09-16, Evaluation of the Fiscal Year 2008 Budget Process

Evaluation of the Fiscal Year 2008 Budget Process

Acting on a request from staff of the House Appropriations Committee, Subcommittee on Labor, Health & Human Services, Education, and Related Agencies, the Office of Inspector General (OIG), Corporation for National and Community Service (Corporation), conducted an Evaluation of the Fiscal Year 2008 Budget Process (Evaluation). We conducted the evaluation, which included an analysis of the formulation and execution of the Fiscal Year (FY) 20081 Budget, to determine whether the Corporation properly and efficiently used the appropriated funds it was provided.

While the Corporation generally accomplished the purposes for which it received appropriations, it insufficiently managed the funds that it received in FY 2008. As a result, the Corporation was forced to curtail needed hiring, training, and the acquisition of needed supplies during the second half of FY 2008. If it had not drastically cut back on its spending, the Corporation would have ended up in violation of the legal constraints on spending by Federal agencies, i.e., an Anti-Deficiency Act (ADA) violation.

Many of the issues identified in this report resulted from a corporate organizational structure that may no longer be adequate in view of the size of current programs and operations. The organizational structure needs to provide a means to focus the attention of the Chief Executive Officer (CEO) on overall Corporation operations, not only program operations. The absence of a Deputy Chief Executive Officer, an operationally focused Chief Operating Officer (COO), or other senior official with responsibilities over organizational-wide administrative functions, along with budget pressures and  significant information technology (IT) problems that occurred, placed a severe strain on the organization and its CEO. This focus on program operations left a void in managing other operations.