Agency Financial Report

FISCAL YEAR 2013

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

Table of Contents

I. Management’s Discussion and Analysis

Message from the Chief Executive Officer.

Agency Mission and Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Strategic Priorities. 

CNCS Programs and Performance. 

Management Performance. 

Internal Controls, Audit Results, and Management Assurances. 

Analysis of Appropriations and Financial Condition. 

II. Financial Statements

Message from the Chief Financial Officer. 

Consolidated Financial Statements. 

III. Independent Auditor’s Report

Office of Inspector General (OIG) Transmittal Letter. 

Independent Auditor’s Report on Financial Statements. 

Independent Auditor’s Report on Internal Control and Compliance. 

OIG Transmittal Letter for Trust Financial Statements. 

Independent Auditor’s Report on the Trust Financial Statements. 

Management’s Response. .

IV. Other Information

Donations and Contributions. 

National Service Trust Fund Status Report. 

Improper Payments. .

How to Serve

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

opportunity is right for you.

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

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

Corporation for National and Community Service FY 2013 Agency Financial Report, Washington, DC, 20525.

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

regarding this report, please contact the Office of the Chief Financial Officer at 202-606-5000 or at the mailing address noted above.
Fiscal Year 2013

Agency 

Financial Report

About this Report

In lieu of a Performance and Accountability Report, the 

Corporation for National and Community Service (CNCS) 

will instead produce three reports that provide financial 

management and program performance information. 

Each report will be available on CNCS’ website at 

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

performance-and-accountability-reports as they are 

completed.

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

focuses on CNCS’ financial management and the 

results of the agency’s annual financial audit. It 

includes management’s assurance statement, 

CNCS’ improper payments report, and a response 

from management.

• The Annual Performance Report (APR) provides an 

overall assessment of agency performance. The APR 

will be included in CNCS’ FY 2015 Congressional 

Budget Justification, which will be transmitted to 

Congress in February 2014.

• The Performance Highlights Report summarizes 

key information from the AFR and APR. It will be 

available in February 2014.

These reports meet all requirements under the 

Government Performance and Results Act, the Federal 

Financial Management Improvement Act, the Federal 

Managers’ Financial Integrity Act, the Government 

Corporation Control Act, and the Federal Information 

Security Management Act, among others. These 

reports also follow applicable guidance from the Office 

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

recommendations of the Association of Government 

Accountants’ Certificate of Excellence in Accountability 

Reporting program.

How This Report Is Organized

Section I: Management’s Discussion and Analysis

Section I provides an overview of performance and financial information. 

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

description of CNCS’ organizational structure and strategic framework. 

This section highlights performance and key accomplishments in each of 

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

assessment of future priorities and management’s assurances over internal 

controls. The section closes with highlights of financial results.

Section II: Financial Statements

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

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

financial statements and footnotes.

Section III: Independent Auditor’s Report

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

financial statements and footnotes, compliance matters and internal 

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

results of the auditor’s report.

Section IV: Other Information

Section IV provides supplementary reporting of Donations and Contributions, 

the National Service Trust Fund and Improper Payments. Donation and 

Contribution reporting identifies the nature and amount of donations, as 

well as how they were used and disposed of in support of CNCS’ programs 

and activities. The National Service Trust Fund Status Report provides 

status of 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 in the agency and actions taken to 

recover them.

1201 New York Avenue, NW 

Washington, DC 20525

202-606-5000 • TTY 202-606-3472 

NationalService.gov info@cns.gov
Management’s Discussion & Analysis | PART I 5

The Corporation for National and Community Service

Message from 

the CEO

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

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

resource—the American people—to get things done.

Working hand in hand with thousands of local partners, CNCS 

programs improve lives, expand economic opportunity, and engage 

millions of Americans in solving problems in their communities.

I am pleased to present our Fiscal Year 2013 Agency Financial 

Report, which demonstrates our continued commitment to strong 

performance, focused investments, innovative partnerships, and 

management excellence.

This past year, CNCS engaged millions of Americans in service, 

provided critical services to communities across the U.S., 

strengthened thousands of nonprofit and faith-based groups, forged 

innovative partnerships, increased accountability, and continued our 

strong record of reliable fiscal stewardship.

With leadership from the President’s Task Force on Expanding 

National Service, CNCS is poised to engage more Americans in 

results-driven service, building a better future for our citizens, 

communities, and nation.

Expanding Economic Opportunity

In FY 2013, we continued our focus on expanding economic opportunity 

by providing job counseling to returning veterans, helping seniors live 

independently, rebuilding homes after disasters, teaching financial 

literacy, tutoring students in low-performing schools, and more.

CNCS programs also expanded economic opportunity for service 

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

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

participants, national service helps expand individual opportunity, build 

family stability, and create more sustainable, resilient communities.

Driving Impact and Innovation

This past year, we continued to implement our Strategic Plan guided by 

the bipartisan Edward M. Kennedy Serve America Act. The Act focused 

national service on six priority areas: Disaster Services, Economic 

Opportunity, Education, Environmental Stewardship, Healthy Futures, 

and Veterans and Military Families.

In FY 2013, we aligned our programming to focus on these priority 

areas, and implemented a set of agency-wide priority measures to 

measure impact. We continued to use competition to fund high quality, 

high value programs, and we worked to maximize this investment by 

emphasizing performance.

Recognizing the need for new approaches to complex problems, we 

continued to foster innovation through our programs. In FY 2013, we 

awarded the fourth year of Social Innovation Fund grants, leveraging 

significant private and non-federal funds to expand the impact of 

promising nonprofit programs serving low-income communities.

Growing National Service and Volunteerism

National service is model of public-private partnership that recognizes 

progress is best made by working together. The modest federal 

investment leverages hundreds of millions of additional resources 

from non-CNCS sources to strengthen community impact and increase 

return on taxpayer dollars.

Recognizing the smart design of national service—and the key role 

it plays in tackling tough challenges—President Obama created the 

Task Force on Expanding National Service, charged with developing 
Management’s Discussion & Analysis | PART I 6

The Corporation for National and Community Service

strategies to expand national service to meet national needs through 

partnerships with other Federal agencies and the private sector.

In FY 2013, CNCS implemented several innovative partnerships:

• FEMA Corps, collaboration between FEMA and AmeriCorps NCCC 

launched in FY 2012, provided critical support to survivors of 

Hurricane Sandy, the Oklahoma tornadoes, the Colorado floods, 

and other disasters in FY 2013.

• CNCS awarded grants to support more than 650 School Turnaround 

AmeriCorps members to serve in some of our nation’s lowestperforming schools to boost student achievement, attendance, 

graduation rates, and college and career readiness.

• AmeriCorps VISTA partnered with the Bank of America to launch 

the Financial Opportunity Corps to help low- and moderate-income 

households achieve financial stability.

The Task Force will spur the development of new partnerships to meet 

critical needs and expand opportunity for those who serve.

Managing for Results and Accountability

CNCS has a deep commitment to ensuring the highest levels of 

accountability. In FY 2013, CNCS maintained its record of strong fiscal 

stewardship by achieving an unmodified “clean” audit opinion for the 

14th consecutive year.

Other management accomplishments include creating a Financial 

Integrity Steering Committee, implementing a comprehensive internal 

controls assessment program, addressing findings from the 2012 audit, 

and enhancing information technology. We have built an outstanding 

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

levels of impact and accountability. 

For decades, successive Administrations of both parties have invested in 

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

the American people.

As we mark our 20th anniversary, we look forward to building on this 

great foundation and creating more opportunities for Americans to 

make a difference in their communities.

In Service,

Wendy Spencer

Chief Executive Officer
Management’s Discussion & Analysis | PART I 7

The Corporation for National and Community Service

Section I:

Management’s 

Discussion 

& Analysis

Agency Mission 

and Overview

The mission of the Corporation for National and Community Service 

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

participation through service and volunteering. 

For nearly two decades, CNCS has invested in community solutions across 

the nation—working hand in hand with local partners to improve lives, 

expand economic opportunity, and engage millions of Americans in solving 

problems in their communities.

Through AmeriCorps, Volunteers in Service to America (VISTA), National 

Civilian Community Corps (NCCC), Senior Corps, the Social Innovation 

Fund, the Volunteer Generation Fund and other initiatives, CNCS programs 

engage more than five million Americans in results-driven service each 

year at more than 70,000 locations across the country, from large cities 

to small towns to rural areas.

CNCS plays a vital role in supporting the American culture of citizenship, 

national service and responsibility. CNCS is a catalyst for change and 

champion for the ideal that every American has skills and talents 

to give. As the nation’s largest grant maker in the area of service, 

CNCS promotes volunteering and civic engagement around the country 

and helps organizations build their capacity to engage volunteers 

effectively. Participants in CNCS programs provide assistance to their 

communities through nonprofits, K-12 schools, institutions of higher 

learning, faith-based and other community organizations, and local 

and state governments.

CNCS brings vital leadership, resources, and coordination to some of the 

most pressing challenges facing America: educating students for 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, and preserving the nation’s parks and public lands. 

Through all its programs, CNCS expands 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. By helping more Americans 

graduate, pursue higher education, and find work, national service 

provides immediate benefits to the community and significant long-term 

benefits to service recipients and those who serve.

CNCS strengthens the country in a unique and effective way, by 

bolstering—not displacing—the civic, neighborhood, and faith-based 

organizations that serve our communities. Serving in many of the nation’s 

most impoverished communities, CNCS participants provide vital support 

to tens of thousands of organizations—food banks, homeless shelters, 

community health clinics, youth centers, veterans service facilities, 

schools, universities, and other community organizations. 

CNCS multiplies the impact of its federal investment by leveraging 

hundreds of millions of non-federal dollars and mobilizing millions 

of volunteers.
Management’s Discussion & Analysis | PART I 8

Legislation

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

separate agencies that provided opportunities for Americans of all 

ages and backgrounds to serve their communities.

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

• Senior Corps, which incorporated the Foster Grandparents Program 

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

• The newly created AmeriCorps, which incorporated VISTA, State 

and National, and NCCC.

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

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

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

the Domestic Volunteer Service Act of 1973. 

The SAA authorized both the expansion of existing service programs 

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

serve and provide support for the nonprofit sector. The legislation 

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

national problems and evaluate our impact using standardized 

performance measures. 
Management’s Discussion & Analysis | PART I 9

The Corporation for National and Community Service

Organizational Structure

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

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

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

and confirmed by the Senate. 

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

operations, including more than 500 employees who work throughout the 

United States and its territories. The Board of Directors works closely with 

the CEO to set policies and direction for CNCS, advises the President and 

the Congress concerning developments in national and community service 

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

Figure 1: CNCS Organization Chart 

Chief Operating Officer

R. Velasco

Chief Strategy Officer

M. Bradley

External Affairs

T. Miller

Board of Directors

AmeriCorps State & Nat’l

W. Basl

Chief of Staff

A. Mishra

Chief Financial Officer*

D. Rebich

Human Capital

A. Wasilisin

Chief Executive Officer

Wendy Spencer

AmeriCorps NCCC

K. Raftery

Accountability & Oversight

D. Hilton

AmeriCorps VISTA

M. Strasser

Information Technology*

P. Clark

Inspector General

Deborah Jeffrey

Field Liasion

M. Berning

Senior Corps

E. Tan

General Counsel

V. Green

Organization Chart is as of December 2, 2013

* Denotes staff that also have reporting line to the CEO

Research & Evaluation

M. Hyde (Acting)

Social Innovation Fund

M. Smith

Government Relations

K. Allman
Management’s Discussion & Analysis | PART I 10

The Corporation for National and Community Service

Strategic Priorities

During FY 2013, CNCS received $994.0 million in resources that it used to 

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

Opportunity, Education, Environmental Stewardship, Healthy Futures, and 

Veterans and Military Families. In addition, CNCS’ Strategic Priorities set 

forth goals outlined in the tables on the following pages. These goals are 

the foundation for CNCS’ performance plan to strengthen the experience of 

individuals participating in national service, maximize the value we add to 

grantees, partners and participants; and fortify management operations 

and sustain a capable, responsive and accountable organization.

CNCS’ strategic priority measures build upon our historical work, provide a 

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

tangible ways in which our grantees and participants are having an impact. 

As CNCS continues to align its programming to the agency’s priority 

measures, it is also taking additional steps to adopt a more performanceoriented culture. These include building structures and systems for 

performance measurement, analysis, and knowledge management, 

and enhancing staff capacity to support results-based services. Some 

highlights of this effort are provided in this report. In addition, CNCS is 

updating the strategic plan in accordance with Government Performance 

and Results Act (GPRA) to be released in early calendar year 2014. More 

specific information on the performance initiatives will be available in the 

agency’s FY 2013 performance report, which will be presented with CNCS’ 

FY 2015 Congressional Budget Justification. 

Figure 2: CNCS Field Offices 
Management’s Discussion & Analysis | PART I 11

The Corporation for National and Community Service

Strategic Priority Goals

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

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

mitigation, response, and/or recovery.

Economic Opportunity Percent of economically disadvantaged people that received housing-related assistance from CNCS-supported 

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

Education Percent of children that demonstrated gains in school readiness. 

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

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

state standardized tests improved). 

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

that demonstrated improved academic engagement. 

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

and volunteers. 

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

who reported having increased social ties/perceived social support. 

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

members, participants, or volunteers. 

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

members of active duty military, and military service members) that received CNCS-supported assistance. 
Management’s Discussion & Analysis | PART I 12

The Corporation for National and Community Service

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

consistently find satisfaction, meaning, and opportunity

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

programs. 

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

to future educational, professional, or civic endeavors. 

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

Percent of organizations that implement evaluations that demonstrate stronger evidence of program effectiveness than prior to receiving CNCS 

national service participants or funding. 

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

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

organization

Complete modernization of IT infrastructure. 

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

Award and close grants and contracts within prescribed timeframes.
Management’s Discussion & Analysis | PART I 13

The Corporation for National and Community Service

CNCS Programs

and Performance

AmeriCorps State and National

For nearly two decades, AmeriCorps State and National has engaged 

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

state. Through AmeriCorps State and National more than 800,000 people 

have participated in national service. These AmeriCorps members have 

dedicated millions of hours of service in communities across the nation. 

AmeriCorps State and National is a critical component of CNCS’ effort to 

meet the President’s call to expand national service as expressed in his 

July 2013 Presidential Memorandum on Expanding National Service. 

AmeriCorps State and National Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2013 OPERATING LEVEL: $326.3 million*

*Amounts are post across the board and sequestration reductions.

In FY 2013, CNCS estimates that 63,000 AmeriCorps members were 

funded across all AmeriCorps State and National grants.1 These members 

served in thousands of service sites in urban and rural communities 

across the nation engaged in activities like helping educate impoverished 

children, assisting those affected by natural disasters rebuild their homes, 

and helping veterans reintegrate into civilian life.2

In addition, AmeriCorps State and National aligned its grant awards to the 

agency’s strategic priorities in FY 2013. This included funding programs 

focused on the following:

• Improving academic outcomes for economically disadvantaged 

children in School Improvement Grant/Priority schools.3

• Engaging and serving veterans and military families. 

• Helping individuals and communities prepare, respond, recover, and 

mitigate disasters while increasing community resilience. 

• Supporting and/or facilitating access to services and resources that 

helped contribute to the improved economic opportunity for lowincome people.

• Supporting, through the AmeriCorps Governor and Mayor Initiatives, 

service solutions that address the most pressing local issues as 

identified by a city and state government.

Partnership Highlight—School Turnaround AmeriCorps

In collaboration with the Department of Education (ED), CNCS developed 

an initiative to improve the nation’s persistently low achieving schools. 

Launched in July 2013, the School Turnaround AmeriCorps program is 

designed to support the placement of a dedicated cadre of AmeriCorps 

members in persistently low achieving schools across the country. In its 

first full year, estimated 650 School Turnaround AmeriCorps members will 

be supporting a variety of intervention efforts aimed at addressing the 

unique needs of each School Improvement Grant and Priority school.

Evaluation Highlight 

To further increase the efficiency and knowledge of national service, 

AmeriCorps State and National is developing a new effort to pool 

grantee and subgrantee evaluation resources to develop a national 

evaluation pilot. This collaborative effort has the benefit of consolidating 

research funding, building a uniform research design, and developing 

an evidentiary basis across programs. Pooling the resources and data 

of grantees with common focus areas should allow CNCS to create 

economies of scale which increase efficiency and outcomes ensuring 

comprehensive assessments that broaden the rigorous evidence basis 

for the impact of national service.

1

 Member levels based on FY 2012 grant awards.

2

 Final performance data will be reported in the FY 2013 Annual Performance Report, released as a part of the FY 2015 Congressional Budget Justification. CNCS will also release the amount of nonCNCS resources generated in FY 2013 in the aforementioned performance report.

3

 School Improvement Grants (SIG), authorized under section 1003(g) of Title I of the Elementary and Secondary Education Act of 1965 (Title I or ESEA), are grants to State educational agencies 

(SEAs) that SEAs use to make competitive subgrants to local educational agencies (LEAs) that demonstrate the greatest need for the funds and the strongest commitment to use the funds to provide 

adequate resources in order to raise substantially the achievement of students in their lowest-performing schools.
Management’s Discussion & Analysis | PART I 14

The Corporation for National and Community Service

AmeriCorps VISTA

AmeriCorps VISTA helps reduce poverty and foster economic opportunity. 

Authorized in 1964 as Volunteers in Service to America, the program 

became part of the AmeriCorps network of programs in 1993. AmeriCorps 

VISTA supports efforts to alleviate poverty in urban and rural areas by 

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

These AmeriCorps members build the organizational, administrative, and 

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

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

VISTA members are assigned to nonprofit community organizations and 

public agencies through an application process locally managed by CNCS 

state offices.

The AmeriCorps VISTA program embraces the core principles of 

sustainability, capacity building, and strengthening community. It offers 

critical contributions to the agency’s mission priorities under goals 

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

community outreach and partnership development, resource development, 

and establishment of volunteer recruitment and management systems. 

AmeriCorps VISTA members strengthen and improve the ability of local 

organizations to carry out their mission and programs. Sponsoring 

organizations must ensure that their AmeriCorps VISTA projects engage 

residents of the targeted low-income community in the project planning, 

development, and implementation. This approach promotes service and 

community engagement at the local level.

AmeriCorps VISTA Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2013 OPERATING LEVEL: $89.9 million*

*Amounts are post across the board and sequestration reductions.

In FY 2013, AmeriCorps VISTA placed an estimated 7,211 members 5,695 

full time, and 1,516 Summer Associates).Preliminary results indicate 

that these members recruited approximately one million additional 

volunteers to build capacity in the more than one thousand communities 

and organizations across the country. In alignment with the agency’s 

strategic priorities, members serve at programs focused on education and 

economic opportunity, including helping Americans find jobs and housing, 

and improving their financial literacy.

Healthy Futures

In FY 2013, nearly 15 percent of all new projects supported organizations 

that meet the health needs of economically disadvantaged individuals, 

including access to food resources and health care. Below is an example 

of this focus:

• The AmeriCorps VISTA project at Harvest Against Hunger, a gleaning 

and outreach program in Washington state, is remarkably successful. 

The talents and creativity of 10 AmeriCorps VISTAs, situated in 

communities statewide, have helped establish connections between 

small to medium-sized farmers and local food banks, increasing 

both the amount of fresh produce available to food banks, as well 

as establishing new opportunities for direct donor and volunteer 

participation. In the first year, the project served 534,000 clients 

and reported $1.2 million in noncash donations. During the past four 

years, 10,500 volunteers have recovered more than two million pounds 

of fresh, healthy produce. And that’s just the beginning: Harvest 

AmeriCorps VISTAs builds programs that are sustainable and scalable. 

The positive impact of these programs will benefit for years to come. 

David Bobanick, Executive Director of Harvest Against Hunger, said: 

“Given the very limited resources of hunger relief agencies and local 

food banks, without AmeriCorps VISTAs this sort of work would simply 

not be in the realm of possibility. With the AmeriCorps VISTAs, we’re 

able to not only develop these programs, but also to share program 

models across a broad spectrum of hunger relief agencies here in 

Washington State and across the United States.”

Education

Education continues to be a significant focus area, totaling more than 

35 percent of all new projects developed in FY 2013. To break the cycle of 

poverty through education, AmeriCorps VISTA members perform service in 

schools and community organizations that focus on improving educational 

Economic Opportunity

Economic opportunity continues to be one of AmeriCorps VISTA’s 

largest focus areas, representing a third of the new projects 

developed in FY 2013. Below is an example of this focus:

• Legal Assistance Foundation of Metropolitan Chicago VISTA’s 

worked to increase access to legal representation for low 

income resident of Illinois in the areas of housing, education, 

medical, public benefits, and basic legal services. This 

was accomplished by making the systems more efficient, 

increasing the number of pro-bono attorneys, creating 

additional revenue streams, and creating self-representation 

options when appropriate. In a two year period between 2012 

and 2013, AmeriCorps VISTA’s recruited over 350 volunteers 

who contributed 5,000 hours of legal services and served 

more than 4,800 clients. Additionally, they raised over $970 

thousand dollars in cash and in-kind resources for the 

programs they support.
Management’s Discussion & Analysis | PART I 15

The Corporation for National and Community Service

outcomes for the economically disadvantaged, through locally determined 

interventions. An example in this focus area is:

• STEM AmeriCorps is new initiative to spur student interest in science, 

technology, engineering, and math education. 50 AmeriCorps VISTA 

members were placed this year with FIRST (For Inspiration and 

Recognition of Science and Technology), a nonprofit that inspires 

an appreciation of science and technology in young people through 

robotics competitions. Serving in low-income communities across the 

country, the AmeriCorps VISTAs are recruiting volunteers and support 

teams of students to participate in FIRST competitions, making it 

possible for more students to be exposed to the STEM fields. Through 

a second initiative, AmeriCorps VISTA will also partner with leading 

nonprofits in the maker movement to coordinate STEM training, 

building STEM partnerships, and identifying resources for STEM 

program sustainability.

Veterans and Military Families

AmeriCorps VISTA continues to expand and enhance programming to 

support projects that assist low-income veterans and military families. 

The AmeriCorps VISTA program encourages all projects, particularly those 

that serve veterans and military families, to recruit veterans to serve 

as AmeriCorps VISTA members. The most recent member satisfaction 

survey revealed overwhelmingly positive responses by veterans serving as 

AmeriCorps VISTA members. Nearly 78 percent are satisfied or extremely 

satisfied with their roles and 80 percent say their service has helped 

them reconnect with community activities in civilian life. An example of a 

project in this focus area is:

• A Maryland-DC Campus Compact AmeriCorps VISTA, serving on the 

Veteran Career Management project at Stevenson University, has 

helped create a sustainable network to meet the employment needs 

of veterans in the community. This VISTA member, a Navy veteran, 

oversees the MDCC AmeriCorps VISTA program’s signature event— 

the Veteran Career Fair and Resource Expo. Held twice a year in May 

and November, this event encompasses the Dependable Strengths 

Articulation Process workshop, and provides veterans the opportunity 

to network with potential employers and address inquiries with 

community partners. An AmeriCorps VISTA member recently helped 

students establish a veteran club, the first of its kind on the 

university’s campus. The club has increased veteran awareness 

among faculty, staff, and students. AmeriCorps VISTA members have 

assisted 144 veterans and 124 volunteers have contributed nearly 

1,200 hours of service.

Partnerships Highlights

In FY 2013, in alignment with the President’s call for the federal 

government to expand national service as a solution to community 

challenges, AmeriCorps VISTA engaged in the following partnerships:

• In collaboration with Bank of America and the Points of Light 

Institute, AmeriCorps VISTA launched the Financial Opportunity 

Corps to support low and moderate-income households. This 

initiative ultimately will place 20 AmeriCorps VISTA members at 

local nonprofit, public, and faith-based organizations throughout the 

country. The AmeriCorps VISTA members are building local capacity 

at their sites by launching and supporting proven financial coaching 
Management’s Discussion & Analysis | PART I 16

The Corporation for National and Community Service

programs to help low- and moderate-income households achieve 

financial stability.

• Together for Tomorrow (TFT), an initiative developed by CNCS, 

the U.S. Department of Education, and the White House Office of 

Faith-based and Neighborhood Partnerships, uses AmeriCorps 

VISTA members to expand community partnerships to improve some 

of our lowest-performing schools. Building on the success the six 

AmeriCorps VISTA TFT initiative pilot projects engaged more than 

60 AmeriCorps VISTAs in five states. CNCS built on this success by 

expanding the initiative in 2013 to include 33 more TFT projects and 

215 AmeriCorps VISTAs serving 28 more states. These AmeriCorps 

VISTA members fostered local community partnerships to focus on 

student outcomes such as attendance, behavior, course performance, 

and college access.

AmeriCorps National Civilian Community Corps

 AmeriCorps National Civilian Community Corps (NCCC) is residential, 

team-based program that provides opportunities for young American 

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

needs in all 50 states through 10 months full-time, intensive national 

service. Since 2000, more than 15,000 AmeriCorps NCCC members from 

across the country have served more than 5.3 million hours on disaster 

projects. The service, training, and certification provided by AmeriCorps 

NCCC increase employment and leadership opportunities for young adults 

—particularly those from disadvantaged circumstances. 

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

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

coordination, which prepares its members to serve as lead CNCS disaster 

responders and as force multipliers who can effectively coordinate 

and manage episodic volunteers. In addition to disaster preparation, 

mitigation, response, and recovery, AmeriCorps NCCC members serve 

at the request of local, state, and regional organizations in the areas of 

infrastructure improvement, environmental stewardship and conservation, 

urban and rural development, and energy conservation.

AmeriCorps NCCC Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2013 OPERATING LEVEL: $30.2 million*

*Amounts are post across the board and sequestration reductions.

In FY 2013, CNCS estimated that AmeriCorps NCCC enrolled 1,000 

members and recruited or managed an additional 86,000 volunteers in 

efforts to improve communities throughout the country. These volunteers, 

through their service teams, spent 8 percent of project hours on 

infrastructure improvement, 25 percent on environmental stewardship 

and conservation, 35 percent on urban and rural development and one 

percent on energy conservation projects which all supported CNCS 

strategic goals. AmeriCorps NCCC members also participated in more 

than 2,300 disaster response on and recovery efforts in 50 States in FY 

2013. This included continued recovery efforts in Joplin, Missouri and in 

the Atlantic states following Hurricane Sandy, and resulted in the delivery 

of an estimated 1.7 million meals in disaster-stricken areas across the 

nation to help feed those in need.

In addition, during FY 2013, AmeriCorps NCCC members assisted 17,600 

homeless citizens and constructed nearly 650 homes, providing housing 

opportunities for Americans in need.

Partnership Highlight: FEMA Corps

Building on a 19-year history of working together on disaster response 

and recovery efforts, the Department of Homeland Security’s Federal 

Emergency Management Agency (FEMA) and the CNCS launched 

an innovative partnership in 2012 to strengthen the nation’s ability 

to respond to and recover from disasters while expanding career 

opportunities for young people. As with other AmeriCorps partnerships, 

this initiative is consistent with the objectives of the July 2013 

Presidential memorandum on Expanding National Service. 

In FY’s 2012-2013, FEMA Corps teams provided vital services to survivors 

of Hurricane Sandy, distributing more than 24,000 educational and 

preparedness kits in New York and New Jersey. FEMA Corps teams 

assisted more than 13,300 people in Moore, Oklahoma affected by an EF5 

tornado that devastated the city on May 20, 2013. In total, FEMA Corps 

teams have served in 58 cities across 27 states and have completed more 

than 5,800 damage or need assessments, answered more than 17,000 

registration or helpline calls, and conducted more than 63,000 case 

status updates conducted for disaster survivors. 

State Service Commissions

Since the inception of CNCS in 1993, Congress envisioned AmeriCorps 

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

partnership, Congress created a unique role and responsibility for State 

Service Commissions on service and volunteering. More than a thousand 

private citizens serve as governor-appointed commissioners and direct 

the states’ national and community service efforts. These State Service 

Commissions are invaluable partners to CNCS, identifying local needs and 

directing federal and state resources to address them.

In the FY 2013 grant cycle, State Service Commissions received and 

reviewed more than 900 applications for AmeriCorps program funding, 

resulting in the selection of 735 new and continuation programs. 
Management’s Discussion & Analysis | PART I 17

The Corporation for National and Community Service

Commissions funded 582 programs with their Formula funds and 

CNCS funded 153 with Competitive funds. The Commissions support 

staff and over 27,000 AmeriCorps members in those programs in their 

states. In addition, those with AmeriCorps National Direct operating 

sites in their states helped connect those sites to the AmeriCorps 

network. Commissions provide an important monitoring and oversight 

by conducting performance reviews and/or site visits for all programs 

to which they provide funding. This oversight ensures that AmeriCorps 

programs are accountable in meeting performance outcomes and address 

pressing community needs. 

State Service Commissions Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2013 OPERATING LEVEL: $12.7 million*

*Amounts are post across the board and sequestration reductions.

Partnerships Highlights

State Service Commissions are forging partnerships with the private 

sector and with other state agencies to provide more service opportunities 

and to meet state and local needs. The Washington Commission on 

National and Community Service partnered with the Washington 

Employment Security Agency to provide AmeriCorps members to a wide 

variety of organizations across the state meeting the needs of low-income, 

elderly, unemployed, and other individuals.

In Iowa, State Farm provided support to the Iowa State Commission 

to train local community organizations in working successfully with 

volunteers and provides funds to the Commission’s Volunteer Generation 

Fund program. The Alabama Commission partners with Lamar Advertising 

to post volunteer promotion messages on Lamar’s electronic billboards 

across the state. The California Commission established a council to 

work with businesses to expand employee volunteer opportunities and 

partner with them to support other national service activities. Throughout 

California over 8,800 Bank of America employees recorded over 200,000 

volunteer hours with non-profits in a variety of service activities including 

the Soldier Support initiative that assembled nearly 4,000 care packages 

for deployed troops. 

Focus Area Highlight: Disaster Response 

State Service Commissions played a key role in responding to major 

disasters in FY 2013, including Commissions in New York, New Jersey, 

Rhode Island, and other states affected by Hurricane Sandy took on key 

roles, including managing volunteers and donations. In addition, State 

Commissions outside the affected regions lent a hand by sending over 

90 programs and 2,700 members to those states to assist with clean-up 

and rebuilding efforts and coordinate the thousands of other volunteers 

responding to the devastation.

Senior Corps

RSVP 

Retired and Senior Volunteer Program (RSVP) engages the skills, talents, 

and interests of more than 300,000 volunteers aged 55 and older to 

meet a wide range of community needs. Volunteers serve in community 

organizations to help them deliver critical services and fulfill their 

missions. RSVP is a flexible volunteer service model, with no set service 

schedules or compensation for the volunteers when on assignment, with 

the exception of insurance coverage and mileage reimbursement. 

RSVP grants are provided to eligible sponsoring organizations, including 

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

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

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

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

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

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

RSVP Strategic Goals

1 - Increase impact 

on communities

2 - Enhance national 

service participant 

experience

3 - Maximize value 

to grantees, 

partners, and 

participants

FY 2013 OPERATING LEVEL: $47.6 million*

*Amounts are post across the board and sequestration reductions.

In FY 2013, RSVP volunteers delivered an estimated 47 million hours 

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

a network of 646 grants awarded to sponsoring organizations, a total 
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The Corporation for National and Community Service

of 320,600 RSVP volunteers served in more than 38,000 community 

organizations nationwide to deliver essential services. Working through 

such networks as Area Agencies on Aging, Volunteer Centers, the United 

Way, social services agencies, and many others, RSVP volunteers:

• Mentored an estimated 82,590 children;

• Provided independent living services to an estimated 742,800 adults; 

• Provided respite services to nearly 24,000 family or informal 

caregivers; and

• Served 563,200 veterans in activities such as transportation and 

employment referral services.

In FY 2013, CNCS estimates that states and local communities 

contributed nearly $34 million in non-federal funds to support RSVP 

projects. This level is 41 percent of the total cost, and well above the 

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

additional funding, including $3.6 million in state appropriated dollars, 

demonstrates the value of the essential services that RSVP volunteers 

provide in their communities. 

Some examples of RSVP volunteers meeting high priority needs include:

• Disaster Services—In April, 2013, a West Texas fertilizer plant 

exploded killing 15 people, injuring many others and leaving hundreds 

of people in the town homeless. Senior Corps provided a grant 

supplementation of $195,000 to the Heart of Texas RSVP program 

for the development of a long-term volunteer reception center that 

serves as home base for local volunteer and faith-based groups. 

As of October 2013, the Center, staffed by two RSVP volunteer 

coordinators, has managed over 9,000 volunteers who have provided 

more than 80,000 hours of service. To help mitigate the effects of 

the disaster on student academic performance over the summer, a 

third RSVP volunteer Coordinator was tasked to support West school 

students. With the help of RSVP volunteers who supported 65 schoolaged kids, the West Best Smart Club met twice weekly, focusing 

one session on math skills and the second session on language 

arts. These efforts are continuing through the school year with the 

recruitment of additional volunteers to pair with other students. 

RSVP volunteers also serve the residents of West Rest Haven Nursing 

Facility and, in collaboration with the Red Cross, are planning 

emergency response training for nursing facilities that builds on the 

experience of the West Haven nursing facility.

• Helping Veterans—An estimated 7,518 veterans in Cheshire County, 

New Hampshire live below poverty level and 25.4 percent of those 

are living with a disability leading them to need services provided by 

Monadnock Family Services RSVP. RSVP veteran volunteers provide 

independent living services to low-income and disabled veterans 

and/ or more than 30 military family members who are referred to 

the RSVP independent living program by the Keene Veteran’s Center, 

Medical Clinic and social service providers. Services RSVP veteran 

volunteers provide include: home repairs, companionship, phone 

reassurance, transportation, and assistance with other day-today activities. These services help more than 60 percent of these 

veterans maintain their independence at home and help delay and 

prevent nursing home placement. 

In Brevard County, Florida, the Vets Driving Vets has 19 veteran Senior 

Corps RSVP volunteers. Since February 2013, the program has served 

49 low-income, homebound veteran men and women ranging in ages 

from 30 to 90 years. Receiving some referrals from the Veterans 

Administration Outpatient Clinic, the Veterans served have an annual 

single household income of less than $17,000 or a combined household 

annual income of less than $24,000. These dedicated RSVP volunteers 

have donated 15,516 miles of transportation and provided more than 

491 rides to assist veterans in accessing health care needs. Volunteers 

are given Vets Driving Vets signage for their vehicles and name badge 

identification to make them more visible while serving throughout 

the community. Three volunteer area coordinators, who are all fellow 

veterans, are helping the program to increase its client and volunteer 

base. Vets Driving Vets also offers skill-based volunteer opportunities in 

area transportation coordination.

• Supporting Education—In 2011, to address the high number of 

elementary school students performing below reading and math 

proficiency (40 percent) in Milwaukee, Wisconsin, the Interfaith 

Older Adults Programs, Inc. RSVP project developed a volunteer 

tutor program that engages 200 RSVP Volunteers as tutors to 1,000 

Milwaukee Public School (MPS) children. In 2012, the program was 

recognized for its success by the MPS Board and Superintendent with 

the Excellence in Education Award. Ninety-six percent of the students 

demonstrated an increase in their academic confidence and more 
Management’s Discussion & Analysis | PART I 19

The Corporation for National and Community Service

than 80 percent of the children demonstrated grade level proficiency. 

The program has been so successful that the Milwaukee Public 

Schools secured a grant from General Electric and requested RSVP 

Milwaukee to expand the tutoring program to 500 volunteers who will 

eventually serve all 113 district elementary schools by 2015.

• Economic Security—In collaboration with AARP, the RSVP Tax-Aide 

Initiative is a volunteer-run tax assistance and preparation service 

available to taxpayers with low and moderate incomes and gives 

special attention to people age 60 and older. During 2013, 100 

Montgomery County, Maryland RSVP volunteers served 16,000 hours 

completing and filing 4,345 tax returns, 2,827 of which were for 

individuals over the age of 60. The average adjustable income for 

these returns was $36,345 and the service of these RSVP volunteers 

yielded a total amount of $4,337,898 returned to the economy in the 

form of tax refunds.

The Financial Coaching Corps (FCC) Program of RSVP at the Community 

Service Society of New York provides one-on-one financial coaching to low 

wage earning clients to build pathways to economic security. In 2012, the 

program placed 27 volunteer coaches at 23 partner sites and helped 701 

clients. Most of the clients experienced extensive debt and credit problems. 

To address these financial issues, RSVP volunteer coaches assisted clients 

in improving their credit by accessing, reviewing and correcting credit 

reports, contacting debt collectors, and seeking solutions.

Of these clients:

• 71 percent were unemployed;

• 78 percent earned $10,000 or less;

• 65 percent lived in public or transitional housing; and

• 65 percent were female while 35 percent were male.

Senior Companion Program (SCP)

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

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

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

providing companionship, transportation, light chores, and respite to 

assist seniors to remain in their own homes. Senior Companions help 

aging Americans and veterans to maintain their dignity and quality of life, 

while enriching their own lives through their national service experience. 

Senior Companions’ traditional clients are frail seniors, particularly 

women over the age of 85 who live alone. Other clients include individuals 

with disabilities and their caregivers. 

Research conducted by the program in 2004-2005 suggests that 

Senior Companion clients had significant, long-term mental health 

benefits from SCP services, including reduced rates of depression. 

Companionship provides benefits to both the Senior Corps volunteer 

and companion, as social ties and perceived social support are linked 

with long-term health outcomes. Senior Companions also serve 6,900 

caregivers. Caregiving can have a negative impact on the caregiving 

family’s economic opportunities, and caregiver burnout can be an 

important contributor to nursing home use. The Salt Lake County Aging 

Services in Utah also serve home-bound veterans in a VA Home Based 

Primary Care program by providing caregiver respite. 

Senior Companions serve between 15 and 40 hours per week and 

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

level, receive a modest monetary hourly stipend of $2.65 per hour to help 

offset the cost of volunteering. Volunteers also receive service-related 

insurance, mileage reimbursement, and other non-monetary incentives. 

SCP grants are awarded to eligible sponsoring organizations, including 

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

are required to contribute at least 10 percent of the total budget from 

non-federal sources, and an amount equal to 80 percent of the federal 

budget must be expended on direct volunteer costs. Grants are awarded 

for a period of up to three years.

Senior Companion Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2013 OPERATING LEVEL: $44.3 million*

*Amounts are post across the board and sequestration reductions.

In FY 2013, CNCS estimates 13,770 SCP volunteers served through 213 

total grants, funded by federal and non-federal sources. They delivered 

11.7 million hours of services to approximately 50,380 frail, older adults 

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

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

companionship to offset isolation; and offer respite to an estimated 

6,900 family members and informal caregivers. SCP grantees also work 

with states to expand services through Medicaid Home and Communitybased Waivers. 

In 2013, six states elected to incorporate SCP services into their 

Medicaid-funded home and community-based services, providing more 

than $775,000 to support 383 Senior Companions who in turn provided 

in-home support to more than 1,000 Medicaid eligible clients. In 2013, 

states and local communities contributed $16 million in non-federal funds 

to support Senior Companions, well above the required ten percent nonfederal share of $5.1 million. The additional funds, including $3.4 million 

in state appropriated dollars, demonstrate the value of essential services 

that Senior Companions provide in their communities.
Management’s Discussion & Analysis | PART I 20

The Corporation for National and Community Service

Through the Senior Companion Program sponsored by Lutheran 

Social Service in Minnesota, 395 Senior Companions provided weekly 

companionship services to 2,227 frail elders, with 85 percent reporting 

less isolation and loneliness and 88 percent remaining in their own homes 

for the entire year. Companionship services include accompanying and 

transporting clients to a senior center, health care facility or recreational 

activity, providing grief support, reading, writing letters, filling out 

forms and friendly visiting. Providing respite services, another 20 Senior 

Companions provided temporary relief for caregivers of 195 elders. Eighty 

five percent of caregivers reported less stress and an improved sense of 

well-being and 80 percent reported they would be able to keep their loved 

one at home for at least six more months. 

In 2012, 190 Senior Companions in Montana served 181,612 hours with 

1,131 at-risk seniors, of which 789 (or 70 percent) retained independence, 

delaying use of Medicaid funds for nursing home placement. According to 

Kevin Brown, Montana Adult Protective Services, “The Senior Companion 

program is a very important aspect to maintaining our clients and 

assuring their safety. I cannot imagine anything more valuable to those 

of us seeking assistance and help to the welfare of our clients.” Providing 

respite to family and informal caregivers is also a much needed service. 

Respite Care Manager Sara Orbe said, “Missoula Aging Services’ Senior 

Companion Program is changing lives one senior at a time. They relieve 

worry for families who struggle to care for an elderly loved one and 

augment the care that families often have to miss work to provide.”

Foster Grandparent Program (FGP)

The Foster Grandparent Program (FGP) is an intergenerational program 

first established in 1965. It connects volunteers aged 55 and over 

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

support to children with special needs, exceptional needs, or who are 

at an academic, social, or financial disadvantage. Foster Grandparents 

help young children with special or exceptional needs to gain skills and 

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

children in the child welfare system. 

A Foster Grandparent can serve as a caring and consistent adult presence 

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

In turn, Foster Grandparents derive significant emotional and health 

benefits from their service, which can improve their quality of life and 

provide them with a strong sense of purpose. 

Foster Grandparents serve between 15 and 40 hours per week and 

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

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

reimbursement, and other non-monetary incentives. Grants are provided 

to eligible sponsoring organizations, including nonprofit organizations 

and state, local, and tribal governments. Grantees contribute at least ten 

percent of the total budget in non-federal funds and an amount equal 

to 80 percent of the federal grant award must be expended on direct 

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

Foster Grandparent Program Strategic Goals

1 - Increase impact on 

communities

2 - Enhance national service 

participant experience

FY 2013 OPERATING LEVEL: $104.8 million* *Amounts are post across the board and sequestration reductions.

In FY 2013, CNCS estimates that 28,250 FGP volunteers delivered 

approximately 24 million hours of service in their communities through a 

network of 336 grants funded from both federal and non-federal sources. 

In addition, the agency estimates that FGP volunteers served a total of 

215,700 children, including mentoring more than 110,300 children, 7,000 

of whom were children of incarcerated parents and more than 3,038 of 

whom were children of military families.

In 2013, states and local communities contributed an estimated $24 

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

the required 10 percent non-federal share. The additional funds, including 

an estimated $4.2 million in state appropriated dollars, demonstrate the 

value of essential services that Foster Grandparents provide to children 

with special or exceptional needs in their communities.

To ensure school readiness, 72 Foster Grandparent volunteers with the 

Westchester Community Opportunity Program in Elmsford, New York 

served a minimum of 25 hours weekly for 35 weeks providing 149 Head 

Start children with literacy, language and math support. Ninety-one 

percent of the students (136 of the 149 students) who worked with a 

Foster Grandparent showed moderate and/or high improvement in three or 

more identified skill areas. Eighty-six percent of the students who worked 

with the Foster Grandparents (128 of the 149 students) were promoted 

and ready to enter Kindergarten because of their improvements in teacher 

identified skill areas with 122 students (81.9 percent) having improved 

CNCS estimates that in FY 2013 13,770 

SCP volunteers, serving through 213 grants 

awarded to sponsoring organizations, 

delivered 11.7 million hours of service to 

approximately 50,380 frail, older adults, and 

others with physical or other limitations.
Management’s Discussion & Analysis | PART I 21

The Corporation for National and Community Service

their overall math skills and 127 students (85.2 percent) having improved 

their overall reading skills.

One-third of the population of Williamsburg County, South Carolina lives 

below the poverty level and 40 percent of the children are growing up 

in single parent households. Last year, 31 Foster Grandparents tutored 

134 elementary school students at risk of academic failure. More than 

85 percent of the students tutored by a Foster Grandparent increased 

their reading skills by at least one grade level and showed a reduction in 

negative behavior. These students also showed higher promotion rates to 

the next grade level. As Foster Grandparents continue to support these 

students, the program expects to see ongoing academic improvement.

Northern Arizona Foster Grandparent volunteers serve as tutors and 

mentors to special needs children throughout Arizona. From July 2012 

—June 2013, 196 Foster Grandparent volunteers served 136,531 hours 

assisting 824 students. Of the students assisted by Foster Grandparents, 

97.9 percent demonstrated improved language development skills, 95.2 

percent improved intellectual/thinking skills, 99.1 percent improved 

social/emotional skills and 100 percent improved motor skills as rated by 

classroom teachers. 

St. Mary’s Foster Grandparent program in Grand Junction, Colorado, 

utilizes Foster Grandparents to improve reading scores for teacher 

identified students. Between July and December 2012, 30 Foster 

Grandparents tutored 757 students. Ninety-five percent of the students 

tutored by Foster Grandparents demonstrated reading proficiency growth. 

Additionally, Foster Grandparent-tutored students had 754 proficiency 

growth points versus 732 proficiency growth points for all other students.

Subtitle H—Innovation and Demonstration and Call to Service

Subtitle H funding provides resources for CNCS to support and encourage 

new forms of national service and civic participation and improve existing 

national service programs. The activities in Subtitle H generally promote 

national service and volunteering throughout the country; identify and 

incubate innovative program models and approaches; and disseminate 

effective practices found to improve the reach and effectiveness of 

programs and projects.

Innovation and Demonstration and Call to Service Strategic Goals

2 - Enhance national service 

participant experience

3 - Maximize value to grantees, 

partners, and participants

FY 2013 OPERATING LEVEL: $4.2 million*

*Amounts are post across the board and sequestration reductions.

Innovation, demonstration, and assistance significantly contribute 

to CNCS Strategic Goal 2, strengthening national service so that 

participants find satisfaction, meaning, and opportunity in their service. 

CNCS strives to ensure that members and volunteers across its programs 

leverage their experiences in ways that benefit them as individuals and 

the communities in which they remain engaged. Subtitle H activities also 

contribute to CNCS Strategic Goal 3, which seeks to maximize the value 

we add to grantees, partners, and participants through programming, 

convening meetings, and producing materials to help improve volunteer 

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

program for identifying and scaling promising community solutions, the 

Social Innovation Fund.
Management’s Discussion & Analysis | PART I 22

The Corporation for National and Community Service

Call to Service

Call to Service activities including national days of service, partnerships, 

and convenings that engage hundreds of thousands of Americans in 

service, expanding service to new communities, demonstrating impact, 

and recognizing the efforts of those who serve.

The 2013 Martin Luther King (MLK) National Day of Service was an 

especially big moment for national service, as this federal holiday that 

encourages Americans to take a “day on” instead of a day off coincided 

with the Presidential Inauguration. This resulted in support from President 

Obama to establish a National Day of Service that inspired more than 

150,000 Americans to pledge to serve a total of 1.3 million hours helping 

Americans. CNCS continues to engage these volunteers by working 

with other federal agencies and nonprofit partners to provide monthly 

opportunities to make good on their pledges. 

CNCS’ MLK grantees mobilized at least 369,472 volunteers in FY 2013. 

These grantees reported their impact within the agency’s focus areas. 

For example, 60,832 people received disaster services support, more than 

12,000 people received financial literacy services, and almost 10,000 

veterans and member of their families were engaged in service. The 

digital presence of MLK Day also increased in FY 2013, as the related 

CNCS website experienced a five-fold increase in traffic, with 263,143 

visitors, compared to 54,361 the previous year. 

Grantees also reported collecting or serving more than 287,000 pounds 

of food for needy families. In a Hurricane Sandy-affected area of New 

Jersey, 500 HopeWorldwide volunteers conducted door-to-door needs 

assessments for referrals to organizations addressing hurricane recovery 

efforts. They learned that at least 500 households (in habitable homes) 

were still without power more than two months after the storm. In 

New Orleans, CNCS grantee HandsOn organized 250 local volunteers 

and partnered with another CNCS grantee, City Year, to improve a 

neighborhood school. Together, they created 30 school garden benches, 

planted 80 trees on school grounds, and installed four school garden 

sheds. Working with the local Neighborhood Association, they also cleared 

five empty lots of debris and abandoned fencing. 

Through National Mentoring Month, CNCS and its partners raised 

awareness about the positive impact high-quality mentoring relationships 

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

skills, and career development. The National Mentoring Summit brought 

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

quality and impact of the mentoring programs, chart the mentoring field’s 

future and focus the power of mentoring on measurable outcomes. 

The fourth annual summer Let’s Read. Let’s Move. initiative promoted 

children’s physical activity and summer reading loss prevention. 

Highlights of this year’s initiative include a launch event in Washington, 

D.C. This event, done in conjunction with DC Public Schools, the Junior 

League of Washington, national service members and staff joined 50 

second-grade students at Garfield Elementary School. The event was the 

first of a 15,000-book donation by the Junior League of Washington to the 

DC Public School. 

CNCS, as a lead agency on the Let’s Move in Indian Country initiative, 

secured private sector resources to support placement of AmeriCorps 

VISTA members in Indian Country youth sports programs. 

Working with the Department of Education, CNCS recognized 690 

schools for exemplary community service in the 2013 President’s Higher 

Education Community Service Honor Roll. Of these designees, five 

institutions received the Presidential Award, the highest honor. One of 

the recipients was Gettysburg College, where 72 percent of students 

engage in community service. With one in every four families dealing with 

food insecurity and 70 percent of their local community living in poverty, 

Gettysburg students have distributed over 12,000 pounds of food, and 

provided afterschool tutoring and mentoring for young learners in the 

community and for migrant farm workers and their children.

Innovation in Training

As in past years, CNCS continued to provide training to its Senior Corps 

network through a Virtual Conference. One thousand nine hundred unique 

registrants focused on impact and performance measures. This conference 

supports applicants for the upcoming Senior Corps’ competitions and 

trains Senior Corps program staff on performance measures. A conference 

pre- and post- test indicated 86 percent of respondents agreed or strongly 

agreed that they gained new knowledge and skills as a result of the 

conference. In addition, 95 percent of attendees indicated that they would 

use the information gathered at the conference.
Management’s Discussion & Analysis | PART I 23

The Corporation for National and Community Service

During FY 2013, CNCS also introduced six new communities of practice 

and related forums. Four address education, disaster services, healthy 

futures and economic opportunity. The remaining two are for Senior 

Corps and AmeriCorps communities. The design of these interactive 

functionalities was adopted from the very successful design of the 

veterans and military families (VMF) community of practice. Subtitle H 

Funds investment in the VMF Knowledge Network and Community 

Forum created a body of knowledge and useful practitioner materials 

for the national service network where none existed before. Over 2,000 

individual practitioners participate and use over 200 library resources, 

30 recorded webinars, 87 discussion topics. In FY 2013, the VMF 

community forum hosted monthly conference calls, 12 webinars and 

monitored and responded to over 300 posted comments. This investment 

in communities of practice is an essential support CNCS provides to 

grantees and projects, and is the basis for the agency’s training and 

technical assistance.

In FY 2013, CNCS made great strides in measuring the value of training 

programs and understanding of grantee training needs. For example, 

CNCS launched an important effort to collect knowledge gains on 

performance measures, financial and grants management, and program 

compliance for AmeriCorps and Senior Corps. Pre and post test questions 

were developed to survey training knowledge gains. The surveys were 

piloted at the Regional Training and Technical Assistance Conferences and 

at the AmeriCorps Symposium. The pilot data will be available in FY 2014. 

The Volunteer Generation Fund

Volunteers provide enormous social and economic benefit to our 

communities and the nation. In 2012, the last year for which data is 

available, 64.5 million adults volunteered through an organization. The 

7.89 billion hours these individuals volunteered is valued at more than 

$174 billion, using Independent Sector’s estimate of the dollar value of 

volunteer time. As highlighted in the July 2013 Presidential Memorandum 

entitled “Expanding National Service,” national service and volunteering 

can be effective solutions to national challenges and can have positive 

and lasting impacts that reach beyond the immediate service experience. 

Whether tutoring at-risk students or providing job training to veterans or 

responding to natural disasters, volunteers have a powerful impact on 

critical challenges facing our nation. Volunteering also provides important 

benefits to those who serve—helping them develop and maintain skills, 

expand professional networks, stay connected to their community, and 

experience physical and mental health benefits. Researchers have 

found that when citizens volunteer, they have higher lifetime rates of 

civic engagement, educational attainment, social capital, and life skills 

(Frumkin & Jastrzab, 2010; Simon & Wang, 2002; Tschirhart et. al, 2001). 

In addition, CNCS research found that after a period of unemployment, 

volunteers had 27 percent higher odds of being employed than nonvolunteers. The effect was strongest among individuals without high 

school diploma or equivalent and individuals who live in rural areas. 

The study also found that the relationship between volunteering and 

employment is stable across gender, race and ethnic categories, age, 

time, Metropolitan Statistical Area, and unemployment rate. 

The Volunteer Generation Fund (VGF) has shown promising early results 

that seek to stimulate greater innovation in the voluntary sector, help 

nonprofits attract and retain skilled volunteers, create a sustainable 

infrastructure of volunteer connector organizations, and build the capacity 

of the voluntary sector to more effectively use volunteers to address 

critical community needs. With these objectives in mind, VGF grantees 

accomplished the following in FY 2013:

• Developed a research-based volunteer management curriculum for 

nonprofit organizations.

• Created and expanded volunteer centers in underserved 

communities.

• Trained and deployed volunteer leaders to coordinate and manage 

community service projects.

• Launched and expanded skill-based volunteer programs.

• Improved systems and training for coordinating disaster and 

emergency volunteers to meet immediate and long-term needs.

• Convened networks to share and disseminate best practices.

• Provided training and technical assistance to enhance nonprofit 

organizational capacity to manage and engage volunteers in 

meaningful service.

Volunteer Generation Fund Strategic Goals

2 - Enhance national service participant experience

FY 2013 OPERATING LEVEL: $3.8 million* *Amounts are post across the board and sequestration reductions.
Management’s Discussion & Analysis | PART I 24

The Corporation for National and Community Service

In FY 2013, CNCS also awarded $3.7 million in grants to 17 State Service 

Commissions to generate significant, measurable improvements in 

the number of volunteer hours and volunteers generated and retained, 

especially those related to engaging skill-based volunteers. 

Evaluation

The research and evaluation agenda within the CNCS is designed to 

develop knowledge to support the agency’s mission, programs, and 

strategic goals through rigorous program evaluation and research 

initiatives. Strengthening the evidence base for national service is a 

priority outlined in the agency’s Strategic Plan. As a result, CNCS has 

conducted evaluation of the impacts of national service programs on 

volunteers, members, beneficiaries, and communities. 

CNCS conducts research and evaluation projects designed to expand the 

knowledge base for national service and social innovation. The agency’s 

research is conducted via three sources: 

1) carefully-selected and rigorously-designed research and 

evaluation projects; 

2) partnerships with other federal agencies whereby research and 

evaluation projects are co-sponsored; and 

3) evaluation conducted by grantees and sub-grantees, where 

CNCS provides technical assistance, monitoring, and resources 

to measure results and identify promising interventions. 

CNCS research and evaluation initiatives are designed to answer 

important and broad ranging questions, including:

• Which national service interventions and program models 

offer evidence?

• How can we best emphasize evidence and evaluation in the 

grant review process, such that our investments are placed in 

organizations that maximize community impact?

• What are the outcomes of CNCS programs on communities and 

beneficiaries? 

• How is national service a pathway to employment? Does service 

increase knowledge and skills in areas that are valuable or in short 

supply in the labor market?

• What are the trends in volunteering and program participation?

Evaluation Strategic Goals

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

FY 2013 OPERATING LEVEL: $2.8 million*

*Amounts are post across the board and sequestration reductions.

The following is a selection of impact-focused agency evaluations 

in FY 2013: 

Volunteering as a Pathway to Employment—Does Volunteering 

Increase Odds of Finding a Job for the Out of Work? After controlling 

for demographic variables, CNCS research found that after a period 

of unemployment, volunteers had 27 percent higher odds of being 

employed than non-volunteers. The association between volunteering and 

employment had the strongest effect on individuals without a high school 

diploma or equivalent (51 percent increase in odds) and individuals who 

live in rural areas (55 percent increase in odds). The study also found that 

the relationship between volunteering and employment is stable across 

gender, race and ethnic categories, age, time, Metropolitan Statistical 

Area, and unemployment rate.

Evaluation of Minnesota Reading Corps (MRC)—What is the impact 

of the Minnesota Reading Corps on student literacy outcomes? The 

results of the experimental study showed that Kindergarten, first and third 

grade students who received MRC tutoring from AmeriCorps members 

achieved significantly higher literacy assessment scores by the end of the 

first semester than did control students who did not participate in MRC 

tutoring. For example, kindergarten students who participated in the MRC 

program produced more than twice as many correct letter sounds by the 

end of the first semester than did students in the control condition.

Social Innovation Fund (SIF)

The Social Innovation Fund (SIF) improves the lives of people in lowincome communities by mobilizing public and private resources to grow 

innovative, community-driven solutions that have evidence of compelling 

impact in three priority areas of need: economic opportunity, youth 

development, and healthy futures. At a time when public, private, and 

nonprofit organizations are struggling to meet the nation’s most pressing 

challenges, and when tough choices are being made at every level to 

maximize limited resources, the SIF represents a new way of doing 

business for the federal government. 

After controlling for demographic 

variables, CNCS research found 

that after a period of unemployment, 

volunteers had 27 percent higher odds of 

being employed than non-volunteers.
Management’s Discussion & Analysis | PART I 25

The Corporation for National and Community Service

Through an open and highly competitive grant process, the SIF awards 

federal funds to organizations with strong grant making expertise and 

track records of success in identifying, supporting, and evaluating 

nonprofits. These intermediaries match the funds 1:1 with cash from 

private or other non-federal sources; competitively select nonprofits 

(“subgrantees”) to implement compelling evidence-based programs; 

and support the growth and rigorous evaluation of these programs. The 

selected nonprofits must also match the funds they receive with cash 

from non-federal sources. 

Through rigorous evaluation of every funded program, the SIF will identify 

program interventions that have demonstrable impact on communities 

and that can be replicated in communities across the country by 

public and private funders wanting to focus their limited resources on 

efforts that will have the greatest impact. In addition, the SIF National 

Assessment, a comprehensive, systematic effort to be conducted over the 

next four years to assess the impact of SIF, is underway. Progress on the 

national assessment will be summarized and reported annually.

Social Innovation Fund Strategic Goals

3 – Maximize value to grantees, partners, and participants

FY 2013 OPERATING LEVEL: $42.5 million* *Amounts are post across the board and sequestration reductions.

Fiscal Year 2013 represented the third full year of operations for the Social 

Innovation Fund, in which the primary focus was threefold:

• Build a solid programmatic and operational foundation to support 

growth and development of promising, innovative program 

interventions and the generation of compelling outcomes.

• Strengthen the application of the most appropriate levels of evidence 

and monitor the implementation of rigorous evaluations across 

funded program interventions. 

• Develop the knowledge initiative, to share what the SIF is learning 

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

benefit of other federal agencies and the nonprofit sector.

During FY 2013, the SIF achievements include ensuring a healthy 

field of subgrantees implementing interventions and building critical 

partnerships, supporting the evaluation efforts of the programs, and 

collecting and sharing knowledge critical to the SIF network and the 

broader social sector. These achievements include the following:

• More than 200 nonprofit organizations across the country are 

implementing programs with at least a preliminary level of evidence 

as defined in the SIF Notice of Funding Opportunity (2010-2012), 

increasing their reach and strengthening their evaluation capacity 

while implementing rigorous evaluations.

• More than 80 interventions are being implemented as part of the SIF 

program to date. Of the 70 evaluation plans currently underway, 77 

percent are experimental or quasi-experimental designs. During 2014, 

final evaluation results will start to become available and a summary 

of interim results will be produced. Also during 2014, evaluations will 

begin for subgrantees selected in 2013.
Management’s Discussion & Analysis | PART I 26

The Corporation for National and Community Service

Already, these efforts are on track to meet long-term goals for scaling 

and evaluating ground breaking solutions, with 20 intermediary grantees 

funding over 221 nonprofit organizations that have reached more than 

200,000 individuals in 37 states and the District of Columbia to date. 

Examples of SIF programming include:

• Jobs for the Future is working with business communities in local 

regions to determine workforce needs and provide workers with 

targeted training and technical assistance to meet those needs. 

With SIF support, in FY 2013, Jobs for the Future helped to advance 

the careers of more than 8,800 low-income individuals while also 

meeting the critical skill needs of local employers. Through evaluation 

Jobs for the Future will assess the outcomes of participation in 

workforce partnership programs for both employees and employers 

and will help determine the participant characteristics, program 

types, and types of services that yield the most desirable outcomes. 

• Missouri Foundation for Health (MFH) is investing in local 

organizations working in low-income communities to reduce the 

risk factors and prevalence of two preventable causes of chronic 

disease and death: tobacco use and obesity. With SIF support, the 

program provided an additional 8,821 people with health-related 

services. MFH’s evaluation is assessing community-level changes

to local health policy and environmental factors that promote 

healthy activities. 

• Venture Philanthropy Partners (VPP) is investing in six nonprofit 

organizations to build a powerful network addressing the education, 

employment, and healthy behavior needs of low-income youth. 

Over 4,000 youth received services in FY 2013. The evaluations 

being implemented will assess the effectiveness of the six different 

interventions in achieving positive outcomes for youth. 

• The U.S. Soccer Foundation’s Soccer for Success program is 

improving the health of low-income youth by reducing obesity through 

physical activity and nutrition education. Over 12,800 youth were 

served in FY 2013 and are expected to see results such as reduction 

in body mass index ratings, increase in nutrition knowledge, 

and increase in fitness levels. The evaluation will assess the 

effectiveness of this intervention by comparing outcomes for young 

people who participate in the program with those who do not.

The Social Innovation Fund portfolio now represents a $177.6 million 

federal investment that is expected to leverage more than $423 million in 

non-federal resources. SIF intermediaries are investing in over 220 local 

nonprofits and programs have received funding commitments from at 

least 168 non-federal organizations to date.

Training and Technical Assistance 

CNCS provides its staff and service partners with training and technical 

assistance to improve the programmatic quality of current and potential 

national service programs and projects.4

 CNCS’ current training and 

technical assistance strategy focuses on: 1) the development and 

availability of materials and interactive resources through technology; 

2) data analysis of knowledge gains and performance measures for 

performance management purposes; and 3) creating more inclusive 

environments so that all individuals of abilities can serve.

Training and Technical Assistance Strategic Goals

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

FY 2013 OPERATING LEVEL: $1.9 million* *Amounts are post across the board and sequestration reductions.

With thousands of CNCS-sponsored organizations across multiple 

programs supported by Training and Technical Assistance (TTA) funds, 

the agency’s capacity to provide technical assistance and measure the 

effectiveness of training relies on its online infrastructure. Content is 

focused on CNCS training on implementing performance measures and 

program, financial and grants compliance requirements, CNCS delivered 

more training online in 2013 than in the previous year5

, anchored by the 

annual CNCS virtual conference. Based on FY 2013 mid-year reports 

and past year performance trends, CNCS estimates that in FY 2013, TTA 

websites hosted over one million unique visitors, deliver 246 webinars 

experienced by 20,899 participants, provide 200 e-courses and webinars 

completed by 15,000 participants, and support the downloading of 

100,000 resource documents.

In addition to supporting its online training infrastructure, CNCS grantees 

conducted five regional conferences in FY 2013, which provided training to 

4

 The NCSA (1990), as amended by the SAA (2009), authorizes CNCS to use up to 2.5 percent of its program appropriations to fund TTA activities.

5

 CNCS offered 21% more on line courses than the previous year (46 vs. 38) and enrolled 26.9% more individuals in these courses (14,931 vs. 11,767).
Management’s Discussion & Analysis | PART I 27

The Corporation for National and Community Service

more than 1,000 AmeriCorps and Senior Corps grantee and project staff. 

Conference sessions included core competencies utilizing CNCS available 

materials and resources, and included performance measures, and fiscal, 

program and grants compliance. Knowledge gains results for AmeriCorps 

and Senior Corps core competencies will be available in early FY 2014.

Disability Inclusion Grants

Disability inclusion is a priority for CNCS. Pursuant to its authorizing 

legislation, CNCS seeks to expand opportunities for the meaningful and 

successful inclusion of people with disabilities in national service. Our 

disability inclusion strategy supports the objectives of Goal 2 in the 

CNCS strategic plan, strengthening national service so that participants 

engaged in CNCS-supported programs consistently find satisfaction, 

meaning, and opportunity. 

Our disability inclusion strategy mitigates the real and perceived barriers 

to full inclusion of people with disabilities in national service programs. In 

addition, this strategy helps participants to: 

• Engage in a high-quality service experience.

• Find meaning in their service experience that leads to continued 

service in their communities.

• Discover professional, educational, or civic opportunities through 

their service experience. 

• Gain health benefits associated with service, particularly for veterans 

and participants over the age of 55.

Disability Inclusion Grants Strategic Goals

2 - Enhance national service participant experience

FY 2013 OPERATING LEVEL CNCS did not receive an appropriation 

for this line item in FY 2013. However, as authorized by the SAA, CNCS 

funded disability activities with money from its program budget.

For FY 2013, as authorized by the Serve America Act, CNCS used program 

dollars to fund its disability activities.

In order to recruit and retain people with disabilities in national service 

programs, CNCS grantees and project staff need specific knowledge and 

skills to be able to identify potential applicants, articulate the benefits 

of service, design appropriate service experiences, provide reasonable 

accommodations, and create an environment of inclusion and support 

throughout their organizations. 

In FY 2013, to support the goal of inclusion of people with disabilities in 

service, CNCS:

• Partnered with disability organizations and agencies at national, 

state and local levels to leverage expertise and networks around 

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

Massachusetts, CNCS worked with Vocational Rehabilitation 

counselors across the country to identify barriers to participation 

for people with disabilities and solicit participation in recruitment. 

Through disability grants to state service commissions, 25 states 

maintained State Inclusion Teams (formal partnerships with a variety 

of disability support organizations). 

• Through March of FY 2013, CNCS provided training and technical 

assistance, resources, and materials on practices to provide 

knowledge and skills for program and project managers to 

successfully engage people with disabilities. 

• CNCS recently hired a new Disability and Inclusion Advisor to help 

promote a national agenda on engaging people with disabilities in our 

programs with other federal partners as well as private non-profits 

that engage constituent groups with disabilities. 

• CNCS’ objectives are to increase awareness and to ensure that 

individuals with disabilities who want to serve are afforded 

opportunities to do so. In the past, CNCS has faced some challenges 

in assessing service efforts undertaken by individuals with 

disabilities who may choose not to identify their disability status. 

In FY 2013, the Office of Research and Evaluation undertook a 

demographic survey of members in its programs and established 

baseline numbers in which to compare future year’s participants.
Management’s Discussion & Analysis | PART I 28

The Corporation for National and Community Service

Management Performance

Human Capital

CNCS remains committed to ensuring its employees are prepared to do their jobs effectively and efficiently. An important tool in helping the agency meet 

this goal is the employee satisfaction survey, which assesses the extent to which employees believe CNCS provides them with the necessary support to 

achieve mission success. Below are the most recently available data on employee satisfaction. 

Public and Employee Satisfaction Trends (2008–2013)

Performance Objective and Measure

FY09

Actual

FY10

Actual

FY11

Actual

FY12

Actual

FY13

Actual Actual Data Trend FY 09-13

Percent of employees who report overall 

satisfaction with their jobs 68% 73% 69% 65% 67%

As shown in the table above, CNCS employees reported a two percentage 

point increase in job satisfaction between FY 2012 and FY 2013. The FY 

2013 employee satisfaction rate reflects a positive year over year trend 

that CNCS will build upon in FY 2014. While the two percent increase 

over FY 2012 is a modest improvement, this improvement occurred in an 

environment of reduced resources available for employee compensation 

and training. CNCS took a proactive approach to managing its human 

capital resources through restructuring the organization to focus on 

organizational priorities and re-purposing and eliminating resources 

performing redundant or declining functions. 

The BEST Initiative (Build Employee Satisfaction Together) began in FY 

2013 at CNCS to facilitate the agency’s ability to leverage diversity and 

foster inclusion to increase employee engagement and productivity. Led by 

the Office of Civil Rights and Inclusiveness, the first phase of the initiative 

kicked off in March and concluded in June. The initiative introduced senior 

leaders and managers to “The New IQ” (the 20 behaviors identified by OPM 

that lead to an inclusive environment). They participated in discussions 

on utilizing the Employee Viewpoint Survey data as a tool and received 

counseling on using the New IQ to strengthen their programs and units. 

Also in FY 2013, as part of an effort to reduce paper and improve 

service to employees, CNCS, in conjunction with the Office of Personnel 

Management (OPM), implemented an electronic official personnel folder 

system. This E-Government initiative provides employees with easier 

and faster access to their Official Personnel Folder, the file containing 

the employment history of civilian Federal Government employees. This 

transition reduces costs associated with storage, maintenance, and 

retrieval of records while also keeping in compliance with OPM and 

federally mandated HR employee record management regulations. 

Office of Accountability and Oversight (OAO)

CNCS continued to foster a culture of integrity, accountability and 

transparency in FY 2013 by fortifying its internal controls, oversight, and 

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

Plan Goal 4 strategy of promoting adherence to internal controls, CNCS 

established a new Office of Accountability and Oversight (OAO) in April 

2012 and implemented an Integrity Framework that has not been finalized 

as a set of disciplined practices to help ensure CNCS’ organizational 

effectiveness, cohesion, and longevity. This framework identifies integrity 

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

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

continually assess and improve daily business practices. To support this 

proposition, CNCS updated all management team work plans to include an 

enhanced integrity performance standard. 

CNCS, with the coordination of 

OAO, began an intense campaign 

to strengthen grants management 

oversight, improve internal controls 

and address audit findings. Aligning 

with the integrity framework, CNCS 

created the Financial Integrity Steering 

Committee to review internal control 

issues regarding financial reporting 

and financial related systems. 
Management’s Discussion & Analysis | PART I 29

The Corporation for National and Community Service

Accounting and Financial Management Services

As an initiative to increase efficiency through automation, CNCS adopted 

a government standard for streamlining invoice processing management. 

The Department of the Treasury’s Invoice Processing Platform (IPP) was 

implemented by CNCS in FY 2013. The impetus for implementing IPP was 

to achieve greater stability in CNCS’ vendor payments process by moving 

away from a paper-based system. IPP is a secure, Web-based system that 

allows CNCS to more efficiently manage invoicing from purchase order 

through payment notification by enforcing proper workflow in validating, 

approving, and paying invoices. 

Information Technology (IT)

CNCS’ recent IT investments have focused on addressing Goal 4 

of the Agency’s strategic plan to fortify management operations and 

sustain a capable, responsive, and accountable organization. These 

investments have resulted in a core set of IT services to support 

mission needs and robust IT policy, process, and tools to enable secure 

and effective IT management. 

Below are a few of CNCS’ FY 2013 IT accomplishments organized 

by the IT strategy they support.

Support Evolving Agency Mission Requirements

• Completed Phase 2 implementation of the Performance Measures 

module enabling AmeriCorps VISTA, NCCC, and SIF programs 

to establish performance measures and targets and enhance 

reporting of performance measures at program levels. With this 

work completed, grantees can report in eGrants on their progress 

toward achieving agency performance goals thereby strengthening 

accountability and enabling CNCS programs to demonstrate the 

impact of service on the country’s communities.

• Completed the CNCS IT Modernization Roadmap to greatly improve 

grant and member management data quality, timeliness and 

accessibility; and to increase staff efficiency. In FY 2014 CNCS plans 

to develop detailed requirements for several of the highest priority 

modernization projects.

• Initiated an eSPAN system enhancement project to automate/

streamline AmeriCorps VISTA Cost Share collection processes.

Maximize Return on Agency IT Investment

• Began acquisition planning for the re-competition of the CNCS’ 

Managed Data Center contract to reduce IT infrastructure operating 

costs while minimizing the impacts on IT service delivery. 

Manage Agency Information Resources

• Continued data warehouse enhancements adding new, more localized 

(e.g., city, county, Congressional district) data sets to State Profiles 

reports; and new functionality that expands staff access to data 

and self-service analytical tools. These improvements implement the 

basic IT analytical services that will be expanded upon with future IT 

modernization projects. 

• Completed the migration to an agency-wide web content management 

platform resulting in web-site consolidation and operational 

efficiencies. Also, initiated a project to migrate CNCS training and 

technical assistance web based resources to the new platform.

CNCS continued to mature the IT 

governance and management processes 

by strengthening connections between 

the Executive Review Board and lowerlevel system change control boards. These 

updates ensure IT investments are aligned 

with business strategy, well-coordinated 

across the Agency, and effectively 

managed to deliver desired outcomes.
Management’s Discussion & Analysis | PART I 30

The Corporation for National and Community Service

Priority Measures

Grantmaking

As the nation’s largest federal grantmaker devoted exclusively to supporting national and community service projects, CNCS provides nearly $1 billion 

in results-based funding to organizations across the nation that improve lives and strengthen America’s communities. While carrying out its mission, 

CNCS is committed to awarding funds efficiently and the agency uses the priority measures below to help manage and continuously strengthen its 

grant award operations.

As illustrated in the chart below, CNCS continued to award grants efficiently in FY 2013 matching its successful award level of 95 percent from the prior 

year, and exceeding its award target of 85 percent by ten percentage points. CNCS also closed 64 percent of its grants within target timeframes, which 

is four percentage points better than the target level and three percentage points better than the prior year grant closure rate. 

CNCS High Priority Measures

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

Performance Measure FY13 Target FY13 Actual

Financial Statements: 

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

fiscal year end and receive a clean audit opinion on annual financial statements

On time;

Clean opinion

On time;

Clean opinion

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

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

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

Grantmaking:

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

Post all grant competition award data to the Internet within 90 days of completion of the award process6 85% TBD

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

grantees where necessary 85% 89%

Close all grants within 180 days of the performance period end date 60% 64%

6 Actual data for this measure will be available in February 2014.
Management’s Discussion & Analysis | PART I 31

The Corporation for National and Community Service

Internal Controls: 

Management Assurance 

Statements 

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

procedures and operations are sufficient to meet specified management 

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

(including controls over financial reporting) and CNCS’ financial 

management systems, as well as specific annual assurances regarding 

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

briefly describes each of these management objectives, the bases for 

CNCS’ assessments, and provides the specific management assurance 

statements for each area.

Internal Controls (Including Internal Controls over 

Financial Reporting) 

CNCS is subject to the reporting requirements of the Government 

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

requirements, CNCS provides a statement on its internal accounting 

and administrative controls consistent with the requirements of the 

amendments made by the Federal Managers’ Financial Integrity Act 

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

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

Responsibility for Internal Control. Under OMB Circular A-123, CNCS is 

to state its assessment of whether there is reasonable assurance that 

internal controls are achieving the objectives of ensuring (1) effective and 

efficient operations; (2) compliance with applicable laws and regulations; 

and (3) reliable financial reporting. Based on its assessment, CNCS must 

report any identified material weaknesses in internal controls present 

within the agency, and describe management’s current plans to address 

and correct any material weaknesses. 

During FY 2013, CNCS continued to strengthen its internal control 

program by following the requirements of the FMFIA and the Government 

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

appendices, implementing a new internal control governance structure, 

and enhancing its assessment process. 

CNCS’ FY 2013 internal control program is led by the Office of 

Accountability and Oversight (OAO) with significant support from the 

Financial Integrity Steering Committee (FISC) and the CNCS executive 

team. Senior management from across the agency provided support and 

guidance based on their subject matter expertise.

In fiscal year 2013 CNCS adopted an Integrity Control Framework 

which customized government-wide internal control standards to CNCS 

operations. The principles within the Integrity Framework apply to all 

aspects of CNCS’ operations: programmatic, financial, and compliance. 

Implementing the new CNCS Integrity Framework by using well 

established methodologies, like the Government Accountability Office’s 

(GAO) Management Evaluation Tool, allowed CNCS to assess how well its 

detailed policies, procedures, and practices fit the agency’s operations 

and to ensure that internal controls are built into and are an integral part 

of operations. 
Management’s Discussion & Analysis | PART I 32

The Corporation for National and Community Service

In fiscal year 2013 CNCS also adopted GAO’s Risk Management 

Framework as an important tool in planning its assessment of internal 

and management controls. This framework helps identify the areas of 

greatest risk within agency operations and provides indicators as to where 

CNCS should concentrate its efforts to assess the effectiveness and 

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

can determine the scope and frequency of control evaluations it should 

establish. CNCS further incorporated risk assessment and management 

into its overall assessment of internal and management controls by 

conducting a rigorous analysis to meet the OMB Circular A-123 requirement 

to establish materiality levels that provide reasonable assurance that 

significant deficiencies will be detected and corrected in a timely manner.

Through the materiality assessment and by applying the GAO Risk 

Management Framework, CNCS identified the following 13 business 

processes for evaluation in FY 2013.

• Accounts Receivable

• Budget Execution

• Disbursements

• Entity-wide

• Financial Management Systems

• Financial Reporting

• Funds Balance with Treasury

• Grants Management

• Human Capital

• Interest and Investments

• Procurement

• Property and Equipment

• Trust Service Award Liability

To assess the sufficiency of internal and management controls in these 

areas, CNCS established a five step process: 

Step 1: Planning; 

Step 2: Evaluating Internal Control at the Entity Level; 

Step 3: Evaluating Internal Control at the Process Level; 

Step 4: Testing Control Design and Operating Effectiveness 

at the Transaction Level; and 

Step 5: Concluding, Reporting, and Correcting.

These five steps did not necessarily occur in chronological order. Many of 

these steps occurred concurrently throughout the FY13 Internal Controls 

review. In addition, some of the work products were submitted to the OAO; 

other work products were maintained by the unit and made available at 

the OAO’s request.

After carrying out a series of evaluations using the five-step process, 

OAO reported to CNCS’ Chief Executive Officer that it did not uncover any 

material weaknesses or significant deficiencies in CNCS’ internal controls 

over the 13 CNCS business processes which were identified for evaluation. 

CNCS also considered the results of its annual financial statement audit 

as part of its internal controls assessment. Fiscal year 2013 marks the 

14th consecutive year CNCS has earned an unmodified opinion on its 

financial statements. The audit also found no instance of noncompliance 

with laws and regulations. These results reflect CNCS’ commitment to 

sound financial management and the hard work by staff over the past 

year to continuously improve financial operations.

Management Assurances

Management’s Statement of Assurance for Financial Management 

Systems, Operations, and Compliance with Laws and Regulations

CNCS management is responsible for establishing and maintaining 

effective internal control and financial management systems that meet 

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

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

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

required by OMB Circular A-123, CNCS has evaluated its internal control 

and financial management systems to determine whether the FMFIA 

objectives are being met. Based on its assessment (as described above), 

CNCS provides an unqualified statement of reasonable assurance that its 

internal control and financial systems meet the objectives of the FMFIA as 

of September 30, 2013.

Management’s Statement of Assurance for Internal Control over 

Financial Reporting

CNCS’ management is responsible for establishing and maintaining 

effective internal control over financial reporting, which includes 

safeguarding of assets and compliance with applicable laws and 

regulations. CNCS conducted its assessment of the effectiveness of the 

Corporation’s internal control over financial reporting in accordance with 

OMB Circular A-123. Based on the results of this evaluation, CNCS can 

provide reasonable assurance that internal control over financial reporting 

as of June 30, 2013 was operating effectively and that no material 

weaknesses were found in the design or operation of the internal controls 

over financial reporting.

Compliance with Financial Systems Requirements, Accounting 

Standards, and U.S. Standard General Ledger

Although not required by OMB Bulletin 14-02, Audit Requirements 

for Federal Financial Statements, CNCS has adopted the standards 

governing financial systems that were established by the Federal 

Financial Management Improvement Act (FFMIA). FFMIA provides 
Management’s Discussion & Analysis | PART I 33

The Corporation for National and Community Service

guidance to federal agencies in implementing and maintaining financial 

management systems that are in substantial compliance with federal 

financial system requirements, federal accounting standards issued by 

the Federal Accounting Standards Advisory Board, and implementation 

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

the transaction level. Pursuant to FFMIA, OMB issued Circular A-127, 

Financial Management Systems. Circular A-127 prescribes the policies 

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

and reporting on financial management systems.7

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

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

Momentum Financials is a commercial off-the-shelf software application 

certified by the Office of Federal Financial Management as meeting the 

Circular A-127 financial system requirements. By design, activity is posted 

in Momentum Financials following the USSGL at the transaction level.

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

CNCS’ overall information system security assessments. In accordance 

with Federal Information Security Management Act (FISMA), OMB 

policies and guidance, and standards and guidance issued by the 

National Institute of Standards and Technology (NIST), federal agencies 

are required to secure information and information systems through 

the implementation of appropriate risk mitigation strategies. During 

FY 2013 CNCS continued to enhance the awareness of the security state 

of its information systems by prioritizing the monitoring frequencies of 

security controls deemed to have a significant impact on security, and 

by establishing assessment frequencies based on providing adequate 

security commensurate with the risk. These improvements support CNCS’ 

risk management decisions and its situational awareness.

Management’s Statement of Compliance with Financial 

Systems Requirements, Accounting Standards, and U.S. 

Standard General Ledger

Based on its assessments of its financial management systems (as 

described above), CNCS has determined that it substantially complies 

with the requirements of the FFMIA for FY 2013.

National Service Trust Obligations

Section 149(a)(3) of the National and Community Service Act of 1990 

(NCSA), as amended by the Edward M. Kennedy Serve America Act 

(PL 111-13), establishes the specific criteria for timing and recording 

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

requires the Chief Executive Officer of CNCS to annually certify that CNCS 

is in compliance with the requirements of the NCSA with regard to the 

timing and recording of obligations within the Trust.

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

of the accounts and records demonstrating the manner in which CNCS 

has recorded its Trust estimates (see 42 USC 12606). For FY 2013, the 

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

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

opinion that CNCS’ financial reports regarding the National Service Trust 

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

and obligations of the Trust as of September 30, 2013.

Management Certification of Compliance Regarding 

National Service Trust

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

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

FY 2013 it complied with the requirements for recording National Service 

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

David Rebich

Chief Financial Officer

Wendy Spencer

Chief Executive Officer

7 As of October 1, 2013, OMB has suspended the application of Circular A‐127. The requirements related to FFMIA are now found in Appendix D to Circular A‐123.
Management’s Discussion & Analysis | PART I 34

The Corporation for National and Community Service

Analysis of Appropriations 

and Financial Condition

Understanding The Financial Statements

CNCS has a fiduciary and stewardship responsibility to efficiently and 

effectively manage its federal funds and to comply with federal guidance 

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

prepares annual financial statements in conformity with generally accepted 

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

and subjects them to an independent audit to ensure their integrity and 

reliability in assessing performance. For FY 2013 and 2012, CNCS’ financial 

statements received an unmodified opinion. This opinion recognized that 

CNCS’ financial statements are fairly presented, in all material respects in 

conformity with generally accepted accounting principles.

The consolidated financial statements report CNCS’ financial position, 

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

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

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

the principal financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position (income 

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

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

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities.

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

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

information about the budgetary resources made available to CNCS and 

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

Composition of CNCS Assets

The Statement of Financial Position presents the total amounts available 

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

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

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

and Trust Investments and Related Receivables.

In FY 2013, total assets increased less than one percent over the balance 

at the end of FY 2012. The majority of the $4.5 million increase occurred 

in the Trust Investments and Related Receivables and Property and 

Equipment offset with a decrease in FBWT account. 

Trust Investments and Related Receivables are used to pay Segal 

AmeriCorps Education Awards for eligible participants who complete 

AmeriCorps service. Funding for the Trust comes from appropriations; 

interest earned, and proceeds from the sale or redemption of investments. 

The account increased by $54.6 million reflecting the investment of FY 

2013 appropriations for new AmeriCorps positions awarded during the 

year net of payments made on previously earned awards.

Property and Equipment represent capital investments made in software 

enhancements. These investments for FY 2013 increased Property and 

Equipment $1.7 million.

FBWT is funding available to CNCS to make expenditures for authorized 

expenses through the disbursement authority of the Department of the 

Treasury. The FBWT is increased through appropriations and collections 

and decreased by expenditures and rescissions. The decrease in FY 2013 

primarily results from reductions in appropriations received. 

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

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

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

is the estimated value of authorized education benefits, discounted for 

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

value of money. 

CNCS has also set aside a Trust reserve of $50.1 million (including $3.5 

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

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

actual results. During FY 2013, CNCS based its obligation amount on the 

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

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

depending on term type.
Management’s Discussion & Analysis | PART I 35

The Corporation for National and Community Service

CNCS Assets as of September 30, 2013

Fund Balance with Treasury 55%

Trust Investments and Related Receivables 41%

Advances to Others 3%

Accounts Receivable, Net 1%

41% Property and Equipment, Net 0%

3%

1%

0%

55%

As of September 30, 2013, the National Service Trust had available cash, 

investments, and other assets of about $694.0 million to make education 

award and interest forbearance payments. Of this amount, CNCS’ 

unliquidated obligations for awarded AmeriCorps positions totaled about 

$200.1 million. About $40.2 million was available at year-end to fund 

new AmeriCorps member positions, of which $1.9 million derives from 

Recovery Act funding, which cannot be used without new authorization. 

Trust assets are estimated to be fully sufficient to pay for all awarded 

AmeriCorps positions. As grants expire, CNCS deobligates funds related 

to member positions that were not filled. CNCS also continuously 

analyzes Trust operations and liability projections to identify any needed 

adjustments to obligations.

Advances to Others mainly represent funds provided to grantees in 

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

advances are liquidated during the first quarter of the subsequent fiscal 

year. Advances to Others decreased by about two percent, from $57 

million at September 30, 2012 to $56 million at September 30, 2013, 

reflecting decreased funding level for 2013 programs.

Composition of Corporation Liabilities

CNCS’ most significant liabilities are the Trust Service Award Liability and 

Grants Payable. Individuals who successfully complete terms of service 

in AmeriCorps programs earn education awards that can be used to 

make payments on qualified student loans or for educational expenses 

at qualified educational institutions. The awards, which can be used for 

a period of up to seven years, are paid from the National Service Trust. 

Since CNCS’ inception through FY 2009 the maximum amount of an 

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

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

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

throughout FY 2013.

The Trust also pays forbearance interest on qualified student loans during 

the period members perform community service. Each year the award 

liability components related to education awards and interest forbearance 

are adjusted to reflect current trends. For FY 2013, the Trust Service 

Award Liability increased by $17.1 million, about four percent, due to the 

continued enrollment of members in AmeriCorps programs, increased 

member enrollment related to FEMA Corps, the increase in the value of an 

education award, and a slight increase in the projected usage rate. 

Grants Payable represents funds due to grantees in payment of their 

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

liquidated during the first quarter of the subsequent fiscal year. 

Grants Payable increased two percent, from $100.8 million at September 

30, 2012 to $103.1 million at September 30, 2013, reflecting increased 

grant activity from prior years.
Management’s Discussion & Analysis | PART I 36

The Corporation for National and Community Service

CNCS Liabilities as of September 30, 2013

2%

7%

1%

2%

Trust Service Award Liability 72%

Grants Payable 16%

Actuarial FECA Liability 2%

Advances from Others 7%

Other Liabilities 2%

Accrued Annual Leave 1%

Accounts Payable 0%

16%

72%

0%

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

performed at a future date. This liability increased $12.4 million during 

FY 2013 to support FEMA Corps related activity. 

Results of Operations

The Statement of Operations and Changes in Net Position presents 

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

of operating CNCS programs. CNCS recognizes its use of appropriated 

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

or administrative expenses. Appropriations received for the CNCS Trust 

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

an appropriate cost accounting methodology, CNCS’ expenses have 

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

Costs for each major CNCS program are reported separately. Program 

costs include grant expenses, and direct and allocated personnel and 

administrative costs including AmeriCorps recruitment and National 

Service Trust operations.

For FY 2013, CNCS Revenue totaled $1.087 billion, an increase of $13.0 

million, or one percent, from FY 2012. Total Expenses reported for FY 2013 

were $1.057 billion which represents a decrease of $15.9 million, or 2 

percent, from FY 2012. The decrease reflects the reduced funding level in 

FY 2013 for all of CNCS’ programs. 

CNCS’ net revenue over expenses for FY 2013 was $30.1 million which 

is an increase of $28.9 million compared to FY 2012. The increase is 

primarily attributable to revenue earned and collected in support of 

FEMA Corps related activities. 

Budgetary Resources

The Statement of Budgetary Resources provides information on how 

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

status of those budgetary resources at year-end. For FY 2013, Total 

Budgetary Resources increased $12.4 million and Total Obligations 

Incurred increased $4.3 million due primarily to reimbursable activity 

related to FEMA Corp. 
Management’s Discussion & Analysis | PART I 37

The Corporation for National and Community Service

CNCS Expenses for the Period Ended September 30, 2013

4%

1%

0%

AmeriCorps 74%

Office of the Inspector General 0%

Senior Corps 21%

Innovation, Demonstration, and Assistance 4%

Learn and Serve America 1%

21%

74%

Future Business Trends and Events

CNCS is cognizant of our responsibility to effectively manage and operate 

programs funded through taxpayer dollars. CNCS take a broad view of 

financial management, seeking to continuously improve and integrate 

its financial operations and processes to provide for better oversight, 

transparency, and accountability of the resources we manage. As we 

closely monitor resources, we will continue to focus on discerning the 

value of the goods and services we receive for the resources we expend. 

Following are some of the accomplishments CNCS plans to achieve that 

improve our ability to better manage our resources:

 • Grant Award Process Improvements—During FY 2013, CNCS 

piloted a financial analysis of grantees during the grant application 

review phase for the AmeriCorps grant competition. The financial 

analysis was one of several factors considered in the pre-award 

phase. CNCS is evaluating criteria and the data reliability of the pilot 

prior to operationalizing the assessment in future grant competitions. 

• Invoice Processing Platform (IPP)—CNCS implemented the 

interface to Treasury’s Invoice Processing Platform (IPP). The 

interface went live in June of FY 2013. IPP gives CNCS the capability 

to process vendor invoices electronically using the systems workflow 

management capability. The workflow management has improved the 

efficiency and timeliness of invoice processing. As we move into 

FY 2014, IPP will become more fully utilized as is operationalized for 

FY 2014 procurements.

• Integration with Treasury’s Central Accounting and Reporting 

System (CARS)—CNCS plans to fully transition to Treasury’s Central 

Accounting and Reporting System (CARS) during the 2nd Quarter 

of FY 2014. This will be the culmination of nearly a year-long effort 

at CNCS, which will streamline our central transaction reporting 

processes. The result will be real-time reporting of our payment and 

collection transactions to Treasury instead of monthly reporting, 

providing real-time updates to our Fund Balance with Treasury. 

• Implementation of the Government-wide Treasury Account 

Symbol (GTAS) System—CNCS will also be ready to implement 

GTAS reporting in the 2nd quarter of FY 2014. We will provide a single 

Trial Balance report to Treasury that will eliminate the need to submit 

multiple Treasury and OMB financial and budgetary reports. This will 

greatly improve the integrity and consistency of the data we provide 

to Treasury, while eliminating redundant reporting submission to 

various Treasury systems.

• Collection Information Repository (CIR) Interface—In an effort 

to implement an all-electronic accounting and finance operation, we 

will be interfacing with Treasury’s Collection Information Repository 

(CIR). By doing so, we will automate the accounting of all collection 
Management’s Discussion & Analysis | PART I 38

The Corporation for National and Community Service

data posted into our agency accounting system. Integrating with the 

CIR will drastically increase the timeliness and accuracy of collection 

transaction processing thus reducing manual transaction processing 

and reconciliation processes.

• IT Modernization—CNCS will begin implementing a series of 

business initiatives and IT projects aimed at modernizing business 

processes and IT systems. Key objectives include:

• Providing more accurate, timely and targeted information for 

agency decision makers, partners, and the public; 

• Increasing staff and grantee productivity through streamlined 

navigation and functionality of grants and member management 

systems; and 

• Increasing agency engagement with the public through enhanced 

web site features and mobile-friendly applications.

CNCS will initially focus on updating the technology used to support 

back-office processes related to grant and member (i.e., volunteer) 

service; pursuing new grant application review process automation to 

support virtual reviews and meet anticipated increases in grant volume 

associated with new partnerships; and implementing new capability to 

improve analytical support and expand access to information.

• Upgrade Critical IT Infrastructure—CNCS will be upgrading 

old, critical IT infrastructure including network core, switches, and 

telecommunication system which are end of life and foundational to 

communication services. These upgrades will address operational 

risk by avoiding unexpected failures and service interruptions. 

• Data warehouse—CNCS will continue to add new, data sets to 

State Profile reports; and expand functionality that enables staff to 

have self-service access to data sets from across the Programs to 

help explain why service matters and support Program management, 

oversight, and accountability.

• Web Consolidation—CNCS will continue to consolidate web sites 

to improve user experience and streamline management of content 

infrastructure resulting in new operational efficiencies.
Financial Statements | PART II 39

The Corporation for National and Community Service

Message from 

the CFO

As a Federal agency that is accountable to the taxpayers, the 

Corporation for National and Community Service (CNCS) strives to 

provide efficient and cost-effective national service programs. The 

CNCS Agency Financial Report (AFR) presents a comprehensive report 

on financial operations 

and provides transparency and accountability to the American people. 

I am pleased to report that for the 14th consecutive year, CNCS has 

earned an unmodified opinion on it’s AFR. This accomplishment 

demonstrates an on-going commitment to strong fiscal stewardship 

of the resources provided to CNCS. The Office of the Chief Financial 

Officer leads CNCS’ efforts to deliver cost effective programs, through 

sound fiscal management of resources. Our efforts resulted in the 

removal of our single material weakness from our FY 2011 and FY 2012 

audits. We made significant progress 

by implementing a comprehensive internal controls assessment 

program. We also addressed other management letter findings from 

the 2012 audit. Two organizational factors can be directly attributed 

to our improvement:

• The establishment of the Office of Accountability and Oversight in 

April 2012, which reports directly to the Chief Operating Officer, 

and

• The establishment of the Financial Integrity Steering Committee 

(FISC), which replaced the Senior Assessment Team, that focuses 

on correcting financial management issues here at CNCS.

These two advances demonstrate the overall importance that CNCS 

places on accountability and fiscal responsibility. The early work 

performed by the Office of Accountability and Oversight improved 

CNCS’ ability to assess and report on internal controls throughout 

the organization. The FISC has provided focused attention and 

discipline on implementing corrective actions that address the audit 

findings contained in last year’s AFR. As a result, CNCS has removed 

a material weakness, closed three Management Letter findings cited in 

FY 2012, and made progress regarding six other FY 2012 Management 

Letter findings.

Like most federal agencies, the advent of sequestration in FY 2013 

provided significant challenges to CNCS. To meet the sequestration 

related challenges, CNCS established hiring and spending control 

committees to ensure that only the highest priority items were funded 

during FY 2013. Through strict priority management, and sound 

financial management, CNCS provided outstanding national service 

and volunteerism programs.

These accomplishments provide the foundation for sound 

organizational and financial management. However, we need to 

continue to improve and address challenges as we move forward. 

CNCS remains committed to taking action and implementing 

processes that will improve internal controls and maximize CNCS’ 

stewardship of our resources. The CFO organization is committed to 

streamlining and improving its fiscal operations to meet the mission 

and goals of CNCS. In meeting these challenges, CNCS will continue 

to practice strong financial management as shown through the 

information provided in this year’s AFR.

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

professionals throughout the agency for their continued dedication and 

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

the most accurate, transparent, and useful information possible.

David Rebich

Chief Financial Officer
Financial Statements | PART II 40

The Corporation for National and Community Service

Section II:

Financial

Statements

Consolidated Financial 

Statements

CNCS’ consolidated financial statements report its financial position, 

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

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

13331, National and Community Service Programs. The Act requires 

that government corporations submit an annual report including the 

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

principal financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position (income 

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

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

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities.

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

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

financial statement. The SBR provides information about the budgetary 

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

the end of the fiscal year.

CNCS’ financial statements provide comparative information for FY 

2013 and 2012. For FY 2013, CNCS’ financial statements, for the 14th 

consecutive year, received an unmodified opinion. This opinion recognizes 

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

respects in conformity with generally accepted accounting principles. 

Also presented in Section IV, Other Information of this report is the 

National Service Trust Fund Status Report which includes the Statements 

of Financial Position; Operations, Changes in Net Position, Cash Flows, 

and Budgetary Resources prepared in accordance with Generally Accepted 

Accounting Principles (GAAP) as required by the Government Corporation 

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

Service Programs. These principal statements and the accompanying 

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

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

Limitations of the Financial Statements

The principal financial statements have been prepared in compliance with 

the reporting requirements described above. CNCS’ financial statements 

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

and control budgetary resources which are prepared from the same 

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

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

An implication of this is that liabilities cannot be liquidated without 

legislation that provides the resources to do so.
Financial Statements | PART II 41

The Corporation for National and Community Service

Corporation for National and Community Service 

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

Assets 2013 2012

Fund Balance with Treasury (Note 2) $ 914,224 $ 965,928

Trust Investments and Related Receivables (Note 3) 693,165 638,565

Advances to Others 56,000 57,298

Accounts Receivable, Net (Note 4) 9,601 8,483

Property and Equipment, Net (Note 5) 3,346 1,610

Total Assets $ 1,676,336 $ 1,671,884

Liabilities

Trust Service Award Liability (Note 6) $ 464,274 $ 447,191

Grants Payable 103,125 100,791

Accounts Payable 4,466 2,860

Actuarial FECA Liability (Note 8) 9,702 9,783

Advances from Others 46,121 33,696

Accrued Annual Leave 4,129 4,140

Other Liabilities 12,042 14,220

Total Liabilities 643,859 612,681

Contingencies (Note 14) — —

NET POSITION (Note 9) $ 1,032,477 $ 1,059,203

Total Liabilities and Net Position $ 1,676,336 $ 1,671,884

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

The Corporation for National and Community Service

Corporation for National and Community Service 

Consolidated Statements of Operations and Changes 

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

Revenue 2013 2012

Appropriated Capital Used $ 808,085 $ 824,684 

Appropriations Received by the National Service Trust (Note 10) 223,568 211,916 

Interest 3,133 4,434 

Revenue from Services Provided 34,816 18,834 

Other 17,231 13,953 

Total Revenue $ 1,086,833 $ 1,073,821 

Expenses

AmeriCorps $ 778,211 $ 792,475 

SeniorCorps 223,235 222,315 

Learn and Serve America 6,048 17,801 

Innovation, Demonstration and Assistance Activities 47,355 34,748 

Office of the Inspector General 3,392 5,241 

Total Expenses (Note 11) 1,058,241 1,072,580 

Net of Revenue Over Expenses $ 28,592 $ 1,241 

Net Position

Net of Revenue over Expenses $ 28,592 $ 1,241

Increase/(Decrease) in Unexpended Appropriations, Net (Note 13) (55,318) (11,257)

Increase/(Decrease) in Net Position, Net (26,726) (10,016)

Net Position, Beginning Balance 1,059,203 1,069,219

Net Position, Ending Balance (Note 9) $ 1,032,477 $ 1,059,203

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

The Corporation for National and Community Service

Corporation for National and Community Service 

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

CASH FLOWS FROM OPERATING ACTIVITIES 2013 2012

Net of Revenue over Expenses $ 28,592 $ 1,241 

Adjustments Affecting Cash Flow:

Depreciation, Amortization, and Loss on Disposition of Assets 801 88 

Amortization of Premium/Discount on Investments 1,795 (2,811) 

Appropriated Capital Used (808,085) (824,684) 

Appropriations Received in Trust (223,568) (211,916)

Decrease/(Increase) in Accounts Receivable (1,118) (876)

Decrease/(Increase) in Interest Receivable 136 385 

Decrease/(Increase) in Advances to Others 1,298 7,644 

Increase/(Decrease) in Accounts Payable and Other Liabilities (571) 3,031 

Increase/(Decrease) in Advances from Others 12,425 33,629 

Increase/(Decrease) in FECA and Annual Leave Liabilities (92) 710 

Increase/(Decrease) in Trust Liability 17,083 36,930 

Increase/(Decrease) in Grants Payable 2,334 (14,406)

Total Adjustments (997,562) (972,276)

Net Cash Provided/(Used) by Operating Activities (968,970) (971,035)

CASH FLOWS FROM INVESTING ACTIVITIES

Sales of Securities 729,799 831,264 

Purchase of Assets (2,537) (772)

Purchase of Securities (786,331) (861,742)

Net Cash Provided/(Used) in Investing Activities (59,069) (31,250)

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received, Net of Trust 1,048,884 1,050,870

Rescissions and Cancellations (72,549) (25,527)

Net Cash Provided by Financing Activities 976,335 1,025,343

Net Increase/(Decrease) in Fund Balance with Treasury (51,704) 23,058

Fund Balance with Treasury, Beginning 965,928 942,870 

Fund Balance with Treasury, Ending $ 914,224 965,928 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 44

The Corporation for National and Community Service

Corporation for National and Community Service 

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

BUDGETARY RESOURCES 2013 2012

Unobligated balance, brought forward, October 1 $ 205,105 $ 156,728 

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

 Unobligated balance brought forward, Oct 1, as adjusted 205,100 156,728

Recoveries of prior year unpaid obligations 33,850 28,175 

Other changes in unobligated balance (+ or -) (17,692) (23,546)

Unobligated balance from prior year budget authority, net 221,258 161,357

Budget authority: 

Appropriation Discretionary 1,048,884 1,050,870 

Appropriation (special or trust fund) 223,770 212,122 

Permanent Reduction – New Budget Authority (54,857) (1,986)

Appropriation Discretionary (total) 1,217,797 1,261,006 

Appropriation Mandatory (special or trust fund) 1,295 3,856 

Appropriations (discretionary and mandatory) 1,219,092 1,264,862 

Spending authority from offsetting collections: 

Spending Authority from offsetting collections (total) 52,845 54,547 

Total budgetary resources $ 1,493,195 $ 1,480,766 

STATUS OF BUDGETARY RESOURCES 

Obligations incurred

Obligations incurred (total) (Note 17) $ 1,279,940 $ 1,275,661

Unobligated balance 

Apportioned 52,837 35,030

Unobligated balance not available 160,418 170,075

Total unobligated balance, end of year 213,255 205,105

Total budgetary resources $ 1,493,195 $ 1,480,766 

 (Continued)

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 45

The Corporation for National and Community Service

 (Continued)

Corporation for National and Community Service 

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

CHANGE IN OBLIGATED BALANCE 2013 2012

Unpaid obligations: 

Unpaid obligations, brought forward, October 1 $ 1,393,997 $ 1,387,883

Obligations incurred 1,279,941 1,275,661 

Outlays (gross) (-) (1,252,314) (1,241,372)

Recoveries of prior year unpaid obligations, actual (33,845) (28,175)

Unpaid Obligations, end of year 1,387,779 1,393,997 

Uncollected Payments:

Uncollected payments, Federal Sources, brought forward, October 1 (106) (539)

Change in uncollected customer payments, Federal sources 2 433

Uncollected payments, Federal Sources, end of year (104) (106)

Memorandum entries:

Obligated balance, start of year $ 1,393,891 $ 1,387,344 

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

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) $ 1,271,937 $ 1,319,409 

Actual offsetting collections (52,847) (54,980)

Change in uncollected customer payments from federal sources 2 433 

Budget authority, net (discretionary and mandatory) $ 1,219,092 $ 1,264,862 

Outlay, gross (discretionary and mandatory) 1,252,314 1,241,372 

Actual offsetting collections (52,847) (54,980)

Outlays, net (discretionary and mandatory) 1,199,467 1,186,392 

Distributed offsetting receipts (224,088) (213,058)

Agency Outlays, net (discretionary and mandatory) $ 975,379 $ 973,334 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 46

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies

A. REPORTING ENTITY

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

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

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

and foster civic engagement through service and volunteering. To meet 

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

local municipalities, and nonprofit organizations to help communities 

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

environmental stewardship, economic opportunity, disaster services, and 

assisting veterans and military families through volunteer service. CNCS’ 

major programs are:

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

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

challenges. Senior Corps 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:

• 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; and

• National Civilian Community Corps (NCCC) strengthens communities 

while developing leaders through direct, team-based national and 

community service.

CNCS, for the most part, administered its programs in fiscal year 2013 

from the following funds:

Trust and Gift Funds:

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

education awards and interest forbearance for volunteers under the 

AmeriCorps State and National; NCCC; and VISTA programs.

• Gifts and Contributions, into which CNCS deposited qualified gifts 

and contributions from individuals and organizations from which 

approved expenditures are made furthering CNCS’ goals.

Appropriated Funds:

• Operating Expenses, from which the Corporation funded Senior 

Corps, AmeriCorps and other program activity.

• Salaries and Expenses, from which the Corporation funded its 

general administrative expenses.

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

the OIG.

• 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’ expenses 

to improve IT systems and administer the increased AmeriCorps State 

and National and VISTA membership.

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

the expenses of the OIG’s Recovery Act oversight responsibilities.

B. BASIS OF ACCOUNTING

The accompanying financial Statements include all funds administered 

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

CNCS’ activities related to providing grants and other assistance to 

eligible states, local governments, and nonprofit organizations as well as 

education awards to eligible national service participants. All significant 

intra-entity transactions and balances are eliminated in consolidation.

 C. FINANCIAL STATEMENT PRESENTATION AND 

CONSOLIDATION POLICY

The accompanying financial statements report CNCS’ financial position, 

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

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

financial statements of CNCS are the:

• Statement of Financial Position, which reports the status of 

Corporation assets, liabilities, and net position;

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

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

position that occurred during the year; and
Financial Statements | PART II 47

The Corporation for National and Community Service

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities.

The financial statements are presented in accordance with the accounting 

principles generally accepted in the United States of America (GAAP), as 

applicable to federal government corporations. The Federal Accounting 

Standards Advisory Board (FASAB) is the standard setting body for the 

federal government. Statement of Federal Financial Accounting Standards 

Number 34 (SFFAS 34) provides that financial statements prepared 

by certain government corporations in conformity with the accounting 

standards issued by the Financial Accounting Standards Board (FASB) 

are regarded as being in conformity with GAAP. As provided by SFFAS 

34, where there is no standard issued by FASB applicable to the federal 

corporation the financial statements are presented in accordance with the 

accounting standards issued by FASAB.

In addition, under Executive Order 13331, National and Community 

Service Programs, CNCS must prepare a Combined Statement of 

Budgetary Resources as a principal statement. The accompanying 

Combined Statements of Budgetary Resources have been prepared in 

accordance with GAAP, as prescribed by FASAB. The Combined Statement 

of Budgetary Resources presents additional details to include activity that 

is significant to the CNCS. 

CNCS’ consolidation policy requires the consolidation of all funds 

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

D. BUDGETS AND BUDGETARY ACCOUNTING

The activities of CNCS are primarily funded through the annual 

Departments of Labor, Health and Human Services, Education and 

Related Agencies Appropriation Act. CNCS’ accounting structure reflects 

both accrual and budgetary accounting transactions. Under the accrual 

method of accounting, revenues are recognized when earned and 

expenses are recognized when incurred, without regard to the actual 

collection or payment of cash. Federal budgetary accounting recognizes 

the obligation of appropriations and other funds upon the establishment 

of a properly documented legal liability, which, in many cases, is different 

from the recording of an accrual-based transaction. The recognition of 

budgetary accounting transactions is essential for compliance with legal 

controls over the use of federal funds.

E. ASSET AND LIABILITY VALUATION

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

of September 30, 2013, the carrying amounts of Fund Balance with Treasury, 

Accounts Receivable, Advances to Others, Accrued Interest Receivable, 

Accounts Payable and Other Liabilities approximate their fair value.

F. FUND BALANCE WITH TREASURY

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

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

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

disbursements on behalf of CNCS and CNCS’ accounting records are 

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

includes all of its appropriated and trust funds.

The FBWT maintained in the National Service Trust is restricted to specific 

purposes, such as paying service awards earned by eligible participants, 

and is not available for use in the current operations of CNCS. In addition, 

the majority of the funds received from individuals and organizations for 

deposit in the Gifts and Contributions fund are restricted for particular 

uses, such as service projects.

G. INVESTMENTS AND RELATED RECEIVABLES

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

interest-bearing Treasury securities guaranteed by the United States 

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

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

on the open market. They consist of Treasury notes, bonds, bills and 

one-day certificates.

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

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

discounts. The premiums and discounts are recognized as adjustments to 

interest income, using the effective interest method. Interest receivable 

represents amounts earned, but not received on investments held at 

year-end. Prepaid interest is the amount of interest earned on a security 

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

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

interest receivable balance.

H. CASH EQUIVALENTS

For purposes of the statement of cash flows, CNCS considers all interestbearing Treasury securities guaranteed by the United States to be cash 

equivalents.

I. 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.
Financial Statements | PART II 48

The Corporation for National and Community Service

J. 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.

K. PROPERTY AND EQUIPMENT

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

to acquisition, delivery, and installation, less accumulated depreciation 

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

property and equipment are expensed when incurred.

CNCS’ general policy is to capitalize Property and Equipment if the 

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

equipment with an estimated useful life that extends beyond the year 

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

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

from two to 10 years.

L. 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.

M. 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.

N. 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.

O. 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 Corporation 

employees and members under FECA are determined and paid by the 

Department of Labor (DOL) and later billed to CNCS. CNCS’ actuarial 

liability for workers’ compensation includes costs incurred, but unbilled as 

of year-end, as calculated by DOL. CNCS reimburses DOL for FECA claims 

out of current appropriations upon receipt of a bill from DOL.

P. 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 Corporation employees under FECA that have 

been paid by DOL and billed to CNCS but have not yet been reimbursed to 

DOL, and imputed costs for future retirement and health care benefits as 

determined by an Office of Personnel Management calculation.

Q. 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.

R. 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.

S. NET POSITION

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

appropriations and its cumulative results of operations. Unexpended 

appropriations reflect the balance of appropriated authority granted to 

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

operations represent the net differences between revenues and expenses 

from the inception of CNCS.

T. REVENUE RECOGNITION

Appropriated Capital Used. CNCS recognizes its use of appropriated 

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

or administrative expenses. Appropriations expended for property and 

equipment are recognized as used when the property is purchased. 

Appropriated capital not expended within five fiscal years after it 

became available for obligation is cancelled. Unpaid obligations recorded 

against cancelled appropriated capital are paid from currently available 
Financial Statements | PART II 49

The Corporation for National and Community Service

appropriated funds as payments become due. Appropriations received 

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

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

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

award purposes.

Interest on Investments. Interest income is recognized when earned. 

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

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

income is adjusted by amortization of premiums and discounts using the 

effective interest method.

Revenue from Services Provided. CNCS also receives income from 

reimbursable service agreements that is recorded as revenue from 

services provided. Revenue from services provided is recognized when 

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

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

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

Gifts and Contributions Fund.

U. RETIREMENT BENEFITS

CNCS’ employees participate in either the Civil Service Retirement System 

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

established by the enactment of Public Law 99-335. Pursuant to this law, 

FERS and Social Security automatically cover most employees hired after 

December 31, 1983. Employees hired prior to January 1, 1984 elected to 

join FERS and Social Security or remained in the CSRS.

For employees covered by CSRS, CNCS contributes 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 percent of pay, for 

a maximum CNCS contribution amounting to 5 percent of pay. Employees 

under CSRS may participate in the TSP, but will not receive either CNCS’ 

automatic or matching contributions.

V. INCOME TAXES

As a federal entity, CNCS is exempt from all income taxes imposed by 

any governing body, Federal, State, commonwealth, local, or foreign 

government.

W. 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’ 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.

X. Comparative Data

CNCS financial statements provide comparative information for FY 2013 

and 2012. Certain prior year amounts have been reclassified to conform 

to current year presentation and better reflect CNCS’ operations under its 

reauthorization. Specifically, the Statement of Budgetary Resources was 

realigned as prescribed by FASAB. In addition, amounts presented on the 

Statement of Budgetary Resources as Refunds and Recoveries temporarily 

precluded from obligations in the prior year were adjusted per OMB 

guidance and are reflected as Adjustment to unobligated balance brought 

forward, Oct 1 for the period ended September 30, 2013. 

Y. CONCENTRATION OF RISKS

Congress annually considers whether to fund CNCS’ program and 

operational activities. Should Congress opt not to enact appropriations 

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

management believes the risk of such an occurrence is remote. 
Financial Statements | PART II 50

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury

U.S. Government cash is accounted for on an overall consolidated basis by 

the U.S. Department of Treasury. The Fund Balance with Treasury line on 

the Statement of Financial Position consists of the following:

Appropriated Funds—Appropriated funds are received through 

congressional appropriations to provide financing sources for CNCS’ 

programs on an annual, multi-year, and no-year basis.

Trust Funds—Trust funds are accounts designated by law for receipts 

earmarked for specific purposes and for the expenditure of these receipts. 

Funds from the National Service Trust may be expended for the purpose 

of providing an education award or student loan interest forbearance 

payment and are made directly to a qualified institution (college, 

university, or other approved educational institution, or a 

lending institution holding an existing student loan) as designated 

by the participant. The National Service Trust also pays awards under 

the President’s Freedom Scholarship, Summer of Service, and Silver 

Scholar programs.

Gift Funds—Gift Funds are funds received from individuals and 

organizations as donations in furtherance of the purposes of national 

service laws. 

Fund Balance with Treasury as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 912,962 $ - $ 912,962 

Trust Funds - 611 611 

Gift Funds - 651 651 

Total $ 912,962 $ 1,262 $ 914,224 

Fund Balance with Treasury as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 960,310 $ - $ 960,310 

Trust Funds - 4,951 4,951 

Gift Funds - 667 667 

Total $ 960,310 $ 5,618 $ 965,928 
Financial Statements | PART II 51

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury—Continued

Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 912,962 $ 1,262 $ 914,224 

Investments and Related Receivables - 693,165 693,165 

Total $ 912,962 $ 694,427 $1,607,389 

Status of Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 117,527 $ 51,990 $ 169,517 

 Unavailable - 50,197 50,197 

Obligated not yet Disbursed 795,435 592,240 1,387,675 

Total $ 912,962 $ 694,427 $1,607,389 

Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 960,310 $ 5,618 $ 965,928 

Investments and Related Receivables - 638,565 638,565 

Total $ 960,310 $ 644,183 $1,604,493 

Status of Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 130,960 $ 79,642 $ 210,602 

 Unavailable - - - 

Obligated not yet Disbursed 829,350 564,541 1,393,891 

Total $ 960,310 $ 644,183 $1,604,493 
Financial Statements | PART II 52

The Corporation for National and Community Service

NOTE 3—National Service Trust Investments and Related Receivables

The composition of National Service Trust Investments and Related receivables at September 30 is as follows:

Investments and Related Receivables as of September 30 (dollars in thousands)

2013 2012

Investments, Carrying Value $ 692,243 $ 637,507 

Interest Receivable 922 1,058

Total $ 693,165 $ 638,565

Amortized Cost and Fair Value of Investment Securities as of September 30, 2013 (dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 512,220 $ 1,560 $ 513,780 

Bills 180,023 11 180,034 

Total $ 692,243 $ 1,571 $ 693,814 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2012 (dollars in thousands)

 Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 477,115 $ 3,045 $ 480,160 

Bills 160,392 5 160,397 

Total $ 637,507 $ 3,050 $ 640,557 

At September 30, 2013, the notes held at year-end had an interest rate 

range of 0.250 percent to 4.25 percent and an outstanding maturity 

period of approximately seven days to three years. The bills held at yearend had an interest rate range of 0.000 percent to 0.175 percent and were 

all due to mature within 364 days. The par values of these bills range from 

$.2 million to $33.0 million. The fair value of the bills and notes is based 

on bid and ask prices quoted by the Treasury as of September 30, 2013 

and 2012.

Since fiscal 2003, CNCS has set aside in reserve a portion of the funds in 

the National Service Trust for use in the event that its estimates used to 

calculate obligational amounts for education awards prove to be too low. 

This reserve was originally required by the Strengthen AmeriCorps Program 

Act, and is now required by section 149(b) of the National and Community 

Service Act (42 U.S.C. 12606(b)). As of September 30, 2013, $50.2 million 

of CNCS’ investment account has been set aside for this reserve.
Financial Statements | PART II 53

The Corporation for National and Community Service

NOTE 3—Trust Investments and Related Receivables—Continued

Investments held at September 30 mature according to the following schedule:

Maturation of Securities Held as of September 30 (dollars in thousands)

2013 2012

Amortized Amortized

Held-to-Maturity Securities Cost Fair Value Cost Fair Value

Due in 1 year or less $ 441,185 $ 441,710 $ 327,537 $ 327,780 

Due after 1 year up to 5 years 251,058 252,104 309,970 312,777 

Total $ 692,243 $ 693,814 $ 637,507 $ 640,557

NOTE 4 – Accounts Receivables, Net

Accounts Receivable as of September 30 (dollars in thousands)

Appropriated Funds Trust Fund Total

2013

Accounts receivable $ 9,962 $ 281 $ 10,243 

Less: allowance for loss on receivables (595) (47) (642)

Accounts Receivable, Net $ 9,367 $ 234 $ 9,601 

2012

Accounts receivable $ 8,616 $ 289 $ 8,905 

Less: allowance for loss on receivables (384) (38) (422)

Accounts Receivable, Net $ 8,232 $ 251 $ 8,483
Financial Statements | PART II 54

The Corporation for National and Community Service

NOTE 5—Property and Equipment, Net

General Property and Equipment as of September 30, 2013 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 2,586 $ (2,065) $ 521 

ADP software 2 11,983 (9,158) 2,825 

Total $ 14,569 $ (11,223) $ 3,346 

NOTE 5—Property and Equipment, Net—Continued

General Property and Equipment as of September 30, 2012 (dollars in thousands)

Major Class Service Life (Years) Cost Accumulated Depreciation Net Book Value

Equipment 3 - 10 $ 2,586 $ (1,863) $ 723 

ADP software 2 9,446 (8,559) 887 

Total $ 12,032 $ (10,422) $ 1,610 

Depreciation Expense for the period ending September 30 (dollars in thousands)

Major Class 2013 2012

Equipment $ 202 $ (208)

ADP software 599 296

Total $ 801 $ 88

NOTE 6—Trust Service Award Liability

Individuals who successfully complete terms of service in AmeriCorps 

programs earn education awards, which can be used to make payments 

on qualified student loans or for educational expenses at qualified 

educational institutions. The awards, which are available to use for a 

period of up to seven years after the benefit has been earned, are paid 

from the National Service Trust. The National Service Trust also pays 

forbearance interest on qualified student loans during the period members 

perform community service, as well as awards under the Presidential 

Freedom Scholarship Program. The award liability components related to 

education awards and interest forbearance have been adjusted, based 

on historical experience, to reflect the fact that some eligible participants 

may not use these benefits. The Service Award was composed of the 

following as of September 30:
Financial Statements | PART II 55

The Corporation for National and Community Service

Service Award Liability as of September 30 (dollars in thousands)

2013 2012

Education awards $ 2,301,708 $ 2,109,437 

Interest forbearance 79,604 72,256 

President’s Freedom Scholarship Program 22,527 22,527

Total estimated service award liability 2,403,839 2,204,220

Less: cumulative awards paid 1,939,565 1,757,029 

Total $ 464,274 $ 447,191 

The net Service Award Liability as of September 30, 2013 increased 

by approximately $17.1 million from the net Service Award Liability as 

of September 30, 2012. This change was largely due to new member 

enrollments related to FEMA Corps and an increase in the number of 

members still serving during the year. Past CNCS appropriations made 

amounts from the National Service Trust available for $1,000 scholarships 

for high school students known as Presidential Freedom Scholarships. To 

fund each scholarship, a local community or corporate source matched 

the $500 portion of the scholarship provided by CNCS. The program was 

discontinued in fiscal 2007; however, because students have up to seven 

years to use the scholarship, some payments will continue to be made 

through FY 2014. As of October 1, 2009, the National Service Trust is also 

available to pay Summer of Service and Silver Scholar educational awards. 

However, the Silver Scholar program was not funded and no current 

liability was accrued for those educational awards. The Summer of Service 

program was only funded in FY 2010.

NOTE 7—Operating Leases

CNCS leases office space through the General Services Administration 

(GSA). GSA charges CNCS a Standard Level Users Charge that 

approximates commercial rental rates for similar properties. The NCCC 

also leases housing and other facilities for its campuses. Additionally, 

CNCS leases motor vehicles on an annual basis through GSA under an 

Interagency Fleet Management Service agreement for the NCCC. The 

leases are renewable with no purchase or escalation clause. The following 

schedule presents future minimum rental commitments under operating 

leases that have initial or remaining non-cancellable lease terms in 

excess of one year as of September 30.

Estimated Operating Lease Commitments as of September 30 (dollars in thousands)

2013 2012

Fiscal Facilities Facilities

Year Space Vehicles Other Total Space Vehicles Other Total

2013 $ - $ - $ - $ - $ 9,861 $ 766 $ 339 $ 10,966 

2014 10,059 953 354 11,366 9,846 788 294 10,928 

2015 10,115 873 303 11,291 10,151 819 279 11,249 

2016 10,401 874 287 11,562 10,465 851 272 11,588 

2017 10,696 733 287 11,716 10,790 884 272 11,946 

2018 11,000 750 287 12,037 - - - - 

Total $ 52,271 $ 4,183 $ 1,518 $ 57,972 $ 51,113 $ 4,108 $ 1,456 $ 56,677 
Financial Statements | PART II 56

The Corporation for National and Community Service

NOTE 8—Actuarial FECA Liability

CNCS’ actuarial liability for future workers’ compensation benefits 

under FECA was $9.7 and $9.8 million as of September 30, 2013 and 

2012, respectively. The amount includes the expected liability for death, 

disability, medical, and miscellaneous costs for approved compensation 

cases. As with all federal agencies CNCS’ FECA liability is determined 

by the Department of Labor. The actuarial liability is determined using 

a method that utilizes historical benefit payment patterns related to a 

specific incurred period to predict the ultimate payments related to that 

period. Consistent with past practice, these projected annual benefit 

payments have been discounted to present value using the Office of 

Management and Budget’s economic assumptions for ten-year Treasury 

notes and bonds.

NOTE 9—Net Positions

Net position consists of unexpended appropriations and cumulative 

results of operations. Component balances are separately maintained for 

the Gift Fund, Trust Fund and Appropriated Funds.

Net Position by Fund Balance Component as of September 30, 2013 (dollars in thousands)

Gift Fund Trust Fund Appropriated Funds Total

Unexpended appropriations $ - $ - $ 809,513 $ 809,513 

Cumulative results of operations 644 229,736 (7,416) 222,964 

Total Net Position $ 644 $ 229,736 $ 802,097 $1,032,477 

Net Position by Fund Balance Component as of September 30, 2012 (dollars in thousands)

Gift Funds Trust Funds Appropriated Funds Total

Unexpended appropriations $ 28 $ - $ 864,803 $ 864,831

Cumulative results of operations 633 196,576 (2,837) 194,372 

Total Net Position $ 661 $ 196,576 $ 861,966 $1,059,203 

CNCS is required to report information regarding its financial position 

according to three classes of net assets (net position): unrestricted, 

temporarily restricted and permanently restricted. CNCS has no 

permanently restricted assets. The following table presents CNCS’ 

unrestricted and temporarily restricted net assets.

Restrictions on Net Position as of September 30, 2013 (dollars in thousands)

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 802,097 $ - $ 802,097

Trust Funds - 229,736 229,736 

Gift Funds - 644 644

Total Net Position $ 802,097 $ 230,380 $ 1,032,477 
Financial Statements | PART II 57

The Corporation for National and Community Service

Restrictions on Net Position as of September 30, 2012 (dollars in thousands)

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 861,966 $ - $ 861,966 

Trust Funds - 196,576 196,576 

Gift Funds 28 633 661

Total Net Position $ 861,994 $ 197,209 $ 1,059,203 

NOTE 10—Appropriations Received by the National Service Trust

For fiscal year 2013, the National Service Trust received $200.719 million 

under the Continuing Appropriations Act, 2013 (Public Law 112-175). For 

fiscal year 2012, the National Service Trust received $207.561 million 

under the Consolidated Appropriations Act. 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 $22.8 million and $4.4 million to the Trust 

under this provision in fiscal year 2013 and 2012, respectively.

NOTE 11—Expenses

Using an appropriate cost accounting methodology, CNCS’ expenses have 

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

Costs for each sub-program are reported on separately:

AmeriCorps engages members in intense, impact-oriented service to 

address local community needs in areas of education, healthy futures, 

environmental stewardship, economic opportunity, disaster services, 

and assisting veterans and military families. AmeriCorps includes the 

State, National, Tribes, and Territories (State/National); National Civilian 

Community Corps (NCCC); and Volunteers In Service To America (VISTA) 

programs. The State/National sub-program includes grant expenses, as 

well as direct and allocated personnel and administrative costs including 

AmeriCorps recruitment and National Service Trust operations. The 

NCCC sub-program includes member stipend and benefits, and direct 

and allocated personnel and administrative costs including AmeriCorps 

recruitment and National Service Trust operations. The AmeriCorps VISTA 

sub- program includes grant expenses, member stipend and benefits, as 

well as direct and allocated personnel and administrative costs including 

AmeriCorps recruitment and National Service Trust operations.

Senior Corps programs provide opportunities for members 55 and older 

to address local community needs in the areas of education, assisting 

veterans and military families, disaster response, and healthy futures. 

Senior Corps includes the Foster Grandparent Program (FGP); Senior 

Companion Program (SCP); and the RSVP. The Senior Corps program 

includes grant expenses, as well as direct and allocated personnel and 

administrative costs for RSVP, FGP, and SCP. CNCS also has reimbursable 

agreements with several state agencies whereby CNCS awards and 

administers grants to a list of grantees selected and funded by the State 

(pass-through grants). The activity related to pass-through grants has 

been reclassified to be associated with the related Senior Corps program.

Learn and Serve America includes grant expenses, as well as direct and 

allocated personnel and administrative costs, for the Learn and Serve 

America Program, the President’s Student Service Challenge, and National 

Service Leader Schools. The Learn & Serve program is no longer funded; 

however, there was on-going activity through FY 2013 as the program 

winded down.

The National Service Award Expense component consists of CNCS’ 

estimated expense for education awards based on the increase in its 

service award liability during the year and interest forbearance costs on 

qualified student loans during the period members perform community 

service. No indirect costs have been allocated to the National Service 

Award expense component.

Innovation, Demonstration, & Assistance Activities (ID&A Activities) 

include grants to support and encourage new forms of service and 

volunteering. The most significant program is the Social Innovation Fund 

(SIF). The primary objective of the SIF is to improve the lives of people 

in low-income communities by mobilizing public and private sources to 

grow innovative nonprofit organizations that have evidence of compelling 

impact in the areas of economic opportunity, youth development, and 

healthy futures. No indirect costs have been allocated to the Innovation, 

Demonstration, & Assistance Activities component.

The Office of Inspector General (OIG) receives a separate appropriation. 

No indirect costs have been allocated to OIG.
Financial Statements | PART II 58

The Corporation for National and Community Service

NOTE 11—Expenses—Continued

Components of Grant Funds Expended for the Period Ended September 30 (dollars in thousands)

2013 2012 

Domestic Volunteer Service Act Programs $ 226,790 $ 227,317 

National and Community Service Act Programs 395,955 407,603 

Total Grant Funds Expended $ 622,745 $ 634,920 

Expenses by Major Responsibility Segment for the Period Ended September 30 (dollars in thousands)

2013 2012 

AmeriCorps

State and National $ 595,844 $ 609,046 

NCCC 48,216 45,394 

VISTA 134,151 138,035 

Subtotal $ 778,211 $ 792,475 

Senior Corps

RSVP 53,115 51,980

Foster Grandparent Program 119,391 119,206

Senior Companion Program $ 50,729 $ 51,129

Subtotal 223,235 222,315

Learn and Serve America 6,048 17,801

Innovation, Demonstration, Assistance Activities 47,355 34,748

Office of Inspector General (OIG) 3,392 5,241

Total Expenses $1,058,241 $ 1,072,580 
Financial Statements | PART II 59

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2013 (dollars in thousands)

AmeriCorps National Senior Service Corps

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 344,389 $ - $ 31,893 $ 45,576 $ 105,085 $ 44,236 $ 5,057 $ 46,509 $ - $ 622,745 

VISTA and NCCC stipends and benefits - 8,896 54,961 - - - - - - 63,857

Service award expense 171,188 8,484 19,896 - - - - - - 199,568

Total Grant and Related Expense 515,577 17,380 106,750 45,576 105,085 44,236 5,057 46,509 - 886,170

Administrative Expense

Federal employee salaries and benefits 40,355 4,752 7,226 3,286 7,735 3,280 490 - 2,429 69,553 

Travel and transportation 2,449 5,107 1,559 261 603 261 30 - 72 10,342 

Rent, communications, and utilities 5,563 3,922 884 450 1,060 449 67 - 12 12,407 

Program analysis and evaluation 1,720 63 308 139 328 139 24 - - 2,721 

Printing and reproduction 126 84 23 22 23 15 1 - - 294 

Other services and expenses 29,032 14,703 17,194 3,300 4,365 2,268 363 846 866 72,937 

Supplies and materials 444 2,194 117 34 81 34 9 - 13 2,926 

Depreciation, amortization, and loss on 520 10 81 42 100 42 6 - - 801 

disposition of assets 

Bad debt 58 1 9 5 11 5 1 - - 90 

Total Administrative Expense 80,267 30,836 27,401 7,539 14,306 6,493 991 846 3,392 172,071 

Total Expenses by Type $ $595,844 $48,216 $134,151 $53,115 $119,391 $50,729 $6,048 $47,355 $3,392 $1,058,241 
Financial Statements | PART II 60

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Financial Statements | PART II 61

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2012 (dollars in thousands)

AmeriCorps National Senior Service Corps

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total

Grant and Related Expense

Grant funds expended $ 358,112 $ - $ 29,387 $ 46,345 $ 106,159 $ 45,426 $ 15,583 $ 33,908 $ - $ 634,920

VISTA and NCCC stipends and benefits - 9,571 60,951 - - - - - - 70,522

Service award expense 182,786 8,609 27,028 - - - - - - 218,423

Total Grant and Related Expense 540,898 18,180 117,366 46,345 106,159 45,426 15,583 33,908 - 923,865

Administrative Expense

Federal employee salaries and benefits 34,919 9,504 7,885 2,497 5,861 2,485 1,251 - 3,429 67,831

Travel and transportation 1,144 3,217 1,606 386 865 380 37 - 98 7,733

Rent, communications, and utilities 4,439 5,247 835 322 756 320 105 - 98 12,122

Program analysis and evaluation 1,876 137 395 161 379 161 101 - - 3,210

Printing and reproduction 68 40 12 36 16 11 2 - 2 187

Other services and expenses 25,116 7,460 9,840 2,186 5,060 2,299 706 840 1,574 55,081

Supplies and materials 212 1,603 39 17 39 17 6 - 40 1,973

Depreciation, amortization, and loss on 322 5 49 26 61 26 9 - - 498

disposition of assets 

Bad debt 52 1 8 4 10 4 1 - - 80

Total Administrative Expense 68,148 27,214 20,669 5,635 13,047 5,703 2,218 840 5,241 148,715

Total Expenses by Type $ 609,046 $ 45,394 $ 138,035 $ 51,980 $ 119,206 $ 51,129 $ 17,801 $ 34,748 $ 5,241 $ 1,072,580
Financial Statements | PART II 62

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Financial Statements | PART II 63

The Corporation for National and Community Service

NOTE 12—National Service Award Expense

Members serving in approved national service positions are eligible 

to earn a service award to pay for qualified education expenses. 

The National Service Trust also pays interest forbearance costs 

on qualified student loans during the period members perform 

community service.

CNCS estimates the expense for national service awards based on 

the increase in its cumulative service award liability during the year 

(see Note 6). The total service award liability as of September 30, 

2013 and 2012, respectively, has been adjusted to reflect the fact 

that earned awards are not always used.

National Service Award Expense for the Period Ended September 30 (dollars in thousands)

2013 2012

Estimated education awards $ 190,594 $ 208,758 

Estimated interest forbearance 8,974 9,665 

National Service Award Expense $ 199,568 $ 218,423 

NOTE 13—Change in Unexpended Appropriations, Net 

Unexpended Appropriations, Net as of September 30 (dollars in thousands)

2013 2012

Unexpended Appropriations, Beginning Balance $ 864,831 $ 876,088 

Increases:

Appropriations Received 1,048,884 1,050,870 

Decreases:

Appropriated Capital Used (808,085) (824,684)

Appropriations Transferred to Trust Fund (net of rescissions) (200,719) (207,561)

Program Funds Transferred to Trust (22,849) (4,355)

Rescissions and Cancellations (72,549) (25,527)

Total Decreases (1,104,202) (1,062,127)

Change in Unexpended Appropriations (55,318) (11,257) 

 

Unexpended Appropriations, Ending Balance $ 809,513 $ 864,831
Financial Statements | PART II 64

The Corporation for National and Community Service

NOTE 14—Contingencies

CNCS is a party to various routine administrative proceedings, legal 

actions, and claims brought by or against it, including threatened 

or pending litigation involving labor relations claims, some of which 

may ultimately result in settlements or decisions against CNCS. In 

the opinion of CNCS’ management and legal counsel, there are no 

proceedings, actions, or claims outstanding or threatened that would 

materially impact the financial statements of CNCS.

Certain legal matters to which CNCS is a party may be administered 

and, in some instances, litigated and paid by other federal agencies. 

Generally, amounts paid in excess of $2.5 thousand for Federal Tort 

Claims Act settlements or awards pertaining to these litigations are 

funded from the Treasury Judgment Fund (TJF). Although the ultimate 

disposition of any potential TJF proceedings cannot be determined, 

management does not expect that any liability or expense that might 

ensue would be material to CNCS’ financial statements.

NOTE 15—Subsequent Events

CNCS has evaluated subsequent events through December 16, 2013, 

which is the date these financial statements were available to be 

issued. As a consequence of its evaluation, CNCS has determined 

that no subsequent events need to be recognized or disclosed.

NOTE 16—Undelivered Orders at Fiscal Year-End

CNCS’ undelivered orders at September 30, 2013 and 2012 were 

$868,598 and $895,614 thousand, respectively.

NOTE 17—Apportionment Categories of Incurred Obligations

An apportionment is a distribution by OMB of amounts available for 

obligation. OMB apportions Corporation funds on both a quarterly and 

annual basis. Obligations incurred during FY 2013 and 2012 were:

Consolidated Obligations Incurred through September 30 (dollars in thousands)

Fiscal Year Direct Reimbursable Total

 

2013 $ 1,226,901 $ 53,039 $ 1,279,940

2012 $ 1,255,712 $ 19,949 $ 1,275,661
Independent Auditor’s Report | PART III 65

The Corporation for National and Community Service

Section III:

Independent 

Auditor’s Report
Independent Auditor’s Report | PART III 66

The Corporation for National and Community Service

AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2013 FINANCIAL STATEMENTS 

OIG REPORT 14-01 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on December 16, 2013. 

Under the laws and regulations governing audit follow up, the Corporation is to 

make final management decisions on the report’s findings and 

recommendations no later than June 16, 2014, and complete its corrective 

actions by December 16, 2014. Consequently, the reported findings do not 

necessarily represent the final resolution of the issues presented.

Office of Inspector General 

Corporation for National and

Community Service 
Independent Auditor’s Report | PART III 67

The Corporation for National and Community Service

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 

December 16, 2013 

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 2013 Financial Statements, OIG Report 14-01 

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, 2013 and 2012, and for the years then 

ended. The contract required that the audit be performed in accordance with the Government 

Auditing Standards. 

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; 

 No material weaknesses in the Corporation’s internal control over financial reporting; and 

 No instances of noncompliance with applicable provisions of laws, regulations, contracts, 

and grant agreements. 

Kearney is responsible for the attached independent auditor’s reports, dated December 16, 

2013, and the conclusions expressed therein. The Office of Inspector General does not express 

an opinion on the Corporation’s financial statements, or Kearney’s conclusions about the 

Corporation’s internal control over financial reporting or compliance with applicable provisions of 

laws, regulations, contracts, and grant agreements. 

Attachment

cc: Asim Mishra, Chief of Staff 

Kim Mansaray, Acting Chief Operating Officer

David Rebich, Chief Financial Officer 

Philip Clark, Chief Information Officer 

 Rocco Gaudio, Deputy CFO for Grants and Field Financial Management Center 

 Douglas Hilton, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C.
Independent Auditor’s Report | PART III 68

The Corporation for National and Community Service

1

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Financial Statements

We have audited the accompanying consolidated financial statements of the Corporation for 

National and Community Service (the Corporation), which comprise the consolidated statements 

of financial position as of September 30, 2013 and 2012, the related consolidated statements of 

operations and changes in net position, the consolidated statements of cash flows, and the 

combined statements of budgetary resources (SBR) (hereinafter referred to as the “financial 

statements”) for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with accounting principles generally accepted in the United States of America. This 

includes the design, implementation, and maintenance of internal control relevant to the 

preparation and fair presentation of financial statements that are free from material misstatement, 

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the financial 

statements in order to design audit procedures that are appropriate in the circumstances, but not 

for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness 

of accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements.
Independent Auditor’s Report | PART III 69

The Corporation for National and Community Service

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the Corporation as of September 30, 2013 and 2012, and its net cost of 

operations, changes in net position, cash flows, and budgetary resources for the years then ended,

in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matters

A 2004 Executive Order, entitled “National and Community Service Programs” (E.O. 13331), 

requires a statement of assurance in the Corporation’s Management Representation Letter by the 

Chief Executive Officer and Chief Financial Officer that its financial statements, including the 

SBR, are accurate and reliable. The Corporation has interpreted this requirement to include 

presenting the SBR as a principal financial statement. The Corporation’s SBR is prepared in 

accordance with accounting principles generally accepted in the United States of America. 

As discussed in Note 1 to the financial statements, the Corporation reclassified certain amounts 

in the prior year’s combined SBR to conform to the current year’s presentation. These 

reclassifications had no effect on the previously reported Statements of Budgetary Resources

balances. 

Our opinion is not modified with respect to these matters.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that 

Management’s Discussion and Analysis (hereinafter referred to as the “required supplementary 

information”) be presented to supplement the financial statements. This information, although 

not a part of the financial statements, is required by the OMB and the Federal Accounting 

Standards Advisory Board, who consider it to be an essential part of financial reporting for 

placing the financial statements in an appropriate operational, economic, and/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. These 

procedures included inquiries of management about the methods used in 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. We do not express an 

opinion or provide any assurance on the information because the limited procedures do not 

provide us with sufficient evidence to express an opinion or provide any assurance.
Independent Auditor’s Report | PART III 70

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3

Other Information

Our audits were conducted for the purpose of forming an opinion on the financial statements 

taken as a whole. The information contained in the Donations and Contributions, National 

Service Trust Fund (Trust) Status Report – September 2013, and Improper Payments sections of 

the fiscal year 2013 Agency Financial Report is presented for purposes of additional analysis and 

is not a required part of the financial statements. Except as described below, such information 

has not been subjected to the auditing procedures applied in the audits of the financial 

statements, and accordingly, we do not express an opinion or provide any assurance on it. 

Certain information from the Trust Status Report – September 2013 statements of financial 

position, related statements of operations and changes in net position, statements of cash flows 

and combined statements of budgetary resources (hereinafter referred to as the “Trust financial 

statements”), as of September 30, 2013, 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 

December 16, 2013.

Independent Auditor’s Report on Internal Control over Financial Reporting and 

Compliance with Applicable Provisions of Laws, Regulations, Contracts, and Grant 

Agreements

In accordance with Government Auditing Standards and OMB Bulletin No. 14-02, we have also 

issued a report, dated December 16, 2013, on our consideration of the Corporation’s internal 

control over financial reporting and our tests of the Corporation’s compliance with certain 

provisions of laws, regulations, contracts, and grant agreements; and other matters for the year 

ended September 30, 2013. The purpose of that report is to describe the scope of our testing of 

internal control over financial reporting and compliance and the results of that testing, and not to 

provide an opinion on internal control over financial reporting, or on compliance and other 

matters. This report is an integral part of an audit performed in accordance with Government 

Auditing Standards and OMB Bulletin No. 14-02, and in considering the Corporation’s internal 

control over financial reporting and compliance.

Alexandria, Virginia

December 16, 2013
Independent Auditor’s Report | PART III 71

The Corporation for National and Community Service

1

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER 

FINANCIAL REPORTING AND COMPLIANCE WITH APPLICABLE PROVISIONS 

OF LAWS, REGULATIONS, CONTRACTS, AND GRANT AGREEMENTS

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

We have audited the accompanying consolidated financial statements of the Corporation for 

National and Community Service (the Corporation), which comprise the consolidated statement 

of financial position as of September 30, 2013, the related consolidated statement of operations 

and changes in net position, the consolidated statement of cash flows, and the combined 

statement of budgetary resources (hereinafter referred to as the “financial statements”) for the 

year then ended, and the related notes to the financial statements, and have issued our report

thereon, dated December 16, 2013. We conducted our audit in accordance with auditing 

standards generally accepted in the United States of America; standards applicable to financial 

audits contained in Government Auditing Standards, issued by the Comptroller General of the 

United States; and Office of Management and Budget (OMB) Bulletin No. 14-02, Audit 

Requirements for Federal Financial Statements.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the

Corporation’s internal control over financial reporting (internal control) as a basis for designing

audit procedures that are appropriate in the circumstances for the purpose of expressing our 

opinion on the financial statements, but not for the purpose of expressing an opinion on the 

effectiveness of the Corporation’s internal control. Accordingly, we do not express an opinion 

on the effectiveness of the Corporation’s internal control. We limited our internal control testing 

to those controls necessary to achieve the objectives described in OMB Bulletin No. 14-02. We 

did not test all internal controls relevant to operating objectives, as broadly defined by the 

Federal Managers’ Financial Integrity Act of 1982 (FMFIA), such as those controls relevant to 

ensuring efficient operations.

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent, or detect and correct, misstatements on a timely basis. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented,

or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or 

combination of deficiencies, in internal control that is less severe than a material weakness, yet 

important enough to merit attention by those charged with governance. 

Our consideration of internal control was for the limited purpose described in the preceding 

paragraphs and was not designed to identify all deficiencies in internal control that might be 
Independent Auditor’s Report | PART III 72

The Corporation for National and Community Service

2

material weaknesses or significant deficiencies. 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 noted certain additional matters involving internal control over financial reporting that we

will report to the Corporation’s management in a separate letter.

Compliance with Applicable Provisions of Laws, Regulations, Contracts, and Grant 

Agreements

As part of obtaining reasonable assurance about whether the Corporation’s financial statements 

are free from material misstatement, we tested its compliance with certain provisions of laws, 

regulations, contracts, and grant agreements, noncompliance with which could have a direct and 

material effect on the determination of financial statement amounts, and certain provisions of 

other laws and regulations specified in OMB Bulletin No. 14-02. We limited our tests of

compliance to these provisions and did not test compliance with all laws, regulations, contracts, 

and grant agreements applicable to the Corporation. However, providing an opinion on 

compliance with these provisions was not an objective of our audit, and 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 or OMB 

Bulletin No. 14-02.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and 

compliance and the results of that testing, and not to provide an opinion on the effectiveness of 

the Corporation’s internal control or on compliance. This report is an integral part of an audit 

performed in accordance with Government Auditing Standards and OMB Bulletin No. 14-02 in 

considering the Corporation’s internal control and compliance. Accordingly, this report is not 

suitable for any other purpose.

Alexandria, Virginia 

December 16, 2013
Independent Auditor’s Report | PART III 73

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3

Status of Prior Year Findings

In the Report on Internal Control included in the Independent Auditor’s Report on the 

Corporation’s 2012 and 2011 Financial Statements, we noted a deficiency in internal control 

over financial reporting. Table 1 below summarizes the condition, as reported by us in the prior 

fiscal year (FY), and the status of that condition based on our evaluation of this finding in the 

current FY.

Table 1: Prior Year Significant Internal Control Deficiencies 

Control Deficiency FY 2012 Status FY 2013 Status

Grant Accrual Estimate Material Weakness Closed
AUDIT OF THE 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE’S 

FISCAL YEAR 2013

NATIONAL SERVICE TRUST FUND 

FINANCIAL STATEMENTS 

OIG REPORT 14-02 

Prepared by: 

Kearney & Company, P.C. 

1701 Duke Street, Suite 500 

Alexandria, Virginia 22314 

This report was issued to Corporation management on December 16, 2013. 

Office of Inspector General 

Corporation for National and

Community Service 
Independent Auditor’s Report | PART III 75

The Corporation for National and Community Service

1201 New York Avenue, NW  Suite 830  Washington, DC 20525 

202-606-9390  Hotline: 800-452-8210  www.cncsoig.gov 

December 16, 2013 

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 2013 National Service Trust Fund Financial Statements, 

OIG Report 14-02 

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, 2013 and 2012, and for the years then ended. The contract required that the audit be 

performed in accordance with the Government Auditing Standards.

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.

Kearney is responsible for the attached independent auditor’s report, dated December 16, 2013, 

and the conclusions expressed therein. The Office of Inspector General does not express an 

opinion on the Trust financial statements. 

Attachment

cc: Asim Mishra, Chief of Staff 

Kim Mansaray, Acting Chief Operating Officer 

David Rebich, Chief Financial Officer 

Philip Clark, Chief Information Officer 

 Rocco Gaudio, Deputy CFO for Grants and Field Financial Management Center 

 Douglas Hilton, Director, Office of Accountability and Oversight 

David Zavada, Engagement Partner, Kearney & Company, P.C. 
Independent Auditor’s Report | PART III 76

The Corporation for National and Community Service

1

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

INDEPENDENT AUDITOR’S REPORT

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

Report on the Trust Financial Statements

We have audited the accompanying financial statements of the Corporation for National and 

Community Service (the Corporation) National Service Trust Fund (Trust), which comprise the 

statements of financial position as of September 30, 2013 and 2012, the related statements of 

operations and changes in net position, the statements of cash flows, and the combined 

statements of budgetary resources (SBR) (hereinafter referred to as the “Trust financial 

statements”) for the years then ended, and the related notes to the Trust financial statements.

Management’s Responsibility for the Trust Financial Statements

Management is responsible for the preparation and fair presentation of the Trust financial 

statements in accordance with accounting principles generally accepted in the United States of 

America. This includes the design, implementation, and maintenance of internal control relevant 

to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Trust financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United 

States of America; standards applicable to financial audits contained in Government Auditing 

Standards, issued by the Comptroller General of the United States; and Office of Management 

and Budget (OMB) Bulletin No. 14-02, Audit Requirements for Federal Financial Statements.

Those standards require that we plan and perform the audit to obtain reasonable assurance about 

whether the Trust financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the Trust financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the Trust financial 

statements, whether due to fraud or error. In making those risk assessments, the auditor 

considers internal control relevant to the entity’s preparation and fair presentation of the Trust 

financial statements in order to design audit procedures that are appropriate in the circumstances, 

but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal 

control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting 

estimates made by management, as well as evaluating the overall presentation of the Trust 

financial statements.
Independent Auditor’s Report | PART III 77

The Corporation for National and Community Service

2

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion.

Opinion

In our opinion, the Trust financial statements referred to above present fairly, in all material 

respects, the financial position of the Trust as of September 30, 2013 and 2012, and its net cost 

of operations, changes in net position, cash flows, and budgetary resources for the years then 

ended, in accordance with accounting principles generally accepted in the United States of 

America.

Emphasis of Matters

As discussed in Note 1 to the Trust financial statements, the Corporation changed its basis of 

accounting from a regulatory basis, as prescribed by the National and Community Service Act of 

1990 (NCSA) (Public Law 101-610), as amended, to accounting principles generally accepted in 

the United States of America. In accordance with this change, the Corporation presented a 

Statement of Cash Flows and SBR, and the related note disclosures for the periods ending 

September 30, 2013 and 2012. The addition of these financial statements had no effect on the 

previously reported schedule of Trust obligations and Trust budgetary resources, which have 

been moved to the National Service Trust Fund Status Report – September 2013, Other 

Information section of the fiscal year 2013 Agency Financial Report in conformity with the 

requirements of generally accepted accounting principles.

A 2004 Executive Order, entitled “National and Community Service Programs” (E.O. 13331), 

requires a statement of assurance in the Corporation’s Management Representation Letter by the 

Chief Executive Officer and Chief Financial Officer that its financial statements, including the 

SBR, are accurate and reliable. The Corporation has interpreted this requirement to include 

presenting the SBR as a principal financial statement. The Corporation’s SBR is prepared in 

accordance with accounting principles generally accepted in the United States of America. 

Our opinion is not modified with respect to these matters.

Other Matters

Other Information

Our audits were conducted for the purpose of forming an opinion on the Trust financial 

statements taken as a whole. The information contained in the National Service Trust Fund 

Status Report – September 2013, Other Information, section of the fiscal year 2013 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 
Independent Auditor’s Report | PART III 78

The Corporation for National and Community Service

3

applied in the audits of the Trust financial statements, and accordingly, we do not express an 

opinion or provide any assurance on it. 

Alexandria, Virginia

December 16, 2013
Independent Auditor’s Report | PART III 79

The Corporation for National and Community Service

Memorandium

DATE: December 16, 2013

TO: Deborah Jeffrey, Inspector General

FROM: David Rebich, Chief Financial Officer

SUBJECT: Draft Report on the Corporation for National and Community Service’s (CNCS) FY 2013 Financial Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of the Corporation for National and Community Service’s FY 

2013 financial statements. I am pleased that we can report CNCS maintained its record of strong fiscal stewardship for the American people in FY 

2013. CNCS received an unmodified opinion on its consolidated financial statements for the 14th consecutive year. The audit also found no instance of 

noncompliance with laws and regulations.

I am also pleased that the material weakness in financial reporting related to the estimated grant accruals and three management letter findings 

associated with financial reporting contained in the FY 2012 report was corrected. In addition, the audit results for six other management letter findings 

indicate that progress was made during FY 2013. Overall, the results reflect CNCS’ commitment to sound financial management and the hard work to 

continuously improve financial operations.

1201 New York Avenue, NW • Washington, DC 20525

202-606-5000 • www.nationalservice.org 

Senior Corps • AmeriCorps • Learn and Serve America
Independent Auditor’s Report | PART III 80

The Corporation for National and Community Service

Memorandium

DATE: December 16, 2013

TO: Deborah Jeffrey, Inspector General

FROM: David Rebich, Chief Financial Officer

SUBJECT: Draft Report on the FY 2013 National Service Trust Fund Financial Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of the FY 2013 National Service Trust Fund financial statements. 

I am pleased that we can report Corporation for National and Community Service (CNCS) maintained its unmodified opinion on the National Service Trust 

Fund financial statements. 

CNCS revised the National Service Trust Fund reporting framework during FY 2013 principle financial statements and accompanying note disclosures to 

conform with generally accepted accounting principles as required by the Government Corporation Control Act (Act) and Executive Order 13331, National 

and Community Service Programs. 

1201 New York Avenue, NW • Washington, DC 20525

202-606-5000 • www.nationalservice.org 

Senior Corps • AmeriCorps • Learn and Serve America
Other Information | PART IV 81

The Corporation for National and Community Service

Section IV:

Other Information

Donations and 

Contributions

Under CNCS’ authorizing legislation, donated funds may be accepted and 

used in furtherance of the purposes of the national service laws (42 USC 

12651g(a)(2)(A)). The law allows CNCS to “solicit, accept, hold, administer, 

use, and dispose of, in furtherance of the purpose of the national service 

laws, donations of any money or property, real, personal, or mixed, 

tangible or intangible, received by gift, devise, bequest or otherwise.” The 

legislation also requires that CNCS report to the Congress on the nature 

and the amount of donations, as well as on how they were used and 

disposed of (in the case of donated property) in support of its programs 

and activities. This report fulfills these requirements for FY 2013.

CNCS also utilizes Pay.gov, a Treasury program that allows federal 

agencies to conduct transactions online. Under the Pay.gov program, 

CNCS collects donations by credit card or direct debit from donors. 

Pay.gov facilitates the process of collecting gift funds from donors online 

through a secure website with real-time identification verification and 

provides the reporting necessary for processing transactions. The following 

schedules show the Gift Fund balances available as of September 30, 2013, 

to fund authorized activities as well as the receipts and expenses paid 

from the Gift Fund in FY 2013 and FY 2012, respectively.
Other Information | PART IV 82

The Corporation for National and Community Service

Status of Gift Fund Balance at September 30, 2013

Fund Balance With Treasury Obligation & Commitments Funds Available

Best Buy $ 40,513 $ (4,600) $ 35,913

Bradley Foundation 2,030 - 2,030

CVS 7,500 - 7,500

Home Depot 135,262 (7,937) 127,325

Land O’Lakes 70,791 (3,240) 67,551

Ralph Lauren Polo Foundation 54,834 - 54,834

State Farm Insurance Co. 111 (111) -

UPS Foundation 2,026 - 2,026

Walt Disney Company 45,903 (22,696) 23,207

Kellogg Foundation 55,572 (26,415) 29,157

Disaster Relief Fund 16,623 (350) 16,273

Motorola Foundation 970 - 970

Shell Oil Co. 3,365 - 3,365

Microsoft 6,315 - 6,315

American Express 25,000 (13,845) 11,155

IBEW Union 532 (532) -

White House Council 108,007 - 108,007

Miscellaneous Donations 76,079 (52,301) 23,778

Total $ 651,433 $ (132,027) $ 519,406
Other Information | PART IV 83

The Corporation for National and Community Service

Supplemental Information on the Source and Use Of Donationsi

2013 2012

Donor Use of Funds Received Used Received Used

Best Buy Grants for the Martin Luther King $ - $ 54,913 $ 100,525 $ 8,446

Day of Service

Home Depot - 32,971

Land O’Lakes 150,775 41,842

Ralph Lauren Polo Support for NCCC program activities - 660 - -

Foundation

State Farm Insurance Co. Learn & Serve America 15th - - - -

Walt Disney Company Corporation Projects in support of USA Freedom Corp - 12,656

Shell Oil Co. Support for the Martin Luther King Day of Service - - - -

Kellogg Foundation AmeriCorps volunteer mobilization - - 2,000 1,500

IBEW Union CNCS Board of Directors Support - 517 - -

Motorola Foundation National Conference 475 - 395 1,962

Microsoft Student Driven Virtual Help Desk - - - -

American Express United We Serve 50,000 42,882 - 1,132

Rockefeller Foundation White House Council on Community Solutions - - 100,000 89,237

 

Small Individual Donations Restricted to

Disaster Relief - - - -

Senior Corps - - - -

AmeriCorps (Miscellaneous) 60 - 850 -

AmeriCorps NCCC - - 200 335

Learn & Serve America - - - -

AmeriCorps Vista - 3,309 - -

Service Learning Toolkit Promotion - - - -

General/Miscellaneous Support 719 684 1,457 643

Total $ 202,029 $ 190,434 $ 205,427 $ 103,255

i Funds reported as used during the fiscal year in the schedule may be from amounts donated in a previous year(s). In addition, the expenses above only include the amount accrued during the fiscal 

year and do not reflect amounts that have been obligated but not yet expensed.
Other Information | PART IV 84

The Corporation for National and Community Service

National Service Trust 

Fund Status Report—

September 2013

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. Funding for 

the Trust comes from appropriations, interest earned, funds transferred 

from subtitle C pursuant to 42 USC 1260, and proceeds from the sale or 

redemption of Trust investments. The Trust is also authorized to accept 

gifts or bequests; however, to date, no donations have been received by 

the Trust. Under the Act, funds are available to repay qualified student 

loans, pay educational expenses at qualified educational institutions, and 

repay eligible interest expense on student loans.

The value of an education award depends on the term of service 

performed by an AmeriCorps member. For Program Year 2013, completion 

of a full-time term of service, requiring a minimum of 1,700 hours of 

service, entitles an AmeriCorps member to an education award of $5,550. 

Completion of a part-time term, requiring a minimum of 900 hours of 

service, entitles an AmeriCorps member to an education award of $2,775. 

Reduced part-time terms, which provide awards of $500 to $2,114, are 

also offered. The education award is indexed to 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. Payments 

are made directly to the educational institutions and the loan holders as 

directed by the members and by the institutions. Trust funds are not used 

to pay member stipends or other grant costs. Beginning in Program Year 

2010, AmeriCorps State and National and Silver Service members who 

are age 55 or older when they begin service may transfer their education 

award to a qualified child, grandchild, or foster child. Education awards 

earned by AmeriCorps members are generally available to be used for 

seven years from the completion of the service. Payments are made 

directly to the educational institutions and the loan holders as directed 

by the members and by the institutions. Trust funds are not used to pay 

member stipends or other grant costs. Beginning in Program Year 2010, 

AmeriCorps State and National and Silver Service members who are age 

55 or older when they begin service may transfer their education award to 

a qualified child, grandchild, or foster child.

Table 1 shows the planned activity for the current Program Year and 

actual enrollments to date against the plan. The table also includes 

similar data on the prior Program Year for comparative purposes. Member 

positions (slots) classified as “Certified Not Awarded” have been approved 

by CNCS’ Chief Executive Officer for award to grantees for which the 

final grant award has not been executed. For budgetary purposes these 

positions are considered commitments in the Trust Fund.

Table 1. Member Position Award Activity 

Program Year 2013 Program Year 2012

Awarded Awarded

 Certified Planned Certified Planned

Not Not Not Not Not Not

AmeriCorps Program Enrolled Enrolled Awarded Certified Total Enrolled Enrolled Awarded Certified Total

State and National 22,825 39,330 10,168 2,697 75,020 66,212 1,148 6,660 1,000 75,020

VISTA 6,053 – 453 – 6,506 6,756 – 424 – 7,180

NCCC 1,173 – 27 – 1,200 1,208 – – – 1,208

Total 30,051 39,330 10,648 2,697 82,726 74,176 1,148 7,084 1,000 83,408
Other Information | PART IV 85

The Corporation for National and Community Service

The 81,820 Trust positions planned for Program Year 2013 do not include 

an estimated 1,020 AmeriCorps VISTA members (870 full time and 150 

Summer Associates) electing an end-of-service stipend instead of an 

education award. Total estimated member positions for Program Year 

2013, including AmeriCorps VISTA members electing a stipend, is 82,840. 

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 83,408 Trust positions for Program Year 2012 do not include an 

estimated 1,650 AmeriCorps VISTA members (1,329 full time and 321 

Summer Associates) electing an end-of-service stipend instead of an 

education award. Total estimated member positions for Program Year 

2012, including AmeriCorps VISTA members electing a stipend, is 85,058. 

Of the 6,756 AmeriCorps VISTA member positions in the Trust for 2012, 

1,835 positions are for Summer Associates who receive a Trust award 

of $1,175. Member enrollment and slot data are periodically adjusted to 

reflect corrections and slot reconfigurations by grantees; therefore they 

may change slightly from month to month. 

Trust Awards

Since CNCS’ inception in 1993, AmeriCorps members have earned over 

$2.7 billion in Segal AmeriCorps Education Awards and used over $1.9 

billion to fund their education and repay student loans. In addition, CNCS 

has made $70.3 million in interest forbearance payments. Approximately 

$271.1 million in education awards earned have expired without being 

used. The Trust obligation formula has been adjusted to reflect these 

expired awards. 

Chart 1. Segal AmeriCorps Education Awards Earned and Used by Program Year

$0

$20,000,000

$40,000,000

$60,000,000

$80,000,000

$100,000,000

$120,000,000

$140,000,000

$160,000,000

$180,000,000

$200,000,000

$250,000,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Recovery Act 2010 2011 2012 

Awards Earned to Date

Awards Used to Date

Program Year

2013

Not reflected in the Segal AmeriCorps Education Award balances are 

payments for President’s Freedom Scholarships to high school students. 

CNCS no longer awards these $500 scholarships from the National 

Service Trust earned by high school students. Under this program, a 

Trust scholarship was matched with $500 from a local sponsor for a 

total of $1,000 to help the student fund a college education. Although 

the program was discontinued in fiscal 2006, students have up to seven 

years to use their scholarship; therefore some payments will continue to 

be made over the next fourteen months. President’s Freedom Scholarships 

payments to date have totaled $21.6 million. 
Other Information | PART IV 86

The Corporation for National and Community Service

Refilled Positions

CNCS policy allows grantees limited flexibility to refill positions vacated by 

a member who has served less than 30 percent of his or her service term, 

provided that the departing member had not earned a pro-rated education 

award. To prevent over-enrollment, the policy includes “fail safe” triggers 

that restrict the overall number of refills to no more than 5 percent of 

awarded positions and suspends refilling altogether if total AmeriCorps 

enrollment reaches 97 percent of awarded positions. Table 2 provides 

information on the number of positions refilled. Recovery Act positions and 

positions in Program Years 2010 and earlier can no longer be refilled. 

Table 2. Number of Refilled Positions

Results to Date

Program Program Program Program Program

Year Recovery Year Year Year Year Fail-safe

2009 Act 2010 2011 2012 2013 Trigger

Number of Refilled Positions 1,385 328 1,604 1,516 1,361 62 N/A

Refills as a Percent of Awarded State and

National Positions 2.1% 3.1% 2.0% 2.1% 2.0% 0.1% 5%

State and National Enrollment as a Percentage

of Awarded State and National Positions 97.3% 98.6% 99.5% 97.7% 98.3% 36.7% 97%
Other Information | PART IV 87

The Corporation for National and Community Service

National Service Trust Fund Accounting

The Statements of Financial Position; Operations and Changes in Net 

Position; Cash Flows, and Budgetary Resources and accompanying notes 

have been prepared from the books and records of the Corporation in 

accordance with generally accepted accounting principles as required by 

the Government Corporation Control Act (Act) and Executive Order 13331, 

National and Community Service Programs.

As specified in the Act, principal financial statements are the:

• Statement of Financial Position which reports the status of assets, 

liabilities, and net position of the Trust;

• Statement of Operations and Changes in Net Position which reports 

revenues and expenses for the year and the changes in net position 

that occurred during the year.

• Statement of Cash Flows which show how changes in the 

financial position affect cash according to operating, investing, 

and financing activity.

• Statement of Budgetary Resources which reports status of 

budgetary resources. 

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.

Under Executive Order 13331, National and Community Service Programs, 

CNCS must prepare a Combined Statement of Budgetary Resources 

as a principal statement. The accompanying Statements of Budgetary 

Resources have been prepared in accordance with GAAP, as prescribed 

by FASAB. 
Other Information | PART IV 88

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Financial Position as of September 30 

(dollars in thousands)

2013 2012

Assets

Fund Balance with Treasury (Note 2) $ 611 $ 4,951

Investments, Net (Note 3) 692,243 637,507

Interest Receivable 922 1,058

Accounts Receivable, Net (Note 4) 234 251

Total Assets $ 694,010 $ 643,767

Liabilities 

Service Award Liability (Note 5) 464,274 447,191

Net Position

Cumulative Results of Operations (Note 6) 229,736 196,576

Total Liabilities and Net Position $ 694,010 $ 643,767

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 89

The Corporation for National and Community Service

Corporation for National and Community Service

National Service Trust Statements of Operations and Changes in Net Position 

for the Periods Ended September 30 (dollars in thousands)

2013 2012

Revenues

Appropriations (Note 7) $ 200,719 $ 207,561

Transfer in of Program Funds 22,849 4,355

Interest 3,133 4,434

Other Revenue 6,054 2,686

Total Revenues $ 232,755 $ 219,036

Expenses 

Service Award Expense 199,568 218,423

Write off/Recovery of Receivables 27 441

Total Expenses (Note 8) $ 199,595 $ 218,864

Excess of Revenues Over Expenses $ 33,160 $ 172

Net Position

Excess of Revenues Over Expenses 33,160 172

Net Position, Beginning of Year 196,576 196,404

Net Position, End of Year $ 229,736 $ 196,576

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 90

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Cash Flows 

for the Periods Ended September 30 (dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES 2013 2012

Net of Revenue over Expenses $ 33,160 $ 172

Adjustments Affecting Cash Flow:

Amortization of Premium/Discount on Investments 1,795 (2,811) 

Appropriations Received in Trust (223,568) (211,916)

Decrease/(Increase) in Accounts Receivable 18 393

Decrease/(Increase) in Interest Receivable 136 385

Increase/(Decrease) in Trust Liability 17,083 36,930

Total Adjustments (204,536) (177,019)

Net Cash Provided/(Used) by Operating Activities (171,376) (176,847)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Assets 729,799 831,264 

Purchase of Securities (786,331) (861,743)

Net Cash Provided/(Used) in Investing Activities (56,532) (30,479)

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received in Trust 223,568 211,916

Net Cash Provided by Financing Activities 223,568 211,916

Net Increase/(Decrease) in Fund Balance with Treasury (4,340) 4,590

Fund Balance with Treasury, Beginning 4,951 361

Fund Balance with Treasury, Ending $ 611 $ 4,951

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 91

The Corporation for National and Community Service

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources 

for the Periods Ended September 30 (dollars in thousands)

BUDGETARY RESOURCES 2013 2012

Unobligated balance, brought forward, October 1 $ 76,053 $ 61,024 

Budget authority: 

Appropriations (discretionary and mandatory) 224,863 215,772 

Spending authority from offsetting collections: 

Spending Authority from offsetting collections (total) 6,054 2,686 

Total budgetary resources $ 306,970 $ 279,482 

STATUS OF BUDGETARY RESOURCES 

Obligations incurred

Obligations incurred (total) 210,150 203,428

Unobligated balance 

Apportioned 46,623 25,857

Unobligated balance not available 50,197 50,197

Total unobligated balance, end of year 96,820 76,054

Total budgetary resources $ 306,970 $ 279,482 

 (Continued)

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 92

The Corporation for National and Community Service

 (Continued)

Corporation for National and Community Service 

National Service Trust Statements of Budgetary Resources 

for the Periods Ended September 30 (dollars in thousands)

CHANGE IN OBLIGATED BALANCE 2013 2012

Unpaid obligations: 

Unpaid obligations, brought forward, October 1 $ 564,476 $ 542,589

Obligations incurred 210,150 203,428 

Outlays (gross) (-) (182,495) (181,541)

Unpaid Obligations, end of year $ 592,131 $ 564,476

Memorandum entries:

Obligated balance, start of year $ 564,476 $ 542,589 

Obligated balance, end of year $ 592,131 $ 564,476 

BUDGET AUTHORITY AND OUTLAYS, NET 

Budget authority, gross (discretionary and mandatory) $ 230,917 $ 218,458 

Change in uncollected customer payments from federal sources (6,054) (2,686) 

Budget authority, net (discretionary and mandatory) $ 224,863 $ 215,772 

Outlay, gross (discretionary and mandatory) 182,495 181,541 

Actual offsetting collections (6,054) (2,686)

Outlays, net (discretionary and mandatory) $ 176,441 $ 178,855 

Distributed offsetting receipts (223,568) (211,916)

Agency Outlays, net (discretionary and mandatory) $ (47,127) $ (33,061) 

The accompanying notes are an integral part of these financial statements.
Other Information | PART IV 93

The Corporation for National and Community Service

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 2006.

B. BASIS OF ACCOUNTING

The Statements of Financial Position; Operations and Changes in Net 

Position, Cash Flows and Budgetary Resources have been prepared from 

the books and records of CNCS 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’ financial position, 

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

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

financial statements of CNCS are the:

• Statement of Financial Position, which reports the status of 

Corporation assets, liabilities, and net position;

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

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

position that occurred during the year; and

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities. 

The financial statements are presented in accordance with the accounting 

principles generally accepted in the United States of America (GAAP), as 

applicable to federal government corporations. The Federal Accounting 

Standards Advisory Board (FASAB) is the standard setting body for the 

federal government. Statement of Federal Financial Accounting Standards 

Number 34 (SFFAS 34) provides that financial statements prepared 

by certain government corporations in conformity with the accounting 

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’ 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’ 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 
Other Information | PART IV 94

The Corporation for National and Community Service

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, 2013, 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’ cash accounts with the Department 

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

and disbursements on behalf of CNCS and CNCS’ accounting records 

are reconciled with those of the Treasury on a regular basis. 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, bills and 

one-day certificates.

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

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

discounts. The premiums and discounts are recognized as adjustments to 

interest income, using the effective interest method. Interest receivable 

represents amounts earned, but not received on investments held at 

year-end. Prepaid interest is the amount of interest earned on a security 

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

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

interest receivable balance.

H. 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

Appropriations received for CNCS’ Trust are recognized as revenue when 

received in the Trust Fund. Trust appropriations do not expire with the 

passage of time and are retained by CNCS in the Trust until used for 

eligible education service award purposes.

Transfer in of Program Funds. Transfers in of program funds are 

recognized as revenue when funds are transferred from subtitle C 

pursuant to 42 USC 1260.

Interest on Investments. Interest income is recognized when earned. 

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

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

income is adjusted by amortization of premiums and discounts using the 

effective interest method.

Other Revenue. CNCS’ engagements in federal partnerships allow the 

Trust Fund to be reimbursed for Segal AmeriCorps Education Awards 

earned by members supporting activities of the partnership. The revenue 

from these partnerships is recognized as Other revenue when earned.

N. INCOME TAXES

As a federal entity, CNCS is exempt from all income taxes imposed 

by any governing body, Federal, State, commonwealth, local, or 

foreign government.

O. USE OF ESTIMATES

The preparation of financial statements in accordance with GAAP 

requires CNCS to make estimates and assumptions about future events. 

These estimates and assumptions affect the amounts reported in 
Other Information | PART IV 95

The Corporation for National and Community Service

CNCS’ financial statements and accompanying notes. CNCS evaluates 

its estimates and assumptions on an ongoing basis using historical 

experience and other factors that it believes to be reasonable under the 

circumstances. Adjustments to estimates and assumptions are made 

when facts and circumstances warrant. As future events and their 

effects cannot be determined with certainty, actual results could differ 

from the estimates used in preparing the accompanying financial 

statements. Significant estimates and assumptions are required as 

part of determining the liability for service awards, grants payable, 

and grant advances.

P. COMPARATIVE DATA

The National Trust Fund financial statements provide comparative 

information for FY 2013 and 2012. For FY 2013, the Statements of 

Cash Flow and Budgetary Resources were added as primary statements 

to conform with GAAP as applicable to federal government corporations. 

Certain prior year amounts have been reclassified to conform to current 

year presentation and better reflect CNCS’ operations under 

its reauthorization. 

Q. CONCENTRATION OF RISKS

Congress annually considers whether to fund CNCS’ program and 

operational activities. Should Congress opt not to enact appropriations 

to fund them, CNCS would be unable to continue operations 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. 
Other Information | PART IV 96

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury

U.S. Government cash is accounted for on an overall consolidated basis by the U.S. Department of Treasury. The Fund Balance with Treasury line on the 

Statement of Financial Position consists of Trust Funds of $611 thousand in FY 2013 and $5.0 million in FY 2012 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.

Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Restricted Total

FBWT $ 611 $ 611 

Investments and Related Receivables 693,165 693,165 

Total $ 693,776 $ 693,776 

Status of Unexpended Balances as of September 30, 2013 (dollars in thousands)

Type Restricted Total

Unobligated:

Available $ 51,448 $ 51,448

Unavailable 50,197 50,197

Obligated not yet Disbursed 592,131 592,131

Total $ 693,776 $ 693,776

Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Restricted Total

FBWT $ 4,951 $ 4,951 

Investments and Related Receivables 638,565 638,565 

Total $ 643,516 $ 643,516
Other Information | PART IV 97

The Corporation for National and Community Service

Status of Unexpended Balances as of September 30, 2012 (dollars in thousands)

Type Restricted Total

Unobligated:

Available $ 28,843 $ 28,843

Unavailable 50,197 50,197

Obligated not yet Disbursed 564,476 564,476

Total $ 643,516 $ 643,516

NOTE 3—National Service Trust Investments and Related Receivables

The composition of National Service Trust Investments and Related receivables at September 30 is as follows:

Investments and Related Receivables as of September 30 (dollars in thousands)

2013 2012

Investments, Carrying Value $ 692,243 $ 637,507 

Interest Receivable 922 1,058

Total $ 693,165 $ 638,565

Amortized Cost and Fair Value of Investment Securities as of September 30, 2013 (dollars in thousands)

Unrealized Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 512,220 $ 1,560 $ 513,780 

Bills 180,023 11 180,034 

Total $ 692,243 $ 1,571 $ 693,814 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2012 (dollars in thousands)

 Unrealized Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 477,115 $ 3,045 $ 480,160 

Bills 160,392 5 160,397 

Total $ 637,507 $ 3,050 $ 640,557 
Other Information | PART IV 98

The Corporation for National and Community Service

At September 30, 2013, the notes held at year-end had an interest rate 

range of 0.250 perent to 4.25 percent and an outstanding maturity period 

of approximately seven days to three years. The bills held at year-end had 

an interest rate range of 0.000 percent to 0.175 percent and were all due 

to mature within 364 days. The par values of these bills range from 

$.2 million to $33.0 million. The fair value of the bills and notes is based 

on bid and ask prices quoted by the Treasury as of September 30, 2013 

and 2012.

Since fiscal 2003, CNCS has set aside in reserve a portion of the funds in 

the National Service Trust for use in the event that its estimates used to 

calculate obligational amounts for education awards prove to be too low. 

This reserve was originally required by the Strengthen AmeriCorps Program 

Act, and is now required by section 149(b) of the National and Community 

Service Act (42 U.S.C. 12606(b)). As of September 30, 2013, $50.2 million 

of CNCS’ investment account has been set aside for this reserve.

NOTE 3—Trust Investments and Related Receivables—Continued

Investments held at September 30 mature according to the following schedule:

Maturation of Securities Held as of September 30 (dollars in thousands)

2013 2012

Amortized Amortized

Held-to-Maturity Securities Cost Fair Value Cost Fair Value

Due in 1 year or less $ 441,185 $ 441,710 $ 327,537 $ 327,780 

Due after 1 year up to 5 years 251,058 252,104 309,970 312,777

Total $ 692,243 $ 693,814 $ 637,507 $ 640,557

NOTE 4 – Accounts Receivables, Net

Accounts Receivable as of September 30 (dollars in thousands)

Trust Fund Total

2013

Accounts receivable $ 281 $ 281 

Less: allowance for loss on receivables (47) (47)

Accounts Receivable, Net $ 234 $ 234 

2012

Accounts receivable $ 289 $ 289 

Less: allowance for loss on receivables (38) (38)

Accounts Receivable, Net $ 251 $ 251
Other Information | PART IV 99

The Corporation for National and Community Service

NOTE 5—Trust Service Award Liability

GAAP requires the recording of a liability, which is a point in time 

estimate, for the unpaid earned and expected-to-be-earned education 

award and interest forbearance costs that are likely to be paid. GAAP 

estimates are for members who have already completed at least 15 

percent of the minimum service requirement and who, therefore, have 

served enough hours to qualify for at least a partial education award.

The estimate of the Service Award Liability under GAAP includes factors 

that take into account the effect of members who enroll but do not earn 

an award and members who earn an award but do not use it within the 

period of availability. CNCS estimates that up to 87 percent of members 

earning an award will eventually use it.

Individuals who successfully complete terms of service in AmeriCorps 

programs earn education awards, which can be used to make payments 

on qualified student loans or for educational expenses at qualified 

educational institutions. The awards, which are available to use for a 

period of up to seven years after the benefit has been earned, are paid 

from the National Service Trust. The National Service Trust also pays 

forbearance interest on qualified student loans during the period members 

perform community service, as well as awards under the Presidential 

Freedom Scholarship Program. The award liability components related to 

education awards and interest forbearance have been adjusted, based 

on historical experience, to reflect the fact that some eligible participants 

may not use these benefits. The Service Award was composed of the 

following as of September 30:

Service Award Liability as of September 30 (dollars in thousands)

2013 2012

Education awards $ 2,301,708 $ 2,109,437

Interest forbearance 79,604 72,256 

President’s Freedom Scholarship Program 22,527 22,527

Total estimated service award liability 2,403,839 2,204,220

Less: cumulative awards paid 1,939,565 1,757,029 

Total $ 464,274 $ 447,191 

Since the Corporation’s inception in 1994, AmeriCorps members have 

earned over $2.7 billion in education awards. The Corporation has made 

$1.9 billion in payments to educational institutions and student loan 

holders on these awards. In addition, the Corporation has made $72.0 

million in interest forbearance payments since the program’s inception. 

Approximately $271.9 million in education awards earned had expired 

without being used as of September 30, 2013. The Trust obligation 

formula has been adjusted to reflect these expired awards. Payments for 

President’s Freedom Scholarships have totaled $21.7 million.

The net Service Award Liability as of September 30, 2013 increased 

by approximately $17.1 million from the net Service Award Liability as 

of September 30, 2012. This change was largely due to new member 

enrollments related to FEMA Corps and an increase in the number of 

members still serving during the year. Past CNCS appropriations made 

amounts from the National Service Trust available for $1,000 scholarships 

for high school students known as Presidential Freedom Scholarships. To 

fund each scholarship, a local community or corporate source matched 

the $500 portion of the scholarship provided by CNCS. The program was 

discontinued in fiscal 2007; however, because students have up to seven 

years to use the scholarship, some payments will continue to be made 

through 2014. As of October 1, 2009, the National Service Trust is also 

available to pay Summer of Service and Silver Scholar educational awards. 

However, the Silver Scholar program was not funded and no current 

liability was accrued for those educational awards. The Summer of Service 

program was only funded in FY 2010.

NOTE 6—Net Positions

Net position consists of cumulative results of operations. The cumulative 

result of operations for the Trust Fund was $229.7 million in FY 2013 and 

$196.6 million in FY 2012, 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 of position of the Trust Fund 

in the amounts of $229.7 million in FY 2013 and $196.6 million in FY 2012 

is temporarily restricted. 
Other Information | PART IV 100

The Corporation for National and Community Service

NOTE 7—Appropriations Received by the National 

Service Trust

For fiscal year 2013, the National Service Trust received $200.7 million 

under the Continuing Appropriations Act, 2013 (Public Law 112-175). For 

fiscal year 2012, the National Service Trust received $207.6 million under 

the Consolidated Appropriations Act. 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 $22.8 million and $4.4 million to the Trust under this 

provision in fiscal year 2013 and 2012, respectively.

NOTE 8—Expenses

Using an appropriate cost accounting methodology, CNCS’ expenses have 

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

Costs for each sub-program are reported on separately:

The National Service Award Expense component consists of CNCS’ 

estimated expense for education awards based on the increase in its 

service award liability during the year and interest forbearance costs on 

qualified student loans during the period members perform community 

service. No indirect costs have been allocated to the National Service 

Award expense component.

Expenses by Sub-Program for the Period Ended September 30, 2013 (dollars in thousands)

 AmeriCorps

Type State/National NCCC VISTA Total

Service award expense 171,188 8,484 19,896 199,568 

Total Expenses $ 171,188 $ 8,484 $ 19,896 $ 199,568

Expenses by Sub-Program for the Period Ended September 30, 2012 (dollars in thousands)

 AmeriCorps

Type State/National NCCC VISTA Total

Service award expense 182,786 8,609 27,028 218,423 

Total Expenses $ 182,786 $ 8,609 $ 27,028 $ 218,423

NOTE 9—Subsequent Events

CNCS has evaluated subsequent events through December 16, 2013, 

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, 2013 and 2012 were 

$592.1 and $564.5 million, respectively.

NOTE 11—Apportionment Categories of Incurred 

Obligations

An apportionment is a distribution by OMB of amounts available for 

obligation. OMB apportions Trust funds on an annual basis. Obligations 

incurred in the Trust Fund during FY 2013 and 2012 were $210.1 and 

$203.4 million, respectively. 
Other Information | PART IV 101

The Corporation for National and Community Service

Other Information

Table 3 shows the most significant factors used to calculate Trust 

obligations on a historical basis. It is important to note that Program Year 

refers to positions awarded with a particular fiscal year’s grant funds. 

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 2012 

but not fill all positions until fiscal 2013. All positions related to this grant 

would be considered Program Year 2012 positions, irrespective of the year 

in which they are filled.

Table 3. Factors Affecting the National Service Trust Fund

Program Year

2012 Recovery Act 2011 2012 2013

Member enrollments in the Trust 88,362 13,862 79,197 74,176 30,051

Percent of members who earned an education award 83.6% 82.7% 84.8% 86.4% 66.7%

Percent of earned education awards used 63.0% 68.6% 50.0% 24.8% 16.4%

Weighted average yield to maturity for investments 1.3% 0.25% 1.25% 1.25% 1.25%

Breakout of enrollment by term type:

Full-time 43% 57% 45% 48% 79%

Part-time 13% 0% 13% 13% 8%

Reduced Part-time 44% 43% 42% 39% 14%

The Program Year data used throughout these tables reflect all enrollments 

recorded through the reporting period. Prior year enrollment numbers 

may change slightly from time to time due to corrections or late reporting 

by grantees. The percentage of members earning an award in Table 6 is 

calculated by taking the number of members earning an award divided by 

the total members enrolled, net of members still earning. For example, in 

Program Year 2012 there are 74,176 members enrolled in the Trust, of which 

13,063 are reported as still earning an award and 52,810 as having earned 

an award. Therefore the percentage of members who earned an education 

award is calculated by dividing the number of education awards earned 

52,810 by the number of enrolled members who are no longer earning an 

award [74,176 – 13,063 = 61,113]. Thus the percentage of members who 

earned an award is 52,810/61,113 or 86.41 percent. The percentage of 

earned education awards used is calculated by taking the dollar amount of 

education awards used divided by the total amount earned for the Program 

Year to date. Term type is based on Program Year enrollments to date. The 

enrollment and award usage data used to compute these factors can be 

found in Table 4, at the end of this report.

Tables 4 and 5 present information on the budgetary resources and 

obligations of the Trust, including the Trust Reserve. The National and 

Community Service Act of 1990 (NCSA), as amended by the Edward M. 

Kennedy Serve America Act (PL 111- 13), establishes the specific criteria 

for estimating and recording obligations in the Trust. Accordingly, CNCS 

records Trust obligations at the time it awards AmeriCorps State and 

National grants or at the time AmeriCorps VISTA and NCCC members 

begin their terms of service.
Other Information | PART IV 102

The Corporation for National and Community Service

Table 4. Corporation for National and Community Service 

National Service Trust Schedule of Budgetary Activity for the Period Ended 

September 30, 2013

Resources Recovery Act Trust FEMA Corps General Fund Consolidated

Funds Available at October 1 $ 1,882,155 $ 3,594 $ 8,569,708 $ 10,455,457

Budgetary Resources

Fiscal Year Appropriation - - 200,718,695 200,718,695

Other Actual Collections – Federal - 5,737,206 - 5,737,206

Transfers in of Program Funds - - 22,848,845 22,848,845

Deobligation Prior Year Positions (net) - - 6,633,892 6,633,892

Collection of Audit Receivables - - 316,692 316,692

Less: Additions to Trust Reserve - - - -

Total Budgetary Resources 1,882,155 5,740,800 239,087,832 246,710,787

Obligations

Education Awards - (4,532,570) (187,926,851) (192,459,421)

Interest Forbearance - (183,166) (7,445,145) (7,628,311)

Total Obligations - (4,715,736) (195,371,996) (200,087,732)

Net Change in Commitments

Education Awards - - (5,278,020) (5,278,020)

Interest Forbearance - - (1,113,316) (1,113,316)

Net Change in Commitments - - (6,391,336) (6,391,336)

Funds Available for Obligation $ 1,882,155 $ 1,025,064 $ 37,324,500 $ 40,231,719
Other Information | PART IV 103

The Corporation for National and Community Service

In accordance with the National and Community Service Act of 1990 

and Sec. 149. (42 U.S.C. 12606), the Schedules of Budgetary Activity 

and Trust Obligations are used to specify amounts deposited to the 

Trust and present the amounts recorded as an obligation based on an 

estimate of the net present value of the education benefit discounted 

for the estimated enrollment, earning and usage rate and the time value 

of money. For fiscal 2013, these factors are the full value of the Segal 

AmeriCorps Education Award, a 100 percent enrollment rate (which 

allows for refills), an average earning rate of 84 percent (which ranges 

from 77 to 86 percent depending on term type), and an average usage 

rate of 87 percent. Under the Kennedy Serve America Act, awards earned 

by members over age 55 can be transferred to an eligible beneficiary. 

Therefore, for budgetary purposes we are projecting that all transferable 

awards will eventually be used. For program years 2002 and prior, CNCS 

uses the actual amounts earned, adjusted for amounts used and the time 

value of money to determine the obligation. Obligations are periodically 

adjusted to reflect current earning and usage projections.” 

A portion of the funds in the Trust is held in reserve and are for use in the 

event that the estimates used to calculate obligations differ from actual 

results. The reserve currently totals $50.2 million ($46.7 million for the 

General Fund and $3.5 million for the Recovery Act Fund). To date, no 

reserve funds have been used. 

FEMA Corps is a new unit of AmeriCorps’ National Civilian Community 

Corps (NCCC) whose members will be devoted solely to FEMA disaster 

response, and recovery efforts. The five-year agreement provides for a 

full service corps of 1,600 members annually who will compliment and 

support of FEMA’s current disaster workforce. 

Table 5. Corporation for National and Community Service 

National Service Trust Schedule of Trust Obligations 

as of September 30, 2013

Resources Recovery Act FEMA Corps General Fund Consolidated

Fund Balance with Treasury $ 105,662 $ 223,392 $ 281,553 $ 610,607

Investments, Net 12,508,659 7,205,663 672,529,061 692,243,383

Interest Receivable - - 922,111 922,111

Accounts Receivable - - 234,133 234,133

Subtotal 12,614,321 7,429,055 673,966,858 694,010,234 

Less:

Cumulative Trust Reserve (3,500,000) - (46,697,000) (50,197,000)

Receivables Not Available for Obligation (8,659) (5,663) (5,044,994) (5,059,316)

Total Resources 9,105,662 7,423,392 622,224,864 638,753,918

Unliquidated Obligations

Education Awards (7,107,606) (6,190,424) (562,690,654) (575,988,684)

Interest Forbearance (115,901) (207,904) (14,935,374) (15,259,179)

President’s Freedom Scholarships - - (883,000) (883,000)

Total Unliquidated Obligations (7,223,507) (6,398,328) (578,509,028) (592,130,863)

Commitments 

Education Awards - - (5,278,020) (5,278,020)

Interest Forbearance - - (1,113,316) (1,113,316)

Total Commitments - - (6,391,336) (6,391,336)

Funds Available for Obligation $ 1,882,155 $ 1,025,064 $ 37,324,500 $ 40,231,719
Other Information | PART IV 104

The Corporation for National and Community Service

Enrollment Activity

Table 6 presents cumulative data to date on Trust enrollments, education awards earned and used for Program Years 1994 through 2013 as well as 

Recovery Act positions.

Table 6. Trust Enrollment Activity—Program Years 1994 through 2013

 Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 15,331 0 11,463 3,868 $48,266,389.19 $35,310,366.87

1994 Part-time 6,264 0 4,172 2,092 $8,988,028.17 $6,694,416.79

Reduced Part-time 2,814 0 2,432 382 $2,467,981.29 $1,748,637.74

Total 24,409 0 18,067 6,342 $59,722,398.65 $43,753,421.40

Full-time 17,551 0 13,563 3,988 $61,095,280.87 $46,174,720.47 

1995 Part-time 6,850 0 4,362 2,488 $9,551,027.13 $6,944,709.87 

Reduced Part-time 577 0 493 84 $481,481.98 $349,740.58 

Total 24,978 0 18,418 6,560 $71,127,789.98 $53,469,170.92

Full-time 17,634 0 13,319 4,315 $60,762,700.91 $47,452,937.01

1996 Part-time 6,941 0 4,467 2,474 $10,085,197.90 $7,157,131.16 

Reduced Part-time 593 0 505 88 $499,514.66 $394,179.93

Total 25,168 0 18,291 6,877 $71,347,413.47 $55,004,248.10

Full-time 23,259 0 17,294 5,965 $79,318,854.34 $62,492,739.88 

1997 Part-time 12,832 0 7,083 5,749 $15,939,868.60 $11,712,827.10 

Reduced Part-time 3,677 0 2,975 702 $2,904,130.87 $2,315,198.17

Total 39,768 0 27,352 12,416 $98,162,853.81 $76,520,765.15

Full-time 24,749 0 17,903 6,846 $82,264,571.93 $65,310,115.79

1998 Part-time 11,156 0 6,208 4,948 $14,031,027.14 $10,220,496.61 

Reduced Part-time 5,101 0 3,829 1,272 $3,799,775.12 $3,002,711.80 

Total 41,006 0 27,940 13,066 $100,095,374.19 $78,533,324.20

Full-time 23,294 0 17,016 6,278 $78,324,396.27 $62,159,045.89

1999 Part-time 11,333 0 6,915 4,418 $15,636,042.42 $11,226,347.34 

Reduced Part-time 7,260 0 5,862 1,398 $6,095,874.28 $4,841,701.83

Total 41,887 0 29,793 12,094 $100,056,312.97 $78,227,095.06

Full-time 26,203 0 19,082 7,121 $87,921,306.62 $69,537,392.52 

2000 Part-time 13,213 0 8,453 4,760 $19,404,182.70 $13,696,839.52

Reduced Part-time 13,619 0 10,272 3,347 $10,645,579.77 $8,522,513.48

Total 53,035 0 37,807 15,228 $117,971,069.09 $91,756,745.52

Full-time 29,455 0 22,600 6,855 $104,409,272.45 $82,674,422.91 

2001 Part-time 13,834 0 8,884 4,950 $20,165,005.40 $13,854,609.14 

Reduced Part-time 15,827 0 12,470 3,357 $12,967,902.89 $9,911,073.87 

Total 59,116 0 43,954 15,162 $137,542,180.74 $106,440,105.92

Full-time 28,139 0 23,172 4,967 $107,730,673.73 $87,636,041.99 

2002 Part-time 9,427 0 6,478 2,949 $14,859,278.64 $10,256,610.63

Reduced Part-time 10,842 0 8,118 2,724 $9,300,854.33 $7,262,166.76 

Total 48,408 0 37,768 10,640 $131,890,806.70 $105,154,819.38
Other Information | PART IV 105

The Corporation for National and Community Service

Table 6. Trust Enrollment Activity—Program Years 1994 through 2013 (continued)

 Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 18,319 0 15,236 3,083 $70,063,810.06 $55,973,686.25 

2003 Part-time 9,424 0 7,063 2,361 $16,283,881.70 $11,524,856.28 

Reduced Part-time 13,272 0 10,590 2,682 $12,084,613.06 $9,180,532.25 

Total 41,015 0 32,889 8,126 $98,432,304.82 $76,679,074.78

Full-time 29,044 0 24,363 4,681 $113,198,486.73 $94,071,936.55 

2004 Part-time 10,833 0 7,614 3,219 $17,514,510.62 $12,354,578.25 

Reduced Part-time 22,779 0 17,992 4,787 $20,763,252.88 $16,161,639.67 

Total 62,656 0 49,969 12,687 $151,476,250.23 $122,588,154.47

Full-time 28,301 0 23,094 5,207 $107,133,771.62 $87,380,253.87 

2005 Part-time 11,132 0 7,809 3,323 $17,968,525.35 $12,832,663.77 

Reduced Part-time 23,365 0 18,084 5,281 $20,338,612.06 $15,407,329.80 

Total 62,798 0 48,987 13,811 $145,440,909.03 $115,620,247.44

Full-time 30,389 0 25,167 5,222 $116,957,710.23 $92,361,454.84 

2006 Part-time 11,619 0 8,199 3,420 $18,935,740.46 $13,067,074.71 

Reduced Part-time 27,255 1 21,001 6,253 $23,833,568.30 $17,715,007.97 

Total 69,263 1 54,367 14,895 $159,727,018.99 $123,143,537.52

Full-time 30,905 0 26,185 4,720 $121,975,658.01 $96,596,519.99

2007 Part-time 10,137 0 7,367 2,770 $17,027,260.29 $11,754,422.56

Reduced Part-time 26,943 0 21,366 5,577 $24,309,300.61 $17,791,592.25

Total 67,985 0 54,918 13,067 $163,312,218.91 $126,142,534.80

Full-time 32,368 0 28,181 4,187 $131,710,066.71 $101,262,717.02

2008 Part-time 10,679 1 8,113 2,565 $18,842,497.88 $12,646,358.51

Reduced Part-time 27,007 1 21,876 5,130 $24,990,545.16 $17,754,463.63

Total 70,054 2 58,170 11,882 $175,543,109.75 $131,663,539.16

Full-time 31,037 2 27,320 3,715 $127,713,768.60 $93,494,348.70 

2009 Part-time 9,878 24 7,589 2,265 $17,621,890.44 $11,296,467.80

Reduced Part-time 28,866 7 23,303 5,556 $26,484,489.14 $18,442,936.53 

Total 69,781 33 58,212 11,536 $171,820,148.18 $123,233,753.03

Recovery Full-time 7,907 0 6,654 1,253 $31,013,381.18 $21,577,132.42 

Act Part-time 0 0 0 0 $0.00 $0.00 

Reduced Part-time 5,955 0 4,813 1,142 $7,004,737.02 $4,486,324.58

Total 13,862 0 11,467 2,395 $38,018,118.20 $26,063,457.00
Other Information | PART IV 106

The Corporation for National and Community Service

Table 6. Trust Enrollment Activity—Program Years 1994 through 2013 (continued)

 Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 37,723 0 33,284 4,426 $175,577,504.01 $112,773,143.30

2010 Part-time 11,426 0 8,733 2,612 $22,823,457.20 $12,636,871.80

Reduced Part-time 39,213 0 31,743 7,437 $38,759,833.05 $24,058,659.70 

Total 88,362 0 73,760 14,475 $237,160,794.26 $149,468,674.80

Full-time 35,760 41 31,420 4,299 $169,992,576.87 $85,402,299.50 

2011 Part-time 10,352 179 8,250 1,923 $22,162,641.01 $9,257,781.84

Reduced Part-time 33,085 412 26,947 5,726 $35,178,369.01 $19,058,665.64 

Total 79,197 632 66,617 11,948 $227,333,586.89 $113,718,746.98

NSCS 

2012 Full-time 1,470 868 366 236 $1,978,984.76 $504,093.90 

Full-time 35,756 3,297 28,448 4,011 $152,865,572.78 $38,597,548.59

2012 Part-time 9,496 2,757 5,402 1,337 $14,599,176.33 $2,251,828.42

Reduced Part-time 28,924 7,009 18,960 2,955 $24,712,994.80 $6,750,721.39 

Total 74,176 13,063 52,810 8,303 $192,177,743.91 $47,600,098.40

Full-time 23,606 22,284 510 812 $2,700,236.63 $ 367,528.44 

2013 Part-time 2,300 2,279 1 20 $2,775.00 $1,388.00

Reduced Part-time 4,145 2,844 1,251 50 $1,469,403.63 $314,683.25 

Total 30,051 27,407 1,762 882 $4,172,415.26 $683,599.69

Cumulative To Date 1,200,727 43,177 917,248 240,302 $2,917,021,758.69 $1,978,746,620.24
Other Information | PART IV 107

The Corporation for National and Community Service

Improper Payments

Like all federal agencies, CNCS is responsible for complying with the 

Improper Payments Elimination and Recovery Act of 2010 (IPERA). 

IPERA requires agencies to evaluate their programs and activities at 

least once every 3 years to determine which programs or activities are 

susceptible to improper payments.8 For any program or activity determined 

to be susceptible to significant improper payments,9 IPERA and its 

implementing Office of Management and Budget (OMB) guidance requires 

agencies to:

• Produce a statistically valid estimate of the improper payments made 

by each program or activity in their agencies.

• Include such estimates in their annual financial statements.

• Report on actions to recover improper payments.

As reported in its Fiscal Year 2012 Agency Financial Report, in Fiscal Year 

2013 CNCS has undertaken a far more rigorous approach to assessing 

whether its programs were susceptible to significant levels of improper 

payments. CNCS’s analysis in Fiscal Year 2013 focused specifically 

assessing whether the AmeriCorps State and National grant program 

is susceptible to significant levels of improper payments. Because the 

AmeriCorps State and National program has annual outlays in excess of 

$300 million (significantly larger than any other CNCS program), relatively 

modest levels of improper payments can still lead to the conclusion that 

total estimated improper payments exceed $10 million (which would meet 

the IPERA reporting threshold). 

At the outset, CNCS had to determine how it was going to assess what 

constituted an “improper payment” with a federal grant program. CNCS 

determined that, in order to meet the overall purposes of IPERA, it would 

assess the rate of improper payment within its grant programs consistent 

with the criteria for disallowing costs in federal grants. In other words, 

CNCS considers any use of its grant funds which meets the allowable 

cost criteria under applicable OMB cost principles and the terms and 

conditions of the CNCS grant to be proper payments, and any use of grant 

funds which would not be allowable grant charges to be an improper 

payment for purposes of IPERA. 

Having adopted this standard for assessing improper payments within 

its grant programs, CNCS began an analysis of the levels of improper 

payments among cost-reimbursement grantees in the AmeriCorps State 

and National program. Although not required to do so, CNCS decided 

to conduct its initial IPERA assessment through a rigorous statistical 

approach. Although AmeriCorps grantees are subject to significant 

program and fiscal monitoring, there has never been an analysis of 

the costs incurred by AmeriCorps grantees across the entire portfolio. 

Historically, CNCS’s monitoring of its grantees, and the OIG audits of 

grant awards, have been concentrated on grants and programs that 

represented higher risks. While this is an appropriate way to allocate 

limited resources, it severely limits CNCS’s ability to assess an entire 

portfolio of grantees. A statistically-based approach allows CNCS to 

more accurately assess the extent of improper payments across an entire 

program grant portfolio. 

Based on its statistically-based approach for the AmeriCorps grants, 

CNCS has determined that the AmeriCorps State and National program 

is susceptible to significant levels of improper payments. Accordingly, 

CNCS’s IPERA program will now move forward with obtaining Office of 

Management and Budget approval of its overall statistical approach to 

measuring improper payments, and engaging in appropriate corrective 

actions. Upon approval of the measurement methodology (and any 

additional sampling and analysis required), CNCS will describe its 

measurement methodology, publish its estimates of the rates and 

amounts of improper payments, and describe its corrective actions. 

CNCS cannot currently state when during Fiscal Year 2014 that its 

improper payments measurements will be published, but in any case 

that information will be reported in the CNCS Fiscal Year 2014 Agency 

Financial Report. 

8

 IPERA defines an improper payment as any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, 

contractual, administrative, or other legally applicable requirements. It includes any payment to an ineligible recipient, any payment for an ineligible service, any duplicate payment, payments for 

services not received, any payment that does not account for applicable discounts, or any amount that should have been paid to an eligible recipient but was not. OMB guidance also states that when 

an agency’s review is unable to discern whether a payment is proper as a result of insufficient or lack of documentation, this payment must also be considered improper.

9

 For Fiscal Year 2013, IPERA and its implementing OMB guidance define “significant improper payments” as annual overpayment amounts plus underpayment amounts in a program that exceeds 

both 2.5% of total program outlays and $10,000,000.