Our Mission: Improve Lives, 

Strengthen Communities, and Foster

Civic Engagement Through Service 

and Volunteering 

FY2009

Annual Financial Report
Purpose of this Report

This Annual Financial Report (AFR) represents an overall assessment of agency performance, including

financial management and audit, and follows reporting requirements set forth in OMB Circular A-11, Section

230. 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) 2011 Congressional Budget Justification/

Annual Performance Report, as specified in the OMB Pilot Performance and Accountability Report process, and

will be available at this same web address. 

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

TTY 202-606-3472

NationalService.gov

info@cns.gov

How to Serve

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 2009 Annual Financial Report, Washington, DC, 20525.

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

provide any feedback regarding this report, please contact the Office of the Chief Financial Officer on (202) 606-5000 or at

the address noted above.

Senior Corps

seniorcorps.gov

AmeriCorps

americorps.gov

Learn and Serve America

learnandserve.gov

CNCS FY 2009 Annual Financial Report

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.
Message­from­the­Acting­Chief­Executive­Officer ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 1

Management’s Discussion and Analysis­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 3

Agency­Overview ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 3

Mission­Performance ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 12

Management­Performance ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 20

Internal­Controls,­Audit­Results,­and­Management­Assurances ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 24

Financial­Management­Metrics­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 27

Analysis­of­Appropriations­and­Financial­Condition­ ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 28

Financial Management­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 31

Message­from­the­Acting­Chief­Financial­Officer ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 31

Financial­Statements­and­Notes ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 33

Independent Auditor’s Report ­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­.­. 55

Other Accompanying Information Available Online

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

Donations­and­Contributions

National­Service­Trust

Improper­Payments

Table of Contents

PART I

PART II

PART III

PART IV

CNCS FY 2009 Annual Financial Report i
ii CNCS FY 2009 Annual Financial Report

Office of Management and Budget PAR Pilot Program

For FY 2009, 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) and the agency's

forthcoming FY 2009 Annual Performance Report , which will be a component of the FY 2011

Congressional Budget Justification to be provided in February 2010. These documents will be available

on the Corporation's website at: http://www.nationalservice.gov/about/role_impact/performance.asp.

Participation in the pilot program enables the Corporation to report performance data later in the year

when agency data is more complete. 

Data Validity

The Corporation’s program performance measures reported in this report are derived from two sources –

agency grantees and other federal agencies. Financial performance measures are derived within the agency

based on data in the financial system of record. No matter the source, the Corporation provides financial and

performance data that is complete and reliable, except where specifically noted. In FY 2009, 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. 

Due to the timing of the agency’s grant cycles, most FY 2009 outcomes for Corporation measures included in

this report are estimated. Final actual data will be available and reported in the FY 2011 Congressional

Budget Justification/Annual Performance Report. In addition, a full analysis of outcomes and trends is not

possible across most national measures due to the timing and frequency of data collection by other federal

agencies, particularly the Census Bureau. These limitations are noted in the report.
The Corporation for National and Community Service is pleased to present

our Fiscal Year (FY) 2009 Annual Financial Report, a summary of our

performance and financial condition in relation to our mission and goals. 

This is an exciting moment for service and volunteering, as Americans

respond to the challenges of a serious economic downturn by reaching out

to help their neighbors and communities. The mission of the Corporation is

to foster and support that spirit of civic engagement through service and

volunteering. FY 2009 was a year of major transition, growth and progress for us and the programs we support,

and I am proud to report that in the midst of such an environment, this performance and financial review

found us to be a well-managed agency, effectively moving toward accomplishing the goals set for us by

Congress and the Obama Administration with accountability and appropriate planning for continued growth.

Corporation Performance

Last fiscal year, the Corporation awarded and oversaw more than $700 million in grants and engaged an

estimated 5.5 million Americans in service, directly or by leveraging community volunteers. This is the largest

total in the agency’s history, and includes a record 1 million volunteers on the Martin Luther King, Jr. Day of

Service, and the largest-ever class of AmeriCorps members. That class was partly funded by the American

Recovery and Reinvestment Act, which the Corporation implemented quickly and carefully, enrolling the first

members two months after the law was signed and the majority before the end of the fiscal year.

The Corporation and its programs continued to pursue the ambitious goals set forth in the agency’s five-year

Strategic Plan. Participants mentored an estimated 1.1 million children, including 90,000 from families of

prisoners, and enabled 835,000 children and youth from disadvantaged circumstances to serve their

communities, an increase of more than 30 percent over the previous year. The number of Baby Boomers

serving also jumped significantly, from 333,000 to 357,000, and we provided independent living services to

more than 800,000 elderly and disabled clients.

Edward M. Kennedy Serve America Act

In the midst of this all this activity, the passage of the landmark Edward M. Kennedy Serve America Act by

broad bipartisan majorities marked the greatest expansion of national service in generations, putting us on a

path to 250,000 AmeriCorps positions by 2017. Among its many other provisions, the Act also charges the

Corporation and our partners to dramatically expand opportunities for Americans to serve, to focus on critical

national issue areas, to be a catalyst for social innovation, and to support the nonprofit sector in a variety of

new ways. To facilitate the process, the new law also expands our existing programs and creates new initiatives

designed to strengthen our nation’s underlying civic infrastructure.

Immediately after passage of the legislation, we began a lengthy public input process, receiving thousands of

comments through listening sessions, conference calls, emails, and web postings, in order to inform the

implementation process and so that we could move quickly once the new law took effect on October 1. We are

now heavily focused on implementation of the new law, led by an executive steering committee consisting of

CNCS FY 2009 Annual Financial Report 1

Message from the CEO PART I

Message from the

Acting Chief Executive Officer

November 2009
our most senior managers and cross-agency working groups focusing on specific program areas and crosscutting issues such as technology, training and performance measures. We have already released funding

guidelines for several FY 2010 grant competitions, issued a first set of regulation changes and program

guidance, and developed the implementation plan for new initiatives authorized under the Act.

One of the key provisions of the Serve America Act calls for an increased focus on measuring impact on key

national challenges, using new national performance measures and other means. Working with our Board of

Directors, we are in the process of developing these measures and integrating them into our next five-year

Strategic Plan. 

Corporation Management

Management reform remains our main focus, and we have continued to make improvements across the board.

For the 10th consecutive year, we have received a clean, unqualified opinion on financial statements. This

year’s audit reports no material weaknesses or significant deficiencies. Our year-end budget close out went as

scheduled and all accounts came in on budget.

Although we are not covered by the CFO Act, the Corporation measures itself against the same governmentwide financial management metrics. After a great deal of work over the past five years, we are now ahead of the

majority of other federal agencies. From September 2004 through February 2005, the Corporation achieved

“green” on only one out of 11 of these metrics; for FY 2009, the yearly average of “green” scores was 69 percent.

Through extensive work on technology, we removed a significant deficiency identified in FY 2008, executing a

contract with a managed services provider to host our IT systems off-site in order to ensure continued

operations of our technology for both our staff and our field. 

About 94 cents of each appropriated dollar went to program grants and assistance to states, tribes, local

communities and nonprofit grantees. 

Our previous authorizing statute at times forced us into silos and inefficient ways of doing business, but reforms

in the Serve America Act will enable us to make our structure more efficient. Among those reforms are

consolidated application and reporting procedures for our grantees, a streamlined grantmaking process, and the

flexibility to provide comprehensive training and technical assistance across all of the Corporation’s programs. 

These statutory reforms, coupled with the strong leadership of a new CEO, a highly-focused Board of Directors,

a hardworking and dedicated staff and the outside expertise of an organizational and management

consultant, will help the Corporation achieve even higher levels of efficiency, cost effectiveness and

management excellence as we confront America’s toughest challenges through service. 

In Service,

Nicole O. Goren

Acting Chief Executive Officer

2 CNCS FY 2009 Annual Financial Report

PART I Message from the CEO
Agency Overview

The Corporation for National and Community Service (the Corporation) plays a vital role in supporting the American

culture of citizenship, service, and responsibility. As the nation’s largest grant maker in the area of service, the

Corporation promotes volunteering and civic engagement around the country and helps organizations build their

capacity to engage volunteers effectively. Members and volunteers who serve in Corporation programs provide vital

assistance to their communities through local institutions. These institutions include: nonprofits, K-12 schools,

institutions of higher learning, faith-based and other community organizations, as well as local and state governments.

In FY 2009, the Corporation received an appropriation of about $890 million, an increase of roughly $34 million or 

3.9 percent from the prior year. Roughly $646 million or 63 percent of federal funds awarded by Corporation’s major

programs are distributed either using a statutory formula based on population or through a competitive process

aimed at identifying promising and successful initiatives. About 94 cents of each appropriated dollar goes towards

program grants and assistance to States, tribes, local communities, and nonprofit grantees. The remaining funding

supports agency and program administration, including salaries and IT costs.

For more budget information visit: http://www.nationalservice.gov/about/budget/index.asp

CNCS FY 2009 Annual Financial Report 3

Management’s Discussion & Analysis PART I

FY 2009 FY 2010

FY 2006 FY 2007 FY 2008 FY 2009 Recovery President’s

Account Enacted Enacted Enacted Enacted Act Budget

Operating Expenses $837,936 $809,260 $782,744 $811,639 $194,000 $1,053,316

Learn­and­Serve­America 37,125 37,125 37,459 37,459 39,500

AmeriCorps­NCCCI 36,730 26,789 23,782 27,500 26,300

AmeriCorps­State­and­National 264,825 264,825 256,805 271,196 89,000 372,547

AmeriCorps­VISTA 95,464 95,468 93,800 96,050 65,000 97,932

VISTA­Advance­Payment­Revolving­Fund 3,500

National­Service­Trust 138,600 117,720 122,539 131,075 40,000 195,637

State­Commission­Admin­Grants 12,516 12,516 11,790 11,790 16,000

Partnership­Grants 14,850 NA NA NA NA

Senior­Corps:

RSVP 59,685 59,685 58,642 58,642 63,000

Foster­Grandparents­Program 110,937 110,937 108,999 108,999 110,900

Senior­Companion­Program 46,964 46,964 46,144 46,144 47,000

Innovation,­Demonstration,­and­AssistanceII 16,280 29,771 13,980 14,753 65,500

Evaluation 3,960 3,960 3,891 3,891 6,000

Training/Technical­AssistanceIII n/a n/a n/a n/a 8,000

Disability­Grants n/a n/a 4,913 4,140 5,000

Salaries and ExpensesIV $66,083 $70,324 $67,759 $71,715 $6,000 $88,000

Office of the Inspector General $5,940 $4,693 $5,828 $6,512 $1,000 $7,700

Total $909,959 $884,277 $856,331 $889,866 $201,000 $1,149,016

I Includes­$10­million­in­FY­2006­fromP.L.­109-234­for­Hurricane­Katrinadisaster­relief.

II Reflects­a­separate­allocation­of­funding

for­Disability­Grants­as­provided­bythe­Serve­America­Act.­Total­fundingfor­Innovation,­Demonstration,­and

Assistance­and­Disability­Grants­inFY­2008­and­FY­2009­is­equal­to­

$18,893,­which­was­the­amountallocated­to­Innovation,­Demonstration,

and­Assistance­activities­within­the

enacted­appropriation­in­those­years.

III Reflects­a­separate­allocation­of­funding

for­Training­&­Technical­Assistance­

(Subtitle­J)­as­provided­by­the­Serve

America­Act.­Training­and­technical

assistance­activities­were­previously

funded­by­an­allocation­from­each­ofthe­agency’s­programs.­The­estimated

budget­for­FY­2008­and­FY­2009­is­

$7.1­million­for­each­year.

IV Pursuant­to­P.L.­110-28,­$1.36­millionwas­transferred­from­Innovation,

Demonstration,­and­Assistance­to­the

Salaries­and­Expenses­account­in­FY­2007.

Table 1.Funding History(dollars­in­thousands)

Discussion and Analysis

Management’s
PART I Management’s Discussion & Analysis

4 CNCS FY 2009 Annual Financial Report

History & Legislation

Congress created the Corporation in 1993, merging the work and staff of two separate agencies that provided

opportunities for Americans of all ages and backgrounds to serve their communities:

■ ACTION – Administered Volunteers in Service to America (VISTA), created by the Economic Opportunity

Act of 1964, as well as the Retired and Senior Volunteer Program (RSVP), the Foster Grandparents Program,

the Senior Companions Program, which were all created in 1974 under the Domestic Volunteer Service Act.

■ Commission on National and Community Service – Administered programs for students from

kindergarten through college (predecessor of Learn and Serve America); intensive service programs for

adults 18 and older (predecessor to AmeriCorps State and National); and national service demonstration

models, including the National Civilian Community Corps (NCCC) – all created in 1990 under the National

and Community Service Act.

At its inception, the Corporation was directed to manage three main programs: 

■ The newly created Senior Corps, which incorporated the Foster Grandparents, RSVP, and Senior

Companion Programs;

■ The newly created AmeriCorps, which incorporated the VISTA, State and National, and NCCC ; and

■ Learn and Serve America.

Reauthorization

Enacted on April 21, 2009, the Edward M. Kennedy Serve America Act reauthorized and expanded the mission

and operation of the Corporation. It also took important steps to strengthen the management capacity of the

Corporation to ensure that it can support an expansion while maintaining excellence in service. 

The Kennedy Serve America Act authorized a number of programs under the new Innovative and CommunityBased Service-Learning Programs and Research category for Learn and Serve America. These new authorized

options include Summer of Service, Semester of Service, Youth Engagement Zones and Research. It also

requires a 10-year longitudinal study on the impact of the service-learning activities carried out under the Act.

A summary of its provisions follow.

Increasing Opportunities for Individuals of All Ages to Serve

■ Puts young people onto a path of lifelong volunteering through service-learning and strengthens overall

focus on disadvantaged youth. 

■ Dramatically increases intensive service opportunities in the AmeriCorps program by setting it on a path of

expansion from 75,000 positions annually to 250,000 by 2017, with a focus on education, health, clean

energy, veterans, economic opportunity and other national priorities. Ties the Segal AmeriCorps Education

Award to the maximum Pell Grant level (increased in FY 2010 to $5,350 and set to increase over time).

■ Improves service options for older Americans by expanding age and income eligibility for volunteers in

the Foster Grandparent and Senior Companion programs, and authorizes other programs for older

Americans. Also permits individuals age 55 and older serving in most AmeriCorps positions to transfer

their education award to a child or grandchild.

■ Encourages millions of working individuals to serve by establishing a nationwide Call to Service Campaign

and a September 11 national day of service, and invests in the nonprofit sector’s capacity to recruit and

manage volunteers through a new Volunteer Generation Fund.
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 5

Supporting Innovation and Strengthening the Nonprofit Sector

■ Authorizes Social Innovation Fund grants to expand proven initiatives and provide seed funding to

programs and non-profits that have demonstrated results and the ability to grow. 

■ Establishes Volunteer Generation Fund grants to award grants to states and nonprofits to recruit, manage,

and support volunteers and strengthen the nation’s volunteer infrastructure. 

Strengthening Management, Cost-Effectiveness, and Accountability

■ Merges funding streams, expands the use of simplified, fixed amount grants, and gives the Corporation

flexibility to consolidate application and reporting requirements. Increases support for State Commissions

on national and community service. Bolsters the capacity and duties of the Corporation’s Board of

Directors.

■ Ensures that programs receiving assistance under national service laws are continuously evaluated for

effectiveness in achieving performance and cost goals.

■ Authorizes a Civic Health Assessment comprising indicators relating to volunteering, voting, charitable

giving, and interest in public service in order to evaluate and compare the civic health of communities.

Organizational Structure

Headquartered in Washington, D.C., the Corporation is an independent federal agency with a Board of

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

President and confirmed by the Senate. Under the Corporation’s recent reauthorization, the Chief Financial

Officer (CFO) is to be appointed by the CEO. In addition, a Chief of Program Operations (CPO) manages the

agency’s programs, including the program officers who work in state offices. 

The CEO provides overall management of the agency’s programs and operations, including more than 500

employees who work throughout the United States and its territories. The Board of Directors works closely with

the CEO to set policies and direction for 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 NCCC campuses and one Field Financial Management Center in

Philadelphia, PA. 

Additional information on the Kennedy Serve America Act can be found at:

Corporation’s website – http://www.nationalservice.gov/about/newsroom/releases.asp

House of Representative, Education and Labor Committee – http://edlabor.house.gov/ 

Senate, Health, Education, Labor and Pensions Committee – http://help.senate.gov/
* Presidential­Appointments­with­Senate­confirmation

** In­accordance­with­the­Inspector­General­Act,­Section­3a

*** The­director­has­independent­authority­to­advise­the­CEO

on­pre-complaint­and­complaint­issues.­The­CEOcontributes­to­the­director’s­performance­review.

Figure 1.Corporation Organizational Chart

Stephen­Goldsmith,­Vice­Chair

Indianapolis,­IN

Term:­9/25/2006­-­10/6/2010

Julie­Fisher­Cummings

Detroit,­MI

Term:­11/19/2007­–­9/14/2011

Mark­D.­Gearan

Geneva,­NY

Term:­11/19/2007­–­12/1/2010

Hyepin­Im

Los­Angeles,­CA

Term:­10/7/2008­-­10/6/2013

James­Palmer

Tustin,­CA

Term:­7/3/2007­-­10/6/2011

Board of Directors

Alan­D.­Solomont,­Chair

Weston,­MA

Term:­11/19/2007­–­10/6/2009

Stan­Soloway

Washington,­DC

Term:­7/3/2007­-­10/6/2011

Eric­J.­Tanenblatt

Atlanta,­GA

Term:­6/6/2008­-­10/6/2012

Laysha­Ward

Minneapolis,­MN

Term:­6/6/2008­-­12/27/2012

Corporate Relations

R.­Taylor­(Acting)

General Counsel

F.­Trinity

Government Relations

R.­Glickman

Chief Financial Officer

W.­Anderson­(Acting)

Chief Executive Officer*

Nicola­Goren­(Acting)

Inspector General*

Kenneth­Bach­(Acting)

Chief of Program Operations K.­McSwain

Financial Management

W.­Anderson

Grants & Field 

Financial Mgmt.

R.­Gaudio

Human Capital R.­Limon

Civil Rights***

L.­Honnoll

Information Technology

M.­Cadagin

Public Affairs

R.­Schmelzer

AmeriCorps

State & Nat'l

L.­Nembhard­(Acting)

AmeriCorps

NCCC

M.­Herrington­(Acting)

AmeriCorps

VISTA

P.­Davis­(Acting)

Grants Oversight & 

Monitoring

A.­Robinson

Field Liaison

M.­Berning

47 Field Offices

(serving­all­U.S.­

States­&­territories)

Emergency 

Management

C.­Clay

Senior Corps

A.­Roberts­(Acting)

Learn & Serve

E.­Nash­(Acting)

Faith Based & 

Neighborhood 

Partnerships

J.­Kelly

Grants Policy & 

Operations

V.­Garibaldi­(Acting)

Leadership 

Development & 

Training

G.­Van­der­Veer

Research & Policy

Development R.­Grimm

**

PART I Management’s Discussion & Analysis

6 CNCS FY 2009 Annual Financial Report
Figure 2.Corporation Field Offices

ALABAMA

ARIZONA ARKANSAS

CALIFORNIA

COLORADO

CONNECTICUT

DELAWARE

FLORIDA

GEORGIA

IDAHO

ILLINOIS INDIANA

IOWA

KANSAS

KENTUCKY

LOUISIANA

MAINE

MARYLAND

MASSACHUSETTS

MICHIGAN

MINNESOTA

MISSISSIPPI

MISSOURI

MONTANA

NEBRASKA NEVADA

NEW HAMPSHIRE

NEW JERSEY

NEW MEXICO

NEW YORK

NORTH CAROLINA

NORTH DAKOTA

OHIO

OKLAHOMA

OREGON

PENNSYLVANIA

RHODE ISLAND

SOUTH CAROLINA

SOUTH

DAKOTA

TENNESSEE

TEXAS

ALASKA

HAWAII

UTAH

VERMONT

VIRGINIA

WASHINGTON

WEST

VIRGINIA

WISCONSIN

WYOMING

CNCS Ofices

FFMC

NCCC­Campus

State­Office

Management’s Discussion & Analysis PART II

CNCS FY 2009 Annual Financial Report 7

The agency also works through state-sponsored organizations:

■ State Service Commissions receive Corporation funding to support AmeriCorps programs through

annual grant competitions and formula allotments 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.
PART I Management’s Discussion & Analysis

8 CNCS FY 2009 Annual Financial Report

Corporation Programs and Initiatives

The Corporation operates three major sets of programs – Senior Corps, AmeriCorps, and Learn and Serve

America – and a number of smaller programs and initiatives. These programs provide a range of service

opportunities and are united in a common purpose: engaging individuals in volunteering to improve 

their communities. 

Senior Corps

Senior Corps is a network of about 1,200 organizations sponsoring over 1,300 projects funded by Corporation

and non-federal resources that tap the experience, skills, and talents of Americans age 55 and over to meet a

wide range of community needs. In FY 2009, an estimated 472,000 volunteers served through Senior Corps

three programs: 

■ RSVP – 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 and are provided the most

flexibility in choosing service opportunities.

■ Foster Grandparent Program (FGP) – Volunteers provide 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 services, 15 to 40 hours per week.

Volunteers must meet income eligibility requirements to receive a monetary stipend of $2.65 per hour. 

■ Senior Companion Program (SCP) – Volunteers age 60 and older to assist homebound seniors and other

adults with daily living tasks, which enables them to remain living independently in their own homes.

Senior Companions serve 15 to 40 hours per week and receive training and assistance to improve their

service. Those who meet income requirements receive a monetary stipend of $2.65 per hour.

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, as well as state and local governments. Since 1994,

more than 574,000 Americans have served 718 million hours through AmeriCorps. In FY 2009, roughly 75,000

AmeriCorps members served in communities across the nation and mobilized over 2.2 million additional

volunteers. Upon completion of their service term, AmeriCorps members are eligible to earn an education

award to help finance their education or repay qualified student loans and eligible interest expenses. 

AmeriCorps includes three programs:

■ State and National provides grants to nonprofit, public, and other organizations to engage Americans of

all backgrounds in service to address community needs.

■ Volunteers in Service to America (VISTA) provides full-time volunteers to community organizations to

help create and expand anti-poverty programs.

■ National Civilian Community Corps (NCCC) is a residential, team-based program that provides

leadership and service opportunities for young Americans between the ages of 18 and 24, to address

pressing national and community needs in all 50 states. The program provides rigorous training that

prepares its members to serve as first responders and as force multipliers who can effectively coordinate

and manage episodic volunteers.
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 9

Learn and Serve America

Learn and Serve America provides an “on-ramp” to a lifetime of civic engagement for more than 1 million

students each year. The program awards grants to state education agencies, schools, nonprofit groups, and

institutions of higher education to engage students in service-learning activities that link academic

achievement and community service. As part of its goal of making student service and service-learning a

common practice, Learn and Serve America provides resources to teachers, faculty members, schools, and

community groups across the country.

Other Corporation Programs and Initiatives

A number of smaller grant programs also achieve agency goals. Grants made in honor of Martin Luther King Jr.

support community organizations in their efforts to engage local volunteers in specific short-term community

projects throughout the year and on the MLK Jr. Day of Service. The Corporation also:

■ Provides grants aimed at engaging individuals with disabilities in service and extensive training and

technical assistance to nonprofit and other organizations; 

■ Operates a Resource Center aimed at expanding the volunteer capacity of nonprofits; 

■ Convenes a national conference on volunteering and service; and

■ Honors colleges and universities through the President’s Higher Education Community Service Honor Roll

for the commitment of their students, faculty, and staff to community service.

Strategic Initiatives

In February 2006, the Corporation adopted a Strategic Plan for FY 2006–FY 2010. The full plan can be viewed at

http://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 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 2.)

■ 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

engage such youth in service;

■ Engage Students in Communities. Increase volunteering among all students from kindergarten through

college and expand the use of service-learning in schools; 

■ Harness Baby Boomers’ Experience. Expand volunteering among Baby Boomers and provide frail

elderly people with help to remain living independently; and

■ Support Disaster Preparedness and Response. Build national, state, and local disaster response

capacity by using volunteers.
Strategic Goals

To achieve its mission, the Corporation works through its Senior Corps, AmeriCorps, and Learn and Serve

America 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.

10 CNCS FY 2009 Annual Financial Report

PART I Management’s Discussion & Analysis

Strategic Goals Strategic Initiatives

Mobilize More Ensure a Brighter Future Engage Students Harness Baby Support Disaster

Volunteers for All of America’s Youth in Communities Boomers’ Experience Preparedness and Response

Meet Critical Needs in 

Local Communities 

Through Service

Empower­local­citizensto­meet­their­own

communities’­most

pressing­needs­through

effective­volunteer

engagement­and

management

Improve­the­circumstance

and­prospects­for

disadvantaged­youth

through­mentoring­an

engaging­disadvantaged

youth­in­service

Turn­students­into­a­key

resource­to­meet­the­most

pressing­needs­of­the

communities­in­whichthey­live

Utilize­the­large­Boomer

population­as­a­major

asset­in­responding­to

communities’­most

pressing­needs,

particularly­needs

exacerbated­by­the­aging

of­the­population

Mobilize­national­service

participants­and­volunteers

to­help­communities­prepare

for­disasters­and­to­recruit,

manage,­and­coordinate

otherwise­unaffiliated

volunteers­in­immediate

relief­efforts­and­long-term

community­recovery

Strengthen the Capacity

of Communities to

Engage Citizens

Provide­volunteer­management­support,­best

practices,­and­partnerships

to­dramatically­expand

community­capacity­to­recruit,­manage,­and­retain

volunteers.

Build­the­capacity­of

communities­across

America­to­recruit,­train,

match­and­support

millions­of­mentors­and­to

engage­and­support

millions­of­disadvantaged

youth­in­service

Strengthen­the­connection

and­natural­alliance

between­key­community

organization­and

institution,­and­the­local

school­and­students,­and

focus­on­a­school­goal­of

creating­more­connected,

engaged­citizens

Expand­nonprofit­capacity

to­engage,­manage,­and

retrain­Baby­Boomer

volunteers

Build­the­capacity­of

communities­to­respond­to

disasters­rapidly­and

effectively­by­strengthening

partnerships­among­state,

local,­and­national

governments,­nonprofits,

and­profit-making

organizations

Engage Americans in a 

Lifetime of Volunteering

and Service

Promote­service­as­a

regular­part­of­all

Americans’­lives

Make­mentoring­the

epitome­of­ongoing,

engaged­service,­and

support­the­transition­from

episodic­volunteering­to

committed­mentoring

Maximize­the­opportunities­for­student­service­and

service-learning­to­become

the­“on-ramp”­to­a­lifetime

of­civic­engagement­for

young­Americans

Attract­Boomers­to­service

now­so­that­they­will­stay

engaged­as­they­pass­the

traditional­age­of

retirement­and­reaffirm

the­importance­of­civic

engagement­to

subsequent­generations

Develop­disaster

preparedness­and­response

resources­and­inventories­to

enable­immediate­disaster

response­and­long-term

recovery

Table 2.Contributions of Each Strategic Initiative to the Strategic Goals
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. 

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

The Corporations Performance Management Sysyem

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.

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 grantees, external

stakeholders, and volunteers across the country. 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.

Goals

Strategic Initiatives

National Measures

Corporation Measures

Program Measures

Operating Plans

Individual Performance Plans

CNCS FY 2009 Annual Financial Report 11

Management’s Discussion & Analysis PART I

Figure 3.Corporate Performance Planning
PART I Management’s Discussion & Analysis

12 CNCS FY 2009 Annual Financial Report

Mission Performance

The following are the Corporation’s performance measures for its national and agency goals, based on the

current strategic plan. The Corporation is updating its strategic plan and also planning the implementation of

the Kennedy Serve America Act. As a result, this report does not include targets for FY 2011. 

The Corporation aims to demonstrate the impact of its investments in communities and organizations with

clear and quantifiable results. Measuring this impact has presented challenges in the past, due in part to the

broad nature of the agency’s programs in terms of geographic dispersion, range of needs addressed, the

number and type of organizations supported, and the varying role of the volunteer. Nonetheless, the agency’s

new strategic plan will have new and revised strategic goals and initiatives, performance measures and targets

for all programs, and provide the framework for gathering the information necessary to assess the agency’s

ultimate impact.

In FY 2009, the Corporation supported a record number of people and organizations across America, using

civic engagement as a key element of the federal government’s response to the economic downturn and other

serious challenges facing the nation. The Corporation awarded and oversaw over $700 million in grants and

engaged an estimated 5.5 million individuals in results-driven service in FY 2009. 

As shown in Table 3, most FY 2009 data for the Corporation’s national goals will be unavailable until 2010. The

most current available data shows that 61.8 million Americans volunteered through organizations between

September 2007 and September 2008, including three million college students and 22.6 million Baby Boomers.

Of particular note, volunteering among older Americans (age 65 and older) is on the rise, having increased

about seven percentage points between 1989 and 2008, according to figures from the Current Population

Survey, U.S. Census Bureau. 

In fulfilling its mission and strategic plan in FY 2009, the Corporation continued to act as a catalyst by providing

targeted, critical support through its volunteers and grantees that, in turn, delivered much-needed services to

communities throughout the country. The agency:

■ Enabled 835,000 children and youth from disadvantaged circumstances to serve their communities

through Corporation-sponsored programs; 

■ Provided mentoring and other support services to more than 89,000 children of prisoners;

■ Delivered independent living services – including direct support and respite for informal caregivers – to

807,000 clients; and

■ Engaged over 544,000 college students in service.
Table 3. Performance Trends for National GoalsI

FY 2006 FY 2007 FY 2008 FY 2008 FY 2009 FY 2009 FY 2010

Strategic Initiative and Performance Measure Actual Actual Target Actual Target Actual Target

Number­of­Americans­volunteering­annually 61.2 60.8 71.3 61.8 73.5 Data­available 75.0

through­an­organization­(in­millions)II 1/10

Number­of­Americans­regularly­ 30.9 32.1 39.2 32.3 41.0 Data­available 43.0

volunteering­(in­millions)III 10/10

Ensure a Brighter Future for All of America's Youth

Number­of­Americans­who­mentor­ 2.0 2.2 NA 2.3 2.2 Data­available 2.2

each­year­(in­millions)IV 1/10

Number­of­children­and­youth­of­incarcerated 30,200 93,400­(est.) 40,000 NA 96,400 NA 97,300

parents­mentored­through­federal­programsV

Number­of­teens­from­disadvantaged­ 2.6 NA 2.8 Available­ NA NA 3.0

circumstances­engaged­in­service­in­their 12/09

communities­(in­million)VI

Engage Students in Communities

Number­of­college­students­who­ 2.8 2.7 4.3 3.0 4.7 Data­available 5.0

volunteers­(in­millions) 10/10

Percent­of­Federal­Work­Study­funds­devoted­ 15% 15% 18% 16% 19% Data­available 20%

to­community­serviceVII 5/10

Percent­of­America's­public­kindergarten­ NA NA NA NA NA NA NA

through­grade­12­schools­that­haveincorporated­service-learning­into­theircurriculaVIII

Harness Baby Boomers' Experience

Number­of­Baby­Boomers­ 23.6 23.1 27.1 22.6 27.8 Data­available 28.7

volunteering­(in­millions) 10/10

Support Disaster Preparedness and ResponseIX Measure under development

I NA­=­Data­not­available.­Following­a­careful­review­of­the­data,­some­adjustments­have­been­made­to­several­measures­to­more­accurately­reflect­the­anticipated­targets­and­outcomes.­As­a­result,­the

figures­shown­in­this­document­will­differ­from­those­previously­reported.­For­more­information­on­any­of­the­Corporation's­measures,­please­contact­the­Office­of­the­Chief­Financial­Officer­on­202-606-5000. II Data­for­this­measure­is­available­through­the­"Current­Population­Survey:­Supplement­on­Volunteering"­available­at­www.bls.gov/new.release/volun.toc.htm III Defined­as­those­volunteering­at­any­level­of­intensity­(e.g.­more­than­1­hour­per­week)­for­12­or­more­weeks­during­the­year.­­ IV In­prior­years,­the­Corporation­planned­to­measure­the­"Number­of­Americans­who­mentors­each­year­(in­millions)."­Data­is­not­available­for­this­measure­as­currently­written;­therefore,­the­wording­of­the

measure­has­been­modified­in­the­following­way­to­reflect­the­"Number­of­mentors­serving­a­minimum­of­36­hours­each­year­(about­one­hour­per­school­week)." V Data­provided­by­the­Corporation­and­other­federal­agencies,­including­the­Department­of­Health­and­Human­Services,­and­the­Department­of­Justice.­­ VI The­description­of­this­measure­has­been­modified­to­more­closely­reflect­the­data­collected­through­the­2005­Youth­Volunteering­and­Civic­Engagement­Survey,­conducted­by­the­Corporation,­in

collaboration­with­the­U.S.­Census­Bureau­and­Independent­Sector.­This­data­represents­the­responses­of­youth­aged­12-18­who­met­the­family­income­2005­federal­poverty­guidelines,­as­set­by­the

Department­of­Health­and­Human­Services­(see:­www.aspe.hhs.gov/poverty/05poverty/shtml).­The­prior­description­read:­"Number­of­children­and­youth..."­This­data­is­available­every­two­years. VII Historical­data­revised­by­the­Department­of­Education. VIII This­measurement­has­only­been­produced­twice­in­the­last­ten­years­and­is­not­an­annual­or­biannual­indicator.­There­are­currently­no­plans­to­continue­it. IX No­adequate­national­measure­has­been­identified­and­therefore­developed­for­this­initiative.­This­initiative­and­possible­measures­is­being­reexamined­as­part­of­the­development­of­the­Corporation’s­next

strategic­plan.

Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 13
Table 4. Performance Trends for Corporation GoalsI

FY 2006 FY 2007 FY 2008 FY 2008 FY 2009 FY 2009 FY 2010

Strategic Initiative and Performance Measure Actual Actual Target Actual Target Actual Target

Mobilize More Volunteers

Number­of­volunteers­supported­by­Corporation- 3.7 3.9 3.6 4.0 4.4 5.5­(est.) 5.5

sponsored­programs­(including­Corporationsprogram­members,­participants,­volunteers,­andleveraged­community­volunteers­)­(in­millions)

Percent­of­former­AmeriCorps­members­who­ NA 64% NA NA NA NA NA

continue­to­volunteer­in­their­communities­aftertheir­term­of­serviceII

Ensure a Brighter Future for All of America's Youth

Number­of­children­and­youth­from­disadvantaged­ NA 0.6 0.3 1.3 0.9 1.1­(est.) 1.1

circumstances­mentored­through­Corporationprograms­(in­millions)IV

Number­of­children­of­prisoner­mentored­through­ 26,000 47,000 46,700 90,094 89,800 89,800­(est.) 92,460

Corporation­programs

Number­of­children­and­youth­from­disadvantaged­ 465,000 663,000 556,000 614,604 570,300 835,445­(est.) 687,400

circumstances­serving­their­communities­throughCorporation-sponsored­programsIII

Engage Students in Communities

Number­of­college­students­serving­through­ 108,000 199,000 187,000 561,152 529,000 544,200­(est.) 539,000

Corporation­programs

Number­of­higher­education­institutions­matching­ 57 76 67 77 74 87 88

the­AmeriCorps­Education­Award

Percentage­of­organization­funded­through­Learn­ 23% 22% 28% 23% 29% 25%­(est.) 30%

and­Serve­America­grant­programs­that­haveadopted­at­least­six­of­nine­institutional­supportsleading­to­sustainability­for­service-learning

Harness Baby Boomers' Experience

Number­of­Baby­Boomer­volunteers­generated­ NA 230,000 333,540 333,606 356,590 357,890­(est.) 390,790

through­Corporation-sponsored­programsIV

Number­of­clients­who­receive­independent­living­ 413,000 470,000 675,100 813,302 811,500 807,200­(est.) 879,500

services,­including­direct­support­and­respite­forinformal­caregivers­through­Corporationsponsored­programsV

Support Disaster Preparedness and ResponseVI

Number­of­Corporation­program­participants­who­ NA NA NA NA NA NA NA

have­been­certified­in­disaster-related­training­

(in­thousands)

Number­of­Corporation­program­participants­who­ NA NA NA NA NA NA NA

are­available­for­deployment­in­support­of­local,­

state­or­other­disaster­response.

Number­of­community­members­who­receive­ NA NA NA NA NA NA NA

disaster­preparedness­information­or­trainingthrough­Corporation­sponsored­programs.

I NA­=­Data­not­available.­Following­a­careful­review­of­the­data,­some­adjustments­have­been­made­to­several­measures­to­more­accurately­reflect­the­anticipated­targets­and­outcomes.­As­a­result,­the­figures­shown­in

this­document­will­differ­from­those­previously­reported.­For­more­information­on­any­of­the­Corporation's­measures,­please­contact­the­Office­of­the­Chief­Financial­Officer­on­202-606-5000. II The­data­source­for­this­measure­was­changed­to­the­AmeriCorps­Longitudinal­survey­in­order­to­provide­consistently­comparable­data­from­year-to-year,­thus­resulting­in­data­not­being­available­for­a­number­of­prior

years­and­changes­to­the­outyear­targets.­Currently,­there­are­no­plans­to­continue­the­survey. III The­definition­of­disadvantaged­children­and­youth­receiving­Corporation­mentoring­services­or­participating­in­a­Corporation-sponsored­program­is­based­on­program­statutes­and­regulations.­This­group­includes­those

up­to­age­25­with­exceptional­and­special­needs­(as­defined­in­the­DVSA­regulations,­45­CFR­2552.81)­or­who­are­economically­disadvantaged­and­for­whom­one­or­more­of­the­following­apply:­1)­out-of-school,

including­out-of-school­youth­who­are­unemployed;­2)­in­or­aging­out­of­foster­care;­3)­limited­English­proficiency­;­4)­homeless­or­have­run­away­from­home;­5)­at-risk­to­leave­school­without­a­diploma,­and/or­6)

former­juvenile­offenders­or­youths­at­risk­of­delinquency.­The­referenced­DVSA­regulation­includes­"children­with­exceptional­needs"­who­are­defined­as­developmentally­disabled,­such­as­those­who­are­autistic,­have

cerebral­palsy­or­epilepsy,­are­visually­impaired,­are­emotionally­disturbed­or­have­a­language­disorder,­specific­learning­disability,­have­multiple­disabilities,­other­significant­health­impairment­or­have­literacy­needs.

Under­this­DVSA­regulation,­existence­of­a­child's­exceptional­need­is­verified­by­an­appropriate­professional,­such­as­a­physician,­psychiatrist,­psychologist,­registered­nurse­or­licensed­practical­nurse,­speech­therapist­or

educator.­"Children­with­special­needs"­is­defined­as­those­who­are­abused­or­neglected,­in­need­of­foster­care,­adjudicated­youth,­homeless­youths,­teen-age­parents­and­children­in­need­of­protective­intervention­in

their­homes. IV The­Corporation­did­not­collect­this­data­prior­to­FY­2007. V Prior­to­FY­2008,­AmeriCorps­grantees­were­not­required­to­collect­and­report­this­data.­All­Corporation­programs­now­collect­and­report­this­data,­resulting­in­the­significant­increase­between­FY­2007­and­FY­2008. VI No­adequate­national­measure­has­been­identified­and­therefore­developed­for­this­initiative.­This­initiative­and­possible­measures­are­being­reexamined­as­part­of­the­development­of­the­Corporation’s­next­strategic­plan.

PART I Management’s Discussion & Analysis

14 CNCS FY 2009 Annual Financial Report
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 15

The Corporation continued to promote a healthy, vibrant nonprofit volunteer sector, able to deliver

community services efficiency and effectively. The agency’s approach to training and technical assistance

consists of a three-part strategy:

1. Program Development, Assistance, and Training grants to State Service Commissions. In FY 2009,

the Corporation awarded $5.4 million to Commissions, which supported the following:

■ A total of 666 state training events for 27,984 AmeriCorps members and 10,749 grantee staff 

across the country; 

■ An increase in the number of new state applications and programs; and 

■ A collective, upfront learning experience for AmeriCorps members through swearing-in and 

launch activities.

2. Innovative national learning strategies. The Corporation awarded $4.6 million and identified and

employed new and improved approaches to address quality and compliance issues, which resulted in a

strengthened volunteer and service-learning sector. In the first two quarters of FY 2009, the Corporation:

■ Supported 165 training events attended by 8,903 learners, and 182 sessions at training events

sponsored by organizations that reached 8,244 additional participants. 

■ Supported the production of 662 individual curricula/materials or tools, with 17,933 people coached

on the phone or by e-mail. 

■ Standardized surveys administered across all events with 88 percent of participants reporting that

they gained new knowledge they would apply in their work.

3. National Service Learning Clearinghouse (NSLC) and the Resource Center. The Corporation connected its

field to easily accessible tools, training, and information through these robust, web platforms. The

National Service-Learning Clearinghouse is the nation’s primary source of information, curriculum,

research, and other resources on service-learning and includes over 600 service-learning lesson plans,

syllabi and project ideas from the Service-Learning Ideas and Curricular Examples (SLICE) database to

support K-12, higher education, CBO, and tribal service-learning educators. 

In the last six months of FY 2009, over 3,400 toolkits on planning high-quality service-learning courses for

K-12 teachers and higher education faculty were downloaded for the NSLC website and there was a 70

percent increase in total visitors. 

The Resource Center, which was accessed by over 500,000 unique visitors in just the first two quarters of

FY 2009, is the go-to site for tools, training, and information about service, volunteering, and nonprofit

capacity building and includes:

■ An effective practices database of over 800 vetted practices;

■ Twenty-six online affinity groups;

■ An online learning center with 50 courses, which enrolled 4,280 individuals in the first two 

quarters of FY 2009; 

■ Collaborative meeting and webinar technology (239 webinars conducted reaching 4,757 

individuals); and

■ Online tools and training on using social media to increase the capacity of nonprofits to reach new

volunteers and serve more customers.
PART II Management’s Discussion & Analysis

16 CNCS FY 2009 Annual Financial Report

The Corporation also has made it a priority to provide Americans with disabilities with the opportunity to

participate in strengthening their communities through volunteering and service. A primary strategy to

engage people with disabilities in service through the AmeriCorps State and National program is by granting

funds to State Service Commissions for recruitment, placement, reasonable accommodation and generally

strengthening state capacity to create and effectively manage service programs that are accessible to

individuals with disabilities.

In calendar year 2008 (the most recent year with reportable data), State Service Commissions continued their

efforts to modify policies and procedures as needed, strengthen their operational practices and develop the

capacity of sub-grantees to be more inclusive. In addition, they continued to build partnerships with disability

organizations, communities and individuals.

■ More than 40 University Centers on Disability partnered with State Service Commissions, the Corporation,

and State Offices to strengthen capacity and support the retention of volunteers with disabilities; 

■ Over 320 local, state and national disability organizations partnered with one another and with University

Centers on Disability to promote and enhance the inclusion of persons with disabilities in national service;

■ Twenty-six states reported an increase in members with disabilities over previous years;

■ Thirty-eight states successfully provided reasonable accommodations to service members with

disabilities, including providing materials in alternative formats; and 

■ State Service Commissions provided training and technical assistance in the areas of disability outreach

and recruitment, federal benefits, emergency preparedness, and disability etiquette to over 13,300

participants in over 300 training events.

Corporation Program Highlights

In FY 2009, the Senior Corps programs collectively funded 472,300 direct volunteers. RSVP volunteers

delivered an estimated 68 million hours of service – tutoring and mentoring children, assisting victims of

natural disasters, improving the environment, and, mobilizing other volunteers. More than 29,000 volunteers

in the Foster Grandparent Program served 248,000 children and youth with special or exceptional needs and

acted as mentors to more than half of the total served. In addition, 15,000 volunteers in the Senior

Companion Program took care of the in-home needs of 68,200 frail, older adults and others with physical or

developmental limitations. They transported clients to medical appointments, helped shop for food and basic

necessities, provided companionship to offset isolation, and offered respite to nearly 9,000 family members

and informal caregivers. 

AmeriCorps State and National provided $202.6 million in funding to recruit, place, and supervise

AmeriCorps members, including $133 million awarded competitively to 267 national and local organizations,

state service commissions, faith-based groups, educational institutions, and Indian Tribes. AmeriCorps

members in these organizations and agencies tutored and mentored at-risk youth; built and rehabilitated

homes; worked to prevent high school dropouts and expand college access; conserved parks and public lands;

supported food banks and shelters; and helped communities recover from disasters. In addition, these

members recruited and mobilized an additional 1.2 million volunteers. 

AmeriCorps VISTA members served in nearly 1,000 nonprofits, building their capacity in areas such as

education, employment, housing, and financial development. AmeriCorps VISTA members recruited over 1

million community volunteers and raised over $183 million in support of these local initiatives. 
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 17

AmeriCorps NCCC teams completed 430 projects through partnerships with federal and state agencies, and

community-based organizations. The Corporation devoted 60 percent of AmeriCorps NCCC’s total program

resources to disaster relief and recovery efforts nationwide, supporting displaced and needy individuals,

families, and communities. An average of 816 AmeriCorps NCCC members served each month and an

estimated 45,000 additional volunteers will be leveraged by year’s end. Four years after Hurricane Katrina

brought teams of AmeriCorps NCCC teams to the Gulf Coast to join in recovery efforts, the Corporation

successfully opened its fifth NCCC campus in Vicksburg, Mississippi with 160 Corps members. 

Learn and Serve America (LSA) awarded 36 grants totaling nearly $20 million to support service-learning in

schools, institutions of higher education, tribes, and faith-based and other community groups. In FY 2008 (the

most recent year available), 1,613 LSA grantees and subgrantees reported the participation of 1.2 million

participants; 43,000 educators; 20 million service hours; and 22,000 community partners. Participating in

service-learning activities builds character and creates career and educational opportunities through the

volunteer experience.

Across FY 2009, an estimated 1 million volunteers served their communities through organizations funded

through grants in honor of Dr. Martin Luther King Jr. More than 13,000 projects – 8,000 more than FY 2008 –

were organized. The 2009 National Conference on Volunteering and Service was the Corporation’s largest

conference to date, bringing together 5,000 volunteer and service leaders from across the nation and globe.

The Corporation also led the United We Serve campaign, which focused on five core elements of the agency’s

recovery agenda: health care, energy independence, education, community and economic renewal, and

disaster preparedness and support for our veterans. 

American Recovery and Reinvestment Act of 2009

Following the passage of the American Reinvestment and Recovery Act, the Corporation moved swiftly and

carefully to award $154 million to grantees across the nation. Through the AmeriCorps State and National and

VISTA programs and through VISTA sponsors, nearly 14,000 additional members engaged in service directly

related to improving the social and economic conditions worsened by the recession. These members will serve

in FYs 2009 and 2010.

In AmeriCorps State and National, roughly 10,500 Recovery Act-funded members will provide employment

training, financial planning, and housing assistance; preventing home foreclosures; supporting tutoring and

literacy programs; weatherizing homes; and recruiting and managing other volunteers. During FY 2010, the

Corporation plans to award up to 1,000 additional member positions. 

Approximately 3,500 Recovery Act-funded VISTA members are providing foreclosure prevention and financial

counseling, expanding college access, helping ex-offenders re-enter society, organizing literacy programs, and

supporting health care and independent living services. The Corporation also received $6 million in non-grant

funding, which enabled the agency to begin the process of moving its IT infrastructure from headquarters to a

more stable off-site environment, as well as $40 million for the National Service Trust for education awards for

these members.
Performance Analysis

The Corporation achieved significant increases in performance outcomes in FY 2009. The agency exceeded its

targets on six of nine performance measures for which data was collected. (Note: Data for all measures is not

available or collected annually.) A fuller analysis of the Corporation’s performance on its national and agency

goals in FY 2009 will be included in the FY 2009 Annual Performance Report, which will be released in February

2010. At that time, data for Corporation performance measures will be final, and several national performance

measures and additional management measures will be available. Since 2008, the Corporation has improved

its data collection processes and began requiring grantees themselves to report performance information

related to strategic initiatives at the end of the calendar year. Prior to this, only program-specific performance

data was fully collected for the three Senior Corps programs, AmeriCorps VISTA, and AmeriCorps State and

National. The only exception to this was the performance measure on the number of volunteers supported by

Corporation programs. In some cases, prior year actuals have been adjusted for the following measures:

■ Number of children and youth from disadvantaged circumstances serving their communities through

Corporation programs

■ Number of Baby Boomer volunteers generated through Corporation-sponsored programs

For the following measures, updated prior year data for FY 2006 and 2007 was not available. As a result, there

appear to be significant increases in performance when comparing performance between these two years and

FY 2008 and FY 2009 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

■ Number of college students serving through Corporation programs

■ Number of clients receiving independent living services

18 CNCS FY 2009 Annual Financial Report

PART II Management’s Discussion & Analysis

Met or Exceded: 89%

Figure 4a.FY 2009 Corporation Performance Goals

Data Not Yet Available: 100%

Figure 4b.FY 2009 National Performance Goals

Not Met:

11%
The higher rate of performance in FYs 2008 and 2009 may be due in part to the significant momentum gained by

the service movement from the President’s Call to Service and the passage of the Kennedy Serve America Act.

Demand and funding applications for all of the Corporation’s major programs increased dramatically in FY 2009.

In fact, applications for all three AmeriCorps programs were roughly 3:1 compared to available slots or funding.

The Corporation also diligently promoted the President’s “Call to Service” and played a key role in the “United

We Serve” initiative, calling on individuals across the country to make service a part of their daily lives. In the

initial 81 days of the initiative from June 22nd through September 11th, more than 400 national organizations

and thousands of local nonprofits and faith-based groups were engaged through the initiative.

This performance also reflects the Corporation’s ability to quickly and effectively support organizations

responding to the increased challenges brought about by the economic downturn. There were further

improvements made in program grant criteria as well as training and technical assistance to staff and agency

partners. The Corporation also launched 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 Serve.gov website – a searchable database for volunteer opportunities across the country – was

established and managed by the Corporation in FY 2009 and currently provides access to nearly 250,000

service projects. In late September 2009, the Corporation launched Servir.gov (the Spanish language version of

Serve.gov), which will carry President Obama’s call to service to millions of Spanish-speakers seeking service

opportunities.

Based on current estimates, it is likely that the Corporation will not meet its target for the percentage of

organizations funded through Learn and Serve America that have adopted at least six of nine institutional

supports leaving to sustainability for service-learning. The program has achieved only modest gains in the

measure over the years. Should this measure be included in the Corporation’s upcoming strategic plan, the

program will attempt to analyze the low performance in the area. 

Although current estimates show that the Corporation may not meet its goal for the number of clients

receiving independent living services, the difference between the target and goal is less than one percent.

Nonetheless, the Corporation will provide a fuller explanation of the FY 2009 and the possible decline from the

FY 2008 level in the FY 2009 Annual Performance Report.

As noted earlier, no data is currently available for the Corporation’s nine national goals. This data will be

available from the Census Bureau at different points in FY 2010.

CNCS FY 2009 Annual Financial Report 19

Management’s Discussion & Analysis PART I
Management Performance

Sustaining management excellence at the Corporation requires the development and maintenance of efficient

operational strategies; reliable systems; well trained and managed employees; and effective grants management.

Given the significant challenges faced by the agency in recent years, Corporation leadership made a strong and

renewed commitment to management excellence in FY 2009 and took significant steps to achieve it. 

For the tenth consecutive year, the Corporation has earned an unqualified opinion on its financial statements.

The consistency of this result across the past decade demonstrates the commitment of staff and the

Corporation’s leadership to ensuring full accountability, improving grants oversight, strengthening internal

controls, and stabilizing agency IT systems. In the coming years, additional improvements will be made to

further refine and improve both financial and program operations. 

In a self-assessment, 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 16

percentage points. 

FY 2009 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 March 2010. Data for the grantees’

performance against their own program/project metrics also will not be available until later in FY 2010. Data

for these measures is expected to demonstrate sustained increases in employee satisfaction resulting from the

Corporation’s ongoing efforts to improve its operations. 

Data for FY 2008 show an increase in the overall satisfaction index – from 73 points in FY 2007 to 74 points,

which is about five points above the federal average score for customer satisfaction. Overall satisfaction with

the agency’s major technology systems fell three points to 67 points in 2008 due in large part to system

challenges when the Corporation concurrently rolled out two system upgrades. 

20 CNCS FY 2009 Annual Financial Report

PART I Management’s Discussion & Analysis

Data Not Yet Available: 60%

Not Met: 20%

Met or Exceded: 20%

Figure 6.FY 2009 Management Performance Goals
In FY 2009, Corporation leadership and the Board of Directors renewed their focus on management, with an

emphasis on making significant improvements in technology and staff capacity, administrative burdens on

agency grantees, and on showing demonstrable results. The Corporation also undertook these important steps

to prepare for the growth authorized under the Serve America Act. 

Within the last year, the Corporation completed the following management initiatives.

Management and Staffing

■ Successfully recruited experienced financial management professionals and fully staffed the Office 

of Budget.

■ Centralized all budget staff within the CFO office.

■ Awarded a contract for a management consultant whose work will inform the realignment of the

Corporation’s management structure to ensure accountability and filling key leadership positions.

■ Evaluated current staffing and business processes and hiring to meet best practices.

■ Reinstituted the agency’s commitment to training for employees. 

■ Provided improved systems to encourage strengthened accountability.

CNCS FY 2009 Annual Financial Report 21

Management’s Discussion & Analysis PART I

Table 5. Performance Trends for Management GoalsI

FY 2006 FY 2007 FY 2008 FY 2008 FY 2009 FY 2009 FY 2010

Performance Objective and Measure Actual Actual Target Actual Target Actual Target

Improve Program and Project Quality

Percent­of­Corporation-funded­grantees­meeting­or­ NA NA NA NA NA NA NA

on­track­to­meet­program/project­performance­goalsII

Cultivate a Culture of Performance and Accountability

Number­of­material­weaknesses­(MW),­significant­ 0­MW 0­MW 0­MW 0­MW 0­MW 0­MW 0­MW

deficiencies­(SD)­or­reportable­conditions­(RC)­ 1­RC 0­SD 0­SD 1­SD 0­SD 0­SD 0­SD

identified­in­the­annual­financial­statement­auditIII

Percentage­of­Government-wide­financial­ 56% 62% 100% 63% 100% 69% 100%

management­metrics­where­the­Corporation­israted­"green"IV

Deliver Exemplary Customer Service

Overall­Corporation­score­on­the­American­Customer­ 71 73 74 74 77 Data­available 80

Satisfaction­Index­(100­point­scale) 3/10

Overall­score­for­satisfaction­with­the­overall­ 62 70 70 67 75 Data­available 80

usability­and­effectiveness­of­the­agency's­major­ 6/10

technology­systems­(100­point­scale)

Build a Diverse, Energized, and High-Performing Workforce

Percent­of­employee­who­report­overall­satisfaction­ 72% 77% 76% 68% 72% Data­available 75%

with­their­jobs 1/10

I NA­=­Data­not­available.­ II This­initiative­is­being­reexamined­as­part­of­the­development­of­the­Corporation’s­next­strategic­plan. III In­FY­2007,­the­reissuance­of­“Government­Auditing­Standards”­by­the­Government­Accountability­Office­revised­the­definitions­of­material­weakness,­eliminated­the­reportable­conditions­category­and

introduced­a­new­category,­"significant­deficiency."­For­more­information­on­this­change,­see­OMB­Circular­A-123­at:­www.whitehouse.gov/omb/circular/index.html. IV Prior­to­May­2007,­all­agencies­calculated­their­own­results­for­these­metrics­using­standardized­methods­on­a­monthly­or­quarterly­basis,­as­specified­by­the­CFO­Council.­In­May­2007,­the­General­Services

Administration­(GSA)­began­calculating­the­values­for­the­three­metrics­related­to­credit­card­delinquencies.­The­Corporation­has­continued­to­calculate­its­metric­scores­monthly­using­the­same­calculations

specified­by­the­Council­for­all­non-credit­card­delinquency­metrics.­Prior­to­2007,­values­shown­represent­the­value­for­the­last­month­of­the­fiscal­year.­For­FY­2007­and­beyond,­the­value­represents­an

average­over­the­12­months­of­the­fiscal­year.­Also­see­"Accompanying­Information:­Government-wide­Financial­Management­Metrics"­available­at

www.nationalservice.gov/about/role_impact/performance.asp.
PART I Management’s Discussion & Analysis

22 CNCS FY 2009 Annual Financial Report

Budget and Forecasting Improvements

■ Implemented a new monthly review of agency expenditures with department heads.

■ Enhanced communications across the offices of the CFO regarding operations under a continuing

resolution.

■ Improved incorporation of the apportionment process into budget planning and execution. 

■ Developed and shared with OMB and Congress a user-friendly budget forecasting model to ensure

consistent and accurate forecasting across budgets.

■ Implemented centralized budget execution procedures to ensure effective cross-agency use of funds; and 

■ Continued agency-wide focus on policies and procedures including internal policies as well as 

program monitoring;

Technology

■ Successfully recruited a Chief Information Officer with substantial information technology expertise and

strong project management and strategic experience. 

■ Executed a contract with a managed services provider to host our IT systems off-site to ensure continued

operations of our technology for both our staff and our field. 

■ Launched the 3rd phase of the My AmeriCorps Portal project providing improved access to our systems

for both AmeriCorps members and grantees. 

■ Drafted the first-ever comprehensive IT Strategic Plan for the Corporation, aligned with the current and

future needs of the agency as well as the agency’s budget.

■ Upgraded the agency’s security and information privacy systems, including revision of the Continuity 

of Operations Plan.

Implementation of the Kennedy Serve America Act

In order to implement the various components of the Serve America Act, the Corporation assembled a team of

more than 80 staff from across the agency. Led by an executive steering committee consisting of senior

managers, 15 working groups were formed, focused on specific program areas and crosscutting topics such as

technology, training, and performance measures. 

This team made significant progress in their work and met all benchmarks for initial implementation of the

Kennedy Serve America Act. Some highlights include:

Rulemaking

On September 10, 2009, the Corporation published an interim final rule in the Federal Register, aligning the

agency’s regulations with the Kennedy Serve America Act provisions that take effect in FY 2010. The rule can

be found on the Corporation’s website on the rulemaking page,

http://www.nationalservice.gov/about/serveamerica/rulemaking.asp or at

http://edocket.access.gpo.gov/2009/pdf/E9-21671.pdf. 

Following this, the Corporation will address issues in Senior Corps and provisions in the Act pertaining to the

Segal AmeriCorps Education Award and the National Service Trust. These include the number of terms of

service, the transferability of the education award for those over 55, and more. Our goal is to publish a

proposed rule for comment in the near future.
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 23

AmeriCorps State and National

The Corporation published a Notice of Funding Opportunity for 2010 AmeriCorps State and National grants.

The notice, which is available on the agency’s funding opportunities page

(http://www.nationalservice.gov/for_organizations/funding/nofa.asp), reflects the new priorities and program

features of the Kennedy Serve America Act, including giving priority to applicants that address compelling

unmet needs in education, the environment, healthy futures, veterans, and economic opportunity. The notice

also outlines the new options for national performance measures and fixed amount grants. 

A working group of state and national grantees has been assisting agency staff in developing pilot

performance measures. The Corporation also is gathering input from a working group of state commissions

and national direct grantees on implementing the single competition established by the Kennedy Serve

America Act. The application instructions require multi-state projects to describe their consultations with the

state commission in each state in which they propose to operate. The working group will disseminate a set of

best practices for that process when they are complete.

State Service Commissions

Under the Act, funding for training and disability programming is now available to all Corporation grantees.

These funds are distributed on an annual basis to each state through its state commission. Beginning in

January, organizations operating Corporation programs can contact their state commission for information on

training and funding for reasonable accommodation.

Segal AmeriCorps Education Award

The Kennedy Serve America Act made important changes to the Segal AmeriCorps Education Award, including

increasing the amount of future awards, expanding the available uses of future awards, and authorizing

individuals over age 55 (other than AmeriCorps VISTA members) to transfer the award to a child or grandchild

under certain conditions. Some of these provisions took effect at the start of FY 2010, while others must

undergo rulemaking. 

Also beginning in FY 2010, the maximum education award value will be equivalent to the maximum value of

the Pell Grant for the award year for which the national service position was approved. For terms of service

supported with FY 2010 funds, this amount will be $5,350.

AmeriCorps NCCC

The Kennedy Serve America Act requires AmeriCorps NCCC to increase the number of disadvantaged youth

serving in the program. In order to achieve this goal, AmeriCorps NCCC is forming partnerships with other

youth serving organizations to identify individuals graduating from programs that would meet this objective.

The first partnership established is with the National Guard Youth Challenge, and will kick off in January 2010.

In addition, the Kennedy Serve America Act requires closer consultation between NCCC and state service

commissions on NCCC project deployment. AmeriCorps NCCC has developed a protocol to facilitate this

consultation and has solicited feedback from state commissions.

RSVP Competition

A working group composed of Corporation State Office and Senior Corps staff has begun work on the process

for RSVP competition. Their initial efforts are focused on designing the evaluation process outlined in the Act

that each RSVP grantee must undergo in preparation for competition.
PART I Management’s Discussion & Analysis

24 CNCS FY 2009 Annual Financial Report

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 Program 

During FY 2009, the Corporation continued to refine its internal control assessment, testing and assurance

program, which is modeled on OMB Circular A-123. These efforts included further development of 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, program and

administrative executives. This Team is staffed by the Internal Control and Analysis Team (IC&A) within the

Department of the Chief Financial Officer. The Senior Assessment Team approves internal control program

improvements oversees its maintenance and reviews IC&A activities. 

The risk-based assessment approach used by 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 Field Financial Management Center and Accounting, Grants Management, Human

Capital, Procurement Services, Budget and Information Technology Offices 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 2009 Assessment

The Corporation’s assessment of internal control is based on internal control reviews and other analyses of

Corporation operations, programs, and grantees including the following: 

■ Review of manager responses on the internal control risk assessment tool for selected Corporation units;

■ 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.

There are also NCCC site visits by members of IC&A which sometimes coincide with IPRs. Review items

include project management, Corps member management, operating inventories and fiscal controls.

Following the on-site review, a written report is prepared and campus staff develops corrective action

plans in response to IPR recommendations;

■ Comprehensive risk-based Internal Control Reviews (ICR) including risk assessments and random-sample

internal control testing of key controls within selected Corporation program and administrative

operations; and

■ Office of Inspector General (OIG) reports, including the annual financial statement audit and recent audits

of portions of the Corporation’s operations.
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 25

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 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. FY 2009 risk assessment testing

priority decisions were influenced by the dollar volume of grant programs and findings associated with the FY

2008 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 Plan, including on-site visits; and

■ Testing of Travel Vouchers and Credit Card Purchases at Vinton and Sacramento NCCC Campuses

■ Testing by AFMS of Payment Voucher transactions, Member Payroll, Collections, and Trust Payments

■ Office of Procurement Services Testing of Central Purchase and Travel Card Accounts

■ Office of Human Capital Testing of the Continuation of Operations Program 

■ Testing of VMSU Member Files by Office of Field Liaison

■ Testing of VISTA Sponsor Verification Forms, Health Care Invoices and Child Care Reimbursements

■ Internal Control Reviews of the Field Financial Management Center, Office of Grants Management, 

Budget Office, the Office of General Counsel, The AmeriCorps NCCC Program, and the Office of

Information Technology.

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.

Additionally, as was done in FY 2008 in connection with the Internal Control Assessment, each of 21 assessable

units were required to prepare a separate FY 2009 statement of assurance declaring the level of assurance that

each of these office heads is able to provide.

Annual Financial Audit Results

Fiscal Year 2009 marks the tenth consecutive year the Corporation has earned an unqualified opinion on its

financial statements and had no reported instance of noncompliance with laws and regulations. FY 2009 also is

the ninth consecutive year with no reported material weaknesses, nor did this year have any significant

deficiencies. These results reflect the Corporation’s commitment to sound financial management and the hard

work by staff over the past year to improve operations. 

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 A-123. 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, 2009, was operating effectively and no material weaknesses were found in the design or

operation of the internal controls.

Statement of Assurance for Internal Control over Financial Reporting

In addition, the Corporation’s internal control program described above assured effectiveness of internal

controls over financial reporting, which includes safeguarding of assets and compliance with applicable laws

and regulations. Based on the results of this evaluation, the Corporation provides reasonable assurance that its

internal control over financial reporting as of June 30, 2009, 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 2009.

Nicole Goren William Anderson

Acting Chief Executive Officer Acting Chief Financial Officer

26 CNCS FY 2009 Annual Financial Report

PART I Management’s Discussion & Analysis
Financial Management Metrics

Although the Corporation is not a federal agency listed in the CFO Act, this agency measures itself against a set

of nine metrics that are similar to U.S. CFO Council Government-wide Financial Management Metrics. 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 2009, the yearly average of “green” scores was 69 percent. Comparable average scores for FY 2005, FY 2006,

FY 2007 and FY 2008 are 43 percent, 48 percent, 62 percent and 63 percent, respectively. The average “green”

scores for the last three fiscal years have been stable. By focusing efforts on improving those metrics with the

lowest performance levels it is expected that the average “green” score will improve significantly in FY 2010.

Performance in each of the individual metrics during FY 2009 is summarized as follows:

■ Fund Balance with Treasury (Metric 1) has been at fully-successful “green” levels for eleven of twelve

months. In February Fund Balance with Treasury did not meet the fully-successful “green” level due to a

delay by the Treasury in posting the Corporation’s Recovery Act appropriation. 

■ Suspense Account Clearance and Accounts Receivable Delinquency have been at fully-successful “green”

levels for the entire year (Metrics 2–3). 

■ The Percent of Vendor Payments by Electronic Funds Transfer (EFT) reached the “green” performance

level in eight months and was at the “yellow” performance level the other four months (Metric 4). 

■ Percent of Vendor Payments Made on Time improved significantly as the year progressed. The fully

successful green level was reached in each of the last six months of the fiscal year. Overall, seven months

were at “green” levels and five at “red” levels (Metric 5).

■ Late Payment Penalties Paid as a Percent of Total Vendor Payments showed improvement in Fiscal Year

2009. This metric was “green” nine months and “yellow” three months. The Late Payment Penalties metric

is sensitive to the dollar amount and numbers of days past due of late payments (Metric 6).

■ The last three metrics relate to credit card payment timelines. During FY 2009, Individually Billed Account

(IBA) Travel Card timeliness was at “green” levels for three months and “yellow” levels for seven months

and “red” levels for two months. IBA accounts are paid directly by employees who travel, and achieving

“green” on this metric requires Corporation travelers to keep the lateness rate equal to or below two

percent. Centrally Billed Travel timeliness was at “green” levels for ten months and “red” levels for two

months in 2009. Purchase Card timeliness was at the “green” levels for two months, “yellow” levels for

seven months and “red” levels for three months in 2009. A change to the credit card vendor was made

during fiscal 2009. With the consistency of one credit card vendor throughout fiscal 2010 it is expected

that the lateness rates will decrease. 

CNCS FY 2009 Annual Financial Report 27

Management’s Discussion & Analysis PART I
PART I Management’s Discussion & Analysis

28 CNCS FY 2009 Annual Financial Report

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 commitments. Fund Balance with Treasury increased by about $127

million, from $823 million at September 30, 2008, to $951 million at September 30, 2009. The increase in the

fund balance is due primarily to Recovery Act funding. In fiscal 2009 the Corporation received a total $201

million in additional funding under the Recovery Act.

Trust Investments, which are maintained in the National Service Trust, are restricted for use in paying education

awards, student loan interest forbearance, and President’s Freedom Scholarships to eligible participants. Trust

Investments are not available for use in the current operations of the Corporation. Trust Investments and

Related Receivables increased by $36 million primarily due the funding received for Recovery Act activity.

Advances to Others mainly represent funds provided to grantees in advance of their performance under a

grant. For the most part, these advances are liquidated during the first quarter of the subsequent fiscal year.

Advances to others increased slightly, by $8 million, from $59 million at September 30, 2008 to $67 million at

September 30, 2009, reflecting the increased funding levels for the Corporation. 

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 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 $21 million – from $303 million at September 30,

2008 to $324 million at September 30, 2009. This change was largely due to the continued growth of the

AmeriCorps State and National program and the additional members serving in Recovery Act positions. 

Grants Payable represents funds due to grantees in payment of their performance under a grant. For the most

part, these payables are liquidated during the first quarter of the subsequent fiscal year. Grants Payable

increased by about $16 million – from $89 million at September 30, 2008 to $105 million at September 30,

2009. The change between the two years is considered a normal operating variance reflecting the increased

funding levels for the Corporation.

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/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 2009 the Corporation based its obligation amount
Management’s Discussion & Analysis PART I

CNCS FY 2009 Annual Financial Report 29

on the full value of the education award, a 100 percent enrollment rate (allowing for refills), and earning and

usage rates of ranging from 75 to 85 percent depending on term type.

As of September 30, 2009, the National Service Trust had available cash and investments of about $457 million

to make education award and interest forbearance payments (about $14 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 about $444 million. The Corporation has also set aside a reserve of

$50.1 million, including $3.5 million set aside in FY 2009 for Recovery Act positions, in the event that estimates

used to calculate obligational amounts for education awards prove to be too low. 

About $13 million was available at year-end to fund new AmeriCorps member positions. Of the $13 million, $4

million is for additional Recovery Act positions. Trust assets are estimated to be fully sufficient to pay for all

awarded AmeriCorps positions. As grants expire, the Corporation deobligates funds related to member

positions that were not filled. The Corporation will also continue to analyze the Trust operations and liability

projections to identify opportunities for improvement.

Results of Operations

For FY 2009, the Corporation revenue totaled $970.5 million, which is an increase of $56.4 million, or 6 percent,

above the FY 2008 level. This increase was attributable to an increase in appropriations used of approximately

$58.3 million related to the increased funding level for FY 2009. In addition to regular operating appropriations,

FY 2009 funding included an additional $201 million under the Recovery Act, of which $89 million was for the

AmeriCorps State and National program, $65 million for AmeriCorps VISTA, $40 million for the National Service

Trust, $6 million for information technology improvements and operational support, and $1 million for the

Office of the Inspector General to audit the use of Recovery Act funds.

Total expenses reported for FY 2009 were $955.2 million which represents an increase of $39.1 million, or 4

percent, from the FY 2008 level. Most of the increase related to additional program expenses for all three major

Corporation programs based on the increased funding level for the Corporation.

The Corporation’s net revenue over expenses for FY 2009 was $15.3 million compared to a deficit of $2 million

in 2008. This increase was mostly attributable to additional appropriations transferred to the Trust Fund during

FY 2009. The Net Position of the Corporation increased from $942.3 million in FY 2008 to $1.08 billion in FY

2009 – an increase of 15 percent. The Corporation’s Net Position as of September 30, 2009, represents

approximately 70 percent of the total assets of the Corporation. While total Trust investments increased from

$479.6 million to $515.7 million during FY 2009, interest earnings on Trust investments declined by 31 percent,

from $17.8 million to $12.2 million, consistent with the lower yields paid by Treasury securities in FY 2009.
30 CNCS FY 2009 Annual Financial Report

PART I
I am pleased to present the fiscal year (FY) 2009 Annual Financial Report for

the Corporation for National and Community Service. Executing sound

financial stewardship of the Corporation’s resources is an essential element

for achieving our mission of improving lives, strengthening communities,

and fostering civic engagement through service and volunteering. 

FY 2009 was a milestone year for the Corporation. For the first time since its

establishment in 1993, the Corporation’s programs were reauthorized and its

mission expanded with the passage of the Edward M. Kennedy Serve America Act. This growth will come with

significant challenges for our staff and field, and increases the need for effective financial management and

internal controls.

Our successes in FY 2009 show that the Corporation can meet future challenges. Notably, the agency has

earned an unqualified audit opinion on its financial statements for a tenth consecutive year. This year’s audit

includes no significant deficiencies and shows that the Corporation has demonstrated a commitment to strong

internal controls and a sound financial system. This successful outcome is particularly important given the

many initiatives that the agency undertook in FY 2009. These include:

■ Resolving the significant deficiency included in the 2008 report related to the Corporation’s Continuity of

Operations Plan (COOP) and change control management;

■ Successfully releasing the third update to the MyAmeriCorps Portal – the Corporation’s online system

used by AmeriCorps members to manage their experience and receive important information before,

during, and after their service; 

■ Strengthening our IT infrastructure by beginning the process of moving our IT systems off-site to a

managed services environment;

■ Converting the agency’s debit card program and making key improvements to our core financial system

to better comply with requirements set forth by the U.S. Treasury; 

■ Refining the Corporation’s Assessable Unit Risk Assessment Tool to enhance the relevance of the elements

being rated and the objectivity with which the overall levels of inherent risk, control strength and residual

vulnerability are determined; and

■ Developing a user-friendly budget forecasting model to ensure consistent and accurate forecasting of the

agency’s financial resources; 

In addition, staff across the agency acted swiftly to successfully implement the Corporation’s work related to

the American Recovery and Reinvestment Act – engaging an additional 14,000 members in improving the

social and economic conditions worsened by the recession. The Corporation will continue this important work

in FY 2010, awarding up to 1,000 additional AmeriCorps members. 

CNCS FY 2009 Annual Financial Report 31

Financial Management: Message from the CFO PART II

Financial Management

Message from the

Acting Chief Financial Officer

November 2009
While we are proud of these accomplishments, we recognize that the work before us is challenging and that

there will be bumps in the road to the expansion envisioned by the Edward M. Kennedy Serve America Act. We

will continue our work with the Corporation’s Office of Inspector General and its financial auditors to identify

areas where efficiencies can be made and internal controls improved. This will help us achieve greater

transparency in our operations and continued diligence in the use of the financial resources entrusted to us by

the public.

Finally, I want to thank our employees and grantees. This report – and the accomplishments it describes – is a

reflection of their extraordinary dedication to the mission and guiding principles of the agency. Together, we

look forward to tackling our ambitious agenda for the future. 

William Anderson

Acting Chief Financial Officer

32 CNCS FY 2009 Annual Financial Report

PART II Financial Management: Message from the CFO
Corporation for National & Community Service

Fiscal Years 2009 and 2008 Consolidated Financial Statements:

These consolidated financial statements report the Corporation for National and Community Service’s financial

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

Corporation Control Act (Act) and Executive Order 13331, National and Community Service Programs. The

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 EO 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.

These financial statements present comparative information for FY 2009 and FY 2008. For FY 2009, the

Corporation’s financial statements, for the tenth 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 in compliance with the reporting requirements

described above. 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.

Passage of the Edward M. Kennedy Serve America Act

On April 21, 2009, the Edward M. Kennedy Serve America Act (Public Law 111-13) reauthorized and expanded

the mission and operations of the Corporation. However, the provisions of Public Law 111-13 did not take

effect until October 1, 2009. Therefore, these financial statements and the accompanying notes do not reflect

activities and operations under the amendments made by the Edward M. Kennedy Serve America Act.

CNCS FY 2009 Annual Financial Report 33

Financial Management: CNCS Consolidated Financial Statements PART II
34 CNCS FY 2009 Annual Financial Report

PART II Financial Management: CNCS Consolidated Financial Statements

Assets 2009 2008

Fund­Balance­with­Treasury­(Note­2) $­­­­­950,532 $­­­­­822,989

Trust­Investments­and­Related­Receivables­(Note­3) 519,838 483,880

Advances­to­Others 67,521 59,388

Accounts­Receivable,­Net­(Note­4) 2,763 2,616

Property­and­Equipment,­Net­(Note­5) 1,709 3,043

Total Assets $1,542,363 $1,371,916

Liabilities

Trust­Service­Award­Liability­(Note­6) $­­­­­324,067 $­­­­­303,367

Grants­Payable 105,084 89,456

Accounts­Payable 2,031 7,231

Actuarial­FECA­Liability­(Note­8) 11,365 11,638

Other­Liabilities 16,774 14,200

Accrued­Annual­Leave 3,120 3,164

Advances­from­Others 14 290

Capital­Lease­Liability - 250

Total Liabilities $ 462,455 $ 429,596

Contingencies­(Note­14)

Net Position

Unexpended­Appropriations $­­­­­890,956 $­­­­­769,016

Cumulative­Results­of­Operations 188,952 173,304

Total Net Position (Note 9) 1,079,908 942,320

Total Liabilities and Net Position $1,542,363 $1,371,916

Corporation for National and Community Service

Consolidated Statements of Financial Position as of September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­statements.
CNCS FY 2009 Annual Financial Report 35

Financial Management: CNCS Consolidated Financial Statements PART II

Corporation for National and Community Service

Consolidated Statements of Operations and Changes in Net Position for the Years Ended September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­statements.

Revenue 2009 2008

Appropriated­Capital­Used $­­­­­770,708­ $­­­­­­­­748,580­

Appropriations­Transferred­to­the­Trust­Fund­(Note 10) 174,932­ 138,785­

Interest 12,236­ 17,804­

Other 12,598­ 8,887­

Total Revenue $ 970,474 $ 914,056

Expenses

AmeriCorps $­­­­­661,482­ $­­­­­­­­630,424­

SeniorCorps 238,805­ 236,794­

Learn­and­Serve­America 47,812 42,436

Subtotal - Program Expenses 948,099 909,654

Pass-through­Grants 682­ 163­

Office­of­the­Inspector­General 6,045 6,284

Total Expenses(Note 11) 954,826 916,101

Net of Revenue Over Expenses $ 15,648 $ (2,045)

Net Position

Net­of­Revenue­over­Expenses $­­­­­­­15,648­ $­­­­­­­­­­(2,045)

Increase/(Decrease)­in­Unexpended­Appropriations,­Net­(Note 13) 121,940 (59,581)

Increase/(Decrease)­in­Net­Position,­Net 137,588­ (61,626)

Net­Position,­Beginning­Balance 942,320­ 1,003,946­

Net Position, Ending Balance (Note 9) $1,079,908 $ 942,320 
Cash Flows from Operating Activities 2009 2008

Net­of­Revenue­over­Expenses $­­­­­­­15,648­ $­­­­­­­(2,045)

Adjustments­Affecting­Cash­Flow:

Appropriated­Capital­Used (770,708) (748,580)

Appropriations­Received­in­Trust (174,932) (138,785)

Decrease/(Increase)­in­Accounts­Receivable (147) 631

Decrease/(Increase)­in­Interest­Receivable (141) (697)

Decrease/(Increase)­in­Advances (8,133) 2,587

Increase/(Decrease)­in­Accounts­Payable­and­Other­Liabilities­­ (2,626) 2,147

Increase/(Decrease)­in­FECA­and­Annual­Leave­Liabilities (317) (249)

Increase/(Decrease)­in­Capital­Lease­Liability (250) -

Increase/(Decrease)­in­Trust­Liability 20,700­ 22,770

Increase/(Decrease)­in­Grants­Payable 15,628­ (10,349)

Amortization­of­Premium/Discount­on­Investments 1,647­ (4,192)

Depreciation,­Amortization,­and­Loss­on­Disposition­of­Assets 1,334 1,731

Total­Adjustments (917,945) (872,986)

Net Cash Provided/(Used) by Operating Activities $ (902,297) $ (875,031)

Cash Flows from Investing Activities

Purchase­of­Property­and­Equipment $­­­­­­­­­­­­­­­­­­­- $­­­­­­­(2,667)

Sales­of­Securities 844,999 1,093,279

Purchase­of­Securities (882,739) (1,106,881)

Net Cash Provided/(Used) in Investing Activities $ (37,740) $ (16,269)

Cash Flows from Financing Activities

Appropriations­Received,­Net­of­Trust $­1,090,866­ $­­­­­871,558

Rescissions­and­Cancellations (23,286) (43,774)

Net Cash Provided by Financing Activities $1,067,580 $ 827,784

Net Increase/(Decrease) in Fund Balance with Treasury $ 127,543 $ (63,516)

Fund Balance with Treasury, Beginning 822,989 886,505

Fund Balance with Treasury, Ending $ 950,532 $ 822,989 

Corporation for National and Community Service

Consolidated Statements of Cash Flows For the Years Ended September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­statements.

PART II Financial Management: CNCS Consolidated Financial Statements

36 CNCS FY 2009 Annual Financial Report
Corporation for National and Community Service

Combined Statements of Budgetary Resources For the Years Ended September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­statements.

Budgetary Resources 2009 2008

Unobligated­balance,­brought­forward,­October­1 $­­­­­145,061­ $­­­­­177,320

Recoveries­of­prior­year­unpaid­obligations 25,335­ 40,444

Budget­authority:

Appropriation 1,273,580 1,027,007

Spending­authority­from­offsetting­collections:

Collected 13,075 9,070­

Change­in­receivables­from­Federal­sources (338) (491)

Change­in­unfilled­customer­orders:

Advance­received (276) 374

Without­advance­from­Federal­sources (932) 65

Total­budget­authority 1,285,109 1,036,025­

Permanently­not­available (23,286) (43,843)

Total budgetary resources $1,432,219 $1,209,946

Status of Budgetary Resources

Obligations­incurred­(Note­16) $­1,244,611 $­1,064,885­

Unobligated­balance:

Apportioned 104,506 2,927­

Unobligated­balance­not­available 83,102 142,134

Total status of budgetary resources $1,432,219 $1,209,946

Change in Obligated Balance

Obligated­balance,­net:

Unpaid­obligations,­brought­forward,­October­1 $­1,150,605­ $­1,165,718

Uncollected­customer­payments­from­Federal­sources,­brought­forward,­October­1 (1,270) (1,694)

Total unpaid obligated balance, net 1,149,335 1,164,024

Obligations­incurred,­net 1,244,611 1,064,885

Gross­outlays (1,104,109) (1,039,557)

Recoveries­of­prior­year­unpaid­obligations,­actual (25,335) (40,444)

Change­in­uncollected­customer­payments­from­Federal­sources 1,270 427

Total unpaid obligated balance, net, end of period $1,265,772 $1,149,335

Obligated­balance,­net,­end­of­period:

Unpaid­obligations $­1,265,772 $­1,150,605

Uncollected­customer­payments­from­Federal­sources - (1,270)

Total unpaid obligated balance, net, end of period $1,265,772 $1,149,335

Net Outlays

Gross­outlays $­1,104,109 $­1,039,557

Offsetting­collections (12,799) (9,444)

Distributed­offsetting­receipts (175,838) (140,450)

Net outlays $ 915,472 $ 889,663

Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 37
PART II Financial Management: CNCS Consolidated Financial Statements

38 CNCS FY 2009 Annual Financial Report

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 in fiscal year 2009 was to improve lives, strengthen

communities, and foster civic engagement through service and volunteering. To meet its mission, the Corporation provided

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 in FY 2009 were:

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 and National) offers grants supporting a broad range of local service

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

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

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

■ 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. 

The Corporation for the most part administered its programs in fiscal year 2009 from the following trust, gift and

appropriated funds:

Trust and Gift Funds:

■ National Service Trust (the Trust), from which the Corporation provided education awards and interest forbearance for

volunteers under the AmeriCorps State and National; NCCC; and VISTA programs.

■ Gifts and Contributions, into which the Corporation deposited gifts and contributions from individuals and

organizations for use in furthering the Corporation’s goals. 

Appropriated Funds:

■ Operating Expenses, from which the Corporation funded the Senior Corps, AmeriCorps, and Learn and Serve programs. 

■ Salaries and Expenses, from which the Corporation funded its general administrative expenses.

■ Office of Inspector General, from which the Corporation funded the expenses of the OIG.

■ VISTA Advance Payment Revolving Fund, from which the Corporation paid the living allowances for VISTA members

enrolled under cost share agreements with sponsoring organizations. The Corporation is reimbursed for these costs by

the sponsoring organization. Despite the account title, the VISTA Advance Payment Revolving Fund is not a revolving

fund, but rather a general fund expenditure account. 

On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009 (Recovery Act).

The Recovery Act included funding for the use of the Corporation to support an expansion of the AmeriCorps State and

National and VISTA programs. As a result of the passage of the Recovery Act, three additional appropriated funds were

established for FY 2009:

■ Operating Expenses, Recovery Act, from which the Corporation funded the increased AmeriCorps State and National

and VISTA membership as a result of the Recovery Act.

■ Salaries and Expenses, Recovery Act, which funded the Corporation’s expenses to improve IT systems and administer

the increased AmeriCorps State and National and VISTA membership. 

■ Office of Inspector General, Recovery Act, from which the Corporation funded the expenses of the OIG’s Recovery Act

oversight responsibilities.
Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 39

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. 

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. These statements

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.

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. 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.

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. 

The FBWT maintained in the National Service Trust is 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. In addition, the majority of

the funds received from individuals and organizations for deposit in the Gifts and Contributions fund are restricted to

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. Prepaid 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.
PART II Financial Management: CNCS Consolidated Financial Statements

40 CNCS FY 2009 Annual Financial Report

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.

H. Property and Equipment

Property and Equipment is stated at full cost, including all costs related to acquisition, delivery, and installation, less

accumulated depreciation (or amortization). Property and Equipment also includes assets acquired through capital leases,

which are initially recorded at the amount recognized as a liability for the capital lease at its inception. Normal maintenance

and repair costs on capitalized property and equipment are expensed when incurred. The Corporation’s general policy is to

capitalize Property and Equipment if the initial acquisition price is $50 thousand or more. Property and equipment with an

estimated useful life that extends beyond the year of acquisition is capitalized at historical cost and is depreciated (or

amortized) on a straight-line basis over estimated useful lives ranging from two to 10 years, using the half-year convention. 

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 an approved national service position 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. 
Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 41

P. Net Position

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

Unexpended appropriations reflect 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. 

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 is no longer available for

obligation and 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 on Investments. Interest income is recognized when earned. Treasury notes and bonds pay interest semi-annually,

based on the stated rate of interest. Interest on Treasury bills is paid at maturity. Interest income is adjusted by amortization

of premiums and discounts using the effective interest method. 

Revenue from Services Provided. The Corporation also receives income from reimbursable service agreements which is

recorded as revenue at the time the services are 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 $419 and $473 thousand to the CSRS, and $7.8 and $8.2 million to FERS

and TSP in fiscal years 2009 and 2008, respectively.

S. Income Taxes

As a Federal entity, the Corporation is exempt from all income taxes imposed by any governing body, 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. Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.
Type Unrestricted Restricted Total

Appropriated­Funds­ $­­­­­949,192­ $­­-­ $­­­­­949,192­

Trust­Funds­ -­ 452­ 452­

Gift­Funds­ -­ 888­ 888­

Total $ 949,192 $ 1,340 $ 950,532

Fund Balance with Treasury as of September 30, 2009 (dollars­in­thousands)

Type Unrestricted Restricted Total

Appropriated­Funds­ $­­­­­821,954­ $­­-­ $­­­­­821,954­

Trust­Funds­ -­ 227­ 227­

Gift­Funds­ -­ 808­ 808­

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

Fund Balance with Treasury as of September 30, 2008 (dollars­in­thousands)

Type Unrestricted Restricted Total

FBWT­ $­­­­949,192­ $­­­­­­­­­­1,340­ $­­­­­950,532

Investments­ -­ 519,838­ 519,838

Total $ 949,192 $ 521,178 $1,470,370

Unexpended Balances as of September 30, 2009 (dollars­in­thousands)

Type Unrestricted Restricted Total

Unobligated:­

Available­ $­­­­103,869­ $­­­­­­­13,763­ $­­­­­117,632­

Unavailable­ 23,286­ 63,680­ 86,966­

Obligated­not­yet­disbursed­ 822,037­ 443,735­ 1,265,772­

Total $ 949,192 $ 521,178 $1,470,370 

Status of Unexpended Balances as of September 30, 2009 (dollars­in­thousands)

PART II Financial Management: CNCS Consolidated Financial Statements

42 CNCS FY 2009 Annual Financial Report

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 National Service Trust may be expended for the purpose of providing 

an education award or student loan interest forbearance payment and are made directly to a qualified institution

(college, university, or other approved educational institution, or a lending institution holding an existing student loan)

as designated by the participant. The National Service Trust also pays awards under the President’s Freedom

Scholarship Program. 

■ Gift Funds – Gift Funds are funds received from individuals and organizations as donations in furtherance of the

purposes of national service laws.
Amortized Unrealized

Securities Cost Gains/(Losses) Fair Value

Notes­ $­­­­­358,614­ $­­­­­­­­­­3,571­ $­­­­­362,185

Bills­ 157,119 80 157,199

Total $ 515,733 $ 3,651 $ 519,384

Amortized Cost and Fair Value of Investment Securities as of September 30, 2009 (dollars­in­thousands)

Amortized Unrealized

Securities Cost Gains/(Losses) Fair Value

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

Bills­ 80,281 108 80,389

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

Amortized Cost and Fair Value of Investment Securities as of September 30, 2008 (dollars­in­thousands)

2009 2008

Investments,­Carrying­Value $­­­­­515,733 $­­­­­479,634­

Investments­and­Interest­Receivable 4,105 4,246

Total $ 519,838 $ 483,880

Investments and Related Receivables as of September 30 (dollars­in­thousands)

Type Unrestricted Restricted Total

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

Investments­ -­ 483,880­ 483,880

Total $ 821,954 $ 484,915 $1,306,869

Unexpended Balances as of September 30, 2008 (dollars­in­thousands)

Type Unrestricted Restricted Total

Unobligated:­

Available­ $­­­­­­­47,976­ $­­­­­­­10,226­ $­­­­­58,202­

Unavailable­ 43,843­ 55,489­ 99,332­

Obligated­not­yet­disbursed­ 730,135­ 419,200­ 1,149,335­

Total $ 821,954 $ 484,915 $1,306,869 

Status of Unexpended Balances as of September 30, 2008 (dollars­in­thousands)

Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 43

Note 3: National Service Trust Investments and Related Receivables

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

Funds Trust Fund Total

2009

Accounts­Receivable­ $­­­­­­­­­­2,875­ $­­­­­­­­­­­­­350 $­­­­­­­­­­3,225

Less:­allowance­for­loss­on­receivables­ (462) - (462)

Accounts Receivable, Net $ 2,413 $ 350 $ 2,763

2008

Accounts­Receivable­ $­­­­­­­­­­2,894­ $­­­­­­­­­­­­­­­­31 $­­­­­­­­­­2,925

Less:­allowance­for­loss­on­receivables­ (309) - (309)

Accounts Receivable, Net $ 2,585 $ 31 $ 2,616

Accounts Receivable as of September 30, 2009 (dollars­in­thousands)

General Property and Equipment as of September 30, 2009 (dollars­in­thousands)

Service Accumulated Net Book

Major Class Life (Years) Cost Depreciation Value

Equipment­ 3-10­ $­­­­­­­2,996 $­­­­­­(1,662)­ $­­­­­­­­­­1,334­

ADP­Software­ 2­ 8,263 (7,888)­ 375­

Total $ 11,259 $ (9,550) $ 1,709

General Property and Equipment as of September 30, 2008 (dollars­in­thousands)

Service Accumulated Net Book

Major Class Life (Years) Cost Depreciation Value

Equipment­ 3-10­ $­­­­­­­3,084 $­­­­­­(1,541)­ $­­­­­­­­­­1,543­

Capital­Leases­ 3-5­ 416 (291)­ 125­

ADP­Software­ 2­ 8,774 (7,399)­ 1,375­

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

FY 2009 FY 2009 FY 2008 FY 2008

Held-to-Maturity Securities Cost Fair Value Cost Fair Value

Due­in­1­year­or­less­ $426,683­ $429,627­ $357,731­ $359,913­

Due­after­1­year­up­to­5­years­ 89,050­ 89,757­ 121,903­ 126,438­

Total $515,733 $519,384 $479,634 $486,351

Maturation of Securities Held as of September 30 (dollars­in­thousands)

PART II Financial Management: CNCS Consolidated Financial Statements

44 CNCS FY 2009 Annual Financial Report

At September 30, 2009, the notes held at year-end had an interest rate range of 1.375% to 6.50% and an outstanding

maturity period of approximately one day to four years. The bills held at year-end had an interest rate range of 0.035% to

1.295% and were all due to mature within 162 days. The par values of these bills range from $.40 million to $30.70 million. 

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

portion of the funds in the National Service Trust for use in the event that its estimates used to calculate obligational

amounts for education awards prove to be too low. As of September 30, 2009, $50.197 million of the Corporation’s

investment account has been set aside for this reserve.

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

Note 4: Accounts Receivable, Net

Note 5: Property and Equipment, Net
2009 2008

Education­awards­ $­­1,501,414 $­­1,335,254

Interest­forbearance­ 48,209 42,707

President's­Freedom­Scholarship­Program­ 22,527 22,527

Total­estimated­service­award­liability­ 1,572,150 1,400,488

Less:­cumulative­awards­paid­ 1,248,083 1,097,121

Total $ 324,067 $ 303,367

Service Award Liability as of September 30 (dollars­in­thousands)

Estimated Operating Lease Commitments as of September 30 (dollars­in­thousands)

FY 2009 FY 2008

Fiscal Facilities FY 2009 FY 2009 FY 2009 Facilities FY 2008 FY 2008 FY 2008

Year Awarded Vehicles Other Total Space Vehicles Other Total

2009 $­­­­­­­­­­­­­­­­-­ $­­­­­­­­­­­­­­­­-­ $­­­­­­­­­­­­­­­­-­ $­­­­­­­­­­­­­­­-­ $­­­­­­8,351­ $­­­­­­­­­­543­ $­­­­­­­­­­139­ $­­­­­­­9,033­

2010 9,215­ 504­ 110­ 9,829­ 8,602­ 562­ 122­ 9,286­

2011 9,491­ 521­ 107­ 10,119­ 8,860­ 581­ 126­ 9,567­

2012 9,776­ 539­ 99­ 10,414­ 9,125­ 602­ 122­ 9,849­

2013 10,069­ 557­ 91­ 10,717­ 9,399­ 623­ 114­ 10,136­

2014 10,371­ 576­ 90­ 11,037­ -­ -­ -­ -­

Total $ 48,922 $ 2,697 $ 497 $ 52,116 $ 44,337 $ 2,911 $ 623 $ 47,871 

Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 45

Note 6: Trust Service Award Liability

Individuals who successfully complete terms of service in AmeriCorps programs earn education awards, which can be used

to make payments on qualified student loans or for educational expenses at qualified educational institutions. The awards,

which are generally 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 National Service 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, 2009, increased by approximately $20.7 million from the net Service

Award Liability as of September 30, 2008. 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 National Service

Trust available for $1,000 scholarships for high school students known as Presidential Freedom Scholarships. To fund each

scholarship, a local community or corporate source matched the $500 portion of the scholarship provided by the

Corporation. The program was discontinued in FY 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.

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. The 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 NCCC. Commitments of the Corporation for future rental

payments under operating leases at September 30 are as follows:
Net Position by Fund Balance Components as of September 30, 2009 (dollars­in­thousands)

Appropriated

Gift Fund Trust Fund Funds Total

Total­unexpended­appropriations­ $­­-­ $­­-­ $­­­­­890,956­ $­­­­­890,956

Cumulative­results­of­operations­ 909­ 196,573­ (8,530) 188,952

Total Net Position $ 909 $ 196,573 $ 882,426 $1,079,908

Net Position by Fund Balance Components as of September 30, 2008 (dollars­in­thousands)

Appropriated

Gift Fund Trust Fund Funds Total

Total­unexpended­appropriations­ $­­-­ $­­-­ $­­­­­769,016­ $­­­­­769,016

Cumulative­results­of­operations­ 801­ 180,771­ (8,268) 173,304­

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

PART II Financial Management: CNCS Consolidated Financial Statements

46 CNCS FY 2009 Annual Financial Report

Note 8: Actuarial FECA Liability

The Corporation’s actuarial liability for future workers’ compensation benefits under FECA was $11.365 and $11.638 million

as of September 30, 2009 and 2008, 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.

Note 10: Appropriations Received by the National Service Trust

For fiscal year 2009, the National Service Trust received $131.075 million under the Omnibus Appropriations Act, 2009 (Public

Law 111-8) and an additional $40 million under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). For

fiscal year 2008 the National Service Trust received $122.539 million under the Consolidated Appropriations Act, 2008 (Public

Law 110-161). 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

$3.857 million and $16.246 million to the Trust under this provision in FY 2009 and FY 2008, respectively.

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 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 National Service Trust

operations. The NCCC sub-program includes member stipend and benefits, and direct and allocated personnel and

administrative costs including AmeriCorps recruitment and National Service Trust operations. The VISTA sub-program

includes grant expenses, member stipend and benefits, as well as direct and allocated personnel and administrative costs

including AmeriCorps recruitment and National Service Trust operations. 

The 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. 
Components of Grant Funds Expended for the years ended September 30 (dollars­in­thousands)

Expenses by Major Responsibility Segment for the Years Ended September 30 (dollars­in­thousands)

2009 2008

Domestic­Volunteer­Service­Act­Programs­ $­­­­­248,945 $­­­­­248,385­

National­and­Community­Service­Act­Programs­ 333,676­ 316,158­

Pass-through­Grants­ 682­ 163­

Total Grant Funds Expended $ 583,303 $ 564,706

2009 2008

AmeriCorps: 

State/National­ $­­­­484,486­ $­­­­459,584

NCCC­ 44,830­ 39,334

VISTA­ 132,166 131,506

Subtotal $ 661,482 $ 630,424

National Senior Service Corps:

Retired­and­Senior­Volunteer­Program­ 66,783­ 66,284

Foster­Grandparent­Program­ 120,381­ 119,396

Senior­Companion­Program­ $­ 51,641 $­ 51,114

Subtotal 238,805 236,794

Learn­and­Serve­America­ 47,812­ 42,436

Pass-through­Grants­ 682­ 163

Office­of­Inspector­General­(OIG)­ 6,045­ 6,284

Total Expenses $ 954,826 $ 916,101

Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 47

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. 

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. In addition, prior to FY 2007, the Corporation’s

annual appropriation included Congressionally-earmarked grants. 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.
AmeriCorps National Senior Service Corps Pass Through

Grant and Related Expense State/National NCAA VISTA RSVP FGP SCP Learn & Serve Grants OIG Total

Grant­funds­expended­ $­­­­­290,948­ $­­-­ $­­­­­­­29,413­ $­­­­­­­61,081­ $­­­­­111,055­ $­­­­­­­47,396­ $­­­­­­­42,728­ $­­­­­­­­­­­­­682­ $­­-­ $­­­­­583,303­VISTA­&­NCCC­stipends­&­benefits­ -­ 11,759­ 53,656­ -­ -­ -­ -­ -­ -­ 65,415­Service­award­expense­ 152,312­ 2,885­ 16,465­ -­ -­ -­ -­ -­ -­ 171,662­Total Grant and Related Expense 443,260 14,644 99,534 61,081 111,055 47,396 42,728 682 - 820,380 Administrative ExpenseFederal­employee­salaries­&­benefits­ 26,786­ 11,894­ 20,665­ 2,860­ 5,192­ 2,217­ 3,372­ -­ 3,678­ 76,664­Travel­&­transportation­ 878­ 2,530­ 3,792­ 699­ 1,278­ 551­ 213­ -­ 94­ 10,035­Rent,­communications,­&­utilities­ 3,935­ 4,235­ 934­ 448­ 813­ 347­ 299­ -­ 369­ 11,380­Program­analysis­&­evaluation­ 744­ 677­ 677­ 218­ 392­ 168­ 507­ -­ -­ 3,383­Printing­&­reproduction­ 59­ 91­ 74­ 27­ 28­ 9­ 8­ -­ -­ 296­Other­services­and­expenses­ 7,602­ 9,676­ 6,181­ 1,189­ 1,240­ 755­ 571­ -­ 1,861­ 29,075­Supplies­&­materials­ 459­ 1,064­ 172­ 161­ 201­ 120­ 44­ -­ 43­ 2,264­Depreciation,­amortization­&­loss­on­disposition­of­assets­ 753­ 19­ 135­ 99­ 180­ 77­ 69­ -­ -­ 1,332­Bad­debt­ 10­ -­ 2­ 1­ 2­ 1­ 1­ -­ -­ 17­Total Administrative Expense 41,226 30,186 32,632 5,702 9,326 4,245 5,084 - 6,045 134,446 Total Expenses by Type $ 484,486 $ 44,830 $ 132,166 $ 66,783 $ 120,381 $ 51,641 $ 47,812 $ 682 $ 6,045 $ 954,826

Expenses by Type and Subprogram for the Year Ended September 30, 2009Expenses by Type and Subprogram for the Year Ended September 30, 2008

AmeriCorps National Senior Service Corps Pass Through

Grant and Related Expense State/National NCAA VISTA RSVP FGP SCP Learn & Serve Grants OIG Total

Grant­funds­expended­ $­­­­­278,649­ $­­-­ $­­­­­­­29,062­ $­­­­­­­60,763­ $­­­­­111,231­ $­­­­­­­47,329­ $­­­­­­­37,509­ $­­­­­­­­­­­­­163­ $­­-­ $­­­­­564,706­VISTA­&­NCCC­stipends­&­benefits­ 57­ 5,645­ 53,097­ -­ -­ -­ -­ -­ -­ 58,799­Service­award­expense­ 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 ExpenseFederal­employee­salaries­&­benefits­ 26,339 13,637­ 21,994 3,104 5,677 2,415 3,423 -­ 3,632­ 80,221­Travel­&­transportation­ 967­ 3,734­ 4,692­ 113­ 201­ 86­ 109­ -­ 137­ 10,039­Rent,­communications,­&­utilities­ 3,716­ 2,459­ 888­ 453­ 829­ 353­ 263­ - 360­ 9,321­Program­analysis­&­evaluation­ 1,049­ 954­ 954­ 307­ 553­ 237­ 715­ -­ -­ 4,769­Printing­&­reproduction­ 57­ 83­ 77­ 43­ 31­ 13­ 5­ -­ -­ 309­Other­services­and­expenses­ 5,589­ 7,121­ 4,892­ 1,311­ 523­ 532­ 292­ -­ 2,069­ 22,329­Supplies­&­materials­ 618­ 1,838­ 362­ 63­ 117­ 50­ 41­ -­ 86­ 3,175­Depreciation,­amortization­&­loss­on­disposition­of­assets­ 970­ 13­ 181­ 134­ 246­ 104­ 83­ -­ -­ 1,731­Bad­debt­ (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 

PART II Financial Management: CNCS Consolidated Financial Statements

48 CNCS FY 2009 Annual Financial Report
National Service Award Expense for the years ended September 30 (dollars­in­thousands)

2009 2008

Estimated­education­awards­ $­­­­­166,160­ $­­­­­155,347

Estimated­interest­forbearance­ 5,502­ 5,443

President’s­Freedom­Scholarship­Program­ -­ -

National Service Award Expense $ 171,662 $ 160,790

Unexpended Appropriations, Net as of September 30 (dollars­in­thousands)

2009 2008

Unexpended­Appropriations,­Beginning­Balance­ $­­­­­769,016­ $­­­­­828,597­

Increases:

Appropriations­Received,­Net­of­Trust­ 1,090,866­ 871,558­

Decreases:

Appropriated­Capital­Used­ (770,708) (748,580)

Appropriations­Transferred­to­Trust­Fund­(net­of­recissions)­ (171,075) (122,539)

Program­Funds­Transferred­to­Trust­ (3,857) (16,246)

Recissions­and­Cancellations­ (23,286) (43,774)

Total­Decreases­ (968,926) (931,139)

Change in Unexpended Appropriations 121,940 (59,581)

Unexpended Appropriations, Ending Balance $ 890,956 $ 769,016 

Financial Management: CNCS Consolidated Financial Statements PART II

CNCS FY 2009 Annual Financial Report 49

Note 12: National Service Award Expense

Members serving in approved national service positions are eligible to earn a service award to pay for qualified education

expenses. The National Service Trust also pays interest forbearance costs on qualified student loans during the period that

members are serving in an approved national service position. 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, 2009 and 2008, respectively, has been adjusted to reflect the fact that earned awards are not

always used. 

Note 13: Change in Unexpended Appropriations, Net

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.
Fiscal Year Direct Reimbursable Total

2009­ $­1,232,085 $­12,526­ $ 1,244,611

2008­ $­1,057,252 $­7,633­ $ 1,064,885

Consolidated Obligations Incurred (dollars­in­thousands)

PART II Financial Management: CNCS Consolidated Financial Statements

50 CNCS FY 2009 Annual Financial Report

Note 15: Undelivered Orders at Fiscal Year-End

The Corporation's undelivered orders at September 30, 2009 and 2008 were $894,283 thousand and $804,283 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 FY 2009 and FY 2008 were:
Assets 2009 2008

Trust­Fund­Balance­with­Treasury­ $­­­­­­­­­­­­­452 $­­­­­­­­­­­­­227

Investments,­carrying­value­ 515,733­ 479,634

Investment­and­interest­receivable­ 4,105 4,246

Accounts­receivable­ 350 31

Total Assets $ 520,640 $ 484,138

Liabilities

Service­Award­Liability­ $­­­­­324,067­ $­­­­­303,367­

Net Position

Cumulative­Results­of­Operations­ 196,573 180,771

Total Liabilities and Net Position $ 520,640 $ 484,138

National Service Trust Fund

Schedules of Financial Position as of September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­schedules.

National Service Trust Fund

Schedules of Operations and Changes in Net Position for the Period Ending September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­schedules.

Revenues 2009 2008

Appropriations­ $­­­­­171,075 $­­­­­122,539

Transfer­in­of­Program­Funds 3,857 16,246

Interest­ 12,236 17,804

Other­ 326 -

Total Revenues $ 187,494 $ 156,589

Expenses

AmeriCorps­Program­ $ (171,662) $ (160,790)

Service­Learning­Program­ - -

(Writeoff)­/­Recovery­of­Receivables­ (30) 23

Total Expenses (171,692) (160,767)

Excess of Revenues Over Expenses $ 15,802 $ (4,178)

Net Position

Excess­of­Revenues­Over­Expenses­ $­­­­­­­15,802 $­­­­­­(4,178)

Net­Position,­Beginning­of­Year­ 180,771 184,949

Net Position, End of Year $ 196,573 $ 180,771

Financial Management: Supplemental Information on the National Service Trust PART II

CNCS FY 2009 Annual Financial Report 51

Supplemental Information on the 

National Service Trust

Fiscal Years 2009 and 2008:
National Service Trust Fund

Schedules of Trust Obligations as of September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­schedules.

Resources 2009 2008

Trust­Fund­Balance­with­Treasury­ $­­­­­­­­­­­­­452 $­­­­­­­­­­­­­227

Investments,­carrying­value­ 515,733 479,634

Investment­and­interest­receivable­ 4,105 4,246

Accounts­receivable­ 350 31

Sub-total 520,640 484,138

Less­investments­and­receivables­not­available­for­obligation­ (13,833) (8,792)

Less­Trust­Reserve­ (50,197) (46,697)

Total Resources $ 456,610 $ 428,649

Unliquidated Obligations

President’s­Freedom­Scholarships­ $­­­­­­(1,035) $­­­­­­­­­­(772)

Education­Awards­ (424,571) (402,261)

Interest­Forbearance­ (18,129) (16,167)

Total Unliquidated Obligations $ (443,735) $ (419,200)

Commitments

Education­Awards­ $­­­­­­­­­­­­­­­­­­­- $­­­­­­­­­­(570)

Interest­Forbearance­ - (31)

Total Commitments - (601)

Funds Available for Obligation at September 30 $ 12,875 $ 8,848

PART II Financial Management: Supplemental Information on the National Service Trust

52 CNCS FY 2009 Annual Financial Report
National Service Trust Fund

Schedules of Trust Budgetary Resources as of September 30 (dollars­in­thousands)

The­accompanying­notes­are­an­integral­part­of­these­financial­schedules.

2009 2008

Funds­Available­for­Obligation,­beginning­of­year­ $­­­­­­­­­­8,848 $­­­­­­­­­­6,727

Budgetary Resources

Appropriations

Appropriation­Received­in­Trust­(net­of­rescissions)­ 171,075 122,539

Transfers­in­of­Program­Funds­ 3,857 16,246

Subtotal 174,932 138,785

Deobligation­of­Member­Positions­ 3,617 1,399

Less: Additions to Trust Reserve (3,500) -

Total Budgetary Resources $ 183,897 $ 146,911

Obligations

Education­Awards­ $­­(164,763) $­­(133,804)

Interest­Forbearance­ (6,860) (5,677)

President’s­Freedom­Scholarships­ - -

Total Obligations $ (171,623) $ (139,481)

Net Change in Commitments

Education­Awards­ $­­­­­­­­­­­­­570 $­­­­­­­­­­1,346

Interest­Forbearance­ 31 72

Total Commitments $ 601 $ 1,418

Funds Available for Obligaton, end of year $ 12,875 $ 8,848

Financial Management: Supplemental Information on the National Service Trust PART II

CNCS FY 2009 Annual Financial Report 53

Notes to the Trust Fund Schedules

A. Basis Accounting

The Schedules of Financial Position; Operations and Changes in Net Position; Trust Obligations; and Trust Budgetary

Resources have been prepared from the books and records of the Corporation in accordance with the Strengthen

AmeriCorps Program Act (Public Law 108-45, 42 USC § 12605) for the periods commencing October 1 and ending September

30, 2009 and 2008, respectively.

The activities of the Trust are funded through the annual Departments of Labor, Health and Human Services, and Education,

and Related Agencies Appropriations Act, which funds National and Community Service Act programs. Appropriations are

provided on a no-year basis for the Trust, a fund within the Corporation used to provide education awards and student loan

interest forbearance to eligible participants. Trust appropriations do not expire with the passage of time and are retained by

the Corporation in the Trust until used for eligible purposes.

The Trust provides awards for AmeriCorps members serving in approved national service positions under AmeriCorps State

and National, AmeriCorps NCCC, and AmeriCorps VISTA, as well as for the AmeriCorps Education Award Program, where

sponsoring organizations are responsible for providing member subsistence and other costs, and the Corporation provides

an education award and a small amount for administrative costs.

Funds from the Trust may be expended for the purpose of providing an education award or student loan interest

forbearance payment and must always be paid directly to a qualified institution (college, university, or other approved

educational institution, or a lending institution holding an existing student loan) as designated by the participant. The Trust
PART II Financial Management: Supplemental Information on the National Service Trust

54 CNCS FY 2009 Annual Financial Report

may also expend funds for payments under the President’s Freedom Scholarship Program as authorized under various

Corporation appropriations through fiscal 2006.

The recognition of budgetary accounting transactions is essential for compliance with legal controls over the use of Federal

funds. Budgetary accounting principles are designed to recognize the obligation of funds upon the establishment of a

properly documented legal liability, which in many cases is different from the occurrence of an accrual-based transaction.

The Strengthen AmeriCorps Program Act directs that, beginning with fiscal 2003, Trust obligations be recorded at the time

the Corporation: (1) enters into an enforceable agreement with an individual participant to serve in a program carried out

under subtitle E of title I of the National and Community Service Act of 1990 (42 USC § 12611 et seq.), or title I of the

Domestic Volunteer Service Act of 1973 (42 USC § 4951 et seq.); or (2) awards a grant to (or enters into a contract or

cooperative agreement with) an entity to carry out a program for which such a position may be approved under section 123

of the Act (42 USC § 12573). The Strengthen AmeriCorps Program Act also directs that the obligational amount be based on

the estimated value of the education benefit, discounted for the estimated enrollment, earning and usage rates, and the

time value of money.

In fiscal 2009 the Corporation used the following assumptions to calculate Trust obligations and budgetary needs: full value

of the education award, 100 percent enrollment rate, and earning and usage rates averaging approximately 80 percent.

Programs have up to two years after award to enroll members in positions. Funds related to positions awarded to programs

but not filled are periodically deobligated and become available for award for new program activities. The Corporation

deobligated $3.617 and $1.399 million in fiscal 2009 and 2008, respectively, related to unfilled positions.

B. Trust Appropriations

For fiscal year 2009, the National Service Trust received $131.075 million under the Omnibus Appropriations Act, 2009 (Public

Law 111-8) and an additional $40 million under the American Recovery and Reinvestment Act of 2009 (Public Law 111-5). For

fiscal year 2008 the National Service Trust received $122.539 million under the Consolidated Appropriations Act, 2008 (Public

Law 110-161). 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

$3.857 million and $16.246 million to the Trust under this provision in fiscal year 2009 and 2008, respectively.

C. Trust Reserve

As required by the Strengthen AmeriCorps Program Act the Corporation sets aside in reserve a portion of the funds

appropriated to the Trust in the event that its estimates used to calculate obligational amounts for education awards prove

to be too low. The Corporation added $3.5 million to the reserve in fiscal year 2009 for Recovery Act positions. No funds were

added to the reserve in fiscal year 2008. The total amount held in reserve under this provision was $50.197 and $46.697

million as of September 30, 2009 and 2008, respectively.

D. Trust Awards

Since the Corporation’s inception in 1994, AmeriCorps members have earned over $1.7 billion in education awards. The

Corporation has made $1.2 billion in payments to educational institutions and student loan holders on these awards. In

addition, the Corporation has made $42.2 million in interest forbearance payments since the program’s inception.

Approximately $164.8 million in education awards earned had expired without being used as of September 30, 2009. The

Trust obligation formula has been adjusted to reflect these expired awards. Payments for President’s Freedom Scholarships

have totaled $21.5 million.
Independent Auditor’s Report

This report was issued to Corporation management on November 13, 2009.

Under the laws and regulations governing audit follow up, the Corporation

is to make final management decisions on the report’s findings and

recommendations no later than May 13, 2010, and complete its corrective

actions by November 12, 2010. Consequently, the reported findings do not

necessarily represent the final resolution of the issues presented.

Independent Auditor’s Report PART III

CNCS FY 2009 Annual Financial Report 55

Office of Inspector General

Corporation for National 

and Community Service

AUDIT OF THE

CORPORATION FOR NATIONAL AND

COMMUNITY SERVICE’S

FISCAL YEAR 2009 FINANCIAL STATEMENTS

Audit Report Number 10-01

Prepared by:

CLIFTON GUNDERSON LLP

11710 Beltsville Drive

Calverton, Maryland 20705
56 CNCS FY 2009 Annual Financial Report

PART III Independent Auditor’s Report

TO: Nicola Goren

Acting Chief Executive Officer

FROM: Kenneth Bach

Acting Inspector General

SUBJECT: Audit of the Corporation for National and Community Service

Fiscal Year 2009 Financial Statements

OIG Audit Report Number 10-01

We contracted with the independent certified public accounting firm of Clifton Gunderson LLP (Clifton) to

audit the consolidated financial statements of the Corporation for National and Community Service

(Corporation) as of September 30, 2009 and 2008, and for the years then ended. The contract required that

the audit be performed in accordance with generally accepted government auditing standards.

In its audit, Clifton found

• The financial statements were fairly presented, in all material respects, in conformity with generally

accepted accounting principles;

• No material weaknesses or significant deficiencies in the Corporation’s internal controls;

• No instances of noncompliance with relevant laws and regulations.

Clifton Gunderson is responsible for the attached auditor’s report, dated November 10, 2009, and the

conclusions expressed therein. The Office of Inspector General does not express an opinion on the

Corporation’s Financial Statements or Clifton’s conclusions about the effectiveness of internal control or

compliance with laws and regulations.

Attachment

cc: William Anderson, Acting Chief Financial Officer

Frank Trinity, General Counsel

Kristin McSwain, Chief Program Operations

Rocco Gaudio, Deputy CFO for Planning and Program Management

Mary Cadagin, Chief Information Officer

Bridgette Roy, Audit Liaison and Administrative Assistant

Bill Oliver, Engagement Partner, Clifton Gunderson LLP (without attachment)

OFFICE OF INSPECTOR GENERAL

November 13, 2009
To the Board of Directors 

and Inspector General

Corporation for National and Community Service

We have audited the accompanying consolidated statements of financial position of the Corporation for

National and Community Service (Corporation) as of September 30, 2009 and 2008, and the related

consolidated statements of operations and changes in net position and cash flows, and the combined

statements of budgetary resources (hereinafter referred to as the “financial statements”) 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, 2009 and 2008, 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 10,

2009, on our consideration of the 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.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a

whole. The accompanying supplemental information on the National Service Trust is presented for

purposes of additional analysis and is not a required part of the basic financial statements. Such

information has been subjected to the auditing procedures applied in the audits of the basic financial

statements, and in our opinion, is presented fairly, in all material respects, in relation to the basic financial

statements, taken as a whole.

CNCS FY 2009 Annual Financial Report 57

Independent Auditor’s Report PART III

Independent Auditor’s Report
58 CNCS FY 2009 Annual Financial Report

PART III Independent Auditor’s Report

The Management’s Discussion and Analysis (MD&A) contains a wide range of information, some of which

is not directly related to the financial statements. We compared this information for consistency with the

financial statements and discussed the methods of measurement and presentation with the Corporation’s

officials. Based on this limited work, we found no material inconsistencies with the financial statements;

accounting principles generally accepted in the United States, or OMB guidance. However, we do not

express an opinion on this information.

The other accompanying information sections Donations and Contributions, and Improper Payments 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. 

Calverton, Maryland

November 10, 2009
Independent Auditor’s Report on Compliance and Other Matters

To the Board of Directors 

and 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, 2009, and have issued our report thereon dated

November 10, 2009. 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 not be used by

anyone other than these specified parties.

Calverton, Maryland

November 10, 2009

CNCS FY 2009 Annual Financial Report 59

Independent Auditor’s Report PART III
Independent Auditor’s Report on Internal Control

To the Board of Directors 

and 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, 2009, and have issued our report thereon dated

November 10, 2009. 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.

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.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in

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. Our consideration of internal control over financial reporting was

for the limited purpose described above and would not necessarily identify all deficiencies in internal control

over financial reporting that might be significant deficiencies or material weaknesses. We did not identify

any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as

defined above.

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 10, 2009

60 CNCS FY 2009 Annual Financial Report

PART III Independent Auditor’s Report
CNCS FY 2009 Annual Financial Report 61

Independent Auditor’s Report PART III

Management’s 

Response to 

Report
62 CNCS FY 2009 Annual Financial Report

PART III Independent Auditor’s Report

MEMORANDUM

Date: November 12, 2009

To: Kenneth Bach, Acting Inspector General

From: William Anderson, Acting Chief Financial Officer

Subject: Draft Report on the Audit of the Corporation’s Fiscal Year 2009 Financial Statements

Thank you for the opportunity to comment on the draft report on the audit of the Corporation’s

fiscal 2009 financial statements. The financial statements, which include supplemental schedules on

the National Service Trust, received an unqualified opinion. Similarly, the report on internal control

and report on compliance with laws and regulations noted no significant deficiencies or reportable

conditions. Importantly, the audit confirmed that the Corporation resolved the significant deficiency

reported in the 2008 audit related to the continuity of operations, application development, and

change control management.

Executing sound financial stewardship of the Corporation’s resources is an essential element for

achieving our mission of improving lives, strengthening communities, and fostering civic

engagement through service and volunteering. While we are proud of these audit results, we

recognize that the work before us is challenging and we need to continue to improve our operations

if we are to achieve the expansion envisioned by the Edward M. Kennedy Serve America Act. To

that end, we will continue our work with the Corporation’s Office of Inspector General and its

financial auditors to identify areas where efficiencies can be made and internal controls improved.

The Corporation would also like to express its appreciation for the hard work your staff and the

staff of Clifton Gunderson made on the 2009 audit. Without this collaborative effort we would not

have been able to achieve the tight deadline for completing the audit.
1201 New York Avenue, NW

Washington, DC 20525

202-606-5000

TTY 202-606-3472

NationalService.gov

info@cns.gov