Annual Financial Report 

Fiscal Year 2011

AmeriCorps member provides disaster relief 

in Joplin, Mo. after May 2011 tornado

Purpose of this Report

In lieu of a Performance and Accountability Report, the Corporation for National and Community Service (CNCS) will instead produce three reports 

that provide financial management and program performance information. Each report will be available on CNCS’ website at www.nationalservice.

gov/about/role_impact/performance.asp as they are completed.

• This report, the Annual Financial Report (AFR), focuses on CNCS’ financial management and the results of the agency’s annual financial audit. It 

includes management’s assurance statement, CNCS’ improper payments report, and a response from management. 

• The Annual Performance Report (APR) provides an overall assessment of agency performance. The APR will be included in CNCS’ FY 2013 

Congressional Budget Justification, which will be transmitted to Congress in February 2012. 

• The Performance Highlights Report summarizes key information from the AFR and APR. It will be available in February 2012. 

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 the Office of Management and Budget 

(OMB), as well as the recommendations of the Association of Government Accountants’ Certificate of Excellence in Accountability Reporting program.

How to Serve

If you are interested in joining or learning more about CNCS programs, go to nationalservice.gov. Under the “For Individuals” menu, click on “Join 

Now” to discover which opportunity is right for you.

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

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

Corporation for National and Community Service FY 2011 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 at 202-606-5000 or at the mailing address noted above.

1201 New York Avenue, NW Washington, DC 20525

202-606-5000 • TTY 202-606-3472 

NationalService.gov info@cns.gov
Table of Contents

I. Management’s Discussion and Analysis

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

Agency Mission and Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

CNCS Programs and Initiatives ..........................................................................................12

Program Performance and Analyses .......................................................................................16

Management Performance ..............................................................................................26

Internal Controls, Audit Results, and Management Assurances ..................................................................29

Analysis of Appropriations and Financial Condition ...........................................................................32

II. Financial Statements

Message from the Chief Financial Officer ..................................................................................39

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

III. Independent Auditor’s Report

Office of Inspector General (OIG) Transmittal Letter ...........................................................................70

Independent Auditor’s Report on Financial Statements ........................................................................71

Independent Auditor’s Report on Compliance and Other Matters .................................................................73

Independent Auditor’s Report on Internal Control .............................................................................74

Management’s Response ...............................................................................................77 

IV. Other Accompanying Information

Donations and Contributions ............................................................................................79

National Service Trust Fund Status Report ..................................................................................81

Improper Payments ...................................................................................................92
Management’s Discussion & Analysis | PART I 1

The Corporation for National and Community Service

Management’s Discussion & Analysis
Management’s Discussion & Analysis | PART I 2

The Corporation for National and Community Service

MESSAGE FROM THE ACTING CEO

I am pleased to present the Fiscal Year 2011 Annual Financial Report of the Corporation for National 

and Community Service (CNCS): a summary of our performance and financial condition in relation to 

our mission and goals. 

At a time of growing social need, as Americans look for ways to give back, CNCS engages millions of 

Americans in focused, sustained service to solve community problems, support vulnerable citizens, 

strengthen the voluntary sector, and improve their own lives. 

Based on the principles of local control, competition, accountability, and public-private partnership, 

CNCS and the network it supports engages millions of Americans in results-driven service each year 

through more than 70,000 community and faith-based organizations. These citizens mentor and 

tutor at-risk youth, rebuild communities struck by natural disasters, help seniors live independently, 

expand economic opportunity, support veterans and military families, and meet other pressing 

community needs.

CNCS invests in community solutions by providing grants, volunteers, training, and resources 

to help nonprofit and faith-based organizations expand services, build capacity, develop new 

partnerships, and create innovative and sustainable programs. CNCS multiplies the impact of its 

federal investment by leveraging hundreds of millions of non-federal dollars, mobilizing millions of additional volunteers, and operating its programs 

with high degrees of accountability, transparency, and efficiency.

Strategic Plan: Focus on Impact

In FY 2011, CNCS approved and began implementation of a 

comprehensive five-year Strategic Plan that provides a roadmap 

for using national service to address critical challenges facing 

our communities and our nation. The plan is the result of a yearlong collaborative effort between CNCS and our network of state 

commissions, grantees, project sponsors, participants, staff, and the 

public, through which more than 1,900 individuals provided input on 

our strategic direction. 

The plan builds on the strong foundation of national service that has 

developed over the past four decades and was guided by the vision 

set forth in the bipartisan Edward M. Kennedy Serve America Act. 

The Act and the Strategic Plan recognize that national service will 

have its greatest impact if we target resources on a core set of critical 

national problems and evaluate our impact using standardized 

performance measures. 

The plan focuses national service on six priority areas: Disaster Services, Economic Opportunity, Education, Environmental Stewardship, Healthy 

Futures, and Veterans and Military Families. The Strategic Plan sets forth goals to strengthen the experience of individuals participating in national 

service and maximize the value CNCS adds to grantees, partners, and participants. In addition, the plan lays out goals to fortify management 

operations and sustain a capable, responsive, and accountable organization.

Based on principles of local control, 

competition, accountability, and 

public-private partnership, CNCS 

and the network it supports engages 

millions of Americans in resultsdriven service each year through 

more than 70,000 community and 

faith-based organizations.
Management’s Discussion & Analysis | PART I 3

The Corporation for National and Community Service

As part of the Strategic Plan, CNCS has adopted a set of 16 agency-wide priority measures that build upon our historic work, provide a common 

focal point for all our programs, and allow us to demonstrate the tangible ways our grantees and participants are having an impact. All of our 

programs are starting to institute these measures through program guidance, grant competitions, and technical assistance to grantees. CNCS will 

begin to report data against these measures at the conclusion of FY 2013. As CNCS makes the shift to this new comprehensive set of standardized 

performance measures, it will use a set of interim reporting methods for fiscal years 2011 and 2012.

Improving Lives and Strengthening Communities

While final performance data for FY 2011 is still being collected for presentation in the FY 2013 Congressional Budget Justification, preliminary data 

suggests that CNCS programs are engaging millions of Americans in service that is having an impact on the pressing challenges facing communities today. 

• In response to a series of devastating disasters in the spring and summer, AmeriCorps members and Senior Corps volunteers deployed to multiple 

states, providing skilled manpower and managing tens of thousands of volunteers responding to the Joplin and Alabama tornadoes, Hurricane Irene, 

Tropical Storm Lee, Texas wildfires, and severe flooding in Southern and Midwestern states. 

• To provide one example, less than eight hours after an EF5 tornado killed more than 150 people and caused billions in damage in Joplin, Missouri, 

an AmeriCorps team arrived to set up a missing person hotline. Since then, more than 250 AmeriCorps members have operated a collection and 

sorting warehouse, removed debris, and managed a volunteer operation that has engaged 63,500 volunteers who have performed more than 

533,000 hours of work. 

• CNCS enrolled more than 7,300 AmeriCorps VISTA members to expand 

the capacity of nearly 1,200 organizations and communities affected 

by poverty and unemployment. Members raised $133 million in cash 

and in-kind resources in support of anti-poverty programs across 

the country. 

• Approximately 74,000 AmeriCorps State and National members 

were funded to serve at more than 14,000 service sites, where 

they will meet critical needs and engage and recruit an estimated 

1.5 million volunteers.

• In FY 2011, CNCS estimates that 340,000 Senior Corps volunteers 

provided 98 million hours of service through 65,000 community 

organizations nationwide, mentoring 146,000 children; providing 

independent living services to 736,000 frail, older adults; 

delivering meals to homebound seniors; conducting safety 

patrols; tutoring children, assisting with food banks; and 

meeting other community needs.

• In FY 2011, the Social Innovation Fund (SIF) selected a second round of outstanding intermediary organizations to mobilize private resources to 

grow promising, innovative community-based solutions that have evidence of compelling impact on economic opportunity, youth development, 

and healthy futures. Over the past two years, the 16 SIF grantmaking intermediaries have selected more than 150 promising nonprofits that 

demonstrate evidence-based solutions to critical social challenges, and CNCS funding has leveraged commitments of $250 million in private 

and non-federal commitments for matches at the intermediary and community-based nonprofit levels. Subgrantees will operate in more than 

100 cities in 31 states and Washington, D.C., and an estimated 70,000 individuals are expected to receive services in the first full year of 

subgrantee operations.

• In FY 2011, AmeriCorps NCCC members deployed to 16 different disasters in 21 states and assisted more than 143,000 people affected by natural 

disasters.

In Joplin, Mo., more than 250 

AmeriCorps members have 

operated a collection and sorting 

warehouse, removed debris, and 

managed a volunteer operation that 

has engaged 63,500 volunteers 

who have performed more than 

533,000 hours of work. 
Management’s Discussion & Analysis | PART I 4

The Corporation for National and Community Service

Managing for Results and Accountability

CNCS has a deep, longstanding, and ongoing commitment to ensuring the highest levels of accountability in our financial and program operations. 

We have established a culture of accountability and continuous improvement both within the agency and among the organizations that receive 

grant funds. 

I am pleased to report that in FY 2011, CNCS maintained its record of strong fiscal stewardship. For the 12th consecutive year, CNCS received an 

unqualified “clean” audit opinion on its consolidated financial statements. Our year-end budget close-out went as scheduled, all accounts came 

in on budget, and we achieved a 98 percent successful rating on nine financial metrics based on the U.S. CFO Council Government-wide Financial 

Management Metrics.

Other FY 2011 management accomplishments include implementing a major upgrade of our core financial system application, maintaining a 

fully-successful fund balance with the Treasury, implementing a web-based budget formulation system, increasing transparency through our 

Open Government Initiative, streamlining grantmaking processes, and implementing an aggressive action plan to strengthen compliance with 

rules concerning AmeriCorps member activities. 

Guided by the Serve America Act and a new Strategic Plan, with the support of a strong leadership team and dedicated staff, CNCS is investing 

in community solutions, supporting evidence-based programs, driving innovation and impact, and engaging more Americans to effectively tackle 

community problems —building a better future for our citizens, communities, and nation.

In Service,

Robert Velasco II

Acting Chief Executive Officer
Management’s Discussion & Analysis | PART I 5

The Corporation for National and Community Service

Agency Mission and Overview

The mission of the Corporation for National and Community Service (CNCS) 

is to improve lives, strengthen communities, and foster civic participation 

through service and volunteering. Over the past two decades, CNCS has 

helped to engage millions of citizens in meeting community and national 

challenges through service and volunteer action with its Senior Corps, 

AmeriCorps, and Learn and Serve America programs.

Table 1. Funding History (dollars in thousands)

FY 2007 FY 2008 FY 2009 Recovery FY10 FY11 FY12 President’s

Budget Account Enacted Enacted Enacted Act Enacted Enacted Budget

Operating Expensesi $ 805,760 $ 782,744 $ 811,639 $ 194,000 $ 857,021 $ 780,809 $ 916,390 

AmeriCorps State and National 264,825 256,805 271,196 89,000 372,547 349,300 399,790

AmeriCorps NCCC 26,789 23,782 27,500 29,000 28,942 35,000 

AmeriCorps VISTA 95,468 93,800 96,050 65,000 99,074 98,876 100,000 

Learn and Serve Americaii

 37,125 37,459 37,459 39,500 0 39,500

State Service Commission Admin 12,516 11,790 11,790 17,000 16,966 17,000

Senior Corps 217,586 213,785 213,785 220,900 207,883 226,100 

 RSVP 59,685 58,642 58,642 63,000 50,299 63,000 

 Foster Grandparents 110,937 108,999 108,999 110,996 110,774 111,100 

 Senior Companion 46,964 46,144 46,144 46,904 46,810 47,000

 Demonstration 0 0 0 0 0 5,000

Innovation, Demonstration, 29,771 13,980 14,753 60,500 60,379 80,500 

& Assistanceiii

 Social Innovation Fund 0 0 0 50,000 49,900 70,000 

 Volunteer Generation Fund 0 0 0 4,000 3,992 5,000 

 Nonprofit Capacity Building 0 0 0 1,000 998 0

 Other 0 0 0 5,500 5,489 5,500

Evaluation 3,960 3,891 3,891 6,000 5,988 6,000 

Training/Technical Assistanceiv 0 0 0 7,500 7,485 7,500 

Disability Inclusion Grantsiii 0 4,913 4,140 5,000 4,990 5,000 

National Service Trust $ 117,720 $ 122,539 $ 131,075 $ 40,000 $ 197,000 $ 199,260 $ 235,326

Salaries and Expensesv $ 70,324 $ 67,759 $ 71,715 $ 6,000 $ 88,000 $ 87,824 $ 97,694

Office of the Inspector General $ 4,963 $ 5,828 $ 6,512 $ 1,000 $ 7,700 $ 7,684 $ 8,450 

Total $ 880,777 $ 856,331 $ 889,866 $ 201,000 $ 1,149,721 $ 1,075,577 $ 1,257,860 

i In fiscal years 2007 and 2008, funds appropriated for Operating Expenses included amounts that were to be transferred to the National Service Trust. Beginning in 

Fiscal Year 2009, the Operating Expense appropriation no longer included this transfer. For reporting purposes, Operating Expenses are shown as net of amounts included 

specifically for transfer to the National Service Trust. 

ii LSA is authorized under the Serve America Act but was not funded in FY11.

iii Reflects a separate allocation of funding for Disability Grants as provided by the Serve America Act. Total funding for Innovation, Demonstration and Other Assistance 

grants in fiscal years 2008 and 2009 is equal to $18,893, which was the amount allocated to Innovation, Demonstration and Other Assistance activities within the 

enacted appropriations for those years. 

iv Reflects a separate allocation of funding for Training and Technical Assistance as provided by the Serve America Act. Training and Technical assistance activities were 

previously funded by an allocation from each of the agency’s programs. The estimated budget for fiscal years 2008 and 2009 is $7.1 million for each year.

v Pursuant to P.L. 110-28, $1.36 million was transferred from Innovation, Demonstration and Other Assistance to the Salaries and Expenses account in fiscal year 2007. 
Management’s Discussion & Analysis | PART I 6

The Corporation for National and Community Service

CNCS 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, CNCS promotes volunteering and civic engagement 

around the country and helps organizations build their capacity to 

engage volunteers effectively. Members and volunteers who serve in 

CNCS 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, and local and state governments.

Legislation

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

separate agencies that provided opportunities for Americans of all ages 

and backgrounds to serve their communities.

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

• Senior Corps, which incorporated the Foster Grandparents Program 

(FGP), Retired Senior Volunteer Program (RSVP), and Senior Companion 

Programs (SCP); 

• The newly created AmeriCorps, which incorporated the VISTA, State 

and National, and NCCC; and 

• Learn and Serve America. 

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

(SAA) reauthorized and expanded the mission and operation of CNCS, 

amending the National and Community Service Act of 1990 and the

Domestic Volunteer Service Act of 1973. It also took important steps 

to strengthen the management capacity of CNCS to ensure that it can 

support an expansion while maintaining excellence in service. 

The SAA1

 authorized both the significant expansion of existing service 

programs and a number of new programs to provide opportunities to 

serve and provide support for the nonprofit sector. A summary of its 

provisions follow.

Increasing Opportunities for Individuals of All Ages to 

Serve

• Puts young people on a path of lifelong volunteering through servicelearning and strengthens overall focus on disadvantaged youth. 

• Dramatically increases the potential for intensive service opportunities 

in the AmeriCorps program by authorizing an expansion from 75,000 

positions annually to 250,000 by 2017, with emphasis on education, 

health, clean energy, veterans, economic opportunity, and other 

national priorities. 

• Ties the Segal AmeriCorps Education Award to the maximum Pell Grant 

level ($5,550 in FY 2011). 

• 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 all Americans to serve by establishing a nationwide Call to 

Service Campaign and the September 11 National Day of Service and 

Remembrance, and invests in the nonprofit sector’s capacity to recruit 

and manage volunteers through a new Volunteer Generation Fund.

Focusing on Outcomes

• Directs the agency to focus national service on the areas of national 

need, such as improving education, increasing energy conservation, 

improving the health status of economically disadvantaged 

individuals, and improving economic opportunity for economically 

disadvantaged individuals. 

• Defines targeted performance indicators in education, economic 

opportunity, healthy futures, clean energy, and veterans.

Supporting Innovation and Strengthening the Nonprofit 

Sector

• Authorizes Social Innovation Fund grants to expand proven initiatives 

and provide seed funding to programs and nonprofits that have 

demonstrated results and the ability to grow. 

• Establishes the Volunteer Generation Fund to award grants to states 

and nonprofits to recruit, manage and support volunteers, and to 

strengthen the nation’s volunteer infrastructure. 

• Establishes Nonprofit Capacity Building Program grants aimed at 

increasing the capacity of a small number of intermediary grantees 

to work with small and midsize nonprofits in communities facing 

resource hardship challenges to develop and implement performance 

management systems.

Strengthening Management, Cost-Effectiveness, and 

Accountability

• Merges funding streams; expands the use of simplified, fixed amount 

grants; and gives CNCS flexibility to consolidate application and 

reporting requirements. Increases support for state commissions on 

national and community service. Bolsters the capacity and duties of 

CNCS’ Board of Directors. 

• Ensures that programs receiving assistance under national service 

laws are continuously evaluated for effectiveness in achieving 

performance and cost goals. 

1. Additional information on the Edward M. Kennedy Serve America Act can be found at: http://www.nationalservice.gov/about/serveamerica/index.asp
Management’s Discussion & Analysis | PART I 7

The Corporation for National and Community Service

• Authorizes a civic health assessment entitled “Civic Life in America” 

and 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., CNCS is an independent federal 

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

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

and confirmed by the Senate. CNCS’ Chief Financial Officer (CFO), Chief 

Operating Officer (COO), and Chief of Program Operations (CPO) are 

appointed by the CEO.

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

operations, including more than 500 employees who work throughout 

the United States and its territories. The Board of Directors works 

closely with the CEO to set policies and direction for CNCS, advises the 

President and the Congress concerning developments in national and 

community service that merit their attention, and conducts an annual 

evaluation of the CEO.

Board of Directors*

General Counsel

V. Green (Acting)

Chief Operating Officer

Kim Mansaray (Acting)

Chief of Program Operations

Idara Nickelson

AmeriCorps State & Nat’l

J. Gomperts

AmeriCorps NCCC

K. Raftery

AmeriCorps VISTA

M. Strasser

Senior Corps

E. Tan

Field Liasion

M. Berning

Award Oversight 

& Monitoring

A. Robinson

Social Innovation Fund

P. Carttar

Grants Policy & Operations

V. Garibaldi

47 Field Offices

(serving all U.S. States 

& territories)

Civil Rights & Inclusiveness**

L. Honnoll

External Affairs

J. Fetig

Chief Financial Officer

W. Anderson

Chief Executive Officer*

Robert Velasco (Acting)

Strategy & Special Initiatives

H. Peeler

Human Capital

R. Limon

Government Relations

R. Glickman

Information Technology

P. Clark

Grants & Field Financial Mgmt.

R. Gaudio

Inspector General*

(Vacant)

Figure 1. Corporation Organization Chart

* Appointed by the President and confirmed by the Senate.

** The director has independent authority to advise the CEO on pre-complaint and complaint issues. The CEO contributes to the director’s performance review. 
Management’s Discussion & Analysis | PART I 8

The Corporation for National and Community Service

Strategic Priorities

The 2011-2015 Strategic Plan underscores this commitment by 

defining a focused path to deliver enhanced programs and benefits 

to communities. In particular, the adoption of the Plan’s agency-wide, 

outcome-oriented performance measures strengthens the foundation for 

accountability. By adhering to a set of agency-wide measures, CNCS can 

assess the individual and collective results of programs and continue to 

improve its work. A common set of measures also expands CNCS’ ability 

to account for the combined contributions of all our grantees, sponsors, 

and partners. 

Increasing accountability 

Grounded in an ethic of continuous improvement, CNCS has 

strengthened procedures and protocols related to accountability in the 

AmeriCorps program. The AmeriCorps Action Plan has three primary 

areas of focus: 

• Enhancing key aspects of CNCS’ monitoring protocol, including 

requiring all AmeriCorps grantees to annually assure compliance with 

regulations on prohibited activities; 

• Strengthening the training and technical assistance provided to 

grantees and members about prohibited activities, including new, 

direct communication to members; and

• Improving CNCS’ risk assessment tools aimed at preventing and 

detecting prohibited activities. 

CNCS will also continue to implement monitoring and oversight 

protocols launched in 2011 that enhance data validity and monitoring 

of grantee data collection activities. These protocols will strengthen the 

reliability of grantee self-reported data and the integrity of the agency’s 

performance management program. These activities are supported by 

training and technical assistance efforts that provide grantees and 

sponsors with technical assistance to meet data collection requirements 

and that ensure agency staff capably advise on effective practice and 

monitor grantee activities.

Modernizing the agency’s IT infrastructure 

Modernization of the information technology infrastructure remains a 

priority for CNCS. This focus is underscored in the Strategic Plan (to 

Figure 2. Corporation Field Offices

CNCS Offices

 FFMC

 NCCC Campus

 State Office
Management’s Discussion & Analysis | PART I 9

The Corporation for National and Community Service

improve the computing environment by shifting to modern software and 

cloud computing). Resource allocation for system modernization will 

update the aging system architecture, provide better support for recent 

changes to business processes and priorities (many related to the SAA), 

reduce the life cycle cost of maintaining the systems, and increase 

the feasibility of hosting appropriate system elements in the cloud for 

additional, longer-term savings in operating costs. 

Implementation of the FY 2011- FY 2015 Strategic Plan

CNCS began operating under its strategic plan in FY 2011, focusing 

national service on a core set of four strategic goals while assessing the 

impact of CNCS programming. These goals are the foundation for the 

strategic plan and challenge CNCS to lead and operate at higher levels 

of accountability, integrity, and transparency.

• Increase the impact of national service on community needs in 

communities served by CNCS-supported programs. CNCS invests 

in community programs and projects that achieve outcomes in 

Disaster Services, Economic Opportunity, Education, Environmental 

Stewardship, Healthy Futures, and Veterans and Military Families. 

Looking ahead, these investments will focus on achieving a specific 

set of outcomes in each of these areas, reflected in the agency’s new 

mandatory performance measures.

• Strengthen national service so that participants engaged in CNCSsupported programs consistently find satisfaction, meaning, 

and opportunity. CNCS supports the national service network in 

providing experiences that offer a unique combination of professional, 

educational, and life benefits to service participants. The network also 

recruits diverse of Americans, especially those from underrepresented 

or disadvantaged populations. CNCS will collaborate with the national 

service network to strengthen outreach efforts and to implement best 

practices that ensure a powerful service experience.

• Maximize the value we add to grantees, partners, and participants. 

To support its focus on a specific set of both community outcomes 

and powerful service experiences, CNCS will develop a relevant 

and accessible knowledge base informed by research and rigorous 

evaluation, and conduct capacity building activities that advance the 

adoption of best practices.

• Fortify management operations and sustain a capable, responsive, 

and accountable organization. CNCS will work across programs and 

enhance its operations to support evidence-based decision making 

and a culture of performance. CNCS will also build upon its current 

infrastructure to strengthen and enhance our IT systems, workforce, 

and financial and grants management efforts.

As the blueprint guiding our work, the Strategic Plan includes further 

details on the specific objectives, strategies, and performance measures 

that determine how CNCS will evaluate its success in the coming 

years. The full plan and appendix are posted on our website at:

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

In FY 2012, the agency will continue moving forward under its new 

Strategic Plan—collecting data for a core set of 16 agency-wide high 

priority performance measures that provide a common focal point across 

all programs and initiatives. For example, to address critical needs 

in education, CNCS programs will focus on enabling disadvantaged 
Management’s Discussion & Analysis | PART I 10

The Corporation for National and Community Service

children and youth to achieve gains in school readiness, academic 

performance, and academic engagement. CNCS will strive to aid 

economically disadvantaged people through improved housing situations 

and access to food resources. Older adults and individuals with 

disabilities will have increased social ties as a result of CNCS programs 

and thus will be more likely to live independently and have an improved 

quality of life. CNCS’ work in disaster services will seek to provide 

critical services throughout the entire continuum from preparedness and 

mitigation to response and recovery. Additionally, more veterans and 

military family members will serve as national service participants and 

will receive targeted support from CNCS programs. 

The following pages present an overview of CNCS’ priority performance 

measures in the context of associated goals, focus areas, and 

contributing programs. CNCS will begin to report actual data against 

these measures at the conclusion of FY 2013. 

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

by CNCS-supported programs

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

response, and/or recovery.

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

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

Education Percent of children that demonstrated gains in school readiness.

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

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

standardized tests improved).

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

demonstrated improved academic engagement.

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

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

reported having increased social ties/perceived social support.

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

participants, or volunteers.

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

Military Families active duty military, and military service members) that received CNCS-supported assistance.
Management’s Discussion & Analysis | PART I 11

The Corporation for National and Community Service

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

programs consistently find satisfaction, meaning, and opportunity

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

Military Families 

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

educational, professional, or civic endeavors.

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

Percent of organizations that implement evaluations that demonstrate stronger evidence of program effectiveness than the prior year in order to 

receiving CNCS funding.

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

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

organization

Complete modernization of IT infrastructure.

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

Award and close grants and contracts within prescribed timeframes.
Management’s Discussion & Analysis | PART I 12

The Corporation for National and Community Service

CNCS Programs 

and Initiatives

AmeriCorps State and National

For nearly two decades, AmeriCorps State and National has engaged 

hundreds of thousands of members in intense, impact-oriented service 

in every state. These members have dedicated millions of hours of 

service in communities across the nation—tutoring children who are 

struggling to succeed in schools, responding to large-scale natural 

disasters, building homes for low-income families, and helping returning 

veterans and their families. And, in meeting these community needs, 

AmeriCorps State and National has invested in and been the catalyst for 

many of our country’s most respected and innovative organizations. 

AmeriCorps State and National is central to CNCS’ success related to 

priority measures under strategic goals one and two. By embracing these 

two mutually reinforcing goals, AmeriCorps State and National ensures 

that engaged citizens are at the center of effective and innovative 

community solutions.

AmeriCorps VISTA

AmeriCorps VISTA was created with the primary purpose of reducing 

poverty and building economic opportunity. Authorized in 1964 as 

Volunteers in Service to America, the program was incorporated into the 

AmeriCorps network of programs in 1993. AmeriCorps VISTA supports 

efforts to alleviate poverty in urban and rural areas by engaging 

individuals ages 18 and older in one year of full-time service. These 

AmeriCorps members build the organizational, administrative, and 

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

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

VISTA members are assigned to nonprofit community organizations and 

public agencies through an application process locally managed by 

CNCS state offices. 

The AmeriCorps VISTA program is guided by the core principles of 

sustainability, capacity building, and strengthening community. It offers 

critical contributions to the agency’s mission priorities under goals 

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

community outreach and partnership development, and establishment 

of volunteer recruitment and management systems. Members strengthen 

and improve the ability of local organizations to carry out their mission 
Management’s Discussion & Analysis | PART I 13

The Corporation for National and Community Service

and programs. Sponsoring organizations must ensure that their project 

engages residents of the targeted low-income community in the 

planning, development, and implementation of the project to which 

members are assigned. In doing so, the program promotes service and 

community engagement at the local level. 

AmeriCorps National Civilian Community Corps

AmeriCorps 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 through ten months of fulltime, intensive national service. Since 2000, more than 13,000 NCCC 

members from across the country have served more than 4.5 million 

hours on over 1,673 disaster service projects. The service, training, and 

certification provided by AmeriCorps NCCC increase employment skills 

and leadership opportunities for young adults—particularly those from 

disadvantaged circumstances—who face high unemployment rates.

In May 2010, the CNCS Disaster Services Unit was created within

AmeriCorps NCCC, providing greater coordination of agency-wide 

disaster preparation, mitigation, response, and recovery activities. 

NCCC’s structure of a national office with five regional campuses allows 

for rapid deployment of teams to meet both local and national needs, 

particularly around disaster relief. Thus, NCCC is an important resource 

for the agency in achieving objectives in goal one of the Strategic Plan. 

NCCC’s flexible structure enables the program to partner with resourcechallenged communities that lack the financial, human capital, or 

organizational capacity to manage grant programs. The structure also 

enables NCCC to strategically collaborate with other national service 

programs to magnify the impact on the communities in which they 

serve. In addition, CNCS routinely deploys NCCC members and grantees 

to serve side by side in assisting communities devastated by disasters. 

NCCC’s commitment to providing leadership opportunities for members 

also enables the program to be a significant contributor to the agency’s 

priorities under strategic goals one, two, and three. NCCC’s training 

objectives and diversity objectives are a core component of the agency’s 

performance in goal two. 

State Service Commissions

Fifty-two governor-appointed state and territory service commissions 

currently administer about 65 percent of CNCS’ AmeriCorps State and 

National grant funds. State service commissions perform outreach to 

prospective AmeriCorps grantees, conduct grant competitions, oversee 

and monitor grants and AmeriCorps programs, and provide the training 

and technical assistance necessary to build the capacity of faith and 

other community-based organizations that seek to operate AmeriCorps 

programs.

Senior Corps 

RSVP

In contributing to CNCS’ mission priorities under strategic goals 

one, two, and three, RSVP taps the skills, talents, and interests of an 

estimated 300,000 volunteers (in program year FY 2011) ages 55 and 

older annually to meet a wide range of community needs. Volunteers 

serve in community organizations to help them deliver critical services 

and fulfill their missions. RSVP is a flexible volunteer service model, 

with no set service schedules or compensation for the volunteers when 

on assignment, with the exception of insurance coverage and mileage 

reimbursement. RSVP grants are provided to eligible sponsoring 

organizations, including nonprofit organizations and state, local, and 

tribal governments. RSVP has the largest presence in rural communities 

of any CNCS program, and often serves as an important source of 

disaster services in rural America.

RSVP taps the skills, talents, 

and interests of an estimated 

300,000 volunteers (in program 

year FY 2011) ages 55 and older 

annually to meet a wide range of 

community needs.

Since 2000, more than 13,000 

NCCC members from across the 

country have served more than 

4.5 million hours on over 1,673 

disaster service projects. 
Management’s Discussion & Analysis | PART I 14

The Corporation for National and Community Service

Senior Companion Program

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

in the continuum of care available to the nation’s aging population 

and contributes to agency mission priorities under strategic goals one 

and two. Each year, Senior Companions serve thousands of older and 

frail adults by providing companionship, transportation, light chores, 

and respite to facilitate seniors remaining in their own homes. Senior 

Companions help aging Americans and veterans to maintain their 

dignity and quality of life, while enriching their own lives through highquality volunteer experiences. Senior Companions’ traditional clients are 

frail seniors, particularly women over the age of 85, who live alone. Other 

clients include individuals with disabilities and their caregivers. 

Research conducted by the program in 2004 – 2005 showed 

Senior Companion clients had significant, long-term mental health 

benefits from their services, including reduced rates of depression. 

Companionship serves both the Senior Corps volunteer and the 

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

long-term health outcomes. 

Senior Companions serve between 15 and 40 hours per week and 

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

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

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

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

SCP grants are awarded to eligible sponsoring organizations, including 

nonprofit organizations and state, local, and tribal governments.

Foster Grandparent Program

The Foster Grandparent Program (FGP) is an intergenerational program 

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

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

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

at an academic, social, or financial disadvantage. Children and youth 

served by the program often do not have a caring and consistent adult 

presence in their lives—a void that is filled by a Foster Grandparent. 

In turn, Foster Grandparents derive significant emotional and health 

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

provide them with a strong sense of purpose. This work is critical to 

helping CNCS achieve success in mission priorities under strategic 

goals one and two. Foster Grandparents help young children with 

special or exceptional needs to gain skills and confidence to succeed 

in school, tutor children in literacy, and assist children in the child 

welfare system. 

Foster Grandparents serve between 15 and 40 hours per week and 

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

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

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

to eligible sponsoring organizations, including nonprofit organizations 

and state, local, and tribal governments. 

Other CNCS Programs and Initiatives

Training and Technical Assistance 

The Corporation provides training and technical assistance (TTA) to 

improve the programmatic quality of current and potential national 

service programs and projects (specifically AmeriCorps and Senior 

Corps). CNCS seeks to maximize the value it adds to grantees, partners, 

and participants under CNCS’ strategic goal three. TTA is central to this 

strategic goal. Specifically, CNCS uses TTA to strengthen the collective 

capacity of the national service network to measure performance. CNCS 

is developing a unified TTA capacity building strategy to more effectively 

address training needs related to Strategic Plan implementation, 

prevent duplication of effort, and maximize efficiency of federal funds.

Evaluation

Evaluation at CNCS develops and cultivates knowledge that will enhance 

the mission and support the strategic goals of CNCS. Strengthening the 

evidence base for national service is a priority outlined in the Strategic 

Plan. Evaluation supports two objectives of strategic goal three:

• Build on the knowledge base of best practices and support efforts to 

measure results; and

• Improve organizational capacity to conduct rigorous evaluation of 

programs to measure outcomes and/or impact.

Innovation, Demonstration, and Assistance

CNCS’ innovation, demonstration, and assistance activities support and 

encourage new forms of service and civic participation, and improve 

existing service programs. These activities generally promote service and 

volunteering throughout the country, identify and incubate innovative 

program models and approaches, and disseminate effective practices 

found to improve the reach and effectiveness of programs and projects.

Innovation, demonstration, and assistance significantly contribute 

to CNCS’ goal of strengthening national service so that participants 

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

strives to ensure that members and volunteers across its programs 

leverage their experiences in ways that benefit them as individuals 

and the communities in which they remain engaged. These activities 
Management’s Discussion & Analysis | PART I 15

The Corporation for National and Community Service

also contribute to CNCS’ goal three of maximizing the value we add to 

grantees, partners, and participants through programming, convening 

meetings, and producing materials to help improve volunteer programs. 

Social Innovation Fund

The Social Innovation Fund (SIF) is CNCS’ most significant initiative 

undertaken in the area of innovation. The primary objective of the SIF is 

to improve the lives of people in low-income communities by mobilizing 

public and private resources to grow innovative nonprofit organizations 

that have evidence of compelling impact in three priority areas of need: 

economic opportunity, youth development, and healthy futures. The SIF is 

critical to CNCS’ success under strategic goal three. 

The SIF pursues this purpose through an open, competitive grant 

program that awards limited funds to selected intermediaries. These are 

organizations with strong grant-making expertise and track records of 

success that have developed compelling programs for achieving clearlydefined objectives for social impact in one or more of the designated 

issue areas. The grantees match the funds 1:1 from private sources, 

then select, fund, and support the growth of high-impact nonprofit 

subgrantees that are positioned to deliver the intended program impact. 

Disability Inclusion 

Through its disability inclusion activities CNCS seeks to expand 

opportunities that lead to the meaningful and successful inclusion 

of Americans with disabilities in national service. Disability Inclusion 

Grants support all five objectives of goal two in the CNCS strategic plan:

• Make service opportunities accessible and attractive to Americans of 

all backgrounds;

• Participants find meaning in their service experience and remain

engaged in their communities;

• Participants have a high quality service experience;

• Participants find professional, educational, or civic opportunities in 

their service experience; and

• Participants 55 and older and veterans experience health benefits 

associated with service.

Disability Inclusion Grants also have the potential to address CNCS 

objectives in strategic goals one and three. For example, national 

service can play an important role in addressing the persistent, chronic 

unemployment of Americans with disabilities as it provides opportunities 

(often team-based) in highly structured, supervised environments.
Management’s Discussion & Analysis | PART I 16

The Corporation for National and Community Service

Program Performance 

and Analyses 

AmeriCorps State and National

Fiscal year 2011 serves as a bridge year between the FY 2006 – 2010 

Strategic Plan and the FY 2011-2015 Strategic Plan. In alignment with 

CNCS’ new FY 2011 – 2015 Strategic Plan, the FY 2011 AmeriCorps

grant competitions reflected a greater emphasis on programs that 

clearly demonstrate and maximize the impact of national service. CNCS 

funded organizations across the agency’s six focus areas, and placed the 

highest priority of AmeriCorps grant funding on programs that improve 

academic outcomes for children in the lowest performing schools and 

programs that serve and engage veterans and military families. 

In FY 2011, approximately 74,000 AmeriCorps members were funded 

across all AmeriCorps grants. These members will serve in more than 

14,000 service sites. With the FY 2011 grant competitions, CNCS is on 

track to supporting AmeriCorps members addressing critical needs. 

Those AmeriCorps members will engage and recruit an estimated 1.5 

million community volunteers. Across the competitive grants, which are 

directly selected by CNCS, 321 organizations from across the country 

received roughly $224 million to support an estimated 51,500 AmeriCorps 

members. Over $120 million was focused on the national priority of 

increasing school readiness and improving academic performance. 

Final performance data for the entire portfolio, including member levels 

and national performance pilot measures, will be reported in the FY 

2011 Annual Performance Report, released as a part of the FY 2013 

Congressional Budget Justification. 

AmeriCorps VISTA

In FY 2011, CNCS enrolled over 7,300 VISTA members building capacity 

in nearly 1,200 communities and organizations in which they serve. 

Members were targeted to programs in education, employment, housing, 

and financial development, in service to individuals and communities 

Members strengthened the 

organizational capacity of their 

sponsor organizations and 

raised $133 million in cash and 

in-kind resources in support of 

anti-poverty programs across 

the country. 
Management’s Discussion & Analysis | PART I 17

The Corporation for National and Community Service

affected by long-term poverty and unemployment, but also those facing 

hardships resulting from the current economic recession. Members 

strengthened the organizational capacity of their sponsor organizations 

and raised $133 million in cash and in-kind resources in support of 

anti-poverty programs across the country. The overwhelming majority of 

new programs in FY 2011 focused on educational improvement at Title 

I schools in both rural and urban communities throughout the country. 

Examples of how local communities effectively use VISTA resources to 

build capacity include:

Education

• The 40 VISTA members serving at the Communities in Schools of 

Florida recruited, trained, and supervised 12,910 mentors that 

served more than 38,000 at-risk students in Title I schools and 

community centers.

Veterans and Military Families

• A New Hampshire-based VISTA member sponsored by Families 

in Transition was instrumental in creating housing for homeless 

veterans. He secured project-based vouchers valued at $78,600 that 

will house at least nine homeless veterans and 24 of their dependent 

family members. For another property, he helped raise $25,000 in cash 

and $287,500 in New Hampshire state tax credits, which are expected 

to yield another $230,000 toward developing permanent housing for 

five homeless veterans. During his service, the VISTA became known 

for his expertise and research into funding opportunities, becoming a 

resource not just for his site, but for other organizations addressing 

the homeless and aiding the poor.

Economic Opportunity

• NeighborWorks America’s VISTAs raised more than $14 million 

to expand the capacity of community organizations in over 70 

communities nationwide to provide financial fitness education to the 

low-income communities.

• VISTAs at the Ohio Benefit Bank helped the most vulnerable Ohioans 

get back on their feet and on the path to financial independence. 

VISTAs have helped the Ohio Benefit Bank expand its service from two 

counties in 2006 to having a significant presence in every county in 

the state by 2011.

Healthy Futures

• VISTAs serving with the Advancement Foundation developed the West 

End Center’s Community Market in Roanoke, Va., which brings locallygrown, nutritional sources of fresh produce into the poverty-stricken 

neighborhood and promotes the value of good diet and proper nutrition 

for the children who attend the center. 

In FY 2011, CNCS created and expanded collaborations across the public 

and private sectors aimed at increasing VISTA enrollment beyond CNCS’ 

own investment. These VISTA members were deployed to work in projects 

falling across the CNCS focus areas, with the common goal of moving 

targeted populations toward greater economic self-sufficiency.

• Sponsoring organizations may participate in a cost-share agreement 

with CNCS and pay all or part of the living allowance for one or 

more AmeriCorps VISTA members, which prepares the sponsoring 

organization to support member activities long after the program has 

reached completion.

• In support of the First Lady’s Let’s Move in Indian Country campaign, 

CNCS received $100,000 from Nike N7 – Nike’s comprehensive 

program to increase access to sports in Native American and 

Aboriginal communities. The funding supports four VISTA members in 

Santa Ana Pueblo, N.M., Temecula, Calif., Portland, Ore. and Gresham, 

Ore. who build capacity to promote physical activity, advance nutrition 

programs, and promote continued education to meet needs expressed 

by the local community. This program creates awareness about the 

health and related economic challenges facing tribal communities.

• The U.S. Department of Agriculture, Food and Nutrition Service 

provided $800,000 to fund 40 VISTA members to expand anti-poverty 

and capacity building efforts around increased food security. These 

members will build on the work done by the 50 Food and Nutrition 

Service-funded members in FY 2010

 The 40 VISTA members serving 

at the Communities in Schools 

of Florida recruited, trained, and 

supervised 12,910 mentors that 

served more than 38,000 at-risk 

students in Title I schools and 

community centers.
Management’s Discussion & Analysis | PART I 18

The Corporation for National and Community Service

The organizational capacity built by VISTA members remains viable long 

after VISTAs complete their service. A recent study funded by CNCS and 

conducted by Westat Inc. found that 84 percent of AmeriCorps VISTA 

projects continued to operate effectively two to five years after the VISTA 

resources ended. In FY 2012, all new VISTA programming will be aligned 

with CNCS’ Strategic Plan. 

AmeriCorps National Civilian Community Corps

In FY 2011, 33 percent of AmeriCorps NCCC project hours were devoted 

to disaster services nationwide—providing support to displaced and 

needy individuals, families, and communities. NCCC completed its 

commitment to the Gulf Coast Recovery in FY 2011, which resulted in an 

overall decrease in the total percentage of disaster recovery projects from 

50 percent. Through the CNCS Disaster Services Unit, CNCS management 

is exploring additional opportunities for deploying AmeriCorps NCCC 

resources in support of agency-wide disaster planning. In addition, 

under the agency’s Continuity of Operations Plan, CNCS is considering 

NCCC campuses as potential work sites for critical staff following a 

catastrophic event affecting its Washington, D.C., headquarters. NCCC 

campuses also can be used to train and house other CNCS national 

service members and volunteers during times of disaster. 

Some of NCCC’s major deployments in FY 2011 include responding 

to 16 different disasters in 21 states (Alabama, Arkansas, Colorado, 

Connecticut, Delaware, Georgia, Iowa, Maryland, Massachusetts, 

Missouri, Nebraska, New Hampshire, New Jersey, New York, North 

Carolina, North Dakota, Rhode Island, South Carolina, Tennessee, 

Vermont, and Washington) including large-scale responses in Joplin, 

Mo., Tuscaloosa, Ala., and throughout the Mid-Atlantic after Hurricane 

Irene. The program supported disaster response efforts in partnership 

with the Federal Emergency Management Agency (FEMA), the American 

Red Cross, state commissions, and local municipalities throughout the 

U.S. and its territories. This past year, NCCC members assisted more 

than 143,000 people affected by disasters. Additionally, since 2005, 

AmeriCorps NCCC members from all campuses have served over 3.5 

million hours in the Gulf Coast region on over 1,226 disaster-related 

projects.

The average AmeriCorps NCCC member completed 1,861 hours of 

service (including training) during their 10-month service term in FY 

2011. AmeriCorps NCCC members built 277 new homes, mucked or 

gutted 875 homes, and outfitted over 1,100 homes with energy-efficient 

modifications. Members also conducted prescribed burns and fire 

mitigation on almost 11,000 acres of land, constructed or restored 521 

miles of hiking trails, and recruited or managed more than 108,000 

community volunteers. Members also completed 409 projects in the 

areas of infrastructure improvement, environmental stewardship and 

conservation, energy conservation, and urban and rural development 

(which includes education). In total, NCCC members performed over 1.2 

million hours of service. 

The unique role NCCC plays in working with community organizations 

to build resilient communities is evidenced by the diversity of project 

sponsors with which we work. These partnerships focus on helping 

people recover from disasters—providing critical infrastructure 

improvement, mitigating environmental degradation, and supporting 

children from disadvantaged circumstances in afterschool and out-ofschool programming.

In FY 2012, NCCC will begin reporting on the issue areas identified 

in the SAA: natural and other disasters, infrastructure improvement, 

environmental stewardship and conservation, urban and rural 

development, and energy conservation. The program tested approaches 

to performance measurement in FY 2011 that led to the adoption of 

a limited set of valid and tested measures that clearly reflect the 

community and member outcomes of the program. 

Senior Corps

RSVP 

In FY 2011, RSVP volunteers delivered an estimated 62 million hours of 

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

network of 706 grantees, 296,380 volunteers served in more than 65,000 

community organizations nationwide to deliver essential services. 

The average AmeriCorps NCCC 

member completed 1,861 hours 

of service (including training) 

during their 10-month service 

term in FY 2011. AmeriCorps 

NCCC members built 277 new 

homes, mucked or gutted 875 

homes, and outfitted over 1,100 

homes with energy-efficient 

modifications.
Management’s Discussion & Analysis | PART I 19

The Corporation for National and Community Service

Working through such networks as Area Agencies on Aging, Volunteer 

Centers, United Way, social services agencies, and many others, RSVP 

volunteers:

• Mentored an estimated 16,000 children;

• Provided independent living services to an estimated 676,000 adults; 

and

• Engaged an estimated 400,000 volunteers to address community 

needs such as delivering meals to homebound seniors, conducting 

safety patrols, tutoring children, and assisting with food banks.

In FY 2011, states and local communities contributed more than $42.9 

million in non-federal funds to support RSVP projects. This level is 

46 percent of the total cost, and well above the required 30 percent 

non-federal share required by the program. This additional funding, 

including $6 million in state appropriated dollars, demonstrates the 

value of the essential services that RSVP volunteers provide in their 

communities. 

Some examples of RSVP volunteers meeting high priority needs include:

• Disaster Services – Throughout FY 2011, RSVP volunteers joined 

forces with other national service members and volunteers around the 

nation to assist in the aftermath of natural disasters. In Mississippi, 

Alabama, and Missouri, following a devastating outbreak of tornadoes, 

RSVP volunteers helped to coordinate community volunteers, answered 

phones at support centers, opened and served in volunteer reception 

centers, assisted in coordinating supply donations, and helped the 

American Red Cross prepare meals for displaced families and disaster 

workers. During floods in South Dakota and Iowa, RSVP volunteers

assisted with coordination of volunteers and clean up. During 

Hurricane Irene, RSVP volunteers in Rhode Island supported shelter 

operations around the state.

• Helping Veterans – RSVP created new service opportunities in 

communities through initiatives like the Clallam-Jefferson County 

RSVP Olympic Community Action Programs. Working with the U.S. 

Department of Labor: DOL-VETS, this RSVP project initiated new 

programming that was designed to reach out to unemployed veterans 

in the rural Olympic Peninsula of Washington State. This team of 

volunteers visits with veterans, checks on how their careers are going, 

and if needed, makes them aware of additional support available 

from DOL, The U.S. Department of Veterans Affairs (VA), and other 

governmental and non-governmental organizations. This is an 

example of how RSVP was able to mobilize local human capital to

empower a community to access resources and further administration 

priorities. Senior Corps is seeking to replicate this program in 

Washington and other states. 

CNCS implemented the FY 2011 RSVP budget of $50.2 million, which 

was $12.6 million below the FY 2010 appropriation, on a pro rata basis 

by awarding all RSVP grants at approximately 80 percent of the FY 

2010 base level. CNCS also temporarily suspended an internal policy on 

replacing grants in communities where RSVP projects were relinquished. 

These steps allowed the budget to be implemented consistently and 

fairly at the grantee level and optimized the annual grant start dates 

within the federal fiscal year. 

In FY 2011, RSVP volunteers 

delivered an estimated 62 

million hours of service in their 

communities. Moreover, CNCS 

estimates that across a network of 

706 grantees, 296,380 volunteers 

served in more than 65,000 

community organizations nationwide 

to deliver essential services. 

In FY 2011 CNCS estimates that 

14,640 SCP volunteers delivered 

12.2 million hours to approximately 

60,940 frail, older adults and others 

with physical or other limitations. 
Management’s Discussion & Analysis | PART I 20

The Corporation for National and Community Service

Senior Companion Program (SCP)

In FY 2011 CNCS estimates that 14,640 SCP volunteers delivered 12.2 

million hours to approximately 60,940 frail, older adults and others 

with physical or other limitations. SCP volunteers transport clients to 

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

companionship to offset isolation, and offer respite to an estimated 

7,900 family members and informal caregivers. 

SCP grantees also work with states to expand services through Medicaid 

Home and Community-based Waivers. In 2010, 12 states elected 

to incorporate SCP services into their Medicaid-funded home and

community-based services, providing nearly $1.3 million to support 624 

Senior Companions who in turn provided in-home support to Medicaid 

eligible clients. In 2011, states and local communities contributed 

$22.9 million in non-federal funds to support Senior Companions, well 

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

including $6 million in state appropriated dollars, demonstrate the 

value of essential services that Senior Companions provide in their 

communities.

Senior Companions also serve an estimated 60,940 caregivers, helping 

to alleviate caregiver burnout, an important contributor to seniors going 

to nursing homes. Senior Companions at the Salt Lake County Aging 

Services work with the Department of Veterans Affairs Home Based 

Primary Care Program, which serves home-bound veterans through an 

integrated care team. 

Foster Grandparent Program (FGP) 

In FY 2011 CNCS estimates that 28,200 FGP volunteers delivered 24 

million hours of service in their communities. Additionally, estimates 

show that they served a total of 232,000 children, including mentoring 

more than 130,000 children—7,000 of whom were children of 

incarcerated parents—and more than 2,250 of whom were children 

of military families.

FGP projects currently, along with the U.S. Department of Education, 

support the school turnaround pilot in Orlando, Florida and the state 

of Minnesota. Foster Grandparents at Moody Air Force Base, Ga. and 

Fort Bliss, Texas, also serve military families in early child development 

programs. We have also begun discussions with the Administration for 

Children and Families within the U.S. Department of Health and Human 

Services to increase coordination of FGP support of programs such as 

Head Start.

In 2011, states and local communities contributed $33 million in nonfederal funds to support Foster Grandparents, well above the required 

10 percent non-federal share. The additional funds, including $6.8 

million in state appropriated dollars, demonstrate the value of essential 

services that Foster Grandparents provide to children with special or 

exceptional needs in their communities.

Final data for Senior Corps programs will be available in 2012.
Management’s Discussion & Analysis | PART I 21

The Corporation for National and Community Service

Innovation and Demonstration and Assistance 

Grant Programs

Final performance data for the entire portfolio, including member levels 

and national performance pilot measures, will be reported in the FY 

2011 Annual Performance Report, released as a part of the FY 2013 

Congressional Budget Justification.

Social Innovation Fund (SIF) 

FY 2011 represented the first full year of operations for the Social 

Innovation Fund, and focused primarily on building a solid programmatic 

and operational foundation to support effective operations and further 

development of promising, innovative nonprofit organizations and the 

generation of compelling outcomes. 

Accordingly, the major achievements in FY 2011 consisted mainly of 

executing activities that are essential to building that foundation. Key 

examples include the following: 

• Selection of 138 community-based, service-providing nonprofit 

organizations (subgrantees) by the 11 SIF intermediaries (grantees) 

through open subgrant competitions that attracted more than 500 

applications. Altogether, SIF subgrantees:

> Have committed to raise $77 million in matching funds from 

private and non-federal public sources, which combined with the 

$50 million in matches by intermediaries, will total $127 million 

generated by the initial $50 million federal investment made as 

part of the FY 2010 appropriation;

> Represent a wide range of program initiatives from rural 

healthcare initiatives in Kentucky to employment programs 

for former offenders in California to workforce collaboratives 

in Louisiana to college preparation programs for low-income 

students in North Carolina;

> Are located in 31 states and the District of Columbia; and

> Constitute a potential pipeline of promising, effective nonprofits 

that would be attractive to other funders – both public and 

private – that are seeking community solutions backed by at least 

preliminary evidence of results.

• Implementation of the rigorous evaluations required for all 

subgrantees. Each grantee has defined its overall evaluation strategy 

and is now generating detailed, formal plans for how it will improve 

the levels of evidence which support and document the success of 

subgrantee programs. 

> Completion of a systematic, inclusive process to define how 

the Social Innovation Fund should be most effectively and 

rigorously evaluated over the next five years to determine how it 

is performing relative to the expectations of Congress and the 

Administration. This was followed by competitive selection of an 

external evaluator. 

> Launch of the first phase of the Social Innovation Fund 

Knowledge Network, a web-based vehicle for facilitating 

dialogue, exchanging information, and posting documents among 

grantees. This will be the platform for the on-going capture and 

dissemination of the knowledge, insights, and tools that emerge 

from all levels of the SIF program.

> Selection of a second cohort of grantees in the FY 2011 grant 

competition. This process awarded $13.9 million in grants to five 

intermediaries that:

 - Have created distinctive models of public and private 

partnerships; 

 - Are focused on issue areas not previously represented in the 

grant portfolio, including chronic homelessness, housing 

affordability, and childhood obesity; 

 - Have committed to raise an additional $35 million in matching 

funds at both the grantee and subgrantee levels; and

 - Serve some geographical areas not previously touched by the 

Social Innovation Fund, notably rural Colorado and specific 

communities in greater Detroit.

The SIF’s focus on rigorous evaluation will enable CNCS to strengthen its 

overall evaluation capacity and add knowledge to the broader field. As 

such, it contributes to goal three. More specifically, it is core to fulfilling 

the objective of improving organizational capacity to conduct rigorous 

evaluations and measure outcomes. 

Volunteer Generation Fund 

CNCS awarded grants to 19 state service commissions to mobilize more 

people to volunteer including under-represented populations, increase the 

organizational capability of nonprofits to effectively manage volunteers; 

improve operations in the areas of sustainability, governance, leadership, 

and evaluation capacity; and integrate technology to improve business 

processes. 

In FY 2011, these state service commissions have provided direct support 

to numerous nonprofits and volunteer connector organizations in urban 

and rural communities in their states, including:

• Development of a research-based volunteer management curriculum 

for nonprofit organizations;

• Creation and expansion of volunteer centers in underserved 

communities;

• Training and deployment of volunteer leaders to coordinate and 

manage community service projects;
Management’s Discussion & Analysis | PART I 22

The Corporation for National and Community Service

• Launch and expansion of skilled-based volunteer programs;

• Improved systems and training for coordinating disaster and 

emergency volunteers to meet immediate and long-term needs;

• Convening of networks to share and disseminate best practices; and

• Training and technical assistance to enhance nonprofit organizations’ 

capacity to manage and engage volunteers in meaningful service.

Nonprofit Capacity Building Program 

In FY 2011, CNCS provided a second year of nearly $1 million in grants 

to five intermediary organizations that, in turn, helped small and 

midsize nonprofits targeting resource-poor communities to develop 

and implement performance management systems. Research suggests 

that an established framework of performance management is the 

prerequisite and predictor of success in other aspects of nonprofit health 

such as financial planning and sustainability.

In creating the Nonprofit Capacity Building Program, Congress recognized 

that many small and midsize nonprofit organizations are challenged 

in their ability to sustain and expand services and that organizational 

development assistance may be necessary to ensure the continuation of 

much-needed services in local communities. 

In alignment with the Strategic Plan, grantees were encouraged to 

identify potential subgrantees that focus on the agency’s six focus areas: 

Disaster Services, Economic Opportunity, Education, Environmental 

Stewardship, Healthy Futures, and Veterans and Military Families.

Call to Service

The President’s Call to Service seeks to engage all Americans in 

making service a way of life. CNCS builds large-scale efforts that bring 

attention to service and volunteering in order to increase the number of 

people making an impact in their communities. Through Call to Service 

activities, CNCS also expands existing relationships and reaches new 

audiences, broadening the pool of potential volunteers and service 

participants. Call to Service activities also provide increased recognition 

for outstanding organizations and individuals involved in service to their 

communities.

The MLK Day of Service continued to call upon Americans to honor the 

legacy of Dr. Martin Luther King, Jr. by devoting at least a day to serving 

their community and addressing local challenges, followed by a longerterm commitment. In 2011, there were approximately 13,000 projects/

activities throughout the nation, representing a 30 percent increase 

over 2010. CNCS’ six MLK Day grantees were directly responsible for 

2,260 projects/activities, which deployed 136,200 volunteers, benefiting 

many more thousands. And for the first time, more than 600 President’s 

Volunteer Service Awards were presented to MLK Day “Drum Majors for 

Service.”

For the September 11th National Day of Service and Remembrance, CNCS 

held a 10th anniversary Challenge via Challenge.gov, inspiring nearly 

140 organizations to recruit more than 150,000 volunteers. More than 

30 state service commissions also participated in supporting service 

activities in honor of the 10th anniversary.

United We Serve: Let’s Read, Let’s Move – an initiative involving six 

federal agencies and initiatives, and countless nonprofit partners, 

addressed summer reading loss and childhood obesity by engaging 

youth in summer reading and physical activity, as well as by providing 

access to healthy, affordable food. In FY 2011, the effort resulted in the 

distribution of 2.5 million books to children, the creation or clean-up 

of new playgrounds in 20 cities, the establishment of libraries at 45 

sports camps, the donation of 67,088 pounds of fresh produce, and the 

cultivation of 531 gardens.

These and other efforts such as National Mentoring Month, AmeriCorps 

Week, and Senior Corps Week promote service and volunteering across 

broad sectors of American society.

A number of CNCS initiatives seek to engage specific populations or 

sectors, leveraging their resources to address their needs and achieve 

focused impact. Billion +Change, the corporate mentoring challenge 

and school improvement pilots, rally members of the business and 

educational communities to answer the call to service and commit 

to community improvement. By calling together faith-based and 

Native American communities and organizations, CNCS is able to 

build relationships, gather useful feedback, and expand the impact of 

organizations by engaging new volunteers into service work.

A number of CNCS activities are designed to recognize outstanding 

organizations and individuals engaged in service, to both highlight best 

practices for the field, and increase awareness about the opportunities 

that exist to serve. The President’s Higher Education Honor Roll received 

applications from more than 850 institutions in 2011; the President’s 

Volunteer Service Award recognizes more than 100,000 dedicated 

Americans each year; and the CNCS Service Impact Award (formerly Spirit 

of Service Award) selected nine exemplary organizations or individuals, 

one or two from each of the Strategic Plan focus areas, from nearly 

150 entries. These programs are cost-effective ways to recognize and 

encourage service contributions, and amplify the call to make service a 

way of life for all Americans.
Management’s Discussion & Analysis | PART I 23

The Corporation for National and Community Service

Disability Inclusion Grants

In FY 2011, CNCS funded a collaboration with state service commissions 

and the Institute of Community Inclusion at the University of 

Massachusetts, which implements the National Service Inclusion Project 

(NSIP) and the National Service toward Employment Project (NextSTEP).2

This national level collaboration (along with implementation at local 

levels through state inclusion teams) strengthened the capacity and 

technical skills of national service programs for disability inclusion. 

These efforts also resulted in outreach to promote service and 

volunteering as a viable option for people with disabilities and research 

into practices that effectively promote service and volunteering as a 

pathway to successful transition to employment or post-secondary 

education. For example, in 2011:

• Forty-eight state service commissions worked with the University 

Centers of Excellence on Disabilities (UCEDs) to recruit, place, and 

support people with disabilities in national service programs;

• Thirty-five states formed state inclusion teams. These teams are a 

primary mechanism to implement disability inclusion strategic goals at 

the state level and are typically comprised of representatives from state 

and local government and nonprofit disability related organizations, 

UCEDs, national service alumni, parent groups, and CNCS state offices;

• Twelve state service commissions collaborated with veterans 

organizations to increase awareness of national service that may lead 

to the recruitment of veterans as volunteers;

• Forty-two state service commissions conducted 359 disability inclusion 

training events to build the capacity and technical skills of service 

programs and members (a 25 percent increase in training events over 

the previous year). State service commissions now routinely conduct 

their own introductory and intermediate inclusion trainings due to 

training they received from NSIP;

• Forty-three states have instituted a formal policy to address requests 

for reasonable accommodation; 33 states report receiving 219 requests 

for reasonable accommodation during the year;

• Nearly all state service commissions have instituted a process for 

assessing and monitoring the accessibility of service sites;

• One hundred percent of state service commissions conducted 

targeted outreach to persons with disabilities and their families using 

recruitment materials in alternative formats; 

• NSIP trained 2,222 national service members and staff (a 59 percent 

increase over the previous year) in 108 face-to-face trainings (a 

120 percent increase over the previous year) across the nation on a 

wide variety of inclusion topics ranging from “Providing Reasonable 

Accommodations 101” to “Understanding the Americans with 

Disabilities Act and Section 504 of the Rehabilitation Act.” Ninety-four 

percent of the trainees who gave feedback reported gaining knowledge 

that they would use to train subgrantees and in general strengthen the 

inclusion practices in their programs;

• Twelve thousand (a nearly 79 percent increase over the previous year) 

individuals representing grantees, subgrantees, and potential grantees 

participated in NSIP sponsored web-based and virtual training events 

and teleconferences, received remote technical assistance, or accessed 

technical assistance through a fully accessible website;

• NSIP developed 52 accessible products including written curricula, 

FAQ sheets, issue briefs that inform and/or update the field on training 

resources, and briefs detailing examples of successful service stories. 

These resources are available to all on www.ServiceandInclusion.org or 

www.nationalserviceresources.gov; and

• The National Conference on Volunteering and Service was fully 

accessible to persons with disabilities, materials were available 

in alternative formats, and 100 percent of requests for reasonable 

accommodation were addressed.

As a part of the CNCS priority effort to engage more veterans in national 

service, the Engaging Veterans with Disabilities Initiative was launched 

in 2010 to identify and isolate practices that effectively engage veterans 

with disabilities. NSIP, in partnership with the Denver Options Traumatic 

Brain Injury Project, is conducting this work. Through this project, veterans 

have reported that a national service experience can provide a relatively 

less-stressful transition back into the community while remaining a part 

of a team that is actively continuing to serve the country. 

In 2010, NextSTEP:

• Conducted research to understand critical issues among people with 

disabilities; 

• Implemented service-to-work demonstration projects within public 

schools in four cities; 

• Promoted service as a pathway to employment among state 

developmental disabilities and vocational rehabilitation agencies and 

facilitated their partnering with state service commissions; 

• Collaborated with two state service commissions to pilot the 

placement and tracking of individuals with developmental disabilities 

in service programs; 

• Conducted a learning community that included state vocational 

2. NSIP is a partnership between the Association of University Centers on Disability, the Association on Higher Education and Disability, the National 

Down Syndrome Congress, and the National Council on Independent Living. NextSTEP is a partnership with the National Organization on Disability, the U.S. Business Leadership Network, the State Employment Leadership Network, and Denver Options/CTAT. 
Management’s Discussion & Analysis | PART I 24

The Corporation for National and Community Service

rehabilitation personnel and service commission staff; and 

• Promoted service as a pathway to employment at eight national 

service and disability conferences. 

By the end of the grant in 2012, NextSTEP will have identified promising 

practices and program models that can lead to successful outcomes 

toward employment or post-secondary education for persons with 

disabilities who engage in national service and will have developed and 

disseminated technical assistance tools that will inform the practice of 

inclusion in national service programs.

Training and Technical Assistance 

Civic Health Assessment

In FY 2011, CNCS released Civic Life in America, the second installment 

of the Civic Health Assessment, in partnership with the congressionally 

chartered National Conference on Citizenship. CNCS also took additional 

steps to refine the concept of civic engagement, including collaborating 

with the National Academy of Sciences (NAS) to bring together leading 

researchers and practitioners in civic engagement, and working with 

the U.S. Census Bureau to strengthen the quality of the data included in 

the assessment. NAS is scheduled to publish its final report, including 

their recommendations for indicators and data collection strategies, in 

September 2013.

Online Infrastructure

In accordance with the Strategic Plan, training and technical assistance 

(TTA) activities in FY 2011 sought to build the knowledge base of 

effective practice and disseminate knowledge products and tools to 

the national service network. For example, a total of 36 instrument 

packets were updated or created to aid AmeriCorps applicants and 

programs in selecting and implementing the national performance 

measures. Supplementary website pages for the AmeriCorps State and 

National Pilot Measures were designed and posted in December 2010. 

In addition, three tutorials were revised or added to the online learning 

center in spring 2011 including “Introducing the National Performance 

Measures,” “Basic Components of Logic Models,” and “Indicators,

Targets, and Instruments,” bringing the total number of tutorials for 

AmeriCorps performance measures to six with 868 page views and 632 

unique visitors in the first half of 2011. 

TTA materials are available through a suite of sites known individually 

as The Resource Center, The National Service Learning Clearinghouse, 

and AmeriCorps Connect. In the first two quarters of FY 2011, these sites 

collectively had over 387,000 visits. Resources available and usage of 

these sites include: 

• 19,740 video views of online training videos posted on our YouTube 

channel;

• An online learning center with 38 courses enrolling 8,261 individuals;

• Twenty-six active e-mail discussion lists with a total of 44,532 

subscriptions;

• Eighty national service-related Basecamp projects currently in use for 

collaboration and project management, supporting 1,372 users;

• Fifty-five WebEx leaders hosting a total of 419 webinar sessions with 

2,438 participants;

• During the first two quarters of 2011, 5,570 TTA requests for remote 

TTA were made and responded to via phone, individual e-mails, e-mail 

discussion groups, Basecamp, social media networks, and websites;

• A login feature recently added to The Resource Center which enables 

users to submit their own samples, submit events to the calendar, and 

rate and comment on effective practices and other content; and

• Thirteen new landing pages created on The Resource Center site to 

align with content to support Strategic Plan implementation.

Due to investments made in FY 2011 and those anticipated in FY 2012, 

CNCS will be able to realize significant cost savings and efficiencies 

in its online infrastructure. CNCS invested in a content management 

system which will be installed and launched as a part of the redesign 

and enhancement of the CNCS public website in FY 2012. This 

investment will create economies of scale by allowing CNCS to host and 

manage some of the TTA online infrastructure internally. The reduced 

costs will come from the reduced number of external servers, service 

agreements, and consultants associated with the current external 

content management system.

We are currently not able to link TTA recipients using the online platform 

with CNCS’ eGrants system. Thus, we are not able to report on the 

percentage of grantees and sponsors who participated in capacity 

building activities and opt into performance measures. However, based 

on an electronic survey sent to those who participated in the above 

activities (41 percent response rate), we know that: 

• Ninty-four percent of surveyed participants reported increasing their 

knowledge of performance measurement basics;

• Eighty-five percent reported being able to develop a performance 

measurement plan; and

• Eighty-four percent reported being able to report results/outcomes for 

their programs.

While we are pleased that these TTA activities are valued by those who 

participated, we know that the need for TTA remains strong. Recent 

grant review processes revealed uneven quality of the performance 

measures sections of applications. As CNCS institutes agency-wide 
Management’s Discussion & Analysis | PART I 25

The Corporation for National and Community Service

performance measures and related grantee and sponsor measures, 

we need to continue developing the knowledge and skills necessary 

for grantees and subgrantees to become competent in measuring the 

outcomes of their work.

Evaluation

In alignment with the 2011-2015 Strategic Plan, CNCS has developed 

an ambitious evaluation plan to provide high-quality research so 

that management decisions are based on strong evidence. FY 2011

activities included a balanced mix of rigorous, long-term, experimental 

evaluations, and shorter-term policy and management research projects 

that provide more timely information. The activities build on existing 

efforts to document participant impacts and examine impacts on service 

beneficiaries.

The agency’s research and evaluation projects are designed to address 

three main questions: 

• Which community solutions offer evidence of effectiveness in the six 

focus areas of CNCS?;

• Does service work? Why? What is the unique value of national service?; 

and 

• How can CNCS be more effective? 

As such, we began new projects in each of these areas, including 

providing in-depth technical assistance to Social Innovation Fund 

grantees on their plans to evaluate the impacts of their subgrantees, 

conducting an impact evaluation of a large tutoring grantee, and 

launching the second phase of an assessment to review grantee 

performance and outcomes (a project which continues to inform efforts 

to establish performance measures).

In addition, CNCS also worked on the following:

• Random Assignment of Youth Corps Evaluation. Research was 

completed for a random-assignment evaluation of Youth Corps 

programs (which engage disadvantaged youth in service) across 

the country to assess their impact on future employment, education, 

life skills, and civic engagement. This is the first rigorous study of 

Youth Corps in more than a decade comparing young adults who 

participate in Youth Corps to a comparison group of young adults who 

were also eligible, but did not serve in the program. While there was 

no statistically significant impact found, in three key outcome areas 

of employment, education attainment, and service, those who served 

in Youth Corps achieved other significant positive outcomes that set 

them apart from those who did not participate in the program. For 

example, they were more likely to have a higher hourly wage, a greater 

annual income, and more job stability than those who did not serve.

• Volunteering and Civic Health. CNCS also continued work on the 

Volunteering in America report with the U.S. Census Bureau and the 

Bureau of Labor Statistics. In FY 2011, the annual survey tracked 

national demographic trends in volunteering as well as place-based, 

demographic trends from 200 communities across the country. 

Research shows that Generation X made significant strides in 

their volunteer rate – doubling their rate of service since they 

were teenagers. 
Management’s Discussion & Analysis | PART I 26

The Corporation for National and Community Service

Management Performance

In FY 2011, CNCS undertook and accomplished a number of critical 

initiatives across the agency to improve operations, performance, and 

accountability. Within the last year, CNCS completed the following 

management initiatives:

In each of fiscal years 2009 –2011, CNCS’ investment in information 

technology (IT) was significantly higher than FY 2008 funding levels. 

Those funding increases have permitted a major improvement in IT 

support to agency business operations and creation of a more stable 

and agile IT environment. At the same time, those IT investments have 

resulted in recurring IT operations and maintenance costs for future 

years. As a result current annual fixed/base-level costs for steadystate agency IT operations are approximately $20 million. CNCS could 

not return to FY 2008 IT funding levels without major IT infrastructure 

restructuring and, in many cases, without reversing many of the recent 

IT investments.

In FY 2011 CNCS completed an upgrade of Momentum Financials – a 

state of the art commercial off-the-shelf financial package – which 

moves the agency’s core financial processing to a “cloud computing” 

environment. The new contract to support this effort provides CNCS 

with a commercially maintained, federally compliant financial system 

with increased capability including new easier reporting capabilities, 

integrated credit card review and processing, and a streamlined user 

interface. This initiative contributes to the agency’s priorities under 

strategic goal four. In addition, IT accomplishments included the 

following initiatives: 

Stabilized IT infrastructure:

• Improved IT security by implementing security scanning software and 

procedures to scan all new code for vulnerabilities before entering 

production;

• Upgraded the Oracle database management system; and

• Enhanced the eGrants grants management system to allow 

attachments to be entered into the system in support of recordkeeping 

requirements and audits, and to streamline the grant amendment 

process, reducing the time and labor required to enter post-award 

grant amendments to the system.

Improved productivity and service across CNCS using technology:

• Increased capacity and improvements in usability of remote access 

solutions supporting OMB telework directives;

• Acquired a data warehouse reporting tool to allow faster and more 

accurate generation of custom reports from the agency IT system

database;

• Provided capability within the eGrants system to collect, store, and 

retrieve new performance measurement data related to the new 

agency strategic plan; and

• Continued to develop and test a wireless local area network at agency 

headquarters to provide greater staff mobility and productivity.

Followed IT best practices and strived for continuous improvement:

• Continued improvement on internal OIT/CNCS governance, including 

revitalization of the agency Enterprise Review Board;

• Met OMB directive for open government and transparency; and

• Continued improvement in the agency IT security program by 

more effectively security scanning new codes and systems prior 

to implementation in production, providing greater protection for 

sensitive data, both at rest and in motion, and continued good results 

from annual information security audits.

Additionally, during FY 2011, CNCS conducted a security control 

assessment of the Momentum Financials information system, which had 

undergone significant changes and, as part of its continuous monitoring 

strategy, assessed a subset of the security controls employed within 

and inherited by the Network and the eSPAN information systems. The 

assessments determined that the security controls in place provide 

adequate security. As required by NIST SP 800-37 and OMB guidance, 

CNCS has implemented automated tools that perform vulnerability 

scans of the Network and eSPAN infrastructure devices and the eSPAN 

application code.

While additions to IT capacity and functionality over the past two years 

have resulted in significantly increased operations and maintenance 

costs, these initiatives will increase staff productivity and position CNCS 

to more effectively and efficiently carry out its mission in the long term. 

Human Capital Initiatives

In FY 2011, CNCS launched the CNCS Leadership Institute. The CNCS 

Leadership Institute will consist of two programs. The first program, 

Leadership Crossroads, is based on the highly successful Department of 

Interior Pathways to Leadership program, adapted to meet the interests 

of CNCS. Participants are individuals who have, through successful 

completion of high level duties or special assignments, demonstrated 

the potential to take on a significant leadership role in the management 

of CNCS resources, projects, and/or people.

The second program, The Partnership for Public Service Annenberg 

Leadership Institute is an innovation and leadership laboratory where 
Management’s Discussion & Analysis | PART I 27

The Corporation for National and Community Service

rising federal leaders learn the best management practices and apply 

them to pressing national issues. This program is targeted toward 

senior to mid-level CNCS employees. 

To provide confidence for agency stakeholders that CNCS is being a 

responsible steward of scarce taxpayer dollars, CNCS is reporting 

on high priority measures of the effectiveness and efficiency of its 

financial operations as part of goal four of CNCS’ new Strategic Plan.

CNCS High Priority Measures (Strategic Plan 2011-2015) 

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

Performance Measure FY11 Target FY11 Actual 

Prepare and publish audited financial statements covering CNCS operations within 45 days of fiscal year On time; On time; 

end and receive a clean audit opinion on annual financial statements Clean opinion Clean opinion

No material internal control weaknesses identified in the annual financial statement audit 0 1

No significant deficiencies in internal control weaknesses identified in the annual financial statement 2 SD 0 SD

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

Award all grants before the budget period start date 85% 92%

Post all grant competition award data to the Internet within 90 days of completion of the award process1

 85% TBD

Complete all grant-monitoring activities identified in the annual monitoring plan and follow up with 85% 88%

grantees where necessary 

Close all grants within 180 days of the performance period end date 60% 39%

Award all contracts within established Performance Action Lead-Time 92% 97%

Close all firm-fixed price contracts within 180 days of completion and notification to OPS 80% 96%

Use government-wide strategic sourcing contracts to reduce CNCS contract cost $1,000,000 $2,102,472

1. Actuals for this measure will be available in December 2011.

The measures above illustrate positive achievement against the 

targets for eight of the ten measures (80 percent) for which CNCS 

has actual data available. For example, CNCS exceeded its target for 

awarding grants before budget period start date by seven percentage 

points (92 percent actual vs. 85 percent target). CNCS did not meet its 

targets for two of the listed measures and has already begun to put in 

place process improvements to ensure stronger future performance. 

For example, CNCS has started to examine and re-sequence 

grantmaking tasks with the goal of increasing the grant closure rate 

from its current 39 percent. In addition to the new priority measures 

listed above, CNCS also continues to track measures of management 

performance related to public and employee satisfaction. Below are 

data for these indicators.
Management’s Discussion & Analysis | PART I 28

The Corporation for National and Community Service

Public and Employee Satisfaction Trends (2007 - 2011)

Performance Objective and Measure FY07 FY08 FY08 FY09 FY09 FY10 FY10 FY11 FY11

Actual Target Actual Target Actual Target Actual Target Actual

Deliver Exemplary Customer Service 

Overall CNCS score on the American 73 74 74 77 74 80 71 80 TBD1

Customer Satisfaction Index (100 point scale) 

Overall score for satisfaction with the overall 70 70 67 75 67 80 68 80 TBD1

usability and effectiveness of the agency’s major 

technology stems (100 point scale) 

Build a Diverse, Energized, and High-Performing Workforce 

Percent of employees who report overall 

satisfaction with their jobs 77% 76% 68% 72% 68% 75% 73% 72% 69% 

 

1 Actual data for this measure will be available in March 2012.

Financial Management Metrics

Since FY 2005, CNCS has measured its financial performance against 

a set of nine metrics based on the U.S. CFO Council Government-wide 

Financial Management Metrics. For the majority of FY 2005, CNCS

achieved “green” on only one out of nine (11 percent) of these metrics. 

Since that time, CNCS has made significant strides in improving its 

financial performance. For FY 2011, the yearly average of “green” scores 

was 98 percent. Comparable average scores for FY 2006—FY 2010 

are 48 percent, 62 percent, 63 percent, 69 percent, and 97 percent, 

respectively. Performance in each of the individual metrics during 

FY2011 is summarized as follows: 

Financial Management Metrics 

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

Performance Measure FY11 Target FY11 Actual 

Fund Balance with Treasury (Metric 1) 100% 100%

Suspense Account Clearance and Accounts Receivable Delinquency (Metrics 2–3) 100% 100%

The Percent of Vendor Payments by Electronic Funds Transfer (EFT) (Metric 4) 100% 100%

Percent of Vendor Payments Made on Time (Metric 5) 100% 100%

Late Payment Penalties Paid as a Percent of Total Vendor Payments (Metric 6) 100% 100%

Individually Billed Account Travel Card Timeliness (Metric 7) 100% 100%

Centrally Billed Travel Timeliness (Metric 8) 100% 100%

Purchase Card Timeliness (Metric 9) 100% 83%
Management’s Discussion & Analysis | PART I 29

The Corporation for National and Community Service

Internal Controls, Audit Results, 

and Management Assurances

CNCS is subject to the reporting requirements of the Government 

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

requirements, CNCS provides a statement on its internal accounting and 

administrative controls consistent with the requirements of the 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. 

The statement reflects CNCS’ assessment of whether there is reasonable 

assurance that internal controls are achieving the intended results, 

reports any material weaknesses in internal controls present within 

the agency, and describes management’s current plans to address and 

correct any deficiencies.

Internal Control Program

During FY 2011, CNCS 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 the monitoring of internal 

controls initiated during previous fiscal years. CNCS’ internal control 

program is led by a Senior Assessment Team (SAT) of key financial, 

program, and administrative executives. Senior managers from the 

Office of Inspector General (OIG) also attend the meetings to keep 

abreast of CNCS’ activities and to provide suggestions for improvement. 

The SAT is staffed by the Internal Control and Analysis Team (IC&A) 

within the Office of the Chief Financial Officer. The SAT approves internal 

control program improvements, oversees its maintenance, and reviews 

IC&A activities.

The risk-based assessment approach used by CNCS gives priority for 

internal control reviews, including testing, to specific organizational 

and functional areas where significant risks are known to exist. For 

example, CNCS’ Accounting, Field Financial Management Center, Grants 

Management, Human Capital, Procurement Services, Budget, and 

Information Technology Offices are all considered high priority when 

developing the annual internal control testing plan. CNCS also continued 

to improve its grantees’ oversight and monitoring program using a 

similar risk-based approach.

Basis of FY 2011 Assessment

CNCS’ assessment of internal control is based on internal control 

reviews and other analyses of CNCS operations, programs, and grantees 

including the following:

• A review of manager responses on the internal control vulnerability 

survey tool for CNCS units.

• A pre-audit assessment of the OIG’s FY 2011 audit plan in order to 

provide an early alert for senior management and to engage in early 

intervention and resolution of any self-assessed corrective actions.

• Completion of the Government Accountability Office Internal Control 

Management and Evaluation Tool.

• Continued development and enhancement of the Key Control Database 

used to document key risks and key controls of CNCS units in one 

location.

• Comprehensive risk-based Internal Control Reviews including risk 

assessments and random-sample internal control testing of key 

controls within selected CNCS program and administrative operations. 

• In-Progress Reviews (IPR) at NCCC campuses; the IPR is a focused 

management control assessment that provides a self-assessment 

by campus staff, followed by an independent review by headquarters 

staff. FY 2011 is the second year that all five campuses received 

an IPR. 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.

• OIG reports, including the annual financial statement audit and recent 

audits of portions of CNCS’ operations.

In addition, management’s knowledge of CNCS’ 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 available for grants, the receipt and evaluation of applications 

for financial assistance, and the negotiation and award of grants, 

contracts, and cooperative agreements. FY 2011 risk assessment testing 

priority decisions were influenced by the dollar volume of grant programs 

and findings associated with the FY 2010 financial statement audit. 

In carrying out the internal control program the IC&A considered the 

nature of each deficiency, the existence of compensating control, the 

dollar value of transactions potentially affected by the deficiency, the 

level of risk, and the likelihood that an error may not be prevented or 

detected. The SAT assessed and evaluated CNCS’ compliance with these 

internal control requirements as of September 30, 2011, and determined 

that none of the deficiencies found rise to the level of material weakness 

or significant deficiency. Recommended corrective actions for the 

deficiencies were reviewed and CNCS’ progress in implementing them 

will be monitored by the SAT during FY 2012 to assure that appropriate 

corrective actions are taken.

Annual Financial Audit Results

Fiscal year 2011 marks the 12th consecutive year CNCS has earned an 
Management’s Discussion & Analysis | PART I 30

The Corporation for National and Community Service

unqualified opinion on its financial statements. However, while the audit 

notes that the two significant deficiencies in internal control reported 

in FY 2010 have been corrected, it includes a new material weakness in 

financial reporting related to the restatement of CNCS’ FY 2010 financial 

statements. CNCS disagrees that this was a material weakness in FY 

2011 as noted below. The audit also found no instance of noncompliance 

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

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

year to continuously improve financial operations.

Certification and Accreditation Assessment

CNCS policy, in accordance with federal law, OMB guidance, and the 

NIST SP 800-37, Guide for Applying the Risk Management Framework to 

Federal Information Systems, requires the assessment of information 

systems security controls using appropriate assessment procedures to 

determine the extent to which the controls are implemented correctly, 

operating as intended, and producing the desired outcome with respect 

to meeting the security requirements for the system every three years 

or when there is a significant change to the system. During FY 2011 

the Momentum Financials financial management system underwent 

certification and accreditation and was reauthorized to operate after its 

prior authorization termination date was reached. In addition, subsets 

of the network and eSPAN security controls were evaluated in support of 

CNCS’ continuous monitoring efforts.

Management Assurances

Statement of Assurance for Financial Management Systems, 

Operations, and Compliance with Laws and Regulations

CNCS is responsible for establishing and maintaining effective internal 

control and financial management systems that meet the objectives 

of Federal Managers Financial Integrity Act of 1982 (FMFIA) CNCS 

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 its evaluation, CNCS 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, 

2011, was operating effectively.

Statement of Assurance for Internal Control over Financial Reporting

The FY 2011 report on internal control reports a material weakness 

in financial reporting derived from the restatement of CNCS’ FY 2010 

financial statements. Based on the results of its evaluation, CNCS 

provides reasonable assurance that its internal control over financial 

reporting as of September 30, 2011, was operating effectively and free 

of material weaknesses, except as noted in the following paragraph.

As described more fully in footnote 18 to the financial statements, CNCS 

determined in reviewing the first quarter fiscal 2011 grants accrual 

received from HHS that there appeared to be an anomaly. That review 

resulted in HHS providing a restatement of its fiscal 2010 fourth quarter 

accrual because it had made a computational error. Because the 

differences in certain accounts were material, CNCS restated its prior 

year financial statement balances to correct the error so that reliable 

comparisons can be made. The internal controls of HHS in reviewing its 

CNCS grants accrual, as well as those of CNCS failed to detect the error 

during the fiscal 2010 financial statement audit. In addition to restating 

the fiscal 2010 balances, CNCS has added procedures to validate the 

HHS quarterly grant accrual data against the daily data provided by HHS 

and recorded in CNCS’ records. This new procedure, in effect during FY 

2011, would have detected the kind of error that was made by HHS at 

the end of fiscal 2010.

Compliance with Financial Systems Requirements, Accounting 

Standards, and U.S. Standard General Ledger

The FMFIA 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. 

CNCS utilizes Momentum Financials as its core financial system. 

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

certified by the Office of Federal Financial Management as meeting 

the Circular A-127 financial system requirements. Activity is posted 

in Momentum Financials following the USSGL at the transaction level. 

Based on its review of central financial processes CNCS determined that 

it complies substantially with the requirements of the FFMIA for FY 2011.

Certification of Trust Obligations

The National and Community Service Act of 1990 (NCSA), as amended 

by the Edward M. Kennedy Serve America Act (PL 111-13), establishes 
Management’s Discussion & Analysis | PART I 31

The Corporation for National and Community Service

the specific criteria for estimating and recording obligations in the 

Trust. The NCSA also requires the Chief Executive Officer of CNCS to 

annually certify that CNCS is in compliance with the requirements of 

the NCSA, and to obtain an independent audit of the accounts and 

records demonstrating the manner in which CNCS has recorded its Trust 

estimates (see Section 149 of Public Law 101-610, 42 USC 12606). 

CNCS’ OIG obtained the independent audit required by the NCSA for 

FY 2011. Based on CNCS’ analysis and review of Trust activities and 

the results of OIG’s audit, CNCS certifies that it complied with these 

requirements for FY 2011.

Robert Velasco II

Acting Chief Executive Officer

William Anderson

Chief Financial Officer
Management’s Discussion & Analysis | PART I 32

The Corporation for National and Community Service

Analysis of Appropriations and 

Financial Condition

Understanding The Financial Statements

CNCS has a fiduciary and stewardship responsibility to efficiently 

and effectively manage its federal funds and to comply with federal 

guidance on financial management. As part of this responsibility, 

the agency prepares annual financial statements in conformity with 

generally accepted accounting principles (GAAP) for U.S. Federal 

government corporations and subjects them to an independent audit to 

ensure their integrity and reliability in assessing performance. For FYs 

2010 and 2011, CNCS’ financial statements received an unqualified 

opinion. This opinion recognized that CNCS’ financial statements 

are fairly presented, in all material respects, and in conformity with 

generally accepted accounting principles.

The consolidated financial statements report CNCS’ financial position, 

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

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

13331, National and Community Service Programs. As specified in 

GCCA, the principal financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position (income 

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

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

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities. 

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

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

information about the budgetary resources made available to CNCS and 

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

Restatement of FY 2010 Estimated Accrued Grant Expense

CNCS restated its audited FY 2010 Consolidated Statements of 

Financial Position, Operations and Changes in Net Position, and Cash 

Flows to correct an overstatement of its estimated accrued grant 

expense. The restatements had no effect on the FY 2010 Combined 

Statement of Budgetary Resources.

The cause of the restatements was an erroneous calculation of 

estimated accrued grant expense prepared by the Department of Health 

and Human Services’ Payment Management Division (HHS). Under an

interagency agreement between CNCS and HHS, HHS manages CNCS’ 

grant payment activity and related Treasury reporting. Each quarter HHS 

provides CNCS with a grant accrual estimate to account for expenses 

not yet reported to HHS by CNCS’ grantees. At the end of the subsequent 

quarter, HHS provides the actual grant expense (to replace the previous 

estimate) and provides a new quarterly estimate. The estimate for the 

final quarter is used in CNCS’ annual financial statements to report the 

accrued cost of its grant programs at the close of the fiscal year. CNCS 

uses detailed transaction activity provided by HHS through an electronic 

interface to reflect actual grant activity on a daily basis for operational 

and program monitoring purposes.

HHS bases its estimate on historical cash drawdown and expense data. 

To provide CNCS with assurance that this data is reliable, HHS’ Office 

of Inspector General (OIG) conducts a SAS 703

 audit of HHS’ operations 

and provides the results to CNCS on an annual basis. HHS OIG’s FY 2010 

audit report disclosed no issue with the grant expense accrual process 

used by HHS and therefore could be relied on by CNCS when assessing 

the estimate for FY 2010.

In preparing the FY 2010 year-end financial statements, the adjustment 

provided by HHS was reviewed by CNCS and deemed to be a reasonable 

estimate. An increase in the end of year quarterly grant accrual estimate 

was expected because of a higher grant budget for the year (CNCS’ FY 

2010 budget increased by $229.9 million over FY 2009) and the effects 

of Recovery Act activity (CNCS received $200 million in FY 2009/FY 

2010 Recovery Act funds). However, in January 2011 while reviewing the 

grant accrual estimate for the first quarter of 2011, CNCS noted that the 

estimate remained unexpectedly high. CNCS accounting staff contacted 

HHS to inquire about the high estimate. In June, HHS acknowledged that 

its estimate was incorrect (because of a computational error). In July, 

HHS revised its grant expense estimate when it provided the data for the 

quarter ended June 30, 2011. During its year-end financial audit process 

CNCS determined that because the effect was material to the FY 2010 

financial statements the revised HHS estimate should be treated as a 

correction of an error rather than a change in estimate. 

3 On June 15, 2011, Statement on Standards for Attestation Engagements No. 16 (SSAE 16) effectively replaced the SAS-70 as the authoritative guidance 

for reporting on service organizations.
Management’s Discussion & Analysis | PART I 33

The Corporation for National and Community Service

While the effect of this change on the Net of Revenue over Expenses 

on the Statement of Operations is zero, the adjustment has a material 

effect on several line items. As a result, CNCS restated its balance 

sheet, income statement, cash flow statement, and the related footnotes 

for FY 2010 (see footnote 18).

Changes in Financial Position

CNCS’ financial statements present comparative information for FYs 

2011 and 2010. The following table presents the changes in CNCS’ 

financial position in FY 2011. The changes shown below reflect the 

effects of the restatement of the FY 2010 statements to reduce CNCS’ 

estimated grant expense as described above.

Composition of CNCS Assets

The Statement of Financial Position presents the total amounts available 

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

amounts that comprise the difference (net position). Over 95 percent 

of CNCS’ total assets are comprised of Fund Balance with Treasury and 

Trust Investments and Related Receivables. 

In FY 2011, total assets decreased by about 1.8 percent over the balance 

at the end of FY 2010. The majority of the decrease, $55.5 million, 

occurred in the Fund Balance with Treasury account (FBWT). FBWT is 

funding available to CNCS to make expenditures for authorized expenses 

through the disbursement authority of the Department of the Treasury. 

The FBWT is increased through appropriations and collections and 

decreased by expenditures and rescissions. The decrease in FY 2011 

primarily reflects the cuts to CNCS’ budget in FY 2011 and the ongoing 

payment on grants and contracts.

Trust Investments and Related Receivables are used to pay Segal 

AmeriCorps Education Awards for eligible participants who complete 

AmeriCorps service. Funding for the Trust comes from appropriations, 

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

The account increased by $40.5 million which reflects the net effect of FY 

2011 appropriations for new AmeriCorps positions awarded during the year 

and payments made on previously earned awards.

CNCS records Trust obligations at the time of grant award for 

AmeriCorps State and National, or at the time CNCS 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 estimated 

enrollment, earning and usage rates, and the time value of money. 

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

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

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

actual results. During FY 2011, CNCS based its obligation amount on 

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

(allowing for refills), and earning and usage rates ranging from 77 to 86 

percent depending on term type.

As of September 30, 2011, the National Service Trust had available 

cash, investments, and other assets of about $606.7 million to make 

education award and interest forbearance payments. Of this amount, 

CNCS’ unliquidated obligations for awarded AmeriCorps positions

totaled about $542.6 million.

Net Financial Condition FY 2011 FY 2010 Restateted Increase/(Decrease) 

 (Dollars in thousands)

Assets $1,622,006 $1,651,155 $(29,149)

Liabilities $552,788 $538,539 $14,249

Net Position $1,069,218 $1,112,616 $(43,398)

Net of Revenue over Expense $15,594 $(11,416) $27,010
Management’s Discussion & Analysis | PART I 34

The Corporation for National and Community Service

About $10.8 million was available at year-end to fund new AmeriCorps 

member positions, of which $1.9 million derives from Recovery Act 

funding, which cannot be used without new authorization. Trust assets 

are estimated to be fully sufficient to pay for all awarded AmeriCorps 

positions. As grants expire, CNCS deobligates funds related to member 

positions that were not filled. CNCS also continuously analyzes Trust 

operations and liability projections to identify any needed adjustments 

to obligations.

 Advances to Others mainly represent funds provided to grantees in 

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

advances are liquidated during the first quarter of the subsequent 

fiscal year. Advances to Others decreased by about 21 percent, from $82 

million at September 30, 2010 (as restated) to $65 million at September 

30, 2011, reflecting the close out of Recovery Act activity and the 

decreased funding level for 2011 programs.

Composition of Corporation Liabilities

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

Grants Payable. Individuals who successfully complete terms of service 

in AmeriCorps programs earn education awards that can be used to 

make payments on qualified student loans or for educational expenses at 

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

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

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

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

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

Education. The award amount increased to $5,550 for FY 2011. 

The Trust also pays forbearance interest on qualified student loans 

during the period members perform community service. Each year the 

award liability components related to education awards and interest 

forbearance are adjusted to reflect current trends. For FY 2011, the Trust 

Service Award Liability increased by $30.4 million, about eight percent, 

due to the continued enrollment of members in AmeriCorps programs, 

the increase in the value of an education award, and a slight increase in 

the projected usage rate.

Fund Balance with Treasury 58%

Trust Investments and Related Receivables 37%

Advances to Others 4%

Accounts Receivable, Net 1%

Property and Equipment, Net 0%

CNCS Assets as of September 30, 2011 

37%

4%

1%

0%

58%
Management’s Discussion & Analysis | PART I 35

The Corporation for National and Community Service

Grants Payable represents funds due to grantees in payment of 

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

are liquidated during the first quarter of the subsequent fiscal year. 

Grants Payable decreased by about 7.5 percent, from $125.7 million at 

September 30, 2010 (as restated) to $116.3 million at September 30, 

2011, reflecting the close out of Recovery Act activity and the decreased 

funding level for 2011 programs. 

Results of Operations

The Statement Operations and Changes in Net Position presents revenue 

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

operating CNCS programs. CNCS recognizes its use of appropriated 

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

or administrative expenses. Appropriations received for the CNCS’ Trust 

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

appropriate cost accounting methodology, CNCS’ expenses have been 

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

for each major CNCS program are reported on separately. Program 

costs include grant expenses, and direct and allocated personnel and 

administrative costs including AmeriCorps recruitment and National 

Service Trust operations.

For FY 2011, CNCS Revenue totaled $1.114 billion, an increase of $17.9 

million, or 1.6 percent, above the FY 2010 (as restated) level. Total 

Expenses reported for FY 2011 were $1.098 billion which represents a 

decrease of $9.2 million, or 1 percent, from FY 2010 level. The decrease 

reflects the reduced funding level in FY 2011 for all of CNCS’ programs. 

2%

0%

1%

2%

CNCS Liabilities as of September 30, 2011 

Trust Service Award Liability 74%

Grants Payable 21%

Accounts Payable 0%

Actuarial FECA Liability 2%

Other Liabilities 2%

Accrued Annual Leave 1%

21%

74%
Management’s Discussion & Analysis | PART I 36

The Corporation for National and Community Service

 CNCS’ net revenue over expenses for FY 2011 was $15.6 million 

compared with a deficit of revenue over expenses of ($11.4) million 

in 2010. The surplus of revenue over expenses in FY 2011 is primarily 

attributable to the Trust, wherein revenue exceeded expenses by $10.6 

million.

Budgetary Resources

The Statement of Budgetary Resources provides information on how 

budgetary resources were made available to CNCS for the year and 

the status of those budgetary resources at year-end. For FY 2011, 

Total Budgetary Resources decreased by $112.8 million. Similarly, 

total Obligations Incurred in FY 2011 decreased by $114.2 million. The 

decrease in both total budgetary resources available to CNCS in FY 2011 

and the obligations CNCS incurred reflects the reduced funding in FY 

2011 across CNCS programs.

Future Business Trends and Events

CNCS is continuously faced with increased expectations for oversight, 

transparency, and accountability. To meet these expectations, CNCS 

takes a broad view of financial management, seeking to continuously 

improve and integrate its financial operations and processes at 

the systems and program support level and beyond. As we monitor 

resources, we will continue to focus on discerning the value of the goods 

and services we get in return for our expenditures. Some of the areas 

CNCS will focus on in both the immediate and long-term future include:

• Grants Process Improvements. CNCS completed a review of its 

current systems, organizational structure, and business processes 

and provided recommendations for a more efficient grants process 

and structure. The goal of the review was to provide the basis for 

streamlining the grants management and member application 

systems and processes to reduce the burden on programs and the 

public by: 

> Reducing duplication of efforts; 

> Eliminating unnecessary steps;

> Shortening processing timeframes;

> Effectively sequencing tasks to achieve greater staff efficiency; 

and

> Aligning with the requirements of the Serve America Act. 

• Data Security. CNCS values the trust placed in it by programs, 

participants, and others interested in national and community service. 

During FY 2011, CNCS completed vulnerability scanning of publicfacing elements of CNCS systems. Scan results indicating a high risk 

for possible data exposure were expeditiously addressed. CNCS has 

also hired a system security engineer and acquired scanning software 

to ensure that new vulnerabilities are not introduced into CNCS 

systems.

• eGrants System Enhancements. CNCS is enhancing its eGrants 

system capability to collect, store, and retrieve new performance 

measurement data related to the new agency Strategic Plan; allow 

3%

1%

0%

CNCS Expenses for the Period Ended September 30, 2011

AmeriCorps 74%

Pass-through Grants 0%

Senior Corps 22%

Learn and Serve America 3%

Office of the Inspector General 1%

22%

74%
Management’s Discussion & Analysis | PART I 37

The Corporation for National and Community Service

supporting documents to be stored electronically in support of 

recordkeeping and audit requirements; and streamline the process for 

supporting grant amendments. These enhancements will significantly 

contribute to agency accountability and improve staff productivity. 

• Financial System Upgrade. CNCS utilizes a state of the art 

commercial off-the-shelf accounting system, Momentum Financials, 

to manage its core financial activities. Momentum Financials was

implemented without customization in order to minimize risks 

associated with systems development efforts. During FY 2011, CNCS 

upgraded the system to a current version in order to have continued 

vendor maintenance, and improved internal controls and efficiencies. 

The upgrade was completed on schedule and on budget during FY 

2011. Under the new contract, Momentum Financials is hosted in a 

“cloud computing” environment. The upgrade provides CNCS with a

commercially maintained federally compliant financial system with 

increased capability including better reporting capability, integrated 

credit card review and processing, and a streamlined user interface.

• Budget Formulation. In FY 2010, CNCS entered into an interagency 

agreement with the U.S. Department of the Treasury to adopt its 

Budget Formulation and Execution Manager (BFEM). BFEM allows 

CNCS to automate the collection, aggregation, and publication of its 

budget submissions to OMB and Congress. Following an initial period 

of data gathering and process mapping, CNCS launched BFEM in 

FY 2011 and developed its FY 2013 OMB Budget Submission. CNCS 

will complete the FY 2013 Congressional Budget Justification using 

BFEM and will continue to use this system in the future. In addition to 

BFEM, CNCS will test a performance measure management (PMM) tool 

and a business intelligence and reporting platform (Pentaho) offered 

under the BFEM partnership. By providing web-based, centralized

data access, these tools have the potential to allow CNCS to analyze 

decision-support information more efficiently and better link budget 

and performance information in a common information system.

• Open Government. To foster unprecedented levels of accountability 

and transparency in government spending, CNCS is actively 

implementing its Open Government Plan in an effort to imbed the

principles of transparency, participation, and collaboration that form 

the cornerstone of an open government into agency operations. Over 

the last 12 months CNCS has taken the following steps to improve 

transparency, participation, and collaboration in its daily operations:

 > Created an enhanced Open Government web page with new 

data sources at http://www.nationalservice.gov/about/open/

index.asp;

 > Published policy on transparency in the grant application 

review process;

 > Published the results of grants competitions including the 

review process, lists of compliant applications, executive 

summaries of compliant applications, and full narratives of 

successful applications;

 > Published the lists of Freedom of Information Act (FOIA) 

requests received over the year; and

 > Appointed a Senior Official for plain writing, established a plain 

writing website, and provided plain writing training for staff. 
Financial Statements | PART II 38

The Corporation for National and Community Service

Financial Statements
Financial Statements | PART II 39

The Corporation for National and Community Service

Message from the CFO

The Annual Financial Report is the main mechanism for CNCS to report on its financial operations and 

provide transparency and accountability to the American people. I am pleased to report that CNCS 

maintained its record of strong fiscal stewardship in FY 2011. CNCS received an unqualified “clean” 

opinion on its consolidated financial statements for the 12th consecutive year. 

Like most federal agencies, CNCS’ operations were strained by the fiscal challenges facing the nation, 

with significant reductions enacted in FY 2011 for its AmeriCorps and Senior Corps programs. Operating 

within these challenges, during FY 2011 CNCS approved and began implementation of a comprehensive 

five-year Strategic Plan that provides a roadmap for using national service to address critical 

challenges facing our communities and nation. The plan builds on the strong foundation of national 

service that has developed over the past four decades and was guided by the vision set forth in the 

bipartisan Edward M. Kennedy Serve America Act (SAA). The SAA and our Strategic Plan recognize that 

national service will have its greatest impact if we target resources on a core set of critical national 

problems and evaluate our impact using standardized performance measures. 

In keeping with the agency’s focus on strong financial management 

practices under goal 4 of its Strategic Plan, during FY 2011 CNCS:

• Successfully implemented a major upgrade of the agency’s core 

financial system application, Momentum Financials, to increase 

productivity and improve internal controls when processing financial 

transactions and preparing financial reports, thus ensuring the 

continued validity and reliability of agency financial data. By moving 

to a cloud-based system CNCS expects to achieve operational 

efficiencies and lower the cost of its transaction processing.

• Successfully implemented a new web-based budget formulation 

system that will increase efficiency and transparency, while 

maintaining accuracy in CNCS’ budget formulation process. 

• Streamlined and strengthened grant-making processes by 

eliminating duplication of effort and further aligning grantmaking 

with the SAA.

• Began implementation of a major overhaul of CNCS’ compliance protocols that will focus on grantees’ performance reporting and adherence to 

major regulations.

• Continued to lead in federal open government initiatives by introducing a new website through which the agency published a significant amount 

of its grants processing information and provided a forum for webcasting board meetings – both being of vital importance to keeping citizens 

informed of agency efforts.

In FY 2011 CNCS maintained its 

record of strong fiscal stewardship for 

the American people. CNCS received 

an unqualified “clean” opinion on its 

consolidated financial statements for 

the 12th consecutive year.
Financial Statements | PART II 40

The Corporation for National and Community Service

• Achieved a 100 percent score on all but one, and an overall score of 

98 percent for the year on the financial metrics tracked by the Office 

of the Chief Financial Officer.

• Eliminated the two significant deficiencies in internal control 

identified in the FY 2010 financial audit.

These accomplishments are laudable; however, work with our auditors 

points out that there are areas where we can do better. During FY 

2011 CNCS implemented additional reviews of CNCS financial data 

managed by other federal agencies and will look to make further 

improvements in its operations to ensure that its financial reporting 

process is accurate and timely. CNCS is committed to streamlining 

and improving its fiscal operations to meet the goals outlined by the 

President. In meeting these challenges CNCS will continue to practice 

strong financial management as shown through the information provided in this year’s Annual Financial Report. 

Finally, I would like to thank the financial management and program professionals throughout the agency for their continued dedication and hard 

work this past year. It is their efforts that enable CNCS to deliver the most accurate, transparent, and useful information possible.

William Anderson

Chief Financial Officer

FY 2011 CNCS: Achieved a 100 

percent score on all but one, and 

an overall score of 98 percent for 

the year on the financial metrics 

tracked by the Office of the Chief 

Financial Officer.
Financial Statements | PART II 41

The Corporation for National and Community Service

Consolidated Financial 

Statements

CNCS’ consolidated financial statements report its financial position, 

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

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

13331, National and Community Service Programs. The Act requires 

that government corporations submit an annual report including the 

corporation’s financial statements to Congress. As specified in the Act, 

principal financial statements of CNCS are the:

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

status of CNCS assets, liabilities, and net position;

• Statement of Operations and Changes in Net Position (income 

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

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

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities.

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

prepares a Statement of Budgetary Resources (SBR) as a principal 

financial statement. The SBR provides information about the budgetary 

resources made available to CNCS and the status of those resources at 

the end of the fiscal year.

CNCS’ financial statements provide comparative information for FY 

2011 and 2010. For FY 2011, CNCS’ financial statements, for the 

12th consecutive year, received an unqualified opinion. This opinion 

recognizes that CNCS’ financial statements are fairly presented, in all 

material respects, and in conformity with generally accepted accounting 

principles. CNCS has restated its audited FY 2010 Consolidated 

Statements of Financial Position, Operations, and Changes in Net 

Position, and Cash Flows to correct an overstatement of its estimated 

accrued grant expense (see note 18). The restatements had no effect on 

the FY 2010 Combined Statement of Budgetary Resources.

Limitations of the Financial Statements 

The principal financial statements have been prepared in compliance 

with the reporting requirements described above. CNCS’ financial

statements published herein are in addition to the financial reports it 

uses to monitor and control budgetary resources which are prepared 

from the same books and records. The statements should be read with 

the realization that they are for a component of the U.S. Government, 

a sovereign entity. An implication of this is that liabilities cannot be 

liquidated without legislation that provides the resources to do so.
Financial Statements | PART II 42

The Corporation for National and Community Service

Corporation for National and Community Service 

Consolidated Statements of Financial Position as of September 30 

(dollars in thousands) 

 

ASSETS 2011 Restated 

 2010

Fund Balance with Treasury (Note 2) $ 942,870 $ 998,408 

Trust Investments and Related Receivables (Note 3) 605,661 565,195 

Advances to Others (Note 18) 64,942 82,640 

Accounts Receivable, Net (Note 4) 7,607 3,783 

Property and Equipment, Net (Note 5) 926 1,129 

 Total Assets $ 1,622,006 $ 1,651,155 

LIABILITIES 

Trust Service Award Liability (Note 6) $ 410,261 $ 379,878 

Grants Payable (Note 18) 116,261 125,678 

Accounts Payable 2,637 2,875 

Actuarial FECA Liability (Note 8) 9,092 12,092

Accrued Annual Leave 4,121 4,163 

Other Liabilities 10,415 13,853 

 Total Liabilities $ 552,787 $ 538,539 

Contingencies (Note 14) 

NET POSITION (Note 9 and 18) $ 1,069,219 $ 1,112,616 

Total Liabilities and Net Position $ 1,622,006 $ 1,651,155 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 43

The Corporation for National and Community Service

Corporation for National and Community Service 

Consolidated Statements of Operations and Changes in Net Position for the Periods 

Ended September 30 (dollars in thousands) 

REVENUE 2011 Restated 

 2010

Appropriated Capital Used (Note 18) $ 883,872 $ 876,568 

Appropriations Received by the National Service Trust (Note 10) 201,200 199,659 

Interest 4,669 7,288 

Revenue from Services Provided 12,049 11,274 

Other 11,839 990 

 Total Revenue $ 1,113,629 $ 1,095,779 

EXPENSES 

AmeriCorps $ 807,960 $ 808,662 

Senior Corps 237,348 235,814 

Learn and Serve America 33,261 37,539 

Innovation, Demonstration and Assistance Activities 11,464 17,888 

Office of the Inspector General 8,001 7,292 

 Total Expenses (Note 11 and 18) $ 1,098,034 $ 1,107,195 

Net of Revenue Over Expenses $ 15,595 $ (11,416) 

NET POSITION 

Net of Revenue over Expenses $ 15,595 $ (11,416) 

Increase/(Decrease) in Unexpended Appropriations, Net (Note 13 and 18) (58,992) 44,124 

Increase/(Decrease) in Net Position, Net (Note 18) (43,397) 32,708 

Net Position, Beginning Balance 1,112,616 1,079,908 

Net Position, Ending Balance (Note 9 and 18) $ 1,069,219 $ 1,112,616 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 44

The Corporation for National and Community Service

Corporation for National and Community Service 

Consolidated Statements of Cash Flows for the Periods Ended September 30 

(dollars in thousands) 

CASH FLOWS FROM OPERATING ACTIVITIES 2011 Restated 

 2010

Net of Revenue over Expenses $ 15,595 $ (11,416)

Adjustments Affecting Cash Flow:

 Depreciation, Amortization, and Loss on Disposition of Assets 203 580 

 Amortization of Premium/Discount on Investments 1,137 4,045 

 Appropriated Capital Used (Note 18) (883,872) (876,568)

 Appropriations Received in Trust (201,200) (199,659)

 Decrease/(Increase) in Accounts Receivable (3,824) (1,020)

 Decrease/(Increase) in Interest Receivable 299 2,363 

 Decrease/(Increase) in Advances to Others (Note 18) 17,698 (15,119)

 Increase/(Decrease) in Accounts Payable and Other Liabilities (3,676) (2,091)

 Increase/(Decrease) in FECA and Annual Leave Liabilities (3,042) 1,770 

 Increase/(Decrease) in Trust Liability 30,383 55,811 

 Increase/(Decrease) in Grants Payable (Note 18) (9,417) 20,594 

 Total Adjustments (1,055,311) (1,009,294)

Net Cash Provided/(Used) by Operating Activities $ (1,039,716) $ (1,020,710)

CASH FLOWS FROM INVESTING ACTIVITIES 

Sales of Securities 749,891 905,140 

Purchase of Securities (791,793) (956,905)

Net Cash Provided/(Used) in Investing Activities $ (41,902) $ (51,765)

CASH FLOWS FROM FINANCING ACTIVITIES 

Appropriations Received, Net of Trust 1,077,733 1,149,721 

Rescissions and Cancellations (51,653) (29,370)

Net Cash Provided by Financing Activities $ 1,026,080 $ 1,120,351 

Net Increase/(Decrease) in Fund Balance with Treasury $ (55,538) $ 47,876 

Fund Balance with Treasury, Beginning $ 998,408 $ 950,532 

Fund Balance with Treasury, Ending $ 942,870 $ 998,408 

The accompanying notes are an integral part of these financial statements.
Financial Statements | PART II 45

The Corporation for National and Community Service

Corporation for National and Community Service 

Combined Statements of Budgetary Resources for the Periods Ended 

September 30 (dollars in thousands)

BUDGETARY RESOURCES 2011 2010

Unobligated balance, brought forward, October 1 $ 155,307 $ 187,608 

Recoveries of prior year unpaid obligations 53,606 32,951 

Budget authority: 

 Appropriation 1,286,080 1,366,207 

 Spending authority from offsetting collections: 

 Collected 12,116 11,435 

 Change in receivables from federal sources 6 - 

 Change in unfi lled customer orders: 

 Advance received 53 - 

 Without advance from federal sources 534 - 

Total budget authority 1,298,789 1,377,642 

Permanently not available (51,653) (29,370)

 Total budgetary resources $ 1,456,049 $ 1,568,831 

STATUS OF BUDGETARY RESOURCES 

Obligations incurred 

 Direct $ 1,288,240 $ 1,403,065 

 Reimbursable 11,081 10,459

 Subtotal 1,299,321 1,413,524

Unobligated balance 

 Apportioned 70,623 50,497 

 Unobligated balance not available 86,105 104,810 

 Total status of budgetary resources $ 1,456,049 $ 1,568,831 

 (Continued)

The accompanying notes are an integral part of these fi nancial statements.
Financial Statements | PART II 46

The Corporation for National and Community Service

 (Continued)

Corporation for National and Community Service 

Combined Statements of Budgetary Resources for the Periods Ended September 30 

(dollars in thousands) 

CHANGE IN OBLIGATED BALANCE 2011 2010

Obligated balance, net: 

 Unpaid obligations, brought forward, October 1 $ 1,400,061 $ 1,265,772 

 Uncollected customer payments from federal sources, 

 brought forward, October 1 - - 

 Total unpaid obligated balance, net 1,400,061 1,265,772 

Obligations incurred, net 1,299,321 1,413,524 

Gross outlays (1,257,893) (1,246,284) 

Recoveries of prior year unpaid obligations, actual (53,606) (32,951) 

Change in uncollected customer payments from federal sources (539) - 

 Total unpaid obligated balance, net, end of period $ 1,387,344 $ 1,400,061 

Obligated balance, net, end of period: 

 Unpaid obligations $ 1,387,883 $ 1,400,061 

 Uncollected customer payments from federal sources (539) - 

 Total unpaid obligated balance, net, end of period $ 1,387,344 $ 1,400,061 

NET OUTLAYS 

Gross outlays $ 1,257,893 $ 1,246,284 

Offsetting collections (12,169) (11,436) 

Distributed offsetting receipts (202,076) (200,822) 

 Net outlays $ 1,043,648 $ 1,034,026 

The accompanying notes are an integral part of these fi nancial statements.

 brought forward, October 1 - - 

Change in uncollected customer payments from federal sources (539) - 

 Uncollected customer payments from federal sources (539) - 

Distributed offsetting receipts (202,076) (200,822) 

 brought forward, October 1 - - 

Change in uncollected customer payments from federal sources (539) - 

 Uncollected customer payments from federal sources (539) - 

Distributed offsetting receipts (202,076) (200,822) 
Financial Statements | PART II 47

The Corporation for National and Community Service

NOTE 1—Summary of Significant Accounting Policies 

A. REPORTING ENTITY

The Corporation for National and Community Service (CNCS) was created 

by the National and Community Service Trust Act of 1993 (Public Law 

103-82). CNCS’ mission is to improve lives, strengthen communities, 

and foster civic engagement through service and volunteering. To meet 

its mission, CNCS provides grants and other assistance to states, 

local municipalities, and nonprofit organizations to help communities 

meet critical challenges in the areas of education, healthy futures, 

environmental stewardship, economic opportunity, disaster services, 

and assisting veterans and military families through volunteer service. 

CNCS’ major programs are:

Senior Corps. Senior Corps offers a network of programs that tap 

into the rich experience, skills and talents of older citizens to meet 

community challenges. Senior Corps comprises the 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; and

• National Civilian Community Corps (NCCC) strengthens communities 

while developing leaders through direct, team-based 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. 

CNCS, for the most part, administered its programs in fiscal year 2011 

from the following trust, gift and appropriated funds:

Trust and Gift Funds:

• National Service Trust (the Trust), from which CNCS provided 

education awards and interest forbearance for volunteers under the 

AmeriCorps State and National; NCCC; and VISTA programs.

• Gifts and Contributions, into which CNCS deposited gifts and 

contributions from individuals and organizations for use in furthering 

CNCS’ goals. 

Appropriated Funds:

• Operating Expenses, from which the Corporation funded Senior Corps, 

AmeriCorps, Learn and Serve America and other program activity. 

• Salaries and Expenses, from which the Corporation funded its general 

administrative expenses.

• Office of Inspector General, from which CNCS funded the expenses of 

the OIG.

• VISTA Advance Payment Revolving Fund, from which CNCS paid 

the living allowances for VISTA members enrolled under cost share 

agreements with sponsoring organizations. CNCS is reimbursed for 

these costs by the sponsoring organization. Despite the account title, 

the VISTA Advance Payment Revolving Fund is not a revolving fund, 

but rather a general fund expenditure account. 

On February 17, 2009, the President signed into law the American 

Recovery and Reinvestment Act of 2009 (Recovery Act). The Recovery 

Act included funding for the use of CNCS to support an expansion of the 

AmeriCorps State and National and VISTA programs. As a result of the 

passage of the Recovery Act, three additional appropriated funds were 

established:

• Operating Expenses, Recovery Act, from which CNCS funded the 

increased AmeriCorps State and National and VISTA membership as a 

result of the Recovery Act.

• Salaries and Expenses, Recovery Act, which funded CNCS’ expenses 

to improve IT systems and administer the increased AmeriCorps State 

and National and VISTA membership. 

• Office of Inspector General, Recovery Act, from which CNCS funded the 

expenses of the OIG’s Recovery Act oversight responsibilities. 

B. BASIS OF ACCOUNTING

The accompanying financial Statements include all funds administered 

by CNCS, as delineated in Note 1A– Reporting Entity. They include CNCS’ 

activities related to providing grants and other assistance to eligible 

states, local governments, and nonprofit organizations as well as 

education awards to eligible national service participants. All significant 

inter-entity transactions and balances are eliminated in consolidation. 
Financial Statements | PART II 48

The Corporation for National and Community Service

C. FINANCIAL STATEMENT PRESENTATION AND CONSOLIDATION POLICY

The accompanying financial statements report CNCS’ financial position, 

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

Corporation Control Act (GCCA). As required by GCCA, the principal 

financial statements of CNCS are the:

• Statement of Financial Position, which reports the status of 

Corporation assets, liabilities, and net position; 

• Statement of Operations and Changes in Net Position, which reports 

CNCS’ revenues and expenses for the year and the changes in net 

position that occurred during the year; and 

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

financial position and results affected its cash (Fund Balance with 

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

investing, and financing activities. 

The financial statements are presented in accordance with the 

accounting principles generally accepted in the United States of 

America (GAAP), as applicable to federal government corporations. The 

Federal Accounting Standards Advisory Board (FASAB) is the standard 

setting body for the federal government. Statement of Federal Financial 

Accounting Standards Number 34 (SFFAS 34) provides that financial 

statements prepared by certain government corporations in conformity 

with the accounting standards issued by the Financial Accounting 

Standards Board (FASB) are regarded as being in conformity with 

GAAP. As provided by SFFAS 34, where there is no standard issued by 

FASB applicable to the federal corporation the financial statements are 

presented in accordance with the accounting standards issued by FASAB.

In addition, under Executive Order 13331, National and Community 

Service Programs, CNCS must prepare a Combined Statement of 

Budgetary Resources as a principal statement. The accompanying 

Combined Statements of Budgetary Resources have been prepared in 

accordance with GAAP, as prescribed by FASAB.

CNCS’ consolidation policy requires the consolidation of all funds 

administered by CNCS, as delineated in Note 1A – Reporting Entity. 

D. BUDGETS AND BUDGETARY ACCOUNTING

The activities of CNCS are primarily funded through the annual 

Departments of Labor, Health and Human Services, Education and 

Related Agencies Appropriation Act. CNCS’ accounting structure 

reflects both accrual and budgetary accounting transactions. Under the 

accrual method of accounting, revenues are recognized when earned 

and expenses are recognized when incurred, without regard to the 

actual collection or payment of cash. Federal budgetary accounting 

recognizes the obligation of appropriations and other funds upon the 

establishment of a properly documented legal liability, which, in many 

cases, is different from the recording of an accrual-based transaction. 

The recognition of budgetary accounting transactions is essential for 

compliance with legal controls over the use of federal funds.

E. ASSET AND LIABILITY VALUATION

CNCS values its investments at carrying value and discloses fair value. 

As of September 30, 2011, the carrying amounts of Fund Balance with 

Treasury, Accounts Receivable, Advances to Others, Accrued Interest 

Receivable, Accounts Payable and Other Liabilities approximate their fair 

value. 

F. FUND BALANCE WITH TREASURY

CNCS considers Fund Balance with Treasury (FBWT) to represent cash 

and cash equivalents. It is CNCS’ cash accounts with the Department 

of the Treasury (the Treasury). The Treasury processes cash receipts and 

disbursements on behalf of CNCS and CNCS’ accounting records are 

reconciled with those of the Treasury on a regular basis. CNCS’ FBWT 

includes all of its appropriated and trust funds. 

The FBWT maintained in the National Service Trust is restricted to 

specific purposes, such as paying service awards earned by eligible 

participants, and is not available for use in the current operations of 

CNCS. In addition, the majority of the funds received from individuals 

and organizations for deposit in the Gifts and Contributions fund are 

restricted for particular uses, such as service projects.

G. INVESTMENTS AND RELATED RECEIVABLES

By law, CNCS may invest the funds of the National Service Trust in 

interest-bearing Treasury securities guaranteed by the United States 

as to principal and interest. These Treasury securities are referred to as 

“market-based,” since they mirror actual Treasury securities sold on the 

open market. They consist of Treasury notes, bonds, bills and one-day 

certificates. 

Since they are expected to be held-to-maturity, CNCS’ investments 

are valued at cost and adjusted for the amortization of premiums and 

discounts. The premiums and discounts are recognized as adjustments 

to interest income, using the effective interest method. Interest 

receivable represents amounts earned, but not received on investments 

held at year-end. Prepaid interest is the amount of interest earned on 

a security since the date of its last interest payment, up to the date 

the security is purchased by CNCS. Such interest, if any, at year-end is 

included in the interest receivable balance. 
Financial Statements | PART II 49

The Corporation for National and Community Service

H. ADVANCES TO OTHERS

CNCS advances funds to non-federal entities, primarily in response 

to grantee drawdown requests, to facilitate their authorized service 

activities. The cash payments to grantees, in excess of amounts

appropriately expended under the terms of the grant agreements,

are accounted for as advances. At the end of the fiscal year, the total 

amount advanced to grantees is compared with the total Corporationfunded 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.

I. ACCOUNTS RECEIVABLE

Accounts receivable represents amounts due to CNCS primarily under 

federal and non-federal reimbursable agreements, grantee audit 

resolution determinations, and outstanding travel advances due from 

employees. An allowance for doubtful accounts is established for 

reporting purposes based on past experience.

J. PROPERTY AND EQUIPMENT

Property and Equipment is stated at full cost, including all costs 

related to acquisition, delivery, and installation, less accumulated 

depreciation (or amortization). Normal maintenance and repair costs 

on capitalized property and equipment are expensed when incurred. 

CNCS’ general policy is to capitalize Property and Equipment if the initial 

acquisition price is $50 thousand or more. Property and equipment with 

an estimated useful life that extends beyond the year of acquisition 

is capitalized at historical cost and is depreciated (or amortized) on a 

straight-line basis over estimated useful lives ranging from two to 10 

years, using the half-year convention. 

K. TRUST SERVICE AWARD LIABILITY

The Trust Service Award Liability represents unpaid earned, and 

expected to be earned, education awards and eligible student loan 

interest forbearance costs expected to be used. These amounts relate to 

participants who have completed service or are currently enrolled in the 

program and are expected to earn an award, based on CNCS’ historical 

experience. 

L. GRANTS PAYABLE

CNCS awards grants to nonprofit organizations, educational institutions, 

states, municipalities, and other external organizations. Grants become 

budgetary obligations, but not liabilities, at the time they are awarded. 

Although most grantees request funds prior to incurring expenses, 

some incur expenditures prior to initiating a request for disbursement, 

based on the nature of the expenditures. At the end of the fiscal year, 

CNCS computes and reports an estimate of the amount of unreimbursed 

grantee expenses as grants payable. This accrual is based on an analysis 

of the amounts actually disbursed to grantees in the third quarter. 

M. ACCOUNTS PAYABLE

CNCS records as liabilities all amounts that are likely to be paid as a 

direct result of a transaction or event that has already occurred. Accounts 

payable represents amounts due to external entities for goods and 

services received by CNCS, but not paid for at the end of the fiscal year.

N. 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 workrelated occupational disease, and beneficiaries of employees whose 

death is attributable to a job-related injury or occupational disease. 

Claims incurred for benefits for Corporation employees and members 

under FECA are determined and paid by the Department of Labor 

(DOL) and later billed to CNCS. CNCS’ actuarial liability for workers’ 

compensation includes costs incurred, but unbilled as of year-end, as 

calculated by DOL. CNCS reimburses DOL for FECA claims out of current 

appropriations upon receipt of a bill from DOL.

O. OTHER LIABILITIES

Other liabilities include amounts owed but not paid at the end of the 

fiscal year for payroll and benefits, VISTA stipends, the amount of claims 

for benefits for Corporation employees under FECA that have been paid 

by DOL and billed to CNCS but have not yet been reimbursed to DOL, 

and imputed costs for future retirement and health care benefits as 

determined by an Office of Personnel Management calculation.

P. 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.
Financial Statements | PART II 50

The Corporation for National and Community Service

Q. ADVANCES FROM OTHERS

Advances from others consist of advances from other federal agencies 

and the public related to interagency and cost share agreements into 

which CNCS entered to provide services. 

R. NET POSITION

Net Position represents Net Assets. It is comprised of CNCS’ unexpended 

appropriations and its cumulative results of operations. Unexpended 

appropriations reflect the balance of appropriated authority granted to 

CNCS against which no outlays have been made. Cumulative results of 

operations represent the net differences between revenues and expenses 

from the inception of CNCS. 

S. REVENUE RECOGNITION

Appropriated Capital Used. CNCS recognizes its use of appropriated 

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

or administrative expenses. Appropriations expended for property and 

equipment are recognized as used when the property is purchased. 

Appropriated capital not expended within five fiscal years after it 

became available for obligation is cancelled. Unpaid obligations 

recorded against cancelled appropriated capital are paid from currently 

available appropriated funds as payments become due. Appropriations 

received for CNCS’ Trust are recognized as revenue when received in the 

Trust Fund. Trust appropriations do not expire with the passage of time 

and are retained by CNCS in the Trust until used for eligible education 

service award purposes.

Interest on Investments. Interest income is recognized when earned. 

Treasury notes and bonds pay interest semi-annually, based on the 

stated rate of interest. Interest on Treasury bills is paid at maturity. 

Interest income is adjusted by amortization of premiums and discounts 

using the effective interest method. 

Revenue from Services Provided. CNCS also receives income from 

reimbursable service agreements that is recorded as revenue from 

services provided. Revenue from services provided is recognized when 

earned, i.e., goods have been delivered or services rendered.

Gifts and Donations. Revenue is recognized at the time gifts and 

donations are received and deposited in the Treasury to the credit of the 

Gifts and Contributions Fund. 

T. RETIREMENT BENEFITS

CNCS’ employees participate in either the Civil Service Retirement 

System (CSRS) or the Federal Employees Retirement System (FERS). 

FERS was established by the enactment of Public Law 99-335. 

Pursuant to this law, FERS and Social Security automatically cover most 

employees hired after December 31, 1983. Employees hired prior to 

January 1, 1984 elected to join FERS and Social Security or remained in 

the CSRS.

For employees covered by CSRS, CNCS contributes 7.0 percent of their 

basic pay. For those employees covered by FERS, CNCS contributes 11.2 

percent of their gross pay towards retirement. Employees are allowed 

to participate in the Federal Thrift Savings Plan (TSP). For employees 

under FERS, CNCS contributes an automatic one percent of basic pay to 

TSP and matches employee contributions up to an additional 4 percent 

of pay, for a maximum Corporation contribution amounting to 5 percent 

of pay. Employees under CSRS may participate in the TSP, but will not 

receive either CNCS’ automatic or matching contributions.

CNCS made retirement contributions of $305 and $403 thousand to the 

CSRS, and $10.3 and $9.6 million to FERS and TSP in fiscal years 2011 

and 2010, respectively.

U. INCOME TAXES

As a federal entity, CNCS is exempt from all income taxes imposed by 

any governing body, Federal, State, commonwealth, local, or foreign 

government.

V. USE OF ESTIMATES

The preparation of financial statements in accordance with GAAP 

requires CNCS to make estimates and assumptions about future events. 

These estimates and assumptions affect the amounts reported in 

CNCS’ financial statements and accompanying notes. CNCS evaluates 

its estimates and assumptions on an ongoing basis using historical 

experience and other factors that it believes to be reasonable under 

the circumstances. Adjustments to estimates and assumptions are 

made when facts and circumstances warrant. As future events and 

their effects cannot be determined with certainty, actual results could 

differ from the estimates used in preparing the accompanying financial 

statements. Significant estimates and assumptions are required as part 

of determining the liability for service awards, grants payable, and grant 

advances.

W. RECLASSIFICATIONS

Certain prior year amounts have been reclassified to conform to 

current year presentation and better reflect CNCS’ operations under 

its reauthorization. Specifically, a new program category, Innovation, 

Demonstration and Assistance Activities was added, primarily to reflect 
Financial Statements | PART II 51

The Corporation for National and Community Service

the prominence of the Social Innovation Funds program. In addition, 

pass through grants have been allocated to the Senior Corps program 

for which they are associated rather than reported separately and cost 

share revenue has been reclassified from “Other” to “Revenue from 

Services Provided.” The effects of the reclassifications on the FY 2010 

Statement of Operations and Changes in Net Position are included in 

note 18.

X. CONCENTRATION OF RISKS

Congress annually considers whether to fund CNCS’ program and 

operational activities. Should Congress opt not to enact appropriations 

to fund them, CNCS would be unable to continue operations. Corporation 

management believes the risk of such an occurrence is remote. However, 

for fiscal 2011 Congress did not fund the Learn & Serve America 

program and CNCS does not anticipate that additional funding will be 

enacted in the future. Grant activity previously funded under the Learn & 

Serve America program will continue through fiscal 2013.

CNCS also has established agreements with other federal entities and 

contracts with service providers to help it administer key business 

processes. Should these agreements be terminated without ample time 

to replace them, CNCS could experience significant difficulty in fulfilling 

its statutory responsibilities. These agreements are as follows:

• National Finance Center of the U.S. Department of Agriculture for 

payroll services;

• U.S. General Service Administration for the lease of buildings and 

automobiles;

• U.S. Department of Health and Human Services for grants processing 

and reporting services;

• CGI Group, Inc. for the maintenance of the system platform supporting 

accounting and procurement; and 

• SRA International, Inc. for information technology services.

Corporation management believes the risk of termination of these 

agreements is remote.
Financial Statements | PART II 52

The Corporation for National and Community Service

NOTE 2—Fund Balance with Treasury

U.S. Government cash is accounted for on an overall consolidated basis 

by the U.S. Department of Treasury. The Fund Balance with Treasury line 

on the Statement of Financial Position consists of the following:

Appropriated Funds—Appropriated funds are received through 

congressional appropriations to provide financing sources for CNCS’ 

programs on an annual, multi-year, and no-year basis. 

Trust Funds—Trust funds are accounts designated by law for receipts 

earmarked for specific purposes and for the expenditure of these

receipts. Funds from the National Service Trust may be expended for 

the purpose of providing an education award or student loan interest 

forbearance payment and are made directly to a qualified institution 

(college, university, or other approved educational institution, or a 

lending institution holding an existing student loan) as designated 

by the participant. The National Service Trust also pays awards under 

the President’s Freedom Scholarship, Summer of Service, and Silver 

Scholar programs. 

Gift Funds—Gift Funds are funds received from individuals and 

organizations as donations in furtherance of the purposes of national 

service laws.

Fund Balance with Treasury as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 941,944 $ - $ 941,944 

Trust Funds - 361 361 

Gift Funds - 565 565 

Total $ 941,944 $ 926 $ 942,870 

Fund Balance with Treasury as of September 30, 2010 (dollars in thousands)

Type Unrestricted Restricted Total

Appropriated Funds $ 997,549 $ - $ 997,549 

Trust Funds - 241 241

Gift Funds - 618 618

Total $ 997,549 $ 859 $ 998,408 
Financial Statements | PART II 53

The Corporation for National and Community Service

Status of Unexpended Balances as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 97,219 $ 13,771 $ 110,990 

 Unavailable - 50,197 50,197 

Obligated not yet Disbursed 844,725 542,619 1,387,344 

Total $ 941,944 $ 606,587 $ 1,548,531

Unexpended Balances as of September 30, 2010 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 997,549 $ 859 $ 998,408 

Investments - 565,195 565,195 

Total $ 997,549 $ 566,054 $ 1,563,603 

Status of Unexpended Balances as of September 30, 2010 (dollars in thousands)

Type Unrestricted Restricted Total

Unobligated:

 Available $ 96,444 $ 16,901 $ 113,345 

 Unavailable - 50,197 50,197 

Obligated not yet Disbursed 901,105 498,956 1,400,061 

Total $ 997,549 $ 566,054 $ 1,563,603 

Unexpended Balances as of September 30, 2011 (dollars in thousands)

Type Unrestricted Restricted Total

FBWT $ 941,944 $ 926 $ 942,870 

Investments - 605,661 605,661 

Total $ 941,944 $ 606,587 $ 1,548,531

NOTE 2—Fund Balance with Treasury—Continued
Financial Statements | PART II 54

The Corporation for National and Community Service

NOTE 3—National Service Trust Investments and Related Receivables 

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

Investments and Related Receivables as of September 30 (dollars in thousands)

2011 2010

Investments, Carrying Value $ 604,218 $ 563,453 

Investment and Interest Receivable 1,443 1,742 

Total $ 605,661 $ 565,195 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2011

(dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 426,846 $ 5,220 $ 432,066 

Bills 177,372 45 177,417 

Total $ 604,218 $ 5,265 $ 609,483 

Amortized Cost and Fair Value of Investment Securities as of September 30, 2010 

(dollars in thousands)

Unrealized 

Securities Amortized Cost Gains/(Losses) Fair Value

Notes $ 310,307 $ 4,736 $ 315,043

Bills 253,146 52 253,198

Total $ 563,453 $ 4,788 $ 568,241

At September 30, 2011, the notes held at year-end had an interest 

rate range of 0.375% to 4.875% and an outstanding maturity period 

of approximately 31 days to 4 years. The bills held at year-end had an 

interest rate range of 0.000% to 0.305% and were all due to mature 

within 159 days. The par values of these bills range from $.70 million to 

$42.13 million. The fair value of the bills and notes is based on bid and 

ask prices quoted by the Treasury as of September 30, 2011 and 2010. 

Since fiscal 2003, CNCS has set aside in reserve a portion of the funds in 

the National Service Trust for use in the event that its estimates used to 

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

This reserve was originally required by the Strengthen AmeriCorps Program 

Act, and is now required by section 149(b) of the National and Community 

Service Act (42 U.S.C. 12606(b)). As of September 30, 2011, $50.197 

million of CNCS’ investment account has been set aside for this reserve.
Financial Statements | PART II 55

The Corporation for National and Community Service

NOTE 3—Trust Investments and Related Receivables—Continued

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

NOTE 4—Accounts Receivables, Net 

NOTE 5—Property and Equipment, Net

Maturation of Securities Held as of September 30 (dollars in thousands)

2011 2010

Amortized Amortized

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

Due in 1 year or less $ 323,876 $ 324,250 $ 332,181 $ 332,378 

Due after 1 year up to 5 years 280,342 285,233 231,272 235,863 

Total $ 604,218 $ 609,483 $ 563,453 $ 568,241 

Accounts Receivable as of September 30 (dollars in thousands)

Appropriated Funds Trust Fund Total

2011

Accounts receivable $ 7,168 $ 653 $ 7,821 

Less: allowance for loss on receivables (204) (10) (214)

Accounts Receivable, Net $ 6,964 $ 643 $ 7,607 

2010

Accounts receivable $ 4,357 $ 214 $ 4,571 

Less: allowance for loss on receivables (788) - (788)

Accounts Receivable, Net $ 3,569 $ 214 $ 3,783 

General Property and Equipment as of September 30, 2011 (dollars in thousands)

Service Life Accumulated Net Book

Major Class (Years) Cost Depreciation Value

Equipment 3 - 10 $ 2,997 $ (2,071) $ 926 

ADP software 2 8,263 (8,263) -

Total $ 11,260 $ (10,334) $ 926 
Financial Statements | PART II 56

The Corporation for National and Community Service

NOTE 5—Property and Equipment, Net—Continued

NOTE 6—Trust Service Award Liability 

Individuals who successfully complete terms of service in AmeriCorps 

programs earn education awards, which can be used to make payments 

on qualified student loans or for educational expenses at qualified 

educational institutions. The awards, which are available to use 

for a period of up to seven years after the benefit has been earned, 

are paid from the National Service Trust. The National Service Trust 

also pays forbearance interest on qualified student loans during the 

period members perform community service, as well as awards under 

the Presidential Freedom Scholarship Program. The award liability 

components related to education awards and interest forbearance have 

been adjusted, based on historical experience, to reflect the fact that 

some eligible participants may not use these benefits. The Service Award 

was composed of the following as of September 30:

General Property and Equipment as of September 30, 2010 (dollars in thousands)

Service Life Accumulated Net Book

Major Class (Years) Cost Depreciation Value

Equipment 3 - 10 $ 2,997 $ (1,868) $ 1,129 

ADP software 2 8,263 (8,263) -

Total $ 11,260 $ (10,131) $ 1,129

Depreciation Expense for the Period Ending September 30 (dollars in thousands)

Major Class 2011 2010

Equipment $ 203 $ 206 

ADP software - 375 

Total $ 203 $ 581 

Service Award Liability as of September 30 (dollars in thousands)

2011 2010

Education awards $ 1,900,793 $ 1,712,184 

Interest forbearance 62,425 55,207 

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

Total estimated service award liability 1,985,745 1,789,918 

Less: cumulative awards paid 1,575,484 1,410,040 

Total $ 410,261 $ 379,878 
Financial Statements | PART II 57

The Corporation for National and Community Service

NOTE 6—Trust Service Award Liability —Continued

The net Service Award Liability as of September 30, 2011 increased by 

approximately $30.4 million from the net Service Award Liability as of 

September 30, 2010. This change was largely due to the increase in the 

value of an education award, new member enrollments and an increase 

in the number of members still serving during the year. Past CNCS 

appropriations made amounts from the National Service Trust available 

for $1,000 scholarships for high school students known as Presidential 

Freedom Scholarships. To fund each scholarship, a local community or 

corporate source matched the $500 portion of the scholarship provided 

by CNCS. The program was discontinued in fiscal 2007; however, 

because students have up to seven years to use the scholarship, some 

payments will continue to be made over the next several years. As of 

October 1, 2009, the National Service Trust is also available to pay 

Summer of Service and Silver Scholar educational awards. However, 

the Silver Scholar program has not been funded so there is no current 

liability for those educational awards. The Summer of Service program 

was only funded in FY 2010.

NOTE 7—Operating Leases

CNCS leases office space through the General Services Administration 

(GSA). GSA charges CNCS a Standard Level Users Charge that 

approximates commercial rental rates for similar properties. The NCCC 

also leases housing and other facilities for its campuses. Additionally, 

CNCS leases motor vehicles on an annual basis through GSA under

an Interagency Fleet Management Service agreement for the NCCC.

The leases are renewable with no purchase or escalation clause. The 

following schedule presents future minimum rental commitments under 

operating leases that have initial or remaining non-cancellable lease 

terms in excess of one year as of September 30.

Estimated Operating Lease Commitments as of September 30 (dollars in thousands)

2011 2010

 Fiscal Facilities Facilities

 Year Space Vehicles Other Total Space Vehicles Other Total 

 2011 $ - $ - $ - $ - $ 9,487 $ 861 $ 276 $ 10,624 

 2012 9,694 641 307 10,642 9,781 820 266 10,867 

 2013 9,994 548 285 10,827 10,083 852 261 11,196 

 2014 10,303 570 285 11,158 10,395 885 264 11,544 

 2015 10,621 593 276 11,490 10,717 919 266 11,902 

 2016 10,950 617 265 11,832 - - - - 

 Total $ 51,562 $ 2,969 $ 1,418 $ 55,949 $ 50,463 $ 4,337 $ 1,333 $ 56,133 

NOTE 8—Actuarial FECA Liability

CNCS’ actuarial liability for future workers’ compensation benefits under 

FECA was $9.092 and $12.092 million as of September 30, 2011 and 

2010, respectively. The amount includes the expected liability for death, 

disability, medical, and miscellaneous costs for approved compensation 

cases. As with all federal agencies CNCS’ FECA liability is determined 

by the Department of Labor. The actuarial liability is determined using 

a method that utilizes historical benefit payment patterns related to a 

specific incurred period to predict the ultimate payments related to that 

period. Consistent with past practice, these projected annual benefit 

payments have been discounted to present value using the Office of 

Management and Budget’s economic assumptions for 10-year Treasury 

notes and bonds.
Financial Statements | PART II 58

The Corporation for National and Community Service

NOTE 9—Net Positions

Net position consists of unexpended appropriations and cumulative results of operations. Component balances are separately maintained for the Gift 

Fund, Trust Fund and Appropriated Funds. 

CNCS is required to report information regarding its financial position 

according to three classes of net assets (net position): unrestricted, 

temporarily restricted and permanently restricted. CNCS has no 

permanently restricted assets. The following table presents CNCS’ 

unrestricted and temporarily restricted net assets.

Net Position by Fund Balance Component as of September 30, 2011 (dollars in thousands)

Gift Fund Trust Fund Appropriated Funds Total

Unexpended appropriations $ - $ - $ 876,087 $ 876,088 

Cumulative results of operations 591 196,404 (3,864) 193,131 

Total Net Position $ 591 $ 196,404 $ 872,223 $ 1,069,219 

Net Position by Fund Balance Component as of September 30, 2010 (dollars in thousands)

Gift Fund Trust Fund Appropriated Funds Total

Unexpended appropriations $ - $ - $ 935,080 $ 935,080 

Cumulative results of operations 571 185,772 (8,807) 177,536 

Total Net Position $ 571 $ 185,772 $ 926,273 $ 1,112,616 

Restrictions on Net Position as of September 30, 2011 (dollars in thousands)

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 872,224 $ - $ 872,224 

Trust Funds - 196,404 196,404 

Gift Funds - 591 591

Total Net Position $ 872,224 $ 196,995 $ 1,069,219 

Restrictions on Net Position as of September 30, 2010 (dollars in thousands)

 Restated

Unrestricted Temporarily Restricted Total

Appropriated Funds $ 926,273 $ - $ 926,273 

Trust Funds - 185,772 185,772 

Gift Funds - 571 571

Total Net Position $ 926,273 $ 186,343 $ 1,112,616 
Financial Statements | PART II 59

The Corporation for National and Community Service

NOTE 10—Appropriations Received by the National 

Service Trust

For fiscal year 2011, the National Service Trust received $199.260 

million under the Department of Defense and Full-Year Continuing 

Appropriations Act, 2011 (Public Law 112-10). For fiscal year 2010, 

the National Service Trust received $197.000 million under the 

Consolidated Appropriations Act, 2010 (Public Law 111-117). The acts 

also authorized CNCS to transfer additional amounts from subtitle C 

program funds to the National Service Trust to support the activities 

of national service participants. CNCS transferred $1.940 million and 

$2.659 million to the Trust under this provision in fiscal year 2011 and 

2010, respectively.

NOTE 11—Expenses

Using an appropriate cost accounting methodology, CNCS’ expenses 

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

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

AmeriCorps engages members in intense, impact-oriented service to 

address local community needs in areas of education, healthy futures, 

environmental stewardship, economic opportunity, disaster services, 

and assisting veterans and military families. AmeriCorps includes the 

State, National, Tribes, and Territories (State/National); National Civilian 

Community Corps (NCCC); and Volunteers In Service To America (VISTA) 

programs. The State/National sub-program includes grant expenses, as 

well as direct and allocated personnel and administrative costs including 

AmeriCorps recruitment and National Service Trust operations. The 

NCCC sub-program includes member stipend and benefits, and direct 

and allocated personnel and administrative costs including AmeriCorps 

recruitment and National Service Trust operations. The VISTA subprogram includes grant expenses, member stipend and benefits, as well 

as direct and allocated personnel and administrative costs including 

AmeriCorps recruitment and National Service Trust operations. 

Senior Corps programs provide opportunities for members 55 and 

older to address local community needs in the areas of education, 

assisting veterans and military families, disaster response, and healthy 

futures. Senior Corps includes the Foster Grandparent Program (FGP); 

Senior Companion Program (SCP); and the 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. CNCS also has reimbursable agreements 

with several state agencies whereby CNCS awards and administers 

grants to a list of grantees selected and funded by the State (passthrough grants). The activity related to pass-through grants has been 

reclassified to be associated with the related Senior Corps program.

Learn and Serve America includes grant expenses, as well as direct 

and allocated personnel and administrative costs, for the Learn and 

Serve America Program, the President’s Student Service Challenge, and 

National Service Leader Schools. The Learn & Serve program was not 

funded in FY 2011; however, there will be on-going activity through 

FY 2013 as the program winds down.

The National Service Award Expense component consists of CNCS’ 

estimated expense for education awards based on the increase in its 

service award liability during the year and interest forbearance costs on 

qualified student loans during the period members perform community 

service. No indirect costs have been allocated to the National Service 

Award expense component. 

Innovation, Demonstration, & Assistance Activities (ID&A Activities) 

include grants to support and encourage new forms of service and 

volunteering. The most significant program is the Social Innovation 

Fund (SIF). The primary objective of the SIF is to improve the lives of 

people in low-income communities by mobilizing public and private 

resources to grow innovative nonprofit organizations that have evidence 

of compelling impact in the areas of economic opportunity, youth 

development, and healthy futures. No indirect costs have been allocated 

to the Innovation, Demonstration, & Assistance Activities component. 

The Office of Inspector General (OIG) receives a separate appropriation. 

No indirect costs have been allocated to OIG. 
Financial Statements | PART II 60

The Corporation for National and Community Service

NOTE 11—Expenses—Continued

Components of Grant Funds Expended for the Period Ended September 30 

(dollars in thousands)

 2010

2011 Restated 

Domestic Volunteer Service Act Programs $ 249,235 $ 241,732 

National and Community Service Act Programs 434,821 401,622 

Total Grant Funds Expended $ 684,056 $ 643,354 

Expenses by Major Responsibility Segment for the Period Ended September 30

(dollars in thousands) 

 2010

2011 Restated 

AmeriCorps

 State and National $ 633,975 $ 598,513 

 NCCC 35,826 42,723 

 VISTA 138,159 167,426 

 Subtotal $ 807,960 $ 808,662 

National Senior Service Corps 

 Retired and Senior Volunteer Program 67,130 65,509 

 Foster Grandparent Program 118,900 120,738 

 Senior Companion Program $ 51,318 $ 49,567 

 Subtotal 237,348 235,814 

Learn and Serve America 33,261 37,539 

Innovation, Demonstration, Assistance Activities 11,464 17,888

Offi ce of Inspector General (OIG) 8,001 7,292 

Total Expenses $ 1,098,034 $ 1,107,195 
Financial Statements | PART II 61

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2011 (dollars in thousands)

AmeriCorps National Senior Service Corps 

Type State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total 

Grant and Related Expense

Grant funds expended $ 396,174 $ - $ 36,465 $ 59,244 $ 107,643 $ 45,883 $ 27,563 $ 11,084 $ - $ 684,056 

VISTA and NCCC stipends and benefits - 8,137 57,363 - - - - - - 65,500

Service award expense 173,300 4,339 17,601 - - - 577 - - 195,817 

Total Grant and Related Expense 569,474 12,476 111,429 59,244 107,643 45,883 28,140 11,084 - 945,373

Administrative Expense 

Federal employee salaries and benefits 31,974 9,664 7,491 2,754 5,031 2,147 2,794 - 4,887 66,742 

Travel and transportation 1,166 3,516 1,584 505 887 387 85 - 318 8,448 

Rent, communications, and utilities 4,548 3,616 948 407 745 318 182 - 403 11,167 

Program analysis and evaluation 1,735 449 629 266 479 206 382 - - 4,146 

Printing and reproduction 164 91 81 107 35 60 7 - - 545

Other services and expenses 24,511 4,759 15,862 3,810 4,012 2,288 1,647 380 2,209 59,478

Supplies and materials 407 1,255 136 37 68 29 24 - 184 2,140

Depreciation, amortization, and loss on 129 2 20 13 24 10 6 - - 204

disposition of assets 

Bad debt (133) (2) (21) (13) (24) (10) (6) - - ( 209) 

Total Administrative Expense 64,501 23,350 26,730 7,886 11,257 5,435 5,121 380 8,001 152,661

Total Expenses by Type $ 633,975 $ 35,826 $ 138,159 $ 67,130 $ 118,900 $ 51,318 $ 33,261 $ 11,464 $ 8,001 $ 1,098,034
Financial Statements | PART II 62

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Financial Statements | PART II 63

The Corporation for National and Community Service

Expenses by Type and Sub-Program for the Period Ended September 30, 2011 (dollars in thousands)

AmeriCorps National Senior Service Corps 

Restated State/National NCCC VISTA RSVP FGP SCP Learn & Serve ID&A Activities OIG Total 

Grant and Related Expense

Grant funds expended $ 352,356 $ - $ 27,636 $ 58,906 $ 110,326 $ 44,864 $ 31,412 $ 17,854 $ - $ 643,354

VISTA and NCCC stipends and benefits - 7,630 94,224 - - - - - - 101,854

Service award expense 190,499 4,685 22,209 - - - 374 - - 217,767

Total Grant and Related Expense 542,855 12,315 144,069 58,906 110,326 44,864 31,786 17,854 - 962,975

Administrative Expense 

Federal employee salaries and benefits 33,360 10,554 6,690 2,743 5,211 2,165 3,475 - 4,053 68,251 

Travel and transportation 1,115 3,186 3,225 787 1,439 621 108 - 197 10,678 

Rent, communications, and utilities 4,527 6,238 1,011 406 773 321 263 - 383 13,922 

Program analysis and evaluation 927 797 797 252 466 195 584 - - 4,018

Printing and reproduction 131 101 65 28 35 14 11 - 1 386

Other services and expenses 14,920 7,630 11,437 2,321 2,362 1,335 1,266 34 2,580 43,885 

Supplies and materials 262 1,879 71 25 46 19 18 - 78 2,398

Depreciation, amortization, and loss on 354 20 52 35 68 28 24 - - 581

disposition of assets 

Bad debt 62 3 9 6 12 5 4 - - 101

Total Administrative Expense 55,658 30,408 23,357 6,603 10,412 4,703 5,753 34 7,292 144,220

Total Expenses by Type $ 598,513 $ 42,723 $ 167,426 $ 65,509 $ 120,738 $ 49,567 $ 37,539 $ 17,888 $ 7,292 $ 1,107,195
Financial Statements | PART II 64

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Financial Statements | PART II 65

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NOTE 12—National Service Award Expense

Members serving in approved national service positions are eligible 

to earn a service award to pay for qualified education expenses. The 

National Service Trust also pays interest forbearance costs on qualified 

student loans during the period members perform community service. 

CNCS estimates the expense for national service awards based on the 

increase in its cumulative service award liability during the year (see 

Note 6). The total service award liability as of September 30, 2011 and 

2010, respectively, has been adjusted to reflect the fact that earned 

awards are not always used. 

NOTE 13—Change in Unexpected Appropriations, Net 

Unexpended Appropriations, Net as of September 30 (dollars in thousands)

 2010

 2011 Restated

Unexpended Appropriations, Beginning Balance $ 935,080 $ 890,956 

Increases:

Appropriations Received, Net of Trust 1,077,733 1,149,721 

Decreases:

Appropriated Capital Used (883,872) (876,568)

Appropriations Transferred to Trust Fund (net of rescissions) (199,260) (197,000)

Program Funds Transferred to Trust (1,940) (2,659)

Rescissions and Cancellations (51,653) (29,370)

Total Decreases (1,136,725) (1,105,597)

Change in Unexpended Appropriations (58,992) 44,124 

 

Unexpended Appropriations, Ending Balance $ 876,088 $ 935,080 

National Service Award Expense for the Period Ended September 30 (dollars in thousands)

2011 2010

Estimated education awards $ 188,599 $ 210,769 

Estimated interest forbearance 7,218 6,998 

National Service Award Expense $ 195,817 $ 217,767 
Financial Statements | PART II 66

The Corporation for National and Community Service

NOTE 14—Contingencies

CNCS is a party to various routine administrative proceedings, legal 

actions, and claims brought by or against it, including threatened 

or pending litigation involving labor relations claims, some of which 

may ultimately result in settlements or decisions against CNCS. In 

the opinion of CNCS’ management and legal counsel, there are no 

proceedings, actions, or claims outstanding or threatened that would 

materially impact the financial statements of CNCS.

Certain legal matters to which CNCS is a party may be administered 

and, in some instances, litigated and paid by other federal agencies. 

Generally, amounts paid in excess of $2.5 thousand for Federal Tort 

Claims Act settlements or awards pertaining to these litigations are 

funded from the Treasury Judgment Fund (TJF). Although the ultimate 

disposition of any potential TJF proceedings cannot be determined, 

management does not expect that any liability or expense that might 

ensue would be material to CNCS’ financial statements.

NOTE 15—Subsequent Events

CNCS has evaluated subsequent events through November 15, 2011,

which is the date these financial statements were available to be issued. 

As a consequence of its evaluation, CNCS has determined that no

subsequent events need to be recognized or disclosed.

NOTE 16—Undelivered Orders at Fiscal Year-End

CNCS’ undelivered orders at September 30, 2011 and 2010 were 

$921,674 and $791,757 thousand, respectively.

NOTE 17—Apportionment Categories of Incurred 

Obligations

An apportionment is a distribution by OMB of amounts available for 

obligation. OMB apportions Corporation funds on both a quarterly and 

annual basis. Obligations incurred during FY 2011 and 2010 were:

NOTE 18 – Restatements

CNCS restated its audited FY 2010 Consolidated Statements of Financial 

Position, Operations and Changes in Net Position, and Cash Flows to 

correct an overstatement of its estimated accrued grant expense. The 

restatements had no effect on the FY 2010 Combined Statement of 

Budgetary Resources.

The cause of the restatements was an erroneous calculation of 

estimated accrued grant expense prepared by the Department of Health 

and Human Services’ Payment Management Division (HHS). Under an

interagency agreement between CNCS and HHS, HHS manages CNCS’ 

grant payment activity and related Treasury reporting. Each quarter HHS 

provides CNCS with a grant accrual estimate to account for expenses 

not yet reported to HHS by CNCS’ grantees. At the end of the subsequent 

quarter, HHS provides the actual grant expense (to replace the previous 

estimate) and provides a new quarterly estimate. The estimate for the 

final quarter is used in CNCS’ annual financial statements to report the 

accrued cost of its grant programs at the close of the fiscal year. CNCS 

uses detailed transaction activity provided by HHS through an electronic 

interface to reflect actual grant activity on a daily basis for operational 

and program monitoring purposes.

HHS bases its estimate on historical cash drawdown and expense data. 

To provide CNCS with assurance that this data is reliable, HHS’ Office 

of Inspector General (OIG) conducts a SAS 70 audit of HHS’ operations 

and provides the results to CNCS on an annual basis. HHS OIG’s FY 2010 

audit report disclosed no issue with the grant expense accrual process 

used by HHS and therefore could be relied on by CNCS when assessing 

the estimate for FY 2010.

In preparing the FY 2010 year-end financial statements, the adjustment 

provided by HHS was reviewed by CNCS and deemed to be a reasonable 

estimate. An increase in the end of year quarterly grant accrual 

Consolidated Obligations Incurred through September 30 (dollars in thousands)

Fiscal Year Direct Reimbursable Total 

2011 $ 1,288,240 $ 11,081 $ 1,299,321

2010 $ 1,403,065 $ 10,459 $ 1,413,524
Financial Statements | PART II 67

The Corporation for National and Community Service

NOTE 18 – Restatements—Continued

estimate was expected because of a higher grant budget for the year 

(CNCS’ FY 2010 budget increased by $229.9 million over FY 2009) 

and the effects of Recovery Act activity (CNCS received $200 million 

in FY 2009 / FY 2010 Recovery Act funds). However, in January 2011 

while reviewing the grant accrual estimate for the first quarter of 2011 

CNCS noted that the estimate remained unexpectedly high. Corporation 

accounting staff contacted HHS to inquire about the high estimate. In 

June HHS acknowledged that its estimate was incorrect (because of a 

computational error). In July, HHS revised its grant expense estimate 

when it provided the data for the quarter ended June 30, 2011. During 

its year-end financial audit process CNCS determined that because the 

effect was material to the FY 2010 financial statements the revised 

HHS estimate should be treated as a correction of an error rather than 

a change in estimate. While the effect of this change on the Net of 

Revenue over Expenses on the Statement of Operations is zero, the 

adjustment has a material effect on several line items. As a result CNCS 

has restated its FY 2010 Consolidated Statements of Financial Position, 

Operations and Changes in Net Position, and Cash Flows, and the

related footnotes as shown below. 

4 On June 15, 2011, Statement on Standards for Attestation Engagements No. 16 (SSAE 16) effectively replaced the SAS-70 as the authoritative guidance 

for reporting on service organizations.

Consolidated Statement of Financial Position as of September 30, 2010 (dollars in thousands)

Financial Statement Line Item Previously Reported Restatements Restated 

Advances to Others $ 32,164 $ 50,476 $ 82,640 

Total Assets 1,600,679 50,476 1,651,155

Grants Payable 252,892 (127,214) 125,678 

 Total Liabilities 665,753 (127,214) 538,539 

Net Position 934,926 177,690 1,112,616 

Total Liabilities and Net Position 1,600,679 50,476 1,651,155 
Financial Statements | PART II 68

The Corporation for National and Community Service

NOTE 18 – Restatements—Continued

The table below also shows the effects of certain reclassifications to the FY 2010 statements to breakout Innovation, Demonstration and Assistance 

Activities and to allocate pass-thru grants to the Senior Corps program for which they are associated.

Consolidated Statement of Operations and Changes in Net Position 

for the Period ended September 30, 2010 (dollars in thousands)

Financial Statement Line Item Previously Reported Restatements Reclassification Restated

 

 Revenue – Appropriated Capital Used $ 1,054,258 $ (177,690) $ - $ 876,568 

 Revenue from Services Provided 2,486 - 8,788 11,274 

 Other Revenue 9,778 - (8,788) 990 

 Total Revenue 1,273,469 (177,690) - 1,095,779 

 

 Expenses – AmeriCorps 943,938 (123,625) (11,651) 808,662 

Expenses – Senior Corps 280,157 (38,920) (5,423) 235,814 

 Expenses – Learn & Serve America 53,316 (15,145) (632) 37,539

 Expenses – Innovation, Demonstration and Assistance - - 17,888 17,888 

 Expenses – Pass Thru Grants 182 - (182) - 

 Total Expense $ 1,284,885 $ (177,690) $ - $ 1,107,195

 

Net of Revenue Over Expense (11,416) - - (11,416) 

Increase (Decrease) In Unexpended Appropriations Net (133,566) 177,690 - 44,124 

Increase (Decrease) in Net Position (144,982) 177,690 - 32,708 

Net Position, Ending Balance $ 934,926 $ 177,690 - $ 1,112,616 

Consolidated Statement of Cash Flow for the Period 

ended September 30, 2010 (dollars in thousands)

Financial Statement Line Item Previously Reported Restatements Restated 

 Appropriated Capital Used ($ 1,054,258) $ 177,690 $ (876,568)

 Decrease (Increase) in Advances to Others $ 35,357 $ (50,476) $ (15,119)

 Increase (Decrease) in Grants Payable $ 147,808 $ (127,214) $ 20,594 
Independent Auditor’s Report | Part III 69

The Corporation for National and Community Service

Office of Inspector General

Audit of the

Corporation for National and

Community Service’s

Fiscal Year 2011 Financial Statements

Audit Report Number 12- 01

Prepared by:

Kearney & Company

1701 Duke Street, Suite 500

Alexandria, Virginia 22314

This report was issued to Corporation management on November 15, 2011. 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 16, 2012, and complete its corrective actions by November 15, 2012. Consequently, the reported findings do not necessarily represent the final resolution of the issues presented.
Independent Auditor’s Report | Part III 70

The Corporation for National and Community Service
Independent Auditor’s Report | Part III 71

The Corporation for National and Community Service

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

REPORT OF INDEPENDENT AUDITORS 

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service 

We have audited the accompanying consolidated statements of financial position of the 

Corporation for National and Community Service (the Corporation) as of September 30, 2011 

and 2010, and the related consolidated statements of operations and changes in net position, the 

consolidated statements of cash flows, and the combined statements of budgetary resources 

(SBR) (hereinafter referred to as the “financial statements”) for the years then ended. These 

financial statements are the responsibility of the Corporation’s 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; 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. Those standards require that we plan and perform the audits 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. 

A 2004 Executive Order, entitled “National and Community Service Programs” (E.O. 13331), 

requires a statement of assurance in the Corporation’s Management Representation Letter by the 

Chief Executive Officer and Chief Financial Officer, that its financial statements, including the 

SBR, are accurate and reliable. The Corporation has interpreted this requirement to include 

presenting the SBR as a principal financial statement. The Corporation’s SBR is prepared in 

accordance with accounting principles generally accepted in the United States of America. 

As discussed in the Independent Auditor’s Report on Internal Control and Note 18, 

Restatements, to the fiscal year (FY) 2011 financial statements, the Corporation restated its FY 

2010 financial statements to correct errors identified during the FY 2011 financial statement 

audit related to an overstatement of its accrued grant expense and the effect of the overstatement 

on the ending balances reported for advances, grants payable, and other related accounts. 

Accordingly, our November 15, 2010 audit report on the FY 2010 consolidated statement of 

financial position, the consolidated statement of operations and changes in net position, and the 

consolidated statement of cash flows, is replaced by the report on the restated financial 

statements, as presented herein. 
Independent Auditor’s Report | Part III 72

The Corporation for National and Community Service

In our opinion, the financial statements referred to above, including the accompanying notes, 

present fairly, in all material respects, the financial position of the Corporation as of September 

30, 2011 and 2010, and its net cost of operations, changes in net position, cash flows, and 

changes in budgetary resources for the years then ended, in conformity with accounting 

principles generally accepted in the United States of America. 

Our audits were conducted for the purpose of forming an opinion on the basic financial 

statements taken as a whole. The accompanying “Management’s Discussion and Analysis” and 

“Other Accompanying Information” are not required parts of the basic financial statements. 

Rather, they are considered supplementary information required by OMB Circular A-136, 

Financial Reporting Requirements. This supplementary information is the responsibility of the 

Corporation’s management. We have applied certain limited procedures, which consisted 

principally of inquiries of management regarding the methods of measurement and presentation 

of the supplementary information and comparing this information for consistency with the 

financial statements; however, such information was not subjected to the procedures applied in 

our audits of the basic financial statements. Accordingly, we do not express an opinion on this 

information. 

In accordance with Government Auditing Standards and OMB Bulletin No. 07-04, as amended, 

we have also issued reports, dated November 15, 2011, on our consideration of the Corporation’s 

internal control over financial reporting and compliance, and on our tests of the Corporation’s 

compliance with certain provisions of laws, regulations, and other matters for the year ended 

September 30, 2011. The purpose of those reports is to describe the scope of our testing of 

internal control over financial reporting and compliance as well as the results of that testing, and 

not to provide an opinion on the internal control over financial reporting or on compliance and 

other matters. Those reports are an integral part of an audit performed in accordance with 

Government Auditing Standards and OMB Bulletin No. 07-04, as amended, and should be 

considered in assessing the results of our audits. 

Alexandria, Virginia 

November 15, 2011 
Independent Auditor’s Report | Part III 73

The Corporation for National and Community Service

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

REPORT ON COMPLIANCE AND OTHER MATTERS

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service

We have audited the consolidated financial statements of the Corporation for National and 

Community Service (the Corporation) as of and for the year ended September 30, 2011, and 

have issued our report dated November 15, 2011. 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 No. 07-

04, Audit Requirements for Federal Financial Statements, as amended. The management of the 

Corporation is responsible for compliance with laws and regulations. 

As part of obtaining reasonable assurance about whether the Corporation’s financial 

statements are free of material misstatement, we performed tests of the Corporation’s 

compliance with certain provisions of laws and regulations, noncompliance 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 No. 07-04, as amended. We 

limited our tests of compliance to these provisions; and we did not test compliance with all 

laws and regulations applicable to the Corporation. Providing an opinion on compliance with 

those provisions was not an objective of our audit and accordingly, we do not express such an 

opinion. 

The results of our tests of compliance described in the preceding paragraph disclosed no 

instances of noncompliance or other matters that are required to be reported under 

Government Auditing Standards and OMB Bulletin No. 07-04, as amended. 

* * * * * * * * * 

This report is intended solely for the information and use of the Corporation’s management, 

those charged with governance and others within the Corporation, the Corporation’s Office of 

Inspector General, the Government Accountability Office, OMB, the U.S. Department of the 

Treasury, and Congress, and is not intended to be and should not be used by anyone other than

these specified parties.

Alexandria, Virginia 

November 15, 2011 
Independent Auditor’s Report | Part III 74

The Corporation for National and Community Service

1701 Duke Street, Suite 500, Alexandria, VA 22314

PH: 703.931.5600, FX: 703.931.3655, www.kearneyco.com

REPORT ON INTERNAL CONTROL

To the Board of Directors and Inspector General of the Corporation for National and Community 

Service 

We have audited the consolidated financial statements of the Corporation for National and 

Community Service (the Corporation) as of and for the year ended September 30, 2011, and have 

issued our report dated November 15, 2011. 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 No. 07-04, 

Audit Requirements for Federal Financial Statements, as amended. The management of the 

Corporation is responsible for establishing, maintaining, and assessing internal control to provide 

reasonable assurance that the broad control objectives of the Federal Managers’ Financial 

Integrity Act of 1982 (FMFIA) are met. 

In planning and performing our work, we considered the Corporation’s internal control over 

financial reporting and compliance by obtaining an understanding of the design effectiveness of 

the Corporation’s internal control, determining whether controls had been placed in operation, 

assessing control risk, and performing tests of the Corporation’s controls as a basis for designing 

our auditing procedures for the purpose of expressing our opinion on the financial statements and 

not to provide an opinion on the internal controls. Accordingly, we do not express an opinion on 

the effectiveness of the Corporation’s internal control over financial reporting and compliance or 

on management’s assertion on internal control included in Management’s Discussion and 

Analysis. 

We limited our internal control testing to those controls necessary to achieve the OMB Bulletin 

No. 07-04, as amended, control objectives that provide reasonable, but not absolute assurance, 

that: (1) transactions are properly recorded, processed, and summarized to permit the preparation 

of the financial statements in accordance with accounting principles generally accepted in the 

United States of America (GAAP), and assets are safeguarded against loss from unauthorized 

acquisition, use, or disposition; and (2) transactions are executed in compliance with laws 

governing the use of budget authority, Government-wide policies and laws identified in 

Appendix E of OMB Bulletin No. 07-04, as amended, and other laws and regulations that could 

have a direct and material effect on the financial statements. We did not test all internal controls 

relevant to operating objectives, as broadly defined by the FMFIA, such as those controls 

relevant to ensuring efficient operations. 

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraphs and was not designed to identify all deficiencies in internal 

control that might be significant deficiencies or material weaknesses; therefore, there can be no 

assurance that all deficiencies, significant deficiencies, or material weaknesses have been 
Independent Auditor’s Report | Part III 75

The Corporation for National and Community Service

identified. However, as discussed below, we identified one deficiency in internal control that we 

consider to be a material weakness. 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect and correct misstatements on a timely basis. A material weakness is a 

deficiency, or combination of deficiencies, in internal control, such that there is a reasonable 

possibility that a material misstatement of the entity’s financial statements will not be prevented 

or detected and corrected on a timely basis. 

We consider the following deficiency in the Corporation’s internal control to be a material 

weakness. 

Material Weakness

Grant Accrual Estimate 

The Corporation did not have adequate internal controls in place to ensure that the grant accrual 

was reasonably estimated. The Corporation uses the Department of Health and Human Services’ 

(HHS) Payment Management System to provide grant funds to grantees under a contractual 

arrangement. The Corporation receives the actual quarter’s advances on the HHS Grant Accrual 

Spreadsheet Report and uses this amount to record accrued grant expenses at the end of each 

quarter. In fiscal year (FY) 2011, a mathematical error was identified in the HHS Grant Accrual 

Spreadsheet Reports that affected the December 2009 through March 2011 balances, which were 

used to estimate the grant accrual amount. The error originated at HHS and was subsequently 

transmitted to the Corporation in the HHS Grant Accrual Spreadsheet Reports. 

The Corporation’s management review procedures did not identify this error prior to the issuance 

of the FY 2010 financial statements. As a result of the error, Total Expenses were overstated by 

$177.7 million and Net Position was understated by $177.7 million; and Grants Payable and 

Advances to Others were overstated and understated by $127.2 million and $50.5 million, 

respectively, in the Corporation’s FY 2010 financial statements. 

Note 18, Restatements, to the FY 2011 financial statements discloses the full effect of the 

restatement on the Corporation’s FY 2010 consolidated statement of financial position, 

consolidated statement of operations and changes in net position, and consolidated statement of 

cash flows. 

 

During the audit, we noted other matters involving internal control and its operations over 

financial reporting, which will be reported to the Corporation’s management in a separate letter. 
Independent Auditor’s Report | Part III 76

The Corporation for National and Community Service

STATUS OF PRIOR YEAR FINDINGS 

We noted issues related to the Corporation’s internal control over financial reporting, which we 

included in the Report on Internal Control included in the audit report on the Corporation’s FY 

2010 financial statements1. The table below summarizes the current year status of these issues. 

Prior Year Significant Internal Control Deficiencies 

Control Deficiency FY 2010 Status FY 2011 Status

Information Technology Significant Deficiency Management Letter

Fund Balance with Treasury Significant Deficiency Closed 

* * * * * * * * * 

This report is intended solely for the information and use of the Corporation’s management, 

those charged with governance and others within the Corporation, the Corporation’s Office of 

Inspector General, the Government Accountability Office, OMB, the U.S. Department of the 

Treasury, and Congress, and is not intended to be and should not be used by anyone other than

these specified parties.

Alexandria, Virginia 

November 15, 2011 

 

1 Independent Auditor’s Report on Internal Control, November 2010 
Independent Auditor’s Report | Part III 77

The Corporation for National and Community Service

MEMORANDUM

DATE: November 14, 2011

TO: Robert Walters, Assistant Inspector General

FROM: William Anderson, Chief Financial Offi cer

SUBJECT: Draft Report on the Corporation’s FY 2011 Financial Statements

Thank you for the opportunity to respond to the draft report on the results of your audit of the Corporation for National and Community Service’s FY 

2011 fi nancial statements. I am pleased that we can report that in FY 2011 CNCS maintained its record of strong fi scal stewardship for the American 

people. CNCS received an unqualifi ed “clean” opinion on its consolidated fi nancial statements for the twelfth consecutive year. The audit also found 

no instance of noncompliance with laws and regulations. 

I am also pleased that the two signifi cant defi ciencies in internal control contained in the FY 2010 report have been corrected. However, a new 

material weakness in fi nancial reporting related to the restatement of the CNCS’ FY 2010 fi nancial statements was included this year. As noted in 

the Annual Financial Report, CNCS disagrees that this was a material weakness in FY 2011 but will reduce its reliance on service provider audit 

reports as an internal control and has implemented enhanced review procedures to prevent a reoccurrence of the issue. Overall, I believe these 

results refl ect CNCS’ commitment to sound fi nancial management and the hard work by staff over the past year to continuously improve fi nancial 

operations.

1201 New York Avenue, NW • Washington, DC 20525

202-606-5000 • www.nationalservice.org 

Senior Corps • AmeriCorps • Learn and Serve America
Other Accompanying Information | PART IV 78

The Corporation for National and Community Service

Other Accompanying Information
Other Accompanying Information | PART IV 79

The Corporation for National and Community Service

Donations and Contributions

Under CNCS’ authorizing legislation, donated funds may be accepted 

and used in furtherance of the purposes of the national service laws 

(42 USC 12651g(a)(2)(A)). The law allows CNCS to “solicit, accept, 

hold, administer, use, and dispose of, in furtherance of the purpose 

of the national service laws, donations of any money or property, real, 

personal, or mixed, tangible or intangible, received by gift, devise, 

bequest or otherwise.” The legislation also requires that CNCS report to 

the Congress on the nature and the amount of donations, as well as on 

how they were used and disposed of (in the case of donated property) 

in support of its programs and activities. This report fulfills these 

requirements for FY 2011.

CNCS also utilizes Pay.gov, a Treasury program that allows federal 

agencies to conduct transactions online. Under the Pay.gov program, 

CNCS collects donations by credit card or direct debit from donors. 

Pay.gov facilitates the process of collecting gift funds from donors 

online through a secure website with real-time identification verification 

and provides the reporting necessary for processing transactions. 

The following schedules show the Gift Fund balances available as 

of September 30, 2011, to fund authorized activities as well as the 

receipts and expenses paid from the Gift Fund in FY 2011 and FY 2010, 

respectively.

Status of Gift Fund Balance at September 30, 2011

Obligation &

Fund Balance With Treasury Commitments Funds Available

Best Buy $ 22 $ (22) $ -

Home Depot 158,606 - 158,606

Ralph Lauren Polo Foundation 54,721 (311) 54,410

Walt Disney Company 60,521 30 60,551

Kellogg Foundation 55,087 (26,430) 28,657

Disaster Relief Fund 16,622 (4,840) 11,782

Motorola Foundation 100 - 100 

Shell Oil Co. 173 (173) -

Microsoft 6,315 - 6,315

Target 48 (48) -

American Express 25,000 - 25,000

IBEW Union 984 (984) -

Citi Corp 381 (381) -

White House Council 98,779 (127) 98,652

Miscellaneous Check Donations 26,711 (10,622) 16,089

Miscellaneous Electronic Donations 60,718 (6,534) 54,184

Total $ 564,788 $ (50,442) $ 514,346
Other Accompanying Information | PART IV 80

The Corporation for National and Community Service

Supplemental Information on the Source and Use Of Donationsi

2011 2010

Donor Use of Funds Received Used Received Used

Best Buy Grants for the Martin Luther King $ - $ 3,231 $ - $ 2,703

Day of Service

Ralph Lauren Polo Support for NCCC program activities - 772 - 1,285

Foundation

Shell Oil Co. Support for the Martin Luther King Day of Service - 3,518 - 21,483

Kellogg Foundation AmeriCorps volunteer mobilization - 1,969 - 321,283

IBEW Union CNCS Board of Directors Support - 1,585 - 2,820

Motorola Foundation National Conference 15,100 15,427 50,000 49,573

Microsoft Student Driven Virtual Help Desk - 77,815 238,000 252,185

Target Summer of Service - 6,830 - 19,708

Citi Corp Foundation United We Serve/Cities of Service - - 50,000 50,000

American Express United We Serve 190,000 190,000 25,000 -

Rockefeller Foundation White House Council on 100,000 1,221 - -

Community Solutions 

 

Small Individual Donations Restricted to

Disaster Relief 889 - 1,122 -

Senior Corps 15 - 44 -

AmeriCorps (Miscellaneous) 23,071 7,500 1,070 -

AmeriCorps NCCC 110 651 250 1,810

Learn & Serve America 25 - 10,150 -

AmeriCorps Vista 30 - 350 -

Service Learning Toolkit Promotion - - - 690

General/Miscellaneous Support 441 7,507 2,074 2,000

Total $ 329,681 $ 318,026 $ 378,060 $ 725,540

i Funds reported as used during the fiscal year in the schedule may be from amounts donated in a previous year(s). In addition, the expenses above only include the amount 

accrued during the fiscal year and do not reflect amounts that have been obligated but not yet expensed.
Other Accompanying Information | PART IV 81

The Corporation for National and Community Service

National Service Trust Fund 

Status Report—September 

2011

The National Service Trust Fund (the Trust) was established by the 

National and Community Service Trust Act of 1993 (42 USC 12601, et 

seq.) to provide funds for Segal AmeriCorps Education Awards for eligible 

participants who complete AmeriCorps service. Funding for the Trust 

comes from appropriations, interest earned, and proceeds from the sale 

or redemption of Trust investments. The Trust is also authorized to receive 

gifts or bequests; however, to date, no donations have been received by the 

Trust. Under the Act, funds are available to repay qualified student loans; 

pay educational expenses at qualified educational institutions; and repay 

eligible interest expense on student loans.

The value of an education award depends on the term of service 

performed by an AmeriCorps member. For Program Year 2011 completion 

of a full-time term of service, requiring a minimum of 1,700 hours 

of service, entitles an AmeriCorps member to an education award of 

$5,550. Completion of a part-time term, requiring a minimum of 900 

hours of service, entitles an AmeriCorps member to an education award 

of $2,775. Reduced part-time terms, which provide awards of $500 to 

$2,114, are also offered. The education award is indexed to Pell grants, 

therefore these amounts could change each year. 

Education awards earned by AmeriCorps members are generally 

available to be used for seven years from the completion of the service. 

Payments are made directly to the educational institutions and the loan 

holders as directed by the members and by the institutions. Trust funds 

are not used to pay member stipends or other grant costs. Beginning 

in Program Year 2010, members who are 55 or older when they begin 

service may also transfer the education award to a qualified child or 

grandchild.

Table 1 shows the planned activity for the current Program Year and 

actual enrollments to date against the plan. The table also includes 

similar data on the prior Program Year for comparative purposes. 

Member positions (slots) classified as “Certified Not Awarded” have 

been approved by CNCS’ Chief Executive Officer for award to grantees 

for which the final grant award has not been executed. For budgetary 

purposes these positions are considered commitments in the Trust Fund. 

Table 1. Member Position Award Activity 

Program Year 2011 Program Year 2010

Awarded Awarded

 Certified Planned Certified Planned 

 Not Not Not Not Not Not 

AmeriCorps Program Enrolled Enrolled Awarded Certified Total Enrolled Enrolled Awarded Certified Total 

State and National 30,241 43,696 – – 73,937 78,245 1,021 – – 79,266 

VISTA 5,778 – – – 5,778 5,887 – – – 5,887

NCCC 1,149 – – – 1,149 1,195 – – – 1,195 

Summer of Service – – – – – 2,406 – – – 2,406 

Total 37,168 43,696 – – 80,864 87,733 1,021 – – 88,754
Other Accompanying Information | PART IV 82

The Corporation for National and Community Service

The 80,864 Trust positions for Program Year 2011 do not include an 

estimated 1,529 AmeriCorps VISTA members (1,152 full time and 377 

Summer Associates) electing an end-of-service stipend instead of an 

education award. Total estimated member positions for Program Year 

2011, including VISTA members electing a stipend, is 82,393. Of the 

5,778 VISTA member positions in the Trust for 2011, 1,455 positions are 

for Summer Associates who receive a Trust award of $1,132. Member 

enrollment and slot data is periodically adjusted to reflect corrections 

and slot reconfigurations by grantees, therefore it may change slightly 

from month to month. The Learn and Serve Summer of Service program 

was not funded for 2011.

The 88,754 Trust positions for Program Year 2010 do not include an 

estimated 2,032 AmeriCorps VISTA members (1,662 full time and 370 

Summer Associates) electing an end-of-service stipend rather than 

an education award and 100 summer NCCC members who do not 

receive an education award. Total member positions for Program Year 

2010, including VISTA members electing a stipend and summer NCCC 

members, is 90,886. Of the 5,887 VISTA member positions in the Trust 

for 2010, 1,107 positions are for Summer Associates who receive a 

Trust award of $1,132. Member enrollment and slot data is periodically 

adjusted to reflect corrections and slot reconfigurations by grantees, 

therefore may change slightly from month to month. Learn and Serve 

Summer of Service positions were reduced to reflect actual enrollments.

American Recovery and Reinvestment Act of 2009

CNCS received funding under the American Recovery and Reinvestment 

Act of 2009 (Recovery Act) to put AmeriCorps State and National and 

AmeriCorps VISTA members to work through national service, meeting 

the needs of vulnerable populations and communities during the 

current economic recession. The Trust received $40 million dollars to 

fund education award and interest forbearance payments for members 

serving in these Recovery Act positions. 

The 13,862 Recovery Act Trust positions do not include an estimated 881 

AmeriCorps VISTA members (682 full time and 199 Summer Associates) 

electing an end-of-service stipend instead of an education award and 12 

AmeriCorps State and National members serving in a third term who are 

not eligible for enrollment in the Trust. Total enrollment in Recovery Act 

positions (Trust and non-Trust) was 14,755. Of the 3,551 VISTA member 

positions in Trust Recovery Act positions, 663 positions are for Summer 

Associates who receive a Trust award of $1,132. Member enrollment 

and slot data is periodically adjusted to reflect corrections and slot 

reconfigurations by grantees, therefore it may change slightly from 

month to month.

Trust Awards

Since CNCS’ inception in 1994 AmeriCorps members have earned over 

$2.18 billion in Segal AmeriCorps Education Awards and used over $1.49 

billion to fund their education and repay student loans. In addition, 

CNCS has made $55.45 million in interest forbearance payments. Since 

the program’s inception in 1994, approximately $218.25 million in 

education awards earned have expired without being used. The Trust 

obligation formula has been adjusted to reflect these expired awards.

Table 2. Member Position Award Activity—American Recovery and Reinvestment Act

Awarded

 Certified Planned 

Not Not Not 

AmeriCorps Program Enrolled Enrolled Awarded Certified Total

AmeriCorps State and National 10,311 – – – 10,311

Volunteers In Service To America (VISTA) 3,551 – – – 3,551

Total Recovery Act Positions 13,862 – – – 13,862
Other Accompanying Information | PART IV 83

The Corporation for National and Community Service

Not reflected in the Segal AmeriCorps Education Award balances 

are payments for President’s Freedom Scholarships to high school 

students. CNCS no longer awards these $500 scholarships from the 

National Service Trust earned by high school students. Under this 

program a Trust scholarship was matched with $500 from a local 

sponsor for a total of $1,000 to help the student fund a college 

education. Although the program was discontinued in fiscal 2006, 

students have up to seven years to use their scholarship; therefore 

some payments will continue to be made over the next several years. 

President’s Freedom Scholarships payments to date have totaled 

$21.7 million.

Chart 1. Segal AmeriCorps Education Awards Earned and Used by Program Year

$0 

$20,000,000 

$40,000,000 

$60,000,000 

$80,000,000 

$100,000,000 

$120,000,000 

$140,000,000 

$160,000,000 

$180,000,000 

$200,000,000 

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Recovery Act 2010 2011 2012 

Awards Earned to Date

Awards Used to Date
Other Accompanying Information | PART IV 84

The Corporation for National and Community Service

Refilled Positions

CNCS implemented a limited policy allowing grantees to refill positions 

vacated before a member served more than 15 percent of his or her 

service term. In May 2007, this policy was expanded to include positions 

vacated within 30 percent of service term completion provided that the 

departing member had not earned a pro-rated education award. 

To prevent over enrollment, the policy includes “fail-safe” triggers that 

restrict the overall number of refills to no more than five percent of 

awarded positions and suspends refilling altogether if total AmeriCorps 

enrollment reaches 97 percent of awarded positions. Table 3 provides 

information on the number of positions refilled. Recovery Act positions 

and positions in Program Years 2010 and earlier can no longer be refilled.

Table 3. Number of Refilled Positions

Results to Date

Program Program Program Program Program

Year Year Year Recovery Year Year Fail-safe

2007 2008 2009 Act 2010 2011 Trigger 

Number of Refilled Positions 1,441 1,437 1,385 328 1,635 39 N/A

Refills as a Percent of Awarded State and 

National Positions 2.2% 2.2% 2.1% 3.1% 2.1% 0.05% 5%

State and National Enrollment as a Percentage

of Awarded State and National Positions 92.4% 97.0% 97.3% 98.6% 98.7% 40.9% 97%
Other Accompanying Information | PART IV 85

The Corporation for National and Community Service

Trust Accounting

The Schedule of Financial Position (Table 4) and the Schedule of 

Operations (Table 5) present information on the assets, liabilities, 

revenue, and expenses of the Trust Fund using Generally Accepted 

Accounting Principles (GAAP), which is the method of accounting for the 

liability used for financial statement purposes. Discrete information on 

the Trust activity related to Recovery Act funds and general funds, as 

well as on a consolidated basis, is provided.

GAAP requires the recording of a liability, which is a point in time 

estimate, for the unpaid earned and expected-to-be-earned education 

award and interest forbearance costs that are likely to be claimed. GAAP 

estimates are for members who have already completed at least 15 

percent of the minimum service requirement and who, therefore, have 

served enough hours to qualify for at least a partial education award. 

The estimate of the Service Award Liability under GAAP includes factors 

for members who enroll but do not earn an award, and for members 

who earn an award but do not use it within the period of availability. 

CNCS estimates that up to 87 percent of members earning an award will 

eventually use it. Because certain accruals used to prepare the Schedule 

of Financial Position and the Schedule of Operations and Changes in 

Net Position are only available on a quarterly basis, the monthly report 

presents information for the most recently completed quarter.

Table 4. Corporation for National and Community Service 

National Service Trust Schedule of Net Position as of September 30, 2011

 Recovery Act General Fund Consolidated

Assets

Fund Balance with Treasury $ 198,211 $ 162,316 $ 360,527

Investments, Net 19,349,991 584,868,254 604,218,245 

Interest Receivable 767 1,441,761 1,442,528 

Accounts Receivable - 643,635 643,635

Subtotal 19,548,969 587,115,966 606,664,935 

Liabilities 

Service Award Liability 14,088,436 396,172,384 410,260,820 

Net Position

Cumulative Results of Operations 5,460,533 190,943,582 196,404,115

Total Liabilities and Net Position $ 19,548,969 $ 587,115,966 $ 606,664,935
Other Accompanying Information | PART IV 86

The Corporation for National and Community Service

Table 6 shows the most significant factors used to calculate Trust 

obligations on a historical basis. It is important to note that Program 

Year refers to positions awarded with (although not necessarily filled 

in) a particular fiscal year’s grant funds. For example, a grantee may 

receive a grant in fiscal year 2011 but not fill all positions until fiscal 

2012. All positions related to this grant would be considered Program 

Year 2011 positions irrespective of the year filled.

Table 5. Corporation for National and Community Service 

National Service Trust Schedule of Operations through the Quarter Ended 

September 30, 2011

 Recovery Act General Fund Consolidated

Revenues

Appropriations $ - $ 199,259,682 $ 199,259,682 

Transfer in of Program Funds - 1,939,804 1,939,804

Interest 41,107 4,628,116 4,669,223

Other Revenue - 151,786 151,786

Total Revenues 41,107 205,979,388 206,020,495

Expenses 

Service Award Expense - 195,816,939 195,816,939

Write off/Recovery of Receivables - (429,557) (429,557)

Total Expenses - 195,387,382 195,387,382

Excess of Revenues Over Expenses 41,107 10,592,006 10,633,113

Net Position 

Excess of Revenues Over Expenses 41,107 10,592,006 10,633,113

Net Position, Beginning of Year 5,419,426 180,351,576 185,771,002

Net Position, End of Period $ 5,460,533 $ 190,943,582 $ 196,404,115

Table 6. Factors Affecting the National Service Trust Fund

Program Year

 Recovery

2007 2008 2009 Act 2010 2011

Member enrollments in the Trust 67,985 70,072 69,745 13,862 87,733 37,168

Percent of members who earned an education award 80.8% 83.3% 84.1% 82.7% 85.8% 73.0%

Percent of earned education awards used 70.9% 65.7% 54.0% 50.6% 25.0% 18.8%

Weighted average maturity for investments 2.5% 2.4% 2.0% 0.25% 1.25% 1.25%

Breakout of enrollment by term type: 

Full-time 45% 46% 44% 57% 43% 73%

Part-time 15% 15% 10% 12% 13% 8%

Reduced Part-time 40% 39% 46% 31% 44% 19%
Other Accompanying Information | PART IV 87

The Corporation for National and Community Service

The Program Year data used throughout these tables reflects all 

enrollments recorded through the month of the report. Prior year 

enrollment numbers may change slightly from time to time due to 

corrections or late reporting by grantees. The percentage of members 

earning an award in Table 6 is calculated by taking the number of 

members earning an award divided by the total members enrolled, net 

of members still earning. For example, in Program Year 2010 there are 

87,733 members enrolled in the Trust, of which 18,713 are reported 

as still earning an award and 59,193 as having earned an award.

Therefore the percentage of members who earned an education award is 

calculated by dividing 59,193 by 69,020, which is 85.8 percent [87,733 

– 18,713 = 69,020]. The percentage of earned education awards used 

is calculated by taking the dollar amount of education awards used 

divided by the total amount earned for the Program Year to date. Term 

type is based on Program Year enrollments to date. The enrollment and 

award usage data used to compute these factors can be found in Table 

9, at the end of this report.

Tables 7 and 8 present information on the budgetary resources and 

obligations of the Trust, including the Trust Reserve. The schedules 

present information on a budgetary basis, which represents the 

accounting used to determine adherence to the Anti-Deficiency Act. 

CNCS records Trust obligations at the time it awards AmeriCorps 

State and National grants or at the time it enters into an enforceable 

agreement with AmeriCorps VISTA and NCCC members.

Table 7. Corporation for National and Community Service 

National Service Trust Schedule of Budgetary Activity for the Period Ended 

September 30, 2011

Resources Recovery Act General Fund Consolidated

Funds Available at October 1 $ 1,882,155 $ 9,990,166 $ 11,872,321

Budgetary Resources 

Fiscal Year Appropriation - 199,259,682 199,259,682

Transfers in of Program Funds - 1,939,804 1,939,804

Deobligation Prior Year Positions (net) - 2,225,405 2,225,405

Collection of Audit Receivables 151,786 151,786

Less: Additions to Trust Reserve - - -

Total Budgetary Resources 1,882,155 213,566,843 215,448,998

Obligations 

Education Awards - (197,115,061) (197,115,061)

Interest Forbearance - (7,506,980) (7,506,980)

Total Obligations - (204,622,041) (204,622,041)

Net Change in Commitments 

Education Awards - - -

Interest Forbearance - - -

Net Change in Commitments - - -

Funds Available for Obligation $ 1,882,155 $ 8,944,802 $ 10,826,957
Other Accompanying Information | PART IV 88

The Corporation for National and Community Service

The amounts obligated in the Trust are based on the estimated value of 

the education benefit, discounted for the estimated enrollment, earning 

and usage rate, and the time value of money. For fiscal 2011, these 

factors are the full value of the Segal AmeriCorps Education Award, a 

100 percent enrollment rate (allowing for refills), an average earning 

rate of 84 percent (ranges from 77 to 86 percent depending on term 

type), and an average usage rate of 87 percent. Under the Serve America 

Act awards earned by members over age 55 can be transferred to an 

eligible beneficiary. Therefore, for budgetary purposes we are projecting 

that all transferable awards will eventually be used. For Program Years 

2002 and prior, CNCS uses the actual amounts earned, adjusted for 

amounts used and the time value of money to determine the obligation. 

Obligations are periodically adjusted to reflect current earning and 

usage projections.

A portion of the funds in the Trust are held in reserve and are for use only 

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

actual results. The reserve currently totals $46.7 million for the General 

Fund and $3.5 million for the Recovery Act Fund. To date, no reserve 

funds have been used. 

Table 8. Corporation for National and Community Service 

National Service Trust Schedule of Trust Obligations as of September 30, 2011

Resources Recovery Act General Fund Consolidated

Fund Balance with Treasury $ 198,211 $ 162,316 $ 360,527 

Investments, Net 19,349,991 584,868,254 604,218,245 

Interest Receivable 767 1,441,761 1,442,528 

Accounts Receivable - 643,635 643,635

Subtotal 19,548,969 587,115,966 606,664,935 

Less:

Cumulative Trust Reserve (3,500,000) (46,697,000) (50,197,000)

Receivables Not Available for Obligation (2,035) (3,049,950) (3,051,985)

Total Resources 16,046,934 537,369,016 553,415,950

Unliquidated Obligations 

Education Awards (13,964,074) (512,742,570) (526,706,644) 

Interest Forbearance (200,705) (14,801,644) (15,002,349) 

President’s Freedom Scholarships - (880,000) (880,000) 

Total Unliquidated Obligations (14,164,779) (528,424,214) (542,588,993) 

Commitments 

Education Awards - - - 

Interest Forbearance - - - 

Total Commitments - - - 

Funds Available for Obligation $ 1,882,155 $ 8,944,802 $ 10,826,957 
Other Accompanying Information | PART IV 89

The Corporation for National and Community Service

Enrollment Activity

Table 9 presents cumulative data to date on Trust enrollments, education awards earned and used for Program Years 1994 through 2011 as well as 

Recovery Act positions.

Table 9. Trust Enrollment Activity—Program Years 1994 through 2011

Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 15,331 0 11,463 3,868 $48,266,389.19 $35,310,366.87

1994 Part-time 6,264 0 4,172 2,092 $8,988,028.17 $6,694,416.79

 Reduced Part-time 2,814 0 2,432 382 $2,467,981.29 $1,748,637.74

 Total 24,409 0 18,067 6,342 $59,722,398.65 $43,753,421.40

 Full-time 17,551 0 13,563 3,988 $61,095,280.87 $46,176,749.17 

1995 Part-time 6,850 0 4,362 2,488 $9,551,027.13 $6,944,709.87 

 Reduced Part-time 577 0 493 84 $481,481.98 $349,740.58 

 Total 24,978 0 18,418 6,560 $71,127,789.98 $53,471,199.62

 Full-time 17,634 0 13,319 4,315 $60,762,700.91 $47,455,789.27

1996 Part-time 6,942 0 4,467 2,475 $10,085,197.90 $7,157,223.16 

 Reduced Part-time 593 0 505 88 $499,514.66 $394,179.93

 Total 25,169 0 18,291 6,878 $71,347,413.47 $55,007,192.36

 Full-time 23,259 0 17,294 5,965 $79,318,854.34 $62,492,739.88 

1997 Part-time 12,832 0 7,083 5,749 $15,939,868.60 $11,712,827.10 

 Reduced Part-time 3,677 0 2,975 702 $2,904,130.87 $2,315,198.17 

 Total 39,768 0 27,352 12,416 $98,162,853.81 $76,520,765.15

 Full-time 24,749 0 17,903 6,846 $82,264,571.93 $65,317,683.66

1998 Part-time 11,156 0 6,208 4,948 $14,031,027.14 $10,223,374.84 

 Reduced Part-time 5,101 0 3,829 1,272 $3,799,775.12 $3,002,711.80 

 Total 41,006 0 27,940 13,066 $100,095,374.19 $78,543,770.30

 Full-time 23,294 0 17,016 6,278 $78,324,396.27 $62,156,056.61

1999 Part-time 11,333 0 6,915 4,418 $15,636,042.42 $11,226,489.84 

 Reduced Part-time 7,260 0 5,862 1,398 $6,095,874.28 $4,841,701.83

 Total 41,887 0 29,793 12,094 $100,056,312.97 $78,224,248.28

 Full-time 26,203 0 19,082 7,121 $87,921,306.62 $69,538,451.08 

2000 Part-time 13,213 0 8,453 4,760 $19,404,182.70 $13,697,239.52 

 Reduced Part-time 13,619 0 10,272 3,347 $10,645,579.77 $8,520,921.63

 Total 53,035 0 37,807 15,228 $117,971,069.09 $91,756,612.23

 Full-time 29,455 0 22,600 6,855 $104,409,272.45 $82,680,337.97 

2001 Part-time 13,834 0 8,884 4,950 $20,165,005.40 $13,856,320.84 

 Reduced Part-time 15,827 0 12,470 3,357 $12,967,902.89 $9,910,246.87 

 Total 59,116 0 43,954 15,162 $137,542,180.74 $106,446,905.68

Full-time 28,139 0 23,172 4,967 $107,730,673.73 $87,609,138.65 

2002 Part-time 9,427 0 6,478 2,949 $14,859,278.64 $10,252,353.80

Reduced Part-time 10,842 0 8,118 2,724 $9,300,854.33 $7,263,234.47 

Total 48,408 0 37,768 10,640 $131,890,806.70 $105,124,726.92
Other Accompanying Information | PART IV 90

The Corporation for National and Community Service

Table 9. Trust Enrollment Activity—Program Years 1994 through 2011 (continued)

 Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

 Full-time 18,319 0 15,236 3,083 $70,063,810.06 $55,490,440.04 

2003 Part-time 9,424 0 7,063 2,361 $16,283,881.70 $11,424,382.38 

 Reduced Part-time 13,272 0 10,590 2,682 $12,084,613.06 $9,161,640.31 

 Total 41,015 0 32,889 8,126 $98,432,304.82 $76,076,462.73

 Full-time 29,043 0 24,365 4,678 $113,193,761.73 $90,715,388.63 

2004 Part-time 10,833 0 7,614 3,219 $17,514,510.62 $11,886,434.53 

 Reduced Part-time 22,779 0 17,992 4,787 $20,763,252.88 $15,728,610.82 

 Total 62,655 0 49,971 12,684 $151,471,525.23 $118,330,433.98

 Full-time 28,301 0 23,082 5,219 $107,094,531.89 $81,894,191.56 

2005 Part-time 11,132 0 7,809 3,323 $17,968,525.35 $12,132,262.77 

 Reduced Part-time 23,365 0 18,084 5,281 $20,338,612.06 $14,755,908.61 

 Total 62,798 0 48,975 13,823 $145,401,669.30 $108,782,362.94

 Full-time 30,387 1 25,164 5,222 $116,943,535.23 $85,335,762.32 

2006 Part-time 11,619 0 8,198 3,421 $18,933,377.96 $12,237,541.58 

 Reduced Part-time 27,254 3 21,000 6,251 $23,832,568.30 $16,997,024.05 

 Total 69,260 4 54,362 14,894 $159,709,481.49 $114,570,327.95

 Full-time 30,906 2 26,180 4,724 $121,960,004.14 $88,337,029.90 

2007 Part-time 10,137 3 7,366 2,768 $17,027,226.16 $10,654,663.58 

 Reduced Part-time 26,942 1 21,364 5,577 $24,307,050.61 $16,828,789.44 

 Total 67,985 6 54,910 13,069 $163,294,280.91 $115,820,482.92

 Full-time 32,365 58 28,161 4,146 $131,623,307.37 $88,233,805.75 

2008 Part-time 10,682 256 8,007 2,419 $18,597,478.68 $10,698,388.67 

 Reduced Part-time 27,025 30 21,881 5,114 $25,014,312.95 $16,235,930.88 

 Total 70,072 344 58,049 11,679 $175,235,099.00 $115,168,125.30

 Full-time 31,029 120 27,231 3,678 $127,320,640.62 $69,413,234.60 

2009 Part-time 6,658 803 4,515 1,340 $13,708,128.79 $6,017,472.72 

 Reduced Part-time 32,058 428 25,762 5,868 $29,222,176.31 $16,491,575.98 

 Total 69,745 1,351 57,508 10,886 $170,250,945.72 $91,922,283.30

Recovery Full-time 7,907 7 6,649 1,251 $30,989,131.18 $15,586,063.45 

Act Part-time 1,662 0 1,221 441 $2,818,344.40 $1,288,229.76 

 Reduced Part-time 4,293 0 3,591 702 $4,185,142.62 $2,332,078.64

 Total 13,862 7 11,461 2,394 $37,992,618.20 $19,206,371.85
Other Accompanying Information | PART IV 91

The Corporation for National and Community Service

Table 9. Trust Enrollment Activity—Program Years 1994 through 2011 (continued)

 Members

Program Members Earning or Earned an

Year Type Enrolled Not Exited Award Did Not Earn Amount Earned Amount Used

Full-time 37,700 5,232 28,430 4,038 $150,177,799.39 $37,560,435.84 

2010 Part-time 11,298 4,155 5,450 1,693 $14,249,128.55 $2,605,801.22 

 Reduced Part-time 38,735 9,326 25,313 4,096 $30,403,238.89 $8,632,860.04 

 Total 87,733 18,713 59,193 9,827 $194,830,166.83 $48,799,097.10

 Full-time 27,015 25,827 611 577 $3,174,570.81 $665,493.88 

2011 Part-time 3,030 3,010 0 20 $0 $0

 Reduced Part-time 7,123 5,839 1,209 75 $1,417,105.34 $198,770.66 

 Total 37,168 34,676 1,820 672 $4,591,676.15 $864,264.54

Cumulative to Date 940,069 55,101 688,528 196,440 $2,189,125,967.25 $1,498,389,054.55
Other Accompanying Information | PART IV 92

The Corporation for National and Community Service

Improper Payments

CNCS is responsible for complying with the Improper Payments 

Elimination and Recovery Act of 2010 (IPERA). IPERA requires agencies 

to annually identify programs and activities susceptible to improper 

payments, estimate the annual amount of improper payments, and 

submit the estimate to Congress. IPERA updates the Improper Payments 

Information Act of 2002 for estimating improper payments and requires 

agencies to:

• Produce a statistically valid estimate of the improper payments made 

by each program or activity in their agencies;

• Include such estimates in their annual financial statements; and

• Report on actions to recover improper payments.

In addition, the Office of Management and Budget (OMB) Circular 

A-123 Management’s Responsibility for Internal Control, Appendix C, 

Requirements for Effective Measurement and Remediation of Improper 

Payments addresses the specific requirements called for in IPERA 

and lays out the general steps agencies must perform to meet those 

requirements. IPERA defines an improper payment as any payment 

that should not have been made or that was made in an incorrect 

amount (including overpayments and underpayments) under statutory, 

contractual, administrative, or other legally applicable requirements. 

It includes any payment to an ineligible recipient, any payment for an 

ineligible service, any duplicate payment, payments for services not 

received, any payment that does not account for applicable discounts, or 

any amount that should have been paid to an eligible recipient but was 

not. OMB guidance also states that when an agency’s review is unable to 

discern whether a payment is proper as a result of insufficient or lack of 

documentation, this payment must also be considered improper. 

During FY 2011 CNCS contracted with Grant Thornton, LLP to conduct 

improper payment testing on programs deemed to be of the highest 

risk. CNCS based its risk assessment on a payment risk criteria matrix 

including factors such as internal controls over financial processing, 

internal monitoring and assessments, human capital turnover, 

programmatic complexity, and size of payments. All service programs 

were rated and ranked so those with the highest risk levels would be 

tested first. For testing in FY 2011, CNCS selected payments from the 

AmeriCorps VISTA program as well as payments from the National 

Service Trust. 

Grant Thornton, LLP used the following approach to conduct testing:

• Obtain Universe - Grant Thornton adhered to the guidance defined in 

OMB Circular A-123, Appendix C. The scope of the sampling universe 

(population) consisted of payments made by CNCS during the period of 

October 1, 2009 through September 30, 2010. 

• Determine Statistically Valid Sample Set - For each program 

undergoing an improper payment review, Grant Thornton developed 

stratified samples based on the payment type. The payment types 

included travel reimbursements, contracts/invoices, grant payments, 

and Trust payments and living allowances for VISTA members (Corp 

Pay in Table 1). 

• Obtain supporting documentation - Prior to beginning test 

procedures, Grant Thornton prepared a documentation request for

each payment type along with the respective transaction sample. 

• Conduct Testing - Grant Thornton developed a test plan to facilitate 

adherence to the testing objectives of each payment type. Testing was 

conducted at CNCS headquarters.

• Communicate Findings and Recommendations - Grant Thornton 

maintained detailed records of all activity and generated a test 

results report and work papers to support the work performed and any 

improper payments noted during the review. 
Other Accompanying Information | PART IV 93

The Corporation for National and Community Service

Testing indicated there was one instance of prompt pay interest not 

being paid on a late payment. The Prompt Pay Act requires executive 

departments and agencies to pay commercial obligations within certain 

time periods and to pay interest penalties when payments are late. In 

accordance with the Prompt Payment Act, the invoice should be paid 

within 30 days after the latest of the following three dates: Delivery 

Date, Acceptance Date, and Invoice Log Date. For the invoice deemed 

an improper payment, Grant Thornton found that the delivery date was 

entered into Momentum Financials with a date five days later than the 

actual delivery as noted on the original invoice document. The version 

of Momentum in use at the time did not permit entry of delivery date 

earlier that the date it was entered. That systems error was subsequently 

corrected with the upgrade to Momentum that was implemented this 

fiscal year. As a result of the systems error, the invoice was paid late 

and no corresponding interest penalty was made to the vendor making it 

improper. 

The amount of the payment due to the contractor was $4,750. The

amount was paid five days late for which a late payment penalty of 

$2.14 should have been made. Grant Thornton statisticians estimated 

the total improper payment amount of $3,947 by extrapolating the $2.14 

underpayment as a percentage of all FY 2010 VISTA contract payments. 

CNCS subsequently initiated a payment voucher for the $2.14 interest 

penalty due to the vendor.

The results of the testing conducted can be found in Tables 1 and 2 below. 

Table 1: Sample Test Results

IPERA Test Results 

# of # of # of # of # of # of # of # of Total # of

Travel Improper Contracts Improper Grants Improper Corp Pay Improper Sample Improper Improper

Program Name Samples Payments Samples Payments Samples Payments Samples Payments Totals Payments Payments

AmeriCorps Vista 12 0 83 1 74 0 207 0 376 1 0.266%

National Service Trust 0 0 1 0 0 0 695 0 696 0 0.000%

Total Samples 12 0 84 1 74 0 902 0 1,072 1 0.093%

Table 2: Summary of Results

Summary Results 

 Transactions Dollars % Projected $ Projected 

 Estimate of Estimate of

 Improper Improper

Program Name Population Sample Population Sample Payments Payments

AmeriCorps Vista 68,995 376 $ 45,769,945 $ 15,701,405 0.009% $ 3,947

National Service Trust 65,835 696 $ 73,111,594 $ 1,904,903 0.000% $ 0

Total 134,830 1,072 $ 118,881,539 $ 17,606,308 0.003% $ 3,947
Other Accompanying Information | PART IV 94

The Corporation for National and Community Service

CNCS believes that it has sufficient internal controls, human capital, 

and information systems to prevent improper payments. CNCS will 

continue to monitor and test high-risk programs in an effort to find, 

eliminate, and recover any improper payments that may exist.

The test results for the two program streams tested indicate that 

recovery audits for these programs would not be cost beneficial. The test 

sample for the Trust payments did not find any improper payments, while 

the VISTA program test sample found one underpayment. 

The improper payment reduction outlook below lists risk susceptible 

programs whether or not an error measurement is being reported. The 

current fiscal year is the first year during which improper payment 

testing was performed; therefore, the prior year (2010) data cells are 

shown with N/As. The outlay amounts for future years (2012, 2013 

and 2014) are shown with the same amounts determined for 2011 as 

budgets for those years are not yet determined.

Table 3: Improper Payment Reduction Outlook

Improper Payment Reduction Outlook 

2010 2010 2010 2011 2011 2011 2012 2012 2012 2013 2013 2013 2014 2014 2014

Programsi Outlays IP % IP $ Outlays IP % IP $ Outlays IP % IP $ Outlays IP % IP $ Outlays IP % IP $

National 

Service 

Trust N/A N/A N/A $165M 0% $0 $165M 0% $0 $165M 0% $0 $165M 0% $0

Senior Corps N/A N/A N/A $208M N/A N/A $208M N/A N/A $208M N/A N/A $208M N/A N/A

AmeriCorps 

VISTA N/A N/A N/A $94M 0.009% $3,947 $94M 0% $0 $94M 0% $0 $94M 0% $0

AmeriCorps 

State and 

National N/A N/A N/A $431M N/A N/A $431M N/A N/A $431M N/A N/A $431M N/A N/A

AmeriCorps 

NCCC N/A N/A N/A $24M N/A N/A $24M N/A N/A $24M N/A N/A $24M N/A N/A

i Testing of the AmeriCorps State and National and AmeriCorps NCCC payment programs is in progress and should be completed by December 31, 2011.