FY 2016 Agency Financial Report 

11/15/2016 
Contents 

How to Serve .............................................................................................................................................. 2

How this Report Is Organized..................................................................................................................... 2

Section I: Management’s Discussion and Analysis....................................................................................... 3

Message from the Chief Executive Officer................................................................................................. 4

Agency Mission and Overview................................................................................................................... 6

Strategic Priorities..................................................................................................................................... 15

Agency Accomplishments........................................................................................................................ 17

Program Mission Performance ................................................................................................................. 21

Agency Management Performance........................................................................................................... 45

Analysis of Entity’s Systems, Control and Legal Compliance ................................................................. 49

Analysis of Financial Statements and Stewardship Information............................................................... 54

Section II: Financial Section........................................................................................................................ 60

Part 1 Message from the Chief Financial Officer ..................................................................................... 61

Part 2 Financial Statements and Footnotes............................................................................................... 62

Part 3 Independent Auditor’s Report ........................................................................................................ 98

Part 4 Management’s Response ................................................................................................................ 99

Section III: Other Information ................................................................................................................... 100

Donations and Contributions .................................................................................................................. 101

National Service Trust Fund Status Report............................................................................................. 104

Detailed Summary of Management Assurances..................................................................................... 135

Improper Payments................................................................................................................................. 136
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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. 

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 major agency and program performance 

accomplishments. This section also provides summary financial highlights and internal control 

assurances. 

Section II – Financial Statements 

Section II provides the agency’s financial details, including audited financial statements and 

footnotes, OIG report cover, OIG transmittal, as well as 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 III – Other Information 

Section III 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 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. 

 
Section I: Management’s Discussion and Analysis
 

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Message from the Chief Executive Officer 

For nearly a quarter century, the Corporation for National and Community Service has tapped our 

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

Working hand in hand with thousands of local partners, CNCS programs improve lives, expand 

opportunity, strengthen communities, and engage Americans in solving tough problems. 

I am pleased to present our fiscal year 2016 (FY 2016) Agency Financial Report. This report 

demonstrates our continued commitment to strong performance, focused investments, 

accountability, and management excellence. 

This past year, CNCS engaged millions of Americans of all ages and backgrounds in resultsdriven 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. 

Driving Impact and Innovation 

This past year, we continued to implement the Edward M. Kennedy Serve America Act’s focus 

on six priority areas: disaster services, economic opportunity, education, environmental 

stewardship, healthy futures, and veterans and military families. 

Our 324,000 Senior Corps and AmeriCorps members tackled pressing issues, from preventing 

opioid abuse in Eastern Kentucky and addressing the Flint water emergency to supporting tribal 

communities and responding to disasters across the nation. 

Our Social Innovation Fund (SIF) continued to find what works and make it work for more 

people – expanding evidence-based programs addressing tough challenges like chronic 

unemployment, systemic homelessness, and mental health problems. In six years, the SIF has 

leveraged more than $625 million in non-federal dollars to support 458 programs and impact the 

lives of more than 700,000 individuals. 

Through performance measures, research, and evaluation, we continue to use data and evidence 

in decision-making and to demonstrate our impact on key challenges. Competition is a 

fundamental value that we are using to drive funds to the highest-quality, highest-value 

programs. 

Expanding Partnerships and Local Control 

National service is a model of public-private partnership. Each year, our programs generate more 

than $1.2 billion in outside resources from businesses, foundations, and other sources – more 

than the federal appropriation. This local investment strengthens community impact, increases 

the return on taxpayer dollars, and demonstrates strong confidence in our programs’ abilities to 

deliver results. 

Governors are key partners in delivering national service, and in FY 2016 we increased our 

investment in Governor-appointed State Service Commissions. We granted more than $6 million 

to State Commissions to expand their capacity to provide training and technical assistance to 

AmeriCorps grantees, and awarded grants to 22 State Commissions to develop programs to 

address the opioid epidemic and civil unrest in communities. 
Page    5

In FY 2016, we continued to work closely with local elected officials. A record 3,539 mayors, 

county, and tribal leaders participated in our annual recognition day to highlight the impact of 

national service and thank Senior Corps and AmeriCorps members. Together, these officials 

represent more than 178 million Americans—more than half of the U.S. population. 

Expanding Economic Opportunity 

In FY 2016, we continued our focus on expanding economic opportunity by tutoring students in 

low-performing schools, educating students for jobs of the 21st century, connecting returning 

veterans to employment, helping seniors live independently, rebuilding communities after 

disasters, and more. 

CNCS programs also expanded economic opportunity for service participants, by helping them 

graduate from high school, gain career skills, pay for higher education, and find work. More than 

400 employers representing 2.4 million jobs in the public, private, and nonprofit sectors have 

become Employers of National Service, recognizing the contributions and unique skills of the 

more than one million men and women who have served in AmeriCorps and 200,000 individuals 

who have served with the Peace Corps. 

Managing for Results and Accountability 

CNCS has a deep commitment to ensuring the highest levels of accountability. In FY 2016, we 

maintained our unmodified audit opinion for the 17th consecutive year. We also strengthened 

oversight systems, monitoring protocols, and grantee training; hired a Chief Risk Officer; and 

initiated an enterprise-wide approach to risk management to achieve higher levels of performance 

and accountability. 

In the spirit of continuous improvement, we are taking additional steps to strengthen our 

oversight and monitoring practices as part of our larger focus on using federal funds more 

effectively to ensure compliance, measure performance, and maximize our impact. 

National Service Works for America 

Service and social innovation have always been a vital part of the American character. For five 

decades, Administrations of both parties have invested in national service to tap the ingenuity and 

can-do spirit of the American people. 

Our programs empower citizens to solve problems. They bolster the institutions of civil society. 

They expand opportunity through hard work and personal responsibility. They strengthen our 

communities. And they unite us as a nation. 

We look forward to building on this strong foundation and creating more opportunities for 

Americans to serve their communities. 

Warmest Regards, 

Wendy Spencer 

Chief Executive Officer 
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Agency Mission and Overview 
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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 – people 

turning toward problems instead of away and working together to find community solutions. 

Since its creation more than two decades ago, the Corporation for National and Community 

Service (CNCS) has led the nation’s efforts to engage citizens in solving problems in their 

communities. Working hand in hand with thousands of local partners, CNCS’s mission is to 

improve lives, strengthen communities, and foster civic participation through service and 

volunteerism. 

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 wellbeing 

• Preserving the nation’s parks and public lands. 

Through AmeriCorps and Senior Corps, CNCS directly engages 324,000 Americans in intensive 

service each year at more than 50,000 locations across the country, from large cities to small 

towns to rural areas. These dedicated Americans serve in tough conditions to meet local needs, all 

while recruiting millions of other volunteers to serve alongside them and multiply their impact. 

As they make a difference the lives of others, national service members also improve their own 

lives - by learning new career skills, earning college scholarships, experiencing positive health 

benefits, and connecting with their community. 

For example, results of the AmeriCorps member exit survey1

 indicate the following: 

• 94 percent of exiting members felt they had made a difference in the life of at least one 

person 

• 82 percent stated they were more likely to volunteer for a cause or issues they care about 

• 88 percent felt their experience was worthwhile in terms of furthering their professional 

goals and endeavors, with 83 percent describing their AmeriCorps service as a defining 

professional experience 

• 86 percent stated they would recommend participating in AmeriCorps to a good friend or 

family member 

Research from the randomized controlled trial of Experience Corps confirms the various health 

benefits of volunteering for older adults. Publications may be found on the National Institutes of 

1 The member exit survey is administered to all members at the time they exit their service term for all   

   AmeriCorps programs. Members have 60 days before and 180 days after their service end date, to complete  

   the survey. The data reported here covers the period between April 30, 2015 and February 27, 2016. The  

   survey response rate for this time period is 60 percent. The survey may be found at  

   http://www.nationalservice.gov/impact‐our‐nation/evidence‐exchange/americorps‐member‐exit‐survey.  
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Health (NIH) website.2 NIH recently convened a meeting (What Was Learned from the 

Experience Corps Evaluations, and Directions for Future Research on Civic and Social 

Engagement) to discuss more recent findings to be published soon. 

In addition to its national service programs, the CNCS Social Innovation Fund improves the lives 

of people in low-income communities by mobilizing public and private resources to replicate and 

scale promising and evidence-based solutions in three priority areas of need: economic 

opportunity, youth development, and healthy futures. 

Findings from the National Assessment of the SIF Classic Program confirmed that grantees 

adopted evidence-based grant making strategies to ensure that effective community solutions 

were tested and scaled. SIF grantees changed their grant making practices more and faster 

compared to other, similar grant makers. SIF grantees reported that the SIF program was 

instrumental in bringing about these changes.3 

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. In FY 2016: 

 CNCS and the U.S. Census Bureau revised the volunteering and civic engagement Current 

Population Survey supplements to improve the quality of the nation’s data on civic 

participation. 

 CNCS funded seven universities to conduct research that will advance the knowledge base on 

volunteering. These studies examine the role of service and volunteering in creating social 

and economic benefits for individuals, organizations and communities. 

 CNCS programs incorporated evidence and evaluation into their grant making practices and 

operational procedures. 

Specific research and evaluation reports may be found in CNCS’s on-line repository, the 

Evidence Exchange. 4 

Partnerships 

National service is a public-private partnership that recognizes no one sector can meet our 

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. 

2 https://search.nih.gov/search?utf8=%E2%9C%93&affiliate=nih&query=experience+corps&commit=Search  

3 http://www.nationalservice.gov/impact‐our‐nation/evidence‐exchange/SIF‐Classic‐National‐Assessment

4 http://www.nationalservice.gov/impact‐our‐nation/evidence‐exchange
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As the nation’s largest grant-maker for community transformation through service, volunteering 

and social innovation, CNCS supports thousands of organizations, including schools, universities, 

food banks, homeless shelters, health clinics, youth centers, veteran’s service facilities, hospitals, 

and other groups. CNCS’s programs help these organizations expand their reach and impact by 

providing an infusion of human capital – trained and passionate AmeriCorps members and 

Senior Corps volunteers who can provide sustained service and mobilize other volunteers to 

strengthen community impact. Through the SIF, CNCS provides financial capital to grow and 

evaluate programs that work. 

Another benefit for CNCS grantees and the communities they serve is the significant amount of 

cash and in-kind resources leveraged by the modest federal investment. Each year, CNCS, its 

grantees, and project sponsors generate more than $1.2 billion in outside resources from 

businesses, foundations, and other sources – more than the agency’s federal appropriation. Some 

of the nation’s largest companies provide matching support, along with hundreds of small 

businesses, community foundations, and local agencies. This local investment strengthens 

community impact, increases the return on taxpayer dollars, and demonstrates great confidence in 

the ability of our programs to deliver results. 

In addition to collaborating with nonprofit organizations across the country, CNCS also works 

with federal, state, and local government to engage citizens 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, county officials, and tribal leaders 

across the country to support local efforts to engage citizens in addressing community challenges. 

On the federal level, CNCS in recent years has developed innovative partnerships with other 

agencies to meet critical challenges and expand opportunities for those who serve, including: 

	 FEMA (Federal Emergency Management Agency) Corps, a unit of the AmeriCorps National 

Civilian Community Corps (NCCC), strengthens the nation’s disaster capacity, prepares 

young people for emergency management careers, and saves significant taxpayer dollars. 

 School Turnaround AmeriCorps, a partnership between the U.S. Department of Education 

and AmeriCorps, brings hundreds of new AmeriCorps members into some of the nation’s 

lowest performing schools to boost student academic achievement, attendance, high school 

graduation rates, and college and career readiness. Key findings of the national 

implementation evaluation concluded in FY16 include5

: 

o	 Stakeholders in the majority of School Turnaround AmeriCorps program schools 

perceived that AmeriCorps services support turnaround efforts by offering helpful 

support, serving as partners in improving student outcomes, and providing activities 

frequently enough to be valuable. 

o	 Case study findings demonstrate how the program helps to build school capacity, 

leverages resources to increase services for students, uses AmeriCorps members to 

review student data, supports classroom teachers’ efforts, and also contributed to 

some schools’ success in exiting turnaround status. 

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

AmeriCorps service opportunities that address critical challenges, including: 

5 http://www.nationalservice.gov/impact‐our‐nation/evidence‐exchange/School‐Turnaround‐AmeriCorps
Page    10

	 Justice AmeriCorps, a partnership between CNCS and the Department of Justice that engages 

approximately 100 lawyers and paralegals annually as AmeriCorps members to provide legal 

services to unaccompanied immigrant children. 

	 Resilience AmeriCorps, a partnership with the National Oceanic and Atmospheric 

Administration, The Rockefeller Foundation, and Cities of Service formed to engage 

AmeriCorps VISTA members in helping communities plan and implement efforts to become 

more resilient to the impacts of extreme weather, disasters, and climate effects. 

	 ServiceWorks, a three-year project created to help low-income youth develop the skills they 

need to prepare for college and careers. Through this collaboration between AmeriCorps, 

Points of Light, and the Citi Foundation, up to 225 AmeriCorps members engage youth age 

16-24 in a volunteer response effort in 10 cities. 

	 Youth Opportunity AmeriCorps, a partnership with the Department of Justice’s Office of 

Juvenile Justice and Delinquency Prevention that enrolls disconnected youth in national 

service and provide them with a mentor. 

	 The Financial Opportunity Corps, a partnership with Bank of America and Points of Light, 

engages AmeriCorps VISTAs in bringing financial coaching to 10 communities around the 

nation. 

	 Elder Justice AmeriCorps, a two-year program with Department of Justice’s Office of 

Victims of Crimes and Elder Justice Initiative, which engages 300 AmeriCorps members to 

provide legal assistance and support services to victims of elder abuse, neglect, and 

exploitation, and to promote pro bono capacity building in the field. 

CNCS is continuing to work with other federal agencies and the private sector to develop 

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

opportunity for those who serve. 

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 supporting economic independence. 

National service is also a pathway to education and employment for those who serve. 

AmeriCorps provides members with valuable skills, leadership abilities, and experience to 

jumpstart their careers. In addition to gaining valuable experience to help them find 

employment, AmeriCorps alumni have earned more than $3 billion in Segal AmeriCorps 

Education Awards to help them pay for college or repay student loans since 1993. 

Through our Employers of National Service initiative, CNCS is recognizing the contributions 

and unique skills of the more than 1 million men and women who have served in AmeriCorps 

and the more than 200,000 individuals who have volunteered with the Peace Corps. More 

than 400 employers representing 2.4 million jobs in the public, private, and nonprofit sectors 

have joined this effort to recruit and hire Peace Corps and AmeriCorps alums. 
Page    11

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 non-volunteers. This link was stable across socioeconomic variables such as gender, 

age, ethnicity, geographical area, or 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 improve their own 

employment future. 

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

service can provide immediate benefits to the community and significant long-term benefits 

to service recipients and those who serve. 

Efficiency and Accountability 

CNCS is committed to increasing efficiency in its program and financial operations, streamlining 

processes, reducing burdens, and supporting grantees and project sponsors in achieving their 

objectives. Among other activities, CNCS is strengthening IT systems to enhance efficiencies, 

enable program effectiveness, improve accountability, and provide effective system security. 

Another priority is ensuring that financial and grant management systems and policies support 

CNCS’s business infrastructure so that the agency can meet its goals and objectives. 

In recent years, CNCS has taken multiple steps to strengthen its grants monitoring practices, 

including improved training and communication with staff, grantees, and participants; better use 

of financial data to assess grantee risk; quarterly reviews of Single Audit results; regular 

reviews of grantee drawdowns; increased controls on fixed-amount grants; and continued 

refinements to our monitoring tools. 

In the spirit of continuous improvement, the agency is implementing additional steps to increase 

the effectiveness of CNCS’s grants monitoring. In FY 2016 CNCS hired a highly qualified 

Chief Risk Officer, one of the few such positions within the federal government. This executive 

leads an office responsible for implementing enterprise risk management, and improving riskbased grants monitoring and overall agency internal controls. Other grants monitoring reforms 

already underway include reviewing and validating the agency’s grantee risk model, updating 

its grants management IT system, benchmarking the model and monitoring processes against 

other similar grant making agencies, and evaluating innovative ways to identify issues more 

efficiently. 
Page    12

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. 

This authority was expanded in 2009 with the passage of the Edward M. Kennedy Serve America 

Act, which amended the original National and Community Service Act (1990) and the Domestic 

Volunteer Service Act (1973). Under this current authority CNCS manages the following major 

programs: 

 AmeriCorps, including AmeriCorps State and National, AmeriCorps VISTA, and 

AmeriCorps National Civilian Community Corps (NCCC) 

 State Service Commission Support Grants 

 Senior Corps 

 Social Innovation Fund 

 Volunteer Generation Fund 

 Martin Luther King Jr. National Day of Service, the September 11th National Day of 

Service and Remembrance, and other Innovation and Demonstration programming 

 Evaluation 

More on each program can be found later in this report. 
Page    13

Organizational Structure 

Headquartered in Washington, DC, CNCS is an independent federal agency with a Board of 

Directors, Chief Executive Officer (CEO), and Inspector General – all of whom are appointed by 

the President. 

The CEO provides overall organizational management for the agency’s programs and operations, 

including more than 600 employees who work throughout the United States and its territories. 

The Board of Directors works closely with the CEO to set the direction for CNCS, advises the 

President and Congress concerning developments in national and community service that merit 

their attention, and conducts an annual evaluation of the CEO. 

Figure 1. CNCS Organizational Chart 
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Figure 2. CNCS Offices 
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Strategic Priorities 
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CNCS is currently operating under its 2011-2015 Strategic Plan framework. In accordance with federal 

guidance the agency will update its plan in FY 2017 to align with incoming Presidential Administration 

priorities. 

For FY 2016, CNCS received $1.095 billion in funding that it used to focus on the four goals below. 

Major program results aligned to these priorities are presented later in this report.6 

 

Increase the impact of

national service on

community needs in

communities served by

CNCS‐supported

programs

Strengthen national

service so that

participants engaged in

CNCS‐supported

programs consistently

find opportunity,

satisfaction, and

meaning

Maximize the value we

add to grantees,

partners and

participants

Fortify management

operations and sustain

a capable, responsive,

and accountable

organization

Focus Areas: Disaster Services, Economic Opportunity, Education, Healthy Futures, Environmental

Stewardship, Veterans and Military Families

1 2 3

Mission Statement: CNCS improves lives, strengthens communities,

and fosters civic engagement through service and volunteering

4

6 Specific priority measures can be found in CNCS’s budget and strategic plan located at

http://www.nationalservice.gov.
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Agency Accomplishments 
Page    18

In FY 2016, CNCS continued to provide targeted, critical support through its national network 

of State Service Commissions, grantees, and partners, to deliver services to communities 

throughout the country. 

CNCS’s investment led to important accomplishment in the agency’s priority focus areas. A 

partial sample of these accomplishments is listed below, grouped by goals established in the 

agency’s strategic plan. 

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

by CNCS-supported programs 

	 Engaged approximately 80,000 AmeriCorps members and nearly 244,000 Senior Corps 

volunteers in results-driven service to strengthen education, support veterans and military 

families, help communities recover from disasters, expand economic opportunity, preserve 

the environment, provide health services, and more.7 

	 Continued to implement new public-private and interagency partnerships such as Resilience 

AmeriCorps and Elder Justice AmeriCorps to engage more Americans in meeting national 

priorities and expanding educational and economic opportunity for those who serve. 

	 Awarded the sixth year of funding for the Social Innovation Fund (SIF) to experienced grantmakers with strong track records of success in expanding the impact of high-performing 

organizations and improving the lives of people in low-income communities. As part of SIF, 

awarded three new Pay for Success grants, which provide assistance to projects that seek to 

further align public funding with outcomes. 

	 Provided critical support to Americans affected by multiple natural and man-made disasters, 

including direct assistance to homeowners in the cleanup and gutting of their homes, 

volunteer coordination, shelter operations, damage assessments, and documentation of 

donated goods and volunteer hours that may be used for the state’s cost share for FEMA 

grants. 

	 Continued support for 10 Operation AmeriCorps grants to help tribal and local leaders 

address their community’s most pressing local challenges. In this program, initiated in the 

summer of 2014, tribal and local leaders identified a high-priority challenge for AmeriCorps 

members to address in a relatively short period of time. Unlike other CNCS programs, 

applicants were able to request AmeriCorps State and National, AmeriCorps VISTA, and 

AmeriCorps NCCC resources in a single application. 

	 Continued partnerships to support community solutions including the Shaping Our 

Appalachian Region (SOAR) initiative to improve the economy and quality of life in rural 

Eastern Kentucky, the AmeriCorps Urban Safety Corps to reduce crime and blight in Detroit, 

and health and educational services to support families and individuals affected by the Flint 

water emergency. 

                                                                 7 Performance data are estimated because CNCS will not finish validating FY 2016 grantee reports until the    
 

  end of Calendar Year 2016. The AmeriCorps count includes an estimated 600 FEMA Corps members.
   

  Updated performance information will be provided where available in CNCS’s FY 2018 Congressional Budget
   

  Justification, which will be released in early 2017.
   
Page    19

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

programs consistently find opportunity, satisfaction, and meaning 

	 Continued support for Employers of National Service, an initiative to recognize the valuable 

skills and experience gained by AmeriCorps and Peace Corps alumni and provide 

opportunities for them to apply their skills in the workplace. Employers of National Service 

connects national service alumni with leading employers to create recruitment, hiring, and 

advancement opportunities. More than 400 companies, nonprofits, and public agencies 

representing 2.4 million jobs have signed on as Employers of National Service since the 

initiative launched in September 2014, including Disney, Comcast, CSX, Delta Airlines, 

Miami-Dade County Public Schools, the cities of Philadelphia and Nashville, and the states 

of Montana and Virginia. 

	 Continued national Call to Service initiatives which engaged hundreds of thousands of 

Americans in projects on the Dr. Martin Luther King Jr. Day of Service and the September 

11th National Day of Service and Remembrance, with many focused on supporting veterans, 

soldiers, and military families. 

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

	 Through the funding of AmeriCorps programs across the nation, established an infrastructure 

that recruited and managed millions of community volunteers to multiply the impact of 

national service participants and strengthen nonprofit and faith-based organizations across the 

country. AmeriCorps VISTA members raised an estimated $200 million in cash and in-kind 

resources in support of anti-poverty programs. 

	 Expanded the use of competition to increase impact, including a new competition for Elder 

Justice AmeriCorps and continued competition for regional training events, School 

Turnaround AmeriCorps, and the Retired Senior Volunteer Program (RSVP) Senior Corps 

program. 

	 Provided State Service Commissions with new Commission Investment Funds to expand 

their capacity to improve service delivery by forging new collaborations and partnerships, 

offering training and technical assistance to grantees, and developing new skills and 

knowledge to help increase community impact. 

	 Awarded Program Development grants to 22 State Commissions to support the development 

of AmeriCorps programs addressing the opioid and prescription drug abuse crisis and civil 

unrest in communities. 

	 Strengthened relationships with governors, mayors, county, and tribal elected officials across 

the country. These officials are important partners in identifying local needs and ensuring 

national service resources are effectively meeting those needs. More than 3,500 mayors and 

county leaders representing 178 million Americans participated in the 2016 Mayor and 

County Recognition Day for National Service. 

	 Strengthened volunteer recruitment and management practices in 17 states through the 

Volunteer Generation Fund, which supported the recruitment of thousands of volunteers in 

FY 2016. 
Page    20

                                                                

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

organization 

 Created an Office of Chief Risk Officer to coordinate enterprise risk management initiatives. 

 Began implementation of a comprehensive risk identification, assessment, and prioritization 

effort across the agency to help make better decisions that reduce mission uncertainty. 

 Continued to strengthen the agency’s Internal Controls with a specific focus on grant 

monitoring and Information Technology assessment. 

 Completed the first phase of CNCS’s grant system modernization with enhanced grant 

application features expected to be available to agency staff and awardees in FY 2017. 

 Received a 17th consecutive unmodified audit opinion. 

The following sections provide partial results by major program, including performance measures 

where noted.8 

 

8 Program results contribute to agency Strategic Goals 1‐3. The final section regarding agency operations reflects priority measures  

  for CNCS’s Strategic Goal 4.

   FY 2016 results information provided in the performance section of each program narrative are estimated because CNCS will not  

   finish validating FY 2016 grantee reports until the end of Calendar Year 2016.  Updated performance information will be provided     

   in CNCS’s FY 2018 Budget to Congress in early Calendar Year 2017.
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Program Mission Performance 
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AmeriCorps State and National 

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

of members in intense impact-oriented service in every state and territory. These AmeriCorps 

members have dedicated millions of hours of service in communities across the nation helping to 

solve problems and expand economic opportunity through activities such as: tutoring, disaster 

response, helping veterans reintegrate into civilian life, and more. 

Performance 

In FY 2016, AmeriCorps State and National continued to promote effective and efficient 

solutions to social challenges by using a grantmaking process that selected the strongest service 

models, taking into account the level of evidence for each intervention. This selection includes 18 

tribal grantees with more than $3 million in federal funds to implement programs engaging an 

estimated 260 AmeriCorps members. In addition, four tribal applicants were awarded planning 

grants. The goal of supporting veterans and military families has been actualized by supporting 

63 programs with more than $11.4 million and an estimated 2,149 members. By leveraging these 

strong approaches, and engaging more than 68,400 members, AmeriCorps projects are projected 

to achieve the following results. 

FY 2015 FY 2016 

Measure9 Actual10 Estimated 

Number of students showing improved academic 

performance 356,000 360,000 

Number of students demonstrating improved 

academic engagement 130,000 152,000 

Number of veterans, veterans' family members, 

family members of active-duty military, and 

military service members served 42,000 32,000 

Number of individuals receiving disaster 

preparedness services 370,000 364,000 

Number of at-risk acres and miles of public 

land improved 345,000 256,000 

Number of economically-disadvantaged people 

receiving housing assistance 38,000 25,000 

Number of individuals that gained access to 

food resources 69,000 67,000 

Percent of grantees that achieved at least a 

preliminary level of evidence11 67% 66% 

9

  

	 All whole numbers rounded to the nearest thousand. The distribution of measures used across ACSN’s  

    portfolio is dependent on which programs are funded and which performance measures they believe best   

    capture the outcomes of their program models. As grantees change and/or they change what they are  

    measuring, actual results can vary from year to year, such as the approximately 90,000 acres reduction of  

    land improved between FY 2015 and FY 2016 (est.). Not all results across AmeriCorps’ entire grant portfolio  

    are represented here.   10 CNCS is constantly strengthening its quality control practices and, as a result, identified discrepancies (such as  

    one instance of significant grantee over‐reporting) in previously‐reported FY 2014 and FY 2015 data. The data  

    shown here reflects corrected FY 2015 information. 11 Level of evidence is calculated only for competitive applicants. The FY 2015 level represents two‐thirds of the    

    competitive portfolio; 2016 represents the entire competitive portfolio.
Page    23

Successful Project Examples 

The following is a selection of recent AmeriCorps projects that have made an important 

difference in the communities they serve. 

Economic Opportunity 

Habitat for Humanity International (HFH), Multiple Locations 

Habitat International conducted a large-scale, multi-site quasi-experimental design (QED) 

evaluation that encompassed almost all 1,400 HFH affiliates across all 50 states. A comparison 

group was created by matching affiliate sites that hosted AmeriCorps members with affiliate sites 

that did not host AmeriCorps members on characteristics such as budget, similar staffing, 

fundraising, and service provision. This rigorous, high-quality study found that AmeriCorps 

members increased HFH host site capacity to build more homes and engage more volunteers 

compared to similar-size sites without AmeriCorps members. In addition, the study found that 

AmeriCorps members increased their homebuilding experience, leadership skills, project 

management skills, knowledge of service, and feeling of connection to the local community. Due 

to the large scale of this study, the results can be credibly generalized for the program model. 

Community Technology Empowerment Project, St. Paul, MN
 

St. Paul Neighborhood Network’s Community Technology Empowerment Project (CTEP)
 

Bobby Jones had zero technology skills. She felt hopeless about her future and didn’t have the 

necessary tools to be successful in her job search. Then she found CTEP, a program where 

AmeriCorps members provide technology, financial, and employment teaching and coaching to 

low-income and immigrant populations at Twin Cities community agencies. By working closely 

with a CTEP AmeriCorps member, Bobby was able to create an email account, build a substantial 

resume, complete applications and apply for jobs online. Within a week of applying, Bobby had 

two interviews and was ultimately offered both positions. For the first time ever, she had 

leveraging power and the opportunity to choose. Today, Bobby is living a stable life working at 

two positions by choice. Over the past year, 758 other program participants have secured 

employment after receiving help from CTEP AmeriCorps members. 

A 2015 quasi-experimental study using a survey and comparison group found a noteworthy 

increase of 15 percentage points in the employment rate among the adult learners in the CTEP 

program who were surveyed. 

Education 

City Year, Multiple Locations 

A 2015 quasi-experimental comparison group study measured the impact of City Year’s “Whole 

School Whole Child” model by analyzing publicly available state assessment data from more 

than 600 similar schools in high-poverty urban settings in 22 cities, of which 150 had partnered 

with City Year and 460 had had not. To identify comparison schools, Policy Studies Associates 

used propensity score matching that identified schools that were similar in terms of baseline state 

standardized test performance data, enrollment, and demographic information, including the 

percentage of English-language learners and economically disadvantaged students. The study 

found that schools that partnered with City Year were two to three times more likely to improve 

their proficiency rates in English Language Arts and math as compared with similar schools that 

did not have City Year. City Year AmeriCorps members promote academic achievement and 

foster student engagement in and out of the classroom at more than 290 schools in 27 urban 

communities across the United States 
Page    24

Child Abuse Prevention Council, Sacramento County, CA 

The Child Abuse Prevention Council program leverages AmeriCorps members to help with 

activities such as conducting home visits and child mentoring with the goal of preventing child 

abuse, neglect, and abandonment. Recently the Child Abuse Prevention Council conducted an 

external evaluation of the Birth and Beyond Home Visitation (HV) Program. The QED evaluation 

keenly focused on three program outcomes: changes in parent education, changes in parenting 

and parent-child attitudes, and reduction of Child Protective Services (CPS) referral. There were 

496 HV program participants and 985 comparison parents, the latter being determined by 

propensity score matching method. 

Analysis of the HV and comparison groups found significant differences between the two groups 

in all three outcomes: positive increases in parent education and knowledge; positive increases in 

parenting and parent-child attitudes; and a reduction in recidivism of CPS referrals. A Cox 

regression analysis showed a statistically significant difference between parents receiving HV 

services and those who did not. Being in the HV program group decreased the probability of 

having a substantiated referral by 41 percent and the probability of having any CPS referral by 18 

percent. 
Page    25

AmeriCorps VISTA 

AmeriCorps VISTA was created to support efforts to reduce poverty and build economic 

opportunity throughout the country. Established and authorized in 1964 as Volunteers in Service 

to America, the program became part of the AmeriCorps network of programs in 1993. 

AmeriCorps VISTA primarily builds the capacity of organizations to alleviate poverty by 

engaging individuals age 18 and older in a year of full-time service activities. 

Performance 

In FY 2016, CNCS funded more than 8,000 AmeriCorps VISTA members who helped 

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

• Economic Opportunity (36%) 

• Education (18%) 

• Healthy Futures (23%)
 

• Other (23%) 

Successful Project Examples 

The following section provides additional context for how AmeriCorps VISTA projects advanced 

CNCS’s priority strategic objectives in FY 2016, and includes examples of recent project success 

based on currently available data. 

 

Economic Opportunity 

In FY 2016, more than 2,600 project sites were approved to receive capacity-building assistance 

from AmeriCorps VISTA members in the Economic Opportunity focus area. Their primary 

strategic objectives under Economic Opportunity are helping disadvantaged people find housing, 

obtain employment, and gain financial literacy. Some recent examples of successful programs 

follow: 

 

Journey Home, Hartford, CT 

AmeriCorps VISTA members have played an important role in helping to administer Hartford’s 

10 Year Plan to End Homelessness by serving at the organization, Journey Home. Journey Home 

is the agency responsible for the plan and addresses area homelessness through adopting 

innovative and creative strategies to combating barriers to housing and shelter. The AmeriCorps 

VISTA members serving at Journey Home assisted in the successful development and launch of 

an online Universal Housing Application, now used by 25 shelter, housing, and healthcare 

agencies in the Greater Hartford area. The Universal Housing Application allows a household 

living in a homeless shelter or other temporary living situation to submit one application to apply 

to 33 different housing programs. AmeriCorps VISTA members collaborated with Journey Home 

staff to develop and test the online application, train advocates of clients experiencing 

homelessness to submit applications, and create administrative materials to ensure the 

sustainability and evaluation of the project. The application has led to a smoother, quicker 

transition to housing for more than 3,000 individuals who experience homelessness each year in 

the Greater Hartford area. Hartford was one of the three original locations where VISTAs were 

assigned in 1965. 

Children’s Home Society of Florida, Miami and Orlando, FL 

The Children’s Home Society of Florida received a $7.3 million TECH Success grant from 

Microsoft to bring technology and job training access to foster care youth, young adults exiting 

the foster care system and to low income youth, thanks in part to the contributions of an 

AmeriCorps VISTA member. Children’s Home Society of Florida was able to successfully 

launch the Tech Success program recently in Orlando and Miami. The VISTA was responsible 
Page    26

for conducting the necessary needs assessments, completing pre-implementation surveys, 

conducting internal and external pre-implementation education and outreach, building valuable 

community partnerships, and providing the logistical support needed to successfully roll out the 

new program. Thanks to his efforts, the Southeastern (Miami) Division has a brand new “Creative 

Learning Center” with a great deal of donated state-of-the-art equipment and access to the newest 

technology. He has also recruited several volunteers to provide one-on-one instruction, group 

training, career coaching and job shadowing. All teenagers living in group homes in the Miami 

area now have access to the Creative Learning Center, and the valuable educational and 

vocational opportunities provided through Tech Success. Another VISTA member was also 

instrumental in launching Tech Success in Orlando and preparation efforts for several other CHS 

locations throughout the state. 

Education 

For FY 2016, more than 2,900 project sites were approved to receive capacity-building assistance 

from AmeriCorps VISTA members in the Education focus area. A majority of those sites focus 

on K-12 success and post-school support. Some examples of successful models follow. 

Barbara Bush Houston Literacy Foundation, Houston, TX 

The Barbara Bush Houston Literacy Foundation (BBHLF) was established in 2013 to improve the 

quality of life for Houstonians through the power of literacy. BBHLF has taken on the strategic 

role of expanding awareness of the value of literacy and building capacity throughout the 

Houston literacy provider community by mobilizing resources – funding, volunteers and services 

– to dramatically increase literacy rates among people of all ages. In 2014, BBHLF was awarded 

a grant to host five AmeriCorps VISTA members as “boots on the ground” to support the first 

three years of the plan’s implementation. 

Today, BBHLF AmeriCorps VISTA members mobilize volunteers, oversee 

communications/outreach and volunteer management technology, and cultivate diverse funders 

and stakeholders. Since 2014, with the help of the AmeriCorps VISTA members, BBHLF has 

engaged 4,818 volunteers who have given 33,153 hours of service for 27 Houston-area literacy 

partners. The VISTA members also increased awareness of the literacy cause, resulting in 12,500 

followers across social media channels, 1.9 million Facebook views, and 12.5 million traditional 

media views (television/print media) stemming from 15 high profile events. 

In the words of BBHLF President Julie Baker Finck: “As a new foundation formed in 2013, our 

AmeriCorps VISTA members have been instrumental in building capacity of our internal 

operations, raising awareness about the literacy cause, supporting a growing coalition of literacy 

providers across our city, and mobilizing thousands of volunteers to serve those in need.” The 

BBHLF AmeriCorps VISTA program was one of two AmeriCorps programs across the county 

that received a 2016 Excellence in AmeriCorps Programming and Service Award or “Harkin” 

Award. This award was created in 2014 to recognize extraordinary service programs and 

members in honor of Senator Tom Harkin, a tireless advocate for national service. 

Americana Community Center, Louisville, KY 

Americana Community Center’s mission is to provide a spectrum of services to the diverse 

individuals and families of the Louisville metro area, especially refugees, immigrants, and new 

Americans. Americana currently serves 5,000 individuals across Louisville and from 101 

countries. The AmeriCorps VISTA program at the Americana Community Center supports the 

family and after-school education program, which has enrolled over 200 students and 55 families 

in the past year. Participants in this program focus on after school programming, tutoring, and a 

community garden to supplement family meals. 
Page    27

In the past year, the after school and college readiness programs have been improved and 

expanded by AmeriCorps VISTA members, resulting in a 100 percent college acceptance rate for 

high school seniors participating in the program. 
Page    28

AmeriCorps NCCC 

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. As they serve 

communities, members also gain valuable life and career skills that all employers look for 

including leadership, teamwork, and problem-solving. 

Performance 

In FY 2016, AmeriCorps NCCC enrolled 1,000 members and recruited or coordinated more than 

9,900 additional volunteers in efforts to improve communities throughout the country. Through 

an innovative partnership with FEMA, AmeriCorps NCCC engaged an additional estimated 600 

young adults to serve in FEMA Corps. Throughout the fiscal year, AmeriCorps NCCC continued 

to serve in the focus areas identified in the Serve America Act: natural and other disasters, 

infrastructure improvement, environmental stewardship and conservation, urban and rural 

development, and energy conservation. 

AmeriCorps NCCC measures its service activities to represent how the program is working to 

meet community needs nationwide. Many of AmeriCorps NCCC’s projects work toward 

achieving more than just one outcome in a community. Monitoring which intended outcomes 

projects are working to address allows the program to prioritize its teams' service interventions in 

order to better direct resources to areas of priority needs as identified by states and local 

communities. 

The tables that follow illustrate NCCC’s success. The first chart shows how AmeriCorps NCCC 

is focusing projects to meet the intended outcomes of the program. Projects are the vehicle that 

AmeriCorps NCCC has to reach those intended outcomes making the measurement and tracking 

of the project towards that outcome key for strategic planning. The success and output of 

AmeriCorps NCCC’s intended outcomes are outlined in the second chart. 
Page 29

Percent of Service Projects by Intended Outcomes12

NCCC Focus Area Select NCCC Intended Community Outcomes13

Percent of Projects Working 

Towards Outcome 

FY 2014 

Actual 

FY 2015

Actual

FY 2016

Projected

Environmental 

Stewardship and 

Conservation 

Parks, natural habitats, and at-risk ecosystems preserved or protected. 35.6% 39.6% 40.0% 

Parks, natural habitats, and at-risk ecosystems enhanced. 21.1% 21.8% 25.0% 

Infrastructure 

Improvement 

Improved quality of community infrastructure. 26.7% 30.9% 35.0% 

Improved accessibility of community infrastructure. 16.5% 20.7% 16.0% 

Communities more thoroughly or quickly rebuilt after disasters. 13.5% 9.4% 18.0% 

Strengthened community’s ability to prepare for or mitigate disasters. 10.0% 10.9% 18.0% Natural and Other 

Disasters Enhanced organization capacity and capability to provide disaster 38.5% 29.2% 32.0% services. 

Medical or basic human needs met more thoroughly or efficiently. 8.3% 9.5% 19.0% 

Medical or basic human needs met more thoroughly or efficiently. 8.9% 8.6% 4.0% 

Urban and Rural 

Development 

Improved community food security or nutritional practices. 12.4% 15.4% 18.0% 

Improved access to housing. 16.3% 20.6% 16.0% 

Improved public safety and community resilience. 17.1% 26.1% 24.0% 

                                                                 12 Figures will add up to over 100% because AmeriCorps NCCC projects often fall into more than one Focus Area or  have service  

    activities aimed at contributing toward more than one intended community outcome. Service activities reported for each  

    project are collected by NCCC Members and validated by Sponsoring Organizations and CNCS staff.

  

13 NCCC's intended outcomes were adapted in consultation with the Office of Management and Budget in February 2016.  

    Figures for FY 2014 and FY 2015 have been retroactively applied. The figures in this table only represent those for selected  

    outcomes in which NCCC's efforts have been more focused.
Page    30

                                                                

 Performance Measures and associated intended outcomes 

Measure14 Intended Outcome 

FY 2013 

Actual 

FY 2014 

Actual 

FY 2015 

Actual15 

FY 2016 

Estimated 

Wildfire – suppression and 

containment 

Communities or habitats protected from 

potential fire damage. 18,435 35,331 39,089 30,500 

Communities or habitats protected from 

Wildfire - prescribed burns potential fire damage. 4,108 25,813 12,648 14,200 

Homeless assisted 16,880 16,322 13,700 15,600 

At-risk youth assisted 13,335 21,666 14,638 16,500 

Veterans assisted 3,913 5,681 2,978 3,000 

People taught environmental 

information 

Improved knowledge and understanding 

of sustainable energy practices 15,660 11,579 9,909 11,000 

Parks, natural habitats, and at-risk 

New trees planted ecosystems enhanced. 314,731 41,261 49,509 135,000 

Volunteers coordinated or recruited 74,606 24,212 24,420 41,000 

Houses constructed Improved access to housing. 641 281 197 250 

Houses weatherized/outfitted with 

energy-efficiency modifications 

Increased use and application of 

sustainable energy technology. 231 182 235 200 

Taxpayer dollars returned to 

Americans through tax preparation 

services 

Improved access to economic 

opportunities. 

21.3M $13.3M $16.5M $17M 

Enhanced organization capacity and 

Helpline calls answered capability to provide disaster services. 17,714 14,656 23,607 18,500 

Educational materials or 

preparedness kits distributed 

Strengthened community’s ability to 

prepare for or mitigate disasters. 24,773 1,240 3,830 6,000 

Enhanced organization capacity and 

Shelter sites assessed capability to provide disaster services. 141 64 1,796 700 

Successful Project Examples 

The following is a selection of recent AmeriCorps NCCC projects that have made an important 

difference in the communities they serve. 

Disaster Services 

In FY 2016, AmeriCorps NCCC responded to flooding in South Carolina, Missouri, Louisiana, 

and West Virginia. FEMA Corps teams responded to disasters throughout the country. In 

response to the Baton Rouge flooding in both March and August of this year, 92 AmeriCorps 

NCCC and FEMA Corps teams (819 members) were requested to respond 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 helping the 

14 NCCC results depend largely on the projects selected by local communities. As priorities change, so do
   

    corresponding results. For example, in the first measure, more local communities carried out wildfire  
 

    containment activities in FY 2015 compared to FY 2013, resulting in an increase of more than 20,000 such
   

    activities over this period. Over this same period, fewer communities focused on planting trees, which
   

    resulted in a decrease in approximately 265,000 of such activities.
    

15 CNCS has updated FY 2015 performance information from what was reported in the agency’s FY 2015 AFR  
 

   based on the most currently available data.
   
Page    31

affected communities begin to recover, and bridging the gap between non-profit and nongovernmental organization sector assistance to disaster survivors. 

The first 72 hours are critical in disaster response and FEMA Incident Management Assistance 

Teams often arrive in that timeframe to set up response infrastructure. AmeriCorps NCCC teams 

augment this important work to enhance effectiveness, efficiency, and capacity; which ultimately 

benefits disaster survivors. The White House has highlighted this partnership as an example of 

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

Obama’s Management Agenda. 

Natural and Other Disasters 

United Way of Genesee County, Flint, Michigan 

In response to the water crisis in Flint, an AmeriCorps NCCC team partnered with the United 

Way of Genesee County to provide relief to area citizens. The United Way of Genesee County is 

a health and human service nonprofit, serving local funded partners through programs within four 

priority areas: education, health, financial stability, and basic needs. When lead was discovered in 

Flint’s water supply, the organization’s priority became providing the citizens with clean water. 

AmeriCorps NCCC members helped transport cases of water from drop-off sites or warehouses 

to distribution points. Members also delivered water to residents who were disabled, elderly, or 

unable to pick up their own water. In total, 12,642 cases of water were delivered. The team also 

distributed water testing kits, filtration systems, and replacement filtration cartridges. Through the 

AmeriCorps NCCC team’s service, citizens of Flint were provided with fresh water for drinking, 

bathing, and cooking, reducing the risk of health issues caused by lead consumption. 
Page    32

State Service Commission Support Grants 

When Congress created CNCS in 1993, it envisioned national service as a shared federal-state 

partnership, creating a central role for governors in designing and implementing national service 

through governor-supported State Service Commissions (Commissions). This helps focus support 

at the local level. Commissions perform vital functions and are invaluable partners to CNCS. 

More than 1,000 private citizens serve as governor-appointed commissioners, leading and 

guiding national service efforts in their states by identifying local needs, directing federal and 

state resources, ensuring oversight and accountability, tracking performance and community 

impact, and leading citizen service efforts in their states and territories. 

Today, the nation’s 52 Commissions monitor approximately three-fourths of CNCS’s 

AmeriCorps grant funds. Commissions strive to be centers of excellence and laboratories of 

innovation that develop state and local solutions for state and local needs. Commissions provide 

outreach to prospective AmeriCorps grantees, develop the next generation of AmeriCorps 

programs, conduct grant competitions, provide training and technical assistance, and build the 

capacity of faith-based and community organizations seeking to operate AmeriCorps programs. 

They are uniquely well-suited to this work because they know and understand state and local 

needs. 

Performance 

In FY 2016, 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. Two recent evaluations of the Reading Corps 

model by NORC at the University of Chicago found that AmeriCorps members can produce 

significantly greater increases in student’s literacy outcomes, and that the model is highly 

replicable in multiple settings. ServeMinnesota has provided technical support for the replications 

of the Reading Corps model, which now operates in 12 states and Washington D.C., serving more 

than 40,000 students annually in nearly 1,200 preschools and elementary schools. 

Many Commissions play a leadership role in disaster services operations, working in 

partnership with state emergency management agencies, Voluntary Organizations Active in 

Disasters, and faith-based and nonprofit organizations. Twenty-five Commissions are 

included in their emergency states’ management plans as the lead for volunteer and donations 

management during times of disaster. Others are responsible for coordinating disaster 

preparedness education programming for their state, donations or provide communities with 

disaster preparedness information. Commissions work with their networks to support disaster 

preparedness, response, recovery, and mitigation in their states. 

One of CNCS’s most significant Commission successes is the AmeriCorps Urban Safety 

Corps in Detroit. CNCS partnered with Michigan’s Governor, the Michigan Community 

Service Commission, Detroit’s Mayor and Police Chief, and Wayne State University to 

mobilize AmeriCorps members and community volunteers to help increase public safety in a 

number of high-need Detroit neighborhoods. Using special crime “hotspots” maps, 

AmeriCorps members and trained volunteers carried out neighborhood patrols, home safety 
Page    33
 

 

 

assessments, board-ups of vacant homes, neighborhood cleanups, and other activities to 

increase public safety. 
Page 34

Senior Corps RSVP

RSVP engages the skills, talents, and experience of volunteers age 55 and older to meet a wide 

range of community needs. RSVP volunteers help seniors live independently in their homes, 

tutor and mentor at-risk youth, help communities recover from disasters, and expand economic 

opportunities for veterans and their families. 

Performance

In FY 2016, RSVP volunteers provided service in their communities through local organizations 

that delivered meals to the homes of isolated older adults, schools where volunteers tutor at-risk 

youths, and performed other services. The following table provides a selection of related 

performance measures. 

Measure

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Estimated

FY 2016 

Estimated

Veterans served 461,000 329,000 304,800 304,800 

Children mentored 87,000 78,000 88,800 80,800 

Adults receiving independent living 

services 610,000 797,000 605,000 605,000 

Families or caregivers receiving respite care 15,000 20,300 15,000 15,000 

Veterans serving as RSVP volunteers 21,600 20,100 19,300 19,300 

Volunteers 274,500 232,400 208,000 208,000 

Successful Project Examples 

The following is a selection of recent RSVP projects that have made an important difference in 

the communities they serve. 

Economic Opportunity 

Income Tax Preparation in Allen County, IN 

RSVP volunteers of Allen County have been returning money from Earned Income Tax Credit 

(EITC) to low and moderate income taxpayers through its Volunteer Income Tax Assistance 

(VITA) initiative. As the lead agency for the City of Fort Wayne, RSVP, in collaboration with 

IRS who trains the volunteers, certifies more than 60 volunteers annually to support the VITA 

initiative. These RSVP volunteers provide free tax services to underserved populations including 

the unemployed, underemployed, and individuals with disabilities. 

Allen County residents includes immigrants and refugees who speak more than 76 languages, so 

tax preparation services are also provided to low and moderate income individuals with limited 

English proficiency. VITA and EITC materials are translated into 5 languages (Spanish, 

Burmese-Karen, Arabic, French, and Russian) and bilingual volunteers are available to interpret 

tax preparation for these individuals. 

In 2016, 67 RSVP volunteers prepared 2,948 tax returns that resulted in $3,645,804 returned to 

Allen County residents. Tax client surveys showed that 70 percent of the clients earned less than 

$25,000 per year. RSVP of Allen County also serves as a military tax site and in 2016 served 164 

military service members. The military tax service is on-going through November 15 of each 

year. 
Page    35

Education 

Mentoring At-Risk Youth in New York City, New York 

The RSVP program sponsored by the Community Service Society of New York developed 

MentorUp as an alternative to detention programs for young people in New York who have been 

in conflict with law enforcement. As a site-based mentoring program, MentorUP focuses on 

academic and asset building and strives to increase the confidence and social skills of these young 

individuals. It pairs well-trained and highly motivated RSVP volunteers with the young people to 

help break the cycle of recidivism to create better futures for themselves. 

During the period of July 1, 2015 – June 30, 2016, the RSVP MentorUP Program mobilized 55 

RSVP volunteers who provided mentoring to 105 young people. MentorUP RSVP volunteers 

gave 2,446 hours of service. 

In October 2015, the RSVP MentorUP Program partnered with the YouthBuild Transformation 

Academy in the South Bronx to assist young people on improving their academic, career, and 

leadership skills. The RSVP volunteers provided mentoring for 30 young people related to 

specific educational goals and to prepare them for the High School Equivalency (HSE) exam. By 

June 2016, 10 of the 30 mentees passed the HSE. Two of the participants were accepted into 

college and are currently attending Adelphi University and Columbia University while three 

others who passed the test are waiting to enroll in Bronx Community College. The remaining 20 

young people and all of the mentors have returned to the program to continue working on their 

educational and career goals. Through weekly mentoring with the participants, the program 

showed immediate success and many more students are preparing for the next High School 

Equivalency Exam in 2017. 

Disaster Services 

Assisting Survivors of Forest Fires in California 

North Coast Opportunities (NCO), the RSVP sponsor in Lake County, California has mobilized 

RSVP volunteers in response to two devastating fires, the Valley Fire and the Clayton Fire. RSVP 

volunteers served at Points of Distribution (PODs) to assist with delivering supplies to survivors 

returning to the affected area. The RSVP volunteers continue to serve as Disaster Case managers, 

aid with the physical rebuilding efforts, and sorting and tracking donations and by distributing 

food. In response to the Valley Fire alone, 175 volunteers have contributed more than 7,500 hours 

of service at nine community stations. 

NCO was awarded an RSVP augmentation grant of $100,000 to aid with recovery efforts related 

to the Lake County fires. NCO estimates that a total of 500 new volunteers provided at least 

10,000 hours of assistance to approximately 6,400 individuals whose homes have been destroyed 

or damaged in FY 2016. Since the fires, more than 375 new volunteers have helped with relief 

efforts, and volunteers continue to come forward to serve. 
Page    36

Senior Corps Foster Grandparent Program 

The Foster Grandparent Program (FGP) is an intergenerational program first established in 

1965 that connects volunteers age 55 and over with opportunities to provide one-on-one 

mentoring, nurturing, and support to children with special or exceptional needs, or who are at an 

academic, social, or financial disadvantage. 

 

Performance 

In FY 2016, FGP volunteers provided service in their communities through local organizations 

that tutored children, served military families, and performed other activities. The following table 

provides a selection of important related performance measures. 

Measure 

FY 2013 

Actual 

FY 2014 

Actual 

FY 2015 

Estimated 

FY 2016 

Estimated 

Volunteers' hours served (in thousands) 23,000 23,000 21,000 21,000 

Children served 196,000 189,100 200,000 200,000 

Children of military families served 3,400 2,700 2,100 2,100 

Direct volunteers 28,250 25,190 24,000 24,000 

 Successful Project Examples 

 The following is a selection of recent Foster Grandparent projects that have made an important 

 difference in the communities they serve. 

 

 Education

 Increasing Childhood Literacy in Utah

 Weber Human Services engages 91 Foster Grandparent Volunteers in 7 school districts in 

Weber, Morgan, Davis, Box Elder, and Cache Counties in Utah. In the Ogden District, 50 

percent of third graders fall below the benchmarks in literacy and 73 percent of the students 

qualify for free or reduced-cost lunch. During the 2015-2016 school year, volunteers tutored 

1,221 children in literacy skills at least twice per week, totaling 68,202 volunteer hours. 

Teachers reported that 84 percent of the children tutored by Foster Grandparents improved their 

reading scores. Also for the same school year, according to the Dynamic Indicators of Basic 

Early Literacy Skills pre-post test scores of children tutored by Foster Grandparent Volunteers, 

45 percent of the children tutored reached the benchmark in reading. 

 Supporting Children in Detention Facilities in Maryland 

The Foster Grandparent program in Baltimore, Maryland is sponsored by the Maryland 

Department of Juvenile Services (DJS) to support children in juvenile detention facilities. 

Statewide, 23 Foster Grandparent volunteers tutor and mentor approximately 350 children ages 

12-21 years of age at the Maryland Department of Juvenile Services. These adults model 

appropriate behavior and help build up the self-esteem of the students they serve. DJS staff 

reports that the youth served by a Foster Grandparent are more respectful, not just to the adults, 

but also to their peers. Their overall classroom behavior improved and they are more focused on 

their class work. 

 
Page 37

Senior Corps Senior Companion Program

The Senior Companion Program (SCP) engages volunteers, age 55 and over, in providing inhome support to adults who have difficulty with daily living tasks. 

Performance

In FY 2016, SCP volunteers provided service in their communities through local organizations 

that provided respite care and other support to ailing adults. The following table provides a 

selection of important related performance measures. 

Measure

FY 2013 

Actual

FY 2014 

Actual

FY 2015 

Estimated

FY 2016 

Estimated

Volunteers' hours served (in thousands) 10,700 10,000 9,000 9,000

Families receiving respite care 6,900 6,650 6,200 6,200

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

food, providing transportation to 

medical appointments, etc.) 46,750 43,000 42,120 42,120

Frail, older adult veterans served 3,480 3,100 2,700 2,700

Direct volunteers 13,770 12,190 11,500 11,500

Successful Project Example 

The following is a selection of recent Senior Companion projects that have made an important 

difference in the communities they serve. 

 Health 

Independent Living in Broward County, Florida 

The Senior Companion program sponsored by Broward County, provides services to frail elderly 

adults and adults with disabilities and terminal illnesses who need extra assistance to live 

independently in their own homes. Both the volunteers and their clients benefit from the program 

which reduces isolation and prevents premature institutionalization by providing a routine visit 

that involves a variety of activities from light meal preparation, medication reminders, reading 

together, grocery shopping, and/or escorting clients to appointments. 

Between July 1, 2015, and June 30, 2016, 120 Senior Companion volunteers served 82,293 hours 

assisting 456 clients. Ninety-seven of these clients received respite service. During this period, 

the program conducted a survey of 288 of its 456 clients with 98 percent agreeing that they are 

highly satisfied with their Senior Companion services and can do more of the things that they 

need to do. Ninety-six percent indicated that they feel less lonely and isolated having a Senior 

Companion volunteer. 
Page    38

                                                                

Social Innovation Fund 

Over the past six years, the Social Innovation Fund (SIF) has combined 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 throughout the United 

States. The federal investment of $295 million has been leveraged to raise more than $600 

million in match from local, regional and national funding sources. The organizations receiving 

grants from the SIF have supported more than 1,400 local organizations in 46 states and the 

District of Columbia to address the compelling needs of approximately 700,000 children, youth 

and adults to achieve outcomes such as: 

 Increased financial stability 

 Sustainable employment 

 Access to healthcare 

 Reading proficiency 

Under its original program, SIF Classic, the experienced grantmakers receiving funds from the 

SIF not only support local nonprofits to grow the impact of their programs, but also ensure the 

rigorous evaluation of these programs to further strengthen the evidence of their effectiveness and 

also identify opportunities for improvement. Through these efforts, an impressive cadre of 

evidence-based programs is being developed for the benefit of the nonprofit sector and private 

and public funders. 

Under its Pay for Success program (PFS), the SIF is championing the use of Pay for Success as 

another tool for expanding effective programs. In Pay for Success, the government pays for the 

services provided if and only agreed-upon results are achieved, as validated by an external 

evaluator. The high-impact organizations that have received SIF PFS funds are supporting more 

than 70 projects across the country, which are assessing feasibility, developing capacity or 

actually structuring PFS transactions with the goal of maximizing the number of high-quality PFS 

projects underway in the United States. SIF is supporting the majority of active PFS projects 

underway in the United States, expanding issue areas into new and innovative fields for PFS, and 

broadening the geographies in which PFS is currently active, especially in regions including the 

Intermountain West and American South. 

The Administrative Data Pilot is the SIF’s newest program. Three organizations were selected to 

assist PFS projects across the country access administrative data in order to assess and improve 

the outcomes of interventions they are implementing. 

Performance 

Evidence 

A recent SIF report provides evidence that the program is helping grantees build their capacity to 

support effective interventions.16 For example, compared to program applicants who did not 

receive a funding award, SIF grantees conducted more rigorous evaluations and made more use 

of resulting information to improve program performance. Relatedly, an initial agency assessment 

of SIF grantees showed that nearly 20 percent of grantees increased their evidence levels after 

being awarded funding.17 

16 The SIF’s Impact on Strengthening Organizational Capacity,  

    http://www.nationalservice.gov/documents/sif‐classic‐national‐assessment/2015/sifs‐impact‐

    strengthening‐organizational‐capacity 17 Based on initial agency assessment of grantees whose evaluations are completed.
Page    39

Successful Project Examples 

The following is a selection of SIF projects that have made an important difference in the 

communities they serve. 

Economic Opportunity 

Local Initiative Support Corporation 

SIF funds programs to increase economic opportunities and financial stability for economically 

disadvantaged individuals and families. The results of independent, rigorous evaluations provide 

valuable information on how to do this effectively. The Local Initiative Support Corporation’s 

Financial Opportunity Centers (FOC) improve the financial wellbeing of low-income families by 

helping people get steady, living-wage employment, boost their credit rating and increases their 

net income and net worth. A quasi-experimental evaluation of LISC’s SIF project found that its 

FOCs increased year-round employment of its clients significantly more than the comparison 

group (21 percent vs 15 percent). 

Jobs for the Future 

The National Fund for Workforce Solutions, established by Jobs for the Future, supports the 

development of workforce partnerships to identify local workforce needs and design and 

administer programs to help low-income workers to obtain the skills needed to meet those needs. 

A quasi-experimental evaluation of its SIF project found statistically significant positive effects 

on the general employment rates of participants and that its approach was highly effective in 

improving focus industry employment, job retention, and earnings for health careers participants. 

Youth Development 

Edna McConnel Clark Foundation/Reading Partners 

SIF funds a range of programs to improve outcomes for children and youth by preparing them for 

success in school, active citizenship, productive work, and healthy and safe lives. An 

independent, randomized control trial showed that Reading Partners, funded by the Edna 

McConnell Clark Foundation (EMCF), was more effective in increasing reading proficiency of 

elementary school children than similar programs, and was half as costly as other reading 

programs offered in the same schools. Reading Partners focuses on elementary school students in 

low-income communities who are at least six months behind in reading; recruiting and using 

community volunteers to provide individualized instruction to help them master the reading 

fundamentals they need to reach grade level. AmeriCorps members are leveraged to act as 

coordinators and volunteer recruiters for Reading Partners’ in-school sites. 

 

Edna McConnel Clark Foundation/SEED DC 

SEED DC, a boarding charter school, also supported by EMCF, provides a highly supportive 

environment for students focused on academic excellence and personal development. An 

evaluation that used the random assignment of the school’s admissions lottery, found that SEED 

DC had significant, positive impacts on students’ standardized test scores and proficiency levels – 

particularly in math – in comparison with outcomes among students who did not win admission 

to SEED. 

Healthy Futures/ Access to Health Care 

AIDS United 

SIF funds programs to improve health outcomes, promote healthy lifestyles, and decrease health 

disparities that disproportionately affect low-income communities. AIDS United’s Access to Care 

Initiative (A2C) aims to increase the number of HIV positive individuals receiving care by 

supporting innovative partnerships of nonprofits, researchers and others that are improving 

individual health outcomes and strengthening local services systems. An independent, 
Page    40

                                                                

randomized control trial of A2C showed improvements in engagement in HIV medical care along 

the HIV continuum of care, including viral suppression.18 

The John A. Hartford Foundation 

The John A. Hartford Foundation is disseminating the IMPACT model of depression treatment 

through community health clinics in low-income rural areas in Wyoming, Washington, Alaska, 

Montana, and Idaho. By reducing costs for health expenditures and caregiving and increasing 

employment income of those affected by depression, they aim to increase economic well-being 

for individuals served. The rigorous evaluation underway is determining the impact of the 

program on depression as well as on patient healthcare costs. 

 

18 According to NIH, viral suppression is defined as when antiretroviral therapy (ART) reduces a person's viral load (HIV RNA) to  

   an undetectable level. (https://aidsinfo.nih.gov/education‐materials/glossary/1650/viral‐suppression)
Page    41

                                                                

Volunteer Generation Fund 

The Volunteer Generation Fund (VGF) supports CNCS’s mission to improve lives and strengthen 

communities by strengthening volunteer management practices across the country. This includes 

helping nonprofit and voluntary organizations broaden their volunteer base, more effectively 

recruit and retain volunteers, expand opportunity for those who serve, and increase their impact 

on community challenges. 

Performance 

In FY 2016, VGF grantees that received awards in FY 2015 reported results and CNCS made 

new awards to grantees that will continue to focus on the agency’s priorities.19 

FY 2016 Commissions that received their CNCS 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. Governorsupported 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 

	 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. 

 

19  FY 2015 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 2016 and represent the most current VGF accomplishments.   
Page    42

 

Innovation, Demonstration, and Other Activities 

Subtitle H Innovation, Demonstration, and Other Activities funding provides resources for CNCS 

to strengthen the nation’s volunteer sector, bring more Americans into service, encourage social 

innovation, strengthen existing national service programs, and support and encourage new forms 

of national service and civic participation. Subtitle H activities also include Call to Service 

initiatives to engage more Americans in service to meet pressing community needs including the 

Martin Luther King, Jr. (MLK) National Day of Service and the September 11th National Day of 

Service and Remembrance. 

Performance 

Call to Service 

In FY 2016, 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. 

Martin Luther King Jr. National Day of Service 

The Martin Luther King Jr. National Day of Service was a significant moment for national 

service. Over 230,000 volunteers were involved in service across the country through events 

planned by the MLK Day grantees. Specific examples of MLK Day success include the 

following: 

	 The Arc of the United States promoted Dr. King’s idea that, “everybody can be great because 

anybody can serve” by engaging people with disabilities in service. Ten chapters across the 

country planned service events at local food banks where people with and without disabilities 

served alongside one another to ensure the availability of food for those in need. 

	 Service for Peace engaged over 27,000 volunteers who served over 100,000 hours on MLK 

Day with an additional 15,000 volunteers who served in the subsequent 40 days of peace 

season of service. 

September 11th National Day of Service and Remembrance 

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

neighbors 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, Points of Light, Youth Service 

America, Service for Peace, 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. 

In New York City, MyGoodDeed commemorated the 15th anniversary of September 11th by 

working with eight faith based organizations and thousands of volunteers to pack over 500,000 

meals for those in need. MyGoodDeed also developed new tool kits and lesson plans to promote 

empathy and service learning, making these resources available to teachers across the country. 
Page    43

                                                                

Evaluation 

CNCS’s Office of Research and Evaluation coordinates the agency’s learning agenda across the 

activities highlighted earlier. 

Performance20 

Research Learning Strategies 

	 Conducted a research grant competition to expand the agency’s connection to academia’s 

intellectual capital. The Notice of Funding Availability published in June of 2015 generated 

60 letters of interest submissions by institutions of higher education nationwide. A total of 54 

applications were submitted. Seven awards were made totaling $923,100 in FY 2015 with 

work continuing into FY 2016. 

	 Improved a 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 within a year and was administered for the first time in the spring 

of 2015. 

	 Completed a Senior Corps survey that provided the first-ever descriptive data for volunteers 

in the program and implementation of a longitudinal survey of volunteers based on these 

findings. 

	 Explored the feasibility of matching AmeriCorps alumni data to two administrative datasets. 

o	 A sample of three cohorts of AmeriCorps alumni (who completed their last term of 

service in 2005, 2010, and 2013) was matched to postsecondary enrollment and 

graduation records held by the National Student Clearinghouse (NSC). CNCS found high 

levels of enrollment and degree completion for alumni in the NSC match. 

o	 CNCS will work with the U.S. Census Bureau (the Center for Administrative Records 

Research and Applications, CARRA) to develop an employment outcomes brief that will 

link AmeriCorps alumni data to the Longitudinal Employer-Household Dynamics 

(LEHD) dataset. CARRA provided CNCS an estimate and scope of work for the brief 

and an agreement will be executed in FY 2017. 

Evaluation Learning Strategies 

	 Prioritized a set of third-party program evaluations focused on assessing the agency’s 

highest-profile initiatives which currently includes the Social Innovation Fund national 

assessment, the School Turnaround AmeriCorps evaluation, and the Social Innovation Fund 

Pay for Success evaluation. 

	 Implemented an evaluation capacity building initiative that has increased grantee 

organizations’ ability to conduct quality evaluations and ultimately generate more credible 

evidence of effectiveness. Within two years of implementing this model, staff has 

experienced a transition from resistance to evaluation to invitations from Commissions to 

offer workshops at their regional training conferences nationwide. 

20 CNCS will provide updated Evaluation information in its FY2018 Congressional Budget Justification.
Page    44

Dissemination & 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. 

	 Convened the agency’s first annual Research Summit. A total of 236 individuals representing 

nonprofit/philanthropic organizations (34 percent), the agency (22 percent), academia (14 

percent), government (13 percent), and unaffiliated (17 percent) attended the event. 
Page    45
 

Agency Management Performance 
Page    46

Human Capital 

For FY 2016, CNCS continued to invest in its most important resource: agency employees. This 

investment included: 

 Hiring a skilled training coordinator to further align and help prioritize training and learning 

needs across the agency 

 Issuing pay and non-pay awards for staff that excelled in performing their 

duties 

In addition to many other process and policy improvements, the agency anticipates that these 

investments will help build on employees’ satisfaction expressed in the chart below. This remains 

an agency priority because employees who have positive work experience are more motivated 

and can better help the agency better meet its goals. 

Measure 

FY 2013 

Actual 

FY 2014 

Actual 

FY 2015 

Actual 

FY 2016 

Actual 

Percent of employees who are 

satisfied with their job 67% 63% 70% 68% 

Information Technology 

CNCS continued to invest in agency-wide IT modernization in FY 2016. Modernization will 

provide users with a more flexible and efficient system for awarding and managing agency 

grants. Additionally, the agency focused on projects that will strengthen information security, 

services, and overall IT governance and oversight. 

Below are a few of the many priority accomplishments by strategic area. 

	 Fortify cybersecurity 

o	 Continued to address issues identified in CNCS’s Federal Information Security
 

Modernization Act remediation plan
 

	 Modernize technology and services 

o	 Continued to complete projects for the agency’s new Grants and Member Management 

System 

o	 Implemented SharePoint to enhance records management, information sharing, and 

collaboration 

	 Enhance services delivered 

o	 Continued to consolidate network file storage and internal web pages 

	 Strengthen governance and oversight 

o	 Completed 5-year IT Strategic Plan and Enterprise Architecture plan that provides a 

framework to help CNCS identify IT direction, solutions, and risks and incorporate them 

into resourcing decisions 

Grants Management 

As the nation’s largest federal grantmaker devoted exclusively to supporting national and 

community service projects, CNCS provides hundreds of millions of dollars in results-focused 

funding to organizations across the nation that improve lives and strengthen communities. 
Page    47

CNCS has adopted key indicators below to help gauge the agency’s effectiveness and efficiency 

in managing grants and contribute to the agency’s strategic goal four highlighted earlier in this 

report. As reflected in the chart below, in FY 2016 the agency continued to award and close 

grants effectively. 

Measure 

FY 2013 

Actual 

FY 2014 

Actual 

FY 2015 

Actual 

FY 2016 

Actual 

Percent of grants awarded before the 

budget period start date 95% 95% 96% 95%
 

Percent of grants closed within 180 

days of performance period end date 64% 65% 56% 65%
 

 

Accountability 

In April 2016, CNCS established an Office of the Chief Risk Officer to lead the agency’s risk 

management efforts toward a more integrated framework. The framework consists of internal 

controls reviews, improper payments assessments, grant monitoring and compliance, and the 

launch of an enterprise risk management program. This effort will result in a more holistic 

approach to managing uncertainties associated with meeting mission objectives. 

Based on this broad organizational approach, the office began: 

	 Implementing a governance structure to better integrate the agency’s risk assessments and 

provide more effective communication on the status of risk reviews and the implementation 

of risk mitigation strategies 

	 Developing a plan to review the annual risk assessment of the agency’s grant portfolio to 

better identify awards that may require additional oversight, monitoring or training and 

technical assistance 

	 Establishing a stronger regulatory compliance structure to help ensure CNCS meets relevant 

legal requirements 

	 Enhancing business processes to strengthen investment and budgetary decisions by focusing 

scarce resources on the highest mission priorities 

 
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Page    49

 

Analysis of Entity’s Systems, Control and Legal Compliance: 

Implementation of the Federal Managers Financial Integrity Act (FMFIA) 

Statement of Assurance 
Page    50

Implementation of the Federal Managers' Financial Integrity Act (FMFIA) 

Section 306 of the Chief Financial Officers Act established a reporting 

requirement related to the internal controls for corporations covered by the 

Government Corporation Control Act. CNCS is subject to the Government 

Corporation Control Act (31 U.S.C. 9101 et Seq.). These corporations must 

submit an annual management report to the Congress. This report must include, 

among other items, a statement on control systems by the head of the 

management of the corporation consistent with the requirement of the FMFIA. 

The statement must reflect management’s assessment of the effectiveness of its 

internal control system as well as a summary of its process for assessing internal 

control. 

During FY 2016, CNCS assessed the effectiveness of its internal control system 

in accordance with OMB Circular A-123, Management’s Responsibility for 

Enterprise Risk Management and Internal Control. In assessing the design, 

implementation and operating effectiveness of its internal controls, CNCS 

performed an evaluation of its entity level controls with the objective of 

mapping the seventeen principles supporting the five components of internal 

control to existing entity level control activities. Consistent with Section IV.B 

of OMB Circular A-123, CNCS also relied on other sources of information such 

as knowledge gained by management from daily operations of programs and 

systems, audits and assessments including: standard operating procedures, 

systems of financial and administrative controls, information obtained from 

internal reviews or reconciliations, Office of Inspector General (OIG) and 

Government Accountability Office (GAO) audits, the annual audit of CNCS 

financial statements, management reviews, annual evaluations and reports 

related to information technology, information security, and information 

resources pursuant to Federal Information Security Modernization Act and 

OMB Circular No. A-130. These evaluations did not identify significant 

deficiencies or material weaknesses that should be reported to senior level 

management or disclosed in the annual assurance statement. 

The Chief Executive Officer’s statement of assurance that follows is supported 

by the assessments and reviews described above. A detailed summary of 

management assurances is also provided in the “Other Information” section of 

this AFR. 
        

Statement of Assurance 

The Corporation for National and Community Service management is responsible for managing risks and maintaining 

effective internal control to meet the objectives of Sections 2 and 4 of the Federal Managers’ Financial Integrity Act. The 

Corporation for National and Community Service conducted its assessment of risk and internal control in accordance with 

OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk Management and Internal Control. Based on 

the results of the assessment, the Agency can provide reasonable assurance that internal control over operations, reporting, 

and compliance were operating effectively as of September 30, 2016. 

               __________________________________

                 Wendy Spencer 

 Chief Executive Officer 

                           

 

___

250 E Street, SW 

Washington, D.C. 20525 

202-606-5000 | 800-942-2677 | TTY 800-833-3722 
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Page    53
 

 

Analysis of Financial Statements and Stewardship Information 
Page    54

Understanding the 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) 2016 and 2015. 

 
Page    55

The Statement of Financial Position provides an overview of CNCS’s financial position at the 

certain point in time. The fiscal year end statement displays the current and the future economic 

benefits owed or available for use (assets) and amounts owed ( liabilities) and the residual 

amount (net position) at September 30th. 

 

Composition of CNCS Assets 

53.5%

42.2%

3.1%

0.5%

0.7% Fund Balance With Treasury 53.5% 

Trust Investments and Related 

Receivables 42.2% 

Advances to Others 3.1% 

Accounts Receivable 0.5% 

Property, and Equipment 0.7% 

Figure I CNCS Assets as of September 30, 2016 

In Figure I, the chart displays the composition of FY 2016 assets. CNCS reported on its Statement of 

Financial Position the total assets of $2.0 billion at the end of FY 2016. The amount aforementioned 

above represents an increase of $121.0 million over the FY 2015 total assets of $1.8 billion. The change 

is primarily due to $40.1 million increase in Fund Balance with Treasury (FBWT) and $71.2 million 

increase in Trust Investments and Related Receivables. 

FBWT is the largest asset class. The FBWT is increased through appropriations, transfers, recoveries, 

receipts and collections and decreased by expenditures and rescissions. CNCS is authorized to use 

FBWT to make expenditures for authorized expenses resulting from operational activity. 

Trust Investments and Related Receivables is second largest asset class. Funding for the Trust 

investments comes from appropriations, interest earned, sponsorships, and proceeds from the sale or 

redemption of investments. Investments and Related Receivables are used to pay Education Awards for 

eligible participants who complete AmeriCorps service. 
Page    56

Composition of CNCS Liabilities 

As of September 30, 2016, CNCS total liabilities amounted to $556.7 million, $54.6 million 

decrease from the FY 2015. 

Figure II CNCS Liabilities as of September 30, 2016 

 

     

   

   

   

      

     

   

71.2%

18.1%

1.5%

1.4% 4.2%

0.7%

2.9%

Trust Service Award Liability

71.2%

Grant Payable 18.1%

Acccount Payable 1.5%

Actuarial FECA 1.4%

Advances from Others 4.2%

Accrued Annual Leave 0.7%

Other Liabilities 2.9%

In Figure II, the chart displays the composition of FY 2016 liabilities. The major change in 

liabilities composed of a significant decrease in Trust Service Award Liability of $58.6 million 

due to a revised statistical method. The Trust Service Award Liability consisted of estimates of 

unpaid earned and expected to earned education award and interest forbearance costs that are 

likely to be paid. Grants Payable represents funds due to grantees in payment of their 

performance under a grant. Grants Payable amounted to $100.7 million in FY 2016 from $97.0 

million in 2015. 
Page    57

 

  

  

   

       

Results of Operations 

The Statement of Operations and Changes in Net Position presents revenue earned by CNCS 

(primarily appropriations) and the annual cost of operating CNCS programs. CNCS recognizes 

its use of appropriated capital as revenue at the time it is expended or accrued to pay program or 

administrative expenses. Appropriations received for the Trust are recognized as revenue when 

received. In FY 2016, CNCS used a revised cost accounting methodology to allocate the 

expenses allocated among its major programs, at the sub-program level. Costs for each major 

CNCS program are reported separately. Program costs include grant expenses and direct and 

allocated personnel and administrative costs, including AmeriCorps recruitment and Trust 

operations. In Figure III, the pie chart displays the FY 2016 expenses by the major programs 

aligned with the percentages of the total program expenses. 

Figure III CNCS Expenses for the Period Ended September 30, 2016 

71.3%

22.0%

6.2%

0.5%

AmeriCorps 71.3%

SeniorCorps 22.0%

Innovation, Demonstration and

Assistance Activities 6.2%

Office of the Inspector General

0.5%

For FY 2016, CNCS’s Total revenue totaled $1.1 billion, an increase of $36.3 million from FY 

2015. Total expenses reported for FY 2016 totaled $958.2 million, which represents a decrease 

of $58.1 million from FY 2015. CNCS’s net revenue over expenses for FY 2016 was $134.9 

million, which is an increase of $94.5 million compared to FY 2015. 

Budgetary Resources 

The Statement of Budgetary Resources provides information on how budgetary resources were 

made available to CNCS for the year and the status of those budgetary resources at year-end. 

Total budgetary resources had an increase of $100 million from FY 2015 to FY 2016. 
Page    58

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. 

 
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Page    60
 

 

Section II: Financial Section 
 

Message from the Chief Financial Officer 

The Corporation for National and Community Service improves lives, strengthens communities, and fosters civic 

engagement through service and volunteering. We accomplish this mission through the dedicated work of our national 

service family. Whether it is AmeriCorps members helping our children reach their educational goals, Senior Corps 

volunteers delivering food to our elderly neighbors so that they can live independently, or Social Innovation Fund projects 

helping disadvantaged youth live healthier, CNCS supports those who get things done for our country. 

Given this critical mission, we take very seriously our public charge to manage CNCS effectively and efficiently. 

Therefore, I am pleased to report that for the 17th consecutive year, CNCS has earned an unmodified opinion on its 

annual financial statement audit. This accomplishment demonstrates an on-going commitment to delivering cost effective 

programs through sound fiscal management and effective internal controls. 

Additionally, over the past year, we continued to strengthen agency operations in support of our strategic goal four. For 

example, we further aligned our risk management functions under a new Chief Risk Officer, who will lead agency efforts 

to reduce the negative consequences of enterprise-wide mission uncertainties. We also continued to make progress on the 

first phase of our information systems enhancements, which will help reduce the burden associated with awarding and 

managing thousands of grants every year. 

We are proud of our team’s progress thus far and energized to tackle some tough future challenges, which include 

strengthening management controls, developing a more robust risk-based grant monitoring approach, and completing our 

information system modernization. 

CNCS submitted a budget plan to Congress earlier this year that will allow us to address these priorities and meet related 

operational goals. Our plan prioritizes staffing, accountability, and the second phase of our information system 

enhancements. If we receive the requested funding, it will begin to reverse years of under-investment in the agency’s 

infrastructure and support operations, which the CNCS OIG has noted is a major impediment to the agency’s efforts to 

improve operations and mitigate risks. 

In closing, I would like to thank the financial and program professionals throughout the agency for their continued 

dedication and hard work this past year. From providing grantees with guidance and support to completing that last endof-year closeout activity, our employees make success possible. 

                        _____________________________________

Jeffrey Page 

Chief Operating Officer/Chief Financial Officer 

250 E Street, SW 

Washington, D.C. 20525 

202-606-5000 | 800-942-2677 | TTY 800-833-3722 
Page    62

Part 2 Financial Statements and Footnotes 

Consolidated Statements of Financial Position 

Consolidated Statements of Operations and Changes in Net Position 

Consolidated Statements of Cash Flows 

Combined Statements of Budgetary Recourses 

Footnotes 

 
   

Consolidated Financial Statements 
Corporation for National and Community Service
 

Consolidated Statements of Financial Position 

As of September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

Assets 

Fund Balance with Treasury (Note 2) $ 1,044,413 $ 1,004,351 

Cash and Other Monetary Assets - 79 

Investments and Related Receivables (Note 3) 822,652 751,464 

Advances to Others 59,488 57,288 

Accounts Receivable, Net (Note 4) 9,559 8,157 

Property and Equipment, Net (Note 5) 

Total Assets $ 1,949,750 $ 1,828,779 

 13,638 7,440 

Liabilities 

Trust Service Award Liability (Note 6) $ 396,344 $ 454,890 

Grants Payable 100,664 96,978 

Accounts Payable 8,250 5,149 

Actuarial FECA Liability (Note 8) 7,573 8,328 

Advances from Others (Note 9) 23,507 26,725 

Accrued Annual Leave 4,130 4,301 

Other Liabilities (Note 10) 16,200 14,912 

Total Liabilities $ 556,668 $ 611,283 

Contingencies (Note 16) 

Net Position 

Unexpended Appropriation 956,173 915,432 

Cumulative Results of Operations 436,909 302,064 

Total Net Position (Note 11) $ 1,393,082 $ 1,217,496 

Total Liabilities and Net Position $ 1,949,750 $ 1,828,779 

The accompanying footnotes are an integral part of these financial statements. 
Corporation for National and Community Service
 

Consolidated Statements of Operations and Changes in Net Position 

For the Periods Ended September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

Revenue 

Appropriated Capital Used $ 794,222 $ 779,799 

Appropriations Received by the National Service Trust (Note 12) 241,352 217,507 

Interest 3,964 2,747 

Revenue from Services Provided 39,605 40,450 

Other 13,893 16,194 

 Total Revenue 1,093,036 1,056,697 

Expenses 

AmeriCorps 682,390 742,280 

SeniorCorps 211,217 221,788 

Innovation, Demonstration and Assistance Activities 59,620 47,702 

Office of the Inspector General 4,964 4,552 

 Total Expenses (Note 13) 958,191 1,016,322 

Net of Revenue Over Expenses $ 134,845 $ 40,375 

Net Position 

Net of Revenue Over Expenses $ 134,845 $ 40,375 

Increase/(Decrease) in Unexpended Appropriations, Net (Note 15) 40,741 25,065 

Increase/(Decrease) in Net Position, Net 175,586 65,440 

Net Postion, Beginning Balance 1,217,496 1,152,056 

Net Position, Ending Balance (Note 11) $ 1,393,082 $ 1,217,496 

The accompanying footnotes are an integral part of these financial statements. 
Corporation for National and Community Service
 

Consolidated Statements of Cash Flows
 

For the Periods Ended September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

CASH FLOWS FROM OPERATING ACTIVITIES 

Net of Revenue over Expenses $ 134,845 $ 40,375 

Adjustments Affecting Cash Flow:

 Depreciation, Amortization, and Loss on Disposition of Assets 1,245 1,917

 Amortization of Premium/(Discount) on Investments (197) (1,606)

 Appropriated Capital Used (794,222) (779,799)

 Appropriations Received in Trust (241,352) (217,507)

 Appropriations Transferred to Other Federal Agencies 1,000 (1,000)

 Decrease/(Increase) in Cash and Other Monetary Assets 79 46

 Decrease/(Increase) in Accounts Receivable (1,402) 1,121

 Decrease/(Increase) in Interest Receivable (305) 182

 Decrease/(Increase) in Advances to Others (2,200) 834

 Increase/(Decrease) in Accounts Payable and Other Liabilities 4,389 685

 Increase/(Decrease) in Advances from Others (3,218) 1,735

 Increase/(Decrease) in FECA and Annual Leave Liabilities (926) (870)

 Increase/(Decrease) in Trust Liability (58,546) 759

 Increase/(Decrease) in Grants Payable 3,686 1,407

 Total Adjustments (992,096) (1,091,969) 

Net Cash Provided/(Used) by Operating Activities (957,124) (951,721) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Sale of Securities 981,391 1,129,620 

Purchase of Assets (7,443) (6,970) 

Purchase of Securities (1,013,458) (1,200,306)

Net Cash Provided/(Used) in Investing Activities (78,129) (39,037) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Appropriations Received, Net of Trust 1,054,954 1,094,916 

Rescissions and Cancellations (19,601) (31,583) 

Net Cash Provided by Financing Activities 1,023,371 1,075,315 

Net Increase/(Decrease) in Fund Balance with Treasury 40,062 32,613 

Fund Balance with Treasury, Beginning 971,738 1,004,351 

Fund Balance with Treasury, Ending (Note 2) $ 1,044,413 $ 1,004,351 

The accompanying footnotes are an integral part of these financial statements. 
Corporation for National and Community Service
 

Combined Statements of Budgetary Resources 

For the Periods Ended September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

Budgetary Resources 

Unobligated, balance brought forward, October 1 $ 230,979 $ 205,420 

Recoveries of unpaid prior year obligations 36,354 31,772 

Recoveries of paid prior year obligations 569 -

Other changes in unobligated balance (19,601) (31,583) 

Unobligated balance from prior year budget authority, net 248,301 205,609 

Appropriation Discretionary 1,095,916 1,053,954 

Appropriation (special or trust funds) 241,369 217,514 

Appropriation Discretionary (total) 1,337,285 1,271,468 

Appropriation Mandatory (special or trust funds) 3,461 3,933 

Appropriations (discretionary and mandatory) 1,340,746 1,275,401 

Spending authority from offsetting collections (discretionary and mandatory) 42,725 50,718 

Total Budgetary Resources $ 1,631,772 $ 1,531,728 

Status of Budgetary Resources 

New obligations and upward adjustments ( Note 19) $ 1,339,985 $ 1,300,749 

Unobligated balance, end of year:

 Apportioned, unexpired accounts (Note 2) 221,756 98,113

 Unapportioned, unexpired accounts (Note 2) 4 51,649

 Unexpired unobligated balance, end of year 221,760 149,762

 Expired unobligated balance,end of the year (Note 2) 70,027 81,217 

Total unobligated balance, end of year 291,787 230,979 

Total Budgetary Resources $ 1,631,772 $ 1,531,728 

Change in obligated balance

 Unpaid obligations: 

Unpaid obligations, brought forward, October 1 $ 1,523,813 $ 1,480,417 

New obligations and upward adjustments 1,339,985 1,300,749 

Outlays (gross) (1,250,293) (1,225,581) 

Recoveries of prior year unpaid obligations, actual (36,354) (31,772) 

Unpaid Obligations, end of year 1,577,151 1,523,813

 Uncollected payments: 

Uncollected payments, Federal sources, brought forward, October 1 (2,042) (131) 

Change in uncollected payments, Federal sources (3,566) (1,911) 

Uncollected payments, Federal sources, end of year (5,608) (2,042)

 Memorandum (non-add) entries: 

Obligated balance, start of year $ 1,521,771 $ 1,480,286 

Obligated balance, end of year (Note 2) $ 1,571,543 $ 1,521,771

 Budget Authority and Outlays, net 

Budgetary authority, gross (discretionary and mandatory) $ 1,383,471 $ 1,326,119 

Actual offsetting collections (discretionary and mandatory) (39,728) (48,807) 

Change in uncollected payments, Federal sources (3,566) (1,911) 

Recoveries of paid prior year obligations 569 -

Budget Authority, net (discretionary and mandatory) $ 1,340,746 $ 1,275,401 

Outlays, gross (discretionary and mandatory) $ 1,250,293 $ 1,225,581 

Actual offsetting collections (discretionary and mandatory) (39,728) (48,807) 

Outlays, net (discretionary and mandatory) 1,210,565 1,176,774 

Distributed offsetting receipts (242,772) (218,475) 

Agency Outlays, net (discretionary and mandatory) $ 967,793 $ 958,299 

The accompanying footnotes are an integral part of these financial statements. 
Footnotes for Consolidated Financial Statements 
 NOTE 1—Summary of Significant Accounting Policies 

A. REPORTING ENTITY 

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 2016 from the following funds: 

Trust and Gift Funds: 

• National Service Trust (Trust), from which CNCS provided education awards and interest forbearance 

for volunteers that serve as 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 

activities 

• 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 of the Recovery Act. 

• 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. FINANCIAL 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’s 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. 

The financial statements are presented in accordance with the accounting principles generally accepted 

in the United States of America (GAAP), as applicable to federal government corporations. The Federal 

Accounting Standards Advisory Board (FASAB) is the standard setting body for the federal 

government. Statement of Federal Financial Accounting Standards Number 34 (SFFAS 34) provides 

that financial statements prepared by certain government corporations in conformity with the 

accounting standards issued by the Financial Accounting Standards Board (FASB) are regarded as 

being in conformity with GAAP. As provided by SFFAS 34, where there is no standard issued by 

FASB applicable to the federal corporation, the financial statements are presented in accordance with 

the accounting standards issued by FASAB. 

In addition, under Executive Order 13331, National and Community Service Programs, CNCS must 

prepare a Combined Statement of Budgetary Resources as a principal statement. The accompanying 

Combined Statements of Budgetary Resources have been prepared in accordance with GAAP, as 

prescribed by FASAB. 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 2016, presentation changes have been made to facilitate a greater understanding of the statements 

and notes. 
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, 2016, 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. CNCS does not have Cash and Other Monetary 

Assets for the periods ending September 30, 2016. 

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 and bills. 

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, and are amortized using the level yield/effective interest method for the 

notes and straight line method for the bills. 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 interest-bearing 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 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. GENERAL PROPERTY AND EQUIPMENT 

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

installation, less accumulated depreciation/amortization. Normal maintenance and repair costs on 

capitalized property and equipment are expensed when incurred. CNCS capitalizes property and 

equipment with an estimated useful life of two years or more based on the below thresholds. 

Capitalized property are depreciated or amortized on a straight line over their estimated useful lives 

ranging from 2 to 10 years. 

The CNCS’s capitalization policy, Accounting for Capital Property, was updated with an effective date 

May of Fiscal Year 2016. Property and Equipment acquired before this policy was implemented that 

does not meet the new capitalization criteria will be fully depreciated. 

The primary change relates to the capitalization thresholds for each asset type. Prior to May 2016 

threshold change, CNCS capitalized items with a cost of $50 thousand or greater for all asset types. 

Effective May 2016, CNCS capitalizes single items of property and equipment with a cost of $50 

thousand or more. Also, CNCS capitalizes bulk purchases of property and equipment with an aggregate 

cost of $250 thousand or more. A bulk purchase is defined as the purchase of like items related to a 

specific project, or the purchase of like items occurring within the same fiscal year that have an 

estimated useful life of at least two years. 

In addition, CNCS capitalizes Internal Use Software with an aggregate cost of $250 thousand or more. 

Internal Use Software is either purchased off the shelf, internally developed, or contractor developed 

solely to meet the CNCS’s internal or operational needs. Internal Use software developed to meet 

CNCS’s internal or operational needs will be recognized as capitalized Iinternal Use software in 

development if the estimated developmental cost obligated on the contract meets the capitalization 

criteria. Internal Use software in development will be recorded at cost in the fiscal year when they are 

incurred and paid. The realization of Internal Use software will be recognized in CNCS’s financial 

records upon completion of the software development and when the title is passed to CNCS. 

Refer to Note 7, General Property and Equipment, Net for additional information. 
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 Department of Labor 

(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 non-vested 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 expenditures have been made. Cumulative results of 

operations represent the net differences between revenues and expenses from the inception of CNCS. 

U. REVENUE RECOGNITION 

Appropriation Used. CNCS recognizes its use of appropriated capital as revenue at the time it is 

expended or accrued to pay program or administrative expenses. Appropriations expended for property 

and equipment are recognized as used when the property is purchased. Appropriated capital not 

expended within five fiscal years after it became available for obligation is cancelled. Unpaid 

obligations recorded against cancelled appropriated capital are paid from currently available 

appropriated funds as payments become due. Appropriations received for the CNCS Trust are 

recognized as revenue when received in the Trust Fund. Trust appropriations do not expire with the 

passage of time and are retained by CNCS in the Trust until used for eligible education service award 

purposes. 

Interest on Investments. Interest income is recognized when earned. Treasury notes and bonds pay 

interest semi-annually, based on the stated rate of interest. Interest on Treasury bills is paid at maturity. 

Interest income is adjusted by amortization of premiums and discounts using the level yield/effective 

interest method for the notes and straight line method for the bills. 

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 7.0 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 4.0 percent of pay, for a maximum CNCS contribution amounting to 5.0 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 

Certain FY 2015 amounts have been reclassified to conform to the FY 2016 presentation. 

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. 
NOTE 2 – Fund Balance with Treasury 

U.S. Government cash is accounted for on an overall consolidated basis by Treasury. The Fund 

Balance with Treasury line on the Statement of Financial Position consists of the following: 

	 Appropriated Funds – Appropriated funds are received through congressional appropriations to 

provide financing sources for the CNCS’s programs on an annual, multi-year, and no-year basis. 

	 Trust Funds – Trust funds are accounts designated by law for receipts earmarked for specific 

purposes and for the expenditure of these receipts. Funds from the National Service Trust may be 

expended for the purpose of providing an education award or student loan interest forbearance 

payment and are made directly to a qualified institution (college, university, or other approved 

educational institution, or a lending institution holding an existing student loan) as designated by 

the participant. The National Service Trust also pays awards under the President’s Freedom 

Scholarship, Summer of Service, and Silver Scholar programs. 

	 Gift Funds – Gift Funds are funds received from individuals and organizations as donations in 

furtherance of the purposes of national service laws. 

 
NOTE 2 – Fund Balance with Treasury---Continued 

Fund Balance with Treasury as of September 30, 2016 

(dollars in thousands)

Unrestricted Restricted 

Type Appropriated 

Funds 

Trust 

Funds 

Gift 

Funds 

 

 

Total 

Total $ 1,039,991 $ 4,027 $ 395 $ 1,044,413

Obligated Not Yet Disbursed $ 945,000 $ 626,512 $ 31 $ 1,571,543

Unobligated Available 22,764 198,628 364 221,756

Unobligated Unavailable 70,027 4 - 70,031

Non Budgetary FBWT 2,200 - - 2,200

Investments * - (821,117) - (821,117)

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

* Investments include purchases, sales, premiums and discounts 
 

NOTE 3 – Investments and Related Receivables 

 Investments and Related Receivables as of September 30 

(dollars in thousands) 

 2016 2015

 Investments, Carrying Value $821,860 $ 750,977 

Interest Receivable 792 487 

Total $ 822,652 $ 751,464 

 

Amortized Cost and Fair Value of Investment Securities 

as of September 30, 2016 

(dollars in thousands) 

Securities Amortized Cost 

Unrealized 

Gains/(Losses) Fair Value 

Notes $ 541,519 $ 463 $ 541,982 

Bills 280,341 47 280,388 

*Total $ 821,860 $ 510 $ 822,370 

Securities 

Amortized Cost and Fair Value of Investment Securities 

as of September 30, 2015 

(dollars in thousands) 

Unrealized 

Amortized Cost Gains/(Losses) Fair Value 

Notes $ 328,823 $ 652 $ 329,475 

Bills 422,154 142 422,296 

Total $ 750,977 $ 794 $ 751,771 

As of September 30, 2016, the notes held at year-end had an interest rate range of 0.375% to 0.875% 

and an outstanding maturity period of approximately 31 days to 2.5 years. The bills held at year-end 

had an interest rate range of 0.215% to 0.535% and were all due to mature within 364 days. The par 

values of notes range from $3.6 million to $148.3 million. The fair value of the bills and notes is based 

on bid and ask prices quoted by Treasury as of September 30, 2016 and 2015. 

Since FY 2003, CNCS has set aside in reserve a portion of the funds in the National Service Trust for 

use in the event that its estimates used to calculate obligational amounts for education awards prove to 

be too low. This reserve was originally required by the Strengthen AmeriCorps Program Act, and is 

now required by section 149(b) of the National and Community Service Act (42 U.S.C. 12606(b)). As 

of September 30, 2016, $50.2 million of CNCS’s investment account has been set aside for this reserve. 
 

NOTE 3 – Investments and Related Receivables---Continued 

Maturation of Securities Held as of September 30 

(dollars in thousands) 

2016 2015 

Held- toMaturity 

Securities Amortized Costs Fair Value Amortized Cost Fair Value 

Due in 1 year or 

less $ 721,874 $ 722,133 $ 523,225 $ 523,435 

Due after 1 year 

up to 5 years 99,986 100,237 227,752 228,336 

Total $ 821,860 $ 822,370 $ 750,977 $ 751,771 
 

 

NOTE 4 – Accounts Receivable, Net

 Accounts Receivable as of September 30 

(dollars in thousands) 

Appropriated 

Funds Trust Fund Total 

2016

 Accounts receivable $ 10,774 $ 305 $11,079

 Less: allowance for doubtful accounts (1,415) (105) (1,520)

 Accounts Receivable, Net $ 9,359 $ 200 $ 9,559 

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 
NOTE 5 – Property and Equipment, Net 

General Property and Equipment as of September 30, 2016

 (dollars in thousands) 

Major Class 

Service 

Life 

(Years) Cost 

Accumulated 

Depreciation Net Book Value 

Equipment 3 – 10 $ 4,010 $ (3,009) $ 1,001 

ADP software in development N/A 11,907 - 11,907 

ADP software 2 13,847 (13,117) 730

 Total $ 29,764 $ (16,126) $ 13,638 

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 

Individuals who successfully complete terms of service in AmeriCorps programs earn education 

awards, which can be used to make payments on qualified student loans or for educational expenses at 

qualified educational institutions. The Education award must be used within seven years of completion 

date of an approved term of national service. If the education award is a transferred award or Summer 

of Service award the use period will be ten years. These awards are paid from the National Service 

Trust Fund. 

The National Service Trust also pays forbearance interest on qualified student loans during the period 

members perform community service. The award liability components related to education awards and 

interest forbearance have been adjusted, based on historical experience, to reflect the fact that some 

eligible participants may not use these benefits. 

Funds for the President’s Freedom Scholarship Program were provided in the appropriations acts from 

1998 through 2007. Because the program last received appropriated funds in 2007 and recipients had 

seven years to use the scholarships, the last available use date was in 2014, and no payments have been 

made since that date. 

The following table provides the Total Cumulative Service Awards, Award Payments, and resulting 

Liability as of September 30: 

Service Award Liability as of September 30 

(dollars in thousands) 

2016 2015

 Education awards $2,736,947 2,647,027 

 Interest forbearance 112,005 103,258 

 President's Freedom Scholarship Program 21,643 22,527 

 Total estimated Service Award Liability 2,870,595 2,772,812 

Less: cumulative awards paid (2,474,251) (2,317,922) 

Total $ 396,344 $ 454,890 

The Net Service Award Liability as of September 30, 2016 decreased by approximately $58.6 million 

from the Net Service Award Liability as of September 30, 2015. A large portion of this reduction, 

approximately $48.6 million, is attributed to a revised statistical method. The remaining reduction is 

due to current year award payments and expirations in excess of current year enrollments. 
NOTE 7 – Operating Leases 

CNCS leases office space through the General Services Administration (GSA). GSA charges CNCS a 

Standard Level Users Charge that approximates commercial rental rates for similar properties. The 

NCCC also leases housing facilities for its campuses. Additionally, CNCS leases motor vehicles on an 

annual basis through GSA under an Interagency Fleet Management Service agreement for the NCCC. 

The leases are renewable with no purchase or escalation clause. The following schedule presents 

future minimum rental commitments under operating leases that have initial or remaining noncancellable lease terms in excess of one year as of September 30. 

Estimated Operating Lease Commitments as of September 30 

(dollars in thousands) 

2016 2015 

Fiscal 

Year 

Facilities 

Space Vehicles Other Total 

Facilities 

Space Vehicles Other Total 

2016 11,522 795 554 12,871 

2017 7,916 818 482 9,216 11,846 813 561 13,220 

2018 8,141 836 485 9,462 12,179 832 575 13,586 

2019 8,372 855 498 9,725 12,523 852 598 13,973 

2020 8,611 874 506 9,991 12,876 872 622 14,370 

2021 8,856 895 521 10,272 

Total $ 41,896 $ 4,278 $2,492 $48,666 $ 60,946 $ 4,164 $2,910 $68,020 
NOTE 8 – Actuarial FECA Liability 

CNCS’s actuarial liability for future workers’ compensation benefits under FECA was $7.6 and $ 8.3 

million as of September 30, 2016 and 2015, respectively. The amount includes the expected liability 

for death, disability, medical, and miscellaneous costs for approved compensation cases. As with all 

Federal agencies CNCS’s FECA liability is determined by DOL. The actuarial liability is determined 

using a method that utilizes historical benefit payment patterns related to a specific incurred period to 

predict the ultimate payments related to that period. Consistent with past practice, these projected 

annual benefit payments have been discounted to present value using the Office of Management and 

Budget’s (OMB’s) economic assumptions for 10-year Treasury notes and bonds. 
NOTE 9 – Advances from Others

Advances from Others consists of advances from other federal government entities and nonfederal 

entities related to the interagency and cost share agreements into which CNCS entered to provide 

services. Advances from others primarily consist of Federal Emergency Management Agency (FEMA), 

Environmental Protection Agency (EPA), Department of Justice (DOJ), Department of Housing and 

Urban Development (HUD), and Department of Agriculture (USDA) related reimbursable activities. 

 Advances from Others as of September 30 

 (dollars in thousands) 

2016 2015

Advances from Others-Federal $ 23,481 $ 26,725

Advances from Others-Non-Federal 26 -

 

Total Advances from Others $ 23,507 $ 26,725 
 

 

NOTE 10 – 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’s 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 un-deposited collections, and 

accounts payable canceled appropriations. 

Other Liabilities as of September 30 

 (dollars in thousands) 

2016 2015 

Accrued Funded Payroll and Benefits $ 2,669 $ 2,180 

Unfunded FECA Liability 1,977 2,076 

Member Payroll Related Liabilities 4,341 3,808 

Liability for Non-Entity Assets 3,991 3,481 

Other 3,222 3,367 

 

Total Other Liabilities $ 16,200 $ 14,912 
 

 

 

 

 

 

NOTE 11 – Net Position 

Net position consists of unexpended appropriations and cumulative results of operations. Component 

balances are separately maintained for the Gift Funds, Trust Funds and Appropriated Funds. 

Net Position by Fund Balance Component as of September 30, 2016 

(dollars in thousands) 

Appropriated 

Funds 

Trust 

Funds

Gift 

Funds Total 

 Unexpended appropriations $ 956,173 $ - $ - $ 956,173 

 Cumulative results of operations 5,983 430,535 391 436,909 

Total Net Position $ 962,156 $ 430,535 $ 391 $ 1,393,082

 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 
 

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 

NOTE 11 – Net Position ---Continued 

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, 2016 

(dollars in thousands)

 Unrestricted 

 Temporarily 

Restricted Total 

 Appropriated Funds $ 962,156 $ - $ 962,156

Trust Funds - 430,535 430,535

Gift Funds - 391 391 

Total Net Position $ 962,156 $ 430,926 $ 1,393,082 
NOTE 12 – Appropriations Received by the National Service Trust 

As of September 30, 2016 and 2015, the National Service Trust received $220.0 million and $209.6 

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 $21.4 million and $ 7.9 million to the Trust in FY 2016 and FY 

2015, respectively. Accordingly, the National Service Trust received a total funding of $ 241.4 million 

in FY 2016, and $217.5 million in FY 2015, respectively. 
NOTE 13 – Expenses 

Effective FY 2016, CNCS used a revised cost accounting methodology to allocate the costs among its 

major programs, and at the sub-program level. 

Costs for each sub-program are reported on separately: 

AmeriCorps engages members in intense, impact-oriented service to address local community needs in 

areas of education, healthy futures, environmental stewardship, economic opportunity, disaster services, 

and assisting veterans and military families. AmeriCorps includes the State, National, Tribes, and 

Territories (State/National); National Civilian Community Corps (NCCC); and Volunteers In Service 

To America (VISTA) programs. The State/National sub-program includes grant expenses, as well as 

direct and allocated personnel and administrative costs including AmeriCorps recruitment and National 

Service Trust operations. The NCCC sub-program includes member stipend and benefits, and direct 

and allocated personnel and administrative costs including AmeriCorps recruitment and National 

Service Trust operations. The VISTA sub-program includes grant expenses, member stipend and 

benefits, as well as direct and allocated personnel and administrative costs including AmeriCorps 

recruitment and National Service Trust operations. 

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 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. 

The National Service Award Expense component consists of the 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 lowincome 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. 
 

 

 

NOTE 13 – Expenses---Continued

 Expenses by Major Responsibility Segment for the Period Ended September 30 

(dollars in thousands)

 2016 2015 

 AmeriCorps 

 State/National $ 480,375 $ 569,506 

NCCC 65,315 39,597 

VISTA 136,700 133,177 

 Subtotal $ 682,390 $ 742,280

 Senior Corps 

RSVP 50,998 56,316 

 Foster Grandparent Program 111,721 116,241 

 Senior Companion Program 48,498 49,231 

 

Subtotal 211,217 221,788 

Innovation, Demonstration, & Assistance 

Activities 59,620 47,702 

Office of Inspector General (OIG) 4,964 4,552 

 

Total Expenses $ 958,191 $1,016,322 

 
 

 National Service Award Expense for the Period Ended September 30 

(dollars in thousands) 

 2016 2015

 Estimated education awards $ 113,828 $ 179,586 

 Estimated interest forbearance 9,331 11,989 

 National Service Award Expense $ 123,159 $ 191,575 

 

NOTE 14 – National Service Award Expense 

Members serving in approved national service positions are eligible to earn a service award to pay for 

qualified education expenses. 

The National Service Trust also pays interest forbearance costs on qualified student loans during the 

period members perform community service. 

CNCS estimates the expense for national service awards based on the increase in its cumulative service 

award liability during the year (see Note 6). The total service award liability as of September 30, 2016 

and 2015, respectively, has been adjusted to reflect the fact that earned awards are not always used. 
NOTE 15 – Change in Unexpended Appropriations, Net 

 Unexpended Appropriations, Net as of September 30 (dollars in thousands) 

2016 2015 

 Unexpended appropriations, beginning balance $ 915,432 $ 890,367 

 

 Increases: 

 Appropriations received 1,094,916 1,054,954 

 Decreases: 

 Appropriated capital used (794,222) (779,799)

 Appropriations transferred to Trust Fund (net of rescissions) (220,000) (209,618)

 Program funds transferred to Trust Fund (21,352) (7,889) 

 Appropriations transferred to other federal agencies 1,000 (1,000) 

 Rescissions and cancellations (19,601) (31,583)

 Total decreases (1,054,175) (1,029,889)

 

Change in Unexpended Appropriations 40,741 25,065 

Unexpended Appropriations, Ending Balance $ 956,173 $ 915,432 
NOTE 16 – Contingencies 

CNCS is a party to various routine administrative proceedings, legal actions, and claims brought by or 

against it, including threatened or pending litigation involving labor relations claims, some of which 

may ultimately result in settlements or decisions against CNCS. In the opinion of CNCS’s management 

and legal counsel, there are no proceedings, actions, or claims outstanding or threatened that would 

materially impact the financial statements of CNCS. 

Certain legal matters to which CNCS is a party may be administered and, in some instances, litigated 

and paid by other federal agencies. Generally, amounts paid in excess of $2.5 thousand for Federal Tort 

Claims Act settlements or awards pertaining to these litigations are funded from the Treasury Judgment 

Fund (TJF). Although the ultimate disposition of any potential TJF proceedings cannot be determined, 

management does not expect that any liability or expense that might ensue would be material to 

CNCS’s financial statements. 
NOTE 17 – Subsequent Events 

CNCS has evaluated subsequent events through November 14, 2016, 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 18 – Undelivered Orders at the End of the Period 

CNCS’s undelivered orders as of September 30, 2016 and 2015 were $1.1 and $1.0 billion, 

respectively. 
NOTE 19 – Apportionment Categories of Obligations Incurred: Direct vs. 

Reimbursable Obligations 

An apportionment is a distribution by OMB of amounts available for obligation. OMB apportions 

CNCS’s funds on both a quarterly and annual basis. Obligations incurred as of September 30, 2016 and 

2015 were: 

Consolidated Obligations Incurred through September 30 

(dollars in thousands) 

Fiscal Year Direct Reimbursable Total 

2016 $ 1,297,084 $ 42,901 $ 1,339,985 

2015 $ 1,252,132 $ 48,617 $ 1,300,749 
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. 12651g (a)(2)(A)). Donated funds received by the 

CNCS as of September 30, 2016 and 2015 were $17.1 and $7.5 thousand, respectively. 
Part 3 – Independent Auditor's Report 

“Audit of the Corporation for National and Community Service’s Fiscal Year 2016 Financial Statements” 

- The Office of Inspector General (OIG) Report 17-01 

 “Audit of the Corporation for National and Community Service’s Fiscal Year 2016 

National Service Trust Fund Financial Statements” - OIG Report 17-02
 

The following pages are intended to show Part 3 - Independent Auditor's Report 

Page    98
 
Audit of the Corporation for National and Community Service’s Fiscal Year 2016 Financial Statements 

Transmittal Letter for OIG Report 17-01 

Independent Auditor's Report on Financial Statements 

Independent Auditor's Report on Internal Controls over Financial Reporting 

Independent Auditor's Report on Compliance with Laws, Regulations, Contracts and Grant Agreements 

 
AUDIT OF THE
 

CORPORATION FOR NATIONAL AND
 

COMMUNITY SERVICE’S 

FISCAL YEAR 2016 FINANCIAL STATEMENTS
 

OIG REPORT 17-01 

 

 

 

Office of Inspector General 

Corporation for National and 

Community Service 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314
 

This report was issued to Corporation management on November 14, 2016.
 

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 15, 2017, and complete its corrective
 

actions by November 14, 2017. Consequently, the reported findings do not 

necessarily represent the final resolution of the issues presented.
 
November 14, 2016 

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 2016 Financial Statements, OIG Report 17-01 

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, 2016 and 2015, 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; 

 One significant deficiency (Internal Controls Program) in the Corporation’s internal control 

over financial reporting; and 

 No instances of noncompliance with applicable provisions of laws, regulations, contracts, 

and grant agreements. 

In connection with the contract, we reviewed Kearney’s reports and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Corporation’s financial statements or 

conclusions about the effectiveness of internal control; or conclusions on compliance with 

applicable provisions of laws, regulations, contracts, and grant agreements. 

Kearney is responsible for the attached independent auditor’s reports, dated November 14, 

2016, 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 Chief Financial Officer 

Tom Hanley, Chief Information Officer 

Lori Giblin, Chief Risk Officer 

David Zavada, Engagement Partner, Kearney & Company, P.C. 

250 E Street, SW  Suite 4100  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 
1701 Duke Street, Suite 500, Alexandria, VA 22314 

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com 

INDEPENDENT AUDITOR’S REPORT 

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service 

Report on the Financial Statements 

We have audited the accompanying consolidated financial statements of the Corporation for 

National and Community Service (CNCS), which comprise the consolidated statements of 

financial position as of September 30, 2016 and 2015, 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 and OMB Bulletin No. 15-02 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 

1 
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. 

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 CNCS as of September 30, 2016 and 2015, 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 CNCS’s 

Management Representation Letter by the Chief Executive Officer and Chief Financial Officer 

that its financial statements, including the SBR, are accurate and reliable. CNCS has interpreted 

this requirement to include presenting the SBR as a principal financial statement. CNCS’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 

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. 

2 
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 2016, and Improper Payments sections of 

the Fiscal Year 2016 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 2016 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, 2016 is presented as other information. In accordance with the requirements of the National 

and Community Service Act of 1990, as amended, we performed a separate audit of the Trust 

financial statements and issued a report thereon dated November 14, 2016. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards and OMB Bulletin No. 15-02, we have also 

issued reports, dated November 14, 2016, on our consideration of CNCS’s internal control over 

financial reporting and on our tests of CNCS’s compliance with provisions of applicable laws, 

regulations, contracts, and grant agreements, as well as other matters for the year ended 

September 30, 2016. 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 14, 2016
 

3 
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 (CNCS) and CNCS’s National Service Trust Fund (Trust) as of and for the 

year ended September 30, 2016, and we have issued our reports thereon dated November 14, 

2016. 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 

CNCS’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 CNCS’s internal control. Accordingly, we do not express an opinion on the 

effectiveness of CNCS’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 a 

1 
 

deficiency in internal control, described in the accompanying Schedule of Findings, that we 

consider to be a significant deficiency. 

We noted certain additional matters involving internal control over financial reporting that we 

will report to CNCS’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 CNCS’s fiscal year (FY) 2015 financial statements,1 we noted two issues that 

were related to internal control over financial reporting. The status of the FY 2015 internal 

control findings are summarized in Table 1. 

Table 1: Status of Prior-Year Findings 

Control Deficiency FY 2015 Status FY 2016 Status 

Information Technology Significant Deficiency Control Deficiency 

Internal Controls Program Significant Deficiency Significant Deficiency 

CNCS’s Response to Findings 

CNCS’s response to the findings identified in our audits is described in a separate letter in 

Section II of the Agency Financial Report. CNCS’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 CNCS’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 CNCS’s internal control. 

Accordingly, this report is not suitable for any other purpose. 

Alexandria, Virginia 

November 14, 2016 

1 Independent Auditor’s Report on Internal Control over Financial Reporting and Compliance with Applicable 

Provisions of Laws, Regulations, Contracts, and Grant Agreements 

2 
Schedule of Findings
 

Significant Deficiency
 

I. Internal Controls Program (Repeat Condition) 

The Corporation for National and Community Service (CNCS) is subject to the reporting 

requirements of the Government Corporation Control Act and is therefore subject to the Federal 

Managers’ Financial Integrity Act (FMFIA); Office of Management and Budget (OMB) Circular 

A-123, Management's Responsibility for Enterprise Risk Management and Internal Control 

(Revised 07/15/2016); 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. CNCS continues to implement a program to meet these requirements, but it 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. 

Effective in fiscal year (FY) 2016, CNCS’s internal controls must meet the more robust 

requirements of the revised 2014 GAO Green Book, as well as the newly revised OMB Circular 

A-123. The lack of a fully functional internal controls program means that financial, operational, 

and compliance objectives may not be met and risks may not be adequately identified and 

mitigated. The areas where deficiencies exist are described in the following sections: 

Governance and Oversight Not Fully Functional and Effective 

The governance and oversight of the internal controls program have not been fully functional for 

a majority of FY 2016. The Senior Risk Management Council (SRMC)/Risk Management 

Council (RMC) and senior leadership held eight meetings during FY 2016, with its fourth 

quarter RMC meeting held on September 27, 2016. Although a majority of the SRMC and RMC 

meeting requirements were met throughout FY 2016, actionable items to remediate the internal 

controls program did not fully begin to develop until the hiring of the Chief Risk Officer (CRO) 

in April 2016. 

In FY 2016, CNCS also established the Risk and Assessment Committee (RAC). The RAC is 

tasked with assisting the Office of the Chief Risk Officer (OCRO) in implementing the agency’s 

risk assessments and monitoring activities. As required by the RAC charter, members are 

required to meet quarterly. However, the RAC did not hold its initial kick-off meeting until 

September 26, 2016. Both the RMC and RAC meetings were either held late in the FY or did 

not provide enough governance and oversight of the internal controls program implementation 

for a majority of FY 2016. 

3 
Additionally, CNCS did not follow up on a majority of the agency’s Corrective Action Plans 

(CAP) to ensure they had been implemented during FY 2016. This was due to the lack of 

tracking, monitoring, and testing of the corrective actions, as required by OMB Circular A-50, 

Audit Followup. Beginning in June 2016, CNCS assigned the responsibility to incorporate the 

tracking and monitoring of CAPs related to agency-wide audits and investigations to the Agency 

Audits and Investigations Coordinator. Furthermore, the Office of Grants Management (OGM) 

continues to monitor its own CAPs. There was no evidence that the current statuses of these 

CAPs were briefed in either the RMC or RAC meetings held in FY 2016. The lack of oversight 

by RMC or RAC means OGM is not being held accountable for its CAPs, although OGM made 

significant progress on resolving, in a timely manner, audit findings relating to the Office of 

Inspector General audits during FY 2016. Overall, CNCS’s governance and oversight is still 

evolving and not fully effective in FY 2016. 

Incomplete Risk Assessment and Internal Controls Monitoring Processes 

While CNCS continues to improve its internal control risk assessment, the process remains 

incomplete in FY 2016. OCRO has developed a comprehensive questionnaire and assessment 

that aligns to the 17 principles described in the GAO Green Book, using the responses as a 

baseline and foundation for assessing the design of entity-level controls to meet CNCS’s 

intended internal control objectives. However, the assessment evaluated only the design and 

implementation of entity-level controls, and it was not completed until July 2016. Due to the 

timing, CNCS was not able to address deficiencies identified through the assessment process, 

and it was the only risk assessment completed in FY 2016. While CNCS’s assessment 

considered fraud risk in general, a more thorough assessment needs to be performed at the 

transaction and account levels. CNCS also does not have a formal means to incorporate Office 

of Inspector General (OIG) audit and investigation findings into its risk assessment process. 

CNCS established the OCRO in FY 2016 to improve the effectiveness of the internal controls 

monitoring program, with specific attention towards Enterprise Risk Management. The CRO 

was appointed in late April 2016 and has since made strides in developing the program, 

specifically by completing the initial entity-level control assessment and addressing the financial 

statement audit CAPs with detailed actions to address each recommendation. However, due to 

the timing of the implementation of the OCRO, the CRO has not yet stood up a fully functional 

and operational program within FY 2016. 

In FY 2015, CNCS performed some transaction-level testing related to grants, procurement, 

financial reporting, and information technology (IT) assets. Although transaction-level testing 

occurred, proper narratives and risk and control matrices were not yet in place to drive the 

transaction-level testing, thus not fully implementing a sound baseline for its internal control 

framework. Also, CNCS did not perform any transaction-level testing in FY 2016. OCRO plans 

to begin transaction-level testing on a sample basis in FY 2017. 

4 
During FY 2016, CNCS hired consultants to develop a written description of its grants 

management process (grant process narrative) to identify key controls. As of September 2016, 

this grant process narrative had not been completed and was still in draft form. In addition, 

neither tests of design nor tests of operating effectiveness were performed over the grants 

management area in FY 2016. 

5 
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 (CNCS) and CNCS’s National Service Trust Fund (Trust) as of and for the 

year ended September 30, 2016, and we have issued our reports thereon dated November 14, 

2016. 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 CNCS’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, with which 

noncompliance 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 CNCS. 

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 no instances 

of noncompliance or other matters that are required to be reported under Government Auditing 

Standards and OMB Bulletin No. 15-02. 

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 CNCS’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 CNCS’s compliance. Accordingly, this 

report is not suitable for any other purpose. 

Alexandria, Virginia
 

November 14, 2016
 

1 
Audit of the Corporation for National and Community Service’s Fiscal Year 

2016 National Service Trust Fund Financial Statements 

Transmittal Letter for OIG Report 17-02 

Independent Auditor's Report on the National Service Trust Fund Financial Statements 
 

Office of Inspector General 

Corporation for National and 

Community Service 

AUDIT OF THE
 

CORPORATION FOR NATIONAL AND
 

COMMUNITY SERVICE’S 

FISCAL YEAR 2016 

NATIONAL SERVICE TRUST FUND
 

FINANCIAL STATEMENTS 

OIG REPORT 17-02 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314
 

This report was issued to Corporation management on November 14, 2016. 
November 14, 2016 

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 2016 National Service Trust Fund Financial Statements, 

OIG Report 17-02 

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, 2016 and 2015, and for the years then ended. The contract required that the audit be 

performed in accordance with the Government Auditing Standards and applicable Office of 

Management and Budget guidance. 

In its audit, Kearney found that the Trust financial statements present fairly, in all material 

respects, in accordance with accounting principles generally accepted in the United States of 

America. 

In connection with the contract, we reviewed Kearney’s report and related documentation and 

inquired of its representatives. Our review, as differentiated from an audit in accordance with 

United States generally accepted government auditing standards, was not intended to enable us 

to express, and we do not express, an opinion on the Trust financial statements. 

Kearney is responsible for the attached independent auditor’s report, dated November 14, 2016, 

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 Chief Financial Officer 

Tom Hanley, Chief Information Officer 

Lori Giblin, Chief Risk Officer 

David Zavada, Engagement Partner, Kearney & Company, P.C. 

250 E Street, SW  Suite 4100  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 
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 (CNCS) National Service Trust Fund (Trust), which comprise the statements 

of financial position as of September 30, 2016 and 2015, 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 and OMB Bulletin No. 15-02 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 

1 
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 CNCS’s Trust as of September 30, 2016 and 2015, 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 

CNCS’s Management Representation Letter by the Chief Executive Officer and Chief Financial 

Officer that its financial statements, including the SBR, are accurate and reliable. CNCS has 

interpreted this requirement to include presenting the Trust SBR as a principal financial 

statement. CNCS’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 2016, Other Information, section of the Fiscal Year 2016 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. 

Other Reporting Required by Government Auditing Standards 

In accordance with Government Auditing Standards and OMB Bulletin No. 15-02, we have also 

issued reports, dated November 14, 2016, on our consideration of CNCS’s internal control over 

financial reporting and on our tests of CNCS’s compliance with provisions of applicable laws, 

regulations, contracts, and grant agreements, as well as other matters for the year ended 

September 30, 2016. The purpose of those reports is to describe the scope of our testing of 

2 
 

 

 

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 14, 2016
 

3 
Page    99
 

Part 4 – Management’s Response 
Memorandum 

Date: November 14, 2016 

To: Deborah Jeffrey, Inspector General 

From: Jeffrey Page, Chief Financial Officer 

Subject: Independent Auditor’s Report 

Thank you for the opportunity to respond to the results of your audit of CNCS’s 

Independent Auditor’s Report. CNCS concurs with the conditions and recommendations 

it contains. 

CNCS remains committed to improving the agency’s internal control framework. While 

the agency has moved forward in addressing these recommendations, management is 

confident that the newly created Office of the Chief Risk Officer (OCRO) will begin to 

provide depth and structure to the nascent program. The Chief Risk Officer (CRO) is 

currently implementing a departmental work plan that will not only ensure consistent 

governance and communication on the status of risk mitigation but also provide the 

agency with the reporting it needs to strengthen its assurance over the effectiveness and 

efficiency of internal controls across the corporation. 
Page    100
 

Section III: Other Information
 
Page    101
 

 

Donations and Contribution 
Page 102

Donations and Contributions 

Under CNCS’s authorizing legislation, CNCS may “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” (42 USC 12651g (a)(2)(A)). The legislation also requires that CNCS report to 

Congress on the nature and amount of donations, as well as on how they were used and disposed 

of (in the case of donated property) in support of its programs and activities. This report fulfills 

these requirements for FY 2016. In addition to accepting paper check donations, CNCS also 

receives donations through Pay.gov, a Treasury program that allows payments to be made to 

federal agencies online. Under the Pay.gov program, CNCS receives 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. 

Status of Gift Fund Balance as of September 30, 2016 

 (dollars in thousands) 

Fund Balance with Treasury (FBWT) $ 395 

Obligation & Commitments (40)

 Funds Available $ 355 

The total FBWT of $ 395 thousand included $17 thousand of current year receipts and $11 

thousand of current year expenses during FY 2016. The donations came from various sources 

from the public. The single largest donation was $15 thousand from the Eli Segal Citizen 

Leaders Program at Brandeis University. Below is the summary of the spending activities: 
Page    103
 

FY 16 Use of Donations and Contributions 

1.1%

50.5%

20.2%

19.3%

8.9%

AmeriCorps 1.1% 

CNCS projects in support of USA 

Freedom Corps 50.5% 

Martin Luther King Jr. Day of 

Service 20.2% 

VISTA support 19.3% 

Miscellaneous Restricted Gifts 

8.9% 
Page    104

National Service Trust Fund Status Report 

Part 1: General Discussion 

Part 2: Trust Fund Financial Statements and Footnotes 
Page    105
 

National Service Trust Fund Status Report 

Part 1: General Discussion 
National Service Trust Fund Status Report-September 30, 2016
 

The National Service Trust Fund (Trust) was established by the National and Community Service Trust Act of 1993 (the 

Act), 42 USC 12601, et seq. to provide funds for Segal AmeriCorps Education Awards (education awards) for eligible 

members 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, pay 

educational expenses at qualified educational institutions, and repay eligible interest expense on student loans. 

The value of an education award depends on the term of service performed by an AmeriCorps member. For Program Year 

2016, 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 $5,775. Completion of a part-time term, requiring a minimum of 900 hours of service, 

entitles an AmeriCorps member to an education award of $2,887. Reduced part-time terms, which provide awards of $500 

to $2,200, are also offered. The education award is indexed to the maximum federal Pell grant; therefore, these amounts 

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 term for which they are earned. Payments are made directly to the educational institutions and/or loan 

holders, as directed by the members and by the institutions. Trust funds are not used to pay member stipends or other grant 

costs. Beginning in Program Year 2010, AmeriCorps State and National and Silver Scholar members who are age 55 or 

older when they begin service may also transfer the education award to a qualified child, grandchild, or foster child. Note 

that although it is authorized, the Silver Scholars program has never been funded. 

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 a grantee, but the 

final grant award has not been executed. For budgetary purposes these positions are considered commitments in the Trust. 

Positions classified as “Planned not Certified” have not yet been approved by the CEO. 

Table 1

AmeriCorps Member Position Award Activity

Program Year 2016 Program Year 2015

Awarded C e rif ie d N o t P lanne d N o t Awarded C e rt if ie d N o t P lanne d N o t

Program Enro lle d N o t Enro lle d A w ard e d C e rt if ie d To t al Enro lle d N o t Enro lle d A w ard e d C e rt if ie d To t al

State & National 27,206 (27,206) - 68,959 68,959 60,470 (2,302) 10,877 (21) 69,024

VISTA 7,036 - -857 0 6,179 6,359 - (180) 1,556 7,735

NCCC 1,239 - (39) - 1,200 1,134 - 66 - 1,200

Total 35,481 (27,206) (896) 68,959 76,338 67,963 (2,302) 10,763 1,535 77,959

The 76,338 Trust positions planned for Program Year 2016 do not include an estimated 1,500 AmeriCorps VISTA members 

(1,300 full time and 200 Summer Associates) who elected an end-of-service cash stipend instead of an education award (an 

option only available to VISTA members). Total estimated member positions for Program Year 2016, including VISTA 

members electing an end-of-service cash stipend, is 77,838. 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 77,959 Trust positions for Program Year 2015 do not include an estimated 1,650 AmeriCorps VISTA members (1,329 

full time and 321 Summer Associates) who elected an end-of-service cash stipend instead of an education award. Total 

estimated member positions for Program Year 2015, including VISTA members electing a stipend, is 79,609. Of the 6,359 
VISTA member positions in the Trust for 2015, 1,835 positions are for Summer Associates who received an education 

award of $1,175. 

Trust Awards 

Since CNCS's inception in 1993, AmeriCorps members have earned over $3.33 billion in Segal AmeriCorps Education 

Awards and used over $2.37 billion of that amount to fund their education and repay student loans. In addition, CNCS has 

made $25.64 million in interest forbearance payments over the same period. Approximately $365.97 million in education 

awards earned have expired without being used. The Trust obligation formula has been adjusted to reflect these expired 

awards. 

Not reflected in the education award balances are the President's Freedom Scholarships to high school students. CNCS no 

longer awards these $500 scholarships to high school students. Under this program, a scholarship was matched with $500 

from a local sponsor for a total of $1,000 to help the student fund a college education. Although the program was 

discontinued in fiscal 2006, students have up to seven years to use their scholarship; therefore, some payments will continue 

to be made over the next fourteen months. President's Freedom Scholarships payments to date have totaled $21.64 million. 
 

 

 

 

 

 

 

 

 

 

 

 

 

Refilled Positions 

CNCS policy allows grantees limited flexibility to refill positions vacated by a member who has served less than 30 

percent of his/her service term, provided that the departing member had not earned a pro-rated education award. To 

prevent over-enrollment, the policy includes “fail safe” triggers that restrict the overall number of refills to no more than 

five percent of awarded positions and suspends refilling altogether if total AmeriCorps enrollment reaches 97 percent of 

awarded positions. Table 3 provides information on the number of positions refilled. Positions in Program Years 2010 

and earlier can no longer be refilled. 

Table 3

Number of Refilled Positions

Program Year Program Year Program Year Program Year Program Year Program Year

2 0 11 2 0 12 2 0 13 2 0 14 2 0 15 2 0 16 F a il-s a fe Trig g e r

Number of Refilled Positions 1,516 1381 1,200 25 0 0 N/A

Refills as a Percent of Awarded State & National Positions 2.1% 2.1% 1.9% 0.0% 0.0% 0.0% 5%

State & National Enrollment as a Percentage of Awarded Positions 97.7% 98.8% 98.5% 106.7% 104.0% 0.0% 97%

Table 4 shows the most significant factors used to calculate Trust obligations on a historical basis. It is important to note 

that Program Year refers to the fiscal year in which positions are awarded to a grantee. Positions are often filled in time 

periods after the year in which they are awarded. For example, a grantee may receive a grant in fiscal year 2015 but not 

fill all positions until fiscal 2016. All positions related to this grant would be considered Program Year 2015 positions, 

irrespective of the fiscal year in which they are filled. 

Table 4

Factors Affecting the National Service Trust Fund

Program Year

2012 2013 2014 2015 2016

Member enrollments in the Trust 74,997 71,145 70,651 68,647 36,427

Percent of members who earned an education award 84.69% 83.87% 83.61% 84.15% 67.54%

Percent of earned education awards used 69.13% 62.20% 49.29% 25.28% 17.84%

Weighted average maturity for investments 1.25% 1.25% 1.25% 1.25% 1.25%

Breakout of enrollment by term type:

Full-time 48% 52% 54% 54% 79%

Part-time 13% 12% 12% 13% 7%

Reduced Part-time 39% 36% 34% 33% 14%

The Program Year data used throughout these tables reflect all enrollments recorded through the reporting period. Prior 

year enrollment numbers may change slightly over time due to corrections or late reporting by grantees. The percentage 

of members earning an award in Table 6 is calculated by taking the number of members earning an award divided by the 

total members enrolled less members still earning. 

Tables 5 and 6 present information on the budgetary resources and obligations of the Trust, including the Trust Reserve. 

The schedules present information on a budgetary basis, which represents the accounting used to determine compliance 

with the Anti-Deficiency Act. CNCS records Trust obligations at the time it awards AmeriCorps State & National 

grants or at the time it enters into an enforceable agreement with AmeriCorps VISTA and NCCC members. 
Table 5

Corporation for National and Community Service

National Service Trust

Schedule of Budgetary Activity for the Period Ended September 30, 2016

 R e c o v e ry A c t Trus t Othe r Trus t F EM A C o rps Ge ne ra l F und C o ns o lida te d 

 Funds Available at October 1 $ 1 ,882 $ 3 $ 286 $ 7 1,163 $ 73,334

 Budgetary Resources 

 Fiscal Year Appropriation 24 - 16 2 44,774 2 44,814

 Other Collections-Federal 3 ,075 3 ,075

 Apportioned- Subsequent( Reserve) 3 ,500 4 6,697 5 0,197

 Collection of Audit Receivables - - - 110 110

 Less: Additions to Trust Reserve - - - - - 

 Total Budgetary Resources 5 ,406 3 3 ,377 3 62,744 3 71,530

 Obligations 

 Education Awards ( 23) - ( 2,767) ( 163,669) ( 166,459)

 Interest Forbearance ( 1) - ( 104) ( 6,334) ( 6,439)

 Total Obligations ( 24) - ( 2,871) ( 170,003) ( 172,898)

 Commitments 

 Education Awards - - - ( 36,165) ( 36,165)

 Interest Forbearance - - - (1,499) ( 1,499)

 Total Commitments - - - ( 37,664) ( 37,664)

 Apportioned- Subsequent (Reserve) (3,500) (46,697) (50,197)

 Unapportioned ( 4) - - ( 4)

 Funds Available for Obligation $ 1,878 $ 3 $ 506 $ 1 08,380 $ 110,767
Table 6

Corporation for National and Community Service

National Service Trust

Schedule of Trust Obligations as of September 30, 2016

 Resources R e c o v e ry A c t Trus t Othe r Trus t F EM A C o rps Ge ne ra l F und C o ns o lida te d 

 Fund Balance with Treasury $ 602 $ 56 $ 499 $ 2,870 $ 4,027 

 Investments, Net 8,713 - 10,414 802,733 821,860 

 Interest Receivable - - - 792 792 

 Accounts Receivable - - - 200 200 

 Subtotal 9,315 56 10,913 806,595 826,879 

 Less: 

 Cumulative Trust Reserve (3,500) - - (46,697) (50,197)

 Receivables Not Available for Obligation (13) - (14) (1,708) (1,735)

Unapportioned (4) - - - (4)

 Total Resources 5,798 56 10,899 758,190 774,943 

 Unliquidated Obligations 

 Education Awards (3,819) (50) (10,368) (605,339) (619,576)

 Interest Forbearance (101) (2) (25) (6,808) (6,936)

 President's Freedom Scholarships - - - - - 

 Total Unliquidated Obligations (3,920) (52) (10,393) (612,147) (626,512)

 Commitments 

 Education Awards - - - (36,165) (36,165)

 Interest Forbearance - - - (1,499) (1,499)

 Total Commitments - - - (37,664) (37,664)

 Funds Available for Obligation $ 1,878 $ 4 $ 506 $ 108,379 $ 110,767 
Enrollment Activity 

Table 7 presents cumulative data to date on Trust enrollments and education awards earned and used for 

Program Years 1994 through 2016, as well as Recovery Act positions. 

Table 7

Trust Enrollment Activity – Program Years 1994 through 

Members Members Earning Program Year Type Earned an Award Did Not Earn Amount Earned Amount Used

Enrolled or Not Exited

1994 Full Time 342,572 1 269,393 73,178 1,239,413,396 994,814,449

through Part-time 144,994 0 95,045 49,949 216,389,577 154,561,248

2007 Reduced Part-time 173,924 1 135,975 37,948 150,492,442 115,625,071

 Total 661,490 2 500,413 161,075 $1,606,295,414 $1,265,000,768 

2008 Full Time 32,366 0 28,185 4,181 131,713,558 110,160,048

2008 Part-time 10,678 1 8,110 2,567 18,841,248 13,688,538

2008 Reduced Part-time 27,007 0 21,877 5,130 24,992,292 18,574,249

 Total 70,051 1 58,172 11,878 $175,547,097 $142,422,834 

2009 Full Time 31,040 3 27,329 3,708 127,717,890 104,880,921

2009 Part-time 9,877 0 7,590 2,287 17,636,065 12,682,691

2009 Reduced Part-time 28,867 2 23,306 5,559 26,487,400 19,715,770

 Total 69,784 5 58,225 11,554 $171,841,356 $137,279,382 

Rec_Act Full Time 7,908 0 6,654 1,254 31,022,831 24,485,066

Rec_Act Part-time 1,662 0 1,221 441 2,818,344 1,864,288

Rec_Act Reduced Part-time 4,297 0 3,592 705 4,186,393 2,999,836

 Total 13,867 0 11,467 2,400 $38,027,568 $29,349,190 

2010 Full Time 37,721 6 33,286 4,429 175,564,059 138,628,196

2010 Part-time 11,430 4 8,784 2,642 22,961,157 15,428,757

2010 Reduced Part-time 39,210 4 31,758 7,448 38,778,808 27,205,184

 Total 88,361 1 4 73,828 14,519 $237,304,024 $181,262,136 

2011 Full Time 35,764 2 31,463 4,299 170,181,310 128,150,693

2011 Part-time 10,351 2 8,377 1,972 22,515,239 13,975,709

2011 Reduced Part-time 33,085 2 27,116 5,967 35,393,399 24,561,486

 Total 79,200 6 66,956 12,238 $228,089,947 $166,687,888 

2012 Full Time 36,275 7 31,894 4,374 171,051,486 121,700,459

2012 Part-time 9,577 2 7,770 1,805 21,023,448 12,197,606

2012 Reduced Part-time 29,145 7 23,840 5,298 31,578,800 20,709,583

 Total 74,997 1 6 63,504 11,477 $223,653,734 $154,607,649 

2013 Full Time 37,047 16 32,233 4,798 173,354,049 110,697,587

2013 Part-time 8,784 6 6,883 1,895 18,650,904 9,348,803

2013 Reduced Part-time 25,314 33 20,509 4,772 27,579,886 16,525,027

 Total 71,145 5 5 59,625 11,465 $219,584,840 $136,571,417 

2014 Full Time 37,971 77 32,740 5,154 178,918,182 90,405,715

2014 Part-time 8,662 38 6,735 1,889 18,524,612 6,931,428

2014 Reduced Part-time 24,018 214 19,318 4,486 26,321,338 12,947,503

 Total 70,651 329 58,793 11,529 $223,764,132 $110,284,645 

2015 Full Time 37,148 2,834 29,061 5,253 161,073,478 41,898,148

2015 Part-time 9,081 2,311 5,135 1,635 14,195,010 2,272,539

2015 Reduced Part-time 22,418 4,548 15,412 2,458 21,025,231 5,448,466

 Total 68,647 9,693 49,608 9,346 $196,293,719 $49,619,152 

2016 Full Time 28,775 27,116 587 1,072 3,173,129 442,090

2016 Part-time 2,694 2,658 0 36 0 0

2016 Reduced Part-time 4,958 2,858 1,976 124 2,412,871 554,396

 Total 36,427 32,632 2,563 1,232 $5,586,000 $996,486 

Cumulative to Date 1,304,620 42,753 1,003,154 258,713 3,325,987,832 2,374,081,548
Page    112

National Service Trust Fund Status Report 

Part 2: Financial Statements and Footnotes 

National Service Trust Statement of Financial Position 

National Service Trust Statement of Operations and Changes in Net Position 

National Service Trust Statement of Cash Flow 

National Service Trust Statement of Budgetary Resources 

Footnotes 

* Please also see the “Independent Auditor's Report on the National Service Trust Fund Financial 

Statements” (OIG Report 17-02) in Section II Part 3 “Independent Auditor’s Report” 
National Service Trust Financial Statements 
2016 2015

Assets

Fund Balance with Treasury (Note 2) $ 4,027 $ 8,420

Investments and Related Receivables (Note 3) 822,652 751,464

Accounts Receivable, Net (Note 4) 200 261

Total Assets $ 826,879 $ 760,145

Liabilities

Service Award Liability (Note 5) $ 396,344 $ 454,890

Net Position

Cumulative Results of Operations (Note 6) 430,535 305,255

Total Liabilities and Net Position $ 826,879 $ 760,145

Corporation for National and Community Service

National Service Trust Statement of Financial Position 

As of September 30, 2016 and 2015

(Dollars in Thousands)

The accompanying footnotes are an integral part of these financial statements
Corporation for National and Community Service
 

National Service Trust Statement of Operations and Changes in Net Position 

For the Periods Ended September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

Revenue 

Appropriations Received by the National Service Trust (Note 7) $ 220,000 $ 209,618 

Transfer in Program Funds 21,352 7,889 

Interest 3,964 2,747 

Other Revenue 3,185 5,894 

 Total Revenue $ 248,501 $ 226,148 

Expenses 

Service Award Expense (Note 8) $ 123,159 $ 191,575 

Write off/Recovery of Receivables 62 (33) 

Other Expenses - 28 

 Total Expenses 123,221 191,570 

Net of Revenue Over Expenses $ 125,280 $ 34,578 

Net Position 

Net of Revenue Over Expenses $ 125,280 $ 34,578 

Net Position, Beginning Balance 305,255 270,677 

Net Position, Ending Balance (Note 6) $ 430,535 $ 305,255 

The accompanying footnotes are an integral part of these financial statements. 
Corporation for National and Community Service
 

National Service Trust Statement of Cash Flows
 

For the Periods Ended September 30
 

(Dollars in Thousands) 

2016 2015 

CASH FLOWS FROM OPERATING ACTIVITIES 

Net of Revenue Over Expenses $ 125,280 $ 34,578 

Adjustments Affecting Cash Flow:

 Amortization of Premium/Discount on Investments (197) (1,606)

Appropriations Received in Trust (241,352) (217,507)

Decrease/(Increase) in Accounts Receivable 61 (32)

Decrease/(Increase) in Interest Receivable (305) 182

Increase/(Decrease) in Trust Liability (58,546) 759

Total Adjustments (300,339) (218,204) 

Net Cash Provided/(Used) by Operating Activities (175,059) (183,626) 

CASH FLOWS FROM INVESTING ACTIVITIES 

Sale of Securities 1,129,620 981,391 

Purchase of Securities (1,200,306) (1,013,458) 

Net Cash Provided/(Used) in Investing Activities (70,686) (32,067) 

CASH FLOWS FROM FINANCING ACTIVITIES 

Appropriations Received, Net of Trust 241,352 217,507 

Net Cash Provided by Financing Activities 241,352 217,507 

Net Increase/(Decrease) in Fund Balance with Treasury (4,393) 1,814 

Fund Balance with Treasury, Beginning 8,420 6,606 

Fund Balance with Treasury, Ending (Note 2) $ 4,027 $ 8,420 

The accompanying footnotes are an integral part of these financial statements. 
Corporation for National and Community Service
 

National Service Trust Statement of Budgetary Resources
 

For the Periods Ended September 30, 2016 and 2015
 

(Dollars in Thousands) 

2016 2015 

Budgetary Resources 

Unobligated, balance brought forward, October 1 $ 123,532 $ 99,021 

Appropriation Discretionary (trust funds) 241,352 217,507 

Appropriation Mandatory (trust funds) 3,461 3,933 

Appropriations (discretionary and mandatory) 244,813 221,440 

Spending authority from offsetting collections 3,185 5,894 

Total Budgetary Resources $ 371,530 $ 326,355 

Status of budgetary resources 

New obligations and upward adjustments $ 172,898 $ 202,823 

Unobligated balance, end of year

 Apportioned, unexpired accounts (Note 2) 198,628 73,335

Unapportioned, unexpired accounts (Note 2) 4 50,197 

Total unobligated balance, end of year 198,632 123,532 

Total Budgetary Resources $ 371,530 $ 326,355 

Change in Obligated Balance

 Unpaid obligations 

Unpaid obligations, brought forward, October 1 $ 635,320 $ 623,340 

New obligations and upward adjustments 172,898 202,823 

Outlays (gross) (181,706) (190,843) 

Unpaid Obligations, end of year $ 626,512 $ 635,320

Memorandum (non-add) entries: 

Obligated balance, start of year $ 635,320 $ 623,340 

Obligated balance, end of year (Note 2) $ 626,512 $ 635,320

 Budget Authority and Outlays, net 

Budgetary authority, gross (discretionary and mandatory) $ 247,998 $ 227,334 

Actual offsetting collections (3,185) (5,894) 

Budget Authority, net (discretionary and mandatory) $ 244,813 $ 221,440 

Outlays, gross (discretionary and mandatory) 181,706 190,843 

Actual offsetting collections (3,185) (5,894) 

Outlays, net (discretionary and mandatory) $ 178,521 $ 184,949 

Distributed offsetting receipts (241,352) (217,507) 

Agency Outlays, net (discretionary and mandatory) $ (62,831) $ (32,558) 

The accompanying footnotes are an integral part of these financial statements. 
Footnotes for National Service Trust Financial Statements 
NOTE 1—Summary of Significant Accounting Policies 

A. REPORTING ENTITY 

The National Service Trust Fund (the Trust) was established by the National and Community Service 

Trust Act of 1993 (The Act), 42 USC 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, 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 the Corporation 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 the Corporation 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, where sponsoring organizations are responsible for providing 

member subsistence and other costs, and the Corporation provides an education award and a small 

amount for administrative costs. 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 Corporation 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. FINANCIAL 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 that financial 

statements prepared by certain government corporations in conformity with the accounting standard 
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 the CNCS. 

CNCS’s consolidation policy requires the consolidation of all funds administered by CNCS, as delineated 

in Note 1A – Reporting Entity. 

D. BUDGETS AND BUDGETARY ACCOUNTING 

The activities of the National Service Trust Fund are primarily funded through the annual Departments of 

Labor, Health and Human Services, 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 accrualbased 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, 2016, 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 (the 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 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. 

G. INVESTMENTS AND RELATED RECEIVABLES 

By law, CNCS may invest the funds of the National Service Trust in interest-bearing Treasury securities 

guaranteed by the United States as to principal and interest. These Treasury securities are referred to as 

“market-based,” since they mirror actual Treasury securities sold on the open market. They consist of 

Treasury notes, bonds and bills. 

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, and are amortized using the level yield/effective interest method for the notes and 

straight line method for the bills. Interest receivable represents amounts earned, but not received on 

investments held at year-end. Prepaid interest is the amount of interest earned on a security since the date 
of its last interest payment, up to the date the security is purchased by CNCS. Such interest, if any, at 

year-end is included in the interest receivable balance. 

H. CASH EQUIVALENTS 

For purposes of the statement of cash flows, CNCS considers all interest-bearing 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 

Appropriation Used. CNCS recognizes its use of appropriated capital as revenue at the time it is 

expended or accrued to pay program or administrative expenses. Appropriations expended for property 

and equipment are recognized as used when the property is purchased. Appropriated capital not expended 

within five fiscal years after it became available for obligation is cancelled. Unpaid obligations recorded 

against cancelled appropriated capital are paid from currently available appropriated funds as payments 

become due. Appropriations received for the CNCS Trust are recognized as revenue when received in the 

Trust Fund. Trust appropriations do not expire with the passage of time and are retained by CNCS in the 

Trust until used for eligible education service award purposes. 

Interest on Investments. Interest income is recognized when earned. Treasury notes and bonds pay 

interest semi-annually, based on the stated rate of interest. Interest on Treasury bills is paid at maturity. 

Interest income is adjusted by amortization of premiums and discounts using the level yield/effective 

interest method for the notes and straight line method for the bills. 

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. 
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 

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. 

P. COMPARATIVE DATA 

Certain FY 2015 amounts have been reclassified to conform to the FY 2016 presentation. 

Q. 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 of 

the National Service Trust Fund once funds are exhausted for their intended purpose. Corporation 

management believes the risk of such an occurrence is remote. 
NOTE 2 – Fund Balance with Treasury 

U.S. Government cash is accounted for on an overall consolidated basis by the U.S. Department of 

Treasury. The Fund Balance with Treasury line on the Statement of Financial Position consists of Trust 

Funds of $4.0 million in FY 2016 and $8.4 million in FY 2015 that are considered restricted. 

Trust funds are accounts designated by law for receipts earmarked for specific purposes and for the 

expenditure of these receipts. Funds from the National Service Trust may be expended for the purpose of 

providing an education award or student loan interest forbearance payment and are made directly to a 

qualified institution (college, university, or other approved educational institution, or a lending institution 

holding an existing student loan) as designated by the participant. The National Service Trust also pays 

awards under the President’s Freedom Scholarship, Summer of Service, and Silver Scholar programs. 

Fund Balance with Treasury as of September 30 

(dollars in thousands) 

Type 2016 2015 

Obligated Not Yet Disbursed $ 626,512 $ 635,320 

Unobligated Available 198,628 73,335 

Unobligated Unavailable 4 50,197 

Investment* (821,117) (750,432)

 Total $ 4,027 $ 8,420 

* Investments include purchases, sales, premiums, and discounts 
NOTE 3 – Investments and Related Receivables 

 Investments and Related Receivables as of September 30 

 (dollars in thousands) 

2016 2015

 Investments, Carrying Value $821,860 $ 750,977 

 Interest Receivable 792 487 

 Total $ 822,652 $ 751,464 

Amortized Cost and Fair Value of Investment Securities

as of September 30, 2016

(dollars in thousands)

Securities Amortized Cost 

Unrealized 

Gains/(Losses) Fair Value 

Notes $ 541,519 $ 463 $ 541,982 

Bills 280,341 47 280,388 

*Total $ 821,860 $ 510 $ 822,370 

Amortized Cost and Fair Value of Investment Securities 

as of September 30, 2015 

(dollars in thousands)

Securities Amortized Cost 

Unrealized 

Gains/(Losses) Fair Value 

Notes $ 328,823 $ 652 $ 329,475 

Bills 422,154 142 422,296 

Total $ 750,977 $ 794 $ 751,771 

As of September 30, 2016, the notes held at year-end had an interest rate range of 0.375% to 0.875% 

and an outstanding maturity period of approximately 31 days to 2.5 years. The bills held at year-end 

had an interest rate range of 0.215% to 0.535% and were all due to mature within 364 days. The par 

values of notes range from $3.6 million to $148.3 million. The fair value of the bills and notes is based 

on bid and ask prices quoted by Treasury as of September 30, 2016 and 2015. 

Since FY 2003, CNCS has set aside in reserve a portion of the funds in the National Service Trust for 

use in the event that its estimates used to calculate obligational amounts for education awards prove to 

be too low. This reserve was originally required by the Strengthen AmeriCorps Program Act, and is 

now required by section 149(b) of the National and Community Service Act (42 U.S.C. 12606(b)). As 

of September 30, 2016, $50.2 million of CNCS’s investment account has been set aside for this reserve. 
NOTE 3 – Investments and Related Receivables---Continued 

Maturation of Securities Held as of September 30 

(dollars in thousands) 

2016 2015 

Held- toMaturity 

Securities Amortized Costs Fair Value Amortized Cost Fair Value 

Due in 1 year or 

less $ 721,874 $ 722,133 $ 523,225 $ 523,435 

Due after 1 year 

up to 5 years 99,986 100,237 227,752 228,336 

Total $ 821,860 $ 822,370 $ 750,977 $ 751,771 
NOTE 4 –Accounts Receivables, Net 

 Accounts Receivable as of September 30 

(dollars in thousands) 

Trust Fund Total 

2016

 Accounts receivable $ 305 $ 305

 Less: allowance for doubtful accounts (105) (105)

 Accounts Receivable, Net $ 200 $ 200 

2015

 Accounts receivable $ 355 $ 355

 Less: allowance for doubtful accounts (94) (94)

 Accounts Receivable, Net $ 261 $ 261 
  

NOTE 5 – Trust Service Award Liability 

GAAP requires the recording of a liability, which is at a point in time estimate, for the unpaid earned and 

expected-to-be-earned education award and interest forbearance costs that are likely to be paid. GAAP 

estimates are for members who have already completed at least 15 percent of the minimum service 

requirement and who therefore, have served enough hours to qualify for at least a partial education 

awards. 

The estimate of the Service Award Liability under GAAP includes factors that take account the effect of 

members who enroll but do not earn an award and members who enroll but do not earn an award but do 

not use it within the period of availability. CNCS estimates that up to 86 percent of members earning an 

award will eventually use it. 

Individuals who successfully complete terms of service in AmeriCorps programs earn education awards, 

which can be used to make payments on qualified student loans or for educational expenses at qualified 

educational institutions. The Education award must be used within seven years of completion date of an 

approved term of national service. If the education award is a transferred award or Summer of Service 

award the use period will be ten years. These awards are paid from the National Service Trust Fund. 

The National Service Trust also pays forbearance interest on qualified student loans during the period 

members perform community service, as well as awards under the Presidential Freedom Scholarship 

Program. The award liability components related to education awards and interest forbearance have been 

adjusted, based on historical experience, to reflect the fact that some eligible participants may not use 

these benefits. The Service Award was composed of the following as of September 30: 

Service Award Liability as of September 30 

(dollars in thousands) 

2016 2015

 Education awards $ 2,736,947 $ 2,647,027

Interest forbearance 112,005 103,258 

 President's Freedom Scholarship Program 21,643 22,527 

 Total estimated Service Award Liability 2,870,595 2,772,812 

 Less: cumulative awards paid (2,474,251) (2,317,922) 

Total $ 396,344 $ 454,890 

The Net Service Award Liability as of September 30, 2016 decreased by approximately $58.6 million 

from the Net Service Award Liability as of September 30, 2015. A large portion of this reduction, 

approximately $48.6 million, is attributed to a revised statistical method. The remaining reduction is due 

to current year award payments and expirations in excess of current year enrollments. 
NOTE 6 – Net Position 

Net position consists of cumulative results of operations. The cumulative result of operations for the Trust 

Fund was $ 430.5 million in FY 2016 and $305.3 million in FY 2015, respectively. 

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 financial position of the Trust Fund in the amounts of $430.5 million in 

FY 2016 and $305.3 million in FY 2015 is temporarily restricted. 
NOTE 7 – Appropriations Received by the National Service Trust 

For FY 2016, the National Service Trust received $220.0 million under the Consolidated Appropriations 

Act, 2016 (Public Law 114-113). For FY 2015, the National Service Trust received $209.6 million under 

the Consolidated Appropriations Act, 2015 (Public Law 113-235). The acts also authorized CNCS to 

transfer additional amounts from subtitle C program funds to the National Service Trust to support the 

activities of national service participants. CNCS transferred $ 21.4 million and $ 7.9 million to the Trust 

under this provision in FY 2016 and FY 2015, respectively. Accordingly, the National Service Trust 

received a total funding of $241.4 million in FY 2016, and $217.5 million in FY 2015, respectively. 
NOTE 8 – Expenses 

Effective FY 2016, CNCS used a revised cost accounting methodology to allocate the costs among its 

major programs and at the sub-program level. 

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. 

 Expenses by Sub-Program for the Period Ended September 30, 2016 

 (dollars in thousands) 

 AmeriCorps 

Type State/National NCCC VISTA Total 

Service Award Expense $ 82,886 $ 14,902 $ 25,371 $ 123,159

Total Expenses $ 82,886 $ 14,902 $ 25,371 $ 123,159

 Expenses by Sub-Program for the Period Ended September 30, 2015 

 (dollars in thousands) 

 AmeriCorps 

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
NOTE 9 – Subsequent Events 

CNCS has evaluated subsequent events through November 14, 2016 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 Fiscal Year-End 

Trust Fund undelivered orders at September 30, 2016 and 2015 were $230.2 million and $180.4 million, 

respectively. 
Page    133
 

Detailed Summary of Management Assurances 
Detailed Summary of Management Assurances 

TABLE 1: SUMMARY OF FINANCIAL STATEMENT AUDIT 

Audit Opinion Unmodified 

Restatement No 

Material Weakness Beginning 

Balance 

New Resolved Consolidated Ending 

Balance 

0 0 0 0 0 

Total Material 

Weaknesses 

0 0 0 0 0 

TABLE 2: SUMMARY OF MANAGEMENT ASSURANCES
 

Effectiveness of Internal Control over Reporting (including external financial reporting) 

(FMFIA § 2) 

Statement of Assurance Unmodified 

Restatement No 

Material Weakness Beginning 

Balance 

New Resolved Consolidated Ending 

Balance 

0 0 0 0 0 

Total Material 

Weaknesses 

0 0 0 0 0 

Effectiveness of Internal Control over Operations (FMFIA § 2) 

Statement of Assurance Unmodified 

Restatement No 

Material Weakness Beginning 

Balance 

New Resolved Consolidated Ending 

Balance 

0 0 0 0 0 

Total Material 

Weaknesses 

0 0 0 0 0 

Effectiveness of Internal Control over Compliance (FMFIA § 2) 

Statement of Assurance Unmodified 

Restatement No 

Material Weakness Beginning 

Balance 

New Resolved Consolidated Ending 

Balance 

1i 0 1 0 0 

Total Material 

Weaknesses 

1 0 1 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4) 

Statement of Assurance Unmodified 

Restatement No 

Material Weakness Beginning 

Balance 

New Resolved Consolidated Ending 

Balance 

0 0 0 0 0 

Total Material 

Weaknesses 

0 0 0 0 0 
                                 

                    

Overall Assessment of CNCS System of Internal Control 

System Evaluation Designed & 

Implemented 

(Yes/No) 

Operating Effectively 

Control Environment Yes Effective 

Risk Assessment Yes Effective 

Control Activities Yes Effective 

Information and Communication Yes Effective 

Monitoring Yes Effective 

Are all components operating together in an 

integrated Manner? 

Yes Effective 

Overall Evaluation of CNCS System of Internal Control 

Overall Evaluation Operating Effectively 

Is the overall CNCS system of 

internal control effective? 

Yes 

1 In FY 2015, FISMA evaluation noted a number of significant deficiencies which under OMB guidance at

the time must be reported as material weakness under FMFIA.
Page    136
 

Improper Payments 

The following pages are intended to show the report of Improper Payments 
Improper Payments Reporting 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

I. Risk Assessment

Prior to FY 2016, CNCS designated the

following four grant programs susceptible to

significant improper payments: AmeriCorps

State and National, the Foster Grandparent

Program (FGP), the Senior Companion

Program (SCP), and the Retired and Senior

Volunteer Program (RSVP). CNCS performed

risk assessments on its direct programs and

activities in FY 2015 to meet the improper

payment risk assessment requirements under

IPERIA and OMB Circular A‐123, Appendix C.

The risk assessment results did not yield any

additional susceptible programs or activities.

CNCS will re‐perform risk assessments on

those programs and activities according to the

OMB Circular A‐123, Appendix C requirements.  

The “Performance Audit of the Corporation for

National and Community Service’s Compliance

with The Improper Payments Elimination and

Recovery Act of 2010 (IPERA) for Fiscal Year

2015” recommended CNCS re‐assessthe Social

Innovation Fund (SIF) grant program in FY

2016. Previously, CNCS used a combination of

qualitative and quantitative measures to

determine susceptibility. Since CNCS

1

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, unless the agency has an approved

alternative sampling plan.  A‐123, Appendix C,

also requires agencies with programs

susceptible to significant improper payments

to identify root causes of improper payments

and implement corrective action plans.

performed quantitative sampling on the SIF

program in FYs 2014 and 2015 and determined

the program was not susceptible, CNCS used

only a qualitative risk assessment in FY 2016.

Per OMB Circular A‐123, Appendix C, Part

I.A.9.b, CNCS used the following qualitative risk

factors to determine if SIF was susceptible to

significant improper payments:

1. Whether the program reviewed is new to the

agency;

2. The complexity of the program reviewed,

particularly with respect to determining

correct payment amounts;

3. The volume of payments made annually;

4. Whether payments or payment eligibility

decisions are made outside of the agency, for

example, by a state or local government, or a

regional federal office;

5. Recent major changes in program funding,

authorities, practices, or procedures;

6. The level, experience, and quality of training

for personnel responsible for making program

eligibility determination or certifying that

payments are accurate;
2

7.	 Inherent risks of improper payments due to

the nature of agency programs or operations;

8.	 Significant deficiencies in the audit reports of

the agency including, but not limited to, CNCS

Inspector General or Government

Accountability Office (GAO) audit report

findings, or other relevant management

findings that might hinder accurate payment

certification; and

9.	 Results from prior improper payment work.

After assessing these qualitative factors, CNCS

determined that the SIF program is not

susceptible to significant improper payments.

CNCS will re‐evaluate this program on a three

year cycle according to OMB Circular A‐123,

Appendix C requirements.

FY 2016 Risk Assessment Results

Program Risk Assessment Last Performed Results

SIF FY 2015 Not Susceptible  
3

II. Statistical Sampling

CNCS usesthe same sampling methodology for

all four susceptible programs – AmeriCorps

State and National, FGP, SCP, and RSVP. Since

CNCS’s grantees report aggregate federal

expenditures on a six month basis, CNCS must

use an iterative, multi‐stage sampling

methodology, which is briefly described below.

CNCS contracted with an independent

accounting firm, KPMG, in FY 2016 to

implement a more straightforward, simple

random sampling data processing

methodology. However, given the nature of

the process, CNCS lacks the capacity to

complete the statistical requirements, as

required by OMB A‐123, Appendix C. OMB A‐

123, Appendix C requires programs to report

estimates at a 90% +/‐ 2.5% statistical

confidence. Any deviation from this requires

an OMB approved sampling methodology.  

CNCS does not currently have an approved

alternative sampling methodology by OMB.

Given the current staffing constraints, CNCS

targeted a +/‐ 25% confidence interval in FY

2016. Additionally, CNCS performed

component testing in the grant compliance

area that yields that highest number of

improper payments – National Service

Criminal History Checks (NSCHC). CNCS will

work with OMB in FY 2017 to adopt an

acceptable alternative methodology. CNCS

plans to acquire additional personnel to meet

the staffing needs of an approved alternative

sampling methodology.

IPERIA Testing

In FY 2016, KPMG implemented a multi‐stage

sampling method for CNCS to select a sample

of grantee payments from each of CNCS’s four

cost reimbursement grant programs, namely,

AmeriCorps State and National, FGP, (RSVP,

and SCP, for the FY 2016 improper payments

assessment. KPMG followed the same

sampling approach in selecting the samplesfor

each program.

In the first stage, KPMG selected a random

sample of Federal Financial Reports (FFRs)

from each program using a probability

proportional to size (PPS) sampling

methodology, specifically PPS with

replacement.1 For each sampled FFR, CNCS

sampled from the supporting General Ledger

(GL) transactions using a multi‐stage sample

selection approach. CNCS continued with

selectionsfrom subsidiary ledgers until a single

transaction, which represents a testable

payment, was selected. This was considered

the final stage.  

KPMG estimated the required sample sizes for

the grantee programs assuming a relative

precision target of 25.0 percent at the two‐

sided confidence level of 90.0 percent and a

non‐response rate of 10.0 percent2 for each

program. The table below outlines the sample

sizes for each program based on a non‐

response rate of 10 percent.  

1 In theory, the PPS with replacement sampling

method is similar to the monetary unit sampling,

which is frequently used by auditors to test

financial accounts. With PPS with replacement, the

probabilities of selection remain proportional to

sizes at each selection and the formulas for the

estimated variances of the estimates are straight

forward (refer to Cochran’s Sampling Techniques,

3rd Edition, Chapter 9A, for details). In practice,

these two approaches usually lead to results with

minimal difference. 2 CNCS considers a non‐response rate below 10% to

be non‐material. .
4

         

           

               

           

Sample Size 

Program N (Universe) (+/-25.0% 

Precision) 

AmeriCorps 342 4 

FGP 528 24 

RSVP 1,220 32 

SCP 289 24 

Total 2,379 84 

Extrapolation of Sample Findings for FY 2016

CNCS identified and extrapolated three types

of errors in the grantee payments population.

The first type of error occurred when CNCS did

not receive the requested support for the FFR

selected in the first stage. These errors were

defined as “Non‐Response Errors.” The second

type of error occurred when the total amount

on the documentation from the grantee’s

accounting system (General Ledger, Trial

Balance, etc.) did not match the dollar amount

submitted on the FFR or reported for the prior

stage. These errors were defined as

“Unmatched Reporting Errors.” The third type

of error occurred when CNCS determined that

the sampled transaction is an improper

payment, meaning a review of the supporting

documentation provided by the grantee was

insufficient. The error extrapolation method

was consistent with the multi‐stage sample

design.

NSCHC file Component Testing

KPMG randomly selected, in the same manner

described above, additional FFRsin each of the

four susceptible grant programs. CNCS

randomly selected two staff, member, or

volunteer files from the each of selected

grantees. These files were assessed for NSCHC

compliance only. CNCS tracked all aspects of

NSCHC compliance for its review – including

proof of government issued identification,

written consent, the ability to challenge any

findings, etc. However, CNCS only considered

files improper, if the file was non‐compliant in

an area that is tied to eligibility.
5

III. Improper Payment Reporting

Table 1

Improper Payment ReductionOutlook

($ inmillions)

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 $

 

AmeriCorps State and National 

$222.40 6.5% $14.50 $243.97 n/c3 n/c n/c $0 $243.97 5.5% $13.42 

FGP 

$80.17 n/c n/c $78.65 34.1% $26.82 $26.82 $0 $78.65 33.1% $26.54 

RSVP $43.26 n/c n/c $41.46 22.9%

$9.48 $9.48

$0 $41.46 21.9% $9.08 

SCP n/r4 n/r n/r $31.88 33.2% $10.60 $10.60 $0 $31.88 32.2% $10.10 

TOTAL 

$345.83 6.5% $14.50 $395.96 30.01% $46.90 $46.90 $0 $395.96 23.18% $59.14 

*n/c

3 N/C (not completed): CNCS’s sample size and testing results did not yield results within our self‐prescribed confidence interval. As a result, the improper p4 N/R (not reported): SCP was not deemed susceptible as the risk assessment was performed in FY 2015.
6

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7
 

           

     

IV. Improper Payment Root Cause Categories

CNCS’s improper payments fall into the

category “Insufficient Documentation to

Determine,” which occurs when there is

insufficient supporting documentation

necessary to verify the accuracy of a payment

identified in the improper payment testing

sample. The payments represented in this

category are characterized by missing or

inadequate administrative documents, such as

timesheets. Additionally, in those cases where

grantees did not perform required National

Service Criminal History Checks on national

service participants prior to the tested

transaction or did not provide documentation

on all required components. CNCS did not find

any instances of ineligible individualsserving in

its programs through IPERIA testing.  

Improper Payment Root Cause Category Matrix

($ in millions)

Reason for Improper Payment AmeriCorps State and National FGP RSVP SCP 

Overpayments Underpayments Overpayments Underpayments Overpayments Underpayments Overpayments Underpayments 

Program Design or Structural Issue 

Inability to Authenticate Eligibility 

Death Data 

Financial Data 

Failure to Excluded Party Verify: Data 

Prisoner Data 

Other Eligibility 

Data 

Federal Agency 

Administrative 

or Process State or Local 

Error Made by: Agency 

Other Party 

Medical Necessity 

Insufficient Documentation to $26.82 $9.48 $10.60 

Determine 

Total n/c $26.82 $9.48 $10.60 

See Table 1 for additional notations.
8

V. Corrective Actions

Insufficient Documentation to Determine

The majority of improper payments CNCS has

identified over the past are non‐compliant

National Service Criminal History Checks,

largely because they were not completed

timely. There is a regulatory requirement that

grantees complete or initiate all checks prior to

all national service participants’ start of

service. In FY 2016, CNCS continued to

strategize solutions and implement corrective

actions to improve grantees’ compliance with

criminal history check laws, regulations, and

policies with enhanced training, consistent

enforcement, and the addition of the FBI

Channeler in an effort to reduce barriers that

impede grantee compliance. This is an ongoing

effort for the agency.

Actions Taken in FY 2016  

	 As of April 1 2015, CNCS established an agency‐

wide criminal history check enforcement

policy, which includes cost disallowance in

most cases of non‐compliance.

	 In February 2016, CNCS added an FBI

Channeler, which allows grantees who cannot

access FBI fingerprint background checks

through their designated state repositories to

access this check, eliminating the need for FBI

check exemptions.

	 CNCS launched a new criminal history check

eCourse. CNCS staff is required to take this

training along with one individual from each

awarded grant. This is an annual requirement.

	 The existing criminal history check website on

CNCS’s Knowledge Network was redesigned in

a more user‐friendly manner.

	 CNCS provided 31 trainings to staff and

grantees in FY2016.

	 CNCS has added an additional staff person

criminal history checks, which should aid in

providing technical assistance to the field.

	 CNCS recently moved the criminal history

check program into the Office of the Chief Risk

Officer.

Planned Corrective Actions  

	 CNCS Senior Leadership is currently assessing

the goals and objectives of the criminal history

check program, which will streamline the goals

going forward.

	 CNCS will revise the NSCHC tools in FY 2017 to

respond to evolving needs.

	 CNCS is working on a state‐by‐state website

guide to assist in grantees understanding of

state processesfor obtaining compliant NSCHC

checks in each state

	 CNCS is exploring the options of utilizing

contract support to further assist in obtaining

required NSCHC reviews.

	 CNCS will continue to regularly offer trainings

to staff and grantees.

Non‐Criminal History Check Related Findings

Past CNCS has primarily focused on resolving

NSCHC findings from the IPERIA assessment.

CNCS’s new Portfolio Risk and Compliance

Program will focus on all grantee compliance

aspects, including retaining proper

administrative documentation to support

payments.

Planned Corrective Actions

	 Create reference folders and checklists for

grantees that clearly identify the support

documentation needed to support all types of

transactions.

	 Create a best practices document for record

keeping and maintenance that will be made

available for interested grantees.

	 Stress to both grantees and CNCS staff the

importance of accurately reporting
9

       

             

       

           

           

         

expenditures on Federal Financial Report

totals.

VI. Internal Control Over Payments

The risk susceptible programs for CNCS are all

outward facing grant programs, and CNCS does

not have direct control over the payments that

are made. To minimize improper payments,

CNCS is enhancing its internal controls

framework to better prevent, detect, and

recover improper payments. Given the nature

of the programs, key controls related to

improper payments include: risk assessments;

financial and programmatic training for staff

and grantees; grants management and audit

resolution, and monitoring visits, among

others.

Table 3 Status of Internal Control

Internal Control Standards AmeriCorp FGP RSVP SCP

Control Environment 3 2 2 2

Risk Assessment 3 2 2 2

Control Activities 3 2 2 2

Information and Communication 3 2 2 2

Monitoring 3 2 2 2

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 IPs

VII. Accountability

CNCS is committed to reducing and recovering

improper payments. In FY 2016, CNCS named

the Chief Risk Officer the agency accountable

official over IPERIA compliance. CNCS has also

hired a Chief Risk Officer to implement an

agency‐wide Enterprise Risk Management

program and manage grant Portfolio Risk and

Compliance, which includes the IPERIA

assessment.  

CNCS has stressed the importance of IPERIA to

its grantees by offering trainings on the IPERIA

law, guidance, and CNCS’s IPERIA programs at

the four annual FY2016 regional conferences.

CNCS has moved the NSCHC program into the

Office of the Chief Risk Officer to focus on root

causes of grantee non‐compliance. NSCHC

non‐compliance isresponsible for a majority of

improper payments found. Over the last

twelve months, CNCS has also consistently

applied disallowances to grantees for non‐

compliant criminal history checks in an effort

to both incentivize compliance and stress the
               

             

             

         

         

               

         

             

      

               

       

             

           

               

             

               

             

             

         

           

  

importance of the requirements, at the

grantee level. Additionally, CNCS is adding

criminal history check component testing to its

IPERIA test plan in order to better assess the

root causes of non‐compliance.

CNCS is using FY 2016 and the smaller sample

size as a baseline to determine what

challenges it is still facing at the grantee level

and delve deeper into an analysis of improper

payments. This information will be used to

develop a comprehensive plan for IPERIA

compliance, including meeting reduction

targets.

VIII. Agency Information Systems and other Infrastructure

CNCS is currently establishing a plan that

addresses the human capital, information

systems and other infrastructure needs to

reduce improper payments to targeted levels.

CNCS is currently undergoing an IT

Modernization effort that will provide a more

comprehensive workflow monitoring system

that will allow the agency more visibility on the

challenges facing the grant portfolio.

Additional staff will be hired to focus on

Portfolio Risk and Compliance. CNCS is also

focusing on making adjustments to the NSCHC

program, determining the root causes of non‐

compliance, and developing solutions. CNCS

believes these actions will ensure it has the

appropriate internal controls, human capital,

and information systems to meet its improper

payment targets going forward.

IX. Barriers

There are two statutory or regulatory barriers

that affect CNCS’s effectiveness of its

corrective actions over improper payments.

First, CNCS is prohibited from awarding all

Senior Corps grants entirely competitively,

which limits its recourse against low‐

performing grantees and grantees that are

susceptible to higher levels of improper

payments. Secondly, CNCS’s NSCHC law

requires multiple components that are only

available from selected sources, and not all

grantees have accessto obtain the information

necessary to complete a compliant check from

these sources. CNCS is unable to offer a one‐

stop, federal‐sanctioned solution to conduct

all of the required criminal history check

components. CNCS continues to work to

determine a solution to this problem. CNCS has

recently contracted with an FBI Channeler to

solve the issue of grantees unable to gain

access to the FBI fingerprint checks. However,

some grantees are still unable to access

criminal checks from the designated state

repositories, which is a required component

for compliance.

X. Recapture of Improper Payments Reporting

Payment Recapture Audit Narrative,

Programs Excluded from Payment Recapture

Audit Program

OMB A‐123, Appendix C requires agencies to

conduct payment recapture audits for each

program and activities that expends over $1M

10

annually, if cost effective. CNCS provided in the

response to its FY 2015 IPERA OIG audit

corrective action plan that it will perform this

analysis for all programs and activities by FY

2018.

Payment Recapture Audit Reporting

See Tables Below
11

               

Overpayments Recovered Outside of

Payment Recapture Audits

CNCS issues disallowances for NSCHC non‐

compliance when found during routine

monitoring. CNCS is currently implementing a

tracking system that details whether

disallowances stemmed from IPERA activities

or routine monitoring.  

Payment Recapture Audit Targets

See Tables Below

Table 4

Improper Payment Recaptures with and without Audit Programs

($ in millions)

Overpayments 

Recaptured Outside Type of Payment Total of Payment 

Recapture Audits 

)

getget

 (1

arar

d

te

TT

dd 

ied

e

o

e e 

e

ur

N

iedied

e

if

apt

e 

 Rat Rat

urur

if

apt

if

apt

Program 

dent I

 Rat

e

or 

 Rec

eur

ur

dentdent

eur

 I

 Rec

 I

 Rec

ount

aptapt

Activity 

ountount

m

ount

apt

m

ount

m

ount

A

m

 Rec Rec

 Rec

A

m

A

m

A

 1 2

AA

 + +

CY

CYCY

N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Table 5

Disposition of Funds

Recaptured Through

Payment Recapture Audits

($ inmillions)

Agency Financial Payment Original Office of Program or Amount Type of Expenses to Management Returned to Recapture Purpose Inspector Activity Recovered Payment Administer the Improvement Treasury Auditor Fees Note (1) General Program Activities 

N/A N/A N/A N/A N/A N/A N/A N/A N/A 

Table 6

Aging of OutstandingOverpaymentsIdentified in the Payment Recapture Audits

($ inmillions)

CY Amount CY Amount Outstanding CY Amount Outstanding Amount Determined to Not Program or Activity Type of Payment Outstanding (0 – 6 (6 months to 1 year) (over 1 year) be Collectable months) 

N/A N/A N/A N/A N/A N/A 
12

XI. Additional Comments

CNCS also completed component testing on

criminal history check files, and the results are

found below. Please see the Corrective Actions

section to see actions CNCS plans to take to

reduce these numbers.  

CNCS National Service Criminal History Check Component Testing Results

(Percentage of files considered improper)

Program AmeriCorps State and FGP RSVP SCP 

National 

FY2016 21.74% 35.71% 40% 41.03% 
XII.	 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 programsserve

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

System for Award Management,  Death Master

File ‐DMF Public [SSA], Debt Check* [TOP/FMS],

List    of Excluded Individuals and Entities‐LEIE

[HHS], , 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). 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.
Table 7

Results of the Do Not Pay Initiative in Preventing Improper Payments ($ in

millions)

Number (#) of Dollars ($) of Number (#) of Dollars ($) of potential payments payments Number (#) of Dollars ($) of potential improper improper payments reviewed for reviewed for payments reviewed reviewed and possible possible payments payments and determined determined accurate improper improper stopped stopped accurate payments payments 

n/c n/c n/c n/c n/c n/c 

Reviews with the 

IPERIA specified 

databases 

n/c n/c n/c n/c n/c n/c 

Reviews with 

databases not 

listed in IPERIA