Agency Overview

Fiscal Year 2008

Improve lives, strehgthen communities, and foster civic engagement through service and volunteering

”
Purpose of the Report

This Annual Financial Report (AFR) represents an overall assessment of agency performance, including the financial reports and audit and follows reporting requirements under the Office of

Management and Budget (OMB) Pilot Performance and Accountability Report (PAR) process. Other

accompanying information to address the specialized information needs of some readers, are provided

electronically at: www.nationalservice.gov/about/role_impact/performance.asp. A more detailed performance assessment will be provided in the Fiscal Year (FY) 2010 Congressional Budget

Justification/Annual Performance Report, as specified in the OMB Pilot PAR process, and will be

available at this same web address. The agency also will provide a Budget, Performance and Financial

Snapshot Report in December 2008 and a Citizen's Report in January 2009-additional requirements

under the PAR Pilot that provide key performance and financial information from the AFR in a more

accessible format for a broader audience.

This document meets all requirements under the Government Performance and Results Act, the

Federal Financial Management Improvement Act, the Federal Managers' Financial Integrity Act, the

Government Corporation Control Act, the Improper Payments Information Act, and the Federal

Information Security Management Act, among others. This document also follows applicable guidance from OMB, as well as the recommendations of the Association of Government Accountants'

Certificate of Excellence in Accountability Reporting program.

1201 New York Avenue, NW

Washington, DC 20525

202-606-5000 (202-565-2799 TTY)

info@cns.gov

nationalservice.gov

HOW TO SERVE

If you are interested in joining or learning

more about Corporation programs, go to

nationalservice.gov. Under the “For Individuals”

menu, click on “Join Now” to discover which

opportunity is right for you.

SENIOR CORPS

seniorcorps.gov

AMERICORPS

americorps.gov

LEAR N AND SERVE AMERICA

learnandserve.gov

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 2008 Annual Financial Report,

Washington, DC, 2008.

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 on (202) 606-5000 or at the address noted above.
The Corporation for National and Community Service (the Corporation) is pleased to present

our Fiscal Year (FY) 2008 Annual Financial Report, a summary our performance and financial

condition in relation to our mission and goals. The FY 2008 Annual Report forms a portion of the

agency's Performance and Accountability Report .

Over the past five years, working in collaboration with the Board of Directors, we set a new strategic direction

for the Corporation. First, we emphasized the need to improve the internal operations of the Corporation -

from the financial systems to grant competition integrity. Building on this strong base, we then successfully

outlined and set the vision for long term volunteering and service sector success, connecting the work of the

Corporation with the work of the larger national service sector as outlined in the Corporation's Strategic

Plan, which can be found at: www.nationalservice.gov/about/focus_areas/index.asp

Looking forward to FY 2009, the Corporation and the national service movement enjoy tremendous momentum at a time when the nation is facing the toughest social problems in decades. From the high school

dropout crisis to natural disasters and the stresses of a downward-turning economy to homelessness,

Americans are looking for solutions. Buoyed by strong parallel waves of engagement in both the youth and

baby boomer generations and the growth of entrepreneurialism in the social sector, the Corporation and the

national service movement stand ready to help meet the needs and the desires of millions of Americans across

our nation to serve and solve America's most difficult challenges.

CORPORATION MISSION AND PERFORMANCE

The mission of the Corporation is to improve lives, strengthen communities, and foster civic engagement

through service and volunteering. Through the Corporation's programs, its far-reaching research and a growing understanding of volunteering best practices, the agency has become the number one catalyst for service

and volunteering in the country. The Corporation's Strategic Plan provides a blueprint for using the

Corporation's resources wisely to work with our thousands of partners - large and small - to build a culture of

citizenship, service and responsibility in America.

Over the last several years, we have articulated bold national goals associated with our strategic initiatives.

While there have been achievements, the Corporation has faced difficulties in meeting all of the agency's

national targets. We recognize that performance in these areas must improve and we will continue our efforts

to increase the effectiveness of the Corporation's programs and data tracking processes related to our national

goals.

For targets within the direct influence of the Corporation, our long term target data is more aligned with our

actual performance. In 2007, the number of children and youth from disadvantaged circumstances serving in

their communities in Corporation-sponsored programs saw a 43 percent increase from 2006 - far exceeding

the target. Similarly, the number of college students serving in Corporation-sponsored programs increased by

84 percent from 2006 to 2007.

FY 2008 CNCS Annual Financial Report Agency Overview i

Message from the

CHIEF EXECUTIVE OFFICER

NOVEMBER 14, 2008

1

This document, under a pilot project directed by the Office of Management and Budget, is supplemented with the

Annual Performance Report in conjunction with the FY 2010 Congressional Budget Justification.
ii FY 2008 CNCS Annual Financial Report

We set a national target of 75 million volunteers when the strategic plan was developed in 2006. And while our highest mark to

date is 65 million volunteers in 2005, our current figure of just under 61 million remains historically high. We continue to believe

the 75 million volunteers figure is a useful and appropriate target.2

CORPORATION MANAGEMENT

Under Executive Order 13331 (February 2004), the President directed the Corporation to strengthen our national service programs' responsiveness to state and local needs; partner with more faith-based and community organizations; support more community volunteers; and, increase our efficiency and management effectiveness. With the Board's support, the Corporation fully

achieved each of these objectives.

In addition to the directives of Executive Order 13331 the Corporation also made some significant management improvements:

» Achieved an unqualified audit opinion for the ninth consecutive year 

» Raised Customer Satisfaction survey scores from below to above the government-wide average in all programs.

» Developed a better understanding of volunteering behavior at the local level through strong research.

» Revitalized the workforce and employee morale through greater transparency between management and bargaining unit

employees and implementation of a performance management system that provides a detailed assessment of both employees

and supervisors.

These, and many other accomplishments outlined in the report, have helped to make the Corporation more efficient and effective.

Over the past several years, the Corporation has taken broad steps toward a greater online presence to achieve greater programmatic and administrative efficiencies. In FY 2008, we identified several areas in which we need to strengthen the Corporation's

current IT structure following the upgrading of several systems. We have been working with our Office of Information Technology

and the Programs to address outstanding issues, while driving higher levels of reliability and customer service through our applications.

The accomplishments of the agency reflect a well-managed, fully-accountable organization. The Corporation moves into the transition with a high-performing workforce, competitive grant competitions based on integrity and impact, and a commitment to

continue to improve performance by linking strategic and operational goals.

David Eisner

Chief Executive Officer

2

In September 2008, the Corporation's Board of Directors, following a careful review of the data, adjusted several measures to more accurately reflect the data measured through the Census and the Corporation's programs. Therefore, numbers reflected in this document will be different (as identified by footnotes) than figures reported previously in the

Congressional Budget Justification and Annual Financial Reports.
FY 2008 CNCS Annual Financial Report Agency Overview iii

MANAGEMENT’S DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

AGENCY OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

MISSION PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

MANAGEMENT PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19

FINANCIAL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

MESSAGE FROM THE DEPUTY CHIEF FINANCIAL OFFICER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

INTERNAL CONTROL, AUDIT RESULTS, AND MANAGEMENT ASSURANCES . . . . . . . . . . . . . . . . . . . . . . .26

IMPROPER PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FINANCIAL MANAGEMENT METRICS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANALYSIS OF APPROPRIATIONS AND FINANCIAL CONDITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

FINANCIAL STATEMENTS, NOTES, AND AUDITS

GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

OTHER ACCOMPANYING INFORMATION AVAILABLE ONLINE

(Available on the web at: www.nationalservice.gov/about/role_impact/performance.asp)

DONATIONS AND CONTRIBUTIONS

NATIONAL SERVICE TRUST

HISTORY, LEGISLATION AND FUNDING

THE CORPORATION'S PERFORMANCE MANAGEMENT SYSTEM

CONTENTS
iv FY 2008 CNCS Annual Financial Report
Management’s Discussion and Analysis

★ ★ ★
2 Agency Overview FY 2008 CNCS Annual Financial Report

PERFORMANCE AND ACCOUNTABILITY REPORT PILOT

For FY 2008, the Corporation chose to produce an alternative to the consolidated

Performance and Accountability Report (PAR), as authorized under the Office of

Management and Budget's Pilot Program. The alternative includes this document (the

Annual Financial Report [AFR]), the agency's forthcoming FY 2008 Annual Performance

Report (APR)-a component of the FY 2010 Congressional Budget Justification (CBJ) to

be provided in February 2009, the Budget, Performance and Financial Snapshot Report

provided in December 2008 and the Citizen's Report provided in January 2009. These

documents will be available on the Corporation's website at:

http://www.nationalservice.gov/about/role_impact/performance.asp. The Corporation

anticipates that this pilot approach will improve its performance reporting by providing the

most commonly sought information in the AFR and CBJ/APR, with web links for the

aspects of its reporting that may be of special interest to a certain audiences. This pilot

process enables the Corporation to reflect data available in January 2009 on its FY 2008

performance in the APR.

DATA VALIDITY

The Corporation's performance measures are derived from two sources - our grantees and

other federal agencies. No matter the source, the Corporation provides financial and performance data that is complete and reliable, except where specifically noted. In FY 2008,

the Corporation continued its efforts to improve data collection across all programs, which

resulted in improvements in data availability and data quality. The agency continued to

make improvements in our grantee monitoring and in the Performance Measurement

Database System, which is used to track, document, and connect national, Corporation,

program and operational metrics.

The Corporation faces data reporting challenges primarily related to when data available.

Corporation grantees report data in December/January; thus, data for a given fiscal year,

with the exception of selected management measures, is not available until after the publication of this document. Moreover, due to the timing of the collection and release of data

needed from other federal agencies (e.g., the Census Bureau), the Corporation is unable to

report on performance for most of our national measures until September of the following

fiscal year. As a result, actual FY 2008 performance data for most national and

Corporation measures is not included in the AFR, but will be included, to the extent possible, in all subsequent required reports related to the PAR Pilot 
FY 2008 CNCS Annual Financial Report Agency Overview 3

The Corporation for National and Community Service (the

Corporation) provides volunteer service opportunities to over

three million Americans each year; promotes volunteering in

communities throughout the country, and helps nonprofit

organizations to engage volunteers effectively. In doing so, the

Corporation provides necessary, cost-effective, caring, and

compassionate volunteer services to improve the lives of the

nation's neediest citizens and communities.

In FY 2008, The Corporation received an appropriation of

about $856 million, a decrease of roughly $29 million or 3.3

percent from the prior year. For more information on the

Corporation's history, legislation and funding, please visit:

www.nationalservice.gov/ about/role_impact/performance.asp

STRATEGIC GOALS

To achieve its mission, the Corporation works through its

Senior Corps, AmeriCorps, and Learn and Serve American

programs, as well as a number of smaller grant programs and

special initiatives to achieve the following strategic goals:

» Meet Critical Needs in Local Communities Through

Service: Services provided by participants in

Corporation programs help meet a broad range of the

nation's educational, environmental, and other human

needs;

» Strengthen the Capacity of Communities to Engage

Citizens: All Corporation programs help nonprofit

organizations, public agencies, educational institutions,

and volunteer connector organizations to build their

capacity to engage citizens in service and strengthen the

community's ability to meet local needs; and

» Engage Americans in a Lifetime of Volunteering and

Service: The Corporation helps to create an ethic of

responsibility and citizenship by providing meaningful

service opportunities for individuals of all ages and

backgrounds.

STRA TEGIC INITIATIVES

In February 2006, the Corporation adopted a Strategic Plan

for FY 2006-FY 2010 (www.nationalservice.gov/

about/focus_areas/index.asp). Incorporating input from hundreds

of people and organizations in the nonprofit volunteer sector,

the plan embraced a set of ambitious but achievable goals

based on the data available at the time. The plan also was centered on a national vision that a better future for all Americans

includes a widespread culture of service.

The plan identifies five key strategic initiatives that reflect

emerging demographic, social, and economic trends-trends

that pose both challenges and opportunities for the nation:

(The relationships of these initiatives to the agency's strategic

goals are described in Table 1.)

» Mobilize More Volunteers. Increase the overall number

of volunteers and the intensity of volunteering;

» Ensure a Brighter Future for All of America's Youth.

Provide mentors to disadvantaged youth and to engage

such youth in service;

» Engage Students in Communities. Increase volunteering among all students from kindergarten through college and to expand the use of service-learning in

schools;

» Harness Baby Boomers' Experience. Expand volunteering among Baby Boomers and to provide frail elderly

people with help to remain living independently; and

» Support Disaster Preparedness and Response. Build

national, state, and local disaster response capacity to use

volunteers.

The Corporation's Board of Directors approves the agency's

strategic plan, performance measures, and corresponding targets. The Board periodically reviews the agency's performance

against the targets and determines actions necessary to

improve agency outcomes. Such actions may include modifying agency priorities, measures, and targets.

The Strategic Plan also identifies "Sustain Management

Excellence" as one of the Corporation's key goals and puts

forth a number of operational goals and strategies for improving virtually all areas of internal management and customer

service for the agency's stakeholders. The agency's full strategic

plan is available at: www.nationalservice.gov/

about/focus_areas/index.asp

Agency Overview Agency Overview
4 Agency Overview FY 2008 CNCS Annual Financial Report

Table 1. Contributions of each strategic initiative to the strategic goals

STRATEGIC INITIATIVES

STRATEGIC

GOALS

Mobilize More 

Volunteers 

Ensure a Brighter 

Future for All of 

America’s Youth 

Engage Students 

in Communities 

Harness Baby 

Boomers’

Experience 

Support Disaster 

Preparedness and 

Response 

Meet Critical 

Needs in Local 

Communities 

Through 

Service

Empower local 

citizens to meet 

their own 

communities’ most 

pressing needs 

through effective 

volunteer

engagement and 

management

Improve the 

circumstance and 

prospects for 

disadvantaged youth 

through mentoring an 

engaging 

disadvantaged youth 

in service 

Turn students into 

a key resource to 

meet the most 

pressing needs of 

the communities in 

which they live 

Utilize the large 

Boomer population 

as a major asset in 

responding to 

communities’ most 

pressing needs, 

particularly needs 

exacerbated by the 

aging of the 

population

Mobilize national 

service participants 

and volunteers to help 

communities prepare 

for disasters and to 

recruit, manage, and 

coordinate otherwise 

unaffiliated volunteers 

in immediate relief 

efforts and long-term 

community recovery 

Strengthen the 

Capacity of 

Communities to 

Engage Citizens 

Provide volunteer 

management

support, best 

practices, and 

partnerships to 

dramatically 

expand community 

capacity to recruit, 

manage, and retain 

volunteers.

Build the capacity of 

communities across 

America to recruit, 

train, match and 

support millions of 

mentors and to 

engage and support 

millions of 

disadvantaged youth 

in service 

Strengthen the 

connection and 

natural alliance 

between key 

community 

organization and 

institution, and the 

local school and 

students, and focus 

on a school goal of 

creating more 

connected, 

engaged citizens 

Expand nonprofit 

capacity to engage, 

manage, and retrain 

Baby Boomer 

volunteers

Build the capacity of 

communities to 

respond to disasters 

rapidly and effectively 

by strengthening 

partnerships among 

state, local, and 

national governments, 

nonprofits, and profitmaking organizations 

Engage 

Americans in a 

Lifetime of 

Volunteering

and Service 

Promote service as 

a regular part of all 

Americans’ lives 

Make mentoring the 

epitome of ongoing, 

engaged service, and 

support the transition 

from episodic 

volunteering to 

committed mentoring 

Maximize the 

opportunities for 

student service and 

service-learning to 

become the “onramp” to a lifetime 

of civic 

engagement for 

young Americans 

Attract Boomers to 

service now so that 

they will stay 

engaged as they pass 

the traditional age of 

retirement and 

reaffirm the 

importance of civic 

engagement to 

subsequent

generations

Develop disaster 

preparedness and 

response resources and 

inventories to enable 

immediate disaster 

response and long-term 

recovery 

ORGANIZATION

Headquartered in Washington, D.C., the Corporation is an

independent federal agency with a Board of Directors, Chief

Executive Officer (CEO), Chief Financial Officer (CFO), and

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

President and confirmed by the Senate. In addition, the

Corporation has a Chief Operating Officer (COO) who manages the agency's programs. The CEO provides overall management of the agency's programs and operations, including

about 560 employees who work throughout the United States

and its territories. The Board of Directors sets policies and

direction for the Corporation and is responsible for all actions

taken by programs and initiatives necessary to carry out the

mission of the Corporation. Field offices in nearly every state

conduct public outreach and program support and are directly

responsible for developing grants and projects and for overseeing all Senior Corps and VISTA projects in their states. The

Corporation's structure also includes five National Civilian

Community Corps (NCCC) campuses and one Field

Financial Management Center.
FY 2008 CNCS Annual Financial Report Agency Overview 5

The agency also works through state-sponsored organizations:

» State Service Commissions receive Corporation funding to support AmeriCorps programs through annual grant competitions and manage, monitor, and evaluate these programs. The Commissions also encourage volunteering in their states and

often administer special volunteer initiatives and community-based service-learning programs.

» State Education Agencies (SEAs) receive formula-based funds from Learn and Serve America. Most of the funds are distributed by sub-grants to schools and school districts that work with one or more community partner organizations to create

service-learning projects that meet community needs and support the development of students' academic, civic, and social

skills.

Below is a map of Corporation State and field offices
6 Agency Overview FY 2008 CNCS Annual Financial Report

PROGRAMS

The Corporation operates three major sets of programs-Learn

and Serve America, AmeriCorps, and Senior Corps-and a

number of smaller programs and activities. These programs are

united in a common purpose: engaging citizens in volunteering

to improve their communities. For more information about

these programs, please visit:

www.nationalservice.gov/about/programs/index.asp.

Learn And Serve America

Learn and Serve America supports service-learning activities

in schools, colleges, and community organizations, annually

helping more than one million students from kindergarten

through college to meet community needs, while improving

their academic skills and learning the importance of good citizenship.

AmeriCorps

AmeriCorps is a network of national service programs that

meet critical needs in areas such as education, public safety,

health, and the environment through partnerships with nonprofit organizations such as faith-based and community-based

organizations, colleges and universities, state and local governments, and other organizations. AmeriCorps members earn an

education award upon completion of their service of up to

$4,725 to help finance their education. AmeriCorps includes

three programs:

» National Civilian Community Corps (NCCC) engages

men and women ages 18-24 in a full-time, team-based,

residential program as well as operates a Summer of

Service program for those as young as 14, to provide

flexible response capabilities to meet community needs;

» State and National provides grants to nonprofit, public,

and other organizations to engage Americans of all

backgrounds in service to address community needs; and

» Volunteers in Service to America (VISTA) provides

full-time volunteers to community organizations to help

create and expand anti-poverty programs.

Senior Corps

Senior Corps is a network of more than 1,000 organizations

sponsoring about 1,300 Senior Corps projects that use the

experience, skills, and talents of about 500,000 older volunteers

to meet community needs. Senior Corps includes three programs:

» RSVP provides the most flexibility for service.

Volunteers age 55 and older choose how, where, and

how often they want to serve, with commitments ranging from a few hours to 40 hours per week. Volunteers

are eligible to receive reimbursement for mileage and

insurance coverage while on assignment;

» Foster Grandparent Program (FGP) provides support

and service to children and youth with special or exceptional needs in a variety of settings including schools,

hospitals, drug treatment centers, and child care centers.

Volunteers age 60 and over provide direct service 15 to

40 hours per week. Volunteers must meet income eligibility requirements to receive a monetary stipend of

$2.65 per hour; and

» Senior Companion Program (SCP) enables individuals

aged 60 and older to assist frail, homebound individuals

with daily living tasks. Senior Companions serve 15 to

40 hours per week and receive ongoing training in topics

such as Alzheimer's disease and stroke. Those who meet

income requirements receive a monetary stipend of

$2.65 per hour.

Other Corporation Activities

A number of smaller grant programs, such as the Martin

Luther King, Jr. Day of Service grants that engage volunteers

in specific short-term community projects, and Disability

Grants that engage individuals with disabilities in service, also

achieve agency goals. The Corporation also provides extensive

training and technical assistance to nonprofit and other organizations, operates a National Service-Learning Clearinghouse

and The Resource Center (online nonprofit/ project management support), provides President's Volunteer Service Awards

to people who demonstrate a substantial commitment to volunteering, and recognizes colleges and universities that implement service-learning models and programs through the

President's Higher Education Community Service Honor

Roll.
FY 2008 CNCS Annual Financial Report Agency Overview 7

Board of Directors 

Chief Executive Officer* 

Nicola Goren (Acting) Inspector General*†

Gerald Walpin 

Chief Financial Officer* 

J. Bridgesi

Chief Operating Officer 

E. Sealeii

AmeriCorps



State & Nat’l 

K. McSwainiii

AmeriCorps



NCCC 

M. Mazyck 

AmeriCorps



VISTA 

J. Whaley 

Senior Corps 

T. Scannell 

Learn & Serve 

E. Nash 

(Acting) 

Grants Policy 

& Operations 

M. Zakai 

Leadership

Development 

& Training 

G. Van der Veer 

Field Liaison 

M. Berning 

Grants & Field Financial Mgmt. 

R. Gaudio 

Financial Management 

W. Anderson 

Faith-based & Community Initiatives 

Vacant 

General Counsel 

F. Trinity 

Government Relations 

K. Hoehn (Acting) 

Human Capital 

R. Limon 

Civil Rights** 

L. Honnoll 

Information Technology 

Vacant 

Public Affairs 

A. Mack 

Research & Policy Development 

R. Grimm 

* Presidential Appointments 

† In accordance with the Inspector General Act, Section 3a 

** The director has independent authority to advise the CEO on pre-complaint and complain

issues. The CEO contributes to the director’s performance review. i

 Currently serving as Acting Inspector General of the U.S. Department of Education ii Currently on detail to U.S. Peace Corps iii Currently serving as Chief of Program Operations, with responsibility for Chief Operating

Officer functions 

Corporate Relations 

J. Williams 

Emergency 

Management 

C. Clay 

47 Field 

Offices

(serving all 

U.S. States and 

territories) 

Grants 

Oversight & 

Monitoring

A. Robinson 

  

* Presidential Appointments 

† In accordance with the Inspector General Act, Section 3a 

** The director has independent authority to advise the CEO on pre-complaint and complaint 

issues. The CEO contributes to the director’s performance review. i

 Currently serving as Acting Inspector General of the U.S. Department of Education ii Currently on detail to U.S. Peace Corps iii Currently serving as Chief of Program Operations, with responsibility for Chief Operating 

Officer functions 
8 Agency Overview FY 2008 CNCS Annual Financial Report
FY 2008 CNCS Annual Financial Report Agency Overview 9

Mission Performance Mission Performance

The Corporation is dedicated to providing opportunities for

Americans of all ages and backgrounds to serve their communities and country. Though data is not yet available for FY

2008, data from FY 2007 shows that the Corporation engaged

roughly 3.9 million people in service through the Senior

Corps, AmeriCorps, and Learn and Serve America programs -

representing over 228 million hours of service in FY 2007.

Nationwide, 60.8 million Americans volunteered through

organizations in FY 2007, including 2.7 million college students and 23.1 million Baby Boomers. These volunteers contributed an estimated 8.1 billion hours of service to their communities. Of particular note, volunteering among older

Americans (age 65 and older) is on the rise, having increased

almost seven percentage points between 1989 and 2007,

according to figures from the Current Population Survey, U.S.

Census Bureau.

In FY 2008, the Corporation continued its focus on the needs

of young Americans by providing a mentor to an estimated

604,000 children and youth through Corporation-sponsored

programs. Volunteers are vital to overcoming the nation's most

pressing challenges and the Corporation is committed to

improving the lives of children and youth in disadvantaged circumstances through service. The Corporation exceeded its FY

2007 target for the number of children and youth from disadvantaged circumstances serving their communities through the

Corporation programs, having connected 663,000 children and

youth to service opportunities.

At the other end of the spectrum, many older Americans are

finding it more and more difficult to live independently in

their own homes. In FY 2008, an estimated 489,000 clients

received independent living services-including direct support

and respite for informal caregivers-through Corporation-sponsored programs by harnessing the experience and compassion

of older volunteers.

Through its National Civilian Community Corps, the

Corporation has increased its work in disaster preparedness

and response. In partnership with nonprofit, faith-based and

education organizations, 1,120 NCCC members undertook

336 projects - 184 (55 percent) of which were directly related

to disaster response and support.

In November 2008, the Corporation released its latest and

most comprehensive installment of the Volunteering in

America research series. It can be found at

www.VolunteeringinAmerica.gov, the agency's new interactive

website. This new research provides volunteering information

for all 50 states and 162 cities across the nation.

3

Most FY 2008 data will not be available until January 2009 due to

grantee reporting schedules. Where possible, estimated performance

for FY 2008 has been provided.

Mobilize More Volunteers

Building homes with volunteers is hard work. Training volunteers, managing deliveries,

working with homeowners, and ensuring quality construction is a complex set of

tasks. To help achieve its mission of building more homes for families in need, Habitat

for Humanity has a longstanding partnership with AmeriCorps. In 2005 alone, 681

AmeriCorps members, serving in more than 200 Habitat for Humanity affiliates,

recruited and managed more than 206,000 community volunteers to build 1,829

homes, housing more than 7,600 family members. They also generated more than $4

million in grants and in-kind donations

LEVERAGING VOLUNTEERS TO BUILD

HABITAT FOR HUMANITY HOMES
10 Agency Overview FY 2008 CNCS Annual Financial Report

The Corporation sets a strategic initiative national target (National Measures). Achieving this

national target requires a combination of the Corporation's actions and the efforts by the

Corporation's partners, many outside organizations, and America's citizens. The Corporation's

contribution to the national target is reflected in the Corporation's targets (Corporation

Measures).

In turn, each program develops one or more measures (Program Measures) to identify and manage its contribution to the overall Corporation impact. To successfully meet the established program measures, each program develops an operating plan (Operating Plans) that includes strategies to achieve the program measure targets. These operational requirements are included in

each manager's and staff's performance plan (Individual Performance Plans). The result of this

planning and measurement process is a focused effort by the Corporation to meet its established

goals.

THE CORPORATION’S PERFORMANCE MANAGEMENT SYSTEM

The Corporation works to "operationalize" its Strategic Plan at all levels of the organization. The illustration

below shows how the Corporation plans, measures, manages, and reports on its performance.

Figure 3. Pyramid illustrating the Corporation’s performance planning, measurement, management, and reporting
FY 2008 CNCS Annual Financial Report Agency Overview 11

Table 2. Performance trends for national goalsi

Strategic Initiative and Performance Measure 

FY 2005 

ACTUAL

FY 2006 

ACTUAL

FY 2007 

TARGET 

FY 2007 

ACTUAL

FY 2008 

TARGET 

FY 2008 

ACTUAL

FY 2009 

TARGET 

FY 2010 

TARGET 

Mobilize More Volunteers

Number of Americans volunteering annually through 

an organization (in millions)ii 65.4 61.2 69.6 60.8 71.3 

Avail.

2/09 73.5 75.0 

Number of Americans regularly volunteering (in 

millions)iii 31.8 30.9 36.5 32.1 39.2 

Avail.

9/09 41.0 43.0 

Ensure a Brighter Future for All of America's Youth 

Number of Americans who mentor each year (in 

millions)iv NAv

 2.02 NA 2.15 NA 

Avail.

9/09 2.20 2.22 

Number of children and youth of incarcerated parents 

mentored through federal programsv 16,000 30,200 36,000 93,400 (est.) 40,000 

Avail.

1/09 96,400 97,300 

Number of teens from disadvantaged circumstances 

engaged in service in their communities (in million)vi NA 2.6 2.7 NA 2.8 

Avail.

10/09 2.9 3.0 

Engage Students in Communities

Number of college students who volunteers (in 

millions) 3.3 2.8 4.0 2.7 4.3 

Avail.

9/09 4.7 5.0 

Percent of Federal Work Study funds devoted to 

community servicevii 15.8% 14.8% 17.5% 15.0% 18.2% 

Avail.

11/08 18.9% 20.0% 

Percent of America's public kindergarten through 

grade 12 schools that have incorporated servicelearning into their curriculaviii NA NA 41% Avail. 5/09 44% NA 47% 50% 

Harness Baby Boomers' Experience

Number of Baby Boomers volunteering (in millions) 25.8 23.6 26.4 23.1 27.1 

Avail.

9/09 27.8 28.7 

Support Disaster Preparedness and Responseix Measure under development 

Table 2 Notes: 

i. NA = Data not available. In September 2008, the Corporation’s Board of Directors, following a careful review of the data, adjusted several measures to more accurately 

reflect the data measured through the Census and the Corporation’s programs. Therefore, numbers reflected in this document will be different (as identified by footnotes) 

than figures reported previously in the Congressional Budget Justification and Annual Financial Reports. For more information on any of the Corporation's measures, please 

contact the Office of the Chief Financial Officer on 202-606-5000. 

ii. Data for this measure is available through the "Current Population Survey: Supplement on Volunteering" available at www.bls.gov/new.release/volun.toc.htm

iii. Defined as those volunteering at any level of intensity (e.g. 1 + hours per week) for 12+ weeks during the year. 

iv. In prior years, the Corporation planned to measure the "Number of Americans who mentor each year (in millions)." Data is not available for this measure as currently 

written; therefore, the wording of the measure has been modified in the following way to reflect the "Number of mentors serving a minimum of 36 hours each year (about 

one hour per school week)." 

v. Data provided by the Department of Health and Human Services for programs in that agency, the Department of Justice, the Corporation and other federal agencies. 

Historical data revised for accuracy. 

vi. The description of this measure has been modified to more closely reflect the data collected through the 2005 Youth Volunteering and Civic Engagement Survey, 

conducted by the Corporation, in collaboration with the U.S. Census Bureau and Independent Sector. This data represents the responses of youth aged 12-18 who met the 

family income 2005 federal poverty guidelines, as set by the Department of Health and Human Services (see: www.aspe.hhs.gov/poverty/05poverty/shtml). The prior 

description read: "Number of children and youth..." 

vii. Historical data revised by the US Department of Education. 

viii. In FY 2008, the Corporation implemented a national survey to assess the prevalence of service and service-learning in the nation's kindergarten through grade 12 public 

schools. The survey will be repeated every three years. Data for FY 2008 is expected to be available by May 2009. 

ix. No adequate national measure has yet been identified or developed. The Corporation is continuing to seek an adequate measure of national performance related to 

Disaster Preparedness and Response. 

PERFORMANCE TRENDS FOR NATIONAL GOALS
12 Agency Overview FY 2008 CNCS Annual Financial Report

Table 3. Performance trends for Corporation goalsi

Strategic Initiative and Performance Measure 

FY 2005 

ACTUAL

FY 2006 

ACTUAL

FY 2007 

TARGET

FY 2007 

ACTUAL

FY 2008 

TARGET

FY 2008 

ACTUAL

FY 2009 

TARGET

FY 2010 

TARGET

Mobilize More Volunteers 

Number of volunteers supported by Corporationsponsored programs (including Corporations program 

members, participants, volunteers, and leveraged 

community volunteers)ii 3.4 3.7 3.4 3.9 3.6 Avail. 1/09 3.6 4.0 

Percent of former AmeriCorps member who continue 

to volunteer in their communities after their term of 

serviceiii NA NA NA 64% NA NA 69% 67% 

Ensure a Brighter Future for All of America's Youth

Number of children and youth from disadvantaged 

circumstances mentored through Corporation 

programsiv,v NA NA NA 598,000 450,000 Avail. 1/09 606,000 608,000 

Number of children of prisoner mentored through 

Corporation programs 12,500 26,000 NA 47,000 20,000 Avail. 1/09 48,000 49,000 

Number of children and youth from disadvantaged 

circumstances serving their communities through 

Corporation-sponsored programsiv 480,000 465,000 486,000 663,000 500,000 Avail. 1/09 550,000 606,000 

Engage Students in Communities

Number of college students serving through 

Corporation programs NA 108,000 NA 199,000 80,000 Avail. 1/09 190,000 300,000 

Number of higher education institutions matching the 

AmeriCorps Education Award 40 57 60 76 67 

Avail.

12/08 74 80 

Percentage of organization funded through Learn and 

Serve America grant programs that have adopted at 

least six of nine institutional supports leading to 

sustainability for service-learningvi 27.4% 26.8% 28.0% 27.0% 58.0% Avail. 8/09 30.0% 31.0% 

Harness Baby Boomers' Experience

Number of Baby Boomer volunteers generated through 

Corporation-sponsored programsvii NA NA NA 230,000 400,000 Avail. 1/09 450,000 500,000 

Number of clients who receive independent living 

services, including direct support and respite for 

informal caregivers through Corporation-sponsored 

programsviii 408,000 413,000 NA 470,000 190,000 Avail. 1/09 498,000 509,000 

Support Disaster Preparedness and Responseix 

Number of Corporation program participants who have 

been certified in disaster-related training (in thousands) NA NA NA NA NA NA NA TBD 

Number of Corporation program participants who are 

available for deployment in support of local, state or 

other disaster response. NA NA NA NA NA NA NA TBD 

Number of community members who receive disaster 

preparedness information or training through 

Corporation sponsored programs. NA NA NA NA NA NA NA TBD 

PERFORMANCE TRENDS FOR CORPORATION GOALS
FY 2008 CNCS Annual Financial Report Agency Overview 13

 Table 3 Notes: 

i. NA = Data not available. In September 2008, the Corporation’s Board of Directors, following a careful review of the data, adjusted several measures to more 

accurately reflect the data measured through the Census and the Corporation’s programs. Therefore, numbers reflected in this document will be different (as 

identified by footnotes) than figures reported previously in the Congressional Budget Justification and Annual Financial Reports. For more information on any of 

the Corporation's measures, please contact the Office of the Chief Financial Officer on 202-606-5000. 

ii. Data for component measures (e.g., number of community volunteers, number of stipend volunteers, number of direct program participants) continues to be 

monitored and included in various agency publications. 

iii. The data source for this measure was changed to the AmeriCorps Longitudinal survey in order to provide consistently comparable data from year-to-year, 

thus resulting in data not being available for a number of prior years and changes to the outyear targets. 

iv. The definition of disadvantaged children and youth receiving Corporation mentoring services or participating in Corporation-sponsored program is based on 

program statutes and regulations. This group includes those up to age 25 with exceptional and special needs (as defined in part 2552.81 of the DVSA 

regulations) or who are economically disadvantaged and for whom one or more of the following apply: 1) out-of-school, including out-of-school youth who are 

unemployed; 2) in or aging out of foster care; 3) limited English proficiency ; 4) homeless or have run away from home; 5) at-risk to leave school without a 

diploma, and/or 6) former juvenile offenders or youths at risk of delinquency. The referenced DVSA regulation includes "children with exceptional needs" who 

are defined as developmentally disabled, such as those who are autistic, have cerebral palsy or epilepsy, are visually impaired, are emotionally disturbed or have 

a language disorder, specific learning disability, have multiple disabilities, other significant health impairment or have literacy needs. Under this DVSA 

regulation, existence of a child's exceptional need is verified by an appropriate professional, such as a physician, psychiatrist, psychologist, registered nurse or 

licensed practical nurse, speech therapist or educator. "Children with special needs" is defined as those who are abused or neglected, in need of foster care, 

adjudicated youth, homeless youths, teen-age parents and children in need of protective intervention in their homes. 

v. Previously reported data for FY 2006 (361,000) represented only those receiving such services through the Learn and Serve America and Foster Grandparents 

programs. Data for FY 2007 reflects mentoring provided through all Corporation program. Thus, FY 2007 data represents the agency's baseline performance 

level.

vi. This measure was established during the FY 2007 PART review of the Learn and Serve America program and was established as a Corporation measure by 

the agency's Board in FY 2007. 

vii. Data not available prior to FY 2007. 

viii. Data for all years were revised to reflect the activities of the SCP, RSVP and State & National programs. Prior year data for State and National programs is 

not available; the program contributed 54,000 to the FY 2007 total. Data for VISTA will be available for FY 2008. 

ix. No adequate national measure has yet been identified or developed. The Corporation is continuing to seek an adequate measure of national performance 

related to Disaster Preparedness and Response. 
14 Agency Overview FY 2008 CNCS Annual Financial Report

PERFORMANCE ANALYSIS

In FY 2008, the Corporation built upon the successes achieved

in the prior year. Nearly all agency programs include a focus

on volunteer recruitment, management and retention. There

were further improvements in program grant criteria as well as

training and technical assistance to staff and agency partners.

The Corporation launched new public service announcements

and expanded its use of social networks to engage more volunteers in service and to highlight the challenges faced by the

many Americans who live in poverty.

The Corporation continued its volunteer recognition incentives, such as the Presidential Volunteer Service Awards and

the Higher Education Honor Role. The Martin Luther King,

Jr. Day of Service has been expanded in both breadth and

depth, with a focus on leveraging King Day as the start of a

year of volunteering. A Billion and Change, a corporate probono volunteering initiative, was launched with more than

$406 million in commitments made within the first seven

months. Finally, the agency partnered with volunteering and

mentoring organizations throughout the nation to leverage its

efforts. Such partners include Boys and Girls Clubs, 4-H,

America's Promise Alliance, Communities in Schools, the

Harvard Mentoring Project, MENTOR, the Points of Light

Institute, and many more.

The Corporation's performance also reflects its attention to

continued improvements in the areas identified through the

Program Assessment Rating Tool (PART) process conducted

by OMB. In FY 2007, the latest year for which data is available, half of the agency programs assessed were rated as "adequate" and the agency intends to raise its scores over the next

few years, through greater focus on performance and program

evaluations. The agency will continue to conduct studies that

lead to a more comprehensive understanding of community

volunteering and national service as well as improved program

measurement and outcomes.

In prior years, the Corporation's performance has been greater

than anticipated for a number of measures. This reflects the

agency's ongoing commitment to fully implement its strategic

initiatives and led the Corporation to significantly increase its

FY 2009 and FY 2010 targets for the following measures:

» Number of children and youth from disadvantaged circumstances mentored through Corporation programs;

» Number of children of prisoners mentored through

Corporation programs; and,

» Number of clients who receive independent living services, including direct support and respite for informal

care providers, through Corporation programs.

Data will not be available from the U.S. Census for the

Corporation's FY 2008 national performance until February

and September 2009. However, data from FY 2007 shows that

the Corporation did not met most of its performance targets

for national measures. The agency is working hard to improve

the tracking of these measures and set better benchmarks for

success based on program and funding resources. As the

Corporation continues to research the trends and factors

affecting national performance, the agency anticipates developing methods to influence national volunteer levels at a greater

level.

More information on the Corporation's efforts and challenges

in addressing each strategic initiative at the Corporation and

national levels is available by contacting the Office of the

Chief Executive Officer on 202-606-5000. For more information about the agency's PART reviews, visit: www.whitehouse.gov/omb/expectmore/index.html. Information on the

Corporation's evaluations and research is available at:

www.nationalservice.gov/about/role_impact/performance_research.asp.

FY 2007 Corporation

10%

30%

60%

FY 2007 National

56% 33%

11%

Met or exceeded

No data available

or target set

Not met

Figure 4. Corporation and national performance measures
FY 2008 CNCS Annual Financial Report Agency Overview 15

PERFORMANCE MANAGEMENT

The Corporation will continue to:

» Expand its partnerships with other organizations;

» Lead a national effort to engage Americans of all ages,

skills, and abilities in service;

» Identify the most effective ways to influence the national goals; and

» Improve program and management effectiveness.

More detailed information about the Corporation's plans to

achieve its strategic goals will be included in the FY 2010

Annual Performance Report. This document will be available

via the web at: www.nationalservice.gov/about/budget/

index.asp in February 2009.

MODIFIED OR DISCONTINUED AGENCY

PERFORMANCE MEASURES

The Corporation's and its Board of Directors' FY 2008 annual

review of the strategic plan resulted in no major changes to the

agency's strategic goals or performance measures. In several

cases, however, the Corporation improved its data collection

over prior years to include the contributions of all its programs

and to make the data source consistent across all years. These

changes are reflected in the performance tables and discussion

above, and, in some cases, resulted in increases in the corresponding performance targets. In addition, the agency made

one minor change to the wording of one measure and replaced

one measure as follows:

Modified:

The measure, "Number of teens (ages 12-18) from disadvantaged circumstances engaged in service to their communities,"

was modified from the prior measure language (i.e. "Number

of children and youth...") to clarify that the data did not

include children under the age of 12. No data is available to

provide information on the number of children under age 12

from disadvantaged circumstances that volunteer.

Discontinued:

The measure, "Number of Americans who mentor each year,"

was replaced with a measure of only those mentors serving a

minimum of 36 hours annually-the equivalent of about one

hour per school week. Performance against the prior measure

is reported below.

Table 4. Modified or Discontinued Agency Performance Measures

FY 2005 

Actual 

FY 2006 

Actual 

FY 2007 

Target 

FY 2007 

Actual 

FY 2008 

Target 

FY 2008 

Actual 

FY 2009 

Target 

FY 2010 

Target 

Number of 

Americans who 

mentor each year (in 

millions) 

NA 3.4 3.8 3.9 4.5 NA 5.2 6.0 
16 Agency Overview FY 2008 CNCS Annual Financial Report
FY 2008 CNCS Annual Financial Report Agency Overview 17

Management Performance Management Performance

The Corporation's management goal is to create a culture of

performance focused on achieving the agency's mission.

Efforts to achieve and sustain a high level of performance are

concentrated in four areas:

» Improve program and project quality;

» Cultivate a culture of performance and accountability;

» Deliver exemplary customer service; and

» Build a diverse, energized, and high-performing workforce.

In FY 2008, the Corporation implemented many management

enhancements, a number of which are noted below. These

changes helped to improve the agency's focus on management

objectives and measures, leading to greater efficiency, effectiveness and accountability.

The Corporation's financial performance was outstanding in

FY 2008. The agency received an unqualified financial statement audit opinion for the ninth consecutive year. In a selfassessment, the Corporation also exceeded the average percentage of "green" results on the Government-wide Financial

Management Metrics achieved by the 24 major CFO Act

agencies by 17 percentage points.

FY 2008 data for the remaining agency management performance measures is not currently available. Data for the measures

related to the American Customer Satisfaction Index and the

Human Capital Survey sponsored by the Office of Personnel

Management will not be available until January 2009. Data

for the grantees' performance against their own program/project metrics also will not be available until later in FY 2009.

Data for these measures is expected to demonstrate high levels

of performance resulting from the Corporation's ongoing

efforts to improve its operations.

The Corporation is in the process of resolving information

technology infrastructure deficiencies that caused significant

interruptions of the Corporation's operations in FY 2008. The

has already upgraded the underlying system software and

increases in hardware capacity and is establishing a stable, core

information technology structure on which further online efficiencies can be achieved in FY 2009. The problems experienced may adversely affect the agency's information technology-related customer satisfaction scores.

Figure 4. Management performance measures

17% 17%

67%

Met or

exceeded

No data

available or

target set

Not met

Ensure a Brighter Future for all of America’s Youth

Students from Mesa Community College in Arizona serve as AmeriCorps members at

Mesa Arts Academy, a school where 79 percent of the students between kindergarten and

8th grade live in poverty. Seven years ago, just nine percent of 8th grade students passed

Arizona’s annual math assessment tests. With Mesa Community College students serving

as tutors and mentors at the school, test scores have risen dramatically. In fact, this year 100

percent of the 8th graders passed the math assessment.

PEER MENTORING IN ARIZONA
Engage Students in Communities

Fifteen school districts in 11 northeastern and central Florida counties participate in the decadeold service-learning program sponsored by the St. Johns River Water Management District. The

water management district acquires tracts of land to protect the St. Johns River Watershed, then

links local schools with nearby land, encouraging schools to use the property as living laboratories

for a variety of disciplines. The water management district staff offers its expertise on such topics

as forestry and insect life. Students assist in developing and managing the land’s recreational use.

They have designed trail systems, cleared trails, posted signs, and developed interpretive materials.

Through the service-learning project, students develop a variety of skills, the ability to function as

a team, and an understanding of how to make a difference, while the communities benefit from

enhanced recreational options and a growing number of active, involved citizens.

LEARNING TO PROTECT WETLANDS

18 Agency Overview FY 2008 CNCS Annual Financial Report

IMPROVE PROGRAM AND PROJECT QUALITY

The Corporation continued to improve the quality and effectiveness of its programs and projects by:

» Expanding the agency's focus on performance management throughout the year, including regular reviews of

progress against plans, both within the agency and for

its grantees; and

» Expanding the use of standardized performance measures for grantees.

» Developing a better understanding of volunteering

behavior at the local level through strong research.

Moreover, the agency completed several studies that will

improve understanding of the trends and influences in national

volunteering. For example, the agency completed its latest

study on "Volunteering in America: 2008 State and City

Trends and Rankings,"4 in July 2008. The report is the most

comprehensive collection of information on volunteering and

national service in the U.S. ever assembled and includes a

wealth of information on trends and demographics in volunteering and national service by region, state, and for 162 cities

across the nation.

Research from the report highlight the following:

» Volunteer intensity is increasing. Today, over a third of

volunteers (34 percent) serve intensively, volunteering

100 or more hours in a year. The number of volunteers

donating more than 100 hours annually increased in

2007. In fact, the number of "intensive volunteers"

increased by over 373,000 in 2007 - the first increase in

this statistic since 2004.

» Since 1989, data consistently show that religious organizations remain the most popular organizations through

which volunteers serve, followed closely in recent years

by educational or youth service organizations.

» Approximately 19.1 million adults signed up to volunteer again or for the first time with an organization in

2007. However, volunteer retention remains a significant

issue. More than one out of every three volunteers (21.7

million) who served in 2006 did not volunteer in 2007.

Research shows that the more time a person spends volunteering, the more likely he/she is to continue serving

in the future.

With this and additional understanding from ongoing

research, the agency will be able to identify more effective ways

to influence the success of its programs and grantees, as well as

increase national volunteering and tangibly improve the lives of

more Americans.

4

This research is available on the web at: www.VolunteeringinAmerica.gov
FY 2008 CNCS Annual Financial Report Agency Overview 19

Table 5. Performance trends for management goals

Performance Objective and Measure 

FY 2005 

ACTUAL

FY 2006 

ACTUAL

FY 2007 

TARGET 

FY 2007 

ACTUAL

FY 2008 

TARGET 

FY 2008 

ACTUAL

FY 2009 

TARGET 

FY 2010 

TARGET 

Improve program and project quality 

Percent of Corporation-funded 

grantees meeting or on track to meet 

program/project performance goalsi Data under development 

Cultivate a culture of performance and accountability

Number of material weaknesses (MW), 

significant deficiencies (SD) or 

reportable conditions (RC) identified 

in the annual financial statement auditii

 0 MW 

2 RC 

 0 MW 

1 RC 

0 MW 

0 SD 

 0 MW

 0 SD 

0 MW 

0 SD 

 0 MW 

1 SD 

0 MW 

0 SD 

0 MW 

0 SD 

Percentage of Government-wide 

financial management metrics where 

the Corporation is rated "green"iii 67% 56% 100% 62% 100% 63% 100% 100%

Deliver exemplary customer service

Overall Corporation score on the 

American Customer Satisfaction Index 

(100 point scale) 69 71 71 73 74 Avail 1/09 77 80

Overall score for satisfaction with the 

overall usability and effectiveness of 

the agency's major technology systems 

(100 point scale) 58 62 65 70 70 Avail 1/09 75 80

Build a diverse, energized, and high-performing workforce

Percent of employee who report 

overall satisfaction with their jobs NAiv 72% 74% 77% 76% Avail 1/09 78% 80%

Table 5 Notes: 

i. In FY 2004, the Corporation began implementing systems and grantee reporting guidance to enable the collection of data to calculate this measure. For 

example, requirements for grantees to identify and report on their performance against goals and measures established by the grantee were initiated in FY 

2004. Since most Corporation grants cover a three-year period, data for the percentage of all Corporation grantees that meet the program/project 

performance goals will not be available until FY 2009. 

ii. For the audit of the FY 2007 financial statements, government-wide "Yellow Book" guidance revised the definitions of material weakness, eliminated 

the reportable conditions category and introduced a new category, "significant deficiency." For more information on this change, see OMB Circular A123 at: www.whitehouse.gov/omb/circular/index.html. 

iii. Prior to May 2007, all agencies calculated their own results for these metrics using standardized methods on a monthly or quarterly basis, as specified 

by the CFO Council. In May 2007, the General Services Administration (GSA) began calculating the values for the three metrics related to credit card 

delinquencies. The Corporation has continued to calculate its metric scores monthly using The same calculations specified by the Council for all noncredit card delinquency metrics. Prior to 2007, values shown represent the value for the last month of the fiscal year. For FY 2007 and beyond, the value 

represents an average over the 12 months of the fiscal year. Also see "Accompanying Information: Government-wide Financial Management Metrics" 

available at www.nationalservice.gov/about/role_impact/performance.asp.

iv. NA = data not available. 
20 Agency Overview FY 2008 CNCS Annual Financial Report

CULTIVATE A CULTURE OF PERFORMANCE

AND ACCOUNTABILITY

As noted above, in FY 2008, the Corporation received its

ninth consecutive unqualified audit opinion. This reflects the

Corporation's sustained efforts to improve grants oversight,

strengthen internal controls, automate processes, and measure

key management indicators. The agency's financial statements, notes and audits are available in the Financial

Management section of this report, as well as on the web at:

www.cnsoig.gov/pdf/auditreportsfy08/08-01.pdf 

Nine Government-wide Financial Management Metrics were

designed by the U.S. CFO Council for monthly and quarterly

reporting by the 24 CFO Act agencies. The Corporation has

chosen to track all nine of those metrics on a monthly basis

and has been consistently higher than larger agencies. Further

improvement in these scores is expected in FY 2009 as a result

of enhancements to the financial systems components related

to processing credit card payments.

Across the entire agency, performance and accountability continued to be a major focus. Some of the actions taken in FY

2008 that resulted in improved performance and accountability

include:

» Increased the emphasis on Program Assessment and

Rating Tool (PART) findings as a component in the

budget development process;

» Further improved data collection efforts to ensure 

comparable reporting across all programs in a timely

manner, as well as more accurate reporting of national

measures;

» Improved the internal control process-a comprehensive

process that helped ensure the agency's operations met

legal requirements and funds were correctly expended;

» Fully implemented a new Emergency Management

Office, resulting in detailed plans and procedures to

respond to disasters quickly and appropriately, and the

management and coordination necessary for the agency's

prompt and effective response to multiple emergencies

across the nation; and,

» Upgraded the Performance Measurement Database

System to enable greater integration of performance into

the budget process, including the ability to calculate full

and marginal costs.

In spring 2008, Corporation programs made their most recent

updates in the PART. Some of these changes include:5

» Strengthening financial management practices in the

AmeriCorps State and National program and developing performance measures that quantify the benefits of

AmeriCorps projects to members and the communities

in which they serve;

» Completing an upgrade and enhancement to electronic

data systems that enable the AmeriCorps VISTA 

program to accurately establish baselines and measure

program performance;

» Awarding a contract for an in-depth program evaluation

of the AmeriCorps VISTA program, which will allow

the program to understand its effectiveness in helping

organizations develop and sustain anti-poverty 

programs; and

» Completing actions to ensure that all Learn and Serve

America grantees commit to the program's revised 

long-term and short-term goals through the grant 

application and approval process.

Full information on these and other improvement actions

related to the PART can be found at:

www.nationalservice.gov/about/role_impact/performance.asp and

www.whitehouse.gov/omb/expectmore/index.html.

DELIVER EXEMPLARY CUSTOMER SERVICE

In FY 2007, the latest year for which data are available to

measure the agency's success against this objective, the

Corporation's American Customer Satisfaction Survey scores

and the scores for each of its programs, for the first time,

exceeded the federal average for overall customer satisfaction.

In particular, the AmeriCorps State and National program

demonstrated a large increase-moving from a below-average

score of 57 in FY 2004 to an above-average score of 71 in FY

2007. These improvements reflect the Corporation's efforts to

reduce grantee reporting burden, as well as to streamline the

programs' grant competitions. The Corporation's scores for

FY 2008 for overall customer satisfaction are expected to rise

as a result of the agency's ongoing efforts to reduce grantee

and applicant reporting burden, and provide expanded training

and technical assistance both through in-person training and

web-based support.

The Corporation also increased its score on the effectiveness

and usability of the agency's technology by eight points in FY

2007, the latest year for which data is available. However, due

to the information technology challenges experienced in FY

2008, as discussed above, the Corporation anticipates a possible decline in this score for FY 2008. Nonetheless, the agency

made significant progress in implementing a range of technology improvements, including additional modules of the "My

AmeriCorps" web portal that, for example, now provides

AmeriCorps members with ready access to their education

award information.

5

Fall 2008 updates to the PART will not be completed until December

2008. Therefore, information from spring 2008 represents the latest

available data.
FY 2008 CNCS Annual Financial Report Agency Overview 21

In areas not directly measured by the American Customer

Satisfaction Survey, the Corporation also took steps to further

improve customer service. For example, in response to a 

congressional earmark, the agency established a new NCCC

campus in Vinton, Iowa to better serve the north-central

region of the country and completed plans for a new campus

in Vicksburg, Mississippi that will help serve those affected by

hurricanes in the Gulf region.

BUILD A DIVERSE, ENERGIZED AND

HIGH-PERFORMING WORKFORCE

Based on data from the Federal Human Capital Survey, the

Corporation achieved significant improvement in employee

satisfaction, from 68 percent reporting overall job satisfaction

in FY 2004 to 72 percent in FY 2006 and then 77 percent in

FY 2007-again, the latest year for which data is currently

available. The Corporation also was rated the third most

improved out of the 31 small federal agencies reviewed by the

Partnership for Public Service in its FY 2007 list. In FY

2008, the Corporation also:

» Targeted training on mission-critical competencies, as

well as performance evaluation, management and 

leadership;

» Renewed its Interchange Agreement based on a comprehensive audit conducted by the Office of Personnel

Management (This agreements helps to recruit and

retain talented staff by providing similar service status as

for employees in other federal agencies.);

» Fully updated the agency's human resources system,

including comprehensive documentation of all human

capital-related policies and procedures, to reflect the 

latest Union agreement and a number of modifications

implemented, but not documented, over the last seven

years;

» Completed a "360-degree" competency analysis of all

managers to improve their leadership and resultsoriented skills; and,

» Initiated an improved diversity policy and conducted a

series of diversity sessions for agency executives.
22 Agency Overview FY 2008 CNCS Annual Financial Report
Financial Management

★ ★ ★
24 Agency Overview FY 2008 CNCS Annual Financial Report
FY 2008 CNCS Annual Financial Report Agency Overview 25

Building on the Corporation's achievements in FY 2007, the agency continued to make 

significant improvements to its management processes. In FY 2008 we achieved our ninth 

consecutive unqualified audit opinion, no non compliance with laws and regulations, and only one

issue identified as significant in our internal control report which was resolved during the fiscal year.

The consistency of this accomplishment reflects our unwavering commitment to ensure full accountability,

including our ongoing focus on improving grants oversight, strengthening internal controls, automating 

systems, and measuring key management indicators.

Our accomplishments in FY 2008 include:

» Upgraded the financial system. The Corporation implemented upgrades to provide a fully web-based

system, resolve various user-reported problems, improve user interfaces, and incorporate an acquisitions

module that eliminates duplicate data entry, and provides more automated, effective and efficient 

acquisition management.

» Excellent performance on the Government-wide financial management metrics. In our self-assessment,

we exceeded the average percentage of "green" results on these metrics achieved by the 24 major CFO

Act agencies by 17 percentage points.

» Strengthened internal controls. We further strengthened our internal controls by expanding training to

42 staff - including division and office heads - and emphasizing the staff's responsibilities to fully

understand and implement all aspects of our internal control program.

» Improved program data collection. We further improved our program performance data by reducing

grantee reporting burden, expanding reporting against key standardized measures of progress toward

our strategic initiatives, and adding 14 OMB-approved output measures.

» Enhanced Performance Measurement Database System (PMDS). We expanded the functionality of

the PMDS to enable greater integration of performance into the budget process, including the ability to

calculate full and marginal costs.

As discussed in the results of the audit below, these accomplishments were achieved even though the

Corporation experienced system challenges in January 2008 when we concurrently rolled out two system

upgrades. Since identifying these cause of the problem, we worked diligently to resolve the issue and establish

a stable, core information technology structure on which further online efficiencies can be achieved in FY

2009. The audit report identifies the initial conditions contributing to this problem, in conjunction with the

testing and documentation of the Corporation's Continuity of Operations Plan (COOP), as a significant 

deficiency; however, it was not considered a material weakness.

Software upgrades to Corporation data bases resolved the system productivity problems and we are 

implementing the auditor's recommendations related to the COOP.

With the support of our extraordinarily dedicated staff, we will enable the incoming Administration to

achieve further management improvements and accomplish major changes to better serve Americans of all

ages and needs.

William Anderson

Deputy Chief Financial Officer

Message from the

DEPUTY CHIEF

FINANCIAL OFFICER

NOVEMBER 14, 2008
26 Agency Overview FY 2008 CNCS Annual Financial Report

Internal Control, Audit

Results, and Management Assurances

Internal Control, Audit

Results, and Management Assurances

The Corporation is subject to the reporting requirements of

the Government Corporation Control Act (31 U.S.C. 9101 et.

seq.). Under these requirements, the Corporation provides a

statement on its internal accounting and administrative controls consistent with the requirements of the Federal

Managers' Financial Integrity Act of 1982 (FMFIA), as

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

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

Management's Responsibility for Internal Control (revised

December 21, 2004). The statement reflects the Corporation's

assessment of whether there is reasonable assurance that internal controls are achieving the intended results, reports any

material weaknesses in internal controls present within the

agency, and describes management's current plans to address

and correct any deficiencies.

INTERNAL CONTROL ASSESSMENT

PROGRAM

During FY 2008, the Corporation continued to refine its

internal control assessment program, which is modeled on

OMB Circular A-123. These efforts included further developing the internal control organizational structure and monitoring of internal controls initiated during previous fiscal years.

The Corporation's internal control program is led by a Senior

Assessment Team of key financial and program management

executives and is staffed by the Internal Control and Analysis

Team (IC&A) within the Department of the Chief Financial

Officer. The Senior Assessment Team approves the internal

control improvement program and oversees the maintenance

and quarterly review of IC&A activities.

The risk-based approach being developed at the Corporation

gives priority for internal control reviews, including testing, to

specific organizational and functional areas where significant

risks are known to exist. For example, the Corporation's

Accounting and Grants Management Offices, Field Financial

Management Center, Offices of Human Capital and of

Procurement Services, and the Budget and Executive Offices,

and the Office of Information Technology are all considered as

high priority when developing the annual internal control testing plan. The Corporation also continued to improve its

grantees oversight and monitoring program using a similar

risk-based approach.

BASIS OF FY 2008 ASSESSMENT

The Corporation's assessment of internal control is based on

internal control reviews and other analysis of Corporation

operations, programs, and grantees including the following:

» Review of manager responses on the internal control

risk assessment tool for selected Corporation units;

» Office of Inspector General (OIG) reports, including

the annual financial statement audit and recent audits of

portions of the Corporation's operations;

» In-Progress Reviews (IPR) at NCCC campuses - the

IPR is a focused management control assessment that

provides for a self-assessment by campus staff, followed

by an independent review by headquarters staff. Review

items include project management, Corps member management, and fiscal controls. Following the on-site

review, a written report is prepared and campus staff

develops corrective action plans in response to IPR recommendations; and

» Comprehensive risk-based assessments and randomsample internal control testing of selected portions of

Corporation program and administrative operations

In addition, management's knowledge of the Corporation's

day-to-day operations helps the agency to ensure that adequate

controls are in place for all of the agency's operations. These

controls include the announcement of funds availability for

grants, the receipt and evaluation of applications for financial

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

and cooperative agreements. Risk assessment decisions regarding FY 2008 control testing were heavily weighted by the dollar volume of grant programs and findings associated with the

FY 2007 financial statement audit report and related management letter. The areas for which the agency performed comprehensive random-sample testing of internal controls included

the following:

» Grant Risk Assessments jointly performed by program

officers and grants officers;

» Grant Monitoring Activities, including on-site visits;

and

» Testing of Unprocessed Momentum Form Clearance,

Payment Voucher Transactions, Travel Voucher

Transactions, Cost-share Reimbursable Bill Transactions
FY 2008 CNCS Annual Financial Report Agency Overview 27

and Credit Card Payment Transactions at the

Accounting Office and the Field Financial Management

Center.

The testing identified opportunities to fine tune processes,

improve efficiency, and diminish the likelihood of potential

errors. No area of material weakness or significant deficiency

was identified in any of the internal controls tested.

Finally, for the first time in connection with the FY 2008

Internal Control Assessment, each of 23 assessable units were

required to prepare a separate statement of assurance declaring

the level of assurance that each of these office heads is able to

provide.

ANNUAL FINANCIAL AUDIT RESULTS

FY 2008 marks the ninth consecutive year the Corporation has

earned an unqualified opinion on its financial statements and

had no reported instance of noncompliance with laws and regulations. These results reflect the Corporation's commitment

to sound financial management and the hard work by staff

over the past year to improve operations.

In late January 2008, the Corporation rolled out an improved

version of the AmeriCorps member portal and concurrently

upgraded our core financial system. As a result of these

upgrades, the Corporation experienced a significant challenge

in our internal IT system environment necessitating alternating the availability of the eSPAN/eGrants system between

internal staff and external users during February and March of

2008. The Corporation took immediate action to identify and

correct the source of the problem and instituted additional

short- and long-term remedial actions including:

» Successfully upgraded our application servers and software from the outdated Oracle 9i software to the 10g

standard;

» Stabilized the My AmeriCorps portal;

» Re-negotiated the plan around Phase 3 of the Member

Portal to meet the 10g standard and new timetable; and

» Developed a comprehensive plan following OMB's 7

step process to outsource the Corporation's technology

infrastructure over the next year to an externally hosted,

managed services environment.

The FY 2008 audit report identifies the initial conditions contributing to this problem, in conjunction with the testing and

documentation of the Corporation's Continuity of Operations

Plan (COOP), as a significant deficiency; however, it was not

considered a material weakness. Software upgrades to

Corporation data bases resolved the system problems and we

are implementing the auditor's recommendations related to the

COOP.

While processing productivity was reduced during this period,

at all times our general ledger system continued to process

required transactions, all internal controls over the

Corporation's applications and system access remained operational, and there is no record of any financial adjustments

necessitated by the system challenges. The Corporation will

continue to proactively work with the Office of Inspector

General to identify areas for improvement.

MANAGEMENT ASSURANCES

Statement of Assurance for Financial Management Systems,

Operations, and Compliance with Laws and Regulations

The Corporation is responsible for establishing and maintaining effective internal control and financial management systems that meet the objectives of the Federal Financial

Management Improvement Act (FFMIA). The Corporation

conducted its assessment of internal control over the effectiveness and efficiency of operations and compliance with applicable laws and regulations in accordance with OMB Circular A123. Based on the results of this evaluation, the Corporation

provides reasonable assurance that its internal control over the

effectiveness and efficiency of operations and compliance with

applicable laws and regulations as of September 30, 2008, was

operating effectively and no material weaknesses were found in

the design or operation of the internal controls.

Support Disaster Preparedness and Response

AmeriCorps NCCC has been an essential recovery partner to St. Bernard Parish,

Louisiana, after Hurricane Katrina damaged virtually every structure in the parish. NCCC

teams were among the first volunteers to begin mucking out houses that had been submerged by the storm surge, eventually mucking out 4,000 homes. However, Parish officials

subsequently assigned the teams the task of coordinating the mucking operations for the

entire St. Bernard Parish Recovery Effort. Two years after the hurricane, NCCC teams are

providing the organizational leadership that makes it possible for episodic volunteers to

make meaningful and substantive contributions.

FACING A HURRICANE’S WRATH
28 Agency Overview FY 2008 CNCS Annual Financial Report

Statement of Assurance for Internal Control over 

Financial Reporting

In addition, the Corporation conducted its assessment of the

effectiveness of internal controls over financial reporting,

which includes safeguarding of assets and compliance with

applicable laws and regulations, in accordance with the

requirements of Appendix A to OMB Circular A-123. Based

on the results of this evaluation, the Corporation provides reasonable assurance that its internal control over financial reporting as of June 30, 2008, was operating effectively and no material weaknesses were found in the design or operation of the

internal control over financial reporting.

Compliance with Financial Systems Requirements, Accounting

Standards and U.S. Standard General Ledger

The FFMIA requires federal agencies to implement and maintain financial management systems that are in substantial compliance with federal financial system requirements, federal

accounting standards issued by the Federal Accounting

Standards Advisory Board, and implementation of the

Department of the Treasury Standard General Ledger

(USSGL) at the transaction level. Pursuant with FFMIA,

OMB issued Circular A-127, Financial Management Systems.

Circular A-127 prescribes the policies and standards for agencies to follow in developing, operating, evaluating, and reporting on financial management systems.

The Corporation utilizes Momentum Financials as its core

financial system. This is a commercial off-the-shelf software

application certified by the Office of Federal Financial

Management as meeting the Circular A-127 financial system

requirements. Activity is posted in Momentum following the

USSGL at the transaction level.

Based on the Corporation's review of the auditors' report and

other relevant information, the agency determined that the

Corporation complies substantially with the requirements of

the FFMIA for FY 2008.

David Eisner 

Chief Executive Officer 

William Anderson

Deputy Chief Financial Officer
Agency Overview

The Improper Payments Information Act (IPIA-P.L. 107-

300) requires Federal agencies to identify and report on significant payment programs that are susceptible to erroneous payments. The Act defines significant erroneous payments as

those within a single payment program that exceed both 2.5

percent of that program's annual amounts paid and $10 million annually. The Corporation reviewed its operations identifying 12 payment programs, and assessed each to determine

which, if any, were susceptible to significant erroneous payments. Eight of the 12 programs make total annual payments

that exceed $10 million each. For any of the eight programs

under which total payments exceed $10 million, preliminary

error rates exceeding the 2.5 percent threshold would have to

be subsequently confirmed through a statistical sampling

process to designate a payment program as a significant payment program susceptible to erroneous payments.

The two largest Corporation payment programs are the

Domestic Volunteer Service Act; and National and

Community Service Act grant programs. Together the annual

payments for these programs account for about 64 percent of

all Corporation payment amounts. As grant programs, these

payments are administered by the Department of Health and

Human Services' Payment Management System. There are

numerous internal and external controls making erroneous

payments highly unlikely. For example, awards go through

many levels of review and approval before obligations are created and transmitted to the Payment Management System.

These payments are all requested by authorized grantees, and

then they are validated and disbursed by Health and Human

Services. Moreover, the receipt and use of grant funds by

grantees are monitored by the Corporation and in many cases

are subject to independent audits under the Single Audit Act

and OMB Circular A-133, Audits of States, Local

Governments and Non-Profit Organizations.

Based on the results of the FY 2008 IPIA review, there were

no significant payment programs susceptible to erroneous payments. However, even though the Corporation concluded its

programs are not susceptible to erroneous payments as defined

under the Act, most non-grant payments are reviewed as part

of the OMB Circular A-123 Internal Control Assessment

Program discussed above.

Improper Payments Improper Payments

FY 2008 CNCS Annual Financial Report 29
30 Agency Overview FY 2008 CNCS Annual Financial Report

Financial Management Metrics Financial Management Metrics

Although the Corporation is not an agency included under the

CFO Act, the agency measures itself against the same United

States Chief Financial Council's Council Government-wide

Financial Management Metrics as are required for CFO Act

agencies. From September 2004 through February 2005, the

Corporation achieved "green" on only one out of nine (11 percent) of these metrics. A great deal of effort was devoted to

improving performance on these metrics. For FY 2008, the

yearly average of "green" scores was 63 percent. Comparable

average scores for FY 2005, FY 2006 and FY 2007 are 43 percent, 48 percent and 62 percent, respectively. However, for

consistency with the government-wide methodology, these

scores are based on the end-of-the-year month for each prior

year (FY 2005, FY 2006 and FY 2007 scores, 78 percent, 56

percent and 44 percent respectively). In FY 2008, the

Corporation exceeded the average for the CFO Act agencies

by 17 percentage points. While these performance levels have

been relatively stable, the Corporation has implemented a

number of improved processes. The Corporation is directly

addressing the causes of its ratings on specific metrics. While

the scores have improved from FY 2007 to FY 2008, we expect

further improvements in FY 2009 due to stronger controls

being implemented.

Performance in each of the individual metrics during FY 2008

is shown in the accompanying chart:

» Fund Balance with Treasury (FBWT) has been at fullysuccessful "green" levels for ten of twelve months. The

two months where Fund Balance with Treasury did not

meet the fully-successful "green" level are due to timing

differences occurring during the Corporation's system

upgrade. Suspense Account Clearance and Accounts

Receivable Delinquency have been at fully-successful

"green" levels for the entire year.

» The Percent of Vendor Payments by Electronic Funds

Transfer (EFT) maintained its "green" performance levels for all twelve months.

» Percent of Vendor Payments Made on Time improved

significantly as the year progressed. Overall, there were

four months at "green" levels, one month at "yellow"

and seven months at "red".

"" Late Payment Penalties Paid as a Percent of Total

Vendor Payments showed improvement in Fiscal Year

2008. This metric was "green" for eight months and

"red" for four months. As a note, the Late Payment

Penalties metric is sensitive to the dollar amount of late

payments.

» The last three metrics relate to credit card delinquency.

During FY 2008, Individually Billed Account (IBA)

Travel Delinquency was at a "green" level for two

months, "yellow" for three months and "red" for seven

months. IBA accounts are paid directly by the employees who travel, and achieving "green" on this metric

requires Corporation travelers to keep their delinquencies below two percent. Centrally Billed Travel

Delinquency was at a "green" level for seven months,

"yellow" level for four month and "red" level for one

month in FY 2008. Purchase Card delinquency was at a

"green" level for one month, "yellow" for one month and

"red" level for ten months in FY 2008. A change to the

credit card vendor in FY 2009 will lead to a more

sophisticated systems approach to tracking payments

resulting in more control and allowing more payments

to be made on time.
FY 2008 CNCS Annual Financial Report Agency Overview 31



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METRIC Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep 
32 Agency Overview FY 2008 CNCS Annual Financial Report

Analysis of Appropriations 

and Financial Condition

Analysis of Appropriations 

and Financial Condition

COMPOSITION OF CORPORATION ASSETS

The Corporation's primary assets are Fund Balance with

Treasury, Trust Investments and Related Receivables, and

Advances to Others. The Fund Balance with Treasury represents

annual, multi-year, and no-year funds that are available to pay

current and future obligations and expenditures. Fund Balance

with Treasury in/decreased by about $43.5 million, from $886.5

million at September 30, 2007, to $823.0 million at September

30, 2008. The decrease in the Fund Balance with Treasury is due

primarily to new appropriations received being less/more than

that expended for operating activities.

Trust Investments, which are maintained in the National Service

Trust, are restricted for use in paying education awards, student

loan interest forbearance, and Presidential Freedom Scholarships

to eligible participants, and are not available for use in the current operations of the Corporation. Trust Investments and

Related Receivables showed a de/increase of $17 million related

to improved interest earnings during the year. Because of lower

interest rates forecast over the next 12-18 months, interest earnings on Trust investments can be expected to fall in 2008.

Advances to Others primarily 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

slightly, by $2.6 million, from $62 million at September 30,

2007, to $59.4 million at September 30, 2008. This small

change reflects a similar level of drawdown activity to what

occurred in the prior fiscal year.

COMPOSITION OF CORPORATION LIABILITIES

The Corporation's 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. The Trust also pays forbearance interest on qualified student loans during the period members perform community service. The Trust Service Award Liability components related to

education awards and interest forbearance were adjusted, based

on historical experience, to reflect the fact that some eligible participants may not use these benefits. The Trust Service Award

Liability increased by about $22.8 million, from $280.6 million

at September 30, 2007, to $303.4 million at September 30, 2008.

This change was largely due to the annual increase in the cumulative number of AmeriCorps members earning an education award.

Grants Payable represents funds due to grantees in payment of

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

payables are liquidated during the first quarter of the subsequent

fiscal year. Grants Payable decreased by about $10.3 million,

from $99.8 million at September 30, 2007, to $89.5 million at

September 30, 2008. This change is considered to be a normal

operating variance.

TRUST SOLVENCY

The Strengthen AmeriCorps Program Act of 2003 (SAPA)

directed that the Corporation record Trust obligations at the

time of grant award for AmeriCorps State and National, or at

the time the Corporation enters into an enforceable agreement

with an individual participant in the AmeriCorps VISTA and

NCCC programs. The amount to be obligated is the estimated

value of authorized education benefits, discounted for the estimated enrollment, earning, and usage rates and the time value of

money. As directed by the Act, the Corporation also established

a Trust reserve that will protect the Corporation in the event that

the estimates used to calculate obligations differ from actual

results. Under SAPA, during FY 2008, the Corporation based its

obligation amount on the full value of the education award, a 100

percent enrollment rate, and earning and usage rates of approximately 80 percent.

As of September 30, 2008, the National Service Trust had available cash and investments of approximately $429 million to make

education award and interest forbearance payments (about $9

million of Trust assets were related to prepaid interest and receivables that are not available for obligation). Of this amount,

Corporation obligations for awarded AmeriCorps positions

totaled approximately $419 million with additional commitments

of about $0.6 million. An additional $46.7 million of Trust

assets has been set aside in reserve.

Approximately $8.8 million was available at September 30, 2008,

to fund new AmeriCorps member positions. Trust assets are estimated to be sufficient to pay for all awarded AmeriCorps positions. As grants expire, the Corporation has begun to deobligate

funds related to member positions that were not filled. The

Corporation also will continue to analyze the Trust liability projections to identify opportunities for improvement. For additional information on the National Service Trust, visit: [link]
FY 2008 CNCS Annual Financial Report Agency Overview 33

The Corporation's financial statements report the financial

position, results of operations, cash flows, and budgetary

resources, as required by the Government Corporation Control

Act (Act) and the President's February 27, 2004, Executive

Order on National and Community Service Programs (EO

13331). The Government Corporation Control Act requires

that government corporations submit an annual report to the

Congress within 180 days of the fiscal year end. As specified

in the Act, the principal financial statements of the

Corporation 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 the Corporation's revenues and expenses

for the year and the changes in net position that

occurred during the year.

» Statement of Cash Flows, which shows how changes in

the Corporation's financial position and results affected

its cash (Fund Balance with Treasury), and breaks the

analysis down according to operating, investing, and

financing activities.

In addition, under the requirements of Executive Order 13331,

the Corporation prepares a Statement of Budgetary Resources

(SBR). The SBR provides information about the budgetary

resources made available to the Corporation as well as the status of those resources at the end of the fiscal year.

The Corporation's financial statements present comparative

information for fiscal 2008 and 2007. For fiscal 2008, the

Corporation's financial statements, for the ninth consecutive

year, received an unqualified opinion. This opinion recognizes

that the Corporation's financial statements are fairly presented,

in all material respects, and in conformity with generally

accepted accounting principles.

LIMITATIONS OF THE FINANCIAL

STATEMENTS

The principal financial statements have been prepared to

report the financial position, results of operations, and cash

flows of the Corporation for National and Community

Service, as required by the Government Corporation Control

Act (31 USC 9106) and by the National and Community

Service Act of 1990 (42 USC 12651). In addition, the

Corporation reports on its budgetary resources in accordance

with Executive Order 13331. The Corporation's financial

statements published herein are in addition to the financial

reports it uses to monitor and control budgetary resources

which are prepared from the same books and records. The

statements should be read with the realization that they are for

a component of the U.S. Government, a sovereign entity. One

implication of this is that liabilities cannot be liquidated without legislation that provides the resources to do so.

Financial Statements,

Notes, and Audits

Financial Statements,

Notes, and Audits
34 Agency Overview FY 2008 CNCS Annual Financial Report

ASSETS 2008 2007

Fund Balance with Treasury (Note 2) $ 822,989 $ 886,505 

Trust Investments and Related Receivables (Note 3) 483,880 465,391 

Advances to Others 59,388 61,975 

Accounts Receivable, Net (Note 4) 2,616 3,247 

Property and Equipment, Net (Note 5) 3,043 2,107 

 Total Assets $ 1,371,916 $ 1,419,225 

LIABILITIES

Trust Service Award Liability (Note 6) $ 303,367 $ 280,597 

Grants Payable 89,456 99,805 

Accounts Payable 7,231 6,141 

Actuarial FECA Liability (Note 8) 11,638 11,888 

Other Liabilities 14,200 13,331 

Accrued Annual Leave 3,164 3,165 

Advances from Others 290 102 

Capital Lease Liability 250 250 

 Total Liabilities 429,596 415,279 

Contingencies (Note 14)

NET POSITION

Unexpended Appropriations 769,016 828,597 

Cumulative Results of Operations 173,304 175,349 

 Total Net Position (Note 9) 942,320 1,003,946 

Total Liabilities and Net Position $ 1,371,916 $ 1,419,225 

Corporation for National and Community Service

(dollars in thousands)

Consolidated Statements of Financial Position

As of September 30 

The accompanying notes are an integral part of these financial statements.
FY 2008 CNCS Annual Financial Report Agency Overview 35

REVENUE 2008 2007

Appropriated Capital Used $ 748,580 $ 779,456 

Appropriations Transferred to the Trust Fund (Note 10) 138,785 117,720 

Interest 17,804 19,563 

Revenue from Services Provided 8,111 7,404 

Other 776 2,452 

 Total Revenue 914,056 926,595 

EXPENSES

AmeriCorps 630,424 622,304 

SeniorCorps 236,794 240,828 

Learn and Serve America 42,436 59,503 

 Subtotal - Program Expenses 909,654 922,635 

Pass-through Grants 163 2,781 

Office of the Inspector General 6,284 5,634 

 Total Expenses (Note 11) 916,101 931,050 

Net of Revenue Over Expenses (2,045) (4,455)

NET POSITION

Net of Revenue over Expenses (2,045) (4,455)

Increase/(Decrease) in Unexpended Appropriations, Net (Note 13) (59,581) (43,536)

Increase/(Decrease) in Net Position, Net (61,626) (47,991)

Net Position, Beginning Balance 1,003,946 1,051,937 

 Net Position, Ending Balance (Note 9) $ 942,320 $ 1,003,946 

Corporation for National and Community Service

Consolidated Statements of Operations and Changes in Net Position

For the Years Ended September 30

(dollars in thousands)

The accompanying notes are an integral part of these financial statements.
36 Agency Overview FY 2008 CNCS Annual Financial Report

The accompanying notes are an integral part of these financial statements.

CASH FLOWS FROM OPERATING ACTIVITIES 2008 2007

Net of Revenue over Expenses (2,045) $ (4,455) $ 

Adjustments Affecting Cash Flow:

 Appropriated Capital Used (748,580) (779,456) 

 Appropriations Received in Trust (138,785) (117,720) 

 Decrease/(Increase) in Accounts Receivable 631 (1,192) 

 Decrease/(Increase) in Interest Receivable (697) 1,179 

 Decrease/(Increase) in Advances 2,587 (1,928) 

 Increase/(Decrease) in Accounts Payable and Other Liabilities 2,147 2,277 

 Increase/(Decrease) in FECA and Annual Leave Liabilities (249) (1,220) 

 Increase/(Decrease) in Capital Lease Liability - (77) 

 Increase/(Decrease) in Trust Liability 22,770 13,654 

 Increase/(Decrease) in Grants Payable (10,349) 11,166 

 Amortization of Premium/Discount on Investments (4,192) (48,374) 

 Depreciation, Amortization, and Loss on Disposition of Assets 1,731 1,051 

 Total Adjustments (872,986) (920,640)

Net Cash Provided/(Used) by Operating Activities (875,031) (925,095)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Property and Equipment (2,667) - 

Sales of Securities 1,093,279 5,731,950 

Purchase of Securities (1,106,881) (5,701,817)

Net Cash Provided/(Used) in Investing Activities (16,269) 30,133

CASH FLOWS FROM FINANCING ACTIVITIES

Appropriations Received, Net of Trust 871,558 884,547 

Rescissions and Cancellations (43,774) (30,907)

Net Cash Provided by Financing Activities 827,784 853,640

Net Increase/(Decrease) in Fund Balance with Treasury (63,516) (41,322) 

Fund Balance with Treasury, Beginning 886,505 927,827

Fund Balance with Treasury, Ending 822,989 $ 886,505 $

(dollars in thousands)

Corporation for National and Community Service

Consolidated Statements of Cash Flows

For the Years Ended September 30
FY 2008 CNCS Annual Financial Report Agency Overview 37

The accompanying notes are an integral part of these financial statements.

BUDGETARY RESOURCES 2008 2007

Unobligated balance, brought forward, October 1 $ 185,878 177,320 $ 

Recoveries of prior year unpaid obligations 40,444 57,330

 243,208 217,764 

Budget authority:

Appropriation 1,027,007 1,021,546 

Spending authority from offsetting collections:

Collected 9,070 7,302 

Change in receivables from Federal sources (491) - 

Change in unfilled customer orders:

Advance received 374 - 

Without advance from Federal sources 65 -

Total budget authority 1,036,025 1,028,848 

Permanently not available (43,843) (30,907)

Total budgetary resources 1,209,946 $ 1,241,149 $

STATUS OF BUDGETARY RESOURCES

Obligations incurred (Note 16) 1,064,885 1,063,829

Unobligated balance:

Apportioned 2,927 - 

Unobligated balance not available 142,134 177,320

Total status of budgetary resources 1,209,946 $ 1,241,149 $

Corporation for National and Community Service

Combined Statements of Budgetary Resources

For the Years Ended September 30

(dollars in thousands)

(Continued)
38 Agency Overview FY 2008 CNCS Annual Financial Report

The accompanying notes are an integral part of these financial statements.

2008 2007

CHANGE IN OBLIGATED BALANCE

Obligated balance, net:

Unpaid obligations, brought forward, October 1 1,165,718 $ 1,185,078 $ 

Uncollected customer payments from Federal sources,

brought forward, October 1 (1,694) (3,455)

Total unpaid obligated balance, net 1,164,024 1,181,623 

Obligations incurred, net 1,064,885 1,063,829 

Gross outlays (1,039,557) (1,025,858) 

Recoveries of prior year unpaid obligations, actual (40,444) (57,330) 

Change in uncollected customer payments from Federal sources 427 1,760

Total unpaid obligated balance, net, end of period 1,149,335 1,164,024

Obligated balance, net, end of period:

Unpaid obligations 1,150,605 1,165,718

Uncollected customer payments from Federal sources (1,270) (1,694)

Total unpaid obligated balance, net, end of period 1,149,335 1,164,024

NET OUTLAYS

Gross outlays 1,039,557 1,025,858

Offsetting collections (9,444) (9,062) 

Distributed offsetting receipts (119,014) (140,450)

 Net outlays 889,663 $ 897,782 $

(Continued)

Corporation for National and Community Service

Combined Statements of Budgetary Resources

For the Years Ended September 30

(dollars in thousands)
FY 2008 CNCS Annual Financial Report Agency Overview 39

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The Corporation for National and Community Service (Corporation) was created by the National and Community Service Trust

Act of 1993 (Public Law 103-82). The Corporation's mission is to improve lives, strengthen communities, and foster civic

engagement through service and volunteering. To meet its mission, the Corporation provides grants and other assistance to States,

local municipalities, and not-for-profit organizations to help communities meet critical challenges in the areas of education, public

safety, human needs, and the environment through volunteer service. The Corporation's major programs are:

SENIOR CORPS. The Senior Corps offers a network of programs that tap the rich experience, skills and talents of older citizens

to meet community challenges. Senior Corps comprises the Retired and Senior Volunteer Program, the Foster Grandparent

Program, and the Senior Companion Programs.

AMERICORPS. AmeriCorps provides opportunities for Americans to make an ongoing, intensive commitment to service through

the following programs:

» State, National, Tribes, and Territories, (State/National) offers grants supporting a broad range of local service programs that

engage thousands of Americans in intensive service to meet critical community needs.

» Volunteers in Service to America (VISTA) helps community organizations and public agencies create and expand programs

that build capacity and ultimately bring low-income individuals and communities out of poverty.

» National Civilian Community Corps (NCCC) strengthens communities while developing leaders through direct, teambased national and community service.

LEARN AND SERVE AMERICA. Learn and Serve America supports programs in schools, colleges, and community-based

organizations that link community service to educational objectives.

In addition, the Corporation administers the National Service Trust (the Trust), whose purpose is to provide education awards for

volunteers under AmeriCorps' State, National, Tribes and Territories; NCCC; and VISTA programs.

B. Basis of Accounting and Presentation

The accompanying financial statements report the financial position, results of operations, cash flows, and budgetary resources of

the Corporation, as required by the Government Corporation Control Act (31 USC 9106) and Executive Order 13331 ("National

Community Service Programs").

The accompanying Consolidated Statements of Financial Position, Operations and Changes in Net Position, and Cash Flows have

been prepared from the books and records of the Corporation in accordance with accounting principles generally accepted in the

United States of America (GAAP) as applicable to Federal governmental corporations and include the Corporation's activities

related to providing grants and other assistance to eligible states, local governments, and not-for-profit organizations as well as

education awards to eligible national service participants.

The accompanying Combined Statements of Budgetary Resources (SBR) have been prepared from the books and records of the

Corporation in accordance with the form and content requirements pertaining to it in the Office of Management and Budget

(OMB) Circular No. A-136, "Financial Reporting Requirements" and GAAP. GAAP, as it relates to the SBR, is prescribed by

the Federal Accounting Standards Advisory Board, which is the official accounting standard-setting body for the Federal government.

The Corporation's accounting structure reflects both accrual and budgetary accounting transactions. Under the accrual method of

accounting, revenues are recognized when earned and expenses are recognized when incurred, without regard to the actual collection or payment of cash. Federal budgetary accounting recognizes the obligation of appropriations and other funds upon the establishment of a properly documented legal liability, which, in many cases, is different from the recording of an accrual-based transaction. The recognition of budgetary accounting transactions is essential for compliance with legal controls over the use of Federal

funds.
40 Agency Overview FY 2008 CNCS Annual Financial Report

C. Budgets and Budgetary Accounting

The activities of the Corporation are primarily funded through the annual Departments of Labor, Health and Human Services,

Education and Related Agencies Appropriation Act. For the period covered by these statements, the Corporation was funded by

the following trust and appropriated funds:

Trust Funds

» National Service Trust

» Gifts and Contributions

Appropriated Funds

» Domestic Volunteer Service Programs, Operating Expenses, a FY 2007 one-year fund

» National and Community Service Programs, Operating Expenses, a FY 2007 two-year fund

» Operating Expenses, a FY 2008 one-year fund (with the exception that funding for operation of the National Civilian 

Community Corps was available for two years)

» Salaries and Expenses, a one-year fund in both FY 2007 and 2008

» Office of Inspector General, a one-year fund in both FY 2007 and 2008

» VISTA Advance Payment Revolving Fund, a no-year fund.

The Vista Advance Payment Revolving Fund was established on February 15, 2007, by Public Law 110-5. It provides budgetary

resources against which the Corporation advances funds for VISTA cost-share agreements. OMB did not establish the VISTA

Advance Payment Revolving Fund as a revolving fund, but, as noted above, as a permanent, indefinite appropriated fund.

D. Fund Balance with Treasury

Fund Balance with Treasury (FBWT) represents the Corporation's cash accounts with the Department of the Treasury (the

Treasury). The Treasury processes cash receipts and disbursements on behalf of the Corporation and the Corporation's accounting

records are reconciled with those of the Treasury on a regular basis. The Corporation's FBWT includes all of its appropriated and

trust funds.

Funds maintained in the National Service Trust are restricted to specific purposes, such as paying service awards earned by eligible

participants, and are not available for use in the current operations of the Corporation. The majority of the funds received from

individuals and organizations in the form of gifts are restricted for particular uses, such as service projects.

E. Investments and Related Receivables

By law, the Corporation 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, the Corporation's investments are valued at cost and adjusted for the amortization

of premiums and discounts. The premiums and discounts are recognized as adjustments to interest income, using the effective

interest method. Interest receivable represents amounts earned, but not received on investments held at year-end. Prepaid interest

is the amount of interest earned on a security since the date of its last interest payment up to the date the security is purchased by

the Corporation. Such interest, if any, at year-end is included in the interest receivable balance.

F. Advances to Others

The Corporation 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 Corporation-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.

G. Accounts Receivable

Accounts receivable represents amounts due to the Corporation 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.
FY 2008 CNCS Annual Financial Report Agency Overview 41

H. Property and Equipment

Effective July 1, 2007, the Corporation instituted a prospective increase in the capitalization threshold for capitalized property and

equipment from $10 thousand to $50 thousand. Thus, all property and equipment received and accepted by the Corporation on

or after July 1, 2007, is subject to the $50 thousand capitalization threshold. Property and equipment with an estimated useful life

that extends beyond the year of acquisition is capitalized at historical cost and is depreciated (or amortized) on a straight-line basis

over estimated useful lives ranging from two to 10 years, using the half-year convention. Normal maintenance and repair costs on

capitalized property and equipment are expensed when incurred. The Corporation has entered into lease agreements for copy

machines. These leases vary from 3 to 4 year terms and are deemed to be capital leases. The costs of the copiers have been

recorded as property and equipment.

I. 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, which are 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 the Corporation's historical experience.

J. Grants Payable

Grants are made to nonprofit organizations, educational institutions, states, municipalities, and other external organizations.

Grants become budgetary obligations, but not liabilities, when they are awarded. At the end of each fiscal year, the Corporation

reports the total amount of unreimbursed grantee expenses, which are properly payable under the terms of grant agreements, as

grants payable.

K. Accounts Payable

The Corporation 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 entities for goods and services received by the Corporation, but not

paid for at the end of the fiscal year.

L. Actuarial FECA Liability

The Federal Employees' Compensation Act (FECA) provides income and medical cost protection to covered Federal civilian

employees, NCCC and VISTA members injured on the job, employees who have incurred a work-related occupational disease, and

beneficiaries of employees whose death is attributable to a job-related injury or occupational disease. Claims incurred for benefits

for Corporation employees and members under FECA are determined and paid by the Department of Labor (DOL) and later

billed to the Corporation. The Corporation's actuarial liability for workers' compensation includes costs incurred but unbilled as

of year-end, as calculated by DOL. The Corporation reimburses DOL for FECA claims out of current appropriations upon

receipt of a bill from DOL

M. Other Liabilities

Other liabilities include amounts owed but not paid at the end of the fiscal year for payroll and benefits and VISTA stipends.

Also included as other liabilities is the amount of claims for benefits for Corporation employees under FECA that have been paid

by DOL and billed to the Corporation but have not yet been reimbursed to DOL.

N. 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.

O. 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 the Corporation entered to provide services.

P. Net Position

Net position is comprised of the Corporation's unexpended appropriations and its cumulative results of operations. Unexpended

appropriations is the balance of appropriated authority granted to the Corporation against which no outlays have been made.

Cumulative results of operations represent the net differences between revenues and expenses from the inception of the

Corporation.
42 Agency Overview FY 2008 CNCS Annual Financial Report

Q. Revenues

Appropriated Capital Used

The Corporation recognizes its use of appropriated capital as revenue at the time it is expended to pay program or administrative

expenses. Appropriations expended for property and equipment are recognized as used when the property is purchased.

Appropriated capital not expended within five fiscal years after it became available for obligation is cancelled. Unpaid obligations

recorded against cancelled appropriated capital are paid from currently available appropriated funds as payments become due.

Appropriations received for the Corporation's 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 the Corporation in the Trust until used for eligible education service award purposes.

Interest

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

The Corporation 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.

Other Revenue

Other revenue consists of gifts and donations for the support of Corporation operations or service projects from individuals and

organizations.

R. Retirement Benefits

The Corporation's employees participate in either the Civil Service Retirement System (CSRS) or the Federal Employees

Retirement System (FERS). FERS was established by the enactment of Public Law 99-335. Pursuant to this law, FERS and

Social Security automatically cover most employees hired after December 31, 1983. Employees hired prior to January 1, 1984,

elected to join FERS and Social Security or remained in the CSRS.

For employees covered by CSRS, the Corporation contributes 7.0 percent of their basic pay. For those employees covered by

FERS, the Corporation 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, the Corporation 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 Corporation contribution

amounting to 5 percent of pay. Employees under CSRS may participate in the TSP, but will not receive either the Corporation's

automatic or matching contributions.

The Corporation made retirement contributions of $473 and $506 thousand to the CSRS, and $8.2 and $8.1 million to FERS

and TSP in fiscal years 2008 and 2007, respectively.

S. Income Taxes

As a Federal entity, the Corporation is exempt from all income taxes imposed by any governing body, whether it be a Federal,

State, commonwealth, local, or foreign government.

T. Use of Estimates

The preparation of financial statements in accordance with GAAP requires management to make certain estimates. These estimates affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

U. Reclassification

Certain prior year amounts have been reclassified to conform to current year presentation.
FY 2008 CNCS Annual Financial Report Agency Overview 43

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 the Corporation's programs on an annual, multi-year, and no-year basis.

» Trust Funds - Trust Funds are accounts designated by law for receipts earmarked for specific purposes and for the expenditure of these receipts. Funds from the Corporation's Trust Fund may be expended for the purpose of providing an education award or student loan interest forbearance payment. Trust Fund payments 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 Trust also pays awards under the President's Freedom Scholarship Program.

» Gift Funds - Gift Funds are funds received from individuals and organizations as donations in furtherance of the purposes

of the national service laws.

Type Unrestricted Restricted Total

Appropriated Funds 821,954 - $ 821,954 $ 

Trust Funds 227 $ 227 

Gift Funds - 808 808 

Total $ 1,035 821,954 $ 822,989 $

Type Unrestricted Restricted Total

Appropriated Funds 885,823 $ - $ 885,823 $ 

Trust Funds - 148 148 

Gift Funds - 534 534 

Total $ 682 885,823 $ 886,505 $

Fund Balance with Treasury as of September 30, 2008

(dollars in thousands)

Fund Balance with Treasury as of September 30, 2007

(dollars in thousands)
44 Agency Overview FY 2008 CNCS Annual Financial Report

NOTE 3 – TRUST INVESTMENTS AND RELATED RECEIVABLES

The composition of Trust Investments and Related Receivables at September 30 is as follows:

2008 2007

$ 461,842 479,634 $ 

 3,549 4,246 

$ 483,880 465,391 $

Amortized Unrealized Unrealized Fair

Securities Cost Gains (Losses) Value

Notes 399,353 $ 6,609 $ - $ 405,962 $ 

Bills 80,281 108 - 80,389 

Bonds - - - - 

Total $ 479,634 6,717 $ - $ 486,351 $

Amortized Unrealized Unrealized Fair

Securities Cost Gains (Losses) Value

Notes 427,428 $ 2,307 $ - $ 429,735 $ 

Bills 34,414 1 - 34,415 

Bonds - - - - 

Total $ 461,842 2,308 $ - $ 464,150 $

Investment and Interest Receivable

(dollars in thousands)

(dollars in thousands)

Total

Amortized Cost and Fair Value of Investment Securities

Amortized Cost and Fair Value of Investment Securities

as of September 30, 2007

as of September 30, 2008

Trust Investments and Related Receivables as of September 30

(dollars in thousands)

Investments, Carrying Value

At September 30, 2008, the notes held at year-end had an interest rate range of 3.0% to 6.0% and an outstanding maturity period

of approximately one day to five years. The bills held at year-end had an interest rate range of 2.99% to 4.79% and were all due

to mature within 18 days. The par values of these bills range from $1.0 million to $20.0 million.

As required by the Strengthen AmeriCorps Program Act, beginning in fiscal 2003, the Corporation has set aside in reserve a 

portion of the funds in the Trust for use in the event that its estimates used to calculate obligational amounts for education awards

prove to be too low. As of September 30, 2008, $46.7 million of the Corporation's investment account has been set aside for this

reserve.
FY 2008 CNCS Annual Financial Report Agency Overview 45

NOTE 3 – TRUST INVESTMENTS AND RELATED RECEIVABLES - CONTINUED

Investments held at September 30 mature according to the following schedule:

NOTE 4 – ACCOUNTS RECEIVABLE, NET

NOTE 5 – PROPERTY AND EQUIPMENT, NET

Amortized

Cost Fair Value 

 Amortized 

Cost Fair Value 

$ 359,913 357,731 $ 245,945 $ 246,090 $

 126,438 121,903 215,897 218,060

$ 479,634 486,351 $ 461,842 $ 464,150 $

Maturation of Securities Held as of September 30

(dollars in thousands)

Due after 1 year up to 5 years

Total

2008 2007

Held-to-Maturity Securities

Due in 1 year or less

2008 2007

$ 3,726 2,925 $

 479 309

Accounts Receivable, Net $ 2,616 3,247 $

Accounts Receivable as of September 30

(dollars in thousands)

Accounts receivable

Less: allowance for loss on receivables

Service Life 

(Years) Cost

Less:

Accumulated

Depreciation

Net Book 

Value

3 - 10 $ 3,084 $ 1,541 $ 1,543 

3 - 5 416 291 125 

2 8,774 7,399 1,375 

 Total $ 12,274 $ 9,231 $ 3,043 

Major Class

Equipment

Capital leases

ADP software

General Property and Equipment as of September 30, 2008

(dollars in thousands)
46 Agency Overview FY 2008 CNCS Annual Financial Report

Major Class

Service Life 

(Years) Cost

Less:

Accumulated

Depreciation Net Book Value

Equipment 3 - 10 $ 2,917 $ 1,326 $ 1,591 

Capital leases 3 - 5 416 208 208 

ADP software 2 6,274 5,966 308 

 Total $ 9,607 $ 7,500 $ 2,107 

General Property and Equipment as of September 30, 2007

(dollars in thousands)

2008 2007

Education awards 1,335,254 $ 1,179,887 $ 

Interest forbearance 42,707 37,264 

President's Freedom Scholarship Program 22,527 22,527

Total estimated Service Award Liability 1,400,488 1,239,678 

Less: cumulative awards paid 1,097,121 959,081 

Total $ 303,367 $ 280,597 

Service Award Liability as of September 30

(dollars in thousands)

NOTE 5 – PROPERTY AND EQUIPMENT, NET - CONTINUED

NOTE 6 - SERVICE AWARD LIABILITY - NATIONAL SERVICE TRUST

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 for use for a period of up to seven years after the benefit has been earned, are paid from the National Service Trust. The

Trust also pays forbearance interest on qualified student loans during the period members perform community service, as well as

awards under the President's 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 Liability was composed of the following as of September 30:

The net Service Award Liability as of September 30, 2008, increased by approximately $22.8 million from the net Service Award

Liability as of September 30, 2007. This change was largely due to new member enrollments and an increase in the number of

members still serving during the year. Past Corporation appropriations made amounts from the 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 the Corporation. The program was discontinued in fiscal

2007; however, because students have up to seven years to use the scholarship, some payments will continue to be made over the

next several years.
FY 2008 CNCS Annual Financial Report Agency Overview 47

NOTE 7 -OPERATING LEASES

The Corporation leases office space through the General Services Administration (GSA). GSA charges the Corporation a

Standard Level Users Charge that approximates commercial rental rates for similar properties. NCCC also leases housing facilities

for its campuses. Additionally, the Corporation leases motor vehicles on an annual basis through GSA under an Interagency Fleet

Management Service agreement for the National Civilian Community Corps. Commitments of the Corporation for future rental

payments under operating leases at September 30 are as follows:

Fiscal Facilities Facilities

Year Space Vehicles Other Total Space Vehicles Other Total

2008 $ – $ – $ – - 8,155 581 124 8,860 

2009 8,351 543 139 9,033 8,395 598 95 9,088 

2010 8,602 562 122 9,286 8,642 615 89 9,346 

2011 8,860 581 126 9,567 8,896 633 92 9,621 

2012 9,125 602 122 9,849 9,158 652 96 9,906 

2013 9,399 623 114 10,136 - - - - 

Total $ 44,337 $ 2,911 $ 623 $ 47,871 $ 43,246 $ 3,079 $ 496 46,821 

2008 2007

Estimated Operating Lease Commitments as of September 30

(dollars in thousands) 

NOTE 8 - ACTUARIAL FECA LIABILITY

The Corporation's actuarial liability for future workers' compensation benefits under FECA was $11.638 million and $11.888 million as of September 30, 2008 and 2007, respectively. The amount includes the expected liability for death, disability, medical, and

miscellaneous costs for approved compensation cases. The actuarial liability is determined using a method that utilizes historical

benefit payment patterns related to a specific incurred period to predict the ultimate payments related to that period. Consistent

with past practice, these projected annual benefit payments have been discounted to present value using the Office of Management

and Budget's economic assumptions for 10-year Treasury notes and bonds.

NOTE 9 - NET POSITION

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.

 (dollars in thousands) Appropriated

Gift Fund Trust Fund Funds Total

Unexpended appropriations - $ - $ 769,016 $ 769,016 $ 

Cumulative results of operations 801 180,771 173,304 (8,268) 

Total Net Position $ 180,771 801 $ 760,748 $ 942,320 $

Net Position by Fund Balance Components

As of September 30, 2008
48 Agency Overview FY 2008 CNCS Annual Financial Report

NOTE 9 - NET POSITION - CONTINUED

 (dollars in thousands) Appropriated

Gift Fund Trust Fund Funds Total

Total unexpended appropriations - $ - $ 828,597 $ 828,597 $ 

Cumulative results of operations 570 184,949 (10,170) 175,349 

Total Net Position $ 184,949 570 $ 818,427 $ 1,003,946 $

As of September 30, 2007

Net Position by Fund Balance Components

NOTE 10 - APPROPRIATIONS RECEIVED BY THE NATIONAL SERVICE TRUST

For fiscal year 2008 the National Service Trust received $122.530 million under the Consolidated Appropriations Act, 2008

(Public Law 110-161). For fiscal year 2007 the National Service Trust received $117.720 million under the Revised Continuing

Appropriations Resolution, 2007 (Public Law 110-5). The Acts also authorized the Corporation to transfer additional amounts

from subtitle C program funds to the National Service Trust if necessary to support the activities of national service participants.

The Corporation transferred $16.246 million to the National Service Fund under this provision in fiscal 2008, bringing total

appropriations received by the Trust in 2008 to $138.785 million; no funds were transferred in fiscal 2007.

NOTE 11 - EXPENSES

Using an appropriate cost accounting methodology, the Corporation's expenses have been allocated among its major programs, at

the sub-program level. Costs for each sub-program are reported on separately:

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 Trust operations. The NCCC sub-program

includes direct and allocated personnel and administrative costs including AmeriCorps recruitment and Trust operations. The

VISTA sub-program includes grant expenses, as well as direct and allocated personnel and administrative costs including

AmeriCorps recruitment and Trust operations.

The National Senior Service Corps (NSSC) includes the Foster Grandparent Program (FGP); Senior Companion Program (SCP);

and the Retired and Senior Volunteer Program (RSVP). The NSSC responsibility segment includes grant expenses, as well as direct

and allocated personnel and administrative costs for RSVP, FGP, and SCP.

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 President's

Freedom Scholarships are included in the National Service Award expense component.

Other Program Costs

National Service Award Expense - the National Service Award expense component consists of the Corporation's estimated expense

for education awards based on the increase in its service award liability during the year, interest forbearance costs on qualified student loans during the period members perform community service, as well as disbursements for the President's Freedom

Scholarship Program (see Note 12). No indirect costs have been allocated to the National Service Award expense component.
FY 2008 CNCS Annual Financial Report Agency Overview 49

Pass-through Grants - the Corporation has reimbursable agreements with state agencies whereby the Corporation awards and

administers grants to a list of grantees selected and funded by the State. No indirect costs have been allocated to these passthrough grants.

The Office of Inspector General (OIG) receives a separate appropriation. No indirect costs have been allocated to the OIG.

Domestic Volunteer Service Act Programs 248,385 $ 249,634 $ 

National and Community Service Act Programs 316,158 347,085 

Pass-through Grants 163 2,781 

Total Grant Funds Expended $ 599,500 564,706 $

AmeriCorps

 State, National, Tribes & Territories (State/Nation $ 459,584 $ 461,509

 National Civilian Community Corps (NCCC) 39,334 37,188 

 Volunteers In Service To America (VISTA) 131,506 123,607

 Subtotal 630,424 $ 622,304 $ 

National Senior Service Corps

 Retired and Senior Volunteer Program (RSVP) 66,284 66,286 

 Foster Grandparent Program (FGP) 119,396 123,293 

 Senior Companion Program (SCP) 51,114 $ 51,249

 Subtotal 236,794 240,828 

Learn and Serve America 42,436 59,503 

Pass-through Grants 163 2,781 

Office of Inspector General (OIG) 6,284 5,634 

Total Expenses $ 931,050 916,101 $

2008 2007

Components of Grant Funds Expended for the years ended September 30

(dollars in thousands)

Expenses by Major Responsibility Segment for the years ended September 30

(dollars in thousands)

2008 2007
50 Agency Overview FY 2008 CNCS Annual Financial Report Pass-through Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve Grants OIG Total Grant and Related Expense Grant funds expended 278,649 $ - $ 29,062 $ 60,763 $ 111,231 $ 47,329 $ 37,509 $ 163 $ - $ 564,706 $ VISTA & NCCC stipends & benefits 57 5,645 53,097 - - - - - - 58,799

Service award expense 141,623 3,851 15,316 - - - - - - 160,790Total Grant and Related Expense 420,329 9,496 97,475 60,763 111,231 47,329 37,509 163 - 784,295

Administrative ExpenseFederal employee salaries & benefits 26,339 13,637 21,994 3,104 5,677 2,415 3,423 - 3,632 80,221

Travel & transportation 967 3,734 4,692 113 201 86 109 - 137 10,039

Rent, communications, & utilities 3,716 2,459 888 453 829 353 263 - 360 9,321

Program analysis & evaluation 1,049 954 954 307 553 237 715 - - 4,769

Printing & reproduction 57 83 77 43 31 13 5 - - 309

Other services and expenses 5,589 7,121 4,892 1,311 523 532 292 - 2,069 22,329

Supplies & materials 618 1,838 362 63 117 50 41 - 86 3,175

Depreciation, amortization, loss on disposition of assets 970 13 181 134 246 104 83 - - 1,731

Bad debt (50) (1) (9) (7) (12) (5) (4) - - (88)

Total Administrative Expense 39,255 29,838 34,031 5,521 8,165 3,785 4,927 - 6,284 131,806

Total Expenses by Type 459,584 $ 39,334 $ 131,506 $ 66,284 $ 119,396 $ 51,114 $ 42,436 $ 163 $ 6,284 $ 916,101 $

Pass-through

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve Grants OIG Total

Grant and Related ExpenseGrant funds expended 295,095 $ - $ 27,268 $ 60,933 $ 114,075 $ 47,358 $ 51,990 $ 2,781 $ - $ 599,500 $

VISTA & NCCC stipends & benefits - 10,201 57,283 - - - - - - 67,484

Service award expense 127,982 3,576 14,130 - - - 1,627 - - 147,315Total Grant and Related Expense 423,077 13,777 98,681 60,933 114,075 47,358 53,617 2,781 - 814,299

Administrative ExpenseFederal employee salaries & benefits 22,459 9,823 9,949 2,962 5,567 2,303 3,667 - 2,999 59,729

Travel & transportation 1,343 4,140 4,475 161 289 123 180 - 124 10,835

Rent, communications, & utilities 4,202 2,879 967 510 954 396 405 - 391 10,704

Program analysis & evaluation 853 775 775 245 456 190 581 - - 3,875

Printing & reproduction 94 112 101 11 19 8 9 - 1 355

Other services and expenses 8,477 4,687 8,191 1,299 1,623 744 913 - 2,074 28,008

Supplies & materials 307 983 349 69 130 53 48 - 45 1,984

Depreciation, amortization, loss on disposition of assets 581 10 99 80 150 62 69 - - 1,051

Bad debt 116 2 20 16 30 12 14 - - 210

Total Administrative Expense 38,432 23,411 24,926 5,353 9,218 3,891 5,886 - 5,634 116,751

Total Expenses by Type 461,509 $ 37,188 $ 123,607 $ 66,286 $ 123,293 $ 51,249 $ 59,503 $ 2,781 $ 5,634 $ 931,050 $

AmeriCorps National Senior Service Corps

Expenses by Type and Subprogram for the year ended September 30, 2008

(dollars in thousands)

AmeriCorps National Senior Service Corps

Expenses by Type and Subprogram for the year ended September 30, 2007

(dollars in thousands)
FY 2008 CNCS Annual Financial Report Agency Overview 51

NOTE 12 - NATIONAL SERVICE AWARD EXPENSE

Members participating in the Trust programs are eligible to earn a service award to pay for qualified education expenses. The

Trust also pays interest forbearance costs on qualified student loans during the period members perform community service. The

Corporation 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, 2008 and 2007 has been adjusted to reflect the fact that

earned awards are not always used.

2008 2007

Estimated education awards 155,347 $ 140,902 $ 

Estimated interest forbearance 5,443 4,786 

President’s Freedom Scholarship Program - 1,627 

National Service Award Expense $ 160,790 147,315 $

National Service Award Expense for the years ended September 30

(dollars in thousands)

2008 2007

Unexpended Appropriations, Beginning Balance 828,597 $ 872,133 $ 

Increases:

Appropriations Received, Net of Trust 871,558 884,547 

Decreases:

Appropriated Capital Used (748,580) (779,456) 

Appropriations Transferred to Trust (net of rescissions) (122,539) (117,720) 

Program Funds Transferred to Trust (16,246) - 

Rescissions and Cancellations (43,774) (30,907)

Total Decreases (931,139) (928,083) 

Change in Unexpended Appropriations (43,536) (59,581) 

Unexpended Appropriations, Ending Balance $ 769,016 828,597 $

Unexpended Appropriations, Net as of September 30

(dollars in thousands)

NOTE 13 – CHANGE IN UNEXPENDED APPROPRIATIONS, NET 
52 Agency Overview FY 2008 CNCS Annual Financial Report

NOTE 14 - CONTINGENCIES

The Corporation 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 the Corporation. In the opinion of the Corporation's management and legal counsel, there are no proceedings,

actions, or claims outstanding or threatened that would materially impact the financial statements of the Corporation.

Certain legal matters to which the Corporation 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 a special appropriation called 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 the Corporation's financial statements.

NOTE 15 - UNDELIVERED ORDERS AT FISCAL YEAR-END

The Corporation's undelivered orders at September 30, 2008 and 2007 were $804,283 thousand and $837,042 thousand,

respectively.

NOTE 16 - APPORTIONMENT CATEGORIES OF INCURRED OBLIGATIONS

An apportionment is a distribution by OMB of amounts available for obligation. OMB apportions Corporation funds on a 

quarterly basis. Obligations incurred during fiscals 2008 and 2007 were:

Fiscal Year Direct Reimbursable Total

Fiscal 2008 1,057,252 $ 7,633 $ 1,064,885 $ 

Fiscal 2007 1,059,318 $ 4,511 $ 1,063,829 $ 

(dollars in thousands)

Consolidated Obligations Incurred
FY 2008 CNCS Annual Financial Report Agency Overview 53
54 Agency Overview FY 2008 CNCS Annual Financial Report

Office of Inspector General

Corporation for National 

and Community Service

AUDIT OF THE

CORPORATION FOR NATIONAL AND

COMMUNITY SERVICE’S

FISCAL YEAR 2008 FINANCIAL STATEMENTS

Audit Report Number 09-01

Prepared by:

CLIFTON GUNDERSON LLP

11710 Beltsville Drive

Calverton, Maryland 20705

This report was issued to Corporation management on November 14, 2008.

Under the laws and regulations governing audit follow up, the Corporation is to

make final management decisions on the report’s finding and recommendations

no later than May 14, 2009. Consequentlt, the reported findings do not 

necessarily represent the final resolution of the issues presented.
FY 2008 CNCS Annual Financial Report Agency Overview 55
56 Agency Overview FY 2008 CNCS Annual Financial Report

Independent Auditor’s Report

To the Inspector General 

Corporation for National and Community Service 

We have audited the accompanying Statement of Financial Position of the Corporation for 

National and Community Service (Corporation) as of September 30, 2008 and 2007, and the 

related statements of Operations and Changes in Net Position, Budgetary Resources and Cash 

Flows for the years then ended. These financial statements are the responsibility of Corporation 

management. Our responsibility is to express an opinion on these financial statements based on 

our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the 

United States of America; the standards applicable to financial audits contained in Government 

Auditing Standards issued by the Comptroller General of the United States; and applicable 

provisions of Office of Management and Budget Bulletin No. 07-04, Audit Requirements for 

Federal Financial Statements, as amended. Those standards require that we plan and perform 

the audit to obtain reasonable assurance about whether the financial statements are free of 

material misstatement. An audit includes examining, on a test basis, evidence supporting the 

amounts and disclosures in the financial statements. An audit also includes assessing the 

accounting principles used and significant estimates made by management, as well as 

evaluating the overall financial statement presentation. We believe that our audits provide a 

reasonable basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of the Corporation as of September 30, 2008 and 2007, and the results of 

its operations and changes in net position, budgetary resources, and cash flows for the years 

then ended in conformity with accounting principles generally accepted in the United States of 

America.

In accordance with Government Auditing Standards, we have also issued our reports dated 

November 14, 2008, on our consideration of Corporation’s internal control over financial 

reporting and on our tests of its compliance with certain provisions of laws and regulations and 

other matters. The purpose of those reports is to describe the scope of our testing of internal 

control over financial reporting and compliance and the results of that testing, not to provide an 

opinion on internal control over financial reporting or compliance. Those reports are an integral 

part of our audit performed in accordance with Government Auditing Standards and should be 

considered in assessing the results of our audit. 
FY 2008 CNCS Annual Financial Report Agency Overview 57

The Management’s Discussion and Analysis (MD&A) is not a required part of the financial 

statements but is supplementary information required by accounting principles generally 

accepted in the United States of America. We have applied certain limited procedures, which 

consisted principally of inquiries of management regarding the methods of measurement and 

presentation of the required supplementary information. However, we did not audit the 

information and express no opinion on it. 

The Message from the Chief Executive Officer and Glossary are presented for additional 

analysis and are not a required part of the financial statements. Such information has not been 

subjected to the auditing procedures applied in the audit of the financial statements and, 

accordingly, we express no opinion on them. 

a1

Calverton, Maryland 

November 14, 2008 
58 Agency Overview FY 2008 CNCS Annual Financial Report

Independent Auditor’s Report on Compliance and Other Matters 

To the Inspector General 

Corporation for National and Community Service 

We have audited the financial statements of the Corporation for National and Community 

Service (Corporation) as of and for the year ended September 30, 2008, and have issued our 

report thereon dated November 14, 2008. We conducted our audit in accordance with auditing 

standards generally accepted in the United States of America; the standards applicable to 

financial audits contained in Government Auditing Standards, issued by the Comptroller General 

of the United States; and, Office of Management and Budget (OMB) Bulletin 07-04, Audit

Requirements for Federal Financial Statements, as amended. 

The management of the Corporation is responsible for complying with laws and regulations 

applicable to the Corporation. As part of obtaining reasonable assurance about whether the 

Corporation’s financial statements are free of material misstatements, we performed tests of the 

Corporation’s compliance with certain provisions of laws and regulations, non-compliance with 

which could have a direct and material effect on the determination of financial statement 

amounts, and certain other laws and regulations specified in OMB Bulletin 07-04, as amended. 

We limited our tests of compliance to those provisions and we did not test compliance with all 

laws and regulations applicable to the Corporation. Providing an opinion on compliance with 

certain provisions of laws and regulations was not an objective of our audit, and, accordingly, 

we do not express such an opinion. 

The results of our tests of compliance with laws and regulations described in the preceding 

paragraph disclosed no instances of reportable noncompliance or other matters that are 

required to be reported under Government Auditing Standards or OMB Bulletin 07-04, as 

amended.

******************************** 

This report is intended solely for the information and use of the management of the Corporation, 

the Office of Inspector General, GAO, OMB and Congress, and is not intended to be and should 

a1

not be used by anyone other than these specified parties. 

Calverton, Maryland 

November 14, 2008 
FY 2008 CNCS Annual Financial Report Agency Overview 59

α1

Independent Auditor’s Report on Internal Control

To the Inspector General of the 

 Corporation for National and Community Service 

We have audited the financial statements of the Corporation for National and Community 

Service (Corporation) as of and for the year ended September 30, 2008, and have issued our 

report thereon dated November 14, 2008. We conducted our audit in accordance with the 

auditing standards generally accepted in the United States of America; the standards applicable 

to financial audits contained in Government Auditing Standards, issued by the Comptroller 

General of the United States; and, Office of Management and Budget (OMB) Bulletin No. 07-04, 

Audit Requirements for Federal Financial Statements, as amended.

In planning and performing our audit, we considered the Corporation’s internal control over 

financial reporting by obtaining an understanding of relevant internal controls, determined 

whether these internal controls had been placed in operation, assessed control risk, and 

performed tests of controls in order to determine our auditing procedures for the purpose of 

expressing our opinion on the financial statements and to comply with OMB Bulletin No. 07-04, 

as amended, but not for the purpose of expressing an opinion on the effectiveness of internal 

control over financial reporting. We did not test all internal controls relevant to operating 

objectives as broadly defined by the Federal Managers’ Financial Integrity Act (FMFIA) (31 

U.S.C. 3512), such as those controls relevant to ensuring efficient operations. The objective of 

our audit was not to provide assurance on internal control. Accordingly, we do not express an 

opinion on the effectiveness of the Corporation’s internal control over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraph and would not necessarily identify all deficiencies in 

internal control over financial reporting that might be significant deficiencies or material 

weaknesses. However, as discussed below, we identified certain deficiencies in internal control 

over financial reporting that we consider collectively to be a significant deficiency. 

A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control 

deficiency, or combination of control deficiencies, that adversely affects the entity's ability to 

initiate, authorize, record, process, or reliably report financial data in accordance with generally 

accepted accounting principles such that, there is more than a remote likelihood that a 

misstatement of the entity’s financial statements that is more than inconsequential will not be 

prevented or detected by the entity’s internal control. We consider the deficiency described 

below to be a significant deficiency in internal control over financial reporting. 

A material weakness is a significant deficiency, or combination of significant deficiencies, that 

results in a more than a remote likelihood that a material misstatement of the financial 

statements will not be prevented or detected by the entity’s internal control. 
60 Agency Overview FY 2008 CNCS Annual Financial Report

Our consideration of internal control over financial reporting was for the limited purpose 

described in the second paragraph and would not necessarily identify all deficiencies in internal 

control that might be significant deficiencies or material weaknesses. However, we do not 

believe that the significant deficiency described below is a material weakness. 

Significant Deficiency

CONTINUITY OF OPERATIONS 

Losing the capability to process and retrieve information maintained on CNCS’s computer 

systems can significantly impact CNCS’s ability to initiate, authorize, record, process, or report 

reliable financial data. The purpose of service continuity controls is to ensure that, when 

unexpected events occur, critical operations continue without interruption or are promptly 

resumed. To achieve this objective CNCS should have (1) procedures in place to minimize the 

risk of unplanned interruptions and (2) a plan to recover critical operations should interruptions 

occur. These plans should consider activities performed at CNCS’s general support facilities, as 

well as the activities performed by users of specific applications. To determine whether the 

disaster recovery plans will work as intended, CNCS should establish and periodically test the 

capability to perform its functions in disaster simulation exercises. The following weaknesses 

noted below describe deficiencies in business continuity controls at CNCS. 

1. Application Development and Change Control: 

Significant interface interoperability and unavailability issues in FY 2008 impacted the 

Corporation’s ability to operate. Federal Information Processing Standards Publication 199, 

Standards for Security Categorization of Federal Information and Information Systems,

states that a loss of availability is the disruption of access to or use of information or an 

information system and defines security categories for information systems based on 

potential impact on organizations or individuals should there be a breach of security – that 

is, a loss of confidentiality, integrity (including authenticity and non-repudiation), or 

availability. By authorizing an information system for operation, an organizational official 

accepts responsibility for the security of the system and is accountable for any adverse 

impacts that may occur if the system is breached thereby compromising the confidentiality, 

integrity, or availability of the information being processed, stored, or transmitted. The 

events, noted below, led to the system outages, disrupted system availability and created an 

unstable computer operating environment. In order to stabilize the computer environment, 

management limited system availability to its customers and employees with prescheduled 

blackouts to its mission critical applications. These issues resulted in major system outages 

totaling over 20 days, within a six-month time-span beginning February 2, 2008. The 

financially significant systems impacted included the general ledger system, the central 

database for National Service Trust and participants, and the grants management system. 

In January 2008, there were two major contracted system projects implemented within days 

of each other. Both projects were being managed by separate areas within the Corporation; 

the Project Management Office (PMO) managed one project and the Office of the Chief 

Financial Officer (CFO) managed the other. The PMO managed the implementation of the 

AmeriCorps Portal (a self-service, on-line AmeriCorps program support system) and the 

CFO managed the implementation of the general ledger system upgrade. These projects 

relied heavily on the functions, support and testing of Information Technology (IT) systems 

and components. Concurrent migration of both projects did not allow adequate time to
FY 2008 CNCS Annual Financial Report Agency Overview 61

perform testing to identify potential load and interface issues. There was also insufficient 

communication among key stakeholders (PMO, Office of Information Technology (OIT), and 

the CFO) during the phases of implementation for the AmeriCorps Portal. 

During this same period, OIT was heavily involved in addressing infrastructure support 

shortfalls resulting from the failed contract due to the bankruptcy of its infrastructure support 

contractor. There were two-thirds fewer resources available in OIT to support day-to-day 

operations and functions. This left very limited resources available to focus coordination and 

testing efforts for the system projects to ensure they did not result in any system 

degradation and unavailability issues. Lack of resources, communication, and the timing of 

the migration to the upgraded general ledger system and Portal implementation resulted in 

significant problems including lack of interface interoperability, unavailability and delays in 

processing. 

CNCS had a SWAT team monitoring the system and is now in the process of developing 

and implementing remediation controls. CNCS upgraded the database to be compatible with 

the version used by the third party processor and ensure a more stable operating 

environment. CNCS also had an independent consultant review their controls and make 

recommendations to correct the weaknesses noted. 

Recommendations: We recommend that the Corporation do the following: 

1. Management should establish a central mechanism for coordinating and managing 

resources required for projects that rely on IT resources. 

2. Management should consider the financial and operational impact when planning 

multiple system projects occurring concurrently (i.e. staffing, system load, system 

testing and system availability). 

3. Management should effectively communicate with key stakeholders who are 

responsible for supporting systems to be sure that there is adequate time and 

resources to test. 

4. For all system projects, Management should follow the documented Corporation 

System Development Life Cycle process. 

2. Continuity of Operations Plan and Testing: 

Losing the capability to process and retrieve information maintained electronically can 

significantly affect CNCS’s ability to accomplish its mission. OMB Circular A-130 Appendix 

III, Security of Federal Automated Information Resources, states that: “Experience has 

shown that recovery plans that are periodically tested are substantially more viable than 

those that are not. Moreover, untested plans may actually create a false sense of security.” 

CNCS participated in the Federal Emergency Management Agency (FEMA)’s exercise to 

test the continuity of the executive branch through testing the continuation of National 

Essential Functions (NEFs). However, the test was not designed to test the preparedness of 

CNCS to operate in the case of a CNCS specific disruption. CNCS’ COOP also requires an 

annual COOP exercise to train and test personnel, plans and capabilities. For this reason, 

CNCS should follow best Federal business practices and its own procedures to minimize the 

risk of unplanned interruptions. CNCS should also schedule the annual testing of its plan to 

recover critical operations should interruptions occur. These plans should consider the 

activities performed at general support facilities, such as data processing centers and 

telecommunications facilities, as well as the activities performed by users of specific
62 Agency Overview FY 2008 CNCS Annual Financial Report

applications. To determine whether recovery plans will work as intended, they should be 

tested periodically in disaster simulation exercises. The following matters were noted during 

our audit: 

 The Corporation’s Continuity of Operation Plan (COOP), was not maintained in 

accordance with the Corporation’s policies and procedures (ISP-P-11-0705). Below are 

issues we noted: 

- The COOP is not updated annually in accordance with the Corporation policy. The 

last COOP update was in July 2006. 

- The COOP is not updated with test results or lessons learned from test exercises. 

 The Corporation has documented its Continuity of Operations Plan (COOP). However, 

the plan has not been tested to execute the scripted responses to emergencies (Levels 

1 through 4) to validate the effectiveness of the COOP and the preparedness of the 

Corporation to carry out its mission in the case of an emergency. 

 In place of testing the COOP, the Corporation placed reliance on the evaluation of its 

COOP as part of the Federal Emergency Management Agency (FEMA) initiated Eagle 

Horizon exercise, dated May 8, 2008. However, the evaluation conducted by a third 

party Federal agency, did not include tests of Levels of Emergency (1 through 4) 

identified in the COOP. The result of the Eagle Horizon exercise was not used to update 

the COOP. 

 The Corporation determined that the most critical function to be tested was the 

Corporation’s ability to communicate through Blackberry devices in the event of a 

disaster. However, no business impact analysis was performed in support of this 

decision, and the COOP was not updated to include this level of testing. 

 In lieu of testing the documented COOP, the Corporation performed two exercises that 

were specific to the BlackBerry devices. The two exercises tested the Corporation’s 

ability to communicate with employees using this device during a disaster. The 

Corporation did not document test results or lessons learned from the tests performed. 

Neither of the BlackBerry exercise responses were scripted within the current COOP. In 

addition, these exercises are not consistent with the Levels of Emergency (1 through 4). 

Recommendations:

1. Management should maintain the COOP and ensure that it is updated at least 

annually, or if major changes occur. 

2. Management should perform testing in accordance with the documented Corporation 

COOP and Federal standards. 

3. Management should document test results or lessons learned from the tests 

performed in order to identify gaps to be used for future updates to the plan. 

4. Management should update its business impact analysis to include the 

communications through BlackBerry devices. 

5. Management should add the results of the BlackBerry exercise to the COOP. 
FY 2008 CNCS Annual Financial Report Agency Overview 63

In addition, we noted other matters involving internal control and its operation that we will report 

to the Corporation management in a separate management letter. 

Agency Comments and Our Evaluation

In commenting on the draft of this report (attached exhibit), Corporation management did not 

concur with the facts and conclusions in our report, but stated that our recommendations “are 

either in line with what we already have in place or can be readily adopted through improved 

documentation”. We did not perform audit procedures on the Corporation’s written response to 

the significant deficiencies and, accordingly, we express no opinion on it. 

This report is intended solely for the information and use of the management of the Corporation, 

the Office of Inspector General, OMB, the Government Accountability Office and Congress, and 

is not intended to be and should not be used by anyone other than these specified parties. 

Calverton, Maryland 

November 14, 2008 
64 Agency Overview FY 2008 CNCS Annual Financial Report

APPENDIX

CORPORATION RESPONSE TO REPORT
FY 2008 CNCS Annual Financial Report Agency Overview 65
66 Agency Overview FY 2008 CNCS Annual Financial Report
GLOSSARY

FY 2008 CNCS Annual Financial Report Glossary 67

ACSI 

American Consumer Satisfaction Index; produced by the Stephen M. Ross Business School at the University of

Michigan; the ACSI measures trends in customer satisfaction. Scores are reported on a scale of 0 to 100, and are based on

econometric data obtained through customer interviews. The Corporation score is a weighted average of program scores

according to appropriations for the fiscal year. The ACSI was adopted in 1999 as the “gold standard” measure for federal

agencies.

AGA

Association of Government Accountants

AMERICA’S PROMISE

America’s Promise is a collaborative network that works to build the character of children and youth through providing

five promises—caring adults in their lives, safe places to learn and grow, a healthy start, an effective education and opportunities to contribute to their communities.

AMERICORPS NCCC

AmeriCorps National Civilian Community Corps; a Corporation program that engages men and women ages 18–24 in a

full-time, team-based, residential program, providing flexible response capabilities to meet community needs.

AMERICORPS VISTA

AmeriCorps Volunteers in Service to America (VISTA); a Corporation program that provides full-time volunteers to

community organizations to help create and expand anti-poverty programs and build the capacity of the organizations

where they serve.

AMERICORPS S/N

AmeriCorps State and National; a Corporation program that provides grants to nonprofit organizations to engage

Americans of all backgrounds in service to address community needs in education, public safety, health, the environment,

and other human needs.

ATTRITION RATES

Attrition rate measures a reduction in number of employees, program members, mentors and other groups as percentages.

For example, the percent of employees who leave the program or agency between the start and end of the year. (The

employee attrition rate is affected by retirements, resignations and deaths, among other factors.) 

BABY BOOMER

A person born in the generation after WWII, between 1946 and 1964.

CEAR

Certificate of Excellence in Accountability Reporting; the Association of Government Accountant’s (AGA) Certificate of

Excellence in Accountability Reporting© Program has been helping federal agencies produce high-quality Performance

and Accountability Reports since 1997. The program was established in conjunction with the Chief Financial Officers

Council and the U.S. Office of Management and Budget to improve financial and program accountability by streamlining

reporting and improving the effectiveness of such reports.

CHILDREN AND YOUTH FROM DISADVANTAGED CIRCUMSTANCES

Children and youth up to age 25 with exception or special needs (as defined in part 2552.12(f ) and (g) of the DVSA regulations, or who are economically disadvantaged and for whom one or more of the following apply: (1) out-of-school

youth who are unemployed; (2) in or aging out of foster care; (3) limited English proficiency; (4) homeless or have run

away from home; (5) at-risk to leave school without a diploma; and (6) former juvenile offenders or at risk of delinquency.

CHILDREN WITH EXCEPTIONAL NEEDS

Children who are developmentally disabled, such as those who are autistic, have cerebral palsy or epilepsy, are visually

impaired, speech impaired, hearing impaired, orthopedic ally impaired, are emotionally disturbed or have a language disorder, specific learning disability, have multiple disabilities, other significant health impairment or have literacy needs.

Existence of a child’s exceptional need shall be verified by an appropriate professional, such as a

physician, psychiatrist, psychologist, registered nurse or licensed practical nurse, speech therapist or

educator before a Foster Grandparent is assigned to the child.
GLOSSARY

CHILDREN WITH SPECIAL NEEDS

Children who are abused or neglected; in need of foster care; adjudicated youth; homeless youths; teenage parents; and

children in need of protective intervention in their homes. Existence of a child’s special need shall be verified by an

appropriate professional before a Foster Grandparent is assigned to the child.

CNCS

Corporation for National and Community Service (the Corporation)

CPS

Current Population Survey; conducted annually by the Census Bureau.

DISADVANTAGED CHILDREN AND YOUTH

Individuals up to age 25 with exceptional or special needs (as defined in part 2552.81 of the DVSA regulations; see

entry for children with exceptional needs and children with special needs for corresponding definitions), or who are economically disadvantaged and for whom one or more of the following apply: 1) out-of-school, including out-of-school

youth who are unemployed; 2) in or aging out of foster care; 3) limited English proficiency; 4) homeless or have run

away from home; 5) at-risk to leave school without a diploma; and 6) former juvenile offenders or at risk of delinquency.

DVSA

Domestic Volunteer Service Act; one of the two Corporation authority statutes (the other being NCSA).

FGP

Foster Grandparent Program (one of three Corporation-sponsored Senior Corps programs); this program provides support and service to children and youth with exceptional needs and engages individuals aged 60 and over in such service.

FISMA

Federal Information Security Management Act; Title III of the E-Government Act, which requires that all federal

agencies provide security for the information and information systems that support the operations and assets of the

agency, including those managed by other agencies or contractors.

FMFIA

Federal Managers’ Financial Integrity Act 

FSR

Financial Status Report 

FY

Fiscal year; October 1, 2007 through September 30, 2008 is the 2008 fiscal year.

GOVERNMENT-WIDE FINANCIAL MANAGEMENT METRICS

Nine financial measures or metrics developed by the CFO’s Council for use government-wide

GPRA

Government Performance and Results Act; the Act seeks to shift the focus of government decision-making and

accountability away from a preoccupation with the activities that are undertaken—such as grants dispensed or inspections made—to a focus on the results of those activities, such as real gains in employability, safety, responsiveness, or

program quality. Under the Act, agencies are to develop multiyear strategic plans, annual performance plans, and annual

performance reports.

GRANT

The Corporation provides monetary aid to states, organizations, educational institutions and others to assist them in

their service-based objectives.

GRANTEE

An organization that has been awarded financial assistance under one of the Corporation’s grant-making programs.

68 Glossary FY 2008 CNCS Annual Financial Report
GLOSSARY

HUMAN CAPITAL SURVEY

The Federal Human Capital Survey is a tool that measures employees’ perceptions of whether and to what extent conditions which characterize successful organizations are present in a federal agency. This ground breaking survey was administered for the first time in 2002 and set a baseline for ongoing Human Capital assessment in the federal government.

IMPROPER PAYMENTS

Improper payments occur when federal funds go to the wrong recipient, the recipient receives the wrong amount of

funds, or the recipient uses the funds improperly.

IMPROPER PAYMENTS INFORMATION ACT

The Improper Payments Information Act of 2002 contains requirements in the areas of improper payment identification and reporting. It requires agency heads to annually review all programs and activities, identify those that may be

susceptible to significant improper payments, estimate annual improper payments in the susceptible programs and activities, and report the results of their improper payment activities. The legislation also requires OMB to prescribe guidance for federal agency use in implementing the act. OMB issued the guidance in May 2003.

INFORMATION TECHNOLOGY PLAN

The Information Technology Plan guides the use of electronic government, aligning information technology investments with the Corporation’s strategic plan.

IT

Information technology

LASSIE

Learn and Serve Survey Information Exchange; the data collection mechanism used to provide information on Learn

and Serve grantees, their projects, and participants.

LEVERAGED COMMUNITY VOLUNTEERS

Participants in Corporation-supported service programs, who were recruited, coordinated, or supported by Corporationfunded programs. This excludes direct AmeriCorps members, Learn and Serve America direct program participants,

and Senior Corps direct volunteers.

LSA

Learn and Serve America; a Corporation program that supports service-learning activities in schools, colleges, and community organizations.

MANAGEMENT METRICS

Measures that reflect the Corporation’s administrative performance.

MATERIAL WEAKNESS

One or more significant deficiencies resulting in more than remote chance that a material misstatement of the financial

statements will not be prevented or detected. Prior to FY 2007, a material weakness was defined as: a severe reportable

condition—controls do not bring risk to low level that fraud or errors cause material financial statement misstatements

and not be detected. See also the terms, “reportable condition” and “significant deficiency.”

MEMBER

A stipended participant in one of the Corporation’s AmeriCorps programs.

MENTORING

Includes formal, sustained relationships established between an older or more experienced person and a younger or less

experienced person for the purpose of academic, social, or career support. This does not include the relationship

between a teacher and his or her students in a classroom setting.

MLK, JR. DAY

Martin Luther King, Jr. Day of Service

FY 2008 CNCS Annual Financial Report Glossary 69
GLOSSARY

MSY

Member Service Year; similar to full-time equivalent (FTE), but reflects the program’s service year.

NAEP

National Assessment of Educational Progress; sponsored by the Department of Education.

NATIONAL SERVICE

Service to local communities throughout the country provided through Corporation programs.

NATIONAL SERVICE TRUST

The National Service Trust (the Trust) was established by the National and Community Service Trust Act of 1993 (42

USC12601, et seq.) to provide funds for education awards for eligible participants who complete AmeriCorps service.

NCCC

See AmeriCorps NCCC

NCSA

National and Community Service Act; one of the two Corporation authority statutes (the other being DVSA).

NEXT GENERATION GRANTS

Grants that foster the expansion of national service by providing seed money to help organizations plan and implement

new service programs.

NOFA

Notice of Funds Availability; the public notification that grants are available, subject to the terms and process to apply

for and implement a grant described in the notification.

OIG

Office of Inspector General

OMB

Office of Management and Budget

ON-SITE COMPLIANCE VISIT

A method by which the Corporation monitors its programs; on-site compliance visits help determine whether activities

are following the requirements stipulated in the grant award, including programmatic and financial requirements.

OUTCOME-BASED METRICS

Measure of the impact of the Corporation’s programs on the end-beneficiaries.

OUTPUT MEASURES

Metrics that directly assess the work that the Corporation carries out, ensuring accountability, for example, the number

of grants or the number of training conducted.

OPM

Office of Personnel Management

PART

Program Assessment Rating Tool; the Office of Management and Budget (OMB) developed the PART as a means of

assessing program performance so that the federal government can achieve better results. By identifying strengths and

weaknesses, a PART review provides information useful to making funding and management decisions. PART looks at

a consistent series of analytical questions, considering all factors that affect and reflect program performance, including

program purpose and design; performance measurement, evaluations, and strategic planning; program management; and

program results.

70 Glossary FY 2008 CNCS Annual Financial Report
GLOSSARY

PARTICIPANT

An individual who participates directly in the Corporation’s program activity, including Learn and Serve America and

the Senior Corps programs, but does not include community volunteers who are recruited or managed by Corporation

members and participants.

PERFORMANCE BASELINE

The data in a set, base year for the Corporation’s performance measures, against which future outcomes and targets can

be compared.

PMDS

Performance Measurement Database System; a system recently developed by the Corporation to track all of its performance from the national to the operational level.

POLF

Points of Light Foundation; the POLF is an organization devoted to helping Americans meet their community needs

through volunteering. POLF helps to leverage volunteers, build the capacity of local groups, develop leaders in their

communities, and raise public awareness. POLF and the Hands On Network recently merged their operation to form a

more comprehensive and effective national network of volunteer centers.

PRESIDENTIAL FREEDOM SCHOLARSHIP

Presidential Freedom Scholarship; a former Corporation program, the Presidential Freedom Scholarships promoted student service and civic engagement. These scholarships recognized high school students for outstanding leadership in

service to their community and neighbors.

PRIVACY ACT ASSESSMENT

Corporation assessments to ensure that new, or newly reformed, financial systems comply with the Privacy Act and do

not compromise the integrity of any material containing personal information.

PROGRAM

One of the Corporation’s established systems of projects and services, including AmeriCorps, Learn and Serve America,

and the Senior Corps.

PROGRAM END-BENEFICIARIES

The specific demographic or organizational group that the Corporation’s programs aim to benefit.

PROJECT

A set of systematic activities and services that the Corporation carries out through its grantees to achieve its goals.

PY

Program year

REPORTABLE CONDITION

Matters that should be reported to audit committee. A significant internal control design or operation deficiency that

could adversely affect ability to initiate, record, process, and report financial data accuracy. Term used prior to FY 2007.

See also “significant deficiency” and “material weakness.”

RSVP

One of three Senior Corps programs run by the Corporation; this program offers “one stop shopping” for volunteers 55

and over who want to find challenging, rewarding, and significant service opportunities in their local communities,

allowing volunteers to choose how, where, and how often they want to serve.

RULEMAKING

The process by which a federal agency creates and updates the formal regulations that will govern the implementation

of its programs; rulemaking generally offers an opportunity to address significant policy issues and provide continuity

for program operations. The rulemaking process involves proposing rules, receiving public comment, and the publishing

of final rules.

FY 2008 CNCS Annual Financial Report Glossary 71
GLOSSARY

SCP

Senior Companion Program (one of the three Corporation Senior Corps programs); this program enables individuals

aged 60 and up to assist frail, homebound individuals with daily living tasks.

SEA

State Education Agency

SERVICE-LEARNING

Service-learning is an educational method by which schools and communities coordinate to allow students to engage in

service activities and help to meet local needs while benefitting their education. Learn and Serve America provides

grants to state education agencies, nonprofit organizations, and higher education institutions for this purpose, facilitating service learning and encouraging civic engagement.

SIGNIFICANT DEFICIENCY

One or more internal control deficiencies that adversely affect(s) an entity’s ability to initiate, authorize, record, process,

or report financial data reliably in accordance with generally accepted accounting principles so that there is more than a

remote chance that misstatement of financial statements that is more than inconsequential will not be prevented or

detected. The term, “significant deficiency,” did not have an official meaning related to the audit of the financial statements. See also “material weakness,” and “reportable condition.”

SITE VISIT

A method by which the Corporation monitors and assesses its programs.

STATE SERVICE COMMISSIONS

Governor-appointed public agencies or private nonprofit organizations that serve at a state level and sub-grant federal

funds to local sources to support service and volunteerism.

STATE ADMINISTRATIVE STANDARDS REVIEWS

Corporation monitoring and assessment of the operations of the public agencies and nonprofit organizations to which it

provides grants.

STRATEGIC HUMAN CAPITAL PLAN

A workforce management strategy developed through discussions with employees, managers and agency officials; it

encourages a results-driven performance culture, open communications, fact-based decision-making, diversity and an

alignment of performance with Corporation goals.

STRENGTHEN AMERICORPS PROGRAM ACT

Signed in July, 2003 by the President, the Strengthen AmeriCorps Program Act established new accounting guidelines

for education awards in the National Service Trust.

SUBGRANTEES

An organization that has been awarded financial assistance by a state service commission national grantee or other

grantee; the state level organization first receives a grant from the federal government, and then redistributes the funds

out to subgrantees.

TARGET

A performance measure goal set for a specific year based on prior year data and anticipated activities, to be compared

against actual performance.

TTA

Training and Technical Assistance

U.S. CFO Council

Organization of the chief financial officers and deputy chief financial officers of the largest federal agencies, senior officials of the Office of Management and Budget and the Department of the Treasury who work collaboratively to oversee

financial management in the government.

VISTA

See AmeriCorps VISTA

72 Glossary FY 2008 CNCS Annual Financial Report
Report Preparation Statement

AmeriCorps NCCC

Erin Dahlin

AmeriCorps State and National

Kim Mansaray

Kristin McSwain

AmeriCorps VISTA

Carol Rogers

Jean Whaley

Chief Financial Officer

William Anderson

Sherry Blue

Stuart Graff

Bob Loring

Idara Nickelson

Tyndall Traversa

Chief Information Officer

Alan Friend

General Counsel

Frank Trinity

Chief Executive Officer

David Eisner

Nicola Goren

Lisa Guccione

Human Capital

Raymond Limon

Learn and Serve America

Elson Nash

Cara Patrick

Inspector General

Carol Bates

Ron Huritz

John Park

Gerald Walpin

Public Affairs

Jacqueline Aker

Matthew Harmon

Amy Mack

Rosemary Shamieh

Research and Policy

Development

Nathan Dietz

Robert Grimm

LaMonica Shelton

This report was prepared by the Office of the Chief Financial Officer. Many others within the

Corporation contributed their time and expertise in providing data, drafts, other information,

and comments. Their responsiveness and support was critical to the preparation of this report.
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“

How wonderful it is that nobody need wait a single moment before starting to

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Anne Frank

”

I am only one; but still I am one. I cannot do everything, but I still can do something.

I will not refuse to do the something I can do.

Helen Keller

The noblest question in the world is, What good can I do in it?

Benjamin Franklin

You must be the change you wish to see in the world.

Mahatma Gandhi