financial statements. The financial 

audit also found no material 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.
Management’s Discussion & Analysis | PART I 33

The Corporation for National and Community Service

Management Assurances

Management’s Statement of Assurance for Financial 

Management Systems, Operations, and Compliance with 

Laws and Regulations

CNCS management is responsible for establishing and maintaining 

effective internal control and financial management systems that meet 

the objectives of FMFIA and OMB Circular A-123. These objectives are 

to ensure (1) effective and efficient operations; (2) compliance with 

applicable laws and regulations; and (3) reliable reporting. As required by 

OMB Circular A-123, CNCS has evaluated its internal control and financial 

management systems to determine whether the FMFIA objectives are 

being met. Based on its assessment (as described above), CNCS provides 

a qualified statement of assurance that its internal control and financial 

systems meet the objectives of the FMFIA as of September 30, 2015. This 

statement of assurance is qualified because the OIG’s FY 2015 evaluation 

of CNCS’s compliance with Federal Information Security Modernization Act 

(FISMA) found that CNCS was not compliant with the FISMA legislation, 

OMB guidance and National Institute of Standards and Technology (NIST) 

security publications as of September 30, 2015. The FISMA evaluation 

noted a number of significant deficiencies, which under OMB guidance 

must be reported as a material weakness under FMFIA. Attachment I 

contains a description of these control weaknesses.

Management’s Statement of Assurance for Internal 

Control over Financial Reporting

CNCS’s management is responsible for establishing and maintaining 

effective internal control over financial reporting, which includes 

safeguarding of assets and compliance with applicable laws and regulations. 

CNCS conducted its assessment of the effectiveness of the Corporation’s 

internal control over financial reporting in accordance with OMB Circular 

A-123. Based on the results of this evaluation, CNCS can provide reasonable 

assurance that internal control over financial reporting as of June 30, 2015 

was operating effectively no material weaknesses were found in the design or 

operation of the internal controls over financial reporting.

CNCS notes that in FYs 2014 and 2015, its auditors opined that CNCS’s 

systems of internal control represented a significant deficiency. CNCS 

acknowledges that it has substantial need to improve the implementation 

of its Integrity Assurance Program (including the incorporation of the 

principals and practices of Enterprise Risk Management), particularly in 

the areas of senior staff governance and oversight of the Program and 

in leveraging and balancing the use of its resources to achieve overall 

effective monitoring and oversight of its grantees’ and internal operations. 

Nonetheless, CNCS believes that its internal control program, as described 

above, when combined with the knowledge of management officials gained 

from daily operations of its programs, offices and systems, as well as the 

overall results of its annual financial statement audit, provides a sufficient 

basis for CNCS to provide the following assurances.

Compliance with Financial Systems Requirements, 

Accounting Standards, and U.S. Standard General Ledger

Although not required by OMB Bulletin 15-02, Audit Requirements 

for Federal Financial Statements, CNCS has adopted the standards 

governing financial systems that were established by the Federal Financial 

Management Improvement Act (FFMIA). FFMIA provides guidance to 

federal agencies in implementing and maintaining 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 Treasury 

Standard General Ledger (USSGL) at the transaction level. Pursuant 
Management’s Discussion & Analysis | PART I 34

The Corporation for National and Community Service

to FFMIA, OMB issued Circular A-123 Appendix D, Compliance with the 

Federal Financial Management Improvement Act. Appendix D prescribes 

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

evaluating, and reporting on financial management systems.

CNCS’ assessment of its compliance with FFMIA standards is based 

in part on its use of Momentum Financials as its core financial system 

and other mission operational systems that impact the overall 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-123 Appendix D financial system requirements. By 

design, activity is posted in Momentum Financials following the USSGL at 

the transaction level.

CNCS’ assessment of its compliance with FFMIA is also informed by 

CNCS’ overall information system security assessments. In accordance 

with FISMA, OMB policies and guidance, and standards and guidance 

issued by the NIST, federal agencies are required to secure information 

and information systems through the implementation of appropriate risk 

mitigation strategies. 

Management’s Statement of Compliance with Financial 

Systems Requirements, Accounting Standards, and U.S. 

Standard General Ledger

Based on the FISMA evaluation, CNCS Financial Systems are in 

compliance with FFMIA. Based on its assessments of its financial 

management systems (as described above), CNCS has determined that it 

substantially complies with the requirements of the FFMIA for FY 2015.

National Service Trust Obligations

Section 149(a)(3) of 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 timing and recording 

obligations in the National Service Trust. Section 149(a)(3) of the NCSA 

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.

Section 149(c) of the NCSA requires CNCS to obtain an independent audit 

of the accounts and records demonstrating the manner in which CNCS 

has recorded its Trust estimates (see 42 U.S.C. 12606). For FY 2015, the 

CNCS OIG obtained the independent audit required by section 149(c) of 

the NCSA. At the conclusion the audit, the auditors issued an unmodified 

opinion that CNCS’ financial reports regarding the National Service Trust 

present fairly, in all material respects, the assets, liabilities, net position, 

and obligations of the Trust as of September 30, 2015.

Management Certification of Compliance Regarding 

National Service Trust

Based on CNCS’ analysis and review of its National Service Trust 

activities and the results of the OIG’s audit, CNCS certifies that for FY 

2015 it complied with the requirements for recording National Service 

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

Summary of Material Weakness

Information Technology – General Controls

CNCS relies on extensive information technology systems operated by 

both the agency, other federal agencies, and various contractors to 

provide and monitor general control activities. In its FY 2014 evaluations 

of CNCS’s Information Security Program, the OIG determined that, in 

a number of metrics, CNCS was not fully compliant with the FISMA 

legislation, OMB guidance, and applicable NIST security publications as of 

September 30, 2014. Of the noted areas of noncompliance in 2014, those 

relating to Continuous Monitoring Management and Risk Management 

were determined to be significant deficiencies under applicable OMB 

FISMA guidance. As required by OMB Circular A-123, CNCS is reporting 

the significant deficiencies found in the FISMA evaluation as material 

weaknesses under FMFIA. While improvements have been made, the 

material weakness findings repeat in FY 2015.

Core Action Plan and Impact of Material Weakness

Material Weakness 

and Corrective 

Action Plan

Corrective 

Action 

Date

Impact of Control Weakness 

on the Agency

CNCS formed a 

remediation team 

under the direction of 

the Chief Operating 

Officer to formulate 

and execute a plan 

for remediating 

the findings in 

the FY 2014 

FISMA evaluation. 

Additionally, 

CNCS hired an 

experienced Chief 

Information Security 

Officer to oversee 

day-to-day FISMA 

improvements.

TBD Although significant information 

security risks still existed at 

the beginning of the FY 2015, 

no actual event occurred that 

impacted the reliability of or 

accuracy of CNCS’s operational 

or financial data. In addition, 

there has been significant 

progress in closing three of four 

significant deficiencies identified 

in the FISMA evaluation. It 

is anticipated that the fourth 

significant deficiency will be 

closed by 9/30/2016.

Jeffrey Page

Acting Chief Financial Officer

Wendy Spencer

Chief Executive Officer
Management’s Discussion & Analysis | PART I 35

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 2015 and 2014, 

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

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

conformity with GAAP in all material respects. 

The consolidated financial statements report CNCS’s financial position, 

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

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

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

the principal financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position; 

• S tatement of Operations and Changes in Net Position (income 

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

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

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

financial position affected its Fund Balance with Treasury (FBWT) 

and breaks down the analysis according to operating, investing, and 

financing activities.

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

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

information about the budgetary resources made available to CNCS and 

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

Composition of CNCS Assets

The Statement of Financial Position presents the total amounts available 

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

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

CNCS’s total assets are comprised of the FBWT and Trust Investments 

and Related Receivables.

In FY 2015, total assets increased four percent over the balance at the 

end of FY 2014. The majority of the $69.2 million increase occurred in the 

FBWT and the Investments and Related Receivables.

The FBWT is funding available to CNCS to make expenditures for 

authorized expenses through the disbursement authority of the Treasury. 

The FBWT is increased through appropriations and collections and 

decreased by expenditures and rescissions. 

Investments and Related Receivables are used to pay Education Awards 

for eligible participants who complete AmeriCorps service. Funding for 

the Trust comes from appropriations, interest earned, sponsorships, 

and proceeds from the sale or redemption of investments. The account 

increased by $33.5 million, reflecting the investment of FY 2015 

appropriations for new AmeriCorps positions awarded during the year and 

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 AmeriCorps VISTA and 

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

is the estimated value of authorized education benefits, discounted for 

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

value of money.

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

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

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

from actual results. During FY 2015, CNCS based its obligation amount 

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

(allowing for refills), the time value of money, and earning and usage rates 

ranging from 77 percent to 87 percent, depending on term type.

As of September 30, 2015, the Trust had available cash, investments, and 

other assets of approximately $760.2 million to make education award 
Management’s Discussion & Analysis | PART I 36

The Corporation for National and Community Service

CNCS Assets as of September 30, 2015

Fund Balance with Treasury 55%

Cash and Other Monetary Assets 0%

Trust Investments and Related Receivables 41%

Advances to Others 3%

Accounts Receivable 0%

Property, Plant, and Equipment 0%

41%

3%

0%

55%

and interest forbearance payments. CNCS’s unliquidated obligations for to make payments on qualified student loans or for educational expenses 

awarded AmeriCorps positions totaled approximately $635.3 million. 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. Approximately $62.6 million was available at year-end to fund new Since CNCS’s inception through FY 2009 the maximum amount of an AmeriCorps member positions, of which $1.9 million derives from Recovery education award was $4,725. Beginning with FY 2010, the SAA tied the Act funding which cannot be used without new authorization. Trust assets amount of the award to the amount of a Pell Grant administered by the are estimated to be fully sufficient to pay for all AmeriCorps positions. Department of Education. The award amount of $5,730 was in effect 

throughout FY 2015. CNCS de-obligates any funds related to member positions that were not 

filled on the expiration of the grant. CNCS continues to analyze Trust The Trust also pays forbearance interest on qualified student loans during operations and liability projections to identify any needed adjustments to the period members perform community service. Each year the award 

obligations. liability components related to education awards and interest forbearance 

are adjusted to reflect current trends. For FY 2015, the Trust Service Advances to Others mainly represents funds provided to grantees in 

Award Liability minimally increased by $.759 million. advance of their performance under a grant. For the most part, these 

advances are liquidated during the first quarter of the subsequent fiscal Grants Payable represents funds due to grantees in payment of their year. Advances to Others decreased by about one percent, from $58.1 performance under a grant. For the most part, these payables are million at September 30, 2014 to $57.3 million at September 30, 2015. liquidated during the first quarter of the subsequent fiscal year. Grants 

Payable increased one percent, from $95.6 million at September 30, 2014 Property and Equipment increased $5 million from $2.4 million at 

to $97.0 million at September 30, 2015, reflecting increased grant activity September 30, 2014 to $7.4 million at September 30, 2015, representing 

from prior years. CNCS’s investment into IT modernization. 

 Actuarial FECA liability is an estimate of future workers’ compensation Composition of CNCS Liabilities expenses that is based on past events and calculated using procedures CNCS’s most significant liabilities are the Trust Service Award Liability developed by Department of Labor (DOL). The Actuarial FECA liability and Grants Payable. Individuals who successfully complete terms of reduced 10 percent, from $9.3 million at September 30, 2014 to $8.3 service in AmeriCorps programs earn education awards that can be used million at September 30, 2015. 
Management’s Discussion & Analysis | PART I 37

The Corporation for National and Community Service

CNCS Liabilities as of September 30, 2015

4%

1%

2%

Trust Service Award Liability 75%

Grants Payable 16%

Accounts Payable 1%

Actuarial FECA 1%

Advances from Others 4%

Accrued Annual Leave 1%

16% Other Liabilities 2%

75%

1%

1%

Advances from Others represent the receipt of cash for work to be program are reported separately. Program costs include grant expenses 

performed at a future date. This liability increased $1.7 million during and direct and allocated personnel and administrative costs, including 

FY 2015 resulting from an increase of advancing funds supporting AmeriCorps recruitment and Trust operations.

reimbursable partnerships with other agencies. For FY 2015, CNCS Revenue totaled $1.057 billion, an increase of $44.9 

Accrued Annual Leave Liability had a minimal increase from $4.2 million million, or four percent, from FY 2014. Total Expenses reported for FY 2015 

at September 30, 2014 to $4.3 million at September 30, 2015. were $1.016 billion which represents an increase of $43.2 million, or four 

percent, from FY 2014. CNCS’s net revenue over expenses for FY 2015 was 

Results of Operations $40.4 million which is an increase of $1.7 million compared to FY 2014. 

The Statement of Operations and Changes in Net Position presents 

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

of operating CNCS programs. CNCS recognizes its use of appropriated The Statement of Budgetary Resources provides information on how 

capital as revenue at the time it is expended or accrued to pay program budgetary resources were made available to CNCS for the year and 

or administrative expenses. Appropriations received for the Trust the status of those budgetary resources at year-end. Total budgetary 

are recognized as revenue when received. Using an appropriate cost resources had a small increase of $2 million from September 30, 2014 to 

accounting methodology, CNCS’s expenses have been allocated among September 30, 2015 which is less than one percent.

its major programs, at the sub-program level. Costs for each major CNCS 
Management’s Discussion & Analysis | PART I 38

The Corporation for National and Community Service

CNCS Expenses for the Period Ended September 30, 2015

5%

0%

0%

AmeriCorps 73%

Office of the Inspector General 0%

Senior Corps 22%

Innovation, Demonstration, and 

Assistance Activities 5%

Learn and Serve America 0%

22%

73%
Management’s Discussion & Analysis | PART I 39

The Corporation for National and Community Service

Future Operations Focus Complete new Grants and Member Management System 

development25

While furthering its mission, CNCS is committed to serve as an effective CNCS’s new online platform will streamline the agency’s grantmaking 

and efficient steward of taxpayer dollars. Agency leaders enforce process for applicants and staff, allowing each more time to focus on 

principles of continuous improvement, accountability, strong oversight, application content. Central to this system is functionality that allows 

and transparency. These principles in turn help mitigate mission risks CNCS staff to build customizable grant applications from a menu of 

and establish the operational framework necessary for the agency to possible solicitation sections as needed. This avoids the confusion and 

succeed. inefficiency that can occur with fixed-form grant applications containing 

sections that only apply to certain types of applicants. In accordance with CNCS’s strategic goal 4 (fortifying operations), below 

are key agency planned initiatives for FY 2016. These activities follow Sustain targeted IT security investments

from the principles discussed above and will lay a foundation for the As part of its comprehensive effort to provide the strongest IT security 

agency to meet its other three strategic goals discussed earlier in this possible, CNCS will maintain hardware and software investments that 

report. seek to identify and protect against the unauthorized access and use of 

agency information systems. CNCS will also proactively continue to train Continue to strengthen CNCS’s Enterprise Risk Management and inform staff on how to avoid information system threats such as framework 

phishing scams. As part of its risk management efforts, the agency will assess where 

risk-mitigation strategies can be further integrated into the agency’s Relocate headquarters offices 

important business processes such as grant oversight activities. With By relocating, CNCS will reduce its physical footprint by optimizing space 

these enhanced processes, the agency will be better positioned to identify for the agency’s business needs. This is in keeping with the general fiscal 

opportunities for improving operational effectiveness and efficiency. responsibility promoted by the agency and its leadership.

25 CNCS expects core functionality to be available in late FY 2016. Additional functionality (e.g., a new performance module) will come online in FY 2017.
Financial Statements | PART II 40

The Corporation for National and Community Service

Message from 

the Acting CFO

The mission of the Corporation for National and Community Service 

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

engagement through service and volunteering. Through AmeriCorps, 

Senior Corps, the Social Innovation Fund, and the Volunteer Generation 

Fund, CNCS has helped to engage millions of citizens in meeting 

community and national challenges through service and volunteer 

action. CNCS strives to make these national service programs as 

effective and cost-efficient as possible. CNCS’s Agency Financial 

Report (AFR) presents a comprehensive report on financial operations 

of the agency and provides transparency and accountability to the 

American people.

I am pleased to report that for the 16th consecutive year, CNCS 

has earned an unmodified opinion on its AFR. This accomplishment 

demonstrates an on-going commitment to delivering cost effective 

programs through sound fiscal management and effective internal 

controls. We have continued our efforts to address management letter 

findings and were able to close one finding cited in the 2014 audit. 

The CFO organization is committed to making continuous 

improvements to fiscal operations as part of delivering mission-critical 

support to the agency. We continue to design and implement policies 

and procedures to enhance accountability, fiscal responsibility, and 

enterprise risk management. 

While this progress serves as a foundation for continued 

improvements in organizational and financial management, we 

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

We are committed to continue to resource and fully implement a sound 

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

management program in order to maximize sound fiscal stewardship.

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

throughout the agency for their continued dedication and hard work 

this past year. It is their efforts that enable CNCS to meet our goals 

which are vital to the nation.

Jeffrey Page

Acting Chief Financial Officer
Financial Statements | PART II 41

Section II:

Financial

Statements

Consolidated Financial 

Statements

The Corporation for National and Community Service’s (CNCS) 

consolidated financial statements outline its financial position, results 

of operations, cash flows, and budgetary resources, as required by the 

Government Corporation Control Act (GCCA) and Executive Order 13331, 

National and Community Service Programs. The Act requires government 

corporations to submit an annual report including the corporation’s 

financial statements to Congress. As specified in the Act, the principal 

financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position 

• Statement of Operations and Changes in Net Position (income 

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

and the changes in net position that occurred during the year

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

financial position and results affected its cash (Fund Balance 

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

financing activities.

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

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

financial statement. The SBR provides information about the budgetary 

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

the end of the fiscal year.

CNCS’s financial statements provide comparative information for Fiscal 

Year (FY) 2015 and 2014. For FY 2015, CNCS’s financial statements, for 

the 16th consecutive year, received an unmodified opinion. This opinion 

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

material respects, in conformity with generally accepted accounting 

principles.

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

Trust Fund Status Report which includes the Statements of Financial 

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

Budgetary Resources prepared in accordance with Generally Accepted 

Accounting Principles (GAAP) as required by the Government Corporation 

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

Service Programs. These principal statements and the accompanying 

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

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

Limitations of the Financial Statements

The principal financial statements have been prepared in compliance with 

the reporting requirements described above. CNCS’s financial statements 

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

and control budgetary resources which are prepared from the same 

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

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

An implication of this is that liabilities cannot be liquidated without 

legislation that provides the resources to do so.
Financial Statements | PART II 42

Corporation for National and Community Service 

Consolidated Statements of Financial Position 

As of September 30, 2015 and 2014 (dollars in thousands)

Assets 2015 2014

Fund Balance with Treasury (Note 2) $ 1,004,351 $ 971,738

Cash and Other Monetary Assets 79 125 

Investments and Related Receivables (Note 3) 751,464 717,973 

Advances to Others 57,288 58,122 

Accounts Receivable, Net (Note 4) 8,157 9,278 

Property and Equipment, Net (Note 5) 7,440 2,387 

Total Assets $ 1,828,779 $ 1,759,623 

Liabilities

Trust Service Award Liability (Note 6) $ 454,890 $ 454,131 

Grants Payable 96,978 95,571 

Accounts Payable 5,149 5,103 

Actuarial FECA Liability (Note 8) 8,328 9,255 

Advances from Others (Note 9) 26,725 24,990 

Accrued Annual Leave 4,301 4,244 

Other Liabilities (Note 10) 14,912 14,273 

Total Liabilities 611,283 607,567 

Contingencies (Note 16)

Net Position

Unexpended Appropriation 915,432 890,367 

Cumulative Results of Operations 302,064 261,689 

Total Net Position (Note 11) $ 1,217,496 $ 1,152,056 

Total Liabilities and Net Position $ 1,828,779 $ 1,759,623 

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

Corporation for National and Community Service 

Consolidated Statements of Operations and Changes in Net Position 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

Revenue 2015 2014

Appropriated Capital Used $ 779,799 $ 740,124 

Appropriations Received by the National Service Trust (Note 12) 217,507 212,496 

Interest 2,747 2,442 

Revenue from Services Provided 40,450 44,545 

Other 16,194 12,201 

Total Revenue $ 1,056,697 $ 1,011,808 

Expenses

AmeriCorps $ 742,280 $ 707,310 

SeniorCorps 221,788 219,678 

Learn and Serve America - 472 

Innovation, Demonstration and Assistance Activities 47,702 42,165 

Office of the Inspector General 4,552 3,458 

Total Expenses (Note 13) 1,016,322 973,083 

Net of Revenue Over Expenses $ 40,375 $ 38,725 

Net Position

Net of Revenue over Expenses $ 40,375 $ 38,725 

Increase/(Decrease) in Unexpended Appropriations, Net (Note 15) 25,065 80,854 

Increase/(Decrease) in Net Position, Net 65,440 119,579 

Net Position, Beginning Balance 1,152,056 1,032,477 

Net Position, Ending Balance (Note 11) $ 1,217,496 $ 1,152,056 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 44

Corporation for National and Community Service 

Consolidated Statements of Cash Flows 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES 2015 2014

Net of Revenue over Expenses $ 40,375 $ 38,725 

Adjustments Affecting Cash Flow:

Depreciation, Amortization, and Loss on Disposition of Assets 1,917 1,740 

Amortization of Premium/(Discount) on Investments (1,606) (613)

Appropriated Capital Used (779,799) (740,124)

Appropriations Received in Trust (217,507) (212,496)

Appropriations Transferred to Other Federal Agencies (1,000) (2,000)

Decrease/(Increase) in Cash and Other Monetary Assets 46 (125)

Decrease/(Increase) in Accounts Receivable 1,121 323 

Decrease/(Increase) in Interest Receivable 182 253 

Decrease/(Increase) in Advances to Others 834 (2,122)

Increase/(Decrease) in Accounts Payable and Other Liabilities 685 2,868 

Increase/(Decrease) in Advances from Others 1,735 (21,131)

Increase/(Decrease) in FECA and Annual Leave Liabilities (870) (332)

Increase/(Decrease) in Trust Liability 759 (10,143)

Increase/(Decrease) in Grants Payable 1,407 (7,554)

Total Adjustments (992,096) (991,456)

Net Cash Provided/(Used) by Operating Activities (951,721) (952,731)

CASH FLOWS FROM INVESTING ACTIVITIES

Sale of Securities 981,391 867,395 

Purchase of Assets (6,970) (781)

Purchase of Securities (1,013,458) (891,843)

Net Cash Provided/(Used) in Investing Activities (39,037) (25,229)

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received, Net of Trust 1,054,954 1,049,954 

Rescissions and Cancellations (31,583) (14,480)

Net Cash Provided by Financing Activities 1,023,371 1,035,474 

Net Increase/(Decrease) in Fund Balance with Treasury 32,613 57,514

Fund Balance with Treasury, Beginning 971,738 914,224 

Fund Balance with Treasury, Ending (Note 2) $ 1,004,351 $ 971,738 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 45

Corporation for National and Community Service 

Combined Statements of Budgetary Resources 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

BUDGETARY RESOURCES 2015 2014

Unobligated, balance brought forward, October 1 $ 205,420 $ 213,255 

Recoveries of unpaid prior year obligations 31,772 37,405 

Other changes in unobligated balance (31,583) (14,480)

Unobligated balance from prior year budget authority, net 205,609 236,180 

Appropriations Discretionary 1,053,954 1,047,954 

Appropriation (special or trust funds) 217,514 212,589 

Appropriation Discretionary (total) 1,271,468 1,260,543 

Appropriation Mandatory (special or trust funds) 3,933 5,050 

Appropriation (discretionary and mandatory) 1,275,401 1,265,593 

Spending authority from offsetting collections (discretionary and mandatory) 50,718 27,911 

Total Budgetary Resources $ 1,531,728 $ 1,529,684 

STATUS OF BUDGETARY RESOURCES

Obligations incurred (Note 19) $ 1,300,749 $ 1,324,264 

Unobligated balance, end of year:

 Apportioned (Note 2) 98,113 60,614 

 Unapportioned (Note 2) 132,866 144,806 

Total unobligated balance, end of year 230,979 205,420 

Total Budgetary Resources $ 1,531,728 $ 1,529,684 

 

The accompanying notes are an integral part of these financial statements.

(Continued)
Financial Statements | PART II 46

Corporation for National and Community Service 

Combined Statements of Budgetary Resources – Continued

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2015 2014

Unpaid obligations:

Unpaid obligations, brought forward, October 1 $ 1,480,417 $ 1,387,779 

Obligations incurred 1,300,749 1,324,263 

Outlays (gross) (1,225,581) (1,194,220)

Recoveries of prior year unpaid obligations, actual (31,772) (37,405)

Unpaid Obligations, end of year 1,523,813 1,480,417 

Uncollected payments:

Uncollected payments, Federal sources, brought forward, October 1 (131) (104)

Change in uncollected payments, Federal sources (1,911) (27)

Uncollected payments, Federal sources, end of year (2,042) (131)

Memorandum (non-add) entries:

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

Obligated balance, end of year (Note 2) $ 1,521,771 $ 1,480,286 

 BUDGET AUTHORITY AND OUTLAYS, NET

Budgetary authority, gross (discretionary and mandatory) $ 1,326,119 $ 1,293,504 

Actual offsetting collections (discretionary and mandatory) (48,807) (27,884)

Change in uncollected payments, Federal sources (1,911) (27)

Budget authority, net (discretionary and mandatory) $ 1,275,401 $ 1,265,593 

Outlays, gross (discretionary and mandatory) 1,225,581 1,194,220 

Actual offsetting collections (discretionary and mandatory) (48,807) (27,884)

Outlays, net (discretionary and mandatory) 1,176,774 1,166,336 

Distributed offsetting receipts (218,475) (214,188)

Agency outlays, net (discretionary and mandatory) $ 958,299 $ 952,148 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 47

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’s 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’s 

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 comprises 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: 

• AmeriCorps 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.

• AmeriCorps 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.

• AmeriCorps 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 FY 2015 from the 

following funds:

Trust and Gift Funds:

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

education awards and interest forbearance for volunteers under the 

AmeriCorps members.

• Gifts and Contributions, into which CNCS deposited qualified gifts 

and contributions from individuals and organizations, from which 

approved expenditures are made furthering CNCS’s goals.

Appropriated Funds:

• Operating Expenses, from which CNCS funded Senior Corps, 

AmeriCorps, and other program activity.

• Salaries and Expenses, from which CNCS funded its general 

administrative expenses.

• Office of Inspector General (OIG), from which CNCS funded the 

expenses of the Office of Inspector General.

• AmeriCorps VISTA Advance Payment Revolving Fund, from which 

CNCS paid the living allowances for AmeriCorps 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 AmeriCorps 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.

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

to improve Information Technology (IT) systems and administer the 

increased AmeriCorps State and National and VISTA membership.

• OIG, 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’s 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.

C. F INANCIAL STATEMENT PRESENTATION AND 

CONSOLIDATION POLICY

The accompanying financial statements report CNCS’s 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 CNCS 

assets, liabilities, and net position; 

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

CNCS’s 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’s 

financial position and results affected its cash (Fund Balance with 

Treasury), and present the analysis of operating, investing, and 

financing activities.
Financial Statements | PART II 48

The Corporation for National and Community Service

The financial statements are presented in accordance with the Generally 

Accepted Accounting Principles 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. The 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. The Combined Statement of Budgetary Resources 

presents additional details to include activity that is significant to CNCS. 

CNCS’s consolidation policy requires the consolidation of all funds 

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

In FY 2015, presentation changes have been made to facilitate a greater 

understanding of the statements and notes. Certain prior year amounts 

have been reclassified to conform to the current year presentation. No 

changes made were material at the financial statement line item or at 

the note line level.

D. BUDGETS AND BUDGETARY ACCOUNTING

The activities of CNCS are primarily funded through the annual 

Departments of Labor (DOL), Health and Human Services (HHS), 

Education, and Related Agencies Appropriation Act. CNCS’s 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, 2015, the carrying amounts of Fund Balance with 

Treasury, Cash and Other Monetary Assets, 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’s cash accounts with the Department of the 

Treasury (Treasury). Treasury processes cash receipts and disbursements 

on behalf of CNCS and CNCS’s accounting records are reconciled with 

those of Treasury on a regular basis. CNCS’s FBWT includes all of its 

appropriated, gift, 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. CASH AND OTHER MONETARY ASSETS

Cash consists of: coins, paper currency, and readily negotiable 

instruments, such as money orders, checks, and bank drafts on hand or in 

transit for deposit.

H. 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. 

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

I. CASH EQUIVALENTS

For purposes of the statement of cash flows, CNCS considers all interestbearing Treasury securities guaranteed by the United States to be cash 

equivalents.

J.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 
Financial Statements | PART II 49

The Corporation for National and Community Service

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.

K. 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.

L. 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’s 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 straightline basis over estimated useful lives ranging from two to ten years. 

M. 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’s historical 

experience.

N. 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.

O. 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.

P. ACTUARIAL FECA LIABILITY

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

medical cost protection to covered federal civilian employees, AmeriCorps 

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’s employees and members under FECA are 

determined and paid by the DOL and later billed to CNCS. CNCS’s 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.

Q. OTHER LIABILITIES

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

year for payroll and benefits, AmeriCorps 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, other 

unfunded employment related liability, liability for non-fiduciary deposit funds 

and undeposited collections, and accounts payable canceled appropriations.

R. 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 nonvested leave are also expensed when used.

S. 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.

T. NET POSITION

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

U. 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 canceled. Unpaid obligations recorded 
Financial Statements | PART II 50

The Corporation for National and Community Service

against cancelled appropriated capital are paid from currently available 

appropriated funds as payments become due. Appropriations received for 

the 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 Treasury to the credit of the Gifts 

and Contributions Fund.

V. RETIREMENT BENEFITS

CNCS’s 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 CNCS contribution amounting to five percent of pay. Employees 

under CSRS may participate in the TSP, but will not receive either CNCS’s 

automatic or matching contributions. 

W. 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.

X. 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 

CNCS’s 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.

Y. COMPARATIVE DATA

CNCS’s financial statements provide comparative information for FY 2015 

and 2014. 

Z. CONCENTRATION OF RISKS

Congress annually considers whether to fund CNCS’s program and 

operational activities. Should Congress opt not to enact appropriations 

to fund them, CNCS would be unable to continue operations. CNCS’s 

management believes the risk of such an occurrence is remote.
Financial Statements | PART II 51

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury expended for the purpose of providing an education award or 

student loan interest forbearance payment and are made directly 

U.S. Government cash is accounted for on an overall consolidated basis to a qualified institution (college, university, or other approved 

by the Treasury. The Fund Balance with Treasury line on the Statement of educational institution, or a lending institution holding an existing 

Financial Position consists of the following: student loan) as designated by the participant. The National Service 

Trust also pays awards under the President’s Freedom Scholarship, • Appropriated Funds – Appropriated funds are received through 

Summer of Service, and Silver Scholar programs. congressional appropriations to provide financing sources for CNCS’s 

programs on an annual, multi-year, and no-year basis. • Gift Funds – Gift Funds are funds received from individuals and 

organizations as donations in furtherance of the purposes of national • Trust Funds – Trust funds are accounts designated by law for 

service laws. receipts earmarked for specific purposes and for the expenditure 

of these receipts. Funds from the National Service Trust may be 

Fund Balance with Treasury as of September 30, 2015 (dollars in thousands)

UNRESTRICTED RESTRICTED

Type Appropriated Funds Trust Funds Gift Funds Total

Obligated Not Yet Disbursed $ 886,406 $ 635,320 $ 45 $ 1,521,771

Unobligated Available 24,435 73,335 343 98,113

Unobligated Unavailable 82,669 50,197 - 132,866

Non Budgetary FBWT 2,033 - - 2,033

Investments * - (750,432) - (750,432)

Total $ 995,543 $ 8,420 $ 388 $ 1,004,351

Fund Balance with Treasury as of September 30, 2014 (dollars in thousands)

UNRESTRICTED RESTRICTED

Type Appropriated Funds Trust Funds Gift Funds Total

Obligated Not Yet Disbursed $ 856,822 $ 623,340 $ 124 $ 1,480,286

Unobligated Available 11,891 48,351 372 60,614

Unobligated Unavailable 94,136 50,670 - 144,806

Non Budgetary FBWT 1,787 - - 1,787

Investments * - (715,755) - (715,755)

Total $ 964,636 $ 6,606 $ 496 $ 971,738

* Investments include purchases, sales, premiums and discounts

In FY 2015, CNCS restructured the FBWT line item on the balance sheet, and Note 2 FBWT, to present the Cash and Other Monetary Assets balance 

separately from the FBWT balance. The changes were done to reflect a more accurate presentation of the FBWT balance, and to align the Unobligated 

Available and Unobligated Unavailable balances in Note 2 to the Statement of Budgetary Resources line items Apportioned and Unapportioned, respectively.
Financial Statements | PART II 52

The Corporation for National and Community Service

NOTE 3—Investments and Related Receivables

Investments and Related Receivables as of September 30 (dollars in thousands)

2015 2014

Investments, Carrying Value $ 750,977 $ 717,304

Interest Receivable 487 669

Total $ 751,464 $ 717,973

Amortized Cost and Fair Value of Investment Securities as of September 30, 2015 (dollars in thousands)

Amortized Cost 

Unrealized 

Securities Gains/(Losses) Fair Value

Notes $ 328,823 $ 652 $ 329,475 

Bills 422,154 142 422,296

Total $ 750,977 $ 794 $ 751,771 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2014 (dollars in thousands)

 Unrealized 

Gains/(Losses) 

 

Securities Amortized Cost Fair Value

Notes $ 459,781 $ 596 $ 460,377 

Bills 257,523 37 257,560

Total $ 717,304 $ 633 $ 717,937 

As of September 30, 2015, the notes held at year-end had an interest Since FY 2003, CNCS has set aside in reserve a portion of the funds in 

rate range of 0.250 percent to 0.625 percent and an outstanding the National Service Trust for use in the event that its estimates used 

maturity period of approximately 197 days to two years. The bills held at to calculate obligational amounts for education awards prove to be too 

year-end had an interest rate range of 0.000 percent to 0.415 percent low. This reserve was originally required by the Strengthen AmeriCorps 

and were all due to mature within 364 days. The par values of notes Program Act, and is now required by section 149(b) of the National 

range from $9.6 million to $148.3 million. The fair value of the bills and and Community Service Act (42 U.S.C. 12606(b)). As of September 30, 

notes is based on bid and ask prices quoted by Treasury as of September 2015, $50.2 million of CNCS’s investment account has been set aside 

30, 2015, and 2014. for this reserve.
Financial Statements | PART II 53

NOTE 3—Investments and Related Receivables–Continued

Maturation of Securities Held as of September 30 (dollars in thousands)

2015 2014

Amortized

Cost 

 

Fair Value 

Amortized

Held-to-Maturity Securities Cost Fair Value

Due in 1 year or less $ 523,225 $ 523,435 $ 537,761 $ 538,417

Due after 1 year up to 5 years 227,752 228,336 179,543 179,520

Total $ 750,977 $ 751,771 $ 717,304 $ 717,937

NOTE 4 – Accounts Receivables, Net

Accounts Receivable as of September 30 (dollars in thousands)

Appropriated Funds Trust Fund Total

2015

Accounts receivable $ 9,196 $ 355 $ 9,551 

Less: allowance for doubtful accounts (1,300) (94) (1,394)

Accounts Receivable, Net $ 7,896 $ 261 $ 8,157 

2014

Accounts receivable $ 9,875 $ 274 $ 10,149 

Less: allowance for doubtful accounts (826) (45) (871)

Accounts Receivable, Net $ 9,049 $ 229 $ 9,278 
Financial Statements | PART II 54

The Corporation for National and Community Service

NOTE 5—Property and Equipment, Net

General Property and Equipment as of September 30, 2015 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 4,010 $ (2,534) $ 1,476 

ADP software in development N/A 4,464 – 4,464 

ADP software 2 13,847 (12,347) 1,500

Total $ 22,321 $ (14,881) $ 7,440

NOTE 6—Trust Service Award Liability The National Service Trust also pays forbearance interest on qualified 

Individuals who successfully complete terms of service in AmeriCorps student loans during the period members perform community service, 

programs earn education awards, which can be used to make payments as well as awards under the Presidential Freedom Scholarship Program. 

on qualified student loans or for educational expenses at qualified The award liability components related to education awards and interest 

educational institutions. The awards, which are available to use for a forbearance have been adjusted, based on historical experience, to reflect 

period of up to seven years after the benefit has been earned, are paid the fact that some eligible participants may not use these benefits. The 

from the National Service Trust. Service Award was composed of the following as of September 30:

General Property and Equipment as of September 30, 2014 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 2,586 $ (2,267) $ 319 

ADP software in development N/A 42 – 42 

ADP software 2 12,722 (10,696) 2,026

Total $ 15,350 $ (12,963) $ 2,387

Service Award Liability as of September 30 (dollars in thousands)

2015 2014

Education awards $ 2,647,027 $ 2,469,053 

Interest forbearance 103,258 89,677

President’s Freedom Scholarship Program 22,527 22,527 

Total estimated service award liability 2,772,812 2,581,257

Less: cumulative awards paid (2,317,922) (2,127,126)

Total $ 454,890 $ 454,131 
Financial Statements | PART II 55

The Corporation for National and Community Service

The Net Service Award Liability as of September 30, 2015 increased by NOTE 7—Operating Leases

approximately $0.76 million from the Net Service Award Liability as of CNCS leases office space through the General Services Administration 

September 30, 2014. As of October 1, 2009, the National Service Trust (GSA). GSA charges CNCS a Standard Level Users Charge that approximates 

is also available to pay Summer of Service and Silver Scholar education commercial rental rates for similar properties. The NCCC also leases housing

awards. However, the Silver Scholar program was not funded and no facilities for its campuses. Additionally, CNCS leases motor vehicles on an 

current liability was accrued for those educational awards. The Summer of annual basis through GSA under an Interagency Fleet Management Service 

Service program was only funded in FY 2010. 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 noncancelable lease terms in excess of one year as of September 30.

Estimated Operating Lease Commitments as of September 30 (dollars in thousands)

2015 2014

Fiscal Facilities Facilities

Year Space Vehicles Other Total Space Vehicles Other Total

2015 $ - $ - $ - $ - $ 10,414 $ 298 $ 540 $ 11,252

2016 11,522 795 554 12,871 10,381 309 522 11,212

2017 11,846 813 561 13,220 10,702 322 531 11,555

2018 12,179 832 575 13,586 11,033 335 532 11,900

2019 12,523 852 598 13,973 11,374 348 541 12,263

2020 12,876 872 622 14,370 - - - - 

Total $ 60,946 $ 4,164 $ 2,910 $ 68,020 $ 53,904 $ 1,612 $ 2,666 $ 58,182

NOTE 8—Actuarial FECA Liability by DOL. The actuarial liability is determined using a method that utilizes 

CNCS’s actuarial liability for future workers’ compensation benefits under historical benefit payment patterns related to a specific incurred period to 

FECA was $8.3 million and $9.3 million as of September 30, 2015, and predict the ultimate payments related to that period. Consistent with past 

2014, respectively. The amount includes the expected liability for death, practice, these projected annual benefit payments have been discounted 

disability, medical, and miscellaneous costs for approved compensation to present value using the Office of Management and Budget’s (OMB’s) 

cases. As with all federal agencies CNCS’s FECA liability is determined economic assumptions for 10-year Treasury notes and bonds.
Financial Statements | PART II 56

The Corporation for National and Community Service

NOTE 9—Advances from Others Advances from others primarily consist of Federal Emergency Management 

Advances from Others consists of advances from other federal Agency (FEMA), Environmental Protection Agency (EPA), Department of 

government entities and nonfederal entities related to the interagency Justice (DOJ), Department of Housing and Urban Development (HUD), and 

and cost share agreements into which CNCS entered to provide services. Department of Agriculture (USDA) related reimbursable activities.

Advancess from Others as of September 30 (dollars in thousands)

2015 2014

Advances from Others-Federal $ 26,725 $ 24,937 

Advances from Others-NonFederal - 53

Total Advances from Others $ 26,725 $ 24,990 

NOTE 10—Other Liabilities by DOL and billed to CNCS but have not yet been reimbursed to DOL, other 

Other liabilities include amounts owed but not paid at the end of the fiscal unfunded employment related liability, liability for non-fiduciary deposit 

year for payroll and benefits, AmeriCorps VISTA stipends, the amount of funds and undeposited collections, and accounts payable canceled 

claims for benefits for CNCS’s employees under FECA that have been paid appropriations.

Other Liabilities as of September 30 (dollars in thousands)

2015 2014

Accrued Funded Payroll and Benefits $ 2,180 $ 1,854 

Unfunded FECA Liability 2,076 2,193

Member Payroll Related Liabilities 3,808 3,516

Liability for Non-Entity Assets 3,481 3,162

Other 3,367 3,548

Total Other Liabilities $ 14,912 $ 14,273 

NOTE 11—Net Position results of operations. Component balances are separately maintained for 

Net position consists of unexpended appropriations and cumulative the Gift Funds, Trust Funds and Appropriated Funds. 

Net Position by Fund Balance Component as of September 30, 2015 (dollars in thousands) 

Appropriated Funds Trust Funds Gift Funds Total

Unexpended appropriations $ 915,432 $ - $ - $ 915,432

Cumulative results of operations (3,576) 305,255 385 302,064 

Total Net Position $ 911,856 $ 305,255 $ 385 $ 1,217,496

(Continued)
Financial Statements | PART II 57

The Corporation for National and Community Service

NOTE 11—Net Position–Continued

Net Position by Fund Balance Component as of September 30, 2014 (dollars in thousands)

Appropriated Funds Trust Funds Gift Funds Total

Unexpended appropriations $ 890,367 $ - $ - $ 890,367 

Cumulative results of operations (9,450) 270,677 462 261,689 

Total Net Position $ 880,917 $ 270,677 $ 462 $ 1,152,056

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 

the Corporation’s unrestricted and temporarily restricted net assets

Restrictions on Net Position as of September 30, 2015 (dollars in thousands) 

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 911,856 $ - $ 911,856

Trust Funds - 305,255 305,255

Gift Funds - 385 385

Total Net Position $ 911,856 $ 305,640 $ 1,217,496

Restrictions on Net Position as of September 30, 2014 (dollars in thousands) 

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 880,917 $ - $ 880,917

Trust Funds - 270,677 270,677

Gift Funds - 462 462

Total Net Position $ 880,917 $ 271,139 $ 1,152,056
Financial Statements | PART II 58

NOTE 12—Appropriations Received by the National 

Service Trust

As of September 30, 2015, and 2014, the National Service Trust received 

$209.6 million and $207.4 million, respectively. CNCS is also authorized to 

transfer additional amounts from subtitle C program funds to the National 

Service Trust to support the activities of national service participants. 

Under the provisions of the law, CNCS transferred $7.9 million and $5.1 

million to the Trust in FY 2015 and FY 2014, respectively. Accordingly, 

the National Service Trust received a total funding of $217.5 million in FY 

2015, and $212.5 million in FY 2014, respectively.

NOTE 13—Expenses

Using an appropriate cost accounting methodology, CNCS’s 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 State 

and 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. 

The 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 Retired and Senior Volunteer 

Program (RSVP). 

The Senior Corps programs include 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 was not funded in 

FY 2011; however, there was on-going activity through FY 2014 as the 

program wound down.

The National Service Award Expense component consists of CNCS’s 

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 resources 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.

Components of Grant Funds Expended for the Period Ended September 30 (dollars in thousands)

2015 2014 

Domestic Volunteer Service Act Programs $ 224,267 $ 223,680

National and Community Service Act Programs 370,473 344,812 

Total Grant Funds Expended $ 594,740 $ 568,492 

(Continued)
Financial Statements | PART II 59

The Corporation for National and Community Service

NOTE 13—Expenses–Continued

Expenses by Major Responsibility Segment for the Period Ended September 30 (dollars in thousands) 

2015 2014 

AmeriCorps

State and National $ 569,506 $ 535,574

NCCC 39,597 39,698

VISTA 133,177 132,038

Subtotal $ 742,280 $ 707,310

Senior Corps

RSVP 56,316 54,994

Foster Grandparent Program 116,241 116,428

Senior Companion Program $ 49,231 $ 48,256

Subtotal 221,788 219,678

Learn and Serve America - 472

Innovation, Demonstration & Assistance Activities 47,702 42,165

Office of Inspector General (OIG) 4,552 3,458

Total Expenses $1,016,322 $ 973,083 
Financial Statements | PART II 60

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2015 (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 $ 325,815 $ 65 $ 32,999 $ 47,797 $ 100,896 $ 42,575 $ - $ 44,593 $ - $ 594,740 

VISTA and NCCC stipends and benefits - 8,593 51,758 - - - - - - 60,351

Service award expense 164,878 4,808 21,889 - - - - - - 191,575

Total Grant and Related Expense 490,693 13,466 106,646 47,797 100,896 42,575 - 44,593 - 846,666

Administrative Expense

Federal employee salaries and benefits 43,852 1,101 8,045 3,985 8,520 3,599 - - 2,874 71,976 

Travel and transportation 3,740 5,600 1,778 340 727 307 - - 82 12,574

Rent, communications, and utilities 6,726 4,906 1,118 611 1,307 552 - - 7 15,227 

Program analysis and evaluation 2,593 46 430 236 504 212 - - - 4,021 

Printing and reproduction 50 37 10 150 36 23 - - - 306 

Other services and expenses 20,270 11,687 14,856 3,054 3,944 1,833 - 3,109 1,588 60,341 

Supplies and materials 257 2,730 74 23 50 21 - - 1 3,156 

Depreciation, amortization, and loss on 1,236 22 205 112 240 102 - - - 1,917 

disposition of assets 

Bad debt 89 2 15 8 17 7 - - - 138

Total Administrative Expense 78,813 26,131 26,531 8,519 15,345 6,656 - 3,109 4,552 169,656 

Total Expenses by Type $ 569,506 $ 39,597 $ 133,177 $ 56,316 $ 116,241 $ 49,231 $ - $ 47,702 $ 4,552 $ 1,016,322 
Financial Statements | PART II 61

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Financial Statements | PART II 62

Expenses by Type and Sub-Program for the Period Ended September 30, 2014 (dollars in thousands)

AmeriCorps National Senior Service Corps

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 303,511 $ - $ 34,375 $ 46,756 $ 100,907 $ 41,642 $ 371 $ 40,930 $ - $ 568,492 

VISTA and NCCC stipends and benefits - 9,414 52,677 - - - - - - 62,091

Service award expense 155,001 3,766 18,640 - - - - - - 177,407

Total Grant and Related Expense 458,512 13,180 105,692 46,756 100,907 41,642 371 40,930 - 807,990

Administrative Expense

Federal employee salaries and benefits 41,304 3,311 8,208 3,970 8,584 3,570 47 - 2,448 71,442 

Travel and transportation 3,345 4,392 1,685 321 695 289 4 - 83 10,814

Rent, communications, and utilities 5,977 4,818 1,049 573 1,240 516 7 - - 14,180 

Program analysis and evaluation 2,373 50 416 228 493 205 3 - - 3,768 

Printing and reproduction 77 30 14 7 67 7 - - - 202 

Other services and expenses 22,330 11,749 14,684 2,980 4,098 1,883 38 1,235 923 59,920 

Supplies and materials 540 2,145 95 52 112 47 1 - 4 2,996 

Depreciation, amortization, and loss on 1,096 23 192 105 228 95 1 - - 1,740 

disposition of assets 

Bad debt 20 - 3 2 4 2 - - - 31

Total Administrative Expense 77,062 26,518 26,346 8,238 15,521 6,614 101 1,235 3,458 165,093 

Total Expenses by Type $ 535,574 $ 39,698 $ 132,038 $ 54,994 $ 116,428 $ 48,256 $ 472 $ 42,165 $ 3,458 $ 973,083 
Financial Statements | PART II 63

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Financial Statements | PART II 64

The Corporation for National and Community Service

NOTE 14—National Service Award Expense CNCS estimates the expense for national service awards based on the 

Members serving in approved national service positions are eligible to increase in its cumulative service award liability during the year (see Note 

earn a service award to pay for qualified education expenses. 6). The total service award liability as of September 30, 2015, and 2014, 

respectively, has been adjusted to reflect the fact that earned awards are 

The National Service Trust also pays interest forbearance costs on not always used.

qualified student loans during the period members perform community 

service. 

National Service Award Expense for the Period Ended September 30 (dollars in thousands)

2015 2014

Estimated education awards $ 179,586 $ 167,334 

Estimated interest forbearance 11,989 10,073

National Service Award Expense $ 191,575 $ 177,407 

NOTE 15—Change in Unexpended Appropriations, Net 

Unexpended Appropriations, Net as of September 30 (dollars in thousands)

2015 2014

Unexpended appropriations, beginning balance $ 890,367 $ 809,513 

Increases:

Appropriations received 1,054,954 1,049,954 

Decreases:

Appropriated capital used (779,799) (740,124)

Appropriations transferred to Trust Fund (net of rescissions) (209,618) (207,387)

Program funds transferred to Trust Fund (7,889) (5,109)

Appropriations transferred to other federal agencies (1,000) (2,000)

Rescissions and cancellations (31,583) (14,480)

Total decreases (1,029,889) (969,100)

Change in Unexpended Appropriations 25,065 80,854

Unexpended Appropriations, Ending Balance $ 915,432 $ 890,367
Financial Statements | PART II 65

NOTE 16—Contingencies NOTE 17—Subsequent Events

CNCS is a party to various routine administrative proceedings, legal CNCS has evaluated subsequent events through November 13, 2015, 

actions, and claims brought by or against it, including threatened or which is the date these financial statements were available to be issued. 

pending litigation involving labor relations claims, some of which may As a consequence of its evaluation, CNCS has determined that no 

ultimately result in settlements or decisions against CNCS. In the opinion subsequent events need to be recognized or disclosed.

of CNCS’s management and legal counsel, there are no proceedings, 

actions, or claims outstanding or threatened that would materially impact NOTE 18—Undelivered Orders at Fiscal Year-End

the financial statements of CNCS. CNCS’s undelivered orders as of September 30, 2015, and 2014 were 

$1,020 million and $979.9 million, respectively.

Certain legal matters to which CNCS is a party may be administered and, 

in some instances, litigated and paid by other federal agencies. Generally, NOTE 19—Apportionment Categories of Obligations amounts paid in excess of $2.5 thousand for Federal Tort Claims Act Incurred: Direct vs. Reimbursable Obligations

settlements or awards pertaining to these litigations are funded from the An apportionment is a distribution by OMB of amounts available for 

Treasury Judgment Fund (TJF). Although the ultimate disposition of any obligation. OMB apportions CNCS’s funds on both a quarterly and 

potential TJF proceedings cannot be determined, management does not annual basis. Obligations incurred as of September 30, 2015, and 2014 

expect that any liability or expense that might ensue would be material to were:

CNCS’s financial statements.

Consolidated Obligations Incurred through September 30 (dollars in thousands)

Fiscal Year Direct Reimbursable Total

 

2015 $ 1,252,132 $ 48,617 $ 1,300,749

2014 $ 1,275,003 $ 49,261 $ 1,324,264

NOTE 20—Contributed Capital (Donations)

Under CNCS’s authorizing legislation, donated funds may be accepted 

and used in furtherance of the purposes of the national service laws 

(42 U.S.C. 12651 g(a)(2)(A)). Donated funds received by CNCS as 

of September 30, 2015 and 2014, were $7.5 and $93.1 thousand, 

respectively.
Independent Auditor’s Report | PART III 66

The Corporation for National and Community Service

Section III:

Independent 

Auditor’s Report
Independent Auditor’s Report | PART III 67

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2015 FINANCIAL STATEMENTS 

OIG REPORT 16-01 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on November 13, 2015. 

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 13, 2016, and complete its corrective 

actions by November 14, 2016. 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 68

November 13, 2015 

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 2015 Financial Statements, OIG Report 16-01 

We contracted with the independent certified public accounting firm of Kearney & Company, 

P.C. (Kearney) to audit the consolidated financial statements of the Corporation for National and 

Community Service (Corporation) as of September 30, 2015 and 2014, and for the years then 

ended. The contract required that the audit be performed in accordance with the Government 

Auditing Standards and applicable Office of Management and Budget guidance. 

In its audit, Kearney found: 

 The financial statements present fairly, in all material respects, in accordance with 

accounting principles generally accepted in the United States of America; 

 Two significant deficiencies (Integrity Assurance Program and Information Technology) in 

the Corporation’s internal control over financial reporting; and 

 One instance of noncompliance (Federal Information Security Modernization Act of 2014) 

with applicable provisions of laws, regulations, contracts, and grant agreements. 

In connection with the contract, we reviewed Kearney’s reports and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Corporation’s financial statements or 

conclusions about the effectiveness of internal control; or conclusions on compliance with 

applicable provisions of laws, regulations, contracts, and grant agreements. 

Kearney is responsible for the attached independent auditor’s reports, dated November 13, 

2015, and the conclusions expressed therein. However, our review disclosed no instances 

where Kearney did not comply, in all material respects, with United States generally accepted 

government auditing standards. 

Attachment

cc: Asim Mishra, Chief of Staff 

Jeremy Joseph, General Counsel 

Jeffrey Page, Chief Operating Officer and Acting Chief Financial Officer 

Tom Hanley, Chief Information Officer 

 Kathryn Gillis, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C.

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 
Independent Auditor’s Report | PART III 69

   

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of the Corporation for 

National and Community Service (the Corporation), which comprise the consolidated statements 

of financial position as of September 30, 2015 and 2014, 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, as well as the related notes to the financial statements. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these financial statements 

in accordance with accounting principles generally accepted in the United States of America; this 

includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on 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. 15-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audits to obtain reasonable assurance about 

whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not 

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness 

of accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements. 

1

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 
Independent Auditor’s Report | PART III 70

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the Corporation as of September 30, 2015 and 2014, as well as its net 

cost of operations and changes in net position, cash flows, and budgetary resources for the years 

then ended in accordance with accounting principles generally accepted in the United States of 

America. 

Emphasis of Matter

As discussed in Note 1 to the financial statements, the 2004 Executive Order, entitled “National 

and Community Service Programs” (E.O. 13331), requires a statement of assurance in the 

Corporation’s Management Representation Letter by the Chief Executive Officer and Chief 

Financial Officer that its financial statements, including the SBR, are accurate and reliable. The 

Corporation has interpreted this requirement to include presenting the SBR as a principal 

financial statement. The Corporation’s SBR is prepared in accordance with accounting 

principles generally accepted in the United States of America. 

Our opinion is not modified with respect to this matter. 

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the 

Management’s Discussion and Analysis (hereinafter referred to as the “required supplementary 

information”) be presented to supplement the financial statements. Such information, although 

not a part of the financial statements, is required by OMB and the Federal Accounting Standards 

Advisory Board (FASAB), who consider it to be an essential part of financial reporting for 

placing the financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in 

accordance with auditing standards generally accepted in the United States of America, which 

consisted of inquiries of management about the methods of preparing the information and 

comparing it for consistency with management’s responses to our inquiries, the financial 

statements, and other knowledge we obtained during our audits of the financial statements. We 

do not express an opinion or provide any assurance on the information because the limited 

procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance.
Independent Auditor’s Report | PART III 71

3

Other Information 

Our audits were conducted for the purpose of forming an opinion on the financial statements 

taken as a whole. The information contained in the Donations and Contributions, National 

Service Trust Fund (Trust) Status Report – September 2015, and Improper Payments sections of 

the Fiscal Year 2015 Agency Financial Report is presented for purposes of additional analysis 

and is not a required part of the financial statements. Except as described below, such 

information has not been subjected to the auditing procedures applied in the audits of the 

financial statements; accordingly, we do not express an opinion or provide any assurance on it.

Certain information from the Trust Status Report – September 2015 statements of financial 

position, related statements of operations and changes in net position, statements of cash flows 

and combined SBR (hereinafter referred to as the “Trust financial statements”) as of September 

30, 2015 is presented as other information. In accordance with the requirements of the National 

and Community Service Act of 1990, as amended, we performed a separate audit of the Trust 

financial statements and issued a report thereon dated November 13, 2015.

Reports on Internal Control, Compliance, and Other Matters

In accordance with Government Auditing Standards and OMB Bulletin No. 15-02, we have also 

issued reports, dated November 13, 2015, on our consideration of the Corporation’s internal 

control over financial reporting and on our tests of the Corporation’s compliance with provisions 

of applicable laws, regulations, contracts, and grant agreements, as well as other matters for the 

year ended September 30, 2015. The purpose of those reports is to describe the scope of our 

testing of internal control over financial reporting and compliance and the results of that testing, 

and not to provide an opinion on internal control over financial reporting or on compliance and 

other matters. Those reports are an integral part of an audit performed in accordance with 

Government Auditing Standards and OMB Bulletin No. 15-02 and should be considered in 

assessing the results of our audits.

Alexandria, Virginia

November 13, 2015 
Independent Auditor’s Report | PART III 72

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER 

FINANCIAL REPORTING 

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

We have audited the consolidated financial statements of the Corporation for National and 

Community Service (the Corporation) and the Corporation’s National Service Trust Fund (Trust) 

as of and for the year ended September 30, 2015, and we have issued our reports thereon dated 

November 13, 2015. 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. 15-02, Audit Requirements for Federal 

Financial Statements.

Internal Control over Financial Reporting 

In planning and performing our audits of the consolidated financial statements, we considered 

the Corporation’s internal control over financial reporting (internal control) to determine the 

audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the consolidated financial statements, but not for the purpose of expressing an 

opinion on the effectiveness of the Corporation’s internal control. Accordingly, we do not 

express an opinion on the effectiveness of the Corporation’s internal control. We limited our 

internal control testing to those controls necessary to achieve the objectives described in OMB 

Bulletin No. 15-02. We did not test all internal controls relevant to operating objectives as 

broadly defined by the Federal Managers’ Financial Integrity Act of 1982 (FMFIA), such as 

those controls relevant to ensuring efficient operations.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented 

or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 

combination of deficiencies, in internal control that is less severe than a material weakness yet 

important enough to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the first paragraph 

of this section and was not designed to identify all deficiencies in internal control that might be 

material weaknesses or significant deficiencies; therefore, material weaknesses or significant 

deficiencies may exist that were not identified. Given these limitations, during our audit, we did 

not identify any deficiencies in internal control that we consider to be material weaknesses. 

However, material weaknesses may exist that have not been identified. We identified certain 

1
Independent Auditor’s Report | PART III 73 2

deficiencies in internal control, described in the accompanying Schedule of Findings, that we 

consider to be significant deficiencies. 

We noted certain additional matters involving internal control over financial reporting that we 

will report to the Corporation’s management in a separate letter. 

Status of Prior Year Findings

In the Independent Auditor’s Report on Internal Control over Financial Reporting included in the 

audit report on the Corporation’s fiscal year (FY) 2014 financial statements,1

 we noted two 

issues that were related to internal control over financial reporting. The status of the FY 2014 

internal control findings are summarized in Table 1. 

Table 1: Status of Prior Year Findings 

Control Deficiency FY 2014 Status FY 2015 Status 

Information Technology Significant Deficiency Significant Deficiency

Integrity Assurance Program Significant Deficiency Significant Deficiency

The Corporation’s Response to Findings 

The Corporation’s response to the findings identified in our audits is described in a separate 

letter in Section III of the Agency Financial Report (AFR). The Corporation’s response was not 

subjected to the auditing procedures applied in our audits of the financial statements; 

accordingly, we do not express an opinion on it. 

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of internal control and the 

results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s 

internal control. This report is an integral part of an audit performed in accordance with 

Government Auditing Standards and OMB Bulletin No. 15-02 in considering the Corporation’s 

internal control. Accordingly, this report is not suitable for any other purpose.

Alexandria, Virginia

November 13, 2015 

                                                            

1 Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance with Applicable 

Provisions of Laws, Regulations, Contracts, and Grant Agreements 
Independent Auditor’s Report | PART III 74 3

Schedule of Findings 

Significant Deficiencies 

I. Integrity Assurance Program (Repeat Condition)

The Corporation for National and Community Service (the Corporation) is subject to the 

reporting requirements of the Government Corporation Control Act and is therefore subject to 

Federal Managers’ Financial Integrity Act of 1982 (FMFIA); Office of Management and Budget 

(OMB) Circular A-123, Management’s Responsibility for Internal Control; and the Government 

Accountability Office’s (GAO) Standards for Internal Control in the Federal Government (also

known as the “Green Book”), incorporated by reference within these requirements. Collectively, 

these laws, regulatory guidance, and standards require agencies to establish effective internal 

controls over program and financial operations. The Corporation has struggled with meeting 

these requirements and does not yet have a fully functioning internal control monitoring process 

in place to determine the effectiveness of internal controls and support management’s required 

annual assurance statement under FMFIA. 

The adequacy and effectiveness of the Corporation’s internal controls depends in large measure 

on the effectiveness of a risk assessment and integrity assurance process that remains flawed. 

Improving these processes is urgent, as the revised 2014 GAO Green Book requirements in 

effect in FY 2016 and the up-coming revision of the OMB Circular A-123 have become 

increasingly prescriptive and demanding. The lack of an effective internal control monitoring 

program means that financial, operational, and compliance objectives may not be met and risks 

may not be adequately identified and mitigated. 

Governance and Oversight not Effective

The governance and oversight of the integrity assurance program have not been effective. The 

governing bodies have not met as described in their charters. In FY 2014, the Corporation 

established the Integrity Steering Committee (ISC) to function as a Senior Assessment Team in 

carrying out internal control monitoring. As required by the ISC charter, the ISC members are to 

meet monthly to oversee the Corrective Action Plans (CAP); however, they did not meet in 

October or November 2014. In FY 2015, the Corporation established the Senior Risk 

Management Council (SRMC). The SRMC, which is to meet bi-monthly as described in the 

charter, met only in February and June in FY 2015. Additionally, the Corporation could not 

provide the auditors with the approved meeting minutes mandated by its charter. The SRMC is 

responsible for reviewing and validating CAPs. The Corporation is currently not following up 

on CAPs to ensure they have been implemented. The Office of Grants Management (OGM) 

monitors its own CAPs. These are not discussed at the ISC or SRMC meetings; therefore, there 

is no meaningful oversight or governing body holding OGM accountable for its CAPs. 
Independent Auditor’s Report | PART III 75

4

Numerous OAO Responsibilities Inhibit its Effectiveness 

Ongoing vacancies and resource constraints hamper the Office of Accountability and Oversight’s 

(OAO) ability to stand up an effective program. The OAO is currently made up of seven 

individuals: the Director, two Improper Payments Elimination and Recovery Act (IPERA) 

support specialists, one staff accountant, one program analyst, one internal control and analysis 

position (not a full-time position), and one accountability and oversight position for grant 

monitoring.

The biography of the OAO Director, as extracted from the 2015 Southwest National Service 

Conference agenda, states that she “oversee[s] the enterprise risk management program. She and 

her team are responsible for internal controls, Improper Payment Elimination Recover Act 

(IPERA) requirements, and facilitation of the grants monitoring program.” Given the state of the 

Corporation’s internal control governance and program, the magnitude of the IPERA process and 

difficulties encountered to date, the recognition of the need to develop a more robust and 

rigorous grant monitoring approach through information technology (IT) modernization, and the 

substantial long-term effort necessary to introduce and develop enterprise risk management at the 

Corporation, OAO cannot make significant progress, much less accomplish these objectives, 

with its current level of resources; indeed, each of these areas could arguably require the fulltime attention of the OAO Director. Given the requirements of the revised 2014 GAO Green 

Book that are in effect for FY 2016, the demands on OAO will increase. In addition, OAO staff 

does not have the IT skills to perform an assessment of information systems controls and did not 

supplement their capabilities with outside expertise. Therefore, the IT testing was inadequate.

An Incomplete Risk Assessment Process Omitted Significant Risks 

The Corporation’s risk assessment process is still incomplete and needs to be more 

comprehensive in identifying the range of risks faced by the Corporation. The GAO Standards

for Internal Control in the Federal Government also require a detailed fraud risk assessment and 

the responses to those risks be performed and incorporated into the risk assessment process. 

Based on the assessment documentation, OAO’s testing of grants did not cover the entire 

material risk spectrum, focusing solely on timeliness of documentation and approvals. OAO 

performed no testing in the area of grants monitoring/grants management by OGM, the use of 

single audit results, or drawdowns, nor was there any testing of the grant application process, a 

key process for limiting the Corporation’s risk. 

Deterioration of Quality Control 

Strong financial accounting operations are essential to accountability within an organization and 

are an important avenue for exercising control over an entity’s various activities. Kearney & 

Company, P.C. (Kearney) noted a number of gaps in the controls in this area, which directly 

affected performance of the audit. Accounting and Financial Management Services (AFMS) did 

not cross-train its staff to perform each other’s duties, which puts the Corporation at risk of 

potentially serious errors or gaps when staff members leave the Corporation or transition to other 

jobs within the agency. No staff member was trained or tasked to perform the responsibilities of 
Independent Auditor’s Report | PART III 76

5

the Chief of the Financial Reports and Analysis Branch (FRAB) position, which was left vacant 

for most of FY 2015. The Corporation relied on OAO efforts for financial-related tasks when 

AFMS should have been responsible for these tasks. The lack of cross-training negatively 

impacted the progress of the FY 2015 financial statement audit. Kearney received an 

extraordinarily high number of Provided by Client (PBC) items that included errors, were 

incomplete, or were inconsistent with other PBC items. There was no quality control process for 

these items; data was not validated and basic errors were not caught. Poor documentation 

processes and practices also affected programmatic operations. Changes in processes are not 

clearly documented. For example, in FY 2015, National Civilian Community Corps (NCCC) 

changed its process for documenting results of NCCC members’ criminal history checks of the 

National Sex Offender Public Website (NSOPW). The change was not formally communicated 

to the relevant stakeholders within the Corporation. As a result, NCCC campuses may have been 

maintaining inconsistent documentation. 

II. Information Technology (Repeat Condition)

The Corporation’s IT internal control structure, both for the general support systems (GSS) and 

significant financial reporting applications, did not support an effective internal control 

environment in four of five categories of general controls: security management, access controls, 

configuration management, and contingency planning. The National Institute of Standards and 

Technology (NIST) and the GAO Federal Information System Controls Audit Manual 

(FISCAM) provide control objectives and evaluation techniques that we used during our audit.

For efficiency, Kearney conducted the audit of IT internal controls in conjunction with the 

Corporation’s annual Federal Information Security Modernization Act of 2014 (FISMA) 

evaluation.

The FISMA legislation requires the Office of Inspector General (OIG) to perform an annual 

evaluation of a Federal agency’s information security program, including testing security 

controls for a representative subset of an agency’s systems. Kearney performed the annual 

FISMA evaluation of the Corporation’s information security and privacy program for FY 2015 

on behalf of the OIG and prepared responses to 100 FISMA security metric questions. Of the 

100 security metric questions, our testing identified 54 new or reoccurring instances of 

noncompliance with OMB and NIST guidance. These 54 control deficiencies were consolidated 

into 17 reported findings within the FY 2015 FISMA report, dated November 13, 2015. Eight of 

these findings reoccurred from FY 2014 and five reoccurred from FY 2013. 

Collectively, these control deficiencies in the Corporation’s information security and privacy 

program increase the risk of fraud, waste, and abuse, as well as the likelihood that an information 

security breach may occur and result in loss of sensitive information. The loss of sensitive 

information, such as personally identifiable information (PII), could result in significant financial 

liabilities for the Corporation to investigate and remediate the security breach, as well as 

requiring the purchase of credit monitoring and fraud protection services for the affected 

individuals. Based on our integrated test work, Kearney concluded that the Corporation’s 

information security and privacy program was not compliant in a number of respects with the 

FISMA legislation, OMB guidance, and applicable NIST security publications as of September 
Independent Auditor’s Report | PART III 77

6

30, 2015. Overall, the Corporation needs to take substantial corrective action to address IT 

deficiencies identified in the FY 2015 FISMA report. Management has reported these significant 

deficiencies as a material weaknesses under FMFIA, consistent with the FISMA legislation and 

OMB reporting guidance.

The list of 17 findings, organized by FISCAM control area, is presented on the following pages. 

Security Management 

1. Lack of a Formally Documented and Fully Implemented Information Security Continuous 

Monitoring (ISCM) Strategy (Repeat Finding since FY 2013 FISMA Evaluation) – The 

Corporation has not formally documented and implemented an organization-wide ISCM 

strategy and program, as mandated by OMB guidance and as required by several NIST 

Special Publications (SP), including NIST SP 800-137, NIST SP 800-37, Revision (Rev.) 

1, NIST SP 800-39, and NIST SP 800-53 Rev. 4. As part of monitoring its outsourced 

information systems, the Corporation has not developed meaningful and reportable 

performance metrics to evaluate the IT contractors’ performance and has not incorporated 

such performance metrics into its IT contracts. 

2. Organizational Conflict of Interest (Repeat Finding from FY 2014 FISMA Evaluation) –

NIST SP 800-53, Rev. 4 requires that security assessors be independent and impartial when 

performing security assessments for Federal Information Processing Standard (FIPS) 

Publication (PUB) 199-rated “moderate” and “high” impact information systems. The 

Corporation permitted its managed data center services (MDCS) contractor to perform the 

Security Assessment and Authorization (SA&A) of the Corporation’s GSS and Electronic 

System for Programs Agreements and National Service Participants (eSPAN) information 

systems rather than requiring the MDCS contractor to hire an independent party. The 

security assessors, who had primary responsibility for monitoring the Corporation’s 

network, worked for the MDCS contractor and reported to the overall Project Manager.

The security assessors were effectively reviewing their own work and that of their 

colleagues; their employment status, assigned job responsibilities, and organizational 

reporting relationships precluded an impartial and objective evaluation of security controls.

The Corporation has taken steps to resolve this prior year weakness by hiring an 

independent Information Assurance Program Support (IAPS) contractor in May 2015 to 

perform a review and validation of security assessments. However, the IAPS contractor 

had not completed any independent security assessments as of August 2015. During the 

period of October 1, 2014 to July 31, 2015, the MDCS contractor staff, rather than an 

independent party, performed the required security control assessments. The Corporation 

indicated that the IAPS contractor would assume these responsibilities in future years.

3. Inadequate Enterprise-Wide Risk Management Policies and Practices (Repeat Finding 

since FY 2013 FISMA Evaluation) – The Corporation’s documented risk management 

policies and security controls described the risk management process at the information 

system (Tier 3) level but did not address risks at Tier 1 (Organization) and Tier 2 
Independent Auditor’s Report | PART III 78 7

(Mission/Business). The risk management practices largely do not involve the individuals 

who are responsible for accomplishing organizational, mission, and business objectives on 

a daily basis, such as the business owner or application owner. The Corporation has made 

improvements in risk management and has documented, in draft format, three levels of 

management to cover the enterprise level (Tier 1), the missions/business level (Tier 2), and 

the information systems level (Tier 3). However, the Corporation has not conducted a 

Business Impact Analysis (BIA) to identify mission-critical business functions and quantify 

the impact of a loss of those functions. 

4. Weaknesses with the Corporation’s Security Planning and Assessment Process (Repeat 

Finding since FY 2013 FISMA Evaluation) – The Corporation did not develop standards 

for its multiple IT contractors to follow regarding ongoing security assessments and 

continuous monitoring activities. Kearney’s testing of IT security controls across multiple 

Corporation information systems identified numerous inconsistencies and inaccuracies in 

the system security plans, security assessment reports, and Plan of Action and Milestones 

(POA&M), highlighting the inconsistent nature, depth, and quality of security assessments 

and continuous monitoring activities performed by the Corporation’s IT vendors. 

5. Lack of Formal Role-Based Training (Repeat Finding since FY 2013 FISMA Evaluation) – 

The Corporation has not implemented a formal, documented role-based information 

security training program for individuals with significant security responsibilities as 

required by NIST. Without regular training, individuals with significant information 

security responsibilities may not keep abreast of new IT threats and vulnerabilities and the 

techniques to mitigate them. 

6. Improvements Needed to POA&M Reporting (Repeat Finding since FY 2013 FISMA 

Evaluation) – The Corporation’s POA&Ms did not identify resources required to resolve 

open tasks, such as estimating the level of effort in hours or other costs to procure 

contractor support or tools. Additionally, none of the 60 open Corporation POA&M items 

specified the resources required for issue resolution, and 56 of the 60 items listed on the 

Corporation’s May 2015 POA&M lacked a scheduled remediation date. Finally, the 

Corporation did not document its acceptance of risk for items that it chose not to remediate 

or indicate any planned mitigating controls.

7. Inadequate Controls over Privacy (Repeat Finding from FY 2014 FISMA Evaluation) –

The Corporation demonstrated multiple weaknesses in the implementation of privacy 

controls, such as documenting its implementation of required NIST SP 800-53 privacy 

controls, maintaining a complete inventory of PII, and complying with requirements to 

destroy outdated records containing PII in accordance with records retention schedules.

8. Inadequate Procurement Process of IT – The Corporation did not timely replace the MDCS 

contract upon its expiration. Instead, the MDCS contract was repeatedly extended for a 

total of eight months, allowing multiple high-risk security vulnerabilities identified in prior 

FISMA evaluations to persist. 
Independent Auditor’s Report | PART III 8 79

9. Outdated Information Technology Strategic Plan and Lack of Enterprise Architecture 

Plan – The Corporation’s current IT strategic plan was last updated in FY 2013 and does 

not reflect current IT modernization efforts. Specifically, the IT strategic plan does not 

describe the Corporation’s long-term goals and strategies for leveraging IT to satisfy 

business needs. Additionally, the IT strategic plan does not describe a strategy to protect 

sensitive information and PII in a cloud environment while satisfying Federal information 

security requirements. Furthermore, the Corporation has not defined how its information 

security investments and security strategy fit in the IT strategic plan. Finally, the 

Corporation has not created an Enterprise Architecture Plan (EAP). 

10. Inaccurate Inventory of Physical IT Assets – In July 2015, Kearney visited the Philadelphia 

Field Financial Management Center (FFMC), the Pennsylvania State Office, the Baltimore 

National Civilian Community Corps (NCCC) campus, and the Maryland State Office to 

evaluate the accuracy of the sites’ IT inventory. Kearney noted that none of the sites had 

an accurate inventory of physical IT assets maintained onsite and that some physical IT 

assets that were onsite were not listed on the inventory spreadsheet. 

Access Controls 

11. Use of an Obsolete and Unsupported Network Monitoring Tool (Repeat Finding from FY 

2014 FISMA Evaluation) – The Corporation’s primary tool for network access control, 

monitoring, and audit log analysis was obsolete and unsupported2

 by the vendor.

12. Risks to the Confidentiality and Availability of Voice Communications (Repeat Finding 

from FY 2014 FISMA Evaluation) – The Corporation does not separate its data network 

traffic from its voice network traffic. Corporation desktops were able to ping (query) Cisco 

Voice over Internet Protocol (VoIP) phones and VoIP servers at local and remote offices. 

In addition, users were able to access the Cisco VoIP phones using their desktops’ web 

browser over unencrypted hypertext transfer protocol. The connectivity between the data 

and voice virtual local area networks (VLAN) could be exploited by malicious individuals 

to compromise VoIP components, which generally were not designed with security in mind 

and could allow an attacker to intercept and record phone calls.

13. Access Controls Need Improvement – The Corporation’s user account access review 

process was not effective at identifying inactive accounts or accounts belonging to departed 

employees or contractors due to the manual process involved in granting and removing user 

account access. Additionally, the Corporation’s process for the quarterly review of 

Momentum accounts did not require the System Administrator (SA) to disable an account 

if the individual’s supervisor failed to confirm that user’s access and roles remained valid. 

                                                            

2 Cisco MARS is an appliance for logging, analysis, and retention. The tool is designed to detect changes to 

network devices and servers through log analysis. Cisco announced End-of-Life on May 5, 2008; the Corporation 

and the GSS contractor did not identify and implement a replacement tool before support ended on November 30, 

2011.
Independent Auditor’s Report | PART III 80 9

Configuration Management 

14. Multiple Weaknesses with Vulnerability Scanning and Remediation (Repeat Finding from 

FY 2014 FISMA Evaluation) – The Corporation has taken some steps, but with limited 

progress, to resolve the prior year weaknesses. Kearney identified four deficiencies related 

to vulnerability scanning and the remediation process at the Corporation. Specifically, the 

Corporation did not:

a. Use a vulnerability scanning tool that complied with NIST vulnerability standards 

and supported the Security Content Automation Protocol (SCAP) 

b. Scan desktops and laptops on a monthly basis for missing security patches and/or 

configuration errors 

c. Periodically perform a scan for configuration errors and deviations from the United 

States Government Configuration Baseline (USGCB) for desktops 

d. Include performance metrics for the timely remediation of identified vulnerabilities 

in the new Managed Information Technology Services (MITS) contract. 

  

15. Inadequate Controls over Remote Access (Repeat Finding from FY 2014 FISMA 

Evaluation) – Corporation-issued laptops were configured to automatically connect to the 

Corporation’s network through Cisco’s “AnyConnect VPN” client. However, the 

automatic connection of the laptop to the Virtual Private Network (VPN) server does not 

meet the two-factor authentication requirements for Federal agencies where “one of the 

factors is provided by a device separate from the computer gaining access.”3

 In addition, 

the Corporation incorrectly configured its VPN to permit the use of non-compliant, FIPS4

encryption protocols,5 leaving VPN sessions vulnerable to exploitation, such as “man-inthe-middle attacks.” 

Contingency Planning 

16. Lack of Adequate Testing of Continuity of Operations Plan (Repeat Finding from FY 2014 

FISMA Evaluation) – The Corporation has not conducted adequate planning or testing of 

its Continuity of Operations Plan (COOP). Also, the COOP does not include sufficient 

information to address all mission-essential functions and subordinate plans and details that 

would be necessary should the plan ever need to be activated. In addition, the Corporation 

has made assumptions that do not appear reasonable should it be necessary to activate the 

COOP.

17. Inadequate Disaster Recovery Plan Documentation and Planning (Repeat Finding from FY 

2014 FISMA Evaluation) – The Corporation’s disaster recovery documentation does not 

plan for all of the Corporation’s essential functions and missions. The BIA specifically 

states that it is not meant to address all essential business functions and refers to the COOP 

                                                            

3

 OMB Memorandum M-06-16, Protection of Sensitive Agency Information, June 23, 2006 

4

 FIPS Publication 140-2, Security Requirements for Cryptographic Modules

5

 RC4, Secure Socket Layer (SSL) 3.0, and SSL 3.1/TLS 1.0. RC4, SSL 3.0, and Transport Layer Security (TLS) 

1.0 are widely used commercially, but they have several technical flaws that can increase the risk of exploitation.
Independent Auditor’s Report | PART III 81

10

and the Corporation Disaster Recovery Plan (DRP) for coverage. However, the COOP and 

DRP also did not identify all essential business functions. 
Independent Auditor’s Report | PART III 82 1

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 WITH LAWS, 

REGULATIONS, CONTRACTS, AND GRANT AGREEMENTS 

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

We have audited the consolidated financial statements of the Corporation for National and 

Community Service (the Corporation) and the Corporation National Service Trust Fund (Trust) 

as of and for the year ended September 30, 2015, and we have issued our reports thereon dated 

November 13, 2015. 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. 15-02, Audit Requirements for Federal 

Financial Statements.

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the Corporation’s consolidated financial 

statements are free from material misstatement, we performed tests of its compliance with 

provisions of applicable laws, regulations, contracts, and grant agreements, noncompliance 

which could have a direct and material effect on the determination of financial statement 

amounts. We limited our tests of compliance to these provisions and did not test compliance 

with all laws, regulations, contracts, and grant agreements applicable to the Corporation. 

Providing an opinion on compliance with those provisions was not an objective of our audits; 

accordingly, we do not express such an opinion. The results of our tests disclosed an instance of 

noncompliance that is required to be reported under Government Auditing Standards and is 

described in the accompanying Schedule of Findings. 

The Corporation’s Response to Findings 

The Corporation’s response to the findings identified in our audits is described in a separate 

letter in Section III of the Agency Financial Report (AFR). The Corporation’s response was not 

subjected to the auditing procedures applied in our audits of the financial statements and 

accordingly, we do not express an opinion on it. 
Independent Auditor’s Report | PART III 83

Purpose of this Report 

The purpose of this report is solely to describe the scope of our testing of compliance and the 

results of that testing, and not to provide an opinion on the effectiveness of the Corporation’s 

compliance. This report is an integral part of an audit performed in accordance with Government 

Auditing Standards and OMB Bulletin No. 15-02 in considering the Corporation’s compliance.

Accordingly, this report is not suitable for any other purpose.

Alexandria, Virginia

November 13, 2015 
Independent Auditor’s Report | PART III 84 3

Schedule of Findings 

Noncompliance and Other Matters 

I. Federal Information Security Modernization Act of 2014 (FISMA) (Repeat 

Condition)

FISMA requires agencies to develop, document, and implement an agency-wide information 

security program to provide information security for the information and information systems 

that support the operations and assets of the agency, including those provided or managed by 

another agency, contractor, or other source. 

As noted in its Management Assurance Statement in the FY 2015 Agency Financial Report, the 

Corporation for National and Community Service (the Corporation) disclosed an instance of 

noncompliance with FISMA that is required to be reported under Government Auditing 

Standards and the Office of Management and Budget (OMB) Bulletin No. 15-02. 

By not complying with FISMA, the Corporation has potentially weakened security controls, 

which could adversely affect the confidentiality, integrity, and availability of information and 

information systems. 
Office of Inspector General 

Corporation for National and

Community Service 

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2015

NATIONAL SERVICE TRUST FUND 

FINANCIAL STATEMENTS 

OIG REPORT 16-02 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on November 13, 2015. 
Independent Auditor’s Report | PART III 86

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 

November 13, 2015 

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 2015 National Service Trust Fund Financial Statements, 

OIG Report 16-02 

We contracted with the independent certified public accounting firm of Kearney & Company, 

P.C. (Kearney) to audit the Corporation for National and Community Service’s (Corporation) 

National Service Trust Fund financial statements (Trust financial statements) as of September 

30, 2015 and 2014, and for the years then ended. The contract required that the audit be 

performed in accordance with the Government Auditing Standards and applicable Office of 

Management and Budget guidance. 

In its audit, Kearney found that the Trust financial statements present fairly, in all material 

respects, in accordance with accounting principles generally accepted in the United States of 

America.

In connection with the contract, we reviewed Kearney’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Trust financial statements. 

Kearney is responsible for the attached independent auditor’s report, dated November 13, 2015, 

and the conclusions expressed therein. However, our review disclosed no instances where 

Kearney did not comply, in all material respects, with United States generally accepted 

government auditing standards. 

Attachment

cc: Asim Mishra, Chief of Staff 

Jeremy Joseph, General Counsel 

Jeffrey Page, Chief Operating Officer and Acting Chief Financial Officer 

Tom Hanley, Chief Information Officer 

 Kathryn Gillis, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C. 

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 

November 13, 2015 

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 2015 National Service Trust Fund Financial Statements, 

OIG Report 16-02 

We contracted with the independent certified public accounting firm of Kearney & Company, 

P.C. (Kearney) to audit the Corporation for National and Community Service’s (Corporation) 

National Service Trust Fund financial statements (Trust financial statements) as of September 

30, 2015 and 2014, and for the years then ended. The contract required that the audit be 

performed in accordance with the Government Auditing Standards and applicable Office of 

Management and Budget guidance. 

In its audit, Kearney found that the Trust financial statements present fairly, in all material 

respects, in accordance with accounting principles generally accepted in the United States of 

America.

In connection with the contract, we reviewed Kearney’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Trust financial statements. 

Kearney is responsible for the attached independent auditor’s report, dated November 13, 2015, 

and the conclusions expressed therein. However, our review disclosed no instances where 

Kearney did not comply, in all material respects, with United States generally accepted 

government auditing standards. 

Attachment

cc: Asim Mishra, Chief of Staff 

Jeremy Joseph, General Counsel 

Jeffrey Page, Chief Operating Officer and Acting Chief Financial Officer 

Tom Hanley, Chief Information Officer 

 Kathryn Gillis, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C. 
Independent Auditor’s Report | PART III 87

   

1

1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Trust Financial Statements

We have audited the accompanying financial statements of the Corporation for National and 

Community Service (the Corporation) National Service Trust Fund (Trust), which comprise the 

statements of financial position as of September 30, 2015 and 2014, the related statements of 

operations and changes in net position, the statements of cash flows, and the combined 

statements of budgetary resources (SBR) (hereinafter referred to as the “Trust financial 

statements”) for the years then ended, as well as the related notes to the Trust financial 

statements. 

Management’s Responsibility for the Trust Financial Statements 

Management is responsible for the preparation and fair presentation of the Trust financial 

statements in accordance with accounting principles generally accepted in the United States of 

America; this includes the design, implementation, and maintenance of internal control relevant 

to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error. 

Auditor’s Responsibility

Our responsibility is to express an opinion on the Trust financial statements based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 15-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audits to obtain reasonable assurance about 

whether the Trust financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the Trust financial statements. The procedures selected depend on the auditor’s 

judgment, including the assessment of the risks of material misstatement of the Trust financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the Trust 

financial statements in order to design audit procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal 

control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting 
Independent Auditor’s Report | PART III 88

2

estimates made by management, as well as evaluating the overall presentation of the Trust 

financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the Trust financial statements referred to above present fairly, in all material 

respects, the financial position of the Corporation’s National Service Trust Fund as of September 

30, 2015 and 2014, as well as its net cost of operations and changes in net position, cash flows, 

and budgetary resources for the years then ended, in accordance with accounting principles 

generally accepted in the United States of America. 

Emphasis of Matter

As discussed in Note 1 to the Trust financial statements, the 2004 Executive Order, entitled 

“National and Community Service Programs” (E.O. 13331), requires a statement of assurance in 

the Corporation’s Management Representation Letter by the Chief Executive Officer and Chief 

Financial Officer that its financial statements, including the SBR, are accurate and reliable. The 

Corporation has interpreted this requirement to include presenting the Trust SBR as a principal 

financial statement. The Corporation’s Trust SBR is prepared in accordance with accounting 

principles generally accepted in the United States of America. 

Our opinion is not modified with respect to this matter. 

Other Matters

Other Information 

Our audits were conducted for the purpose of forming an opinion on the Trust financial 

statements taken as a whole. The information contained in the National Service Trust Fund 

Status Report – September 2015, Other Information, section of the Fiscal Year 2015 Agency 

Financial Report is presented for purposes of additional analysis and is not a required part of the 

Trust financial statements. Such information has not been subjected to the auditing procedures 

applied in the audits of the Trust financial statements; accordingly, we do not express an opinion 

or provide any assurance on it.

Reports on Internal Control, Compliance, and Other Matters

In accordance with Government Auditing Standards and OMB Bulletin No. 15-02, we have also 

issued reports, dated November 13, 2015, on our consideration of the Corporation’s internal 

control over financial reporting and on our tests of the Corporation’s compliance with provisions 

of applicable laws, regulations, contracts, and grant agreements, as well as other matters for the 

year ended September 30, 2015. The purpose of those reports is to describe the scope of our 
Independent Auditor’s Report | PART III 89 3

testing of internal control over financial reporting and compliance and the results of that testing, 

and not to provide an opinion on internal control over financial reporting or on compliance and 

other matters. Those reports are an integral part of an audit performed in accordance with 

Government Auditing Standards and OMB Bulletin No. 15-02 and should be considered in 

assessing the results of our audits.

Alexandria, Virginia

November 13, 2015 
Independent Auditor’s Report | PART III 90

The Corporation for National and Community Service

Memorandum

Date: November 13, 2015

To: Deborah Jeffrey, Inspector General

From: Jeffrey Page, Acting Chief Financial Officer

Subject: Draft Report on the Corporation for National and Community Service’s (CNCS) Fiscal Year 

2015 (FY 2015) Financial Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of CNCS’s 

FY 2015 Financial Statements. I am pleased to report that CNCS maintained its unmodified opinion in 

FY 2015. Additionally, one FY 2014 management letter finding associated with financial reporting was 

closed, and, we have made progress towards closing two other FY 2014 findings.

While this forward momentum demonstrates our prioritization of fiscal stewardship, CNCS is not 

without challenges and, as such, recognizes two new management letter findings and the four pre-existing 

findings for FY 2015. CNCS is committed to addressing these findings, continuously improving our 

operations, and maintaining high standards for financial management.
Independent Auditor’s Report | PART III 91

Memorandum

Date: November 13, 2015

To: Deborah Jeffrey, Inspector General

From: Jeffrey Page, Acting Chief Financial Officer

Subject: Draft Report on Internal Controls over Financial Reporting 

Thank you for the opportunity to respond to the draft report on the results of your audit of CNCS’s 

Internal Controls over Financial Reporting. CNCS concurs with the conditions and recommendations it 

contains.

Specifically, CNCS recognizes the repeat of two significant deficiencies in the areas of information 

technology and financial information management. We commit to making the development and 

implementation of effective internal controls a central tenant of our day to day operations. 
Independent Auditor’s Report | PART III 92

Memorandum

Date: November 13, 2015

To: Deborah Jeffrey, Inspector General

From: Jeffrey Page, Acting Chief Financial Officer

Subject: Draft Report on Compliance with Applicable Provisions of Laws, Regulations, Contracts, and 

Grant Agreements

Thank you for the opportunity to respond to the draft report on Compliance with Applicable Provisions 

of Laws, Regulations, Contracts, and Grant Agreements. CNCS concurs with the conditions and 

recommendations reported in the draft report.
Independent Auditor’s Report | PART III 93

Memorandum

Date: November 13, 2015

To: Deborah Jeffrey, Inspector General

From: Jeffrey Page, Acting Chief Financial Officer

Subject: Draft Report on the Fiscal Year 2015 (FY 2015) National Service Trust Fund Financial 

Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of the FY 

2015 National Service Trust Fund financial statements. I am pleased to report that the Corporation for 

National and Community Service (CNCS) maintained an unmodified opinion.

CNCS is committed to upholding the high standards which continue to result in efficient and effective 

operation of the National Service Trust. 
Other Information | PART IV 94

The Corporation for National and Community Service

Section IV:

Other Information

Donations and 

Contributions

Under the Corporation for National and Community Service’s (CNCS) 

authorizing legislation, donated funds may be accepted and used in 

furtherance of the purposes of the national service laws (42 U.S.C. 

12651g(a)(2)(A)). The law allows CNCS to “solicit, accept, hold, administer, 

use, and dispose of, in furtherance of the purpose of the national service 

laws, donations of any money or property, real, personal, or mixed, 

tangible or intangible, received by gift, devise, bequest, or otherwise.” The 

legislation also requires that CNCS report to Congress on the nature and 

amount of donations, as well as on how they were used and disposed of 

(in the case of donated property) in support of its programs and activities. 

This report fulfills these requirements for Fiscal Year (FY) 2015. 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, 2015, to fund 

authorized activities as well as the receipts and expenses paid from the 

Gift Fund in FY 2015 and 2014, respectively. 
Other Information | PART IV 95

The Corporation for National and Community Service

Status of Gift Fund Balance at September 30, 2015

Fund Balance With Treasury Obligation & Commitments Funds Available

Best Buy $ 923 $ - $ 923 

Bradley Foundation 2,030 - 2,030

CVS 7,500 - 7,500

Home Depot 52,839 (22,209) 30,630

Land O’Lakes 1,966 - 1,966 

Ralph Lauren Polo Foundation 53,580 - 53,580

UPS Foundation 2,026 - 2,026

Walt Disney Company 12,278 - 12,278

Kellogg Foundation 55,572 (23,115) 32,457

Disaster Relief Fund 16,623 (350) 16,273

Motorola Foundation 1,070 - 1,070 

Shell Oil Co. 3,365 - 3,365

Microsoft 6,315 - 6,315

American Express 25,000 - 25,000 

IBEW Union 247 - 247

White House Council 108,007 - 108,007

Miscellaneous donations 39,181 - 39,181 

Total $ 388,522 $ (45,674) $ 342,848
Other Information | PART IV 96

The Corporation for National and Community Service

Supplemental Information on the Source and Use Of Donations

2015 2014

Donor Use of Funds Received Used Received Used

Best Buy Grants for the Martin Luther King Jr. 

Day of Service

$ 4,400 $ (5,751) $ 21 $ 38,259

Home Depot Disaster rebuilding activities - (66,415) 16,007

Land O’Lakes VISTA support - - 50,000 118,830

Ralph Lauren Polo 

Foundation

Support for NCCC program activities - - - 1,254

State Farm Insurance Co. Learn & Serve America 15th Anniversary 

Conference - - - 111

Walt Disney Company CNCS projects in support of USA Freedom Corps - (15,880) - 17,745

Shell Oil Co. Support for the Martin Luther King Jr. Day of Service - - - -

Kellogg Foundation AmeriCorps volunteer mobilization - - - -

IBEW Union CNCS Board of Directors support - (285) - -

Motorola Foundation National Conference on Volunteering and Service - - 100 -

Microsoft Student-Driven virtual help desk - - - -

Sponsorship Sponsorship programs - - 19,032 19,032

 

Small Individual Donations Restricted to

Disaster Relief - - - -

Senior Corps - - - -

AmeriCorps (miscellaneous) - (3,092) - -

AmeriCorps NCCC - (3,353) - -

Learn & Serve America - - - -

AmeriCorps VISTA - - - -

General/Miscellaneous support 3,083 (20,618) 23,991 36,905

Total $ 7,483 $ (115,394) $ 93,414 $ 248,143

* Funds reported as used during the fiscal year in the schedule may be from amounts donated in a previous year(s). In addition, the expenses above only include the amount accrued during the fiscal 

year and do not reflect amounts that have been obligated but not yet expensed.
Other Information | PART IV 97

The Corporation for National and Community Service

National Service Trust 

Fund Status Report—

September 2015

The National Service Trust Fund (Trust) was established by the National 

and Community Service Trust Act of 1993 (the Act), 42 U.S.C. 12601, et 

seq. to provide funds for Segal AmeriCorps Education Awards for eligible 

participants who complete AmeriCorps service. Funding comes from 

appropriations, interest earned, transfer of program dollars, proceeds 

from the sale or redemption of Trust investments, partnerships with other 

agencies, and funds collected from disallowed or improperly awarded 

Education Awards. The Trust is also authorized to accept gifts or 

bequests, sponsorships, and funds from federal partners. Under the Act, 

funds are available to repay qualified student loans and eligible interest 

expense on student loans, and pay educational expenses at qualified 

educational institutions.

The value of an education award depends on the term of service 

performed by an AmeriCorps member. For PY 2015, 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 $5,730. 

Completion of a part-time term, requiring a minimum of 900 hours of 

service, entitles an AmeriCorps member to an education award of $2,865. 

Reduced part-time terms, which provide awards of $500 to $2,182, are 

also offered. The education award is indexed to the maximum Federal Pell 

grant, therefore amount may 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 PY 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’s Chief Executive Officer (CEO) for award to grantees, 

but for which the final grant award has not been executed. For budgetary 

purposes these positions are considered commitments in the Trust Fund. 

Positions classified as Planned not Certified have not yet been approved 

by the CEO.

The 77,959 Trust positions planned for Program Year (PY) 2015 did not 

include an estimated 1,020 AmeriCorps VISTA (Volunteers In Service 

To America) members (870 full time and 150 Summer Associates) who 

elected an end-of-service stipend instead of an education award. Total 

estimated member positions for PY 2015, including VISTA members 

electing a stipend, are 78,979. 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 80,009 Trust positions for PY 2014 do not include an estimated 1,650 

AmeriCorps VISTA members (1,329 full time and 321 Summer Associates) 

who elected an end-of-service stipend instead of an education award. 

Total estimated member positions for PY 2014, including VISTA members 

electing a stipend, was 81,659. Of the 6,615 VISTA member positions in 

the Trust for 2014, 1,835 positions are for Summer Associates who receive 

a Trust award of $1,175.

Table 1. AmeriCorps Member Position Award Activity 

PY 2015 PY 2014

Awarded

Awarded

Not

Certified

Not

Awarded

Planned

Not

Certified Total

Awarded

Enrolled

Awarded

Not

Certified 

Not

Awarded 

Planned

Not

Certified Total 

 

Program Enrolled Enrolled

State and National 28,604 29,564 3,884 6,972 69,024 61,991 (3,823)* 3,884 9,057 71,109

VISTA 6,331 – 1,404 – 7,735 6,615 – 1,120 (35) 7,700

NCCC 1,133 – 67 – 1,200 1,073 – 127 – 1,200

Total 36,068 29,564 5,355 6,972 77,959 69,679 (3,823) 5,131 9,022 80,009

* In FY 2013, grants with 5,347 slots were forward-funded. This resulted in more slots enrolled in FY 2014 than were awarded in FY 2014, since some of the slots enrolled 

in FY 2014 were actually awarded in FY 2013. The negative count under “FY 2014 Awarded, Not Enrolled” is an artifact of this.
Other Information | PART IV 98

The Corporation for National and Community Service

Trust Awards Not reflected in the Segal AmeriCorps Education Award balances are 

Since CNCS’s inception in 1993, AmeriCorps members have earned payments for President’s Freedom Scholarships to high school students. 

over $3.09 billion in Segal AmeriCorps Education Awards and used over CNCS no longer awards these $500 scholarships from the National 

$2.2 billion of that amount to fund their education and repay student Service Trust earned by high school students. Under this program, a Trust 

loans. In addition, CNCS has made $11.32 million in interest forbearance scholarship was matched with $500 from a local sponsor for a total of 

payments. Approximately $331.85 million in education awards earned $1,000 to help the student fund a college education. President’s Freedom 

have expired without being used. The Trust obligation formula has been Scholarships payments to date have totaled $21.64 million.

adjusted to reflect these expired awards.

Table 2. Segal AmeriCorps Education Awards Earned and Used Since Program Year 2000 

(dollars in thousands)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Awards Earned to Date

Awards Used to Date

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Recovery

Act 

2010 2011 2012 

Program Year

2013 2014 2015
Other Information | PART IV 99

The Corporation for National and Community Service

Refilled Positions that restrict the overall number of refills to no more than five percent of 

CNCS policy allows grantees limited flexibility to refill positions vacated by awarded positions and suspends refilling altogether if total AmeriCorps 

a member who has served less than 30 percent of his or her service term, enrollment reaches 97 percent of awarded positions. Table 3 provides 

provided that the departing member had not earned a pro-rated education information on the number of positions refilled. Recovery Act positions and 

award. To prevent over-enrollment, the policy includes “fail safe” triggers positions in Program Years 2010 and earlier can no longer be refilled.

Table 3. Number of Refilled Positions by Program Year

Results to Date

 Fail-Safe

2010 2011 2012 2013 2014 2015 Trigger

Number of refilled positions 1,604 1,516 1,381 1,200 25 0 N/A

Refills as a percent of Awarded State and 

National positions 2.0% 2.1% 2.1% 1.9% 0.0% 0.0% 5%

State and National enrollment as a percentage

of awarded positions 99.5% 97.7% 98.8% 98.5% 106.6% 49.2% 97%
Other Information | PART IV 100

The Corporation for National and Community Service

National Service Trust Fund Accounting • Statement of Cash Flows which show how changes in the financial 

The Statements of Financial Position; Operations and Changes in Net position affect cash according to operating, investing, and financing 

Position; Cash Flows, and Budgetary Resources and accompanying notes activity

have been prepared from the books and records of CNCS in accordance • Statement of Budgetary Resources which reports status of 

with generally accepted accounting principles as required by the budgetary resources.

Government Corporation Control Act (Act) and Executive Order 13331, The Federal Accounting Standards Advisory Board (FASAB) is the standard National and Community Service Programs. setting body for the federal government. The Statement of Federal 

As specified in the GCCA, principal financial statements are the: Financial Accounting Standards Number 34 (SFFAS 34) provides financial 

statements prepared by certain government corporations in conformity 

• Statement of Financial Position which reports the status of assets, with the accounting standards issued by the Financial Accounting 

liabilities, and net position of the Trust Standards Board (FASB) and are regarded as being in conformity with 

• Statement of Operations and Changes in Net Position which reports GAAP. As provided by SFFAS 34, where there is no standard issued by 

revenues and expenses for the year and the changes in net position FASB applicable to the federal corporation, the financial statements are 

that occurred during the year presented in accordance with the accounting standards issued by FASAB.

Corporation for National and Community Service 

National Service Trust Statements of Financial Position 

As of September 30, 2015 and 2014 (dollars in thousands)

2015 2014

Assets

Fund Balance with Treasury (Note 2) $ 8,420 $ 6,606

Investments and related receivables (Note 3) 751,464 717,973

Accounts receivable, net (Note 4) 261 229

Total Assets $ 760,145 $ 724,808

Liabilities 

Service award liability (Note 5) 454,890 454,131

Net Position

Cumulative results of operations (Note 6) 305,255 270,677

Total Liabilities and Net Position $ 760,145 $ 724,808

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 101

The Corporation for National and Community Service

Corporation for National and Community Service

National Service Trust Statements of Operations and Changes in Net Position 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

2015 2014

Revenue

Appropriations received by the National Servce Trust (Note 7) $ 209,618 $ 207,387

Transfer in program funds 7,889 5,109

Interest 2,747 2,442

Other revenue 5,894 3,418

Total Revenues $ 226,148 $ 218,356

Expenses 

Service award expense (Note 8) 191,575 177,407

Write off/Recovery of receivables (33) 5

Other expenses 28 3

Total Expenses $ 191,570 $ 177,415

Net of Revenue Over Expenses $ 34,578 $ 40,941

Net Position

Net of Revenue Over Expenses 34,578 40,941

Net Position, Beginning Balance 270,677 229,736

Net Position, Ending Balance (Note 6) $ 305,255 $ 270,677

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 102

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Cash Flows 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES 2015 2014

Net of Revenue over Expenses $ 34,578 $ 40,491 

Adjustments Affecting Cash Flow:

Amortization of Premium/(Discount) on Investments (1,606) (613)

Appropriations Received in Trust (217,507) (212,496)

Decrease/(Increase) in Accounts Receivable (32) 5

Decrease/(Increase) in Interest Receivable 182 253

Increase/(Decrease) in Trust Liability 759 (10,143)

Total Adjustments (218,204) (222,994)

Net Cash Provided/(Used) by Operating Activities (183,626) (182,053)

CASH FLOWS FROM INVESTING ACTIVITIES

Sales of Securities 981,391 867,395

Purchase of Securities (1,013,458) (891,843)

Net Cash Provided/(Used) in Investing Activities (32,067) (24,448) 

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received, Net of Trust 217,507 212,496

Net Cash Provided by Financing Activities 217,507 212,496

Net Increase/(Decrease) in Fund Balance with Treasury 1,814 5,995

Fund Balance with Treasury, Beginning 6,606 611

Fund Balance with Treasury, Ending (Note 2) $ 8,420 $ 6,606

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 103

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources 

For the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

BUDGETARY RESOURCES 2015 2014

Unobligated balance brought forward, October 1 $ 99,021 $ 96,820

Appropriations Discretionary (special or trust funds) 217,507 212,495

Appropriations Mandatory (special or trust funds) 3,933 5,050

Appropriations (discretionary and mandatory) 221,440 217,545

Spending authority from offsetting collections 5,894 3,418

Total budgetary resources $ 326,355 $ 317,783

STATUS OF BUDGETARY RESOURCES 

Obligations incurred 202,823 218,762

Unobligated balance, end of year 

Apportioned (Note 2) 73,335 48,351

Unapportioned (Note 2) 50,197 50,670

Total unobligated balance, end of year 123,532 99,021

Total budgetary resources $ 326,355 $ 317,783 

 (Continued)

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 104

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources – Continued

for the Periods Ended September 30, 2015 and 2014 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2015 2014

Unpaid obligations 

Unpaid obligations, brought forward, October 1 $ 623,340 $ 592,131

Obligations incurred 202,823 218,762

Outlays (gross) (190,843) (187,553)

Unpaid Obligations, end of year $ 635,320 $ 623,340

Memorandum (non-add) entries:

Obligated balance, start of year $ 623,340 $ 592,131 

Obligated balance, end of year (Note 2) $ 635,320 $ 623,340 

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) $ 227,334 $ 220,964 

Actual offsetting collections (5,894) (3,418) 

Budget authority, net (discretionary and mandatory) $ 221,440 $ 217,546 

Outlays, gross (discretionary and mandatory) 190,843 187,553 

Actual offsetting collections (5,894) (3,418)

Outlays, net (discretionary and mandatory) $ 184,949 $ 184,135 

Distributed offsetting receipts (217,507) (212,496)

Agency Outlays, net (discretionary and mandatory) $ (32,558) $ (28,361) 

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 105

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies

A. REPORTING ENTITY

The Trust was established by the National and Community Service Trust 

Act of 1993 (The Act), 42 U.S.C. 12601, et seq. to provide funds for Segal 

AmeriCorps Education Awards for eligible participants who complete 

AmeriCorps service. The activities of the Trust are funded primarily 

through the annual Departments of Labor, Health and Human Services, 

and Education and Related Agencies Appropriations Act, which funds 

National and Community Service Act programs. Appropriations are 

provided on a no-year basis for the Trust, a fund within CNCS used to 

provide education awards and student loan interest forbearance to eligible 

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

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

The Trust provides awards for AmeriCorps members serving in approved 

national service positions under AmeriCorps State and National, 

AmeriCorps NCCC, and AmeriCorps VISTA, as well as for the AmeriCorps 

Education Award Program, a program where sponsoring organizations are 

responsible for providing member subsistence and other costs, and CNCS 

provides an education award and a small amount for administrative costs. 

Education Award Programs have up to two years after award to enroll 

members in positions.

Funds from the Trust may be expended for the purpose of providing an 

education award or student loan interest forbearance payment and must 

always be paid 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 Trust 

may also expend funds for payments under the President’s Freedom 

Scholarship Program as authorized under various CNCS appropriations 

through fiscal 2007.

B. BASIS OF ACCOUNTING

The Statements of Financial Position; Operations and Changes in Net 

Position, Cash Flows and Budgetary Resources have been prepared in 

accordance with Generally Accepted Accounting Principles (GAAP) as 

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

Order 13331, National and Community Service Programs.

C. F INANCIAL STATEMENT PRESENTATION AND 

CONSOLIDATION POLICY

The accompanying financial statements report CNCS’s 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’s 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’s 

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 financial statements prepared by certain 

government corporations in conformity with the accounting standards 

issued by the Financial Accounting Standards Board (FASB) and 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. The Combined Statement 

of Budgetary Resources presents additional details to include activity that 

is significant to CNCS.

CNCS’s consolidation policy requires the consolidation of all funds 

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

In FY 2015, presentation changes have been made to facilitate a greater 

understanding of the statements and notes. Certain prior year amounts 

have been reclassified to conform to the current year presentation. No 

changes made were material at the financial statement line item or at the 

note line level.

D. BUDGETS AND BUDGETARY ACCOUNTING

The activities of the Trust are primarily funded through the annual 

Departments of Labor, Health and Human Services, and Education and 

Related Agencies Appropriation Act. CNCS’s 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 
Other Information | PART IV 106

The Corporation for National and Community Service

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, 2015, the carrying amounts of Fund Balance 

with Treasury, Accounts Receivable, Accrued Interest Receivable, and 

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’s cash accounts with the Department 

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

disbursements on behalf of CNCS and CNCS’s accounting records are 

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

maintained in the 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.

G. INVESTMENTS AND RELATED RECEIVABLES

By law, CNCS may invest the funds of the 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.

Since they are expected to be held-to-maturity, CNCS’s 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, is included in the interest 

receivable balance at year-end.

H. CASH EQUIVALENTS

For purposes of the statement of cash flows, CNCS considers all interestbearing Treasury securities guaranteed by the United States to be cash 

equivalents.

I. ACCOUNTS RECEIVABLE

Accounts receivable represents amounts due to CNCS primarily related 

to grantee audit resolution determinations. An allowance for doubtful 

accounts is established for reporting purposes based on past experience.

J. 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.

K. 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.

L. NET POSITION

Net Position represents Net Assets and is comprised of cumulative 

results of operations. Cumulative results of operations represent the net 

differences between revenues and expenses from the inception of CNCS.

M. REVENUE RECOGNITION

Appropriations received for CNCS’s Trust are recognized as revenue when 

received in the Trust. 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.

Transfer in of Program Funds. Transfers of program funds are 

recognized as revenue when funds are transferred from subtitle C 

pursuant to 42 U.S.C. 1260.

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.

Other Revenue. CNCS’s engagements in federal partnerships allow the 

Trust to be reimbursed for Segal AmeriCorps Education Awards earned by 

members supporting activities of the partnership. The revenue from these 

partnerships is recognized as Other Revenue when earned.

N. 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.

O. 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
Other Information | PART IV 107

The Corporation for National and Community Service

CNCS’s financial statements and accompanying notes. CNCS evaluates P. COMPARATIVE DATA

its estimates and assumptions on an ongoing basis using historical The Trust financial statements provide comparative information for FY 

experience and other factors that it believes to be reasonable under the 2015 and 2014. 

circumstances. Adjustments to estimates and assumptions are made when Q. CONCENTRATION OF RISKS facts and circumstances warrant. As future events and their effects cannot 

Congress annually considers whether to fund CNCS’s program and be determined with certainty, actual results could differ from the estimates 

operational activities. Should Congress opt not to enact appropriations used in preparing the accompanying financial statements. Significant 

to fund them, CNCS would be unable to continue operations of the Trust estimates and assumptions are required as part of determining the liability 

once funds are exhausted for their intended purpose. CNCS management for service awards, grants payable, and grant advances.

believes the risk of such an occurrence is remote.
Other Information | PART IV 108

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 the Trust may be expended for the purpose of providing an education 

by the Treasury. The Fund Balance with Treasury line on the Statement of award or student loan interest forbearance payment and are made 

Financial Position consists of trust funds of $8.4 million in FY 2015 and directly to a qualified institution (college, university, or other approved 

$6.6 million in FY 2014 that are considered restricted. educational institution, or a lending institution holding an existing 

student loan) as designated by the participant. The Trust also pays Trust funds are accounts designated by law for receipts earmarked for awards under the President’s Freedom Scholarship, Summer of Service, specific purposes and for the expenditure of these receipts. Funds from and Silver Scholar programs.

Fund Balance with Treasury as of September 30 (dollars in thousands)

Type 2015 2014

Obligated Not Yet Disbursed $ 635,320 $ 623,340

Unobligated Available 73,335 48,351

Unobligated Unavailable 50,197 50,670

Investments* (750,432) (715,755)

Total $ 8,420 $ 6,606

* Investments include purchases, sales, premiums, and discounts

In FY 2015, CNCS restructured Note 2 FBWT to align the Unobligated 

Available and Unobligated Unavailable balances to the Statement of 

Budgetary Resources (SBR), line items Apportioned and Unapportioned, 

respectively.
Other Information | PART IV 109

The Corporation for National and Community Service

Investments and Related Receivables as of September 30 (dollars in thousands)

2015 2014

Investments, Carrying Value $ 750,977 $ 717,304 

Interest Receivable 487 669

Total $ 751,464 $ 717,973

Amortized Cost and Fair Value of Investment Securities as of September 30, 2015 (dollars in thousands)

Amortized Cost 

Unrealized 

Gains/(Losses) 

 Securities Fair Value

Notes $ 328,823 $ 652 $ 329,475 

Bills 422,154 142 422,296 

Total $ 750,977 $ 794 $ 751,771 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2014 (dollars in thousands)

 Unrealized 

Gains/(Losses) 

 

Securities Amortized Cost Fair Value

Notes $ 459,781 $ 596 $ 460,377 

Bills 257,523 37 257,560 

Total $ 717,304 $ 633 $ 717,937 

(Continued) 

NOTE 3—National Service Trust Investments and Related Receivables
Other Information | PART IV 110

The Corporation for National and Community Service

(Continued) 

As of September 30, 2015, the notes held at year-end had an interest rate Since fiscal 2003, CNCS has set aside in reserve a portion of the funds 

range of 0.250 percent to 0.625 percent and an outstanding maturity in the Trust for use in the event that its estimates used to calculate 

period of approximately 197 days to two years. The bills held at year-end obligational amounts for education awards prove to be too low. This reserve 

had an interest rate range of 0.000 percent to 0.415 percent and were all was originally required by the Strengthen AmeriCorps Program Act, and is 

due to mature within 364 days. The par values of notes range from $9.6 now required by section 149(b) of the National and Community Service Act 

million to $148.3 million. The fair value of the bills and notes is based on (42 U.S.C. 12606(b)). As of September 30, 2015, $50.2 million of CNCS’s 

bid and ask prices quoted by Treasury as of September 30, 2015, and 2014. investment account has been set aside for this reserve.

NOTE 3—Trust Investments and Related Receivables

Maturation of Securities Held as of September 30 (dollars in thousands)

Amortized

Cost 

 

Fair Value 

Amortized

Held-to-Maturity Securities Cost Fair Value

Due in 1 year or less $ 523,225 $ 523,435 $ 537,761 $ 538,417 

2015 2014

Due after 1 year up to 5 years 227,752 228,336 179,543 179,520

Total $ 750,977 $ 751,771 $ 717,304 $ 717,937

NOTE 4 – Accounts Receivable, Net

Accounts Receivable, as of September 30 (dollars in thousands)

Trust Fund Total

2015

Accounts receivable $ 355 $ 355 

Less: allowance for doubtful accounts (94) (94)

Accounts Receivable, Net $ 261 $ 261 

2014

Accounts receivable $ 274 $ 274 

Less: allowance for doubtful accounts (45) (45)

Accounts Receivable, Net $ 229 $ 229
Other Information | PART IV 111

The Corporation for National and Community Service

NOTE 5—Trust Service Award Liability Individuals who successfully complete terms of service in AmeriCorps 

GAAP requires the recording of a liability, which is a point in time programs earn education awards, which can be used to make payments 

estimate, for the unpaid earned and expected-to-be-earned education on qualified student loans or for educational expenses at qualified 

award and interest forbearance costs that are likely to be paid. GAAP educational institutions. The awards, which are available to use for a 

estimates are for members who have already completed at least 15 period of up to seven years after the benefit has been earned, are paid 

percent of the minimum service requirement and who, therefore, have from the Trust. 

served enough hours to qualify for at least a partial education award. The Trust also pays forbearance interest on qualified student loans during 

The estimate of the Service Award Liability under GAAP includes factors the period members perform community service, as well as awards 

that take into account the effect of members who enroll but do not earn under the Presidential Freedom Scholarship Program. The award liability 

an award and members who earn an award but do not use it within the components related to education awards and interest forbearance have 

period of availability. CNCS estimates that up to 87 percent of members been adjusted, based on historical experience, to reflect the fact that 

earning an award will eventually use it. some eligible participants may not use these benefits. The Service Award 

was composed of the following as of September 30:

Since CNCS’s inception in 1994, AmeriCorps members have earned over NOTE 6—Net Positions

$3.1 billion in education awards. CNCS has made $2.2 billion in payments Net position consists of cumulative results of operations. The cumulative 

to educational institutions and student loan holders on these awards. In result of operations for the Trust was $305.3 million in FY 2015 and 

addition, CNCS has made $93.6 million in interest forbearance payments $270.7 million in FY 2014, respectively.

since the program’s inception. Approximately $331.9 million in education 

awards earned had expired without being used as of September 30, 2015. CNCS is required to report information regarding its financial position 

The Trust obligation formula has been adjusted to reflect these expired according to three classes of net assets (net position): unrestricted, 

awards. Payments for President’s Freedom Scholarships have totaled temporarily restricted, and permanently restricted. CNCS has no 

$21.7 million. permanently restricted assets. The financial position of the Trust in the 

amounts of $305.3 million in FY 2015 and $270.7 million in FY 2014 is 

The Net Service Award Liability as of September 30, 2015, increased by temporarily restricted.

approximately $0.76 million from the net Service Award Liability as of 

September 30, 2014. As of October 1, 2009, the Trust is also available to NOTE 7—Appropriations Received by the National 

pay Summer of Service and Silver Scholar education awards. However, Service Trust

the Silver Scholar program was not funded and no current liability was For FY 2015, the Trust received $209.6 million under the Consolidated and 

accrued for those education awards. The Summer of Service program was Further Continuing Appropriations Act, 2015 (Public Law 113-235). For 

only funded in FY 2010. fiscal year 2014, the Trust received $207.4 million under the Consolidated 

Appropriations Act, 2014 (Public Law 113-76). The acts also authorized CNCS 

to transfer additional amounts from subtitle C program funds to the Trust 

Service Award Liability as of September 30 (dollars in thousands)

2015 2014

Education awards $ 2,647,027 $ 2,469,053

Interest forbearance 103,258 89,677 

President’s Freedom Scholarship Program 22,527 22,527

Total estimated service award liability 2,772,812 2,581,257

Less: cumulative awards paid (2,317,922) (2,127,126) 

Total $ 454,890 $ 454,131 
Other Information | PART IV 112

The Corporation for National and Community Service

to support the activities of national service participants. CNCS transferred NOTE 8—Expenses

$7.9 million and $5.1 million to the Trust under this provision in fiscal year Using an appropriate cost accounting methodology, CNCS’s expenses 

2015 and fiscal year 2014, respectively. Accordingly, the Trust received a have been allocated among its major programs, at the sub-program 

total funding of $217.5 million in FY 2015, and $212.5 million in FY 2014, level. The National Service Award Expense component consists of 

respectively. CNCS’s 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 service. 

No indirect costs have been allocated to the National Service Award 

expense component.

NOTE 9—Subsequent Events

CNCS has evaluated subsequent events through November 13, 2015, 

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 10—Undelivered Orders at the End of the Period

The Trust undelivered orders at September 30, 2015, and 2014 were 

$180.4 million and $169.2 million, respectively.

Expenses by AmeriCorps Sub-Program for the Period Ended September 30, 2015 (dollars in thousands)

Type State/National NCCC VISTA Total

Service award expense $ 164,878 $ 4,808 $ 21,889 $ 191,575 

Total Expenses $ 164,878 $ 4,808 $ 21,889 $ 191,575

Expenses by AmeriCorps Sub-Program for the Period Ended September 30, 2014 (dollars in thousands)

Type State/National NCCC VISTA Total

Service award expense $ 155,001 $ 3,766 $ 18,640 $ 177,407 

Total Expenses $ 155,001 $ 3,766 $ 18,640 $ 177,407
Other Information | PART IV 113

The Corporation for National and Community Service

Other Information

Table 6 shows the most significant factors used to calculate Trust awarded. For example, a grantee may receive a grant in fiscal year 2014 

obligations on a historical basis. It is important to note that program year but not fill all positions until FY 2015. All positions related to this grant 

refers to positions awarded with a particular fiscal year’s grant funds. would be considered PY 2014 positions, irrespective of the fiscal year in 

Positions are often filled in time periods after the year in which they are which they are filled.

Table 6. Factors Affecting the National Service Trust Fund

Program Year

2011 2012 2013 2014 2015

Member enrollments in the Trust 79,200 74,517 70,161 69,679 36,068

Percent of members who earned an education award 84.55% 84.84% 84.25% 84.87% 66.77%

Percent of earned education awards used 68.91% 62.72% 50.51% 26.68% 17.87%

Weighted average maturity for investments 1.25% 1.25% 1.25% 1.25% 1.25%

Breakout of enrollment by term type:

Full-time 45% 48% 51% 53% 80%

Part-time 13% 13% 13% 12% 8%

Reduced Part-time 42% 39% 36% 34% 12%

The program year data used throughout these tables reflect all enrollments dollar amount of education awards used by the total amount earned for the 

recorded through the reporting period. Prior year enrollment numbers program year to date. Term type is based on program year enrollments to 

may change slightly from time to time due to corrections or late reporting date. The enrollment and award usage data used to compute these factors 

by grantees. The percentage of members earning an award in Table 6 is can be found in Table 9. 

calculated by taking the number of members earning an award divided Tables 7 and 8 present information on the budgetary resources and by the total members enrolled, net of members still earning. For example, obligations of the Trust, including the Trust Reserve. The schedules present in PY 2014 there are 69,679 members enrolled in the Trust, of which 591 

information on a budgetary basis, which represents the accounting used are reported as still earning an award and 58,614 as having earned an to determine compliance with the Anti-Deficiency Act. CNCS records Trust award. The percentage of members who earned an education award is obligations at the time it awards AmeriCorps State & National grants or at calculated by dividing the number of education awards earned 58,614 by the time it enters into an enforceable agreement with AmeriCorps VISTA the number of enrolled members who are no longer earning an award. Thus, and NCCC members. the percentage of members who earned an award is 84.25 percent. The 

percentage of earned education awards used is calculated by dividing the 
Other Information | PART IV 114

The Corporation for National and Community Service

Table 7. Corporation for National and Community Service 

National Service Trust Schedule of Budgetary Activity 

For the Period Ended September 30, 2015 (dollars in thousands)

Resources Recovery Act Trust (Other) Trust FEMA Corps General Fund Consolidated

Funds Available at October 1 $ 1,882 $ 4 $ 90 $ 46,854 $ 48,830

Budgetary Resources

Fiscal Year Appropriation - - 3,555 209,618 213,173

Less Unapportioned - - - 7,889 7,889

Deobligation Prior Year Positions (net) - - - - -

Collection of Audit Receivables - - - 2,339 2,339

Less: Additions to Trust Reserve - - - - -

Total Resources Available for Use 1,882 4 3,645 266,700 272,231

Obligations

Education Awards - - (3,294) (187,941) (191,235)

Interest Forbearance - - (65) (7,596) (7,661)

Total Obligations - - (3,359) (195,537) (198,896)

Commitments

Education Awards - - - (10,396) (10,396)

Interest Forbearance - - - (397) (397)

Total Commitments - - - (10,793) (10,793)

Funds Available for Obligation $ 1,882 $ 4 $ 286 $ 60,370 $ 62,542
Other Information | PART IV 115

The Corporation for National and Community Service

The amounts obligated in the Trust are based on the estimated value of A portion of the funds in the Trust is held in reserve and are for use in the 

the education benefit discounted for the estimated enrollment, earning event that the estimates used to calculate obligations differ from actual 

and usage rate, and the time value of money. For FY 2015, these factors results. The reserve currently totals $50.197 million ($46.7 million for 

are the full value of the Segal AmeriCorps Education Award, a 100 the General Fund and $3.5 million for the Recovery Act Fund). To date, no 

percent enrollment rate (which allows for refills), an average earning rate reserve funds have been used.

of 84 percent (which ranges from 77 to 86 percent depending on term FEMA Corps is a unit of AmeriCorps National Civilian Community Corps type), and an average usage rate of 87 percent. Under the National and (NCCC) whose members are devoted solely to FEMA disaster response, and Community Service Act, as amended, awards earned by members over age recovery efforts. A five-year agreement provides for a service corps which 55 can be transferred to an eligible beneficiary. For budgetary purposes, compliments and supports FEMA’s current disaster workforce. While FEMA it is projected that all transferable awards will eventually be used. provides funding for the education awards for the FEMA Corps members, they Obligations are periodically adjusted to reflect current earning and usage are shown in tables 7 and 8 as part of our budgetary and obligation activity. projections.”

Table 8. Corporation for National and Community Service 

National Service Trust Schedule of Trust Obligations 

as of September 30, 2015 (dollars in thousands)

Recovery Act Trust (Other) Trust FEMA Corps General Fund Consolidated

Resources

Fund Balance with Treasury $ 119 $ 56 $ 101 $ 8,143 $ 8,419

Investments, Net 10,008 - 10,005 730,964 750,977

Interest Receivable - - - 487 487

Accounts Receivable - - - 261 261

Subtotal 10,127 56 10,106 739,855 760,144 

Less:

Cumulative Trust Reserve (3,500) - - (46,697) (50,197)

Receivables Not Available for Obligation (8) - (5) (1,279) (1,292)

Unapportioned - - - - -

Total Resources 6,619 56 10,101 691,879 708,655

Unliquidated Obligations

Education Awards (4,634) (50) (9,804) (609,955) (624,443)

Interest Forbearance (103) (2) (11) (9,877) (9,993)

President’s Freedom Scholarships - - - (884) (884)

Total Unliquidated Obligations (4,737) (52) (9,815) (620,716) (635,320)

Commitments 

Education Awards - - - (10,396) (10,396)

Interest Forbearance - - - (397) (397)

Total Commitments - - - (10,793) (10,793)

Funds Available for Obligation $ 1,882 $ 4 $ 286 $ 60,370 $ 62,542
Other Information | PART IV 116

The Corporation for National and Community Service

Enrollment Activity

Table 9 presents cumulative data to date on Trust enrollments, education awards earned and used for Program Years 1994 through 2015, as well as 

Recovery Act positions.

Table 9. Trust Enrollment Activity—Program Years 1994 through 2015 (dollars in thousands)

 Members

Earning or 

Not Exited 

Program 

Year Type 

Members 

Enrolled 

Earned an

Award Did Not Earn Amount Earned Amount Used

1994 Full-time 311,667 0 243,221 68,446 $ 1,117,445 $ 892,908

through Part-time 134,857 0 87,687 47,170 199,362 142,124

2006 Reduced Part-time 146,981 1 114,610 32,370 126,183 97,284

Total 593,505 1 445,518 147,986 $ 1,442,990 $ 1,132,316

Full-time 30,905 1 26,179 4,725 $ 121,978 $ 101,379

2007 Part-time 10,137 0 7,365 2,772 17,027 12,335

Reduced Part-time 26,943 0 21,366 5,577 24,309 18,292

Total 67,985 1 54,910 13,074 $ 163,314 $ 132,006

Full-time 32,366 0 28,185 4,181 $ 131,720 $ 107,731

2008 Part-time 10,678 1 8,110 2,567 18,841 13,426

Reduced Part-time 27,007 1 21,877 5,129 24,992 18,343

Total 70,051 2 58,172 11,877 $ 175,553 $ 139,500

Full-time 31,037 3 27,326 3,708 $ 127,708 $ 101,772 

2009 Part-time 9,878 1 7,590 2,287 17,636 12,324

Reduced Part-time 28,867 3 23,306 5,558 26,487 19,385 

Total 69,782 7 58,222 11,553 $ 171,831 $ 133,481

Recovery Full-time 7,908 0 6,654 1,254 $ 31,023 $ 23,771 

Act Part-time 1,662 0 1,221 441 2,818 1,829 

Reduced Part-time 4,293 0 3,592 701 4,186 2,934

Total 13,863 0 11,467 2,396 $ 38,027 $ 28,534

Full-time 37,723 7 33,288 4,428 $ 175,580 $ 133,411

2010 Part-time 11,430 5 8,784 2,641 22,961 14,899

Reduced Part-time 39,213 15 31,751 7,447 38,771 26,573 

Total 88,366 27 73,823 14,516 $ 237,312 $ 174,883

Full-time 35,764 6 31,461 4,297 $ 170,174 $ 120,260 

2011 Part-time 10,351 1 8,378 1,972 22,518 13,189

Reduced Part-time 33,085 2 27,116 5,967 35,393 23,733 

Total 79,200 9 66,955 12,236 $ 225,085 $ 157,181

Full-time 35,795 14 31,529 4,552 $ 169,099 $ 108,856 

2012 Part-time 9,577 15 7,763 1,799 21,006 10,813

Reduced Part-time 29,145 81 23,832 5,232 31,567 19,364 

Total 74,517 110 63,124 11,283 $ 221,672 $ 139,033
Other Information | PART IV 117

The Corporation for National and Community Service

Table 9. Trust Enrollment Activity—Program Years 1994 through 2015–Continued (dollars in thousands)

 

Members 

Members

Earning or 

Not Exited 

Program 

Year Type 

Earned an

Award Did Not Earn Amount Earned Amount Used

Full-time 36,063 37 31,464 4,562 $ 169,209 $ 87,318 

2013 Part-time 8,874 97 6,843 1,844 18,540 7,193

Reduced Part-time 25,314 457 20,307 4,550 27,289 14,110 

Total 70,161 591 58,614 10,956 $ 215,038 $ 108,621

Full-time 37,083 3,164 29,218 4,701 $ 159,888 $ 44,286

2014 Part-time 8,635 2,196 4,863 1,576 13,320 2,023

Reduced Part-time 23,961 5,184 16,107 2,670 21,498 5,636 

Total 69,679 10,544 50,188 8,947 $ 194,706 $ 51,945

Full-time 28,923 27,470 567 886 $ 3,041 $ 441 

2015 Part-time 2,772 2,733 1 38 3 0

Reduced Part-time 4,373 2,868 1,433 72 1,735 413

Total 36,068 33,071 2,001 996 $ 4,779 $ 854

Cumulative To Date 1,233,177 44,363 942,994 245, 820 $ 3,093,307 $ 2,198,355
Other Information | PART IV 118

The Corporation for National and Community Service

Improper Payments

Background 

The Improper Payments Information Act of 2002 (IPIA), as amended by the 

Improper Payments Elimination and Recovery Act of 2010 (IPERA), and the 

Improper Payments Elimination and Recovery Improvement Act of 2012 

(IPERIA), requires agencies to annually report information on improper 

payments (IP) to the President and Congress through their annual 

financial reports. OMB Circular No. A-123, Management’s Responsibility 

for Internal Control, Appendix C, Requirements for Effective Estimation 

and Remediation of Improper Payments (A-123, Appendix C) requires 

reporting of “significant improper payments,” which is defined as gross 

annual improper payments in a program exceeding both the threshold of 

1.5 percent of program outlays and $10 million of all program or activity 

payments or $100 million regardless of the improper payment percentage. 

Agencies are required to determine an annual estimate of improper 

payments within programs that are susceptible to significant improper 

payments with a 90% statistical confidence interval of no more than 

±2.5 percent of the total amount of all payments for a program around 

the estimate of the dollars of improper payments. A-123, Appendix C, 

also requires agencies with programs susceptible to significant improper 

payments to implement corrective action plans. 

CNCS’ Risk Assessment Methodology

CNCS reviewed its program outlay activities for risk of susceptibility to 

significant levels of improper payment as required by A-123, Appendix 

C. These included payments made by CNCS directly to its employees, 

vendors, education and financial institutions on behalf of beneficiaries of 

educational awards, and to individuals serving in the AmeriCorps VISTA 

and NCCC programs. The risk assessment determined that the agency’s 

direct activities were not at risk for significant improper payments.

In addition to its direct activities, CNCS operates a number of grant 

programs. CNCS’s major grant programs are AmeriCorps State and 

National, the SIF, and our Senior Corps programs, FGP, RSVP, and SCP. 

CNCS conducts its risk assessments of its grantmaking programs using 

the same general approach as its statistical estimates of actual improper 

payments described below. In FY 2013, CNCS determined that the 

AmeriCorps State and National program was susceptible to significant 

levels of improper payments, and began estimating and reporting on 

the levels of improper payments for that program in FY 2014. Also in 

FY 2014, CNCS conducted risk assessments of its Senior Corps and 

the SIF programs. Those FY 2014 assessments found that the FGP and 

RSVP were susceptible to significant levels of improper payments, and 

in FY 2015, CNCS attempted to make statistical estimates of the levels 

of improper payments in those programs. In FY 2015, CNCS also reperformed risk assessments of SCP and SIF to determine whether those 

programs were susceptible to significant levels of improper payments. 

The risk assessment determined that SCP is susceptible to significant 

levels of improper payments, but confirmed that the SIF is not susceptible 

to significant levels of improper payments. 

Statistical Sampling 

For the FY 2015 assessments, as in years past, CNCS adopted an iterative 

sampling method to select a random sample of grantee payments from 

each of its five major grant programs: AmeriCorps State and National, the 

SIF, and FGP, RSVP, and SCP.1 

CNCS followed the same iterative sampling method in selecting the 

samples for each program. Since CNCS’s grantees report federal 

expenditures in Federal Financial Reports (FFR) every six months, with 

period ending dates of either March 31 and September 30 or June 30 and 

December 31, CNCS utilized data reported during the second half of FY 

2014 and the first half of FY 2015. In the first step of the process, CNCS 

selected a random sample of FFRs from each program using the Monetary 

Unit Sample selection method. The Monetary Unit Sample selection 

method samples items based on the dollar size of each item in the 

population. An item with a higher dollar value will have a proportionally 

higher chance of being sampled. In the second step, for each sampled 

FFR, CNCS selected samples from supporting General Ledger (GL) reports 

of transactions using an iterative approach until a testable payment was 

identified. In the final step, CNCS requested all of the required supporting 

documentation for the testable payment and conducted the necessary 

testing. This iterative approach required at least four requests for 

information from each selected grantee, and sometimes many more. 

Because the bulk of CNCS’s grant funds go to personnel-type costs, 

CNCS was primarily evaluating payments by our grantees to individuals 

working for or serving with that grantee. Specifically, payments evaluated 

included grantee salary payments to grant-funded staff, grantee stipend 

payments to Senior Corps participants in FGP and SCP, and grant-funded 

living allowance payments to AmeriCorps State and National members. 

Under CNCS’s IPERA methodology, payments to individuals are 

presumptively improper until the grantee can furnish the necessary 

documentation to CNCS for the agency to independently verify the eligibility 

of the individual to receive the salary, stipend or living allowance payment 

per the standards set by statute, regulation, or policy as of the time of 

the payment. Only once a grantee has provided all of the documentation 

1

 However, as discussed above, the sampling of payments with the SIF and SCP programs were limited to conducting risk assessments rather than full statistical estimates of improper payments 

within those programs.
Other Information | PART IV 119

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necessary to adequately confirm that the individual was eligible, and that 

the payment otherwise conformed to the general requirements for grantfunded cost, is the payment determined to be proper. 

More specifically, for any payment to an individual, a grantee needs to 

have all of the following documentation in place at the time of payment to 

confirm (up to the standards set by statute, regulation, and agency policy) 

that the individual was eligible to receive the payment: 

• Criminal history check (usually consisting of documents from as 

many as four separate components all obtained from different 

sources, including a National Sex Offender Public Website (NSOPW) 

check, a fingerprint-based Federal Bureau of Investigation (FBI) 

check, a check of the individual’s state of residence, and a check of 

the individual’s state of service)

• Time sheet, usually requiring signatures of the individual and the 

supervisor

• Age verification

• High school diploma verification (AmeriCorps State and National 

members only)

• Citizenship verification (AmeriCorps members only)

• Annual income verification (Senior Corps participants only)

• Physical examination performed by a medical professional (Senior 

Corps participants only)

These numerous eligibility criteria mean that any given payment to an 

individual has numerous potential failure points in determining whether 

a payment is proper. If a grantee cannot produce even one piece of 

the required documentation as of the time of payment, the payment is 

deemed improper. 

A key source of documentation issues result from the agency’s criminal 

history check requirement. The Serve America Act provides very specific 

criteria for how grant-funded AmeriCorps State and National and Senior 

Corps staff and participants should be screened. In addition to specifying 

what eligibility criteria exist (the individuals cannot be convicted 

murderers or registerable sex offenders), the law specifies how eligibility 

is to be determined. See 42 U.S.C. § 12645g. The grantee must usually 

determine eligibility for all grant-funded individuals with a combination of 

as many as four checks from the NSOPW, the FBI, the individual’s state of 

residence, and the individual’s state of service/work. Whereas any single 

check standing alone provides some information as to the individual’s 

eligibility, the required array of somewhat overlapping checks serves to 

increase the confidence interval of the grantee’s ability to rule out certain 

convictions, i.e., demonstrate to a certain degree of certainty that the 

person is not ineligible. 

CNCS categorized these payments as improper based on a lack of 

complete documentation despite the fact that (1) the payments usually 

remain allowable costs charged to the grant; and (2) the documentation 

available from the grantee in most cases provides evidence that the 

payment went to an eligible person entitled to the payment, (e.g., a 

payment to an individual where the grantee had done all of the necessary 

criminal history checks, except for the state of residence check). The 

transaction is considered improper even though there was only a minimal 

risk that missing state records would have contained a disqualifying 

offense that was not otherwise reported in the FBI or NSOPW check. 

The grantee would be required to perform the missing state check, 

which extremely rarely results in new disqualifying information being 

reported. This example illustrates that, for criminal history checks, the 

documentation available as of the time of payment usually provides 

reliable information that the individual was eligible, and documentation 

later obtained through corrective action to perfect the check in almost 

every case conclusively proves that the individual was eligible as of the 

time of payment. In all cases, a person’s eligibility can be established 

retroactively—the person was or wasn’t a citizen, was or wasn’t ageeligible—as of the time of payment. 

CNCS approaches personnel costs2

 related to noncompliant criminal 

history checks differently from how it reports IPERA findings. The 

costs associated with individuals found to have noncompliant checks 

are allowable once the checks are completed and it is verified that the 

individual is eligible. However, CNCS may nonetheless disallow a portion 

of the grant costs as a consequence of the grantee’s initial failure to 

fully perform timely compliant checks. Under IPERA, even timely and 

compliant checks may be improper payments depending on whether the 

payment is made before the results of the checks have been returned, 

which is permissible as long as the individual is not in unaccompanied 

contact with vulnerable populations. Had CNCS identified any ineligible 

individuals during its review, which CNCS did not, the costs associated 

with those ineligible individuals would have been both unallowable and 

would have been reported as improper payments. 

CNCS identified, extrapolated, and reported improper payments in its 

sampled grantee payments population. The identified errors reflect 

improper payments as defined by OMB. The extrapolation method applied 

was consistent with the iterative sample design. For the AmeriCorps 

State and National program, extrapolations are based on testing a 

sample of 194 transactions out of a planned sample size of 221. The 

potential bias associated with these conditions is not known, as there are 

2

 Specifically, personnel costs consist of staff compensation and benefits, AmeriCorps member living allowances, and Senior Corps volunteer stipends and allowances charged to CNCS grant funds. 
Other Information | PART IV 120

The Corporation for National and Community Service

both valid and invalid reasons for the inability to complete the iterative 

sampling process.3 Therefore, the possible effect of these conditions on 

the extrapolated results is not known. Separately, data artifacts exist 

as a result of CNCS using grantee FFRs as a tool to begin the iterative 

sampling method. The FFR is a reporting of expenditures at a point in 

time during the life of a grant that is updated semi-annually to reflect the 

current total amount charged to the grant from the beginning of the grant 

through the reporting period. When completing the iterative sampling 

process, CNCS found instances where supporting GL reports did not fully 

reconcile to the grantees’ FFR reporting. However, since the FFR is the 

tool used to obtain actual transactional data for IPERA testing, and is not 

itself evidence of an actual payment, CNCS has not included the effect 

of any differences between reported FFR amounts and supporting GL 

reports provided by grantees in improper payment estimates. While CNCS 

does not believe that these actions resulted in any bias in its estimates, 

it will consider alternative sampling methodologies for future IPERA 

assessments and estimates to minimize the risks of any improper bias.

For the FGP and RSVP programs CNCS was not able to complete the 

sampling process and therefore could not estimate improper payments 

with the precision required by A-123, Appendix C. For this reason, CNCS 

is not reporting estimates for these programs for FY 2015. CNCS’s 

inability to fulfil the Appendix C requirements of step 2 for its FGP and 

RSVP programs was due to the time consuming process of identifying 

and collecting data on specific sample transactions, and an inadequate 

number of staff available to successfully complete the process. The 

sampling process CNCS utilizes to test grant programs involves several 

iterations (possibly up to six steps per sample) of data collection from 

grantees. This process requires CNCS staff to analyze six month FFRs 

and subsequent sub ledgers received from each grantee (and in many 

cases, subgrantees). In FY 2015, CNCS requested documentation in 

order to identify 1,660 samples, which equated to thousands of email 

requests sent and data files received. In some cases, completing a 

single iteration of the sampling process required manual reentry of data 

provided by grantees in order to request the next iteration of data. This 

multi-step process can take from one to five hours to complete in order to 

successfully identify a single sample transaction to test. 

Improper Payment Reporting

Significantly, CNCS identified no instances of payments to ineligible 

individuals or any instances of fraud through its testing.

Per OMB requirements, Table 1 displays CNCS’s improper payment results 

for the current year (CY) FY 2015, the prior year (PY) FY 2014, and targets 

for FYs 2016 through 2018. The subsequent tables include the following 

information by year and program: fiscal year outlays, the error rate or 

future target (IP%), and dollars paid or projected to be paid improperly 

(IP$). In addition, for the CY, CNCS included: the amount of overpayments 

(CY Overpayments), the amount of underpayments (CY Underpayments), 

and the net error rate (CY Net IP%) and the corresponding overpayments 

(CY net IP$), when available.

Of the 194 AmeriCorps State and National payments that were tested, 

CNCS found 15 improper payments made by CNCS’s grantees primarily to 

individuals who—as of the time of payment—could not produce to CNCS 

complete and flawless documentation to support the eligibility of the 

individual in the manner set by law, regulation or policy. Based on these 

15 payments, Table 1 “Improper Payment Reduction Outlook” represents 

estimated extrapolated costs of $14.5 million in payments. 

As indicated in Table 1, the FY 2015 improper payment rate in AmeriCorps 

State and National increased from the rate reported in FY 2014. This is 

due entirely to the more exacting testing standards we applied to criminal 

history check requirements in FY 2015. First, CNCS only accepted as 

proper criminal history checks those that were completed prior to the 

transaction date. Second, CNCS applied more rigorous testing standards 

for what constituted an acceptable criminal history check in FY 2015. 

In past IPERA assessments, CNCS evaluated criminal history checks in 

the same way as it resolves audit findings; by focusing on whether the 

individual was in fact eligible. Testing the transaction as of the time 

of payment alone fully accounts for the slightly higher rate of improper 

payments in FY 2015. CNCS has confirmed (based on documentation 

provided by grantees to CNCS during the course of its IPERA analysis) 

that $3.7 million of reported improper payments (20%) were made to 

individuals that were fully eligible at the time of payment. In other words, 

had CNCS measured its improper payment rate as of the time of reporting, 

as it did in 2014, it would be estimating $10.8 million in improper 

payments and an improper payment rate of 4.8% for AmeriCorps State 

and National—a decrease from the FY 2014 improper payment amounts 

of $12.4 million and 5.0%. 

Further, based on CNCS’s extensive experience of conducting monitoring 

of its grant programs, grantees have demonstrated the ability to 

subsequently document through corrective action that the vast majority 

of payments, if not all of the payments, went to eligible individuals. 

However, because in FY 2015 CNCS assessed eligibility based on 

documentation present as of the time of payment, these 20% of reported 

improper payments include payments where CNCS’s grantees did not have 

3

 FFRs are filed by grantees every six months but report cumulative expenses over the period of the grant. If a grantee made appropriate accounting adjustments for a prior FFR period, its next FFR 

will report the new cumulative amount of expenses, which is different from simply adding six months of expenses to expenses reported on the previous FFR. This will result in the grantee’s general 

ledger showing one amount for expenses incurred during the FFR period, but the net increase in cumulative expenses validly being a different amount. Invalid differences can have a wide variety of 

causes, such as charging grant cost based on budgets or the amount of funds drawn down, rather than actual expenses. 
Other Information | PART IV 121

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sufficient criminal background check documentation as of the time of 

payment to establish the eligibility of the individual in the manner required 

by law, but that documentation subsequently obtained by the grantee or 

CNCS prior to the completion of CNCS’s IPERA assessment established 

that the individual was conclusively eligible as of the time of payment. 

As discussed further in the corrective action section below, CNCS is 

not able to report estimated improper payment amounts in its Senior 

Corps programs because the agency’s IPERA process failed to achieve 

the statistical confidence interval required in A-123, Appendix C due to 

numerous challenges in the agency’s process. Among these challenges, 

CNCS had ambitious sample sizes based on prior year improper payment 

rates, but due to these and numerous other process challenges, CNCS 

failed to collect enough data to test the requisite number of samples 

to reach the required confidence intervals. Although the AmeriCorps 

program achieved the required confidence intervals and its data is 

reported accordingly, our process challenges also impacted CNCS’s ability 

to complete testing of all the AmeriCorps samples requested. Testing 

all of the samples requested may have provided different results of the 

reported estimated improper payments for the AmeriCorps program. 

Root Causes

Significantly, as noted above, CNCS identified no instances of payments 

to ineligible individuals or any instances of fraud through its testing. 

Table 2 “Improper Payment Root Cause Category Matrix” represents 

improper payments with the following root causes, as defined by OMB:

“Program Design or Structural Issue” represents $967,000 (6.7%) of total 

estimated (i.e., extrapolated) improper payments resulting from a program 

design or a structural issue. This $967,000 in improper payments reflects 

the extrapolation of a single transaction that occurred where the grantee 

made a payment before the results of a timely initiated FBI or state check 

was obtained. In other words, the grantee’s process was fully compliant 

at the time that the payment was made, but CNCS permits grantees to 

pay individuals before the criminal history check results are returned (in 

addition to requiring other risk-mitigation procedures). In all such cases, 

the returned criminal history check documentation established that the 

individuals were in fact eligible. 

“Insufficient Documentation to Determine” represents $13.5 million 

(93.3%) of the total estimated improper payments reported related to 

insufficient documentation of criminal history checks and timesheets 

by grantees found in 15 of the 194 samples tested. OMB defines this 

category as a situation where there is a lack of supporting documentation 

necessary to verify the accuracy of a payment identified in the improper 

payment testing sample, even though the individual may have been 

eligible, but the documentation was not available contemporaneously.

$12.6 million (86.7%) of total estimated improper payments resulted from 

grantees making 13 payments to individuals without being able to provide 

sufficient documentation to CNCS for the agency to independently verify 

the eligibility of the individual as of the time of payment per the exacting 

standards of the criminal history check law and regulations. CNCS did 

not identify any individuals working or serving that did not have some 

level of background check performed, and found no instances of ineligible 

individuals working or serving. Of the 13 transactions in CNCS’s testing 

found to be improper: 

• S ix transactions which account for $5.8 million (40.0%) of the 

estimated improper payments represented criminal background 

checks for individuals that had all or part of the criminal 

background checks performed by commercial vendors, but CNCS 

could not verify that those checks included all of the necessary 

components or drew their results from the requisite records 

repositories. In all of these instances, each individual had some 

level of background check performed, which indicated that the 

individual was eligible to serve. 

o Two individuals had cleared FBI, state, and NSOPW checks 

prior to the transaction date. CNCS deemed the overall check 

noncompliant because the state checks, which were required in 

these instances, were performed by a vendor that did not use 

the correct repository. 

o Two individuals had national sex offender, national criminal, 

and state checks run through a vendor’s database prior to 

the transaction, but CNCS could not confirm that the vendor 

drew upon the requisite records repositories. (Because these 

individuals did not have access to vulnerable populations, they 

required only a state or FBI check, so the grantees performed 

more screenings than required; regardless of the extra checks, 

CNCS still found those payments to be improper.) 

o One individual had a cleared NSOPW check and national and 

state vendor checks prior to the transaction date, but CNCS 

could not confirm that the vendor drew upon the requisite 

records repositories. 

o One individual had a cleared NSOPW check and a state check 

through a vendor prior to the transaction date, but CNCS could 

not confirm that the vendor drew upon the requisite records 

repositories. (This individual required only the state or FBI check.)

• Three transactions which account for $2.9 million (20.0%) of 

estimated improper payments represented criminal history checks 

that were only perfected by the grantee after the transaction date, 

though all these individuals did have some checks performed timely 

(before the payments in question), including FBI checks, state 

checks, and/or NSOPW checks. After the transaction date, these 

grantees completed the necessary checks and provided adequate 
Other Information | PART IV 122

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documentation for CNCS to now conclude that these individuals are 

eligible under the exacting statutory requirements. 

o One grantee had an appropriate clearance letter4

 in the file 

stating the individual was eligible to serve, and the NSOPW was 

added to the file later.

o One individual had all necessary checks completed, but the 

NSOPW was incomplete because one state was offline when the 

grantee conducted the NSOPW check. (The NSOPW draws from 

state databases, so the federal results are incomplete when 

any state database is offline.) The NSOPW check was not rerun to include results from the state that was offline until after 

the transaction date.

o The last transaction had a cleared NSOPW and vendor check 

prior to the transaction which was later supplemented with a 

check from the designated state repository and an FBI check.

• One transaction, which accounts for $967,000 (6.7%) of estimated 

improper payments, represented an individual without access to 

vulnerable populations where the grantee obtained a timely NSOPW 

check and had timely initiated an FBI check but did not provide 

CNCS with the results of the FBI check. In this case, no state check 

was required. 

• One transaction, which accounts for $967,000 (6.7%) of estimated 

improper payments, represented a grantee who did not check the 

designated state repository for the state of service of the individual, but 

rather checked a state maintained repository that was not an approved 

source of state records. That individual had a cleared NSOPW, FBI 

check, and state of residence check prior to the transaction. 

• Two improper payments, which account for $1.932 million (13.3%) 

of estimated improper payments represented transactions where a 

California-based grantee, due to California state law, was prohibited 

from providing CNCS with the actual documentation supporting the 

checks. In both cases, the grantee provided a cleared NSOPW check 

and letter signed by an authorized representative of the grantee 

indicating that the grantee performed and verified all of the required 

checks, yet the signed letters were not signed contemporaneously 

with the dates that the checks were completed. 

• $967,000 (6.7%) in estimated improper payments stemed from 

one instance where a member’s signed timesheets were not 

provided. The grantee reported that its time validation system 

was inadvertently not validating timesheets—an issue that was 

identified independently during a grants monitoring site visit and is 

reportedly being corrected.

Corrective Actions

This section discusses CNCS’s IPERA process challenges, reasons for 

programs being susceptible to improper payments, and plans to improve 

procedures. 

Nonresponsive Grantees

To address the agency’s substantial nonresponse rates across programs, 

which resulted in CNCS failing to test enough samples to reach the 

required statistical confidence interval, CNCS plans to undertake the 

following initiatives before and during next year’s IPERA process. 

CNCS’s efforts to request data from grantees can be improved 

substantially. CNCS failed to clearly explain the iterative IPERA process 

to grantees in advance of requesting information from them. As a result, 

many grantees did not understand what was being requested, who was 

requesting it and for what purpose, and (as a result of our iterative 

sampling process) did not understand why CNCS continued to ask for 

additional information. In addition, CNCS did not draft its data requests 

to grantees as clearly and simply as possible, nor did we transmit those 

requests from agency staff known to the grantees, i.e., the grantees’ 

CNCS program or grants officers. For instance, our FGP grantees 

received communications from the email address 2015IPERAFGP@cns.

gov with the subject “2015 IPERA Testing Reference Number ####.” It 

is understandable that email requests to grantees were not opened or 

actioned because they may have been overlooked, automatically sent to 

a junk mail folder, or considered email spam or a phishing attack by the 

grantee because the emails came from unknown email addresses, were 

not expected by the grantees, contained unclear text, and sometimes 

unexpected attachments or links. 

In response, CNCS will: 

• Send an IPERA kick-off letter to grantees selected to provide 

samples to explain the agency’s IPERA process, including the need to 

respond timely and the consequences for failing to do so.

• H old an IPERA kick-off call with selected grantees to further explain the 

process and answer any questions at the outset of the collection process.

• Conduct IPERA preparedness training sessions at the four CNCS 

Regional Trainings, as well as at all conferences where CNCS is a key 

participant to further ensure grantee understanding of their role and 

responsibilities during the IPERA review process.

• Create a page on the CNCS web site to explain the IPERA process 

and routinely update our IPERA Frequently Asked Questions to reflect 

a running list of questions asked by grantees. 

• Develop a web-based IPERA training module that will guide grantees 

through the IPERA process. 

• Test communications to identify which ones generate the most 

timely and accurate responses, including coordinating with CNCS’s 

4

 In states where grantees are not allowed to retain or report the results of criminal history checks, grantees are required to contemporaneously record the checks that were completed and report that 

the individuals were eligible to receive payments from the grantee. For IPERA reporting, CNCS only accepted records created before the transaction date.
Other Information | PART IV 123

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Research and Evaluation group and the President’s Social and 

Behavioral Sciences Team to integrate best practices and measure 

which communications yield better response rates. 

• Involve the program and grants officers early in the process to 

ensure the communications are appropriately tailored to each 

program population.

• Issue IPERA communications to grantees from their respective 

program and/or grants office to ensure that the agency’s requests 

originate from an agency official known to the grantee. For instance, 

high nonresponse rates in Senior Corps are partly attributable to 

grantees normally interacting with their state program officer, so 

unusual emails from unknown CNCS email addresses are easily 

overlooked or confusing. 

• Assess using email tools to identify which emails have been received 

and opened and to facilitate improved follow-up on nonresponses. 

• Implement project management strategies to ensure progress is 

tracked, incremental milestones are achieved, and process issues 

are identified and mitigated in a timely manner.

• Improve customer service to keep selected grantees informed of their 

status in the process on a regular basis, including timely responses 

regarding the outcome of the analysis of their selected transaction.

• Dedicate appropriate human and other resources to the management 

and execution of the IPERA process.

CNCS lacked adequate personnel and time to execute the required steps 

to collect the samples. Primarily, CNCS did not have adequate personnel 

available to follow up with nonresponsive grantees and was unable to 

conduct needed follow up on the many requests that were not responded 

to by the grantee. CNCS also did not have adequate personnel or time 

to obtain complete documentation from some of the grantees that were 

responsive. This year, very late in the agency’s sample collection process, 

CNCS added program and grants officers to the effort. Assigning these 

additional staff to the effort resulted in a striking increase in grantee 

responsiveness and improved data collection. Had CNCS integrated more 

program and grants officers from the start, it is believed it would have 

significantly decreased non-responsiveness. In response, CNCS will: 

• Increase the personnel dedicated to the IPERA sample collection 

process to permit for more aggressive follow-up and faster 

processing of data requests.

• I ncrease the amount of time allocated for data collection to give 

CNCS personnel greater time to acquire complete documentation for 

each sample.

• Involve the grantees’ program and grants officers to streamline 

sample acquisition and improve the completeness of the data sent 

to CNCS.

CNCS did not take steps to hold grantees accountable for failure to 

provide the requested information. In response, CNCS will: 

• Implement new terms and conditions upon renewal, continuation 

and new grant awards to make clear that failure to respond to IPERA 

data requests may result in grant funds being placed on temporary 

manual hold, reimbursement only, or other remedies as appropriate.

• I nclude in communications clear sanctions for non-responsiveness 

and the timeline for those sanctions.

• Promptly place grant funds on temporary manual hold, 

reimbursement only, or take other appropriate remedies until CNCS’s 

data requests have been fulfilled, in appropriate circumstances. 

• Notify the field in our Notices of Federal Funding that responsiveness 

to CNCS’s IPERA requests will be a factor in future funding 

decisions, in appropriate circumstances. 

• Review nonresponsive grantees against other available risk factors 

to determine if any remedies are appropriate for nonresponse to the 

FY 2015 IPERA process. 

Sampling Methodology

CNCS’s IPERA sampling efforts in FY 2015 were more difficult due to 

possible oversampling. CNCS based its sample size on the improper 

payment rates identified in the previous year using a statistical 

calculation intended to achieve desired confidence levels. As a result, 

in this year’s IPERA process, CNCS attempted to sample more than 

seven times the number of payments sampled in FY 2014. In addition, 

the sampling methodology used in FY 2014 and FY 2015 required 

several interactions between CNCS and each grantee to even identify a 

transaction to be tested, and then additional interactions to collect all of 

the necessary documents to validate a payment. To identify a random 

transaction, CNCS began with a grantee’s FFR and then requested the 

General Ledger (GL) detail to identify transactions within the FFR. The 

iterative steps continued until transactional data was obtained to test 

whether a payment was proper, possibly requiring up to seven steps per 

transaction sampled. CNCS has begun working with its statisticians, and 

will engage OMB and our Office of Inspector General to attempt to identify 

an improved methodology to address these issues. Additionally, CNCS 

will attempt to align any new methodology as part of the agency’s ongoing 

grants monitoring activity.

Grants Monitoring Activities

CNCS has two parallel work streams around grantee monitoring: (1) 

traditional grants monitoring that is performed on all grantees on a 

rotating basis, and (2) the relatively new IPERA sampling process. Many 

of the items reviewed during traditional grants monitoring are also subject 

to IPERA testing. Because other corrective actions identified require 

program and grants officers to be more involved in IPERA, this necessarily 

means that they will have less time to perform their traditional grants 

monitoring. Accordingly, CNCS has begun to evaluate how to better 

combine these two work streams to make IPERA sampling a more organic 
Other Information | PART IV 124

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part of the overall grantee monitoring strategy. The IPERA evaluation will 

also be part of a broader CNCS effort to implement a robust enterprise 

risk management program. 

Separately, as a result of CNCS’s programs and statutory structure, its 

grants are monitored by several different groups of programs and grants 

officers. For example, while AmeriCorps State and National has some 

direct grantees, the majority of its grants are subgranted through—and 

monitored by—each State Commission. Further, Senior Corps programs 

are monitored by program staff out of CNCS’s state offices. While 

unifying the agency’s monitoring efforts across these different groups has 

been a focus of considerable attention over the last year, the agency will 

redouble its focus to ensure that monitoring is focused on prioritizing the 

key aspects necessary to run a highly effective and compliant program.

Criminal History Check

Nearly all of CNCS’s estimated reportable improper payments stem from a 

failure by our grantees to follow or document the exacting criminal history 

check process required by law, regulation, and policy. 

As noted above, the Serve America Act provides very specific criteria for how 

grant-funded AmeriCorps State and National and Senior Corps staff and 

participants should be screened. In addition to specifying what eligibility 

criteria exist (individuals cannot be convicted murderers or registerable sex 

offenders), the law specifies how eligibility is to be determined. The grantee 

must usually determine eligibility for all grant-funded individuals with a 

combination of as many as four checks from the National Sex Offender Public 

Website, the FBI, the individual’s state of residence, and the individual’s 

state of service/work. Where any single check standing alone provides some 

information as to the individual’s eligibility, the required array of somewhat 

overlapping checks serves to provide greater assurance of the grantee’s 

ability to rule out certain convictions, i.e., demonstrate to a higher degree of 

certainty that the person is not ineligible. 

Although compliance with the specific statutory provisions of the checks is 

paramount, all of the individuals found to have inadequate checks did have 

some degree of background check performed by the grantee, all of which 

indicated that the individuals were eligible. Criminal history background 

checks are not a binary process, as noted above, but rather reflect a degree 

of certainty. Having any check mitigates the risks of having ineligible 

individuals in our programs, and the risk is substantially mitigated with 

presence of certain important checks like the NSOPW or a fingerprint-based 

FBI check. In 20% of cases (three instances), though the grantee did not 

have the complete documentation as of the time of payment, the grantee 

or CNCS has since obtained the necessary documentation to perfect the 

check—up to the legally required standard—to demonstrate the individual’s 

eligibility. CNCS requires all other checks to be perfected through corrective 

action. Based on our extensive experience of conducting monitoring of 

our grant programs, our grantees will be able to subsequently document 

through corrective action that the vast majority of payments, if not all of the 

payments, went to eligible individuals.

Nonetheless, improving grantee compliance with the criminal history 

check rules represents a key focus of CNCS over the last several years 

and into the foreseeable future. In FY 2014 and FY 2015, CNCS took 

extraordinary measures to improve compliance with the criminal history 

check requirements, and more initiatives are in the pipeline. 

In 2014, CNCS initiated an Assessment Period during which grantees 

were strongly encouraged to review all of their personnel files to confirm 

that the required criminal history checks were performed up to the legal 

standard, correct any noncompliant files, and document what remedies 

they performed. Grantees that participated in the Assessment Period, 

which ran during October and November 2014, were able to correct their 

records without risk of cost disallowance. A total of 2,493 grantees and 

subgrantees participated in the Assessment Period, reporting that they 

collectively reviewed more than 115,000 files in the process. Grantees 

reported that they collectively identified and corrected at least 16,458 

missing checks, including 5,358 missing NSOPW checks, 5,760 missing 

state check results, and 5,340 missing FBI check results. Because the 

IPERA sampling period included transactions from before, during, and 

after the Assessment Period, the grantees’ efforts are not fully reflected 

in the 2015 IPERA results. It is expected that the 2016 IPERA review will 

include more post assessment transactions. 

In FY 2015, CNCS renewed and expanded its strategy to improve grantees’ 

criminal history check compliance with enhanced tone from the top, 

increased enforcement, and sustained efforts to lower barriers that inhibit 

grantee compliance. 

• I n April 2015, CNCS adopted an agency-wide criminal history check 

enforcement policy that requires a measure of disallowance for 

nearly every instance of noncompliance (instances of ineligibility 

are always unallowable). The policy enforces compliance with 

CNCS’s statutory and regulatory requirements for conducting the 

checks and emphasizes CNCS’s priority to ensure that programs and 

recipients are fully compliant with the requirements, hold grantees 

consistently accountable for all instances of noncompliance, and use 

enforcement actions to incentivize compliance with the requirements. 

This policy also created a new, cross-functional group within CNCS 

called the Enforcement Team, which is responsible for reviewing and 

coordinating criminal history check matters agency-wide. 

• In August 2015, CNCS published its interim disallowance guide, 

which explains to all program and grants officers within CNCS, 

and to our grantees, with subgrant monitoring responsibilities (i.e., 

State Service Commissions and SIF) how to perform consistent 

disallowance calculations. 
Other Information | PART IV 125

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• As part of its interim disallowance guide, CNCS also adopted a selfreporting option to encourage grantees to adopt internal controls 

to identify criminal history check noncompliance on their own. This 

self-reporting option allows grantees to reduce the amount of 

cost disallowance they face, by half in most cases, if they report 

noncompliance before CNCS initiates monitoring activity. 

In addition to these major milestones, the following activities were 

completed as of the date of this report (unless otherwise noted).

Criminal History Check — Tone from the Top. 

• The CNCS CEO sent an email to all staff and grantees reemphasizing 

that the criminal history checks must be performed “On Time, Every 

Time” and that grantees that fail to meet that standard should 

expect some measure of disallowance. 

• The CNCS CEO discussed the importance of conducting criminal 

history checks “On Time, Every Time” at all five of CNCS’s regional 

training events in FY 2015, reaching some 2,000 grantee staff. The 

CEO also spoke about criminal history checks at each program’s 

annual convening in September 2015. This message of “On Time, 

Every Time” is frequently echoed by each program director and the 

director of the CNCS Office of Field Liaison in public remarks. 

Criminal History Check — Improving Access and Reducing Barriers 

to Compliance.

• T o expand grantees’ access to the FBI criminal background check, 

CNCS awarded a contract to a commercial entity to offer FBI 

background checks directly to our grantees. Previously, grantees had 

to go through their state records repositories to access the FBI check, 

which was infeasible or impossible for many grantees. This option 

will become available to grantees in early calendar year 2016.

• I n an effort to expand access to additional compliant sources of state 

records, CNCS staff reviewed and approved nine alternative state 

data sources for state checks and continues to review and approve 

additional sources. This improves grantees’ access to checks, and 

permits more vendor searches to meet CNCS’s exacting standards. 

Criminal History Check — Improved and Expanded Training and 

Technical Assistance.

• CNCS personnel have conducted training for grantees at nearly 

every national service event since FY 2012, the year that CNCS’s 

criminal history check regulation was finalized. In FY 2015, CNCS 

staff conducted training events for grantees related to criminal 

history checks.

• Recognizing that new grantees often have the most challenges 

complying with the criminal history check requirements, CNCS 

offered live trainings and webinars for new grantees immediately 

following their grant award.

• To ensure that CNCS staff are knowledgeable about the criminal 

history check requirements that apply to grantees, new CNCS staff 

that interact with grantees commonly receive training as part of 

their onboarding process.

• A new criminal history check electronic training course is in the 

process of being finalized. 

• CNCS is creating a criminal history check video library addressing 

specific issues in brief segments.

• CNCS is creating a criminal history check manual and toolkit for 

conducting criminal history checks.

• CNCS is continually updating our criminal history check website with 

new tools and updated information.

Criminal History Check — Expanded CNCS capacity and 

engagement 

• CNCS has doubled the agency’s staffing of employees dedicated to 

criminal history check policy and compliance. 

• CNCS has established a new, cross-function criminal history check 

Enforcement Team.

• CNCS has continued engagement with the Department of Justice’s 

NSOPW.gov web team, the FBI, the National Crime Prevention and 

Privacy Compact Council, state records repositories, administrative 

offices of state courts, the Association of State Service 

Commissions, and Senior Corps advocacy groups.

• CNCS has included information about the criminal history check 

requirements in every grantmaking Notice.

Currently and into 2016, CNCS will continue to innovate new ways to 

improve grantee compliance with the criminal history check requirements. 

• In response to a common challenge faced by grantees—that 

there is no one-stop solution to meet the criminal history check 

requirements—CNCS is exploring an initiative to validate certain 

criminal background check packages offered by commercial vendors 

that meet the exacting legal standards on a state by state basis. 

• To reduce grantees’ burden in collecting and storing eligibility data, 

CNCS is developing a document organization template for grantees 

to be able to download and use. The template will include places 

for grantees to affix relevant documents and certain diagnostic 

questions to help advise grantees as to what documentation is 

required. This template will include documentation related to the 

criminal history check as well as other eligibility information. 

• Senior Corps plans to have its field-based program officers conduct 

diagnostic technical assistance calls with most of its grantees. 

The Senior Corps program officers will first obtain a representative 

criminal history check from each grantee. Then CNCS program staff 

will call the grantee and walk the grantee through the most common 
Other Information | PART IV 126

The Corporation for National and Community Service

areas of noncompliance for each respective Senior Corps program 

using a standardized script. The purpose of these calls is to provide 

direct, individualized technical assistance to Senior Corps grantees 

to sensitize them to common areas of noncompliance and help them 

identify areas for improvement. 

• All grantees identified through improper payment testing will be 

considered for expanded monitoring activities to test for other instances 

of noncompliance and increased training and technical assistance to 

support and guide them to take appropriate corrective actions. 

• In recognition that background checks are only a screening tool to 

reduce risk, CNCS plans to move beyond the checks to help focus 

staff and grantees on prevention. This will include reviewing and 

updating program materials to ensure that grantees’ programs 

are designed in ways that reduce opportunities for inappropriate 

conduct. CNCS also plans to leverage a relationship that our Office 

of the Inspector General initiated with the National Center for 

Missing & Exploited Children. 

Internal Control Over Payments 

The risk assessment process followed CNCS’s Enterprise Risk 

Management Internal Control framework which included:

• Internal Control Environment 

• Risk Assessment 

• Internal Control Activities 

• Information and Communication 

• Monitoring 

The factors considered in the determination of risk levels include: 

• Operating Environment – Existence of factors which necessitate 

or allow for loosening of financial controls; any known instances 

of fraud 

• Payment Processing Controls – Management’s implementation of 

internal controls over payment processes including existence of 

current documentation, the assessment of design and operating 

effectiveness of internal controls over payments, the identification 

of deficiencies related to payment processes, and whether or not 

effective compensating controls are present 

• Internal Monitoring Activities – Periodic internal program reviews 

to determine if payments are made properly; compliance with 

documentation requirements and standards to support testing of 

design and operating effectiveness for key payment controls 

• Human Capital – Experience, training, and size of payment staff; 

ability of staff to handle peak payment requirements; level of 

management oversight, and monitoring against fraudulent activity

• See Table 4 below for program status of internal controls.

Accountability

As discussed above, CNCS continues to take all possible steps 

to maximize grantee compliance with the criminal history check 

requirements. CNCS instituted an enforcement policy and cost 

disallowance guide that requires some measure of cost disallowance in 

nearly all cases of criminal history check noncompliance. In addition, 

CNCS leadership continues to state the expectation of the CNCS CEO 

for criminal history checks is “On Time, Every Time.” Further, CNCS 

leadership and the cross-functional Enforcement Team have devoted 

extraordinary time and attention to reducing barriers to compliance. 

No senior leader in the agency, nor any program or grants officer, is 

not engaged in the task of improving grantees’ compliance with the 

requirements. Nonetheless, the requirements are complicated and 

time-intensive, and grantees lack a one-stop solution for conducting the 

required checks. Beyond criminal history checks, senior agency leadership 

is engaged in efforts to streamline our grants monitoring activities 

to improve our grantees’ compliance with the paperwork required to 

document the eligibility of their staff and participants. 

At the same time, leadership and staff remain focused on the mission 

and purpose of the agency—to fund national service opportunities for 

Americans—and the importance of identifying, funding, and running 

great programs across the country. The agency’s focus on criminal 

history checks primarily reflects the importance of the checks as a 

step to mitigate risk to the populations that benefit from national 

service. While CNCS believes that its improper payment rates do not 

represent federal funds going to undeserving individuals, or being 

misspent through fraud, waste, or abuse, or other improper activities, 

it is committed to ensuring the cost-effective protection of vulnerable 

populations being served by our programs. 

Agency Information Systems and Other Infrastructure

CNCS is implementing information systems and other infrastructure it 

needs to reduce improper payments to the targeted levels. As discussed 

further in the Do Not Pay Initiatives section below, CNCS has partnered 

with Treasury to systematically prevent improper payments to vendors, 

grantees, and volunteers identified on the Do Not Pay lists. In addition, 

CNCS continues to assess and make adjustments to its underlying 

infrastructure to ensure timely compliance with criminal history background 

checks necessary to affirm payments are made to eligible members. As 

discussed in the corrective action section above, CNCS has taken many 

steps to ensure grantees are compliant with criminal history checks, but 

continues to evaluate other viable tools to simplify compliance factors. 

Barriers

CNCS’s susceptibility to improper payments, and the challenges it faces 

in reducing improper payments in the future, are attributed to several 

factors: (1) CNCS has many small grantees; (2) a substantial portion of 
Other Information | PART IV 127

The Corporation for National and Community Service

grant funds are deployed through subgrants; (3) CNCS is prohibited from 

awarding FGP and SGP grants competitively, meaning that our recourse 

against low-performing grantees is limited; and (4) CNCS’s criminal 

history check law requires multiple components available only from 

different sources, yet grantees lack a one-stop solution to check all of the 

required components at one time.

1. C NCS provides grants to many small grantees to operate programs 

with complex requirements. CNCS currently manages approximately 

3,800 grants to organizations, many of which are small or very 

small operations. In FY2015, CNCS awarded 800 new awards 

and 3,000 continuation awards. In the Senior Corps programs, for 

example, the average grant size is $125,000. This nature of the 

grantee population is due primarily to the kinds of local servicedriven solutions that CNCS funds. Through program and grants 

management oversight and monitoring efforts, CNCS is aware 

that smaller grantees face greater challenges implementing their 

programs; they have fewer resources, less staff, and significant 

staff turnover. Yet, regardless of the grantee’s size, the federal 

requirements regarding the management of their award remains 

the same. Further, CNCS-funded programs can be administratively 

complicated as grantees navigate the numerous legal requirements 

and prohibitions that govern the programs, particularly the eligibility 

requirements of the members. 

2. B ecause a substantial portion of CNCS grant funds are deployed 

through subgrants, CNCS does not maintain direct oversight over 

a substantial portion of its grant portfolio. In AmeriCorps State 

and National, for example, CNCS issues $300 million annually in 

grants to State Service Commissions, which subgrant the funds 

to organizations in the states to run AmeriCorps programs. The 

entire portfolio of SIF grants, $70 million annually, is awarded 

to intermediaries that are required to make subawards to other 

organizations. Accordingly, CNCS is limited in its ability to dictate 

how the subgrants are monitored. CNCS attempts to provide 

ongoing training and technical assistance to grantees to improve 

subgrant oversight and monitoring and focus the grantees 

on the key aspects of subgrant compliance, such as criminal 

history checks. CNCS released its criminal history check interim 

disallowance guide publicly for this exact reason—to encourage 

grantees to use it when providing technical assistance or monitoring 

their subgrants. 

3. C NCS’s susceptibility to improper payments in its FGP and SCP 

programs is further exacerbated because the agency is prohibited 

by statute from awarding these grant programs competitively. 

Competitive grantmaking criteria would enable CNCS to identify 

organizations that have a lower potential susceptibility to 

improper payments and award FGP and SCP grants accordingly. 

However, CNCS is prohibited by statute from renewing FGP and 

SCP grants competitively. Absent termination for cause, the law 

requires CNCS to renew grants to FGP and SCP sponsors. This 

means that some FGP grants were last competed in 1965 and 

some SCP grants were last competed in 1974, when federal grant 

requirements were substantially less stringent. Competitive 

grantmaking increases the impact of federal appropriations, 

drives innovation, encourages the use of evidence-based models, 

and ensures accountability. Every CNCS Congressional Budget 

Justification since 2013 has requested authority from Congress 

to compete FGP and SCP funding. 

4. T he complexity of the criminal history check requirement cannot 

be overstated. Many grantees must conduct searches or request 

records from as many as four different sources and face different 

legal requirements in most states. CNCS is unable to offer 

grantees a one-stop, federally-sanctioned solution to conduct 

all of the required steps in a compliant background check at one 

time. As a result, grantees will continually fail to conduct all the 

necessary components on time, every time. Unlike gun sellers, 

who have access to the National Instant Criminal Background 

Check System to conduct the background checks required by law, 

CNCS has no access to any similar system. Rather, grantees must 

coordinate their own searches, obtaining the various components 

through different sources. To mitigate this barrier, CNCS continues 

to promote its strategy of communicating from the top to focus 

grantees on these important requirements, increasing enforcement 

activity to incentivize and maximize compliance, and sustaining 

efforts to lower barriers that inhibit grantee compliance. CNCS 

is continuing to expand access to the checks by, for instance, 

contracting with an FBI Channeler to offer FBI checks directly to 

grantees, and exploring whether commercial vendors can perform 

the checks in certain circumstances.

Recapture of Improper Payment Reporting

Payment Recapture Audits, Reporting, and Programs Excluded from 

Payment Recapture Audit Program

Section 2(h) of IPERA requires agencies to conduct payment recapture 

audits (also known as recovery audits) for each program and activity that 

expends $1 million or more annually if conducting such audits would be 

cost-effective. CNCS relies on existing grant monitoring activities as 

its primary tool for detection and recovery of improper payments. In FY 

2015, CNCS introduced a self-reporting option for criminal history check 

noncompliance to encourage grantees to review their own personnel 

files periodically. During FY 2015, CNCS began reviewing its payment 

recapture activities for programs expending $1 million or more annually 

to include all grantmaking programs, as well as payments made to 

employees, vendors, education institutions on behalf of beneficiaries of 

educational awards, and to individuals serving in the VISTA and NCCC 
Other Information | PART IV 128

The Corporation for National and Community Service

programs. The review is not yet complete, but preliminary results strongly 

indicate that CNCS’s existing program recapture activities routinely result 

in the offset of future payments and that contracting with a private sector 

firm to conduct payment recapture auditing is not warranted. CNCS 

anticipates excluding all of its programs from recapture audit programs 

and, accordingly, did not report payments from recapture audits. CNCS 

will continue to rely upon its existing internal recapture activities as well 

as its criminal history check self-reporting option. 

Overpayments Recaptured Outside of Payment Recapture Audits

To date, the IPERA testing process has identified instances of criminal 

history check noncompliance or instances of insufficient documentation 

to establish validity of payment. During FY 2015, CNCS established its 

Interim Disallowance Guide for criminal history checks. Under A-123, 

Appendix C, instances of noncompliance with criminal history check 

requirements discovered through IPERA testing or other monitoring 

activities, but where subsequent documentation shows that the individual 

who received the payment was in fact eligible, would not result in 

payment recoveries. However, under CNCS’s Interim Disallowance 

Guide, when the grantee did not comply with the criminal history check 

requirements in conducting the checks prior to payment, CNCS program 

officials are required to apply expanded monitoring activities and recover 

costs as applicable. In addition, CNCS routinely recovers disallowed costs 

as a result of its monitoring activities, Office of Inspector General audits 

and investigations, and audits under the Single Audit Act. 

As discussed above, CNCS’s recapture activities result in offsets to future 

payments and were not tracked separately for reporting purposes. During 

FY 2015, CNCS put forth efforts to develop tracking tools and established 

guidance that will facilitate future reporting of recapture activities. Table 

3 below reflects this inability to report. 

Additional Comments

As is suggested in OMB Circular A-123, Appendix A, CNCS will be 

examining the use of the statistical model designed for improper 

payment testing within the AmeriCorps State and National cost 

reimbursement grant programs as part of its ongoing internal controls 

efforts. Specifically, CNCS is considering using a statistical sample of 

transactions charged to its grants as a component of an overall riskbased approach to monitoring its grant portfolio. 

Agency Reduction of Improper Payments with the 

Do Not Pay Initiative

IPERA was further amended in FY 2012 by requiring OMB to identify 

high-priority federal programs for greater levels of oversight and review, 

provide guidance to agencies for improving estimates of improper 

payments, and establish a working system for pre-award, pre-payment 

and post-payment reviews. Accordingly, CNCS uses the Do Not Pay (DNP) 

IPERA process to comply with the executive order of reducing improper 

payments by intensifying efforts to eliminate payment error, waste, fraud, 

and abuse in the major programs administered by the federal government, 

while continuing to ensure that federal programs serve and provide 

access to their intended beneficiaries. 

CNCS payments subject to DNP IPERA guidance include payments to 

vendors and contractors and Federal Financial Assistance payments, 

including grants and payroll member payments. CNCS’s emphasis on 

expediting certain payments (for example, member /volunteer payments 

for necessary mission-related assistance), and the decentralized nature of 

CNCS’s operations increase CNCS’s risk for improper payments.

To minimize risk of improper payments, CNCS established pre-payment 

and pre-award controls. For example, grantee eligibility and compliance 

with prior awards are reviewed prior to new grant awards. In addition, 

CNCS compares vendor and member payments to the Social Security 

Administration’s listing of deceased individuals prior to disbursement to 

ensure payments are not made to these individuals.

CNCS also compares DNP data from internal systems with DNP 

database sources, such as the Central Contractor Registration, 

Death Master File -DMF Public [SSA], Debt Check* [TOP/FMS], List 

of Excluded Individuals and Entities-LEIE [HHS], Excluded Parties 

List – Public, Office of Foreign Assets Control (OFAC) [Treasury], and 

Access to the Work Number, for possible improper matches. Improper 

payments identified through this process are referred to appropriate 

offices to initiate the recapture process. 

CNCS began using the DNP business rules for vendor and member 

payments and will begin the testing phase using the Continuous 

Monitoring Segment (CMS) with its first program in early FY 2016. CNCS 

also expects to incorporate business rules for other various types of data, 

such as grants, member payroll, and vendor lists to facilitate continuous 

batch monitoring. In addition, CNCS is attempting to automate the use of 

DNP matching with its data source systems. CNCS continues to resolve 

possible matches between its payment files and DNP data base matches 

based on the current CNCS DNP business rules and actively compares 

various types of CNCS data (such as, grantees, vendors, members, 

employees) against the DNP single online portal.
Financial Statements Other Information | PART IV | PART II 129

Table 1. Improper Payment Reduction Outlook (dollars in millions)

Program 

or Activity

PY

Outlays

PY

IP %

PY

IP $

CY Outlays CY IP % CY

IP $

CY

Over 

payment $

CY

Under 

payment $

CY+1

Est. Outlays

CY+1

IP %

CY+1

IP $

CY+2

Est. Outlays

CY+2

IP %

CY+2

IP $

CY+3

Est. Outlays

CY+3

IP %

CY+3

IP $

AmeriCorps $303.51 4.98% $12.39 $222.40 6.5% $14.50 $14.50 0 $425.00 4.5% $19.13 $425.00 2.5% $10.63 $425.00 .5% $2.13 

FGP n/c* n/c n/c 80.17 n/c n/c n/c n/c 108.00 n/c n/c 108.00 n/c n/c 108.00 n/c n/c 

RSVP n/c n/c n/c 43.26 n/c n/c n/c n/c 49.00 n/c n/c 49.00 n/c n/c 49.00 n/c n/c 

TOTAL $303.51 4.98% $12.39 $345.83 6.5% $14.50 $14.50 0 $582.00 4.5% $19.13 $582.00 2.5% $10.63 $582.00 .5% $2.13 

*n/c - not completed

Reason for Improper Payment

AmeriCorps State and National RSVP FGP Total

Overpayments Underpayments Overpayments Underpayments Overpayments Underpayments

Program Design or Structure Issues $1.0 – – – – – $1.0

Inability to Authenticate Eligibility – – – – – – –

Failure to Verify

Death Data – – – – – – –

Financial Data – – – – – – –

Excluded Party Data – – – – – – –

Prisoner Data – – – – – – –

Other Eligibility Data – – – – – – –

Administrative or Process Error 

Made by:

Federal Agency – – – – – – –

State or Local Agency – – – – – – –

Other Party – – – – – – –

Medical Necessity – – – – – – –

Insufficient Documentation to Determine $13.5 – – – – _ $13.5

Other Reason – – – – – _ _

Total $14.5 n/a n/c n/c n/c n/c $14.5

Table 2. Improper Payment Root Cause Category Matrix (dollars in millions)
Financial Statements | PART II 130

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Financial Statements | PART II 131

Table 3. Payment Recapture Audit Reporting

Program or Activity Type of 

Payment 

(contract, 

grant, benefit, 

loan, or other)

Amount 

Subject to 

Review for CY

Reporting

Actual Amount 

Reviewed 

and Reported 

(CY)

Amount 

Identified 

for Recovery 

(CY)

Amount 

Recovered (CY)

% of Amount 

Recovered 

out of Amount 

Identified 

(CY)

Amount Outstanding (CY)% of Amount 

Outstanding 

out of 

Amount 

Identified (CY)

Amount 

Determined Not 

to be 

Collectable 

(CY)

% of Amount 

Determined 

Not to be 

Collectable 

out of Amount 

Identified 

(CY)

Amounts 

Identified 

for Recovery 

(PYs)

Amounts 

Recovered 

(PYs)

Cumulative 

Amounts 

Identified 

for Recovery 

(CY + PYs)

Cumulative 

Amounts 

Recovered 

(CY + PYs)

Cumulative 

Amounts 

Outstanding 

(CY+PYs)

Cumulative 

Amounts 

Determined Not 

to be 

Collectable 

(CY+PYs)

AmeriCorps 

 State and National n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c

RSVP n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c

FGP n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c n/c

Table 4. Status of Internal Controls

Internal Control Standards AmeriCorps State and National RSVP Foster Grandparent

Control Environment 3 3 3

Risk Assessment 3 3 3

Control Activities 3 3 3

Information and Communication 3 3 3

Monitoring 3 3 3

Legend: 

4 = Sufficient controls are in place to prevent IPs

3 = Controls are in place to prevent IPs but there is room for improvement

2 = Minimal controls are in place to prevent IPs

1 = Controls are not in place to prevent IP
Financial Statements | PART II 132

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